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.
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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/
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LeBaron