INITIAL MEETING OF ECONOMIC AND ENERGY JOINT

UNCLAS SECTION 01 OF 02 BAGHDAD 000399

AIDAC
SENSITIVE
SIPDIS

DEPT FOR NEA/I, E AND EEB; PLEASE ALSO PASS TO USTR

E.O. 12958: N/A
TAGS: EINV ETRD ECON ENRG PREL IZ
SUBJECT: INITIAL MEETING OF ECONOMIC AND ENERGY JOINT
COORDINATION COMMITTEE

REF: BAGHDAD 00297

SENSITIVE BUT UNCLASSIFIED - PLEASE HANDLE ACCORDINGLY

--------------
Summary
--------------


1. (SBU) The first meeting of the Economic and Energy Joint
Coordination Committee (JCC) met under the Strategic
Framework Agreement on February 12. Five working groups were
launched on the financial sector; oil and gas; trade and
investment; electricity (new plants and investment); and
industry and private sector development. Working groups
co-chairs were introduced and instructed by Deputy Prime
Minister Barham Salih and EMIN Wall, Coordinator for Economic
Transition in Iraq, to develop work plans with near-term
goals and report to the JCC by its next planned meeting in
late March. Salih commented that the JCC would be a valuable
tool in helping Iraq develop its private sector, better
provide essential services to its people, and fulfill its
international commitments. EMIN underscored the importance of
tying JCC goals to supporting Iraq,s effort to implement the
International Compact with Iraq and the National Development
Strategy, working closely with international organizations.
End summary.

--------------
Economic and Energy JCC Launched
--------------


2. (SBU) The first meeting of the Economic and Energy Joint
Coordination Committee (JCC) under the Strategic Framework
Agreement (SFA) was launched on February 12, 2009. Deputy
Prime Minister (DPM) Barham Salih and Coordinator for
Economic Transition in Iraq (CETI) Ambassador Marc Wall held
an initial meeting to initiate the five Working Groups, which
will implement SFA goals at the technical level. Salih
commented that the JCC would be a valuable tool in helping
Iraq develop its private sector, better provide essential
services to its people, and fulfill its international
commitments. In a sign of strong GOI support for the
initiative, Iraqi Cabinet members, the Minister of Finance
and the Governor of the Central Bank, also attended. DPM
Salih and EMIN introduced U.S. and Iraqi Working Group
co-chairs, and gave instructions to:

-- meet at least monthly;
-- develop work plans and early deliverables (next six
months);
-- keep minutes of meetings and report back to the JCC by the
next planned meeting in late March.

--------------
Five Working Groups
--------------


3. (SBU) The five working groups under the Economic and
Energy JCC are:

-- Public Financial Management and Financial Issues: U.S.
Co-Chair Treasury Attache James Wallar; GOI Co-Chairs Dr.
Sihan Al Shabibi, Central Bank of Iraq in coordination with
Dr. Aziz Jaffar, Advisor to the Ministry of Finance.

-- Oil and Gas Working Group: U.S. Co-Chair Ed Parks,
Department of Energy. GOI Co-Chair: Thamir Ghadhban,
Chairman of the Prime Minister,s Advisory Board in
coordination with Mr. Hassan Al-Rufeiye, Director General,
Ministry of Oil.

-- Trade and Investment Working Group: U.S. Co-Chair Economic
Counselor Michael Dodman; GOI Co-Chair Dr. Abdulhadi
Al-Himiri, Advisor to Ministry of Trade in coordination with
Mr. Salar Mohammed Amin, Deputy Head of the National
Investment Commission.

-- Electricity Sector (Investment and New Facilities): U.S.
Co-Chair ITAO Terence Barnich; GOI Co-Chair Mr. Salam Qazzaz,
Deputy Minister of Electricity in coordination with Mr. Salar
Mohammed Amin, Deputy Head of the National Investment
Commission.

-- Industry and Private Sector Development: U.S. Co-Chair
QUSAID Director Chris Crowley; GOI Co-Chair Mr. Sami Al-Araji,
Advisor, Ministry of Industry, in coordination with Dr. Faiq

BAGHDAD 00000399 002 OF 002


Abdulrasool, Advisor to Minister of Planning.

--------------
DEC, ICI and Business Forum
--------------


4. (SBU) Both Deputy Prime Ministers are keen to engage with
the new U.S. administration. DPM Issawi previously expressed
interest in leading a delegation of Ministers to meet with
U.S. counterparts (reftel). DPM Barham Salih noted again on
February 12 his strong interest in having a Dialogue on
Economic Cooperation (DEC). He proposed the timeline of
April in Washington D.C., possibly around the time of the
World Bank/International Monetary Fund spring meetings. EMIN
noted that it was unlikely that the new administration would
have all of its sub-Cabinet appointments in place by then.
EMIN added we would do our best to schedule it as soon as
feasible. Salih responded that he would await a proposed
timeframe from the USG side. Salih also suggested a senior
U.S. business delegation visit to Baghdad, tied to the DEC,
to which EMIN responded positively. Salih also proposed that
the GOI host the next International Compact for Iraq
Ministerial in Baghdad in May.


5. (SBU) EMIN underscored the importance of tying JCC goals
to supporting Iraq,s efforts to implement the International
Compact with Iraq and the National Development Strategy,
working closely with international organizations like the
World Bank and IMF in private sector development. EMIN also
called for timely passage in the Council of Representatives
on three pending laws affecting economic engagement: the
bilateral assistance agreement, the OPIC Investment Incentive
Agreement and the Trade and Investment Framework Agreement.


BUTENIS