PRT TIKRIT: BAYJI LOCAL LEADERS SPEAK OUT: NEW

UNCLAS BAGHDAD 001028

SIPDIS

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: ECON EAGR IZ
SUBJECT: PRT TIKRIT: BAYJI LOCAL LEADERS SPEAK OUT: NEW
BUDGET EXECUTION REGULATIONS CRUCIAL

REF: A) 06 BAGHDAD 4728 B) BAGHDAD 380


1. THIS IS A PRT TIKRIT, SALAH AD DIN CABLE.


2. SENSITIVE BUT UNCLASSIFIED, ENTIRE TEXT.


3. SUMMARY AND COMMENT. BAYJI COMMUNITY LEADERS STRONGLY
WELCOMED THE PROSPECT OF NEW PROCUREMENT AND CONTRACTING
REGULATIONS IN 2007, WHICH ARE EXPECTED TO BE PUBLISHED BY
THE MINISTRY OF PLANNING AND DEVELOPMENT COORDINATION
(MOPDC). DURING THE CITY COUNCIL MEETING HELD ON MARCH 19,
COMMUNITY CHIEFS (COUNCIL MEMBERS AND INFLUENTIAL AREA
SHEIKHS) EMBRACED THE POSSIBILITY OF A MORE TRANSPARENT AND
ACCOUNTABLE CONTRACTING PROCESS FOR RECONSTRUCTION PROJECTS.
BAYJI EPITOMIZES MANY OF IRAQ,S MOST SALIENT PROBLEMS: IT IS
HOME TO A THRIVING FUEL SMUGGLING INDUSTRY AND A SIGNIFICANT
AIF AND AQIZ PRESENCE, IT SUFFERS FROM A MORIBUND ECONOMY
FURTHER WEAKENED BY DE-BAATHIFICATION, AND LITTLE TO NO
COMMUNICATION BETWEEN LOCAL AUTHORITIES AND THE PROVINCIAL
GOVERNMENT AND THE GOI. IN ADDITION, DUE TO A BOYCOTT OF THE
JANUARY 2005 ELECTION, BAYJI IS UNDERREPRESENTED ON THE
PROVINCIAL COUNCIL. HOWEVER, THE SITUATION HERE MAY NOT BE
UNIQUE. THE LACK OF A TRANSPARENT PROVINCIAL BUDGET
EXECUTION PROCESS IN 2006 NOT ONLY NEGATIVELY AFFECTED
PROVINCIAL GOVERNANCE, BUT ALSO UNDERMINED LOCAL LEADERSHIP
IN THEIR DIFFICULT STRUGGLE TO ESTABLISH THE MUNICIPAL
GOVERNMENT'S LEGITIMACY IN THE EYES OF THE POPULATION. AN
IMPORTANT KEY TO BUILDING LOCAL GOVERNANCE CAPACITY IN 2007
WILL BE THE SUCCESSFUL IMPLEMENTATION OF THE REFORMS MANDATED
BY PENDING PROCUREMENT AND CONTRACTING REGULATIONS AS
STIPULATED BY THE 2007 BUDGET LAW. END SUMMARY AND COMMENT.


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A LONG 22 MILES IN A DECENTRALIZED PROVINCE
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4. BAYJI IS LOCATED ONLY 22 MILES NORTH OF TIKRIT, THE
PROVINCIAL CAPITAL, BUT IT MAY BE 1000 MILES IN TERMS OF
PROVINCIAL POLITICS. THE VAST MAJORITY OF THE LOCAL
POPULATION BOYCOTTED THE JANUARY 2005 ELECTION, LEAVING AN
UNEVEN DISTRIBUTION OF REPRESENTATIVES ON THE PROVINCIAL
COUNCIL. FOR EXAMPLE, THE CITY OF TUZ, A KURDISH AND
TURCOMAN ENCLAVE IN THE NORTHEAST CORNER OF THE PROVINCE HAS
15 REPRESENTATIVES OUT OF 41 ON THE PROVINCIAL COUNCIL,
DESPITE COMPRISING APPROXIMATELY 13 PERCENT OF THE TOTAL
POPULATION. SIMILARLY, ALTHOUGH TIKRIT COUNTS 11 DELEGATES,
ITS POPULATION IS ONLY 14 PERCENT OF THE PROVINCIAL TOTAL.
CONVERSELY, BAYJI IS REPRESENTED BY ONLY ONE MEMBER (WHO
FREQUENTLY DOES NOT ATTEND),ALTHOUGH IT IS HAS A LARGER
POPULATION (14 PERCENT) THAN TUZ. HAMAD HAMOUD AL SHAKTI,
THE PROVINCIAL GOVERNOR, HAILS FROM BAYJI BUT IS LARGELY
INACTIVE IN THE PROVINCIAL BUDGET EXECUTION PROCESS. WHILE
THE LIST OF PROJECTS SUBMITTED TO THE PROVINCIAL COUNCIL IN
2006 WAS RELATIVELY WELL DISTRIBUTED IN 2006, IN PRACTICE THE
PERCENTAGE OF APPROVED PROJECTS HIGHLY FAVORED DISTRICTS WITH
GREATER REPRESENTATION:

