IRAQ PRTS ASSESS PROVINCIAL GOVERNMENTS - APR 2006

C O N F I D E N T I A L SECTION 01 OF 07 BAGHDAD 001918

SIPDIS

SIPDIS

E.O. 12958: DECL: 06/07/2016
TAGS: PGOV ECON MOPS PREL IZ
SUBJECT: IRAQ PRTS ASSESS PROVINCIAL GOVERNMENTS - APR 2006

Classified By: DANIEL SPECKHARD: Reasons 1.4(b) and (d).


1. (SBU) INTRODUCTION. The Provincial Reconstruction Teams
(PRTs) in
Iraq report monthly the ability of the provincial level
government to
function effectively and the obstacles that prevent full self-
governance. The PRTs assess provincial governments in the
areas of
governance, economic development and infrastructure, and the
Multi-
National Corps assesses security (which is included in the
overall
assessment). Governance includes the governor, provincial
council
(PC),director generals (DGs),and rule of law and
transparency. The
economic development category measures finance, banking and
business;
labor and unemployment; transportation; and agriculture and
food.
Infrastructure incorporates basic needs; capacity of
electricity, fuel,
telecom, transportation, and irrigation systems; and
education systems.
The sub-categories are broken down even further to ensure
full
consideration of the various functions that fall into the
respective
categories.


2. (C) PRT members evaluate each area and assign a color to
identify
its current status. Considering each sub-category status, the
three
main pillars are assigned a color-coded status and these roll
up into
the overall evaluation for the respective PC. Green
indicates good
progress with no identified problems, yellow means progress
being made
with only minor problems, orange indicates slow progress with
significant problems, and red means very slow progress with
major
problems. The following paragraphs summarize the April 2006
assessments for the PRTs in Ninewa, Kirkuk, Babil, and
Baghdad
Provinces. END INTRODUCTION.

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NINEWA PROVINCE
--------------


3. (C) OVERALL AND GOVERNANCE. All three main pillars once
again
remained orange for the Ninewa provincial government April
assessment,
resulting in an overall assessment of orange. A surge of
insurgent
attacks against political leaders, their staffs and family
members
raised the level of concern about personal security.
Nevertheless, the
Governor and his staff continued to perform their duties. The
Governor
provides leadership within his sphere of influence, which is
small. He
works well with the Directors General and attempts to
influence the
political process through the media. Corruption is not
normally
associated with the Governor's office. However, full
disclosure of
funds, resources, contracts awarded, or other budgetary
issues
essential to a transparent government are lacking. The
Provincial
Council (PC) Chairman continues to dominate meetings but
certain
committees and individual members are beginning to be more

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assertive
and independent. Some PC members have demonstrated a new
resolve in
instituting democratic processes as interest grows in
equitable
distribution of the US $20M reconstruction and development
funds from
the central government.


4. (C) INFRASTRUCTURE. Infrastructure was rated overall
orange with
basic needs coded orange, capacity of the various systems
such as
electricity, fuel, telecom, etc., again lagged at red; and
the
education system was yellow. The infrastructure in Ninewa
Province
suffers from over 30 years of neglect. The provincial
utility
directorate organizations generally lack management skills,
capital
improvement schemes, urban and municipal planning skills, and
adoption
of necessary operation and maintenance practices. These
weaknesses
combined with centralized bureaucracy and authority,
particularly
budgetary, limits opportunity for genuine development. Waste
treatment
and solid waste disposal are the most significant problems
with basic
service delivery in the province. Water treatment plants and
systems
still need additional refurbishment, but capacity and
distribution of
improved water supply continues to improve.


5. (C) Despite recent completion of a Provincial
Reconstruction
Development Committee (PRDC) supply project, there is still a
shortfall
of approximately 355 transformers within the province. The
average
hours of power supplied to Ninewa by the national grid during
April was
nine hours, up from five and a half. Ninewa produces roughly
25
percent of the power for Iraq but receives less than 10
percent of the
power produced. Most of the region's power is exported to
Baghdad.
Approximately half of the transformers within the province
are
overloaded. Reportedly, there are as many as 157 villages in
the
northern part of Ninewa Province that do not have
electricity.
Although a list of these villages has been submitted to the
Ministry of
Electricity in Baghdad, no action has occurred to remedy the
situation.


6. (C) ECONOMIC DEVELOPMENT. The overall assessment for
economic
development was rated orange. Transportation was rated red
and all
other sub-areas received an orange rating. Moving from a
socialist to
a market economy will involve a paradigm shift in thought, as
well as a
secure environment. Local Iraqi citizens have the desire to
change but
are hampered by fear of insurgents and established
governmental
regulations. Entrepreneurship is alive and well in smaller
markets.
Development of business associations will further strengthen
growth and
political influence of small businessmen and would empower
local town

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governments to represent their constituency with greater
clout. There
are 22 state-owned enterprises in Ninewa Province. Most of
these are
operating substantially below capacity or not at all, yet
they continue
to employ staffs who perform little or no actual productive
work. The
existence of these state-owned enterprises tend to depress
overall
productivity and should be eliminated.

