Identifier
Created
Classification
Origin
06GEORGETOWN1056
2006-10-10 19:36:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Georgetown
Cable title:  

GOG REACTION TO MCC FY07 SCORECARD

Tags:  ECON EAID KMCA GY 
pdf how-to read a cable
VZCZCXRO4835
RR RUEHLMC
DE RUEHGE #1056 2831936
ZNR UUUUU ZZH
R 101936Z OCT 06
FM AMEMBASSY GEORGETOWN
TO RUEHC/SECSTATE WASHDC 4227
INFO RUEHLMC/MILLENNIUM CHALLENGE CORP
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS GEORGETOWN 001056 

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ECON EAID KMCA GY
SUBJECT: GOG REACTION TO MCC FY07 SCORECARD

REF: STATE 159723

UNCLAS GEORGETOWN 001056

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ECON EAID KMCA GY
SUBJECT: GOG REACTION TO MCC FY07 SCORECARD

REF: STATE 159723


1. (U) SUMMARY: USAID Mission Director and State EconOff delivered
the Millennium Challenge Corporation (MCC) FY07 indicator scorecard
to Chief Cabinet Secretary Roger Luncheon, Minister of Finance Ashni
Singh, and Advisor within the Ministry of Finance Coby Frimpong on
October 5. The GOG acknowledged its failing scores in several
Economic Freedom indicators but questioned the data behind its
failing score on the Primary Education Expenditures indicator. The
GOG also inquired about the status of its Threshold Plan. END
SUMMARY.


2. (U) The GOG officials had little reaction to the Economic Freedom
indicators, which came as no surprise. Rather, Frimpong asked about
the Primary Education Indicator data and said that the UNESCO data
series has lags. EmbOffs explained that the UNESCO is the most
robust indicator that allows for cross-country comparison.


3. (U) Frimpong also asked when the Threshold Plan was likely to be
approved and why the proposal has not yet reached the board. In
particular, he asked if the MCC was waiting until publication of the
FY07 indicators before making a decision on the Threshold Plan.
Luncheon also said that the prolonged approval process has "created
uncertainty" as far as whether Guyana will really gain access to the
Millennium Challenge Account (MCA). He expressed an "overwhelming
desire to bring closure" to the process.


4. (SBU) Frimpong also said that a prolonged delay in approval of
the Threshold Plan may jeopardize the success of Guyana's Value
Added tax implementation, which is scheduled to come into force on
January 1, 2007. According to Frimpong, the GOG and other
international financial institutions that are supporting the VAT
implementation effort, including the Inter-American Development
Bank, have planned their efforts on the assumption that MCA
resources would have become available in August. He also suggested
that other donors had reallocated funds away from the VAT
implementation in anticipation of MCA support. COMMENT: Post has
engaged counterparts in the donor community throughout the Threshold
Plan development process, and they are aware that the MCA funds
would not be available in August. However, should the VAT
implementation slip past its deadline, Frimpong's sentiment suggests
that the GOG may try to pin some of the blame on the lengthy MCA
approval process. END COMMENT.

ROBINSON