Identifier
Created
Classification
Origin
06DAKAR2749
2006-11-15 17:59:00
CONFIDENTIAL
Embassy Dakar
Cable title:
GUINEA BISSAU: DONORS GIVE TEPID SUPPORT
how-toVZCZCXRO9956 RR RUEHPA DE RUEHDK #2749 3191759 ZNY CCCCC ZZH R 151759Z NOV 06 FM AMEMBASSY DAKAR TO RUEHC/SECSTATE WASHDC 6881 INFO RUEHZK/ECOWAS COLLECTIVE RUEHBR/AMEMBASSY BRASILIA 0210 RUEHLC/AMEMBASSY LIBREVILLE 0916 RUEHLI/AMEMBASSY LISBON 0762 RUEHLU/AMEMBASSY LUANDA 0395 RUEHTO/AMEMBASSY MAPUTO 0430
C O N F I D E N T I A L DAKAR 002749
SIPDIS
SIPDIS
STATE FOR AF/W, AF/RSA, EC, IO, S/P
ACCRA FOR USAID/WA
PARIS FOR POL D'ELIA
E.O. 12958: DECL: 04/07/2016
TAGS: EAID SNAR PREL ECON PU
SUBJECT: GUINEA BISSAU: DONORS GIVE TEPID SUPPORT
REF: HOLLIDAY-IVANOVA EMAIL 10-31-06
Classified By: Acting DCM Claud R. Young for reasons 1.4 (b) and (d)
SUMMARY
-------
C O N F I D E N T I A L DAKAR 002749
SIPDIS
SIPDIS
STATE FOR AF/W, AF/RSA, EC, IO, S/P
ACCRA FOR USAID/WA
PARIS FOR POL D'ELIA
E.O. 12958: DECL: 04/07/2016
TAGS: EAID SNAR PREL ECON PU
SUBJECT: GUINEA BISSAU: DONORS GIVE TEPID SUPPORT
REF: HOLLIDAY-IVANOVA EMAIL 10-31-06
Classified By: Acting DCM Claud R. Young for reasons 1.4 (b) and (d)
SUMMARY
--------------
1. (U) The GOGB fell short of its goals for program and
budget support at the Donor,s Round Table sponsored by the
UNDP in Geneva Nov. 7-8 but will probably still cover its
budget gap due to heavy lobbying and delayed pledges. End
Summary.
ARM TWISTING WILL LIKELY PAY OFF
--------------
2. (U) At the start of the conference, Guinea-Bissau needed
to make up a budget gap of USD 15 million for FY 2006 and USD
26 million for FY 2007 in order to get additional World Bank
and IMF support loans. During the two days, the GOGB secured
pledges of USD 29.45 million in budget support, cumulative
for the two fiscal years, and USD 233.06 million in program
support over six years (2006-2011).
3. (U) Some donors, such as Spain, indicated budget support
would likely be forthcoming but the background documents had
not been distributed with enough time to get instructions
from capitals on how much could be offered. Those who made
sizeable contributions such as the EU, Portugal, France,
China, South Africa, ECOWAS and the West African Economic and
Monetary Union (WAEMU) will likely ensure Guinea-Bissau does
not &cross the ocean only to die on the beach8 in the words
of Prime Minister Aristides Gomes, the round table chair.
The GOGB will continue to lobby potential donors hard, as
they did in the back rooms of the conference, to cover the
gap. They also vowed to continue trying to cut down the
budget but claimed it was already very tight thanks to the
IMF delegation that helped them draft it.
4. (U) World Bank and IMF delegates spoke in favor of support
and urged donors to fill the budget gap so they could
consider Guinea-Bissau for broader assistance (no details
were given).
5. (U) U.S. delegation head Gregory Holliday delivered the
prepared statement (reftel) announcing upcoming programmatic
support and the fact that the USG is working toward reopening
the U.S. Embassy in Bissau. Spain also announced it would
open an embassy in Bissau among the six new embassies it was
opening in West Africa.
COMMENT
--------------
6. (C) There was little talk during the sessions about drug
trafficking, corruption, or the intentions of former
president Kumba Yala who stated publicly upon his return to
Bissau that the elected government has no legitimacy.
However, delegates were concerned about these issues and it
showed in their tepid statements of support. Overall, there
seemed to be a &wait and see8 approach by most donors.
JACOBS
SIPDIS
SIPDIS
STATE FOR AF/W, AF/RSA, EC, IO, S/P
ACCRA FOR USAID/WA
PARIS FOR POL D'ELIA
E.O. 12958: DECL: 04/07/2016
TAGS: EAID SNAR PREL ECON PU
SUBJECT: GUINEA BISSAU: DONORS GIVE TEPID SUPPORT
REF: HOLLIDAY-IVANOVA EMAIL 10-31-06
Classified By: Acting DCM Claud R. Young for reasons 1.4 (b) and (d)
SUMMARY
--------------
1. (U) The GOGB fell short of its goals for program and
budget support at the Donor,s Round Table sponsored by the
UNDP in Geneva Nov. 7-8 but will probably still cover its
budget gap due to heavy lobbying and delayed pledges. End
Summary.
ARM TWISTING WILL LIKELY PAY OFF
--------------
2. (U) At the start of the conference, Guinea-Bissau needed
to make up a budget gap of USD 15 million for FY 2006 and USD
26 million for FY 2007 in order to get additional World Bank
and IMF support loans. During the two days, the GOGB secured
pledges of USD 29.45 million in budget support, cumulative
for the two fiscal years, and USD 233.06 million in program
support over six years (2006-2011).
3. (U) Some donors, such as Spain, indicated budget support
would likely be forthcoming but the background documents had
not been distributed with enough time to get instructions
from capitals on how much could be offered. Those who made
sizeable contributions such as the EU, Portugal, France,
China, South Africa, ECOWAS and the West African Economic and
Monetary Union (WAEMU) will likely ensure Guinea-Bissau does
not &cross the ocean only to die on the beach8 in the words
of Prime Minister Aristides Gomes, the round table chair.
The GOGB will continue to lobby potential donors hard, as
they did in the back rooms of the conference, to cover the
gap. They also vowed to continue trying to cut down the
budget but claimed it was already very tight thanks to the
IMF delegation that helped them draft it.
4. (U) World Bank and IMF delegates spoke in favor of support
and urged donors to fill the budget gap so they could
consider Guinea-Bissau for broader assistance (no details
were given).
5. (U) U.S. delegation head Gregory Holliday delivered the
prepared statement (reftel) announcing upcoming programmatic
support and the fact that the USG is working toward reopening
the U.S. Embassy in Bissau. Spain also announced it would
open an embassy in Bissau among the six new embassies it was
opening in West Africa.
COMMENT
--------------
6. (C) There was little talk during the sessions about drug
trafficking, corruption, or the intentions of former
president Kumba Yala who stated publicly upon his return to
Bissau that the elected government has no legitimacy.
However, delegates were concerned about these issues and it
showed in their tepid statements of support. Overall, there
seemed to be a &wait and see8 approach by most donors.
JACOBS