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TAMIM (KIRKUK) PROVINCE
--------------


7. (C) OVERALL AND GOVERNANCE. Kirkuk was again rated
overall orange
for April, as well as the three main pillars. The governance
area was
rated orange. The PC remained yellow and the Director
General sub-area
increased to yellow. The Governor's office and rule of law
and
transparency received orange ratings. Ethnic divisions
continue to
impede real progress. The Deputy Governor position remains
unfilled.
The PC must become self policing, self sufficient, and
demonstrate the
ability to manage priorities and resources. The court system
must
establish a facility that is physically secure, as well as
provide
adequate security details for protection of judges away from
the
courthouse. Handwritten logs and ledgers should be replaced
with
computerized monitoring systems.


8. (SBU) INFRASTRUCTURE. Infrastructure was rated overall
orange with
basic needs coded orange, capacity of the various systems
such as
electricity, fuel, telecom, etc., slipped to orange, the
education
system was yellow, and civil service was rated red. Although
the
education system was rated yellow and functions well, the
ethnic
diversity of Kirkuk means that different schools teach in
different
languages: Arabic, Kurdish, or Turcoman. Schools with a
mixed student
population are particularly a problem in that the language
children are
taught in school may not be the one spoken at home.
Additionally,
schools may reflect only one ethnic group perspective. There
have been
charges by the Kurdish community that qualified Kurdish
teachers were
not hired due to ethnicity.


9. (SBU) The monthly average for electricity in homes rose
to
approximately 14-16 hours per day. The percentage of homes
connected
to an electrical grid remained approximately 85%. The PC
approved
three electrical projects, however, none are yet funded.
There are
four substations currently under construction in different
areas of
Kirkuk Province.


10. (SBU) ECONOMIC DEVELOPMENT. Factors affecting the
economic
development rating were all rated orange. The agriculture and
food

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category slipped back to orange from yellow. There was an 11
percent
increase in rural and small business growth, while medium and
large
business grew 10 percent. Unemployment, at 25 to 35 percent,
continues
to be a problem. Average household income is only USD $300
per month
according to information gathered by the PRT. According to
the data
collected, approximately 15 percent of the population goes
hungry at
any one time. There are ample agricultural products for sale
in Kirkuk
markets due to local farmers selling their products but food
is often
expensive.

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BABIL PROVINCE
--------------


11. (C) OVERALL AND GOVERNANCE. Babil Province was assessed
overall
at orange for April. Governance was overall yellow. Three of
the four
sub-categories were yellow. The fourth area, Directors
General, was
rated orange. On 26 April, the Babil Provincial Government
ended its
boycott of the PRT and Coalition Forces (CF) and held its
first PRDC
meeting in eight weeks. Communication has been open and
cooperative.
The most critical indication of successfully restored
relationships has
been the absence of threats to any PC members who have
engaged with USG
entities.


12. (C) INFRASTRUCTURE. The overall infrastructure
assessment for
Babil Province was rated orange. There have been no
substantial
changes to basic needs from last month. Approximately 80
percent of
the region has access to potable water on a daily basis. The
solid
waste management system is ineffective. Proper collection
and disposal
is key to growth and improvement. The lack of medical
equipment and
supplies places patients at grave risk for further
complications.
Currently, hospitals can barely handle the daily patient
requirements.
They are overcrowded and need trained personnel. The medical
and
hospital system would be overwhelmed in case of any major
casualty
incident.


13. (SBU) ECONOMIC DEVELOPMENT. The economic development
category was
rated overall orange, as well as all sub-categories. Private
sector
enterprise is very limited. Very few businesses in Babil are
successful privately owned enterprises. The key is getting
other
investors, foreign or domestic, to enter the market. Loans
must be
affordable and available for potential businesses. Some
investors have
complained that banks cannot loan them money because their
loans would
exceed the bank loan threshold. State-owned enterprises
should be
vastly reduced and retooled for new markets that could impact
economic
growth and development, especially the textile industry.

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BAGHDAD PROVINCE
--------------


14. (C) OVERALL AND GOVERNANCE. The overall and governance
assessment
for Baghdad Province was coded orange for April. The
Governor's Office
and PC were rated yellow, while the Directors General and
Rule of Law
and Transparency sub-categories were orange. The Governor's
Office,
which receives direction and priorities from the PC, must
influence the
determination of those priorities and execute them in ways
best for the
Baghdad Province populace. The Governor's Office should
press the PC
to clarify ambiguities in government structure in order to
streamline
government, prevent redundancy, and prevent intergovernmental
conflict.


15. (C) The PC meets weekly but its meetings are generally
closed to
the public and the minutes are rarely published. The PC
budgeting
process and accountability of funds are unclear. The PC has
set up
committees and is reaching out to district councils, but is
doing so in
the absence of a provincial governance charter.


