Identifier
Created
Classification
Origin
05ROME1742
2005-05-20 09:20:00
UNCLASSIFIED
Embassy Rome
Cable title:  

FAO FINANCE COMMITTEE: FAO ACTIVITIES IN IRAQ

Tags:  AORC EAID EAGR SENV XI XY UN FAO IRAQI FREEDOM 
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UNCLAS ROME 001742 

SIPDIS


FROM THE U.S. MISSION TO THE UN AGENCIES IN ROME

STATE FOR IO/EDA KOTOK AND BEHREND, NEA/ENA, OES/ENV
USAID FOR DCHA, OFDA GOTTLIEB, MMARX
USDA FOR FAS HUGHES AND REICH
GENEVA FOR NKYLOH/USAID

E.O. 12958: N/A
TAGS: AORC EAID EAGR SENV XI XY UN FAO IRAQI FREEDOM
SUBJECT: FAO FINANCE COMMITTEE: FAO ACTIVITIES IN IRAQ


UNCLAS ROME 001742

SIPDIS


FROM THE U.S. MISSION TO THE UN AGENCIES IN ROME

STATE FOR IO/EDA KOTOK AND BEHREND, NEA/ENA, OES/ENV
USAID FOR DCHA, OFDA GOTTLIEB, MMARX
USDA FOR FAS HUGHES AND REICH
GENEVA FOR NKYLOH/USAID

E.O. 12958: N/A
TAGS: AORC EAID EAGR SENV XI XY UN FAO IRAQI FREEDOM
SUBJECT: FAO FINANCE COMMITTEE: FAO ACTIVITIES IN IRAQ



1. Summary: At a May 11, 2005, FAO Finance Committee
meeting of the UN Food and Agriculture Organization (FAO),
Henri Carsalade, Assistant Director General for Technical
Cooperation, provided an overview of current FAO
activities in Iraq. US Deputy Permrep, coordinating with
Kuwait as Near East Group chair, had requested the
briefing after Iraqi Permrep requested our assistance in
achieving more transparency in FAO's use of funds
earmarked for Iraq. FAO, Carsalade noted, is implementing
six programs approved by the United Nations Development
Group (UNDG) Iraq Trust Fund valued at $60 million to
rehabilitate the irrigation sector, restore
veterinary/livestock services and introduce small scale
income-generating activities. Another $60 million tranche
of projects is expected to be approved in September. A
detailed description of these projects follows. End
Summary.


2. Carsalade elaborated that in Iraq FAO is implementing
six projects under the UN Strategy for Assistance to Iraq,
coordinated by the United Nations Assistance Mission to
Iraq (UNAMI),through the newly established UN "Clusters"
framework that fosters a new way for UN agencies to
collaborate together on joint programming to help Iraq.
Project proposals and funding are approved by the Cluster
and performance is judged as a whole. Out of the 11
Clusters, FAO has been designated as the lead UN agency
for Cluster 5--Agriculture, Water Resources and
Environment--in partnership with UNESCO, UNIDO, UNDP, WFP,
UNEP, UNICEF and ILO. FAO provides the Cluster Manager,
who oversees all operations carried out by Cluster
members. Due to the security situation in Iraq, the
Cluster Manager and his five international staff are based
in Amman, Jordan, where program operations are managed
with rotations by FAO staff from Rome. (The FAO Technical
Cooperation Program's Special Emergency Programmes
Division remotely manages projects in countries such as
Iraq, North Korea, Palestine, and Somalia where FAO has no

representation. Generally, these projects deal with the
transition from an emergency situation phase to long-term
rehabilitation.)


3. FAO is implementing six projects approved by the United
Nations Development Group (UNDG) Iraq Trust Fund valued at
$60 million. To date, FAO has received $36.3 million of the
resources allocated for these projects. As of May 11,
approximately $23 million has been spent and committed,
with another $11 million of new tenders under preparation
and $2.2 million worth of training under implementation.
The projects and their respective costs are listed below:

A) Improvement of Drainage Conditions in Major Agricultural
Areas ($5.4 million);
B) Improvement of Water Supply and Drainage Provision
through the Rehabilitation of Pumping Stations ($13.4
million);
C) Assessment, Emergency Maintenance and Rehabilitation of
Community Irrigation Schemes and Restoration of Water
Supply in Rural Areas ($16.9 million);
D) Restoration of Veterinary Services ($l0.5 million);
E) Restoration and Development of Essential Livestock
Services ($8.5 million); and
F) Promotion of Cottage Industry in Rural and Urban Areas
($5.0 million jointly implemented by FAO and UNIDO).

Of the $60 million, Projects A-E ($55 million) are funded
directly via FAO, while project F is funded via UNIDO.

--------------
A) Improvement of Drainage Conditions in Major Agricultural
Areas
--------------


4. This project aims to widen and deepen drainage canals in
order to improve agricultural production around the
Euphrates watershed. It was originally set to begin in
August 2004 in Fallujah, but the failure of Iraqi
authorities to provide the technical dossier for the
contract forced a relocation of the project to Hillah.
Despite the delay, a feasibility study currently underway
will be completed on June 25, with tenders to be issued to
the Iraqi contractor on July 20. The project will be
completed by its original end date in June 2006.

