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