16. (C) INFRASTRUCTURE. Baghdad Province infrastructure
increased
from red to orange. Basic needs and capacity of the various
systems
such as electricity, fuel, telecom, etc., were assessed as
orange.
Civil service was rated red and education received a yellow.
Baghdad
residents continue to see water service improvements. One
water
treatment plant expansion added 50 million gallons per day to
city
capacity. The main challenge within the city remains water
loss from
leaking pipes which causes contamination of over 50 percent
of the city
potable water. The average hours of power reportedly
supplied by the
national grid to Baghdad Province during April was less than
the hours
experienced under the Saddam regime. The electrical supply
does not
meet current demands. Residents continue to rely on
neighborhood power
generation. The overall unsatisfactory state of the
infrastructure
continues to undermine possibilities for progress in all
sectors. The
Baghdad Provincial Government must secure funding to
fundamentally
improve the volume and delivery of essential services
required by the
population.


17. (SBU) ECONOMIC DEVELOPMENT. The overall assessment for
economic
development was coded orange. All sub-categories were each
rated
orange. Loans are difficult to obtain for business owners.
The first
micro-finance center in Baghdad Province is scheduled to open
within
the next 60 days in Mahmoudiya district. The PRT has seen
evidence
that some small businesses are cropping up around the

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province and some
deserted shops are being re-occupied. Job opportunities for
unskilled
laborers are few and skilled positions are difficult to fill.
The
large unskilled labor pool keeps wages generally low.

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TABLE SUMMARIZATION
--------------


18. (C) The following table summarizes, by province, the
assessment
report in governance, economic development, infrastructure,
and
security which all contribute to the overall assessment.
Colors listed
in capital letters indicate a change from the previous month.


NINEWA PROVINCE:
Overall Assessment Orange
Governance Overall Orange
--Governor's Office Orange
--Provincial Council Orange
--Director's General Orange
--Rule of Law and Transparency Orange
Economic Development Overall Orange
--Finance/Banking/Business Orange
--Labor and Unemployment Orange
--Transportation Red
--Agriculture/Food Orange
Infrastructure Overall Orange
--Basic Needs Orange
--Economic Infrastructure Red
--Education Yellow
--Civil Service Data Not Available
Security Overall Yellow
--Threat Assessment Yellow
--Iraqi Security Forces Yellow
--Governor Yellow
--MNF-I Green

TAMIM (KIRKUK) PROVINCE:
Overall Assessment Orange
Governance Overall Orange
--Governor's Office Orange
--Provincial Council Yellow
--Director's General YELLOW
--Rule of Law and Transparency Orange
Economic Development Overall Orange
--Finance/Banking/Business Orange
--Labor and Unemployment Orange
--Transportation Orange
--Agriculture/Food ORANGE
Infrastructure Overall Orange
--Basic Needs Orange
--Economic Infrastructure ORANGE
--Civil Service Red
--Education Yellow
Security Overall Orange
--Capable Iraqi Army Orange
--Capable IPS Orange
--Detention Red
--PJCC Green
--PSC Green

BABIL PROVINCE:
Overall Assessment Orange
Governance Overall Yellow
--Governor's Office Yellow
--Provincial Council Yellow
--Director's General Orange
--Rule of Law and Transparency Yellow
Economic Development Overall Orange
--Finance/Banking/Business Orange
--Labor and Unemployment Orange
--Transportation ORANGE
--Agriculture/Food Orange
Infrastructure Overall Orange

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--Basic Needs Orange
--Economic Infrastructure Orange
--Education Orange
--Civil Service Orange
Security Overall Orange
--Capable Iraqi Army Orange
--Capable IPS Orange
--Detention Orange
--PJCC ORANGE
--PSC Orange

BAGHDAD PROVINCE:
Overall Assessment Orange
Governance Overall
--Governor's Office Yellow
--Provincial Council Yellow
--Director's General Orange
--Rule of Law and Transparency Orange
Economic Development Overall Orange
--Finance/Banking/Business Orange
--Labor and Unemployment Orange
--Transportation Orange
--Agriculture/Food Orange
Infrastructure Overall ORANGE
--Basic Needs Orange
--Economic Infrastructure ORANGE
--Education Yellow
--Civil Service Red
Security Overall Yellow
--Capable Iraqi Army Yellow
--Capable IPS Yellow
--Detention Yellow
--PJCC Yellow
--PSC Orange


19. (C) COMMENT. The assessment is performed each month by
the PRTs
and evaluates information existing at the time. In some
cases, the PRT
members do not have sufficient data to make a fair evaluation
without
further research. The rating is aimed at identifying areas
that need
improvement to pursue the provincial path to
self-sufficiency. It
serves as a roadmap for future PRT training efforts, as well
as a
measurement of progress made. The items cited in the above
paragraphs
are not totally inclusive, but rather a sampling of the
actions
necessary for further progress. END COMMENT.
KHALILZAD