Identifier
Created
Classification
Origin
07BAGHDAD2947
2007-09-03 15:18:00
CONFIDENTIAL
Embassy Baghdad
Cable title:  

INTERNATIONAL COMPACT WITH IRAQ'S SLUGGISH

Tags:  EAID ECIN ECON ENRG EPET ETRD IZ PREL 
pdf how-to read a cable
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RR RUEHBC RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #2947/01 2461518
ZNY CCCCC ZZH
R 031518Z SEP 07
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 3164
INFO RUCNRAQ/IRAQ COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 002947 

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E.O. 12958: DECL: 09/03/2017
TAGS: EAID ECIN ECON ENRG EPET ETRD IZ PREL
SUBJECT: INTERNATIONAL COMPACT WITH IRAQ'S SLUGGISH
IMPLEMENTATION

Classified By: Economic Minister Charles P. Ries for reasons 1.4 (b) an
d (d)

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 002947

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SIPDIS

E.O. 12958: DECL: 09/03/2017
TAGS: EAID ECIN ECON ENRG EPET ETRD IZ PREL
SUBJECT: INTERNATIONAL COMPACT WITH IRAQ'S SLUGGISH
IMPLEMENTATION

Classified By: Economic Minister Charles P. Ries for reasons 1.4 (b) an
d (d)


1. (C) Summary: Iraqi implementation of the International
Compact with Iraq (ICI) is in danger of losing momentum
following its May 3 launch. The GoI named a director on May
28 to its ICI Secretariat, but has not staffed the
Secretariat, nor formed most of the ICI working groups. The

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international community has offered technical assistance, and
the upcoming UN General Assembly in September and the World
Bank and IMF meetings in October should provide opportunities
to encourage implementation. We are actively engaging the
GoI on these issues and also have offered our assistance.
End summary.

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Status of ICI Secretariat Implementation
--------------


2. (C) After the May 3 launching of the ICI, the Iraqi
government announced on May 28 its formation of the ICI
Secretariat. The ICI Secretariat is the key entity

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implementing the ICI; it is responsible for establishing and
monitoring the sectoral working groups; will provide
administrative and technical support to the ICI Executive
Committee; and is responsible for reporting both GoI progress
against ICI benchmarks as well as reporting on the
international community's performance in meeting ICI
commitments. During a working level meeting with the Baghdad
Coordinating Group (Iraq Consultative Group members in
Baghdad) on August 23, ICI Secretariat Director Ahmed Salman
(DPM Barham Salih's Chief of Staff (COS)) and the World Bank
Iraq Country Manager Simon Stolp admitted that so far the GoI
had made no progress in setting up the ICI Secretariat other
than naming its director on May 28.


3. (C) Realizing he needed to make more progress in
increasing Iraqi staffing, Mr. Ahmed established a ICI
Secretariat task force of his fellow COS' in the government


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in July, right around the time of the release of the July 20
ICI Mid-term Progress Report. This task force currently
includes himself, Deputy Prime Minister Salaam Zowbaie's COS
Dhia al-Zowbaie, and National Security Advisor Mowafaq
Rubaie's COS Amer al-Mosawii. Mr. Dhia also will monitor
the establishment of certain working groups and Mr. Amer will
deal with security-related issues. Mr. Ahmed has asked for a
representative from Prime Minister Nuri al-Maliki's office,
which has yet to respond. The ICI Secretariat will have two
main bodies, the policy and administration units, with the
policy unit comprised of Iraqi officials and the
administration unit initially made up of international
contractors. Both Mr. Ahmed and Mr. Stolp have stressed to
Emboffs that the GoI is becoming more involved in assessing
the quality of international contractors provided for ICI
implementation.


4. (C) The European Commission (EC) is funding four ICI
Secretariat international contractor positions for one

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year--two administrators, a database manager, and a website
designer--to the tune of 2.5 million euros (approximately
$3.4 million). This EC funding is being channeled through
the Iraq Reconstruction Fund Facility for Iraq (IRFFI) and is
being administered by the UN. It will take at least another
two months before the UN contractors are in place in Baghdad
because the UN and Mr. Ahmed are still discussing the Terms
of Reference for the positions. The Italian Embassy in
Baghdad also has provided an electricity specialist for six
months to the ICI Secretariat. The ICI Secretariat will be
located in the joint Iraqi-US Freedom Towers complex in the
IZ, but in the absence of staff, setting up the physical
office space is not possible.

