KUWAIT FUND UPDATE ON GOK ASSISTANCE TO

UNCLAS KUWAIT 004459

SIPDIS

STATE FOR NEA/ARPI SWALKER, LONDON FOR LTSOU

E.O. 12958: N/A
TAGS: PGOV PREL KU
SUBJECT: KUWAIT FUND UPDATE ON GOK ASSISTANCE TO
PALESTINIANS

REF: A. KUWAIT 3850


B. KUWAIT 3867

C. KUWAIT 4105


1. (U) EconOff met on October 16 with Marwan Al-Ghanem,
Regional Manager for Arab Countries at the Kuwait Fund for
Arab Economic Development (KFAED),for an update on the
latest GOK figures on economic assistance to Palestinians.
Al-Ghanem provided the following breakdown of GOK economic
assistance to the Palestinian Authority (PA) in support of
governance and reconstruction in the Palestinian territories:

a) $25M grant in December 2003 to the World Bank's Peace Fund
-$21M for PA operational expenses
-$ 2M for resettlement of Palestinian refugees from the
"Canadian Camp" in Sinai to the West Bank and Gaza
-$ 2M for school reconstruction

b) $25M grant in December 2000 with the Arab Fund
-Funds allocated for educational and health projects (see
reftel B para 2 for details)

c) $171M grant Al-Aqsa and Al-Quds funds (Islamic Development
Bank)
-$150M disbursed in 2000
-$ 21M disbursed in 2005


2. (U) Al-Ghanem added that although KFAED could not extend
concessional loans to the PA it is considering grants valued
at approximately $1M for feasibility studies on
infrastructure development. The offer is pending final
approval by KFAED's management board before it is submitted
to the PA for consideration. (Note: Al-Ghanem explained that
the PA is not an internationally recognized sovereign and
therefore lacks the legal identity to qualify for KFAED
loans).


3. (SBU) Al-Ghanem suggested that the Saudi Fund and Arab
Fund are better positioned than KFAED to provide additional
financial assistance to the PA. Al-Ghanem expressed
satisfaction with the rapport he has developed with his
counterparts and interlocutors in the PA Planning Ministry.
LEBARON