IRAQ: SECURITY CONCERNS PUT E-GOV PROGRAM IN LIMBO

C O N F I D E N T I A L ROME 002050

SIPDIS


SECDEF FOR OSD/AJTORRES
JOINT STAFF FOR SYIKE

E.O. 12958: DECL: 05/22/2014
TAGS: EAID EINT PREL IT IZ IRAQI FREEDOM
SUBJECT: IRAQ: SECURITY CONCERNS PUT E-GOV PROGRAM IN LIMBO

Classified By: Economic Minister-Counselor Scott Kilner
for reasons 1.4 (b)(d)

SUMMARY
--------------


1. (C) Italy's Ministry of Innovation and Technology (MIT) is
ready to send a team to Baghdad to start work on a Euro 11
million project to build an Intranet system for the Iraqi
government. According to an aide to MIT Minister Lucio
Stanca, however, the Italian Foreign Ministry will not
approve the trip because of security concerns. The completed
system would link 20-30 Iraqi government departments to each
other and the Internet using a mix of radio and satellite
links. End summary.

Safety Concerns Delay E-Government Project.
--------------


2. (C) Stefano Gatti (protect),Diplomatic Advisor to
Innovation and Technology Minister Lucio Stanca, recently
gave Econoff an update of Italy's Euro 10-11 million project
to provide the Iraqi government with a basic Intranet
infrastructure. The MIT has a team ready to go to Baghdad to
conduct an initial survey of the Iraqi Ministries'
requirements; but, Gatti explained with some exasperation,
the Ministry of Foreign Affairs (MFA) is delaying approval of
the trip. Gatti speculated that the MFA was nervous about
sending additional Italian officials to Baghdad given the
unresolved status of three Italian hostages, the death this
month of an Italian soldier in Nasiriyah, and the
assassination of Interim Governing Council President Ezzedine
Salim outside the Green Zone. In this environment, Gatti
said, the GOI is reluctant to send more people to Baghdad.
Gatti said the MIT has pared down the team from eight to four
people in deference to the MFA's security concerns, but the
MFA is still withholding approval.

Need for Iraqi Coordinator
--------------


3. (SBU) A second problem the project has encountered, Gatti
remarked, is finding an Iraqi agency to coordinate with the
MIT team. He explained that, since the project involves
hooking up several Iraqi ministries to a central Intranet
hub, Italy must find an Iraqi authority capable of overseeing
such a government-wide project. Gatti predicted, however,
that this problem would be overcome once the Ministry has its
own people on the ground in Baghdad.

Background
--------------


4. (SBU) MIT's proposed Euro 10-11 million Iraqi Government
Intranet project is designed to give the Iraqi government a
basic system for electronically linking ministries and,
possibly, municipal and provincial governments. The initial
budget covers the cost of a central server bank, connections
for 20-30 government departments (each with 20 work
stations),a remote back-up system (possibly located in
Italy),plus training and technical support. The Iraqi
Intranet would rely on radio and satellite data links to
avoid dependence on Iraq's telecom system. In addition to
providing Iraqi officials with basic email and Internet
connectivity, the Intranet network could also be used for
telephone service among government departments. Gatti said
MIT plans to set up the system using open-source software.

(Note: A copy of Italy's proposal for the Iraqi Government
Intranet is available on Rome's Classnet homepage under the
section "Italy Background Notes." Please do not distribute
this document outside the USG. End note.)

Start-up Funding Available from MFA and World Bank
-------------- --------------


5. (SBU) Gatti said the MFA already has Euro two million
available to start the project. The MIT expects to receive
another Euro two million from the World Bank's Development
Gateway Foundation, he said. The MIT, Gatti asserted, is
ready to start the project even though it has yet to secure
the full Euro 10-11 million in funding. Gatti predicted the

additional money would fall into place once the project got
underway. (Note: The GOI is counting this project as part of
its Euro 200 million Madrid pledge. End note.)

COMMENT
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6. (C) The delay in sending the MIT team to Baghdad
demonstrates how the continuing Italian hostage ordeal and
recent violence around Nasiriyah is creating government
nervousness with negative consequences for reconstruction
work. However, assuming the security situation stabilizes
and there are no more high-profile attacks or kidnappings
that target Italians, we expect that the MIT team will be
cleared to go to Baghdad in coming weeks.


7. (U) MINIMIZE CONSIDERED.

Visit Rome's Classified Website:
http://www.state.sgov.gov/p/eur/rome/index.cf m

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2004ROME02050 - Classification: CONFIDENTIAL