ETHIOPIA: BI-WEEKLY REPORT AUGUST 30 2006

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SUBJECT: ETHIOPIA: BI-WEEKLY REPORT AUGUST 30 2006


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1. The following reports compiled over the last two weeks
illustrate the variety of economic, political, and social
developments occurring in Ethiopia.

POLITICAL
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Strategic Plan for National Electoral Board Complete


2. (U) On August 24, UNDP-funded consultant Hannah Roberts
told representatives of the international donor community
that she received complete cooperation and buy-in from
National Electoral Board (NEB) officials in developing a new
five-year development plan which will restructure of
organization. She informed donors that the revised structure
and development plan have been accepted by NEB management and
will soon be submitted to parliament for approval, as well as
to the inter-party dialogues that are ongoing. The five-year
plan calls for a significant increase in NEB staffing, from
the current 200 employees to nearly 1,000 by year five. It
includes permanent staff in zonal and regional offices. The
plan also outlines broad guidelines for development of
electoral practices, as well as the creation of a modern IT
backbone, which is currently lacking. Upon completion of the
plan, Roberts believes the reformed NEB will reflect
international best practices. It is unclear, however, how
many changes will be in place in time for the first wave of
local elections planned for mid-2007. The international
donor community is coordinating assistance to support the
5-year plan, particularly in the initial stages of training
new staff and building an IT infrastructure.

Three Die In Shootout Between Federal and Local Police


3. (SBU) The Oromia Police Commission confirmed that an
altercation between Federal and local police on August 15
left three (two Federal and one local police) dead and three
local police wounded in the Oromo town of Gedo. The cause of
the incident is still under investigation but post law
enforcement sources reported that this was the result of
long-standing animosity between the groups. Police sources
added that the Federal police considers itself an elite force
and looks down on the more provincial local police. There
were also likely ethnic tensions involved, since Federal
police may not have been Oromos. A high-level team from the
Oromia Police Commission has been dispatched to Gedo to
investigate.

Student Clashes At Haromaya and Jimma Universities


4. (U) Over the weekend violence erupted on two university
campuses (Haromaya and Jimma) when student clashed over
ethnic differences. Oromo students in Haromaya were angered
and fought with groups of Tigrean and Amhara students when a
word that Oromos find offensive was seen printed on a shirt
worn by a non-Oromo student. Federal police and defense
forces entered the campus to restore order and remove
instigators. They all posted a list of students expelled for
"inciting violence, disrupting campus peace, and obstructing
the teaching-learning process." A related incident occurred
at Jimma University when students allegedly heard a Deutsche
Welle report on violence at Haromaya and began fighting.
Eighteen students (rumored to be Oromo) and the Dean of
Students were arrested. The Vice Minister for Education met
with the Jimma University Senate and announced there would be
a crackdown on staff as well as students, as "investigations
have shown" there were active instigators of inter-ethnic
violence among these groups. These incidents are the latest
in a string of violent, ethically charged episodes that have
occurred on university campuses over the past year.

ECONOMIC
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Second Fuel Hike In Three Months


5. (U) The Ethiopian Council of Ministers approved a
double-digit price hike for oil and oil products citing
rising international market prices. Effective August 27, the
cost of a liter of gas rose 24.2 percent to 94 cents, a liter
of diesel rose 13.8 percent to 63 cents, and a liter of
kerosene rose 19.4 percent to 47 cents. This is the second
price hike in four months as the GOE seeks to reduce the
fiscal burden of high fuel subsidies. A report submitted to
the Council of Ministers recommended that price adjustments
continue over the next two years until gas reaches a price of
$1.38/liter.

Internet Coffee Auction Yields Record Prices


6. (U) On August 24, ECAFE, a non-profit, U.S.-based
organization sponsored an internet coffee auction in Ethiopia

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which yielded record prices for high quality Ethiopian
coffee. The auction sold three containers of coffee
averaging $2.67/lb for a total of $254,000. The highest
price in the auction, a record, was $10.65/lb. USAID-funded
contractors will continue to improve the auction and expand
its scope. The average price for Ethiopian coffee is $1/lb.

DEVELOPMENT
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USAID Commits $150K to Acute Watery Diarrhea


7. (U) USAID's Mission Director visited Awasa and met with
the President of the SNNPR and other officials the week of
August 21. During his visit, the Director announced a
donation of $50,000 to help the regional health bureau in its
fight against acute water diarrhea. The funds will be used
to support training, logistical costs, and supplies,
including water treatment equipment and safe water products.
USAID previously committed another $100,000 worth of
emergency and humanitarian assistance to SNNPR to help people
affected by acute water diarrhea.

Flooding in South Omo


8. (U) USAID also mobilized $50,000 to help people displaced
from their homes by the recent flooding in South Omo.
Working with its partner, the International Rescue Committee
(IRC) and the regional water bureau, USAID funds were used to
purchase emergency water kits, 150ml bottles of water guard,
emergency water kits, water tanks, and five sets of surface
watering pumps to help decrease the amount of standing water.
USAID is working with another partner, Mercy Corps, to see
if funds can be used to provide boats to bring supplies to
families stranded by high water. In addition to South Omo,
USAID continues to monitor flooding in other regions and work
closely with national, regional and local governments to
identify areas for assistance and response.


REFUGEES
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Regional Refugee Coordinator for Resettlement Visits Ethiopia


9. (U) Nairobi-based Refugee Coordinator for Admissions Bill
Lehmberg and Ann Marie Winter from the Overseas Processing
Entity (OPE) Kenya were in Ethiopia August 21-24. Lehmberg,
Winter and post's refugee assistant traveled to Shimelba
refugee camp August 22 where the Kunama verification
operation was wrapping up its four-week exercise. While
talking with UNHCR staff, a number of issues were raised
including a shortage of UNHCR staff both in the camp and in
the field office in Sheraro, and the lack of non-food items
(namely blankets and plastic sheeting) that are available for
newly arriving refugees. UNHCR also reported that the
Democratic Movement for the Liberation of Eritrean Kunama
(DMLEK) was operating and actively recruiting in the camp.

ENVIRONMENT
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State Minister of Natural Resources On Board For Wildlife
Stakeholders Meeting


10. (U) At a meeting on August 25, the Ethiopian State
Minister of Natural Resources expressed his interest in
convening a wildlife stakeholders meeting and assigned a
representative from his office to serve on the organizing
committee. The goal of the U.S. sponsored wildlife
stakeholders meeting is to convene representatives from the
Ethiopian Federal and regional governments, civil society,
international and local NGOs, and donor governments to
clarify guidelines and mechanisms for halting the illegal
capture and trade of wildlife.


GOE Sends Representatives to Geothermal Resources Council
Conference


11. (U) After receiving funding for travel costs from the U.S.
Department of Energy, four Ethiopians (two representatives
from the Ethiopian Geological Survey and two from the
Ethiopian Electric Power Company) will attend the Geothermal
Resources Council conference in the United States in
September.
WILGUS