UPDATE ON BMENA ENTREPRENEURSHIP CENTER

C O N F I D E N T I A L SECTION 01 OF 02 MANAMA 001185

SIPDIS

E.O. 12958: DECL: 08/16/2015
TAGS: PREL ECON KMPI BA
SUBJECT: UPDATE ON BMENA ENTREPRENEURSHIP CENTER


Classified By: Charge d'Affaires Susan L. Ziadeh for
reasons 1.4 (b) an d (d)


1. (C) Summary. Ministry of Finance Economic Planning
Director Yousif Humood and MFA Bilateral Relations Director
Dhafer Al Umran told NEA/PI TDYer and Econoff August 16 that
the GOB has concerns about funding for the proposed Broader
Middle East and North Africa (BMENA) Entrepreneurship Center
in Bahrain and believes that the Center needs a new building.
They called for broad G8 financial support for the
initiative. While the Bahraini government is pleased with
the business plan prepared by MEPI contractor Beyster, Al
Umran requested a more comprehensive business plan for the
Center, to include plans for construction. The officials
declined to issue an invitation to Beyster expert David Mosby
to begin work in Bahrain in near term, saying that decisions
on a building and fund-raising had to be made first. While
we have heard repeatedly from Bahraini officials about their
strong interest in a building for the Center, this is the
first time they have slowed down the process on other aspects
of the Center until the question of a building is addressed.
The Embassy is seeking clarification with more senior GOB
officials. End Summary.

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GOB CONCERNS
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2. (U) NEA/PI TDYer and EconOff met on August 16 with
Ministry of Finance Director of Economic Planning Yousif
Humood and MFA Director of Bilateral Relations Dhafer Al
Umran to discuss the proposed BMENA Entrepreneurship Center.
In response to EmbOffs' question about the status of the
draft business plan, Humood said that he needed some
clarifications and had some doubts about the initiative. He
called for a clearer financial commitment from the G8 so that
the Center is not viewed as a U.S.-Bahrain initiative only.
Humood noted that there is room for the Center to be housed
temporarily--for two or three years--in the Bahrain Institute
for Banking and Finance (BIBF),but the Center should
eventually be separate from BIBF. Humood said that the GOB
could make a partial contribution for a permanent building,
but did not discuss specifics.


3. (C) Humood continued that the GOB wants to see the Center
in operation as soon as possible and seeks to attract a
strong commitment from the G8 and Gulf region so the
initiative does not fail. The GOB is pleased with the
Beyster business plan and feels that it will complement
existing small-business programs in Bahrain. However, its
focus on just the curriculum is not enough to present the
GOB's vision for the Center to potential donors. He also
expressed concern about the first-year funding gap of some
$400,000. (Note: The UK Embassy has indicated it will
recommend that HMG fund the salary of the Bahraini director
of the Center.)


4. (U) NEA/PI TDYer recommended that the GOB use the
finalized Beyster business plan to approach the G8 for
potential funding. He said the BIBF could be a good starting
point for the first few years, and that it would be helpful
for Beyster expert David Mosby to begin work soon so that
Bahrain could demonstrate to potential donors before and
during the November Forum for the Future that programs are
already underway.

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A NEW BUILDING THE ENTREPRENEURSHIP CENTER?
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5. (C) Humood said that the GOB had discussed the initiative
with French and Japanese diplomats in Bahrain, who had
expressed interest but made no clear commitments. He noted
that "some G8" officials have said that the Entrepreneurship
Center would duplicate existing programs that they are
already funding. He stated that the Center needed new
construction because of limited space at BIBF, and that a
"state-of-the-art building" for the Center had been a part of
initial discussions to showcase that it is a G8 initiative.


6. (C) Al Umran asked for USG assistance in developing an
overall study of the entire project that would include
information from the existing business plan and plans for the
building. The GOB would use this plan to approach other G8
nations. He said that the Foreign Minister would have to
announce progress on the Center at the Forum, and that
"classes at BIBF is not what was agreed to. Funding teachers
for the Center is not the project." Al Umran called for the
G8 to make commitments by the time of the Forum to construct
a home for the Center and said that if we start with classes
before a building is constructed, "the G8 will say it's not
necessary, and it will die." Al Umran and Humood both said
that a decision needs to be made on the construction issue
before any other steps can be taken.


7. (C) EmbOffs encouraged the GOB to approach the G8 with the
existing business plan and to get activities underway as soon
as possible, starting with an invitation to Mosby to come to
Bahrain. Humood said it was up to MFA to issue an invitation
to Mosby, and Al Umran was noncommittal. Al Umran said that
decisions regarding the building and fund-raising had to be
made so that Mosby could "eventually" be invited. Both also
noted that in September many MFA and Finance officials would
be in the U.S. for UNGA and fall Bank/Fund meetings, making
Mosby's arrival difficult.


8. (C) Comment. The GOB believes that a new signature
building will attract G8 and regional contributions to the
BCEE, despite our emphasis that it is training activities
that are more likely to show that the Entrepreneurship Center
is a worthwhile initiative. Moreover, despite GOB concerns
about lack of funding for the project, its proposal for a new
site for the Center would add significant costs in the first
year and detract energy from getting programs underway. At
this point, it is unclear if the GOB intends to hold up
development of the Center until it can obtain commitments to
fund a building. Post is seeking further clarification with
more senior GOB officials.
ZIADEH