BOSNIA: EMBASSY TO PROVIDE A MILLION EUROS FOR

C O N F I D E N T I A L SARAJEVO 002018 SIPDIS SIPDIS DEPT FOR EUR (DICARLO),EUR/SCE (HOH, FOOKS),EUR/ACE (DUNN, TEFT),S/WCI (WILLIAMSON, LAVINE),INL; NSC FOR BRAUN E.O. 12958: DECL: 09/21/2017 TAGS: PREL PGOV PHUM KCRM KJUS BK SUBJECT: BOSNIA: EMBASSY TO PROVIDE A MILLION EUROS FOR STATE PRISON PROJECT REF: SARAJEVO 1625 Classified By: CDA Judith Cefkin for Reasons 1.4 (B) and (D) ¶1. (U) After carefully reviewing our priorities and SEED funding plans, we have decided to allocate the USD equivalent of one (approximately 1.394) million euros in 2007 bilateral SEED funding to support the Bosnian government,s planned construction of a state prison. The entire project is expected to cost 14.5 million Euros. Potential pledges to date (in euros) are as follows: -- Bosnia: 3 million (up from 2 million reported in reftel) -- The Netherlands: 3.9 million -- Sweden: 2 million (down from 2.6 million reported in reftel) -- The EC: 3.5 million -- US: 1 million Total Pledges equal 13.4 million Euros, and 1.1 million Euros are still needed. ¶2. (U) At a Steering Board Ambassadors meeting, the DCM indicated our interest in funding the state prison project, but made clear that our funding, like that of the other donors, is contingent on the Bosnian government's securing of the funding shortfall. High Representative Lacjak thanked us, noting that a U.S. pledge would give the Bosnian government a boost, and expressed confidence that Bosnia would raise the remaining funds needed. We plan to inform Bosnian authorities of our conditional support ahead of a September 27 justice-sector meeting between the authorities and donors, which OHR will host. CEFKIN