Identifier
Created
Classification
Origin
07ABUDHABI197
2007-02-07 12:51:00
CONFIDENTIAL
Embassy Abu Dhabi
Cable title:
ABU DHABI FUND FOR DEVELOPMENT: PROJECTS IN LEBANON,
how-toVZCZCXRO0538 RR RUEHDE RUEHDIR DE RUEHAD #0197 0381251 ZNY CCCCC ZZH R 071251Z FEB 07 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC 8215 INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE RUEHLB/AMEMBASSY BEIRUT 0562 RUEHBUL/AMEMBASSY KABUL 0352 RUEHYN/AMEMBASSY SANAA 1473
C O N F I D E N T I A L ABU DHABI 000197
SIPDIS
SIPDIS
E.O. 12958: DECL: 2/07/2017
TAGS: ECON PREL EAID PHUM LE AF YM AE
SUBJECT: ABU DHABI FUND FOR DEVELOPMENT: PROJECTS IN LEBANON,
AFGHANISTAN, AND YEMEN
Classified by Ambassador Michele J. Sison for reasons 1.4(b) and(d).
C O N F I D E N T I A L ABU DHABI 000197
SIPDIS
SIPDIS
E.O. 12958: DECL: 2/07/2017
TAGS: ECON PREL EAID PHUM LE AF YM AE
SUBJECT: ABU DHABI FUND FOR DEVELOPMENT: PROJECTS IN LEBANON,
AFGHANISTAN, AND YEMEN
Classified by Ambassador Michele J. Sison for reasons 1.4(b) and(d).
1. (C) On February 6, Econoff met with Ahmed Hussain Al Baker, Acting
Director General of the Abu Dhabi Fund for Development (Fund) to
discuss the Fund's assistance to Lebanon and Afghanistan. The UAEG
pledged $300 million in soft loans to Lebanon during the Paris
Donors' conference. Al Baker said the Lebanese government had not
yet decided how to use the $300 million. According to Al Baker the
Fund would send a mission to Lebanon to assess the country's needs:
"Lebanon asked if the Fund would finance their debt services, but the
Fund does not provide debt services relief."
2. (C) Al Baker explained that the payment terms of the $300 million
in soft loans to Lebanon are "very generous." The Lebanese
government will have 25 years to re-pay the loan, including a 5 year
grace period at 3 percent interest. The Fund's usual rate of
re-payment is higher than 3 percent and the usual term is 15 years,
including a 3 year grace period. Al Baker added: "The UAE is very
concerned about Lebanon and wants the aid to happen quickly." Al
Baker has spoken to the Lebanese Finance Minister about what projects
the funds could be used for, but did not elaborate on the possible
projects: "The Lebanese government needs cash more than projects, but
cash is very difficult to give since the Fund cannot keep track of
what it is being used for." Al Baker commented: "I do not understand
why the Lebanese government did not ask for re-scheduling of payments
at the recent donors' conference in Paris."
3. (SBU) During the London Donor's Conference in January 2006, the
UAE pledged $30 million to Afghanistan to build roads in Kabul.
(Comment. This is unusual since the Fund generally provides loans,
not grants. End comment.)
4. (SBU) In November 2006, the Fund pledged $500 million for projects
in Yemen. $150 million has already been allocated for dam projects
in Yemen, but the rest of the money has yet to be allocated.
SISON
SIPDIS
SIPDIS
E.O. 12958: DECL: 2/07/2017
TAGS: ECON PREL EAID PHUM LE AF YM AE
SUBJECT: ABU DHABI FUND FOR DEVELOPMENT: PROJECTS IN LEBANON,
AFGHANISTAN, AND YEMEN
Classified by Ambassador Michele J. Sison for reasons 1.4(b) and(d).
1. (C) On February 6, Econoff met with Ahmed Hussain Al Baker, Acting
Director General of the Abu Dhabi Fund for Development (Fund) to
discuss the Fund's assistance to Lebanon and Afghanistan. The UAEG
pledged $300 million in soft loans to Lebanon during the Paris
Donors' conference. Al Baker said the Lebanese government had not
yet decided how to use the $300 million. According to Al Baker the
Fund would send a mission to Lebanon to assess the country's needs:
"Lebanon asked if the Fund would finance their debt services, but the
Fund does not provide debt services relief."
2. (C) Al Baker explained that the payment terms of the $300 million
in soft loans to Lebanon are "very generous." The Lebanese
government will have 25 years to re-pay the loan, including a 5 year
grace period at 3 percent interest. The Fund's usual rate of
re-payment is higher than 3 percent and the usual term is 15 years,
including a 3 year grace period. Al Baker added: "The UAE is very
concerned about Lebanon and wants the aid to happen quickly." Al
Baker has spoken to the Lebanese Finance Minister about what projects
the funds could be used for, but did not elaborate on the possible
projects: "The Lebanese government needs cash more than projects, but
cash is very difficult to give since the Fund cannot keep track of
what it is being used for." Al Baker commented: "I do not understand
why the Lebanese government did not ask for re-scheduling of payments
at the recent donors' conference in Paris."
3. (SBU) During the London Donor's Conference in January 2006, the
UAE pledged $30 million to Afghanistan to build roads in Kabul.
(Comment. This is unusual since the Fund generally provides loans,
not grants. End comment.)
4. (SBU) In November 2006, the Fund pledged $500 million for projects
in Yemen. $150 million has already been allocated for dam projects
in Yemen, but the rest of the money has yet to be allocated.
SISON