SUGGESTED 2007 BUDGET ALLOCATIONS FOR LAOS UXO

UNCLAS VIENTIANE 000316 SIPDIS SIPDIS DEPARTMENT FOR EAP/MLS ED BESTIC, DEPARTMENT FOR PM/WRA (HUTCHENS/HARRIS) PACOM FOR POLAD E.O. 12958: N/A TAGS: KHDP ECON PREL MASS LA SUBJECT: SUGGESTED 2007 BUDGET ALLOCATIONS FOR LAOS UXO PROGRAM REF: HUTCHENS-ARCHIBALD EMAILS 4/10-4/17 2007 ¶1. This is an action request. Please see paragraph 6. ¶2. In 2006 PM/WRA requested post create suggested budgets for supporting the removal of Unexploded Ordnance (UXO) in 2007 based upon a number of scenarios. One of those scenarios envisioned a 25% cut to the UXO budget for Laos in ¶2007. Recently, PM/WRA informed post there would in fact be a 25% cut in the 2007 budget. ¶3. Having examined PM/WRA's current plan for FY 2007 funding, we see an opportunity to make minor changes to increase productive land clearance. International Mine Awareness Day April 5th allowed post to highlight our current position as the largest UXO donor in Laos. As there is a reasonably good chance we will lose this designation in 2007, maintaining visibility in the field becomes even more important. PM/WRA's planned FY 2007 budget Armor Group: $832,257 MAG: $248,520 UXO Lao: $932,847 National Regulatory Authority (NRA), via Armor Group: $50,000 World Education: $321,376 Norwegian People's Aid (NPA), 2 month extension: $165,000. Total: $2,550,000 ¶4. Post suggests the following budget: Armor Group: $756,676 MAG: $248,520 UXO Laos: $911,388 NRA, via Armor Group: $58,004 World Education: $298,142 NPA 2 month extension: $167,105 Swiss Foundation for Demining (FSD): $110,125 Total: $2,550,000 ¶5. Post believes our proposed budget has the following advantages: --It reallocates Armor Group's training budget to reflect current bureaucratic realities in Laos. Unfortunately, Armor Group does not yet have a signed Memorandum of Understanding with the Government of Laos (GOL). Until the MOU is signed, Armor Group is unable to provide training for the NRA and UXO Lao. The 2006 "base year" budget for Armor Group included a budget for training. In a declining resource environment, and without a signed MOU, it makes sense to push planned 2006 training forward into 2007, and budgeted 2007 training into 2008, at which point resources might not be as stretched as currently. --It funds the Swiss Foundation for Demining (FSD) through June 2008. FSD recently signed its long-delayed MOU with the GOL and has begun work on its project in Sekong Province in support of the UN's World Food Program. Having already paid the start-up costs for the project, it makes sense for us to continue funding FSD's on-the-ground clearance. --It increases our support for the National Regulatory Authority, an office post was instrumental in setting up to help oversee and improve UXO abatement in Laos. --It takes into account recent conversations with UXO Lao and World Education that indicated their ability to proceed with slightly lower levels of funding than in PM/WRA's current plan. ¶6. Action request: Post requests PM/WRA reexamine its proposed funding in light of Embassy Vientiane's proposals in order to maximize UXO clearance in FY 2007. HASLACH