Identifier
Created
Classification
Origin
06SANAA146
2006-01-28 11:32:00
UNCLASSIFIED
Embassy Sanaa
Cable title:  

DONORS CALL FOR ROYG PARTICIPATION IN EITI, OTHER

Tags:  PGOV PREL ECON EINV EPET KMCA YM COM 
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UNCLAS SANAA 000146 

SIPDIS

PLEASE PASS TO EB/IFD LARRY GREENWOOD, AND EB/IFD/OIA PAUL
BROWN AND TIM HAUSER.

E.O. 12958: N/A
TAGS: PGOV PREL ECON EINV EPET KMCA YM ECON COM
SUBJECT: DONORS CALL FOR ROYG PARTICIPATION IN EITI, OTHER
IMPROVEMENTS IN BUSINESS ENVIRONMENT

REF: A. 2005 SECSTATE 213244

B. 2005 SANAA 3610

UNCLAS SANAA 000146

SIPDIS

PLEASE PASS TO EB/IFD LARRY GREENWOOD, AND EB/IFD/OIA PAUL
BROWN AND TIM HAUSER.

E.O. 12958: N/A
TAGS: PGOV PREL ECON EINV EPET KMCA YM ECON COM
SUBJECT: DONORS CALL FOR ROYG PARTICIPATION IN EITI, OTHER
IMPROVEMENTS IN BUSINESS ENVIRONMENT

REF: A. 2005 SECSTATE 213244

B. 2005 SANAA 3610


1. On January 24, post participated in the second of a series
of ROYG-donor dialogues on governance reform objectives. The
meeting focused on measures to improve the business enabling
environment in Yemen, and allowed the donors an opportunity
to present specific reforms the ROYG could take in the next
six months to help rebuild the confidence of foreign
governments and international investors. (Ref B) Post was
joined on the donor side by the U.N., World Bank, and the
U.K. and Netherlands Embassies.


2. One of the primary donor recommendations was that the ROYG
join the Extractive Industries Transparency Initiative (EITI)
at the soonest possible opportunity, to encourage
transparency in the Yemen's oil and natural gas sectors. (Ref
A) Other reform proposals included reducing the time and cost
of registering a business and streamlining customs
procedures. ROYG officials stated their intention to submit
an official application to join EITI in June of 2006.


3. U.K. representatives suggested that this timeline could be
expedited and that the ROYG could undertake specific measures
in the short term to demonstrate support for the initiative.
Yemen could, for example, publish a letter of intent to the
World Bank and IMF identifying Yemen's stakeholders in EITI,
and could form a committee to increase understanding of the
initiative. The ROYG responded that such a letter is already
under study by the Cabinet, and the Prime Minister ordered
the formation of an EITI committee. Cabinet endorsed
participation in EITI as part of a reform program submitted
separately by the World Bank.


4. COMMENT: Since Yemen's suspension from the Millennium
Challenge Account Threshold Program, post has been looking
for the ROYG to take specific actions to combat corruption
and demonstrate its commitment to political and economic
reform. Many reform and development programs in Yemen have
stalled due to a lack of political will, and donor benchmarks
are designed to test the ROYG's willingness to cooperate in
key sectors. Participation in EITI is now one of the
benchmarks post will use to measure progress in the coming
months. END COMMENT.
Krajeski