KUWAITI CHARITABLE DONATIONS FOR TSUNAMI VICTIMS

UNCLAS KUWAIT 000208

SIPDIS

E.O. 12958: N/A
TAGS: EAID AEMR PGOV PREL KU
SUBJECT: KUWAITI CHARITABLE DONATIONS FOR TSUNAMI VICTIMS
MOUNT

REF: A. KUWAIT 128


B. KUWAIT 73


1. Following a slow start and feeling the sting of
accusations that it has been stingy toward countries hit hard
by last month's tsunami, Kuwait has dramatically upped its
assistance pledges this week (Ref A). In addition to the
$100 million promised by the Government of Kuwait (GOK) on
January 9 ($30 million in cash, $70 for infrastructure
projects),the government announced on January 11 that the
Amir would contribute $5 million of his personal fortune to
tsunami victims, while the Crown Prince would donate $2

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million and the Prime Minister $1 million in an effort to
galavanize public donations. One contact said that the GOK
was, in a sense, shamed into giving more after contributions
started pouring in around the world from both governments and
private individuals, specifically mentioning race-car driver
Michael Schumacher's $10 million donation, which was
equivalent to Kuwait's January 2 pledge (ref B).


2. Among non-governmental organizations, the Kuwait Red
Crescent Society (KCRS) has taken the lead, sending an
eight-person relief team to Sri Lanka. The team delivered a
total of 29,281 tons of medical supplies, blankets and
provisions to Sri Lanka between December 28 and January 1,
and its efforts are ongoing. Private giving is increasing as
well: local media reported that because numerous Kuwaitis
have asked to donate the 200 KD (almost $700) "Amiri grant"
that each citizen received in late 2004, the Awqaf General
Assembly has opened tsunami relief accounts in all Kuwaiti
banks. In addition, the National Bank of Kuwait has opened a
separate special account for credit card, ATM and online
contributions, and mobile telephone company MTC-Vodafone is
donating 1 KD (about $3.40) to KCRS each time someone sends
MTC the letter "T" as a text message. Finally, the
Ministries of Information and Social Affairs and Labor, in
coordination with the cabinet, will be organizing a "Charity
Day" on January 16 to encourage further charitable giving.


3. On January 11, Econoff spoke to Osama Al-Attal, Director
of Disbursement for the Kuwait Fund for Arab and Economic
Development (KFAED),which will administer the $70 million
pledged by the GOK for rebuilding infrastructure. Al-Attal
said that KFAED will delay disbursemenets until the UN, World
Bank or some other international body indicates that the
cleanup efforts have been completed and rebuilding can begin.
Al-Attal did not have a time estimate, but thought it likely
that some rebuilding projects might not start for a year. He
said that the Kuwait Fund would most likely focus its
financing on housing and water systems reconstruction, but
would wait to see what the specific needs are. According to
Al-Attal, many questions about how best to target the aid
still remain (noting that if, as reported, so many families
were completely destroyed, it was unclear who would need
rebuilt housing).


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