COORDINATING PARTNER SUPPORT TO THE AFRICAN UNION

UNCLAS SECTION 01 OF 03 ADDIS ABABA 000659

SIPDIS

SENSITIVE
SIPDIS

DEPARTMENT FOR AF/RSA AND S/P.
USAID FOR STEVE PIERCE.

E.O. 12958: N/A
TAGS: PREL EAID KPKO AU
SUBJECT: COORDINATING PARTNER SUPPORT TO THE AFRICAN UNION


SENSITIVE BUT UNCLASSIFIED. NOT FOR INTERNET DISTRIBUTION.


1. (SBU) Summary: The African Union's (AU) profile continues
to rise in the international community as the AU strives to
build the capacity to proactively address challenges on the
continent. To further mutual objectives, the AU and
Addis-based donors/partners are working to enhance
coordination of AU capacity building and programmatic
assistance through a new Development Cooperation Review Forum
(DCRF). The DCRF will meet regularly to review AU support
requirements and the status of AU institutional
transformation. Some partners will progress toward pooled
funding and technical assistance, but note that the AU is not
currently able to absorb direct budgetary support.
Coordination for AU peace support operations will continue to
operate parallel to DCRF structures. The DCRF provides a
structured dialogue with the AU, giving the AU more financial
reliability and partners a forum to monitor and promote
needed institutional reforms. The DCRF next meets on March

8. This is an action request. Please see paragraph 14. End
summary.

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AU WORKING TO GET ITS HOUSE IN ORDER
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2. (SBU) The AU continues institutional transformation,
reflecting a conscious effort to eliminate vestiges of the
OAU and instead equip the AU with the tools for proactivity.
The 2006 AU budget devotes 9.4 million dollars to
institutional transformation, which is one of four priority
pillars for action. A portion of the institutional
transformation process calls for updating financial,
administrative, communications, human resources, and
management structures. An institutional assessment funded by
AU partners has revealed serious shortfalls for AU attention.
AU Commissioner for Social Affairs Bience Gawanas, charged
with overseeing institutional transformation, notes that AU
member states and the international community expect action
from the AU, but it is challenging to simultaneously act
effectively and build comprehensive institutional structures.

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AU BUDGET
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3. (SBU) AU member states approved a 60.2 million dollar
program budget and 69.4 million dollar operational budget for

2006. The program budget is to be paid by voluntary member
state contributions and development partners. The
operational budget is to be paid by assessed contribution of
the 53 member states, though Nigeria, Libya, Egypt and South
Africa together pay 75 percent of the total. Thirteen AU
member states are under sanction for failing to pay assessed
contributions in 2005.


4. (SBU) Although African ownership concerns prompt the AU
Commission to request that partners contribute only to
programs and within budget amounts approved by member states,
slow or delinquent member state payments virtually paralyze
AU ability to undertake critical programs. According to the
AU Deputy Chairperson, the AU's lack of adequate budget
planning processes results in unrealistic cost estimates for
various programs. These realities have driven the AU
Commission to accept partner assistance for member state
approved programs beyond currently-approved budget lines.


5. (SBU) Some member states, such as South Africa, have
pushed for a unified AU budget to be covered by member
states. Under this formula, partner contributions would be
extra-budgetary, but still based on a prioritized plan of
activities. Some member states want to see a multi-year
budget, which would also give partners greater ability to
plan support in accordance with clear African priorities for
the institution. Partner support for missions such as AMIS
in Darfur is currently extra-budgetary, although the AU
encourages partners to develop a peace support fund similar
to the 250 million euro African Peace Facility sponsored by
the EU.

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HARMONIZING INTERACTION
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6. (SBU) To reduce transaction costs, provide a strategic
forum for discussion, enhance visibility of AU institutional
transformation and challenges, and give the AU enhanced
funding predictability, Addis-based partners and the AU now
interact within the Development Cooperation Review Forum
(DCRF). The DCRF is to meet semi-annually at the heads of
mission/AU Commissioners/African Permanent Representative
Committee Ambassadors level, and more regularly as a working
group. While DCRF meetings with the AU will focus on overall
strategic planning and support, Addis-based partners envision
several working-level thematic subgroups to coordinate pooled
funding, peace and security, and other types of support.
(Note: The EC is unable to contribute to pooled funding for
the AU in the near future, but is interested in harmonizing
support. Scandinavian countries and Canada appear to be on a
fast-track for pooled funding. End note).


