LEBANON: UPDATE ON ASSISTANCE FROM KUWAIT

C O N F I D E N T I A L KUWAIT 004415 SIPDIS SIPDIS STATE PASS TO USAID, NEA/ARP FOR JACKSON E.O. 12958: DECL: 11/08/2011 TAGS: ECON EFIN EAID KU SUBJECT: LEBANON: UPDATE ON ASSISTANCE FROM KUWAIT REF: A. STATE 183255 ¶B. KUWAIT 3309 ¶C. KUWAIT 4119 ¶D. KUWAIT 3392 Classified By: Economic Counselor Timothy Lenderking for Reasons 1.4 (b ) and (d) ¶1. (SBU) In response to reftel request for updates on host country assistance to Lebanon, Econcouns met November 7 with Kuwait Fund Regional Director for Arab Affairs Marwan al-Ghanim. Al-Ghanim said the Kuwait Fund was forging ahead with plans to allocate the USD 300 million pledged to the GOL earlier over the summer (Reftel B),even though the National Assembly had technically not yet approved this addition to the foreign assistance budget. Al-Ghanim was "one hundred percent confident" the National Assembly would approve the budget increase, perhaps in its deliberations over the foreign assistance budget for FY 2007-2008. "The assistance has been announced," al-Ghanim said, "and it will be provided." ¶2. (SBU) Al-Ghanim indicated the USD 300 million in assistance would be allocated as follows: -- USD 100 million would go directly to families whose property sustained damages in the summer fighting between Israel and Hizballah. An advisor from the Kuwait Fund would travel to Lebanon on November 22 to review files identifying homeowners eligible for assistance. The Fund had already reached agreement with the GOL that individuals whose houses had been completely destroyed would receive USD 40,000 in cash (over three installments) to help rebuild (USD 33,000 for reconstruction supplies and USD 7000 for furniture). Through various trips to Lebanon and coordination with the central development council in Beirut, the Fund had identified some 7500 priority homeowners scattered over twenty villages in southern Lebanon. -- USD 150 million for repair and development of infrastructure in Beirut and southern Lebanon, especially in the vicinity of the twenty villages identified above. -- USD 50 million for development of infrastructure in other war-damaged parts of the country. ¶3. (C) Al-Ghanim noted that the Kuwait Fund was hoping to re-open an office in Beirut in the near future, which has been closed since 2000. He added that the Kuwait Fund had no official dealings with Hizballah, but in the Fund's work in southern Lebanon, dealing with Hizballah members and representatives was "unavoidable." Al-Ghanim said the Fund provided aid based on need and without reference to sectarian considerations. ¶4. (SBU) In addition to assistance provided to Lebanon by the Kuwait Fund, the Kuwait Red Crescent Society (KRCS) dispatched its thirtieth convoy of food and medical assistance on November 7. The convoy reportedly contained some 20,000 blankets and a fully equipped ambulance. KRCS has provided continuous aid to Lebanon since the cessation of hostilities this summer. ¶5. (SBU) As noted reftels C and D, the Arab Fund extended a loan of USD 100 million to the GOL in September, and the GOK deposited a direct grant of USD 500 million in Lebanon's Central Bank in August. ********************************************* * For more reporting from Embassy Kuwait, visit: http://www.state.sgov.gov/p/nea/kuwait/?cable s Visit Kuwait's Classified Website: http://www.state.sgov.gov/p/nea/kuwait/ ********************************************* LeBaron