Iraq Programs Rescission

UNCLAS BAGHDAD 000956 SIPDIS SIPDIS E.O. 12958: N/A TAGS: EAID PREL IZ REL UK SUBJECT: Iraq Programs Rescission ¶1. SUMMARY: In compliance with FY 2008 appropriations language, $76 million of prior-year Economic Support Funds (ESF) for Iraqi programs will be subject to rescission. Two key ESF programs will specifically be affected: the Provincial Reconstruction Development Councils (PRDC's),and the Infrastructure Security Protection (ISP) program. Both these programs contribute directly to the Mission's Joint Campaign Plan. We urge Washington to reconsider the decision to assign this rescission to programs in Iraq. It undermines our current efforts to build economic growth as well as our argument in favor of FY08 Supplemental funding. END SUMMARY. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Rescission Runs Counter to Sustainment of Security Gains - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ¶2. FY-08 Appropriation legislation directs a rescission of prior year Economic Support Funds. It has been determined that $76 million of this rescission is to be taken from Iraq assistance programs. Post is proposing that $10 million be removed from un-contracted funds allocated to the FY 2006S ISP program, and $66 million be removed from the FY 2007S PRDC program uncommitted funds. ¶3. The two programs affected - the Infrastructure Security Protection program and Provincial Reconstruction Development Councils - support Embassy Baghdad's Joint Campaign Plan. ISP works closely with Iraqi security forces and is directly contributing to the economic recovery of the country through hardening energy infrastructure critical sites such as oil refineries or electrical transmissions lines. Working with Iraqi security forces, thoroughfares such as the Bayji to Baghdad Pipeline Exclusion Zone are made secure. ¶4. Through the PRDC program, local provincial decision councils are empowered to employ good governance and sound acquisition procedures for the betterment of their communities. During the first year of this program, most projects undertaken were strictly infrastructure construction efforts. During this second year, we have shifted from "bricks and mortar"-type projects to community-impact economic projects such as market rehabilitation, tree nurseries, slaughterhouses, etc. Losing these funds will reduce our ability to foster economic growth in the provinces. ¶5. These programs have been important to our efforts to build economic growth in an improved security environment. In addition, we are currently engaged in a determined effort to substantiate our need for the funds requested in the FY 2008 Supplemental. We believe the decision to assign this $76 million rescission to Iraq programs undermines our current work as well as our request for Supplemental funds. We urge that this decision be reconsidered. Crocker