--TIKRIT, 13% OF POPULATION, 33% OF APPROVED PROJECTS.
--TUZ, 13% OF POPULATION, 22% OF APPROVED PROJECTS.
--SAMARRA, 16% OF POPULATION, 3% OF APPROVED PROJECTS.
--BAYJI, 12% OF POPULATION, 7% OF APPROVED PROJECTS.
--AD DAWR, 4% OF POPULATION, 2% OF APPROVED PROJECTS.
--BALAD, 17% OF POPULATION, 15% OF APPROVED PROJECTS.


5. UNLIKE MANY PROVINCES IN IRAQ, SALAH AD DIN IS NOT
DOMINATED BY ONE KEY CITY, SUCH AS MOSUL OR KIRKUK. THERE
ARE THREE MAJOR POPULATION CENTERS ) TIKRIT, SAMARRA, AND
BALAD ) AS WELL AS MULTIPLE SMALLER COMMUNITIES SUCH AS
BAYJI, ASH SHARQAT AND TUZ. IN ORDER TO ACHIEVE A MAJORITY
ON THE PROVINCIAL COUNCIL, AGREEMENT MUST BE REACHED WHICH
SPANS A SIGNIFICANT GEOGRAPHICAL, TRIBAL, AND ETHNIC GAP.
COMMUNICATION BETWEEN DIFFERENT PROVINCIAL FACTIONS WOULD BE
DIFFICULT EVEN WITHOUT THE EXISTING ANIMOSITY, CONSIDERING
THAT REPRESENTATIVES FROM DISTANT LOCALES MUST BRAVE A
PERILOUS JOURNEY ON DANGEROUS HIGHWAYS, AND THE SPOTTY
CONDITION OF IRAQ,S COMMUNICATION INFRASTRUCTURE. AS A
RESULT, EVEN REACHING A QUORUM IN PROVINCIAL COUNCIL MEETINGS
CAN BE A SIGNIFICANT CHALLENGE (REFTEL B). THE GEOGRAPHIC
AND DEMOGRAPHIC DIVERSITY OF SAD ADD TO THE CHALLENGE BAYJI
FACES IN RECEIVING ITS SHARE OF PROJECTS.

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PROJECT IMPLEMENTATION LAGGING
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6. ON MARCH 19, THE BAYJI CITY COUNCIL MET AT THE OIL
REFINERY. REPRESENTING THE TRUE SITUATION ON THE GROUND IN
BAYJI, ONLY SIX (OF 22 TOTAL) COUNCIL MEMBERS WERE PRESENT
WHILE TWELVE INFLUENTIAL AREA SHEIKHS SHOWED. DISCUSSION

QUICKLY TURNED TO THE ISSUE OF PROJECT NOMINATIONS FOR 2007.
ON THE LIST COMPILED BY THE CITY PLANNERS (LOCAL
REPRESENTATIVES OF THE FEDERAL MINISTRIES) MANY OF THE LISTED
PROJECTS WERE FAMILIAR; SOME WERE APPROVED IN 2006 BUT WORK
WAS NOT BEGUN, OTHERS COMMENCED BUT CEASED SHORTLY
THEREAFTER. (NOTE: MUNICIPAL GOVERNMENTS DO NOT HAVE THE
POWER TO APPROPRIATE FUNDS FOR CAPITAL PROJECTS. HOWEVER,
LOCAL APPROVAL OF PROJECT LISTS IS AN IMPORTANT ) ALBEIT )
INFORMAL - STEP PRIOR TO THEIR SUBMISSION TO THE PROVINCIAL
RECONSTRUCTION AND DEVELOPMENT COUNCIL, WHICH SERVES THE ROLE
OF A PLANNING COMMITTEE BEFORE FINAL APPROVAL BY THE
PROVINCIAL COUNCIL, REFTEL. END NOTE.)

