UNDP ELECTION FUNDING REQUIREMENTS MET WITH USG

UNCLAS KABUL 001444

DEPT FOR S/CRS

SIPDIS
SENSITIVE

E.O. 12958: N/A
TAGS: KDEM PGOV AF
SUBJECT: UNDP ELECTION FUNDING REQUIREMENTS MET WITH USG
CONTRIBUTION


1. (SBU) Summary: USAID forwarded a much awaited cooperative
agreement (CA) to the United Nations Development Program (UNDP) for
USD $55 million, making the USG the largest donor in the
international community for the upcoming presidential and
parliamentary elections. Assuming all other international donors
meet their pledges, total funding will not only meet current
requirements, but will provide the UNDP with the critical ability to
respond to any new challenges that may arise during the election
cycle. Substantial involvement provisions have been included to
ensure proper accountability and use of funds, and UNDP ELECT
representatives in Kabul appear amenable to the new provisions.
While UNDP New York has not yet officially signed the CA, we expect
they will do so in the next few days. End Summary.


2. (SBU) This week, USAID forwarded a draft cooperative agreement
for USD $55 million to the UNDP, thus closing a funding gap which
had concerned the international donor community. At a Donor
Coordination Meeting at UNDP Kabul on June 2, the chair expressed
gratitude on behalf of the international community for the much
needed funds. The agreement makes the United States the largest
donor to the election, bringing the overall planned contribution
level to $240 million (with $120 million for the UNDP ELECT program
and the rest channeled through other implementers including IFES,
NDI, IRI, and Global Strategies). The need to channel most
elections funding through an implementer accepted by both the GIRoA
and the donor community gives UNDP a unique role in these elections.
This is further supported by unilateral instruments listed above.


3. (SBU) UNDP reports that 15 funding pledges are being finalized,
while another six are still unsigned. Aside from the United States'
funding, other existing donor commitments to date amount to $60.54
million USD, with EU funding - $47.2 million - possibly arriving as
late as August. The EU commitment is contingent upon approval by
the European Parliament, which is expected in early July. This
notwithstanding, the USG donations enable UNDP to fully implement
planned programs in support of the elections. Furthermore, the
funding permits UNDP to fully assist the IEC and other associated
bodies, while providing the UNDP with the critical ability to
respond to any new challenges that may arise during the election
cycle.


4. (SBU) The draft CA also calls for greater USG oversight to
prevent misuse of funds. Due to concerns regarding UNDP's prior
management of USAID Afghanistan funds, the Mission opted to issue a
fresh CA with several substantial involvement clauses. These
include: 1) Amending the traditional letter of credit (LOC) method
of financing by requiring additional financial documentation and USG
review and approval prior to each disbursement; 2) Prohibiting
funding for UNOPS; 3) Mandating the hiring by UNDP of an additional
dedicated financial management staff member on the project; and 4)
Requiring that all USAID funds be separately tracked and reported on
a monthly basis, and that UNDP ELECT program will not spend
financial resources beyond those not previously secured. Although
UNDP New York has not officially signed the CA, UNDP ELECT
representatives in Kabul appear amenable to the new provisions.

EIKENBERRY