Identifier
Created
Classification
Origin
08AMMAN3011
2008-11-04 10:55:00
CONFIDENTIAL
Embassy Amman
Cable title:
Red-Dead Feasibility Grapples with Funding Problems as
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C O N F I D E N T I A L AMMAN 003011
SIPDIS
STATE FOR NEA/ELA, NEA/RA, AND OES
STATE PASS TO USAID
E.O. 12958: DECL: 11/09/2018
TAGS: SENV EAID PGOV JO
SUBJECT: Red-Dead Feasibility Grapples with Funding Problems as
Private Sector Proposal Gains Traction
Ref: A. Amman 1882
B. Amman 409
C. Amman 228
Classified by: DCM Lawrence Mandel for reasons 1.4 (b) and (d)
C O N F I D E N T I A L AMMAN 003011
SIPDIS
STATE FOR NEA/ELA, NEA/RA, AND OES
STATE PASS TO USAID
E.O. 12958: DECL: 11/09/2018
TAGS: SENV EAID PGOV JO
SUBJECT: Red-Dead Feasibility Grapples with Funding Problems as
Private Sector Proposal Gains Traction
Ref: A. Amman 1882
B. Amman 409
C. Amman 228
Classified by: DCM Lawrence Mandel for reasons 1.4 (b) and (d)
1. (C) The World Bank led Red-Dead Feasibility Study (RDS),
grappling with a $3.5 million funding shortfall at its May 2008
launch, continues to wrestle with money-problems. Ministry of Water
and Irrigation (MWI) Assistant Secretary General (and Red-Dead
Project Manager) Fayez Bataineh told ESTH Officer on October 28 that
four Israeli specialized institutions contracted for technical
sub-studies related to environmental issues have submitted proposals
for $2 million when only $400,000 has been budgeted by the World
Bank. The Italian government announced a $2 million contribution to
the RDS in October 2008, however, according to Bataineh, Italian
government procurement rules require the proposals to be placed for
open international bidding. Bataineh noted that the funding issues
would be discussed at the November 23 Technical Steering Committee
meeting in Aqaba and expected that the RDS would likely be delayed.
Bataineh reported the World Bank is in discussions with Korea and
Sweden about additional RDS funding support, and chuckled when
suggesting a "nudge" from the U.S. would help them make a positive
decision.
Montgomery Watson Harza Proposal Gains Traction
-------------- --
2. (C) Montgomery Watson Harza (MWH),a U.S.-based global vendor of
water management and engineering services, has been promoting in the
region over the last year its own proposal for a Red Sea-Dead Sea
canal (ref A). Jordan's Water Minister Raed Abu Saud previously told
Post that Jordan would need to speed up implementation of the
Red-Dead project once the RDS was completed as he planned to engage
MWH to start a Jordan-specific implementation of the project (Ref A).
Bataineh subsequently confirmed that the MWI initiated a $3.2
million project feasibility study with MWH on October 1, based on a
Jordan-only approach. The study is expected to be completed by
February 2009 and, according to Bataineh, takes a broader perspective
than the RDS by addressing the development of economic zones along
the canal and associated financing issues. MWI is providing 80% of
the study costs from its own budget with the rest being borne by MWH.
Visit Amman's Classified Website at
http://www.state.sgov.gov/p/nea/amman
Beecroft
SIPDIS
STATE FOR NEA/ELA, NEA/RA, AND OES
STATE PASS TO USAID
E.O. 12958: DECL: 11/09/2018
TAGS: SENV EAID PGOV JO
SUBJECT: Red-Dead Feasibility Grapples with Funding Problems as
Private Sector Proposal Gains Traction
Ref: A. Amman 1882
B. Amman 409
C. Amman 228
Classified by: DCM Lawrence Mandel for reasons 1.4 (b) and (d)
1. (C) The World Bank led Red-Dead Feasibility Study (RDS),
grappling with a $3.5 million funding shortfall at its May 2008
launch, continues to wrestle with money-problems. Ministry of Water
and Irrigation (MWI) Assistant Secretary General (and Red-Dead
Project Manager) Fayez Bataineh told ESTH Officer on October 28 that
four Israeli specialized institutions contracted for technical
sub-studies related to environmental issues have submitted proposals
for $2 million when only $400,000 has been budgeted by the World
Bank. The Italian government announced a $2 million contribution to
the RDS in October 2008, however, according to Bataineh, Italian
government procurement rules require the proposals to be placed for
open international bidding. Bataineh noted that the funding issues
would be discussed at the November 23 Technical Steering Committee
meeting in Aqaba and expected that the RDS would likely be delayed.
Bataineh reported the World Bank is in discussions with Korea and
Sweden about additional RDS funding support, and chuckled when
suggesting a "nudge" from the U.S. would help them make a positive
decision.
Montgomery Watson Harza Proposal Gains Traction
-------------- --
2. (C) Montgomery Watson Harza (MWH),a U.S.-based global vendor of
water management and engineering services, has been promoting in the
region over the last year its own proposal for a Red Sea-Dead Sea
canal (ref A). Jordan's Water Minister Raed Abu Saud previously told
Post that Jordan would need to speed up implementation of the
Red-Dead project once the RDS was completed as he planned to engage
MWH to start a Jordan-specific implementation of the project (Ref A).
Bataineh subsequently confirmed that the MWI initiated a $3.2
million project feasibility study with MWH on October 1, based on a
Jordan-only approach. The study is expected to be completed by
February 2009 and, according to Bataineh, takes a broader perspective
than the RDS by addressing the development of economic zones along
the canal and associated financing issues. MWI is providing 80% of
the study costs from its own budget with the rest being borne by MWH.
Visit Amman's Classified Website at
http://www.state.sgov.gov/p/nea/amman
Beecroft