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COUNCIL MEMBERS STEP TO THE PLATE
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7. LOCAL POWER PLAYERS IN BAYJI - FORMAL AND INFORMAL ) HAVE
LONG VIEWED THE CITY COUNCIL MEETINGS AS AN OPPORTUNITY TO
AIR GRIEVANCES WITH THE CF COMMANDER ON THE GROUND INSTEAD OF
AS A LOCAL GOVERNMENT FUNCTION; ADDITIONALLY, MEETINGS WERE
OFTEN LED BY THE CIVIL AFFAIRS TEAM ON THE GROUND. HOWEVER,
DURING THE MEETING, CITY COUNCIL MEMBERS TOOK A SMALL STEP
TOWARDS THE ESTABLISHMENT OF MORE EFFECTIVE LOCAL GOVERNANCE.
ARGUING THAT THE COUNCIL HAD A RESPONSIBILITY TO APPROVE
PROJECTS WHICH WERE PRACTICAL AS WELL AS BENEFICIAL, SEVERAL
COUNCIL MEMBERS EMPHASIZED THAT SMALLER WORKS ) FOR
TECHNICAL AND SECURITY REASONS - HAD A GREATER CHANCE OF
COMING TO FRUITION. ATTENDEES ALSO STRESSED THE IMPORTANCE
OF CHOOSING INFRASTRUCTURE PROJECTS WHICH COULD BE COMPLETED
IN A TIMELY FASHION, NOTING THE DEEP PUBLIC DISENCHANTMENT
WITH ALL LEVELS OF GOVERNANCE - GOI, PROVINCIAL, AND LOCAL -
IN THE HEART OF THIS SUNNI PROVINCE.

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CONTRACTING CHALLENGES HIGHLIGHTED
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8. DELEGATES VOICED THEIR FRUSTRATION DURING THE MEETING WITH
AN INVISIBLE PROVINCIAL CONTRACTING PROCESS, DESCRIBING THE
PREVIOUS METHOD OF PROVINCIAL PROJECT CONTRACTING ) OFTEN
PERFORMED IN A BACK ROOM IN TIKRIT BY POWER PLAYERS FROM AL
ALEM (REFTEL A) ) AS UNFAIR AND DYSFUNCTIONAL. ACCORDING TO
THE ATTENDEES, SOME PROJECTS WERE NEVER STARTED, WHILE IN
OTHER CASES, CONTRACTORS DISAPPEARED (POSSIBLY FOR SECURITY
REASONS) SHORTLY AFTER BEING PAID. HIGHLIGHTING THE
DIFFICULTIES INVOLVED, COUNCIL MEMBERS CITED AN IMPORTANT
SEWAGE PROJECT (FROM 2006) FOR WHICH A QUALIFIED CONTRACTOR
COULD NOT BE FOUND. YET THE PROJECT CONTINUED TO BE APPROVED
AND FUNDING RESERVED WHICH COULD HAVE BEEN USED ON AN
ALTERNATIVE PROJECT. IN THESE CASES, LOCAL LEADERSHIP WAS
NOT ABLE TO VIEW THE SELECTION OF A CONTRACTOR OR ADEQUATELY
MONITOR PROJECT IMPLEMENTATION PROGRESS (OR LACK THEREOF).

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PROSPECT OF NEW REGULATIONS WARMLY RECEIVED
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8. DEMONSTRATIVE OF THE WEAK COMMUNICATION CHANNELS BETWEEN
ALL LEVELS OF GOVERNMENT IN IRAQ, NONE OF THE CITY COUNCIL
MEMBERS HAD ANY IDEA THAT NEW REGULATIONS GOVERNING
PROVINCIAL BUDGET EXECUTION EVEN EXISTED. AFTER A BRIEF,
INFORMAL PRESENTATION BY IPAO REGARDING THE NEW 2007 BUDGET
EXECUTION REGULATIONS, THE CITY COUNCIL MEMBERS WERE
EXTREMELY SUPPORTIVE OF THE PROPOSED CHANGES, ARGUING THAT A
REVISED SYSTEM WHICH PROVIDES LOCAL COUNCILS WITH A MEANS TO
VERIFY AND TRACK THE PROJECT CONTRACTING AND IMPLEMENTATION
PROCESS WOULD BE A SIGNIFICANT STEP FORWARD. AS ONE COUNCIL
MEMBER STATED, &WE HAVE TO KNOW WHAT THOSE THIEVES IN TIKRIT
ARE UP TO. OTHERWISE THEY WILL GIVE ALL THE CONTRACTS TO
THEIR BROTHERS.8 (NOTE: THE TUZ CITY COUNCIL RESPONDED IN A
VERY SIMILAR FASHION IN FEBRUARY WHEN BRIEFED ON THE
ANTICIPATED 2007 BUDGET EXECUTION REGULATIONS BY A PRT
REPRESENTATIVE. END NOTE.)

