GAINING SUPPORT FOR ERBIL AGRICULTURAL PROJECT

UNCLAS SECTION 01 OF 02 BAGHDAD 004692 SIPDIS SIPDIS E.O. 12958: N/A TAGS: ECON ETRD EAGR IZ SUBJECT: GAINING SUPPORT FOR ERBIL AGRICULTURAL PROJECT REF: BAGHDAD 3485 ¶1. Summary. During December 11-14 Multi-National Forces-Iraq Civil Military Office (MNF-I CMO) and Econoff traveled to Erbil to discuss construction of facilities for honey production and a farmers' market in northern Iraq with Multi-National Division-North East (MND-NE) at Camp Zaytun. The group also met and discussed this project with a non-governmental organization (NGO) working with beekeepers in northern Iraqi, farmer unions and officials from the Kurdistan Regional Government's Ministry of Agriculture (KRG MoA). MNF-I CMO wanted to determine the support MND-NE, the local beekeepers' association, and the KRG MoA could provide for this project. The KRG MoA committed to providing land once a suitable location was identified. The local association promised to provide expertise and training to the project. MND-NE offered to provide heavy construction equipment. Funding commitments by the parties were not agreed to during these meetings, but a Memorandum of Understanding (MoU) is being worked out among the parties. MNF-I CMO is pushing for the project to begin officially by January 1, 2007, and break ground for the facility by the beginning of April. End Summary. -------------- Erbil Bound -------------- ¶2. During December 11-14, MNF-I CMO and Econoff traveled to Erbil to meet with the CMO office of the Korean military (MND-NE) at Camp Zaytun, agriculture officials of the KRG, and the private sector to discuss support for construction of honey processing and farmers' market facilities in northern Iraq. The project would include equipment for the processing of local honey from its raw state to a finished and labeled product that could be marketed locally. Additional space would also be provided for a farmers' market with associated cold storage, public restrooms, and parking. In assessing the need for these facilities, the local NGO representative, Mr. Rayan Toma Oghana and officials from the KRG MoA, stated that approximately 350 metric tons (MT) of honey are consumed yearly in Erbil. Only 180 MTs are produced locally. According to Mr. Oghana, locally produced honey sells for twice the price of imported honey from Iran, Syria or Turkey due to the greater trust in the quality of the locally produced product. -------------- Preparing the Ground -------------- ¶3. The facility would also be a training center and a place for local farmers to market products other than honey. The private sector was represented by Mr. Oghana and other members of the Youth Activities Organization (YAO),a progressive NGO started three years ago as part of an Agriculture Reconstruction and Development Program in Iraq (ARDI) project, and is currently working to develop the honey industry in northern Iraq. In the initial meetings Mr. Kamal Abbas represented the KRG MoA. ¶4. On December 12, the group discussed what contributions to the project would be made by each participant. The YAO is ready to provide training for the processing facility, and the KRG MoA is willing to provide the land. MNF-I CMO indicated that some modest funding may be available from USG sources. MND-NE indicated that, although it may be unable to provide funding, it would be able to provide heavy construction equipment because it already has this equipment in-country at its vocational training center (see reftel). -------------- Location, Control and Timing -------------- ¶5. Another area of discussion was the location of the facilities and whether they would be government or privately controlled. MNF-I CMO argued for several locations in the important agricultural areas in northern Iraq, such as the area just north of Erbil in Shaqlawah, where ARDI, MNF-I CMO, and YAO have supported honey production projects. The YAO suggested that the facilities ultimately be controlled by the local private organizations involved in the project. Mr. Kamal from the KRG MoA said that the KRG initially should manage the facilities, until the associations demonstrated that they could manage the projects on their own. MNF-I CMO said that an optimum timeline would be for the ground-breaking for the first facility to take place by the beginning of April 2007. BAGHDAD 00004692 002 OF 002 -------------- Agriculture Will Rise Again -------------- ¶6. On December 13, the parties met with Mr Abdul-Aziz Taib, the KRG Minister of Agriculture, who said that his ministry strongly supports the project. According to Mr. Taib, agriculture was devastated under the former regime, and the KRG MoA believes that it is an area of tremendous economic potential for northern Iraq. MNF-I CMO asked if KRG MoA would support the project by donating land. The Minister said that when the details of location were established, the KRG MoA could provide the land. During the meeting, the MND-NE suggested putting together an MoU among the parties (KRG, MNF-I, and the private sector) to establish clearly the roles and responsibilities of each participant in the project. MNF-I CMO reiterated its desire to have this project begin soon (by January 1, 2007) and to have construction work begin by April 1. Although this timeline is desirable, MND-NE emphasized that the group should take the time necessary to ensure the project is well-executed. MND-NE has completed many similar projects during its tenure in northern Iraq, and consequently has a solid understanding of the time required to plan-and-complete a project of this nature. -------------- Other Needs -------------- ¶7. Further issues were raised during the meeting with the KRG MoA regarding support and assistance in the following areas: aquaculture, seed cleaning, seed supply, grain silos, cold storage, grape farming, chicken production, produce transport, and training courses for all sectors within the KRG MoA sphere. ¶8. Later on December 13, the KRG MoA and MNF-I visited two honey-producing farms in the area. One was close to Erbil in an area where MND-NE conducted one of its reconstruction projects called New Village. The other was in the area of Shaqlawah where MNF-I CMO had supported a bee production project with ARDI. MND-NE was interested to see if the areas would be suitable for the production facility. MND-NE it is concerned that facilities be close to markets and thereby do not place an undue transportation burden on honey producers. ¶9. Comment. The project would undoubtedly be important for a sector of the economy identified as critical by the KRG. It remains to be seen exactly what the participants' roles and responsibilities will be in the project. These issues will be thoroughly worked out in the preparation of the MoU. Since MNF-I CMO is seeking an aggressive time-table, it is working to develop the MoU as soon as possible. Periodic updates on the project will be provided. End Comment. KHALILZAD