DEMARCHE REQUEST: IRAQI PLEDGE FOR UNAMI COMPOUND

C O N F I D E N T I A L STATE 112716 SIPDIS E.O. 12958: DECL: 10/22/2018 TAGS: PREL UNSC AORC ACABQ IZ SUBJECT: DEMARCHE REQUEST: IRAQI PLEDGE FOR UNAMI COMPOUND CONSTRUCTION COSTS Classified By: IO Acting A/S James Warlick. Reason 1.4 (b) and (d). ¶1. (C) This is an action request. The Department requests that Embassy approach the GOI at the most senior levels to urge GOI commitment to funding the costs of the new UNAMI compound in Baghdad. UN political leadership is still awaiting a response to letters sent by SYG Ban to PM Maliki, President Talabani, and FM Zebari regarding the need for a significant Iraqi pledge (at least 50 percent of costs) to fund construction. Iraqi response is required no later than October 28 in order to be considered by the UN's Advisory Committee on Administrative and Budgetary Questions (ACABQ). GOI failure to respond could erode good will among the UNSC, threatening the potential for continued protections of oil revenues and assets via the Development Fund for Iraq (DFI), as well as the long-term presence of the UNAMI. USUN reports that the issue remains highly visible at UNHQ and that SYG Ban may call PM Maliki personally to inquire as to the Iraqi pledge. ¶2. (C) Background. On July 6, 2007, the Security Council approved the Secretary-General's recommendation to construct a secure, integrated headquarters for UNAMI in Baghdad. In November, the UN estimated that construction would cost approximately 190 million USD. Around the time that this cost estimate was produced, the UN approached Iraq and requested that it contribute 50 percent, or around 100 million USD, of the construction costs. The Iraqis responded favorably to this request without making a formal commitment. On May 5, 2008, UNAMI delivered a revised construction proposal for the compound. Under this proposal, the compound would be constructed on the al-Sujud Palace complex and would cost an estimated 98.6 million USD. In a May 6 meeting with Embassy Baghdad, Iraqi FM Zebari admitted that he was the source of the GOI's promise to provide financial support for the project, but dismissed the 100 million USD figure, saying he did not know where it originated. Zebari now "personally doubted" that the GOI would make anything more than symbolic contribution to the compound. Zebari made a similar statement in a June bilateral meeting with UN officials (suggesting the GOI might contribute a "token" amount). On June 15, the Iraqi government indicated that it would be unable to lease the al-Sujud Palace complex to the UN, but instead offered to allocate 40,000 square meters of land due west of the al-Sujud Palace in the International Zone, for a period of 25 years, for the construction of the compound. The cost of the compound's construction is expected to remain the same. UNAMI and Embassy Baghdad have reviewed and endorsed the new location. Throughout the late summer and early fall, SYG Ban reached out by letter to Prime Minister Maliki President Talabani, and Foreign Minister Zebari with entreaties for action on the issue of a GOI contribution to the compound construction, but received no substantive response. At the opening of the UN General Assembly in September, this matter was discussed in President Bush's meeting with SYG Ban; Ban suggested that the GOI should shoulder 50 percent of construction costs and President Bush indicated that we would be helpful in that regard. Shortly afterward, in UN-GOI discussions on the margin of the UNGA, Zebari was reportedly "pessimistic" that the GOI would commit to any funding whatsoever. As the ACABQ meeting rapidly approaches (the opening is scheduled the week of October 27),it becomes increasingly important that the GOI formally and positively respond to requests to fund a new UNAMI compound in Baghdad with a specific dollar pledge of approximately 50 million USD. End background. ¶3. (C/rel to GOI) Embassy may draw on the following points in its discussions with the GOI: -- The UN's Advisory Committee on Administrative and Budgetary Questions (ACABQ) will meet the week of October 27 to consider a number of issues, among them funding of the needed UNAMI compound here in Baghdad. -- As you know, UNAMI's increasing efforts in Iraq have caused it to outstrip its current facility. Failure to properly house UNAMI will certainly result in degraded mission capabilities in key areas such as elections work and may jeopardize UNAMI's presence in the country. -- Member States and the UN Secretariat question why Iraq, in a time of budgetary surplus, has not yet made an initial funding pledge for the construction of this facility as would be common practice for the host nation, and given that Member States are vigorously attempting to constrain growth in the overall UN budget. -- We understand that the UN has called upon Iraq to fund an amount greater than or equal to 50 percent of total estimated costs, approximately 50 million USD. The U.S. Government fully endorses this call. -- As the ACABQ only meets for a brief window of time, it is critical that an Iraqi pledge be received by the UN no later than October 28. -- It is important to note that making a specific pledge at or above this level will have a salutary spillover impact - such a pledge will do much to generate the political goodwill necessary to achieve other crucial Iraqi objectives in the UN Security Council, specifically the extension of DFI-like immunities for Iraqi oil revenue and frozen assets. -- Should the GOI be unable to make this pledge at this time, promptly informing the ACABQ of that fact would be appropriate. RICE