--------------

B) Rehabilitation of Water Pumping Stations
--------------


5. Approximately 175 antiquated (> 30 years old) water
pumping stations across the country are slated for
rehabilitation. FAO originally targeted to rehabilitate 12
stations, but, due to the high cost of repairing such
outdated pumps, it will only be able to repair six. The
first to be rehabilitated is in Kirkuk, with the contract
to be issued on May 20. However, FAO reports the supplier
may delay services due to the current security situation.
The project completion date is set for July 2006.

--------------
C) Rehabilitation of Community Irrigation Schemes
--------------


6. This project to assist farmers with rehabilitating or
replacing water systems and provide complementary
agricultural inputs began with feasibility studies in
January 2005. Nearly $300,000 has been spent on surveying
equipment to allow for better feasibility studies on
irrigation schemes covering areas from 300-400 hectares to
over 50,000 hectares. Contracts will be issued in summer

2005.


7. Approximately $1 million has been dedicated for training
local staff to manage the three aforementioned
rehabilitation projects. USAID, Japan International
Cooperation Agency (JICA) and UNESCO are conducting similar
training in water resources management, and FAO has agreed
to take the lead on coordinating training to avoid a
duplication of efforts and focus on filling in gaps.

--------------
D) Rehabilitation of Veterinary Services
--------------


8. With the aim of rebuilding capacity to combat and
control animal diseases, according to FAO, this has been
the most successful project to date. It has fostered
cooperation among several regional donors, including
Kuwait. These donors consider rehabilitating veterinary
services a priority due to the north-south migratory
patterns of livestock and the risks posed to spreading
disease at trading posts, affecting not only Iraq but the
rest of the Arabian Peninsula. Veterinary equipment has
been procured and training workshops have begun. Of the
$8.5 million allocated, $5 million has been received.

--------------
E) Rehabilitation of Livestock Services
--------------


9. This project aims to rehabilitate Iraq's national
breeding capacity through the procurement of equipment and
training for artificial insemination of cattle. On May 17,
FAO will begin its first artificial insemination training
seminar for Iraqi nationals. Of the $10.5 allocated, $3
million has been received.

--------------
F) Promotion of Cottage Industry
--------------


10. Funded mainly by the Italian Government, FAO and the
United Nations Industrial Development Organization (UNIDO)
are jointly implementing this project to support the
cottage industry in Nassiriyah. FAO is concentrating on
developing small-scale income-generation activities
relating to food (dairy and fresh fish, for example),while
UNIDO is concentrating on non-food activities. On May 14,
FAO began hosting a three-week "Train-the-Trainer" course
in Morocco for 23 Iraqi nationals who will return to
Nassiriyah to act as focal points. FAO plans to provide the
beneficiaries with equipment to jumpstart the industries,
and is currently in discussions with authorities on the
roll out plan.

--------------
Other Projects in the Pipeline
--------------


11. In support of Iraq's own National Development Strategy,
FAO is collaborating on developing a series of new

projects:
--Rehabilitation and Development of the National Seed
Industry ($5.1 million),which is highest on the Iraqi
Ministry of Agriculture's list of priorities;
--Restoration and Modernization of Fish Production ($6.5
million); and
--National Water Resources Master Plan ($6 million)


12. In addition, two employment generation projects are
being formulated:
--Creation of Date Palm Nurseries; and
--Local Cleaning and Repair of Irrigation Canals. Over
1,000 kilometers worth of canals need to be cleaned by
hand; project costs could skyrocket to $20 million due to
the vast area to be covered; thus, FAO is determining how
to limit the proposal.

--------------
Implementation of Projects and Associated Issues
--------------


13. FAO has a presence of six staff, the Cluster Manager
and five international staff, based in Amman, Jordan (ref.
Para 2),where it remotely manages all its projects in
Iraq. The UN has set a cap of 250 UN personnel in Amman.
FAO believes its six personnel are not sufficient to deal
with the magnitude of agricultural and water projects, and
shifts staff from Rome to Amman so as not to go above the
allotted six. FAO staff report there is momentum in the UN
to reduce the number of Clusters and redistribute their
respective number of personnel.


14. To minimize procurement costs, procurement services are
conducted by FAO in Rome. To minimize other project cost
risks, FAO uses a consulting firm based in Amman to verify
proposals and analyses conducted by suppliers who are
bidding to render services. Additional problems affecting
implementation include security-related delays or
inabilities to conduct site visits (ref. Para 5); frequent
revisions by Iraqi authorities on the technical
requirements; and difficulty in recruiting local staff of
an acceptable professional level.


15. Lastly, a specific implementation problem relates to
the non-release by the UNDG Iraq Trust Fund of resources
required for implementing approved veterinary and livestock
projects. On May 17, FAO Special Emergency Programmes staff
wrote to the UNDG Iraq Trust Fund to release these funds,
otherwise there is a risk of a pipeline break in services.

--------------
Future Funding
--------------


16. Additional funding for rural development is expected to
be available from the European Community. A significant
replenishment of the UNDG Iraq Trust Fund - Carsalade
estimated another $60 million -- is also expected following
the next donor meeting in July or September 2005. In the
interim, FAO is seeking support from other donors for
projects already formulated.


17. Baghdad on minimize considered.

HALL


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2005ROME01742 - Classification: UNCLASSIFIED