PRESIDENT KUFUOR AND AMBASSADOR DISCUSS MCA

UNCLAS SECTION 01 OF 02 ACCRA 002344

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: KMCA ECON EAGR PREL GH MCA
SUBJECT: PRESIDENT KUFUOR AND AMBASSADOR DISCUSS MCA
PROGRESS AND NEXT STEPS


Summary
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1. (SBU) On November 11, 2005, Ambassador Bridgewater and
Millennium Challenge Corporation (MCC) officials held the
most open and frank discussion to date with President Kufuor
about the state of Ghana's Millennium Challenge Account (MCA)
program. On the eve of meetings in Washington between the
MCC and Ghana MCA team, Kufuor expressed impatience with his
team's slow progress. He announced Minister for Public
Sector Reform Paa Kwesi Nduom as the new team leader, charged
with quickening the pace of Compact development. Kufuor
strongly urged more on the ground assistance from the MCC to
avoid further delays and misunderstandings. The Ambassador
stated that the goal of the Washington meetings was to
develop a roadmap for completing the Compact, and cautioned
against focusing too much on timing. Ambassador also
outlined Post's public outreach plan on MCA. End Summary

Kufuor Changes Team Leader, Urges Faster Progress
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2. (SBU) In advance of critical meetings in Washington
between the Ghana MCA team and MCC officials, Ambassador
Bridgewater, MCC's Rod Norman and David Ameyaw, and EconChief
Chris Landberg, met with President Kufuor, Minister Nduom,
and Secretary to the President Ambassador D.K. Osei to
discuss the latest progress and outstanding issues related to
the draft Ghana Compact. The only original Ghana MCA team
member in attendance was the President's representative on
the team.


3. (SBU) Kufuor expressed deep frustration his own team's
slow efforts at developing a proposal and for the first time
he asked for explicit feedback on the Ghana MCA team. He
noted his commitment to quickening the pace of Compact
development, and as evidence of his willingness to shake
things up announced that Minister Nduom would replace Finance
Minister Baah-Wiredu as head of the Ghana MCA team, starting
immediately. He stated that Nduom would lead the delegation
to Washington.


4. (SBU) Kufuor also voiced concern that the Ghana team's
decision to increase the project amount from $290 million to
almost $500 million (mostly added infrastructure projects)
would lead to problems with the MCC and further delays. He
was unsure how the increase had come about and said he had
taken his team to task. He admitted that he was a little
uncomfortable with the larger amount and asked Rod Norman for
a candid reaction on whether the enlargement was realistic,
emphasizing that his priority was to avoid additional delays.
He proposed a phased approach, with the original $290
million Compact as the first phase and the second phase
dependent on solid progress on the first.


5. (SBU) Kufuor also expressed a strong desire to receive
more on site assistance from the MCC so that any further
misunderstandings would not delay the process. He said he
felt like Ghana was in an examination that it could not seem
to pass and commented that all further work needs to occur
with close coordination with MCC. He said he has wondered if
he should have hired a U.S. consulting company from the
start, instead of believing in the idea of "country
ownership." Although he worried that some might see him as
responsible for leadership changes at MCC, he emphasized that
his main point in meetings with President Bush was for the
MCC to have more of an on-the-ground presence.

Ambassador, MCC Note Progress, Urge Focus on Quality
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6. (SBU) Ambassador Bridgewater reassured the President that
the U.S. shared his interest in completing the process
quickly. She noted that progress had been made under the
reorganized MCA team and momentum seemed to be building. The
Ambassador also urged less focus on timing and more on
developing a Compact that both countries can be proud of and
that will have a measurably positive impact on Ghanaians'
living standards. The Ambassador and Rod Norman emphasized
that the Washington meetings were crucial to identifying what
aspects of the Ghana program still needed work and what
resources were necessary to complete the work. They stated
that the overall goal was to develop an action plan and
timeline for finalizing program design, MCC due diligence,
and other documentary requirements necessary for
consideration by the MCC Board of Directors. Norman hoped to
be able to deliver the end result (the "roadmap") to Kufuor
in writing.


7. (SBU) In response to the President's concern about the
revised program amount, Rod Norman commented that most
important was that it be defensible. He added that the two
sides would be in a better position to assess the size of the
program during the upcoming meetings. The MCC would also be
in a better position to gauge what MCC support -- in terms of
consultants and funding -- would be necessary, going forward.
While the MCC would stand ready with the approximately $3
million in 609(g) funds, and would explore ways to quicken
the MCC's procurement process, Norman noted that they would
rely on the Ghana government's continued financial
commitment.


8. (SBU) Kufuor and Ambassador Osei pressed for detailed
comments about the Ghana team and the program. In response,
Norman stated the priorities were: 1) create a unified team,
as the current one is too large, many of the consultants have
competing interests, and they do not have a unified vision of
the proposal; 2) the revised program is three-quarters
infrastructure, but that is the most under-resourced part of
the Ghana team; 3) more commitment on resources, as many on
the Ghana team have not been paid; and 4) a high-level
representative with decision-making authority.


9. (SBU) Kufuor responded that Minister Nduom has the
requisite authority and would ensure Ghanaian compliance.
Nduom agreed the team was too large and unfocussed, but noted
that given the timing he would take the current team to
Washington and wait until after the meetings to make changes.
He also stated that he was forcing the team to practice and
improve their presentations. Norman reassured him that given
the resources the existing infrastructure consultants could
deliver.


10. (SBU) The Ambassador closed the meeting briefly outlining
Post's media outreach strategy to promote MCA. She said the
Embassy would monitor local coverage to ensure reporting
accuracy. Embassy officials would also look for
opportunities to discuss MCA with the public, including
accompanying the MCC on trips to the Compact's three target
regions, and using those opportunities to speak to the press
about progress of the Ghana program and its importance for
Ghana.

Comment
--------------

11. (SBU) The President was in no mood to discuss the MCA
program in general terms, and as a result the meeting
immediately went off script. Kufuor was frustrated and
repeatedly pushed for detailed MCC observations on both the
draft Compact and the Ghana team. He made clear he is ready
to do whatever is necessary to expedite the process. U.S.
officials went into more detail about Ghana's shortcomings
than in any previous meeting, and the President appeared open
to the criticism and interested only in solving the problems.
If he had been open to this kind of dialogue in 2004 the
Ghana program would be done.


12. (SBU) Minister Nduom's appointment will cause some
upheaval on the team, particularly as it will take time to
iron out the Finance Ministry's responsibilities. However,
there is clearly no power struggle in Nduom's mind. He
stated unequivocally following the meeting that "I am in
charge." And of all the Ministers in government, Post would
argue that Nduom is the most capable of taking control of the
team and completing an acceptable Compact. Prior to his
appointment as Minister of Energy in 2003, Nduom oversaw the
development of the Ghana Poverty Reduction Strategy (Ghana's
Poverty Reduction Strategy Paper -- PRSP),an even more
unwieldy program than the MCA proposal. He received
well-earned praise for his ability to steer that process, and
should be able to do the same this time around. End Comment.


LANIER