Identifier
Created
Classification
Origin
09RIYADH1677
2009-12-28 14:57:00
CONFIDENTIAL
Embassy Riyadh
Cable title:  

IDB ADVISOR DISCUSSES AID TO GAZA

Tags:  ECON EAID PREL KWBG GCC SA GZ 
pdf how-to read a cable
VZCZCXRO6532
PP RUEHROV
DE RUEHRH #1677/01 3621457
ZNY CCCCC ZZH
P 281457Z DEC 09
FM AMEMBASSY RIYADH
TO RUEHTV/AMEMBASSY TEL AVIV PRIORITY 4874
RUEHJM/AMCONSUL JERUSALEM PRIORITY 4373
RUEHC/SECSTATE WASHDC PRIORITY 2130
INFO RUEHXK/ARAB ISRAELI COLLECTIVE
RUEAIIA/CIA WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEKDIA/DIA WASHINGTON DC
RHEHNSC/NSC WASHDC
RUMICEA/USCINCCENT INTEL CEN MACDILL AFB FL
C O N F I D E N T I A L SECTION 01 OF 02 RIYADH 001677 

SIPDIS

DEPT FOR NEA/FO, NEA/ARP, NEA/IPA
JERUSALEM FOR DEPUTY ENVOY HALE
DEPT ALSO FOR EEB/IFD/ODF (DEMARCELLUS, VAKIL); INR/NESA

E.O. 12958: DECL: 12/27/2019
TAGS: ECON EAID PREL KWBG GCC SA GZ
SUBJECT: IDB ADVISOR DISCUSSES AID TO GAZA

REF: A. RIYADH 1455

B. RIYADH 1300

Classified By: Acting DCM Lisa Carle for reasons 1.4 (b) and (d)

C O N F I D E N T I A L SECTION 01 OF 02 RIYADH 001677

SIPDIS

DEPT FOR NEA/FO, NEA/ARP, NEA/IPA
JERUSALEM FOR DEPUTY ENVOY HALE
DEPT ALSO FOR EEB/IFD/ODF (DEMARCELLUS, VAKIL); INR/NESA

E.O. 12958: DECL: 12/27/2019
TAGS: ECON EAID PREL KWBG GCC SA GZ
SUBJECT: IDB ADVISOR DISCUSSES AID TO GAZA

REF: A. RIYADH 1455

B. RIYADH 1300

Classified By: Acting DCM Lisa Carle for reasons 1.4 (b) and (d)


1. (U) This is an action request. See paragraph 8.

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


2. (C) The Islamic Development Bank (IDB),recently made
responsible for overseeing the GCC's $1.6 billion in foreign
assistance for the reconstruction of Gaza, is studying what
projects are feasible, but has yet to start any of these
projects. IDB advisor is concerned about access issues and
political uncertainty and says the U.S. could be doing more
on these. Advisor also offered to develop a system to track
construction materials if it would assuage Israeli concerns
about these materials being diverted. End summary.

No GCC funds spent yet
--------------


3. (C) On December 19, Econoff met with El Mansour Feten, an
advisor to the president of the Islamic Development Bank
(IDB),at his Jeddah office to discuss the bank's oversight
of the GCC states' $1.6 billion in reconstruction assistance
for Gaza. Feten said the IDB was studying what needs to be
done in Gaza in conjunction with partner donor agencies and
with IDB consultants in the field but stated that none of the
aid has been disbursed as of yet. He said that while the IDB
is currently designing projects based on studies, it has no
definite timetable for any of them.

Border crossings, political uncertainty are key obstacles
-------------- --------------


4. (C) Feten emphasized that Gaza's "situation" needs to be
clarified before the IDB can begin large-scale reconstruction
projects. Specifically, he identified a need to know whether
border crossings into Gaza will be open (or if partially
open, what materials would be allowed to cross). He said the
humanitarian situation should be dealt with separately from
the political concern but said he realized certain aspects of
the political process, such as Palestinian reconciliation,
were inextricably tied to Gaza reconstruction.


5. (C) Feten also said a key IDB priority was to ensure that
reconstruction efforts were conducted in a transparent manner
to prevent funds from being diverted. He added that the IDB
did this through regular audits and by working with
"friendly" governments that are transparent in their efforts
(no further info). He said the IDB was politically neutral
and that it worked with local authorities and municipalities
to accomplish its mission. (Note: Feten said explicitly
that the IDB will work with Hamas if it is the local
authority, but he denied Hamas would have a role in the
disbursement of IDB-provided reconstruction funds. This role
would be reserved for IDB contractors, partner NGOs, and the
UNDP. End note.)

U.S. image suffering as Gaza remains in ruins
--------------


6. (C) Feten made a point of noting that the U.S. image
continues to suffer throughout the region as reconstruction
efforts in Gaza lag. He noted that there is a popular
perception that if the U.S. government wanted construction
materials to get through border crossings, we would make it
happen. Interestingly, he suggested that if the Israeli
government has concerns about the end-use of construction
materials, the IDB would be willing to put in place a
tracking system using indelible markings on the materials
themselves that would allow for verification that materials
were not diverted.

Comment
--------------


7. (C) The overall tone of the meeting with Feten was
extremely positive. He was effusive in his praise of

RIYADH 00001677 002 OF 002


President Obama's efforts in the region while still quick to
emphasize that reconstruction assistance was not getting to
those who need it most. While for much of the meeting he
spoke in general terms about big-picture issues, his staff
appeared intensely focused on project-related specifics and
expressed keen interest in strengthening lines of
communication between the IDB and the USG. End comment.

Action request
--------------


8. (C) Post requests Department guidance on following up with
IDB offer to develop a tracking system to assist in clearing
materials at the Gaza border. Embassy Riyadh POC is Economic
Officer Christopher Newton. Jeddah POC is Political /
Economic Officer Dominic So.
SMITH