MAYSAN WANTS PRIVATE INVESTMENT, BUT IN WHAT?

C O N F I D E N T I A L BAGHDAD 003089

SIPDIS

E.O. 12958: DECL: 09/23/2018
TAGS: ECON EINV ETRD IZ
SUBJECT: MAYSAN WANTS PRIVATE INVESTMENT, BUT IN WHAT?

Classified By: Economic Counselor Michael J. Dodman. Reasons 1.4 (b,d)
.


(U) This is a PRT Maysan reporting cable.


1. (C/REL MCFI) Summary: In a September 20 meeting with seven
members of the Investment Committee of Maysan,s Provincial
Council,s (PC) and the head of the provincial Chamber of
Commerce, the Maysanis presented a unified plea for PRT
assistance in attracting foreign private investment to the
province, but showed remarkable naivet from a strategic
standpoint. The officials asked the PRT to arrange visits
from U.S. investors into the province so they could meet
"face-to-face," but were unable to describe how they would be
able to convince foreign businessmen to invest in Maysan.
They highlighted Maysan,s strong potential in the oil and
gas, industrial, agricultural, and tourism (to their beloved
marshes) sectors, but have clearly not developed actionable
ideas in their embryonic pursuit of outside capital. PRT
Team Leader (TL) explained the need for Maysan to develop a
targeted marketing strategy aimed at presenting advantages
and opportunities to potential investors before focusing on
issuing invitations, and offered to investigate options to
help develop provincial capacity toward this end. End
Summary.

2. (C/REL MCFI) While admittedly inexperienced in promoting
Maysan to outsiders, the PC members displayed an honest
belief that the key to foreign investment in the province is
simply bringing investors in and discussing possibilities.
The Maysanis related that they had been given permission by
the GOI to talk to outside investors, an event which likely
spurred this meeting. In trying to narrow a difficult gap of
cultural and economic understanding, TL explained that
development of a comprehensive plan and marketing approach
would be productive first steps in the process. Provincial
officials suggested that a training program, for Maysanis
involved in investigating foreign investment opportunities
and geared towards developing a viable strategy, would be an
excellent starting point.

3. (C/REL MCFI) Provincial representatives also asked for
assistance in the credit sector, explaining that the Iraqi
Trade Bank in Baghdad (which they claim is backed by J.P.
Morgan) is not focused on the south. They expressed hope
that the Trade Bank might consider opening an office in the
south to provide better credit opportunities to southern
provinces. The Maysanis also discussed a need for scientific
and engineering expertise to assist in their planning for an
"Oil City," which would be a long-term project set up to take
advantage of provincial petroleum resources to lure
energy-intensive industry to Maysan.

4. (C/REL MCFI) Comment: The Maysanis have an ambitious
vision for the economic future of the province, but their
nascent ideas show a lack of capacity to move toward the
realization of this vision. The PRT will continue to work
with the newly formed Provincial Investment Committee, and to
investigate training and other options aimed at better
enabling the province,s growth. End Comment.
CROCKER