SENEGAL RESTARTS MCC EFFORT WITH POSITIVE STEPS

UNCLAS DAKAR 000183 SIPDIS SIPDIS SENSITIVE STATE FOR AF/EPS AND AF/W E.O.12958 TAGS: EAID KMCA PREL ECON MCC SG SUBJECT: SENEGAL RESTARTS MCC EFFORT WITH POSITIVE STEPS REF: 07 DAKAR 2144 AND PREVIOUS ¶1. (SBU) Summary: After four years of missteps and missed opportunities, Senegal is again pursuing a Millennium Challenge Corporation (MCC) compact, with some positive initial efforts. Responding to MCC criteria for re-engagement, Senegal has established a new counterpart agency and has agreed to work together on examining the country's economic constraints with an eye to a new proposal. Prime Minister Soumare has offered his personal assurances to Charge to help keep the effort on track. End summary. A POSITIVE RESPONSE -------------- ¶2. (SBU) In a December 20, 2007, letter to President Wade, John J. Danilovich, CEO of the MCC, confirmed that Senegal remains eligible for Millennium Challenge Account (MCA) funding in 2008. Ambassador Danilovich also outlined a number of steps, with clear time-lines, that the GOS should take in order to effectively pursue a possible compact. President Wade replied positively in a January 25 letter, stating that his administration will take the steps necessary to create a proposal that meets all MCC criteria. President Wade also indicated that Prime Minister Cheikh Hadjibou Soumare will lead Senegal's effort. In a January 30 letter, the Prime Minister confirmed Senegal's willingness to pursue a compact as outlined by Ambassador Danilovich and noted that the GOS was already establishing a counterpart agency, to be headed by Mr. Ibrahima Dia, who was the number two official at Senegal's previous counterpart agency, the AMPMD. ¶3. (SBU) On February 4, Economic Counselor met with Mr. Dia to congratulate him on his appointment and to encourage him to not lose any time in standing up his organization. Dia, whom we assess in a favorable light from his time at the AMPMD, was knowledgeable, organized, and anxious to host a team from the MCC in order to outline the criteria for a new economic constraints analysis. He had already hired most of his core staff and would soon be in a fully functional office. When asked if the government had any preconceived ideas for a new compact, Dia said that there were always ideas floating around (including one we've frequently heard mentioned lately to construct rainwater retention basins). He added, however, that his mandate was to work with the MCC to consider proposals based on new analysis, not previous ideas. At the same time, he mentioned that, in his view, a compact focusing on boosting rural incomes would be of tremendous benefit to the country. PRIME MINISTER SOUMARE IS ON-BOARD -------------- ¶4. (SBU) The Charge d'Affaires met with Prime Minister Soumare on February 13 to acknowledge the positive responses sent by President Wade and the PM. The CDA underscored that the MCC is ready to work in collaboration with the GOS, but having failed to conclude a compact on two proposals after significant effort and cost, this current effort was vitally important if the GOS was indeed serious about receiving MCC funding. PM Soumare expressed his complete agreement. He demonstrated an understanding of how MCC works, confirmed the government's willingness to support the chronology that Ambassador Danilovich outlined, and offered his intention to follow the program's progress at each step. The PM also introduced Mr. Diatourou Ndiaye, Economist and Special Advisor to the Prime Minister, who is the PM's designated point-person for the MCC. Soumare said that if there were any problems with the effort that Mr. Ndiaye needs to know so that it can be reported back to the PM. COMMENT -------------- ¶5. (SBU) At this point, we are guardedly optimistic that Senegal will make a sincere effort to follow MCC guidelines and requirements in order to develop a sensible and timely compact proposal. The exchange with the Prime Minister was direct, but also positive and sincere. He offered his personal pledge to the CDA to do all he can to keep Senegal's latest, perhaps last, MCC program on track. We hope it will help that Soumare is a technocrat and not an ambitious politician caught up in "palace intrigues" as was the previous Prime Minister. The key to concluding a compact, however, will rest in the willingness of the country's most powerful players to refrain from viewing MCC funding as a potential source of lucrative deals that can benefit the inner circle. SMITH