TRIDE Hits Its Stride

UNCLAS AMMAN 001479

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: EIND EINV ECIN PREL IS JO
SUBJECT: TRIDE Hits Its Stride

Ref: 2005 Amman 7327


1. Summary: Senior management from the Trilateral
Industrial Research and Development (TRIDE) Foundation met
Jordanian and USG representatives in Amman on February 20
for a strategic planning session. The productive and upbeat
meeting inaugurated the Ministry of Industry and Trade as
the lead Jordanian partner in TRIDE. Participants discussed
TRIDE's $1 million budget, past projects, current proposals,
and long-term goals. A TRIDE Executive Committee meeting is
tentatively scheduled for Jerusalem in March. End summary.

Next Meeting Scheduled For March 2006 in Jerusalem
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2. This was the first TRIDE meeting since Jordan's $333,333
contribution last December which completed the second
tranche of TRIDE's financing to a total of one million
dollars. During the meeting, participants agreed to hold
the next TRIDE meeting in March in Jerusalem.

Ministry of Industry and Trade Now in Charge
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3. Operational management of TRIDE in Jordan is now firmly
in the hands of the Ministry of Industry and Trade (MOIT).
Jordan's senior contact for TRIDE, MOIT Secretary General
Montaser Oklah, said Jordan strongly supports TRIDE and said
that TRIDE is now "home" at the MOIT, where it belongs.
TRIDE was previously managed by the Ministry of Planning and
International Cooperation. Oklah said that Jordan sees
great benefits from TRIDE, particularly in technology
transfer, which Jordan badly needs.

Pharmaceutical Project Looks Promising
--------------


4. Dr. Eitan Yudilevich, Executive Director of TRIDE,
presented background on TRIDE, and moved quickly to the
current situation. TRIDE has a $1 million budget, and has
at least one excellent proposal in development. The project
would be between an Israeli, an American and a Jordanian
firm for an R&D effort on production of antibiotics.
Yudilevich likes the fact that each company has a clear and
specific role in the project. As currently structured, this
proposal would require $900,000 from TRIDE, nearly all of
TRIDE's budget. Oklah said it was premature to make a
decision on this particular project, and added that the
financial sustainability of TRIDE is a key concern for
Jordan. He said that he doesn't want gaps in TRIDE's
projects; he wants to see a smooth stream of projects, not
an intermittent one here and there. Oklah suggested, and
Yudilevich agreed, that the upcoming TRIDE meeting would be
the appropriate forum for further discussion.

Jordan Wants Clear Guidelines and Fast Decisions
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5. On the subject of proposal review and approval, Oklah
said that clear, systematic evaluation guidelines and a
streamlined process would help enable fast decision-making
on project proposals. Yudilevich said he would take that on
as an action item. Yudilevich also noted that the TRIDE
Executive Committee has the ultimate authority in funding
decisions, and that it operates by consensus. Each member,
he said, would in effect have a veto over any project
proposal.

TRIDE's Future - Seeking Deeper Pockets
--------------


6. Yudilevich spent some time discussing the future of
TRIDE, specifically its level of funding. He advocated a
larger endowment for TRIDE. This financial cushion would
smooth out the ups and downs of the current funding
mechanism and help make TRIDE a success. It would to enable
TRIDE to "market" its services, to be able to commit to a
steady stream of projects, to weather the inevitable
failures, and to wait for the repayments that can be years
away. Yudilevich said he was under no illusions that this
funding would be easy to obtain, and said he was open to new
ideas.

Jordan Rep Looks to Private Sector
--------------


7. Speaking frankly, Oklah said that supplying those kinds
of funds will be "a problem" for the GoJ. He recommended
mobilizing private sector support, since business would be
the primary beneficiary of TRIDE. While acknowledging
Oklah's suggestion, Yudilevich noted that there is always
cost-sharing in TRIDE projects: according to TRIDE's rules,
TRIDE will fund only up to 50% of the projected R&D costs of
a project.

TRIDE to Develop a "White Paper" To Make Case for Funding
-------------- --------------


8. Oklah asked for supporting information and data on TRIDE
to help him make a successful case to the Cabinet for
additional funding for TRIDE. He added that "results on the
ground" would also be an important factor in persuading the
Cabinet to provide additional funding. Yudilevich said he
would prepare a "White Paper" to make the case for
additional funding.

Participants
--------------


9. Jordanian Participants:
-- Montaser Oklah, Secretary General, Ministry of Industry
and Trade (MOIT)
-- Bilal Hmoud, MOIT, Industrial Development Director
-- Mohammed Al-Khaldi, Head, Small and Medium-sized
Enterprise Section
-- Maha Tutunji, Managing Director, Pharmaceutical Research
Unit, Royal Scientific Society

Israeli Participants:
-- Danny Nevo, Charge d'Affaires, Embassy of Israel, Amman
-- Dov Hershberg, retiring Executive Director, US-Israel-
Jordan Trilateral Industrial Research and Development
Foundation (TRIDE)
-- Eitan Yudilevich, incoming Executive Director, TRIDE
Foundation
-- Uri Attir, Programs Director, TRIDE Foundation

USG Participants:
-- Richard Eason, Economics Counselor, Embassy Amman
-- Robert Tansey, Environment, Science, Technology and
Health (ESTH) Officer, Embassy Tel Aviv
-- Jock Whittlesey, Regional ESTH Officer, Embassy Amman


10. Comment: There is genuine enthusiasm for TRIDE in
Jordan. Jordan is ready to engage and has a clear picture
of both its needs and its limitations, knowledge which will
be critical in making TRIDE an ongoing venture.


11. Embassy Tel Aviv cleared this cable.

HALE