GOAM'S MCA MANAGEMENT AND CONSULTATIVE PROCESS IN

UNCLAS SECTION 01 OF 03 YEREVAN 001556

SIPDIS

SENSITIVE

DEPT FOR EUR/CACEN, EUR/ACE, EUR/PGI, DRL, EB
DEPT PLEASE PASS USAID AND MCC

E.O. 12958: N/A
TAGS: PREL PGOV EAID AM
SUBJECT: GOAM'S MCA MANAGEMENT AND CONSULTATIVE PROCESS IN
THE RURAL REGIONS

REF: YEREVAN 1507

Sensitive But Unclassified. Please protect accordingly.

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SUMMARY
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1. (U) Ministry of Finance and Economy officials tell us
that the consultative process in advance of the GOAM's
upcoming MCA compact proposal submission has moved to the
country's regions and is on schedule. The GOAM has begun
compiling a matrix of all concept papers and/or comments
received from NGOs and international organizations and will
begin a preliminary review of these documents o/a July 15.
The MFE is managing the bulk of day-to-day MCA consultative
operations for the GOAM and continues to link the process
with the approach during the development of the GOAM's
Poverty Reduction Strategy Paper (PRSP). Please note action
request in paragraph 10. End Summary.

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PRSP TEAM HEADS-UP GOAM MCA OPERATIONS
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2. (U) As a follow-up to the Ambassador's earlier meeting
with Minister of Finance Vardan Khachatryan, USAID Mission
Director and Embassy Assistance Coordinator met with
Ministry of Finance and Economy Development Department Chief
Armen Hayrapetyan, PRSP Program Department Chief Sergey
Balasanyan and PRSP Secretariat Coordinator Hovik Azizyan
July 9 to discuss MCA issues. Azizyan confirmed that the
Ministry of Finance and Economy continues to manage the bulk
of the GOAM's day-to-day operations on MCA in coordination
with the Prime Minister's Economic Department and relevant
ministries of the GOAM's MCA Board. Azizyan said the GOAM
would develop an unofficial organizational chart to help the
USG and donor community better understand the GOAM's
decision-making framework on MCA issues and promised to
deliver the document within a week. Post will transmit this
and other documents via e-mail.

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MCA BOARD COLLECTS CONCEPT PAPERS -- FIRST REVIEW JULY 15
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3. (SBU) Azizyan confirmed information provided to Post
earlier regarding recent GOAM MCA Board meetings (reftel).
He said the Board was regularly collecting and informally
reviewing project concept papers from a number of sources
(NGOs, educational institutions, international
organizations). The Board had developed a matrix of concept
papers received to date and would continue to accept papers
from all sources (including from a GOAM internet website,
government agencies, regional consultations) until
approximately July 15. (Note: See
www.mfe.am/mfeengweb/hazmart.htm for more details about how
the GOAM is soliciting input on MCA from the public. End
note.) After this date, the GOAM MCA Board will conduct a
preliminary review of the proposals and fold viable ideas
into the GOAM's draft compact proposal. (Comment: The
matrix appears to include a number of proposals from NGOs
that approached the Embassy and/or USAID mission during the
past month. Post has no reason to believe that any proposal
has been rejected outright by the GOAM to date. End
Comment.) Azizyan said the GOAM would continue to accept
papers following July 15 but was eager to begin processing
the best concept papers into "manageable" portions of the
GOAM's compact proposal.


4. (U) Azizyan briefly previewed the types of proposals
received to date. He said that the GOAM was happy to see
that, for the most part, concept papers followed the
parameters of the GOAM's PRSP. The vast majority focused on
job creation in rural areas. He said that a number of
concept papers, however, "missed the mark" and were weak
attempts by some groups to tap into MCA funding. Azizyan
said that the GOAM MCA Board was nonetheless including these
concept papers in the formal group to be reviewed beginning
July 15.
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MEDIA INTEREST WANING - EXPECT UPSWING WITH RURAL MEETINGS
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5. (U) Azizyan agreed that while the majority of these
proceedings had been open to the press, public interest was
waning in the media (particularly among newspapers)
regarding the MCA process itself in the nation's capital.
He and his colleagues confirmed that Armenia's state
television was airing the proceedings of GOAM MCA Board
meetings each Sunday evening, to a lukewarm reaction by the
viewing public. He said that television coverage of the
first set of consultative sessions in the region, however,
was widespread and predicted an upswing in national media
coverage as this process continues.

