UPDATE ON INTERNATIONAL COMPACT WITH IRAQ

C O N F I D E N T I A L BAGHDAD 003176

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E.O. 12958: DECL: 09/21/2017
TAGS: EAID ECIN ECON EFIN EINT EINV ENRG EPET ETRD
SUBJECT: UPDATE ON INTERNATIONAL COMPACT WITH IRAQ
IMPLEMENTATION

REF: BAGHDAD 02947

Classified By: Economic Counselor Todd P. Schwartz for reasons 1.4 (b)
and (d).


1. (C) The Iraqis have made additional progress in
implementing the International Compact with Iraq (ICI) since
post's in-depth reftel. ICI Secretariat head Ahmed Salman
(Deputy Prime Minister Barham Salih's Chief of Staff (COS))
will be moving to the United States within the month, and the
current deputy COS Sirwan Ibrahim will replace Ahmed.
Emboffs have been working with Sirwan over the past several
weeks and have found him to be forthcoming with detailed
updates on ICI implementation and eager to invite Emboffs to
observe ICI sector working group meetings. In addition, last
week Dr. Barham hired a US-educated Kurd, Mohammed Qaradaghi,
to work full-time on ICI implementation. Although Mohammed's
day job is to work on the ICI with Sirwan, he did admit that
because he lives in Dr. Barham's house--Mohammed's family
resides in Sulaymaniyah--he also works as Dr. Barham's
executive personal assistant in the evening. While these
staff changes bode well for continued support from Dr.
Barham's office for ICI implementation, the lack of any ICI
Secretariat staff remains troublesome. The Iraqi Strategic

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Review Board (ISRB) did approve on September 20 the Terms of
Reference (TOR) for the $3.4 million EC-funded grant
(administered through the International Reconstruction Fund
Facility for Iraq's (IRFFI) UN trust fund) for four UN
consultants to assist in setting up and supporting the ICI
Secretariat in its first year. EC and UN officials in

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Baghdad have estimated it could take another 6-8 weeks to
recruit and move the consultants to Baghdad.


2. (C) Sirwan now has the lead for setting up the ICI sector
working groups, and already arranged for two to meet since
assuming responsibility. On September 4 the Energy Sector
Working Group met, but both attendees came from the Ministry
of Oil. Sirwan used the meeting to review the basic tenets
of the ICI and assured Emboffs he would arrange for more
robust participation in future working groups from other
ministries, in particular the Ministry of Electricity. On
September 20 the Human Resources Development Working Group
met with Directors General and officials from the Ministry of
Planning, Ministry of Housing, Ministry of Education,
Ministry of Human Rights, and the Supreme Board of Audits in
attendance; and Deputy Prime Minister Salam al-Zubai's COS
Dhia al-Zubai. This introductory meeting also focused on
familiarizing officials with the ICI's human resources
development goals. The group agreed to use future sessions
to focus on determining the status of key initiatives and
identifying areas that need donor funding to progress. The
Security Sector Reform and Rule of Law Working Groups have
each met at least once, but Emboffs did not observe those
sessions.


3. (C) To prepare for Prime Minister Nuri al-Maliki's meeting
with UNSG Ban Ki Moon on September 22, Dr. Barham's staff
produced a joint ICI update with the UN. The 5-7 page
document will summarize key accomplishments since the July 20
Mid-Year Progress Report on ICI Implementation. In a
September 19 meeting with Emboffs, Ahmed also said he was in
the process of drafting a MOU that would define the
relationship and responsibilities between the ICI
Secretariat, the IRFFI Secretariat, and the ISRB. This MOU

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likely will be the guide for channeling ICI donor
contributions towards key priorities, and could lay the
groundwork for combining the two Secretariats.


4. (C) COMMENT: The Iraqis clearly realized they needed to
show progress for Maliki's September 22 meeting and called
the ISRB meeting yesterday in order to get the TOR approved
for the UN contractors. Post remains concerned about the
lack of Iraqi staffing for the ICI Secretariat, that the ICI
Secretariat has not been physically established, that leaders

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have not been confirmed for the sector working groups and
that working group membership or action items have not yet
been officially defined. However, the prompt replacement of
Ahmed with Sirwan will give the international community in
Baghdad continuity and Dr. Barham's hiring of Mohammed to
work full-time on ICI implementation is a step in the right
direction. END COMMENT.
BUTENIS