--------------
Lack of ICI Sectoral Working Group Formation
--------------


5. (C) The GoI will be hardpressed to set up all the required
sectoral working groups (WG) without a functioning ICI
Secretariat. Mr. Ahmed said that as of August 23, he has

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identified heads for all the WGs, but the ICI Executive
Committee still needs to approve the names before the WGs are
officially established. Once complete, the GoI can proceed
to fully staff the WGs and develop the action plans for each
sectoral WG (which is mandated to occur within twelve months
of the ICI launch). So far only two WGs have actually met:
the Security Sector Reform WG and the Rule of Law WG. The
Security Sector Reform WG was scheduled to have another
meeting the last week of August and one representative from
the World Bank and UN was invited to attend the last 30
minutes. However, the meeting was postponed at the last
minute. The Rule of Law WG has met because the current

BAGHDAD 00002947 002 OF 002


membership is a holdover from a previous international
initiative in the area. The Energy WG is scheduled to meet
on September 4. Some of the key WGs that have yet to be
officially formed encompass these areas: human development,
government reform, and agriculture.


6. (C) The Energy WG formation could be problematic because
Mr. Ahmed, with World Bank encouragement, appears to favor
subdividing it between electricity and oil. Although Dr.
Barham told Economic Minister Charles Ries in an August 26
meeting that this WG would approach energy with one master
plan, Mr. Ahmed and the World Bank on August 23 told the
Baghdad Coordination Group they envisioned the WG first
developing a "least cost electricity plan" that is achievable
in the short run. In an August 27 meeting with Emboffs, Mr.
Stolp privately confirmed this was the World Bank's proposed
way to support the Energy WG. His rationale was that the
Ministry of Electricity was easier to deal with, and that
there already is a "National Energy Committee" that meets
bimonthly for macro energy issues. (COMMENT: The ICI itself
is not clear on this issue; it calls for the Energy WG to
develop both an Energy Sector Master Plan and a least cost
development plan for the electricity sector. END COMMENT)

--------------
Joint Monitoring Matrix Database Status
--------------


7. (C) The ICI requires a Joint Monitoring Matrix (JMM) be
developed to assess how both Iraqi and donor communities are
reaching ICI benchmarks and commitments. A temporary
(Excel-based) database was created in July to create an
initial storehouse for this information. The EC volunteered
in August to fund the JMM database and has an international
developer under contract to do so. The ICI Secretariat was
given four possible database options, and in late August
decided on one that should be web-based. Further progress
depends on the ICI Secretariat hiring two Iraqi information
technology advisors to assist the EC contractor.

--------------
Key Upcoming ICI Meetings
--------------


8. (C) The GoI could report progress in ICI implementation at
three upcoming meetings prior to the end of the year. There
are plans for PM al-Maliki and UNSG Ban Ki Moon to jointly
chair a meeting covering ICI progress among other things on
September 22. The ICI Secretariat needs to provide a short
update to the 20 July ICI Mid-term Progress report and likely
will call for commitments on debt relief. There also is
discussion of an ICI meeting during the annual World Bank and
IMF conference in Washington this October; this also would
necessitate an additional ICI update report. Finally, the
GoI had committed to releasing an end of year report in
December to document implementation progress.

-------------- --------------
Our ICI Concerns and US Embassy Baghdad's Action Plan
-------------- --------------


9. (C) Implementing the ICI under Iraqi ownership is a
critical component of building government capacity for
sectoral reform and prioritizing donor countries
contributions. Losing the momentum following the May 3 ICI
launch is problematic because the international community
cannot push ICI implementation by itself. Truly effective
WGs will need to be led and staffed by Iraqis, with some
initial international technical assistance from international
contractors. Emboffs will continue to use the Baghdad
Coordination Group meetings to reinforce the need for Iraqi
ownership. Washington agencies can help by encouraging Iraqi
implementation of the ICI. A separate issue is how the
Energy WG will evolve and if it will be subdivided. EMIN
Ries has already outlined to Dr. Barham the USG's preference
for one working group that will produce one master energy
plan for Iraq. Emboffs will continue to liaise with the
World Bank presence in Baghdad and Mr. Ahmed to follow the
formation of this WG and offer diplomatic assistance, if
necessary.


10. (C) Our immediate concern is to set up the ICI
Secretariat office. Without a functioning Secretariat, the

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GoI will find it difficult to implement the ICI. EMIN
proposed USG temporary assistance to set up the office until
the four UN ICI Secretariat administrative contractors
arrive, expected by November. We sent a formal offer to Dr.
Barham's office on August 27, and we await his response.
CROCKER