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
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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
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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