7. (SBU) British, German, and Danish Embassy representatives
drafted a preliminary assessment of AU support modalities
(forwarded to AF/RSA). This think-piece assumes that the
AU, as an evolving political intergovernmental organization,
requires assistance to enable it to negotiate based on
longer-term strategic planning. It will be shared informally
with the AU to provide capitals with a comprehensive
recommendation.


8. (SBU) The document recommends that partners support the
development of a unified budget for funding by AU member
states and an extra-budgetary prioritized plan of activities
for funding by partners, both with adequate monitoring. The
assessment also recommends that, in the short-term, partners
jointly fund AU programs where possible, but also establish a
temporary pooled fund "Process Facility" to facilitate AU
institutional transformation, hire consultants while
full-time AU staff are recruited, and conduct organizational
studies. This Process Facility would also promote AU ability
to carry out programs beyond insufficient budgets provided by
member states. The Process Facility would be phased out once
the AU has set up appropriate institutional structures.


9. (SBU) Partners would continue current individual program
funding/technical assistance for the AU but agree to move
into joint or flexible arrangements for new programs. (Note:
The AU has designated the Office of Strategic Planning
Policy, Monitoring and Evaluation and Resource Mobilization
(SPPMERM) to coordinate all partner support for the AU, serve
as the first point of contact for partners interested in
supporting any AU Commission or general AU activities, and
liaise with the various commissions to provide partners with
project proposals. End note).


10. (SBU) The EU is positioned to be the largest single donor
to the AU for the near future. A team from Brussels is
working with the AU to define a program of support amounting
to 55 million euros over three years (2007-2010). According
to EC Delegation representatives, this program will be in
line with the EU Strategy for Africa, and will be tied to AU
progress in implementing procurement reforms and other
improvements. Addis-based partners have expressed concern
that available EU funding not tied to the AU's own strategic
plan approved by AU member states will give the EU undue
influence over AU programs. Nevertheless, all partners,
including EC Delegation representatives, agree with the need
to pursue a unified approach to the AU to encourage necessary
institutional reforms.

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PEACE AND SECURITY STILL A SPECIAL CASE
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11. (SBU) Some AU partners lament the defacto separate status
of the AU peace and security Commission, as Peace and
Security funding takes on a momentum of its own, divorced
from coordination by the Office of Strategic Planning
(SPPMERM). Other partners, notably the UK and UN, emphasize
that assistance to the AU for peace and security often cannot
afford to be subjected to more lengthy bureaucratic
procedures. Support to the AU for Darfur and other potential
upcoming missions, such as the DRC, requires expedited
coordination and often detailed follow-up with the AU. The
UN is working with the AU to establish DPKO-like structures
to fast-track administration and recruitment for AU missions.

ADDIS ABAB 00000659 003 OF 003


(Comment: Post agrees with UK and UN points. End comment).


12. (SBU) While fora such as the liaison group coordination
mechanism for Darfur will continue parallel to the DCRF
framework, Addis-based partners will create a DCRF subgroup
on general peace and security support that will address
longer-term coordination on G8 Action Plan commitments to
enhance African peacekeeping capability through support for
the AU's African Standby Force (ASF) effort and other
programs. (Note: Until Russia assumed the G8 Presidency,
the Addis-based G8 presidency coordinated Action Plan
support. For consistency of focus, this coordination has now
moved outside the presidency framework. End note).

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COMMENT/ACTION REQUEST
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13. (SBU) Comment: Inadequate administrative and financial
structures continue to impede the AU's capacity to mount
effective peace support operations and otherwise proactively
address continental challenges related to governance, health,
etc. To the extent that the DCRF provides partners a forum
to guide and support AU institutional transformation and the
AU with more predictable resources, it should be encouraged,
and the USG should continue to participate. End comment.


14. (SBU) Action Request: Post requests Department guidance
on USG reaction to partner AU coordination plans, and input
for the March 8 DCRF meeting. End action request.



HUDDLESTON