NINEWA: PROVINCIAL INVESTMENT COMMISSION OFFERS

UNCLAS SECTION 01 OF 02 BAGHDAD 002878 SIPDIS E.O. 12958: N/A TAGS: ECON EINV ETRD PGOV IZ SUBJECT: NINEWA: PROVINCIAL INVESTMENT COMMISSION OFFERS ENTHUSIASM AND LITTLE ELSE This is a Ninewa Provincial Reconstruction Team (PRT) message. Summary -------------- ¶1. (SBU) Neither the GOI nor the Ninewa Governorate have taken the steps necessary to stand up the Provincial Investment Commission (PIC). We met with an enthusiastic staff, but one comprised of people with limited experience in investment promotion and who seek from us the basic infrastructure that the GOI has failed to provide. We are prepared to offer technical assistance ) primarily through in situ training and other capacity building ) and will lobby the Provincial Government to do its part. End Summary ¶2. (U) PRT Econ section leader and Econ section staff recently met with Ninewa Provincial Investment Commission (PIC) chief Muwaffuq Younis and Deputy Chairman Ghani Sofia to discuss the current state of the PIC and future plans. The PIC has seven members (an eighth, the DG of Municipalities, was assassinated earlier in June),all of whom are either professional members of the governorate staff or academics from Mosul University. PIC Off and Running -------------- ¶3. (U) PIC members told us that they have taken a number of important steps to prepare for future investment in Ninewa. They said that the PIC is preparing to serve as a one-stop shop, for interested investors. They have met with a number of local groups and organizations that are interested in attracting investment, including the Chamber of Commerce, industrial unions/associations, and relevant offices within the provincial government. The PIC has coordinated with the Departments of Municipality and Finance on the allocation of land to potential investors. The DG of Municipality has established a special commission to identify lands outside of Mosul for possible industrial and agricultural investment. ¶4. (U) The PIC has also collected a significant amount of relevant information about the province that will be useful for potential investors. This includes a list of possible investments that the PIC submitted to the National Investment Commission (NIC). The PIC has established contact with the Chamber of Commerce to ensure that the Chamber,s information holdings can also be made available to possible investors. The PIC has already drafted an investment report request form that will help potential investors identify their information requirements. ¶5. (U) Younis claimed that the PIC is already in contact with a number of investors, both Iraqi and regional, who are looking at investments in Ninewa. Most notably, the Al-Hanna Sheikh Group, based in Bahrain, is reportedly interested at oil sector and power generation possibilities. He notes that investors remain concerned about the security situation in Ninewa, but many appear to believe the security situation is improving. The PIC is particularly interested in promoting industrial investments, and is looking into the possibility of establishing an industrial site for light and medium industries near Mosul. But Operating on a Shoestring -------------- ¶6. (U) The PIC still has no budget, nor does it have an office. All of its accomplishments have been made by PIC members using their personal resources. Both Younis and Sofia lamented their inability to secure a budget, noting that it is very difficult to present a professional and serious image to potential investors when they have to use their personal email and don,t even have a web-site. ¶7. (U) Younis told us that the PIC submitted a budget to the Ministry of Finance (MoF) to take advantage of the $1.2 million that the CoR set aside to support the investment commissions, but the request was refused. With the assistance of MNF-I liaison to the NIC, we have provided Younis with the names of several NIC staff members who have assisted other PICs in obtaining funding from the MoF. We will continue to monitor PIC efforts to obtain funds. ¶8. (U) The local government has assigned office space to the PIC in a relatively secure location in central Mosul, but Younis says that some other government offices are occupying some of the space. He says that the rest of the building needs refurbishment, and inquired about USG assistance to BAGHDAD 00002878 002 OF 002 refurbish the office. PRT officers made no commitments, but did agree to explore the possibility. Future Plans (and Needs) -------------- ¶9. (U) Younis said that they have already submitted a request for support staff that will be needed to staff the PIC as its activities ramp up. He would like to train his staff in the industrial and agricultural sectors, since these are the most desirable sectors for investments in Ninewa. He also lamented a lack of knowledge about modern investment operations and current ideas for promoting investment. He would like to send his staff to regional countries like Jordan and Bahrain to see how these countries encourage investment. Econ section chief noted that the Embassy is trying to develop workshops for PIC members to offer some training, and promised to keep Younis informed about any training opportunities that may arise. ¶10. (SBU) Comment: The members of the Ninewa PIC get high marks for their personal effort, but that alone will not enable their institution to play its designated role. Given a GOI commitment at both the national and provincial levels, we can provide added value through capacity building and technical assistance. We can augment, but not replace, that commitment. CROCKER