IRAQ EXECUTIVE STEERING COMMITTEE - FEB 29

C O N F I D E N T I A L BAGHDAD 000649

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/05/2018
TAGS: ECON IZ PGOV
SUBJECT: IRAQ EXECUTIVE STEERING COMMITTEE - FEB 29


1. Summary. PM Maliki and DPM Salih co-chaired the 29
February 2008 IESC in support of the Baghdad Security Plan
(Fardh Al-Qannon). The meeting featured lengthy discussion
of steps being taken to improve electricity in Baghdad, PM
Maliki's number one priority. More optimism than usual was
sounded at the improved ability to bring a higher percentage
of Baghdad's capacity online this summer. Also discussed
were the widespread contamination of Baghdad's water supply
and the severe shortage of medicines and equipment at
Baghdad's hospitals. End Summary

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BOC Finds No Security Problems at 9 Stations
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2. Gen. Aboud, Commander of Baghdad, reported a review of
Baghdad city's nine electricity distribution stations and
found that none of the station managers stated that they
faced significant security threats. (Note. Aboud's findings
contradict previous allegations from the Ministry of
Electricity (MoE) that security threats to stations are
significantly impairing Baghdad's electricity supply. End
Note). In response to PM Maliki comments that stations
managers must be held responsible for poor performance, the
MoE indicated that he himself had made visits to the station
and had fired 7 employees for negligence and punished others
for absence. Aboud stated that his forces would coordinate
with the MoE to review the seven stations in Baghdad's
suburbs in coming weeks.

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CG Urges Diversified Imports
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3. CG Petraeus congratulated the MoE on recent efforts to
repair the major 400 KB power lines that supply Baghdad and
urged that the GoI take every step possible to diversify
electricity and diesel imports to enable Baghdad's generators
to run a full capacity this summer. CG Petraeus noted that
Kuwait diesel imports were now averaging 1 M L/day - below
the contract stipulated amount of 1.3 M, but much better than
in previous months. CG Petraeus also sounded an optimistic
note about the potential of hydroelectric generation to
improve from its current very low level given increased snow
pack in Turkey. (Comment. Iraq is suffering a tremendous
drought this year and river levels are very low. For
example, agricultural production in Erbil province is down
more than 90% from last year. End Comment).

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Holdups in Payments to Turkish Company Kartek
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4. To the dissatisfaction of DPM Salih, the MoE gave a
lengthy explanation that a lengthily bureaucratic process
within the Ministry of Finance was holding up the $4.5
million payment for already installed capacitors to Kartek, a
Turkish company that. DPM Salih labeled this an excuse and
instructed the MoE to resolve the issue immediately. (End
Comment. Unless payment is received by 31 March. Turkey will
once again cease exporting power to Iraq. Failure to pay the
Turkish electricity bill on time is a recurring problem for
the MoE. End Comment.)

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Erbil Privately Financed Generation
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5. Dr. Ahmed Chalabi, Chair of the Essential Services
Committee, stated that Erbil would be able to fully meet its
electricity needs by the summer due to the construction of
new privately financed power stations. Dr. Chalabi urged the
GoI to enter into purchase contracts with these plants and to
incentivise private sector electricity plant construction in
the rest of the country.

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Baghdad's Water Contaminated
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6. The Minister of Environment gave a report on Baghdad's
distressed water quality, noting that 90% of water is
contaminated and that hospitals had resorted to utilizing
bottled water for surgeries. The Minister noted that
decrepit infrastructure, severe contamination of Iraq's river
systems, and insufficient electricity for pumping plants were
the roots of the problem.


7. In response to comments from the Ministry of Environment
that a cholera epidemic was likely to reemerge in coming
months, Ambassador Crocker urged a preemptive wide-spread GoI
public education campaign. DPM Salih instructed the Minister
of Environment to lead a crisis committee on water
contamination and cholera with representatives of the
ministries of electricity, health, municipalities, and the
Amanat. CG Petraeus offer of assistance from the Gulf
Regional Division and the Energy Fusion Cell was warmly
received.

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Hospital News
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8. The Deputy Minister of Health gave updates on the good
progress of converting Al Karkh and Al Yarmook Hospitals into
facilities dedicated to the treatment of Iraqi Security
Forces. The Minister of Defense noted the role of the IESC
in producing the Memorandum of Understanding with the
Ministry of Health that allowed this progress.


9. The Deputy Minister of Health gave a summary of problems
facing Baghdad's hospitals, noting that many were in a state
of crisis due to insufficient resources. Among the problems
the Deputy Minister listed were a lack of:
-- specialized equipment such as CT scanners and dialysis
machines
--medical waste incinerators
--blood storage bags
--sufficient medicine and antibiotics
--fuel to run electricity generators
--a clean water supply.


10. The Deputy Minister also complained that a Ministry of
Finance cap on the number of overtime hours that can be
worked by GoI employees was affecting medical services.


11. Calling the situation in Baghdad's hospitals a crisis,
DPM Salih noted that the current Ministry of Health
officials, in place for only 2 months, are the first
competent officials to hold such positions in Iraq's history.
DPM Salih said that many of the measures put in place, such
as contracting caps on medical purchases and overtime hours,
put in place previously must be removed. DPM Salih told the
Deptuy Minister that he and Dr. Chalabi would meet with him
the following day to address these problems.

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Security for Shia Pilgrimage Lauded
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12. CG Petraeus congratulated the GoI and the Baghdad
Operations Command for the relatively successful mass Abra'en
pilgrimage that took place last week in Karbala. CG Petraeus
noted that an estimated 10 million Iraqis visited the city
and that only one major security incident took place (the
suicide bombing in Iscandariyah). Gen Aboud stated that not
just the quantity of security forces improved, but also their
quality as new techniques were used at checkpoints, in body
searches and by snipers.
CROCKER