WORLD BANK MEETING ON GUINEA, UPDATE

UNCLAS CONAKRY 000760

SIPDIS

SIPDIS

TREASURY FOR OFFICE OF AFRICAN NATIONS

E.O. 12958: N/A
TAGS: ECON PGOV EFIN GV
SUBJECT: WORLD BANK MEETING ON GUINEA, UPDATE

REF: CONAKRY


1. (SBU) SUMMARY. In a July 3 meeting with the Charge
d'Affaires and Econoff, World Bank Acting Director said that
July 4-18 negotiations with the IMF and World Bank in Conakry
to develop a draft program would provide the centerpiece for
the July 24-25 Forum in Paris. The Bank is supporting this
meeting by distributing invitations to invitees, and working
with the IMF on the elaboration of a framework for discussion
at the forum. According to the Bank official, Guinea hoped
for broad participation in this consultation and review of
its draft program with the IMF, and possibly for indications
external support in so far as that would be possible. END
SUMMARY.


2. (SBU) Charge d'Affaires and Econoff met with the Acting
Director of the World Bank, Mr. Zie Coulibaly, to discuss the
upcoming conference on Guinea to be held July 24-25 in Paris.
The Acting Director clarified that the World Bank is
assisting Guinea with the Paris forum. The senior Bank
officer in Guinea could not provide a list of participants as
invitations are being handled by the Government of Guinea.
However, Mr. Coulibaly did provide a tentative schedule for
the conference. (provided septel)


3. (SBU) Organizations currently listed as
speakers/presenters at the conference include the World Bank,
the European Commission, the Special Representative of the
European Union Presidency for the Mano River Region, the
International Monetary Fund (IMF),and the Special
Representative of the UN Secretary General for West Africa.
In addition, the Guinea Prime Minister, Lansana Kouyate, will
attend and speak.


4. (SBU) The Acting Director further stated that the IMF
negotiations with Guinea which begins tomorrow will be
conducted jointly with the Bank. These negotiations will
generate a baseline assessment of the current macroeconomic
situation in Guinea which will then be used at the Paris
conference. Mr. Coulibaly stated that the Government of
Guinea will also present a draft document at the Paris
conference outlining the countries urgent short-term needs,
such as rehabilitation of local government infrastructures,
and provision of electricity and water services. This
document will present the Government of Guinea's case within
the framework of the recent social and political events in
Guinea. The Bank, and certainly the Government of Guinea,
are hopeful that invitees will give the program a close
review and indication of how their programs and interests may
fit into the draft framework.


5. (SBU) Mr. Coulibaly stated that the structure of the
Paris meeting is to inform the donor community of the current
status of the Guinea aid program, and how each donor program
could fit into the framework as it is developed. The senior
country Bank official said that the meeting is not "formal";
however, it is not an "informal" one either. The Acting
Director said that this process should result in the
formulation of a realistic aid program, focused on the areas
of debt relief, water, electricity and local government
operations.


6. (SBU) COMMENT. While the activity of elaborating a draft
program with the IMF and World Bank and moving directly to a
consultative process in Paris is packing much into a short
period, the Prime Minister is embracing a serious process for
elaborating a framework with which, hopefully the
international community can begin working. Under the gun for
allowing the transition process to drag, movement on this
axis could help assist the broader transition process move
forward, coupled with slower but certain progress on election
processes. We believe it is in USG interest to support the
Prime Minister's initiative with appropriate representation.
END COMMENT

KAEUPER