PM MALIKI CHAIRS ICI BAGHDAD COORDINATION GROUP

C O N F I D E N T I A L BAGHDAD 004032 SIPDIS SIPDIS E.O. 12958: DECL: 12/11/2017 TAGS: ECON EAID EFIN PGOV IZ SUBJECT: PM MALIKI CHAIRS ICI BAGHDAD COORDINATION GROUP MEETING Classified By: Economic Minister Charles P. Ries for reasons 1.4 (b/d) ¶1. (SBU) On December 10 Prime Minister Nuri Al Maliki chaired a meeting of International Compact with Iraq (ICI) Baghdad Coordination Group (BCG) to provide the international donor community with an update on ICI implementation. Maliki opened the 45 minute session by noting the difficulties facing Iraq, in particular the security challenges. He described his government's success in salvaging Iraq without going into civil war as not being possible without recent security progress. Maliki tied his remarks to the ICI by saying successfully combating terrorism and insurgents now gives Iraq some room to work on economic initiatives. He specifically cited the draft law of the hydrocarbons legislation as vital for Iraq's development and something the ICI could help further. ¶2. (SBU) Recently-arrived UN Special Representative of the Secretary General (SRSG) Steffan de Mistura expressed strong SIPDIS support for the Iraqi role in ICI implementation and said that under UN Security Resolution 1770, he believed the ICI would become even more important. De Mistura described the ICI as an "official link" for the UN country team and said the December 8 International Reconstruction Fund Facility for Iraq (IRFFI) Baghdad Donor Committee meeting called for all donor resources to be realigned with the ICI agenda. He also stressed the importance of Iraqi co-financing for development projects in IRFFI and the ICI. Finally, de Mistura said he planned to ask UN SRSG Special Advisor on the ICI Ibrahim Gambari to "come out earlier" to promote debt relief for Iraq. ¶3. (SBU) Deputy Prime Minister Barham Salih finished the official remarks by citing Iraq's recent economic achievements--increasing budget execution threefold, appreciating the dinar and curbing inflation, and pushing forward the largest budget in Iraq's post-war history. He said additional economic development will require "real" support from the ICI. He expects the ICI to turn "promises into serious projects" and to be able to move forward on debt relief. The DPM welcomed the new ICI Secretariat Director Hadi Hussein and the standing up of the Policy Planning Unit within the Secretariat. He noted the Thematic Working Groups (TWGs) have been set up and their recommendations for development projects formulated in TWG meeting will then need to be sent to the Secretariat. ¶4. (SBU) Italian Ambassador Maurizio Melani then made remarks to stress the importance of co-financing and expressed his hope that Italy's 100 million euro agricultural microloan program would not be delayed in the legislative phase. Visiting U/S Reuben Jeffery congratulated the ICI members on moving forward on the economic front since the May signing, and said he was gratified to see the ICI Secretariat established. He described the ICI as a "two-way street" in which Iraq and the international community will work together on concrete objectives. Japanese Ambassador Kenjiro Monji highlighted his country's reconstruction assistance to Iraq and made a strong pitch for the ICI Consultative Group to work out a mechanism to ensure the speedy legal and political approval of such development funding. He also said he hoped the ICI would establish a "master plan" for Iraq to reach long term strategic goals. UK Ambassador Chris Prentice made the final remarks for the meeting by describing the gathering as a "good symbol of the partnership" and said he looked forward to the ICI Secretariat becoming fully operational. ¶5. (C) COMMENT: The BCG was good marker for Iraqi progress in setting up the ICI Secretariat and its TWGs, and has set the stage for the April 2008 ICI annual meeting (possibly in Paris). Maliki chairing the meeting sent a strong endorsement for the ICI and SRSG de Mistura underscored the importance the UN places in the process. During the following reception, Econoff met the first EC-funded ICI Secretariat administrative consultant, who just arrived in SIPDIS Baghdad. Dr. Barham's main ICI staffer Mohammed Qaradaghi also confirmed the DPM's staff has decided to house the entire ICI Secretariat in the joint IZ Freedom Towers facility because office space is already being prepared there. One final administrative stumbling block is Dr. Hadi still needs to get his IZ badge, and then he will be able to work in the new ICI Secretariat office. However, we remain concerned about the level of ministerial participation in the TWGs and will monitor substantive progress. The good news is now that the ICI Secretariat has been formed, this issue can be addressed. We also recommend checking out the updated ICI website: www.iraqcompact.org. END COMMENT. BUTENIS