Identifier
Created
Classification
Origin
05SANAA193
2005-02-02 10:25:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Sanaa
Cable title:  

DPM SOFAN PROMOTES DONOR HARMONIZATION AND

Tags:  KMCA ECON ETRD EAID EINV YM COM 
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UNCLAS SANAA 000193 

SIPDIS

SENSITIVE

STATE PLEASE PASS TO MCA

E.O. 12958: N/A
TAGS: KMCA ECON ETRD EAID EINV YM ECON COM
SUBJECT: DPM SOFAN PROMOTES DONOR HARMONIZATION AND
INVESTMENT CLIMATE AND SUBMITS MCC-THRESHOLD CONCEPT PAPER

REF: SANAA 106

UNCLAS SANAA 000193

SIPDIS

SENSITIVE

STATE PLEASE PASS TO MCA

E.O. 12958: N/A
TAGS: KMCA ECON ETRD EAID EINV YM ECON COM
SUBJECT: DPM SOFAN PROMOTES DONOR HARMONIZATION AND
INVESTMENT CLIMATE AND SUBMITS MCC-THRESHOLD CONCEPT PAPER

REF: SANAA 106


1. (SBU) Summary. On January 30, Ambassador joined key
donors and Deputy Prime Minister and Minister of Planning and
International Cooperation Ahmed Sofan in signing a
declaration on their intent to enhance donor coordination in
Yemen. In a follow-on meeting with Sofan, Ambassador raised
Socotra development and underscored continuing concerns over
the Port of Aden tendering process. USAID/Yemen Director
accepted the ROYG's concept paper for the MCC Threshold
program. End summary.

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Ambassador Signs Harmonization Declaration
--------------


2. (SBU) Chiefs of Missions from the major Yemen donors (UK,
Japan, France, Germany, Italy, EC, UNDP, Netherlands, World
Bank and the U.S.) and DPM Sofan signed a declaration
signaling their commitment to enhance donor coordination on
January 30 (email copy sent to NEA/ARPI). Cosponsored by the
Ministry of Planning and the Netherlands, the text of the
declaration is based on the 2003 Rome Declaration on Donor
Harmonization. Sofan touted bi-annual donor meetings and an
upcoming action plan as a path to a more coordinated donor
approach to Yemen. In a letter to DPM Sofan, Ambassador
echoed U.S. statements made at the Rome conference
underscoring USG policy that we will comply with the
declaration as long as it is consistent with our national
policies and interests. On the margins of the signing
ceremony, an E.C. rep told Pol/Econ Deputy that their
organization was dubious about the actual meaning of the
document, but the E.C. wanted to be seen as a supporter and
not a hindrance to increased donor cooperation. The Japanese
Ambassador also expressed similar reservations to Ambassador.

--------------
Sofan Agrees to Redirect Money to Socotra
Island Conservation
--------------


3. (U) Following the Ambassador's January 17-19 visit to
Socotra Island, he requested that 250,000 USD of 03 PL-480
money be reallocated to the Socotra Conservation Fund. Sofan
agreed and underscored the importance of developing
eco-tourism, social and economic development and preserving
the island's unique biological diversity.

--------------
MCC Threshold Concept Paper Delivered
--------------


4. (U) Characterizing Yemen's MCC-Threshold Concept Paper as
a "starting document" Sofan formally handed it over to USAID
Director. The paper focuses on improving Yemen's investment
climate and proposes a number of steps to look at commercial
courts, land registration and anti-corruption measures in two
years. Ambassador thanked the DPM for his efforts on the
paper, but stressed that the real work is just beginning as
the concrete steps Yemen will take on serious reform must be
further articulated.

-------------- --------------
Sofan Offers Assurances on Soundness of Aden Port Tender
-------------- --------------


5. (U) Ambassador raised concerns with the DPM over the
integrity of the Aden Port tender (reftel). Pointing to
"mistakes" made at the Ministry of Transportation and by the
consultants regarding the tendering process, Sofan said that
to correct the problem, the High Tendering Committee agreed
to allow the widest competition for the Port, i.e. all nine
companies will submit bids to manage the port. Sofan agreed
to Ambassador's suggestion that a representative of the
international community independently observe the process.
Sofan said he would ask the World Bank to place someone on
the committee and noted the tenders would be submitted on
March 2. (Note: Previously, the ROYG rejected World Bank's
advice on matters concerning the Port of Aden. End Note).
Sofan claimed that the process was sound and that it would
exemplify the ROYG's new focus on improving its investment
climate.
Krajeski