IRAQ COMPACT: DPM BARHAM SALIH APPROVES

C O N F I D E N T I A L BAGHDAD 001806 SIPDIS SIPDIS E.O. 12958: DECL: 05/30/2017 TAGS: ECON EAID EFIN IZ SUBJECT: IRAQ COMPACT: DPM BARHAM SALIH APPROVES SECRETARIAT FRAMEWORK SIPDIS Classified By: Economic Minister-Counselor Daniel Weygandt for reasons 1.4 (b) and (d). ¶1. (SBU) According to Deputy Prime Minister (DPM) Barham Salih,s office, the DPM has approved a UN-drafted framework for establishing a Secretariat to govern implementation of the International Compact with Iraq (ICI). DPM Chief of Staff Ahmed Salman, joined by UN and World Bank representatives, briefed econoffs and representatives from the UK, Italy, Japan and the EC May 27 on details of the plan, which was praised in most comments by attendees. Under the framework, Barham will serve as co-chair along with the UN, and the Secretariat will be staffed with Iraqi civil servants and international consultants. The Secretariat will report to the Council of Ministers. Ahmed Salman will serve as the Secretariat Director, although the entity would also hire a Chief Administrator, also probably from an international consultancy, to help with day-to-day administrative issues. ¶2. (SBU) Barham is expected to formally announce the formation of the Secretariat in Baghdad in the next few days. The DPM has also sent letters to all ministers seeking their commitment to the Secretariat and the sectoral working groups (SWGs) that will support the Secretariat,s decision-making. The EC reported they are committed to providing funding for the Secretariat, pending final confirmation from Brussels of the 2.5M euros that will fund the entity for the first year. ¶3. (SBU) Contacts at the World Bank in Baghdad also report that they have begun work on the first progress report to track GOI efforts in fulfilling the Joint Monitoring Matrix (JMM) of the ICI. They expect to submit their report to the Compact Secretariat in mid-July. They are also open to input from the USG and other missions in Baghdad. ¶4. (C) In private, Ahmed Salman dismissed concerns that a parallel process to develop a new secretariat for IRFFI, spearheaded by Minister of Planning Ali Baban, would interfere with the establishment of the ICI Secretariat. He added that DPM Salih was also not concerned. ¶5. (C) COMMENT. Ahmed Salman is widely considered to be a capable, savvy technocrat and speaks excellent English; having him at the center of the day-to-day work to implement the ICI bodes very well for the success of the process. Attaching the Secretariat to the Council of Ministers, instead of the office of an individual minister or the Prime Minisiter, should reduce opportunities for politicization of the new organization, which was seen as a concern as the Minister of Planning has increased the ministry's role in the governance of IRFFI. The framework as approved by the DPM provides a solid foundation for the Secretariat, although commitment to the process from key ministers will be essential in ensuring the new entity has the mandate it needs to effectively implement the ICI. To support the Bank,s efforts to report on ICI progress, post is prepared to provide the Bank with candid assessments, as appropriate, of GOI progress on the JMM. END COMMENT. CROCKER