FOMILENIO APPOINTS NEW PERMANENT EXECUTIVE DIRECTOR

UNCLAS SAN SALVADOR 001386 SENSITIVE SIPDIS PASS TO MILLENNIUM CHALLENGE CORPORATION E.O. 12958: N/A TAGS: KMCA EAID ECON ES SUBJECT: FOMILENIO APPOINTS NEW PERMANENT EXECUTIVE DIRECTOR ¶1. (SBU) Summary. The FOMILENIO Board of Directors December 10 selected interim Executive Director Jose Angel Quiros as the new permanent Executive Director for the Salvadoran Millennium Challenge Corporation (MCC) Compact implementing entity. Quiros has broad experience in road construction and infrastructure development, including five years as Salvadoran Minister of Public Works in the Flores Administration. Quiros replaced FOMILENIO's first Executive Director Juan Jose Llort in October after increasing criticism for delays in the Compact's implementation. In his two months as interim Executive Director, Quiros has made a positive impact. With his new status, he will have additional time to get infrastructure projects moving before the end of the Saca administration in June 2009, which will be crucial as most of the Board members are likely to change at or before that time. End Summary. Slow Progress Called for Leadership Change -------------- ¶2. (SBU) There was increased criticism (particularly strong in private) for the slow pace of implementing the MCC Compact. Only $12.5 million of the originally projected $43 million was disbursed in the first year after the Compact entered into force. This prompted the first Executive Director for FOMILENIO (the Salvadoran implementing entity for the MCC Compact) Juan Jose Llort to resign, effective October 1, 2008, for "personal reasons." Jose Angel Quiros, an alternate member of the FOMILENIO Board of Directors representing the private sector, was one of two candidates nominated to serve as interim Executive Director for the period of October 1 - December 31, 2008. Quiros was selected as the interim Executive Director, based on his extensive experience in road and infrastructure development. He had served for five years in the President Flores Administration as the Minister of Public Works (MOP). During that time, he oversaw the greatest amount of infrastructure development in the country's history. He also earned a reputation as one of the best members of the Flores cabinet, reducing the bloated MOP bureaucracy from nearly 8,000 to about 800 employees. ¶3. (U) Quiros was one of over 200 applicants for the permanent Executive Director position. FOMILENIO undertook an open and competitive process to select the permanent Executive Director. It authorized a selection committee, which controlled the process. The selection committee was composed of government and civil society members, including NGO and private sector FOMILENIO Board members, and a representative from the Board's non-governmental Advisory Council, who also sits on the National Development Commission. ¶4. (U) The position was publicly advertised and an HR consultant was used to narrow the 200 plus candidates to a field of 19. All 19 candidates were interviewed and subjected to psychometric tests administered by the HR consultant. A second round of interviews of the four finalists was conducted by the selection committee. On December 10, at its regular meeting, the Board accepted the selection committee's recommendation to appoint Quiros as the permanent Executive Director. The press positively reported on the openness of the selection process. Comment -------------- ¶5. (SBU) Since joining FOMILENIO in October, Quiros has demonstrated much greater leadership than his predecessor, improved FOMILENIO's management and picked up the pace of program implementation. He will have to demonstrate continued progress to retain his position when the new administration takes office in June ¶2009. The new government will likely replace all four of the government representatives (and their alternates) on the FOMILENIO Board. Though not selected by the Government, the three civilian voting board members and their alternates are also scheduled for possible rotation in early 2008. This change, and the associated potential loss of institutional memory, will make continuity of the Executive Director position an important factor, one which has the potential to make or break El Salvador's chances to fully complete all MCC-funded projects prior to the end of the Compact term in September 2012. GLAZER