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GOVERNORS AND PRSP NETWORK HOST MEETINGS IN RURAL AREAS
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6. (U) Azizyan reported that the first set of MCA
consultative meetings were well underway in Armenia's
regions. Regional governors, by mandate of the GOAM MCA
Board, had been hosting open meetings in public places
throughout their regions over the past two weeks. Azizyan
made special note of the fact that governors were instructed
to host these meetings in locations other than their offices
in order to encourage open participation and avoid the
appearance of controlling the proceedings or outcomes. He
said that the consultative meetings included both a session
for open commentary from participants regarding MCA as well
as a chance to comment on the GOAM's early indication that a
compact proposal would focus on rural infrastructure
including water, roads, education and health. The meetings
reportedly include information on how to submit program
ideas directly to the GOAM or through regional governors.
Ministry officials showed us an example of a brochure
detailing GOAM MCA procedures that governors are
distributing during the meetings. In addition to the
governors' meetings, Azizyan said that the GOAM had
activated the network of NGOs involved in the PRSP review
process. In some cases this network was hosting additional
consultative sessions in addition to those organized by
regional governors.


7. (SBU) According to reports from regional offices and the
MFE, some regional governors are planning to submit concept
papers to the GOAM MCA Board as part of the nationwide
process. The governor of Armenia's southern Syunik province
told the MFE that his office would submit its proposal in
advance of the initial July 15 review. According to
Azizyan, proposals from governors will be included in the
general matrix of concept papers but will likely be reviewed
separately from those submitted by the general public
(although still in the same format and during public
meetings).

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CONSULTATIVE SESSION IN DIMAVAN TYPICAL OF RURAL MEETINGS
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8. (U) Hayrapetyan said that a recent consultative meeting
in the village of Dimavan was typical of the ongoing
meetings in Armenia's regions. He said that a relatively
large group of citizens (a few dozen) gathered for the
meeting together with the regional governor, local media and
PRSP NGO network representatives. An MCA Board member and
PRSP Secretariat representative were also in attendance.
Hayrapetyan said that the participants came to the meeting
with little in the way of formal proposals, but asked the
GOAM to factor in job creation for the local population when
devising the compact proposal. He said that the meetings
often turned into roundtable sessions about an entire series
of local issues, but that GOAM MCA Board members and others
guided the discussion to the best extent possible.

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COMMENT: RURAL PROCESS MOVING FASTER THAN EXPECTED
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9.(SBU) The consultative process in Armenia's rural regions
has moved along faster than we expected. The GOAM has
assured us that Embassy representatives will be invited to
observe regional consultations within the next few weeks
which will strengthen our perspective. In the meantime, the
consultative process appears to be progressing well. Its
influence on the GOAM's final compact proposal, however,
remains to be seen.

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ACTION REQUEST: SHARING IDEAS AMONG MCA COUNTRY POSTS
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10. (U) Post understands that an MCC Collective is being
created at the Department for ease in transmitting front-
channel cables regarding MCA issues. We look forward to
utilizing this address once it is authorized by Washington.
While sharing front channel information is important, Post
believes that sharing information among posts at MCA
eligible countries via e-mail exchange would increase the
flow of ideas. An MCA e-mail exchange (for use by MCA PoCs
at Posts, their respective desk officers and MCC
headquarters at the Department) would allow us to better
communicate among ourselves as USG parties and share
relevant information with host governments. Action request:
Post requests MCC consider creating an MCA e-mail exchange.
ORDWAY