LEBANON: GHASSAN TAHER LAYS OUT PARTIAL REBUILDING

C O N F I D E N T I A L SECTION 01 OF 02 BEIRUT 002971 SIPDIS SIPDIS STATE NEA/ELA FOR ABERCROMBIE-WHINSTANLEY/WILLIAMS/DONICK NSC FOR ABRAMS/DORAN/MARCHESE/HARDING E.O. 12958: DECL: 09/12/2016 TAGS: EAID PREL LE SUBJECT: LEBANON: GHASSAN TAHER LAYS OUT PARTIAL REBUILDING STRATEGY REF: BEIRUT 2935 Classified By: Jeffrey D. Feltman, Ambassador. Reason 1.4 (b) and (d). SUMMARY -------------- ¶1. (C) During a September 11 meeting with the Ambassador and poloff in the Grand Serail, PM Siniora's reconstruction adviser Ghassan Taher-Fadlallah described his specific role in the reconstruction effort, noting that he is the point person for project coordination. Taher explained the GOL strategy for dealing with the rebuilding of private homes in the South and the Biqa' Valley, though admitted that the southern suburbs are a bit more complex due to population density and legal issues. Responding to the Ambassador's concern that the new GOL shelter strategy will involve prefab housing, Taher said that the orders for prefabs had already been placed. END SUMMARY. WHO'S IN CHARGE? -------------- ¶2. (C) Taher -- who recently took over in this job from Nabil Jisr, who now heads the Council for Development and Reconstruction (CDR) -- remarked that he had previously also served as adviser for reconstruction under the late Prime Minister Hariri. Jisr's recent move to the CDR, replacing the lacklustre Fadl Shallak, means the CDR can once again become an "active, executive arm of the government," according to Taher, who added that he meets with Jisr on a daily basis. Taher noted that Finance Minister Jihad Azour is in charge of coordinating donor pledges, while Taher is in charge of how the money will get spent. As the person who sets priorities and coordinates projects, says Taher, his office should be the primary contact point for the Embassy, whether for questions on Unexploded Ordinance, the oil spill, housing, or any other issue. The Ambassador suggested that PM Siniora convene a meeting of all the major donors to clearly explain this. (Comment. While PM Siniora also gave Taher his vote of confidence (reftel),Nabil Jisr's role -- and apparent demotion -- still remain unclear to us. End Comment.) REBUILDING PRIVATE HOMES OUTSIDE BEIRUT -------------- ¶3. (C) According to Taher, the GOL has separated the southern suburbs from the Biqa' Valley and the South due to the complex mix of density, property ownership, zoning, and �0A;other legalities in the urban environment. A special committee will be established to deal with the suburbs, including representatives from the municipalities, the GOL, CDR, independent engineers, and "people on the ground," which Taher acknowledged means Hizballah and Amal. The Walid Jumblatt-aligned Fund for the Displaced is still assessing the extent of damages in the suburbs. ¶4. (C) As for the Biqa' and the South, plans have advanced further. Producing a nifty, color-coded spreadsheet, Taher said the GOL has identified 253 villages in the Biqa' and the South that suffered some sort of damage in the conflict. Taher's spreadsheet rank-orders the villages according to the extent of the damage to private homes only (Khiam is number one),and also differentiates on four levels -- total destruction, partial destruction, severe damage, and partial damage. Next to each town is listed the donor country responsible for that town. ¶5. (C) Money will be disbursed according to what category the home falls under. For a totally demolished house, the homeowner will receive a full 60 million Lebanese lira ($40,000) for rebuilding the home, installing fixtures, and buying new furniture. For a partially demolished home, the homeowner will receive 70 percent of that. For severe damage, the amount is 40 percent. Lastly, for partial damage, they will receive 10 percent. Based on this formula, Taher estimates the cost for rebuilding private homes in the South and Biqa' will amount to $843 million, with Saudi Arabia bearing the lion's share of that with $212 million, BEIRUT 00002971 002 OF 002 Qatar with $154 million, and Kuwait and UAE each with $100 million. Taher acknowledged that there is still a shortfall to fill. ¶6. (C) According to Taher, there will be no generic rebuilding of private homes; each family will take control of constructing their own home. As the construction progresses, money will be disbursed directly from the donors' accounts. This will not be based on invoices, which Taher says are "useless" and can easily be forged. Instead, assessment teams from the Council for the South, the CDR, and the Fund for the Displaced will set benchmarks for reconstruction costs -- for example, that a window pane cannot cost more than $100 -- to which homebuilders must adhere. When the Ambassador expressed reservations about the history of corruption of all three organizations, Taher assured him that "no money will pass through them." Taher claimed that Speaker Nabih Berri -- whose wife Randa previously used the Council for the South as her personal ATM -- has agreed to this arrangement. (Comment: One can still see room for Randa Berri's style of corruption. Take the case of the $100 window pane. Maybe a homeowner who needs one window pane replaced makes a deal with a CDR official to claim two. The CDR official will certify that two panes were replaced, and the official and the homeowner split the proceeds of the second, phantom pane. End comment.) STILL STUCK ON PREFABS -------------- ¶7. (C) Concerned by the GOL decision to change the shelter strategy previously agreed upon with UNHCR, the Ambassador expressed USG reservations about the intention to rely on prefab housing to "temporarily" shelter those left homeless by the conflict. Taher acknowledged that not all prefabs will come in the same shape and size, and that jealousies will develop if one town receives nicer prefabs than a next-door town, but he noted that the die is already cast since the prefabs have been ordered. He said that they would be receiving 50 from Saudi Arabia and 750 from Turkey (though it is not clear if this is just an initial delivery). COMMENT -------------- ¶8. (C) While this was a refreshingly detailed meeting, and though Taher is a smart, urbane interlocutor with a private sector mentality, it is clear the GOL still has a long way to go. Not only do Taher and co. still need to come up with a plan for rebuilding public facilities, but they must also sort through the legal, ethical, and political morass of the southern suburbs. We hope though that Siniora can give Taher (a Shi'i) a much more public role in the reconstruction effort, not only because of his confession, but also because of his competence. While we were relieved in this meeting to see that much more was happening than we had known, we also felt, as we flipped through the detailed charts and graphs, that we had been admitted into an industrious secret society. The GOL's reconstruction efforts should not be kept under wraps, and we hope Taher will be able to convince Siniora to convene a broader donor meeting. FELTMAN