GOH PREPARES FOR JULY 25 DONORS, CONFERENCE

UNCLAS SECTION 01 OF 02 PORT AU PRINCE 001266 SIPDIS SENSITIVE SIPDIS STATE FOR WHA/CAR EB/IFD STATE PASS TO USAID FOR LAC/CAR TREASURY FOR JEFFERY LEVINE COMMERCE FOR SCOTT SMITH E.O. 12958: N/A TAGS: EAID ECON PREL HA SUBJECT: GOH PREPARES FOR JULY 25 DONORS, CONFERENCE ¶1. (U) This message is sensitive but unclassified: please protect accordingly. ¶2. (SBU) Summary: The GOH is beginning to get into high gear for the July 25 Donors' Conference. Minister of Finance Daniel Dorsainvil outlined the GOH's priorities for the Conference: closing the financing gap, allocating existing donor activities to the Social Appeasement Program (French acronym, PAS),and finding new investments for the extension of the Interim Cooperation Framework (ICF) through 2007. Dorsainvil said his personal priority is to leave the Conference with an honest assessment of the pledges -- how much will be available and when. The Haitian National Police and UN Police are working together to ensure that proper security measures are in place for the Donors' Conference. As the Conference logistics come together, the expectations of certain GOH officials are increasing. However, Dorsainvil's modest goals for the Conference results were a refreshing sign of realism. End Summary. GOH Preparations Underway - - - - - - - - - - ¶3. (U) The GOH is moving into high gear for the July 25 Donors' Conference. According to the lead organizer, Anthony Dessources from the Ministry of Planning, there are no major crises, but some glitches remain. In this week's planning meeting, the six committees -- conference document, support, security, public relations, protocol, and budget -- shared information and tracked last-minute logistical concerns, like parking and a timely translation of the conference document. The GOH circulated the conference document in its latest draft form, which is still very general and lacks budget figures. (Note: Details have been forwarded to WHA/CAR and AID/LAC by email. End note.) The Executive Core Donors' Group will meet with the Ministries of Finance and Planning on July 13 to press them for final documents, including budget figures, by early next week. MOF Dorsainvil Outlines GOH Priorities - - - - - - - - - - ¶4. (SBU) Minister of Finance Daniel Dorsainvil told A/DCM and Econoff July 10 that the GOH has three priorities for the Donors' Conference: -- closing the financing gap of USD 18 million for this year and USD 104.5 million for the 2006/2007 fiscal year, which he said could drop to USD 40 million if the GOH obtains debt relief. (Note: Dorsainvil's 2006 figures differ somewhat from others we have seen. Per septel, International Monetary Fund Resident Representative Ugo Fasano reported a financing gap of USD 111.5 million. End note.) Dorsainvil said he is not yet confident the GOH has donor commitments to close the financing gap even for this fiscal year. (Separately, the EU delegation told us that the EU plans to contribute 10 million Euros toward this year's deficit, with additional funds under consideration for 2006/2007.) -- allocating existing donor activities to the Social Appeasement Program (French acronym, PAS). Dorsainvil explained the PAS as a vehicle to quickly disburse donor funds that are already in the pipeline. He acknowledged that donors cannot easily mobilize new funds to support the PAS and at this stage can only, at best, re-package existing commitments under the PAS rubric. (Separately, Fasano told us that his GOH contacts did indeed report new funds to be provided to the PAS as a subject of the government's broader infrastructure rehabilitation project.) -- finding new investments for the extension of the Interim Cooperation Framework (ICF),which will tackle broader problems like security and justice. ¶5. (SBU) Dorsainvil said his personal priority is to leave the Donors' Conference with an honest assessment of the pledges -- how much is available and when it will be disbursed. More than large numbers, he wants the right numbers and "predictability," so that he can properly adjust next year's budget. Already he said that he had given each PORT AU PR 00001266 002 OF 002 line ministry a budget ceiling, following consultations with an International Monetary Fund team that visited Haiti in June. These envelopes will be discussed at a cabinet meeting July 12, Dorsainvil said. Security Plan Ready - - - - - - - - - - ¶6. (U) The Haitian National Police (HNP) and UN Police (UNPol) have joined forces to ensure that proper security measures are in place for the July 24 and 25 conference dates. The HNP will post over 400 police to the conference site, intensify patrols, and reinforce static points in the capital. UNPol will station an extra 100 police around Port-au-Prince with an additional 25 at the conference site. ¶7. (SBU) Comment: The GOH is urgently making last-minute preparations for the Donors' Conference. However, as the logistical preparations come together, the GOH's expectations for the conference results are increasing. Dorsainvil is a savvy and experienced politician who has realistic goals for the up-coming Donors' Conference, but it is not clear that other government officials have such modest expectations. Post will continue to remind GOH officials that although the international community supports Haiti, it is government action and not donors' pledges that will indicate to parliamentarians, the private sector and the population at large that the country is finally moving forward. SANDERSON