Identifier
Created
Classification
Origin
08KUWAIT437
2008-04-20 10:07:00
UNCLASSIFIED
Embassy Kuwait
Cable title:  

TAKING STOCK OF INTERNATIONAL ASSISTANCE TO

Tags:  EAID PREL PGOV KU PK 
pdf how-to read a cable
VZCZCXRO2656
PP RUEHDE RUEHDIR
DE RUEHKU #0437 1111007
ZNR UUUUU ZZH
P 201007Z APR 08
FM AMEMBASSY KUWAIT
TO RUEHC/SECSTATE WASHDC PRIORITY 1253
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 1021
UNCLAS KUWAIT 000437 

SIPDIS

SIPDIS

DEPT FOR NEA/ARP AND SCA/PAB

E.O. 12958: N/A
TAGS: EAID PREL PGOV KU PK
SUBJECT: TAKING STOCK OF INTERNATIONAL ASSISTANCE TO
PAKISTAN: KUWAIT RESPONSE

REF: SECSTATE 29860

UNCLAS KUWAIT 000437

SIPDIS

SIPDIS

DEPT FOR NEA/ARP AND SCA/PAB

E.O. 12958: N/A
TAGS: EAID PREL PGOV KU PK
SUBJECT: TAKING STOCK OF INTERNATIONAL ASSISTANCE TO
PAKISTAN: KUWAIT RESPONSE

REF: SECSTATE 29860


1. The following is Post's response to questions from reftel
based on recent exchanges with Waleed Al-Bahar, Regional
Manager for Central Asian and European Countries for the
Kuwait Fund for Arab Economic Development (KFAED). (Note:
The Kuwait Fund is the GOK's foreign assistance agency. It
manages overseas development projects and administers foreign
assistance grants and loans on behalf of the GOK. Its
chairman is the Kuwaiti Foreign Minister.


2. In 2007, KFAED launched two new projects in Pakistan: the
USD 39 million Golen-Gol hydropower project and the USD 17.5
million Second Rural Electrification Project in Baluchistan
Province. KFAED also has three additional active projects in
Pakistan: the USD 62 million Secondary Transmission Lines and
Grid Stations Project in Baluchistan Project from 1996, the
USD 60 million Transmission Line from Ghazi Barotha
Hydro-electric Station Project from 1998, and the USD 30
million Lyari Expressway Project from 2005. KFAED is also
currently working with the Pakistani government to plan a
schools construction project using the USD 50 million it
committed for earthquake relief in 2005. These active
commitments significantly exceed the Fund's level of
commitments to Pakistan in each of the years prior to 2005.
Al-Bahar asserted that KFAED is eager to become more active
in Pakistan.


3. Since 1976, KFAED has committed roughly USD 380 million
to finance a total of 15 major projects in Pakistan, with a
focus on energy, water, and transportation infrastructure.
Each of these projects is financed by roughly a 50-50 mix of
grants and soft (3-4% interest) loans. KFAED cooperates with
the Government of Pakistan on all of these projects, and
sometimes jointly funds projects with the Islamic Development
Bank and the Saudi Fund. KFAED generally prefers to operate
on a bilateral basis but is willing to cooperate with other
institutions as needed.


4. Kuwait is currently providing no assistance to Pakistan
in the form of debt relief or rescheduling.


5. The Fund tries to tie as much of its assistance as
possible to purchases of host country goods and services.
While trying to control costs through international
competitive bidding, it grants a margin of preference to
local contractors and suppliers when awarding contracts.


6. Worldwide, KFAED's operations have been focused primarily
on agriculture and irrigation, transport and communications,
energy, industry, and water and sewage.

********************************************* *
For more reporting from Embassy Kuwait, visit:
http://www.state.sgov.gov/p/nea/kuwait/?cable s

Visit Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
********************************************* *
Misenheimer