Identifier
Created
Classification
Origin
09DAKAR429
2009-04-02 16:05:00
UNCLASSIFIED
Embassy Dakar
Cable title:  

SENEGAL HIGHLIGHTS MCC 609(G) GRANT

Tags:  EAID EFIN ECON KMCC PREL SG 
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VZCZCXRO7895
PP RUEHMA RUEHPA
DE RUEHDK #0429 0921605
ZNR UUUUU ZZH
P 021605Z APR 09
FM AMEMBASSY DAKAR
TO RUEHC/SECSTATE WASHDC PRIORITY 2178
INFO RUEHZK/ECOWAS COLLECTIVE PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHLMC/MCC WASHDC
UNCLAS DAKAR 000429 

SIPDIS

DEPT FOR EEB/IFD/OMA: JJACOBY; AF/W, AF/EPS
TREASURY FOR AFRICA DESK, OASIA/E.BARBER

E.O. 12958: N/A
TAGS: EAID EFIN ECON KMCC PREL SG
SUBJECT: SENEGAL HIGHLIGHTS MCC 609(G) GRANT

UNCLAS DAKAR 000429

SIPDIS

DEPT FOR EEB/IFD/OMA: JJACOBY; AF/W, AF/EPS
TREASURY FOR AFRICA DESK, OASIA/E.BARBER

E.O. 12958: N/A
TAGS: EAID EFIN ECON KMCC PREL SG
SUBJECT: SENEGAL HIGHLIGHTS MCC 609(G) GRANT


1. SUMMARY: Senegal's Finance Minister Aboualye Diop, with Foreign
Minister Gadio at his side, signed a USD 13.4 million Millennium
Challenge Corporation 609(g) grant to support the current Compact
development effort. The DCM told a large press contingent that we
remain hopeful that a Compact can be signed in the next five months.
Both Diop and Gadio are helpful to the MCC effort and the signing
ceremony was valuable positive publicity for two ministers awaiting
President Wade's decisions on cabinet changes in his very unpopular
government. END SUMMARY.


2. On April 1, Senegal's Finance Minister, Abdoulaye Diop, convoked
a large press contingent, including television, radio, and print
media, to record his signing of a USD 13.4 million Millennium
Challenge Corporation 609(g) grant to support the current Compact
development effort. The agreement had already been signed by the
MCC, but because of the unexpectedly public nature of Minister
Diop's signing, DCM Jay T. Smith witnessed the agreement on behalf
of the USG. Surprisingly, Foreign Minister Cheikh Tidiane Gadio
came to Finance Ministry to also participate in the ceremony.


3. In his remarks to the press, the DCM explained that the previous
effort to conclude a Compact with Senegal did not succeed, but that
this grant demonstrated the USG in general, and the MCC and the
Embassy in particular, are determined to do all we can to sign a
Compact before the end of the fiscal year. Minister Diop noted that
the current Compact proposal targets investments in important
agriculture, road, and irrigation infrastructures. FM Gadio shared
a detailed history of the efforts of both countries, and underscored
that the Senegal team needed to continue working very hard and that
the entire government would be on board to support the process.
Gadio stated that the MCC would bring not only project funding to
the country, but also provide the example of how to effectively
invest in rural infrastructure in a manner that Senegal could
emulate.


4. COMMENT: Ministers Diop and Gadio have long been among the best
informed and helpful senior GOS officials trying to keep the GOS
engaged with the MCC. They have also strongly advocated for budget
resources and administrative support for the local technical team to
fulfill its requirements (which to date it has done very well).
Even though the MCC grant will not be managed by Diop's Treasury,
the amount is newsworthy. Still, with a major cabinet overhaul
expected in the coming weeks, we suspect some of the publicity push
has to do with the two ministers demonstrating their value to
President Wade and to a broadly dissatisfied Senegalese public.

BERNICAT