GOK TO ATTEND NOVEMBER 19 ISLAMABAD CONFERENCE BUT

UNCLAS KUWAIT 004746 SIPDIS SENSITIVE SIPDIS STATE FOR NEA/ARPI SWALKER, LONDON FOR LTSOU E.O. 12958: N/A TAGS: EAID EFIN PGOV PHUM PREL PK KU SUBJECT: GOK TO ATTEND NOVEMBER 19 ISLAMABAD CONFERENCE BUT NO NEW PLEDGE EXPECTED FOR NOW REF: A. KUWAIT 4684 ¶B. SECSTATE 207043 ¶1. (SBU) Begin Summary. According to MFA and Kuwait Fund for Arab Economic Development (KFAED) officials, the GOK is unlikely to make any additional pledges at the November 19 Islamabad conference. However, a GOK delegation, including KFAED's Director of Operations, will attend the conference. The GOK's present $100M pledge appears to be the third largest contribution by a donor nation thus far. Of the total $100M pledge, $50M has been disbursed to the Kuwait Red Crescent Society (KRCS) for in-kind assistance; the remaining $50M in a concessional loan package is pending a KFAED needs assessment. KFAED confirmed that an assessment team will depart for Pakistan on November 17 to offer project recommendations for the expenditure of the loan funds. End Summary ¶2. (SBU) On November 13, Post followed-up with the GOK's MFA (per ref A) to request an update on GOK assistance to Pakistan and determine whether or not the GOK would be making a new pledge at the November 19 conference in Islamabad. Although unable to confirm the likelihood of a new GOK pledge by November 19, the MFA's Pakistan desk did confirm that a GOK delegation was expected to attend the conference and that the Foreign Minister was expected to decide its composition. ¶3. (SBU) Abdul Karim Al-Mutawa, Regional Manager for Pakistan at KFAED, confirmed to Econoff on November 13 that KFAED's Director of Operations, Fawzi Al-Huneif, will attend the Islamabad conference as part of a GOK delegation. Al-Mutawa added that a three-member KFAED assessment team would depart for Pakistan on Thursday (Nov 17) to conduct a 3-4 day assessment of the stricken areas and report back to the KFAED management board (chaired by the Foreign Minister) on how best to allocate the $50M bilateral concessional loan package pledged as part of the GOK's total $100M assistance offer. (Note: the remaining $50M has already been disbursed by the GOK to KRCS.) ¶4. (SBU) According to Al-Mutawa, the assessment team, at the direction of KFAED's board, will identify specific infrastructure projects to be funded through the loan package. Al-Mutawa explained that the terms of the $50M loan offer "will be very concessional" with a minimal interest rate (possibly as low as 1 percent),a 5-year grace period and a 25-year repayment schedule. ¶5. (U) Kuwait's contribution to relief efforts, particularly through KRCS, continues to receive positive local press coverage and appreciation from Pakistani officials praising KRCS and the GOK for their responsiveness and generosity. The GOK's $100M assistance package appears to be the third largest donor pledge following USG ($156M) and Saudi Arabia ($133M). ¶6. (U) Post will continue to follow-up with the MFA for updates prior to the November 19 conference. ********************************************* Visit Embassy Kuwait's Classified Website: http://www.state.sgov.gov/p/nea/kuwait/ You can also access this site through the State Department's Classified SIPRNET website ********************************************* LEBARON