Identifier
Created
Classification
Origin
05KUWAIT4791
2005-11-16 13:46:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Kuwait
Cable title:  

DEMARCHE DELIVERED ON FOLLOW-UP APPEAL FOR SUPPORT

Tags:  EAID PREL PHUM SENV PAK KU 
pdf how-to read a cable
VZCZCXYZ0019
OO RUEHWEB

DE RUEHKU #4791/01 3201346
ZNR UUUUU ZZH
O 161346Z NOV 05
FM AMEMBASSY KUWAIT
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1753
INFO RUEHIL/AMEMBASSY ISLAMABAD IMMEDIATE 0868
RUEHLO/AMEMBASSY LONDON IMMEDIATE 1092
UNCLAS KUWAIT 004791 

SIPDIS

SENSITIVE
SIPDIS

LONDON FOR LTSOU

E.O. 12958: N/A
TAGS: EAID PREL PHUM SENV PAK KU
SUBJECT: DEMARCHE DELIVERED ON FOLLOW-UP APPEAL FOR SUPPORT
FOR PAKISTAN EARTHQUAKE RELIEF AND RECONSTRUCTION

REF: A. STATE 208903


B. KUWAIT 4746

UNCLAS KUWAIT 004791

SIPDIS

SENSITIVE
SIPDIS

LONDON FOR LTSOU

E.O. 12958: N/A
TAGS: EAID PREL PHUM SENV PAK KU
SUBJECT: DEMARCHE DELIVERED ON FOLLOW-UP APPEAL FOR SUPPORT
FOR PAKISTAN EARTHQUAKE RELIEF AND RECONSTRUCTION

REF: A. STATE 208903


B. KUWAIT 4746


1. (SBU) Begin Summary. Econoffs delivered ref A demarche
points to Abdulkareem Al-Mutawa, the Regional Manager for
South Asia at the Kuwait Fund for Arab Economic Development
(KFAED). Al-Mutawa acknowledged the importance of expediting
GOK assistance to earthquake victims and confirmed KFAED
participation at the upcoming Islamabad donor conference. He
indicated that a KFAED assessment team would visit Pakistan
to identify projects for the allocation of KFAED's $50M
concessionary loan package and complete the outstanding
requirements for a hydro-power project in Jolan-Jol Pakistan.
End Summary


2. (SBU) On November 16, Econoffs delivered reftel demarche
points to Abdulkareem Al-Mutawa, Regional Manager for South
Asia at the GOK's Kuwait Fund for Arab Economic Development
(KFAED). Econcouns thanked Al-Mutawa for the GOK's generous
assistance and urged sustained GOK support to address the
ongoing plight of earthquake victims, including the provision
of assistance based on specific Kuwaiti areas of expertise.
(Note: KFAED is administering $50M of the GOK's $100M
assistance package through loans and the Kuwait Red Crescent
Society is administering the remainder through in-kind
assistance. See ref B).


3. (SBU) Al-Mutawa welcomed KFAED contact with the Embassy
on GOK assistance and explained that KFAED was determined to
expedite its assistance to help earthquake victims. He
confirmed the attendance of KFAED's Director of Operations
and an assessment team at the upcoming Islamabad donor
conference, adding that the KFAED objective over the next few
days would be three-fold: (1) attend the conference and
gather current information on outstanding needs; (2)
coordinate with the GOP on its needs and expedited disbursal
of KFAED's $50M concessionary loan package to specific
projects; and (3) finalize appraisal of a pending hydro-power
project in Jolan-Jol, Pakistan, near the Afghan border.


4. (SBU) Al-Mutawa noted that KFAED's mandate precluded it
from functioning as a pledging agency, therefore limiting its
ability to influence GOK pledges. He explained that KFAED

was nonetheless cognizant of the urgent needs and recognized
the importance of disbursing its assistance as soon as
possible. Without offering details, he explained that the
$50M KFAED concessionary loan package was "very, very
concessionary" and would forego "normal lending procedures"
in order to address the urgent assistance timeline. He was
confident that KFAED Chairman, Foreign Minister Dr. Mohammed
Al-Sabah, will approve the loan package once the assessment
team submits its findings within the next two weeks.
Al-Mutawa commented that the disbursal's timing is "really a
political decision." In response to Econcouns's request for
a possible increase in GOK assistance, Al-Mutawa replied
"everything is possible in politics."


5. (SBU) Al-Mutawa acknowledged the importance of providing
country-specific expertise but noted that KFAED's expertise
was limited to short-term technical assistance and not
long-term training as may be sought after in this case.
Econcouns reaffirmed the importance of technical assistance
and the proposed hydro power project in Jolan-Jol as
important GOK contributions to Pakistan's overarching needs,
urging timely conclusion of the project. Al-Mutawa explained
that six months ago KFAED signed the Jolan-Jol project
agreement with the GOP, adding that the last few months
entailed updates to an outdated 1997 Canadian feasibility
study. The proposed assessment team's visit would help
expedite the project, he explained.


6. (SBU) With regard to KFAED lending procedures, Al-Mutawa
explained that although KFAED finances one project per
country every GOK fiscal year (April 1-March 31),financing
two projects in Pakistan was possible. He pointed out that
"for political reasons" KFAED currently funds two projects a
year in Egypt and China.


7. (SBU) Econcouns informed Al-Mutawa of possible USG milair
and sea transport to Pakistan of Kuwaiti donated relief
supplies. Al-Mutawa was appreciative and offered to pass
along the information to interested NGOs, including Muslim
charitable organizations. Al-Mutawa expressed his personal
sense of loss and grief for the victims, but noted that it
would be emotionally overwhelming for him to visit the
afflicted areas, explaining that he was still recovering from
the emotional grief he experienced after visiting Tsunami
affected areas and the devastated village of Bam in Iran.


Bio Note
--------------


8. (SBU) Abdulkareem Al-Mutawa serves as Regional Manager
for East Asia, South Asia and the Pacific at KFAED, having
joined the organization in 1992. He speaks English very well
and has studied at Cole College in Cedar Rapids, Iowa. He
also maintains private business interests in the airline
industry, working since 1996 with the Florida-based U.S. firm
The Aegis Group (now Volvo Aero). His extended family is
comprised of successful Kuwaiti businessmen representing such
firms as Lockheed Martin, Volvo, Kia and others.

Background on Kuwait Fund
--------------


9. (U) KFAED is the GOK's primary vehicle for providing
assistance and aid to other countries. It was founded the
same year that Kuwait gained its independence, 1961, and was
originally intended to assist Kuwait's Arab neighbors. In
1974 its mandate was expanded to include all developing
countries. To date, KFAED has committed over 11.5 billion
USD in low interest loans to 102 countries through 650
separate projects, has provided over 323 million USD in
grants and technical assistance, and has contributed 1.15
billion USD to other development institutions.

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