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COMMENT
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9. COMMENT: SALAH AD DIN IS WORKING TO ESTABLISH A KEY
FOUNDATION OF LOCAL GOVERNANCE CREDIBILITY: AN EFFECTIVE,
TRANSPARENT PROVINCIAL BUDGET EXECUTION PROCESS. ALTHOUGH
THE PROVINCIAL COUNCIL HAS RECENTLY MADE POSITIVE STEPS
RECENTLY TOWARDS ITS ESTABLISHMENT, SIGNIFICANT HURDLES
REMAIN. REFORMS IN THE PROVINCIAL COUNCIL BUILDING IN TIKRIT
- THOUGH IMPORTANT ) ULTIMATELY MATTER LITTLE IF CITIZENS ON
THE STREET IN BAYJI DO NOT SEE PROJECTS ACTUALLY CONSTRUCTED.
AN IMPORTANT STEP TOWARDS ACHIEVING GREATER PUBLIC
LEGITIMACY FOR MUNICIPAL GOVERNMENTS IN 2007 WILL BE THE
ABILITY TO INFLUENCE AND MONITOR - THROUGH GREATER INFLUENCE

IN THE PRDC AND AN OPEN BIDDING PROCESS - THE SELECTION,
CONTRACTING, AND IMPLEMENTATION OF CRITICAL INFRASTRUCTURE
PROJECTS IN THEIR COMMUNITY. ADDITIONALLY, THE ABILITY OF
THE DIRECTOR GENERALS (AND THE CITY PLANNERS WHO WORK FOR
THEM) TO MONITOR PROJECT EXECUTION ENSURES PROFESSIONAL,
LARGELY APOLITICAL OVERSIGHT.


10. AS BAYJI MOVES TOWARD MORE EFFECTIVE LOCAL GOVERNANCE,
THERE WILL CONTINUE TO BE TRIALS. MUNICIPAL GOVERNMENTS DO
NOT HAVE THE POWER OF THE PURSE (ULTIMATELY LIMITING THEIR
INFLUENCE),AND THE SECURITY SITUATION CONTINUES TO
CONSIDERABLY IMPEDE RECONSTRUCTION EFFORTS. MOREOVER, AT
LEAST UNTIL NEW ELECTIONS ARE HELD, BAYJI WILL CONTINUE TO BE
UNDER REPRESENTED ON THE PRDC AND THE PROVINCIAL COUNCIL.
SUSTAINED EFFORT BY THE PRT AND LOCAL CF WILL PROBABLY BE
VITAL TO ENCOURAGE GREATER INVOLVEMENT AND VISIBILITY ON THE
PART OF LOCAL GOVERNMENTS IN THE PROVINCIAL DECISION-MAKING
PROCESS. MOST IMPORTANTLY ) DESPITE THE TEMPTATION THAT MAY
EXIST IN SOME QUARTERS TO ELIMINATE THEM IN THE NAME OF
PROVINCIAL AUTONOMY - THE PROCUREMENT AND CONTRACTING
REGULATIONS TO BE PUBLISHED BY THE MINISTRY OF PLANNING AND
DEVELOPMENT COORDINATION (MOPDC) PROVIDE THE NECESSARY LEGAL
FRAMEWORK FOR ENSURE THE EXECUTION OF THIS VITAL REFORM. END
COMMENT.


11. PRT SALAH AD DIN WILL CONTINUE TO STRONGLY ENCOURAGE
LOCAL PARTICIPATION IN THE PROVINCIAL GOVERNMENT BUDGET
EXECUTION PROCESS IN 2007.


12. FOR ADDITIONAL REPORTING FROM PRT TIKRIT, SALAH AD DIN,
PLEASE SEE OUR SIPRNET REPORTING BLOG:
HTTP://WWW.INTELINK.SGOV.GOV/WIKI/TIKRIT.

KHALILZAD