USDA SUPPORT SOUGHT FOR ADEN HOSPITAL FUNDING

C O N F I D E N T I A L SANAA 000385

SIPDIS

DEPT PASS TO USDA FOR DEPUTY ADMINISTRATOR SHEIKH
DEPT FOR NEA/ARP AMACDONALD AND EEB/TPP/MTAA WCRAFT
RIYADH FOR USDA REGIONAL DIRECTOR TAL-SAFFY
DEPT PASS TO USAID FOR ME/MEA CKISCO

E.O. 12958: DECL: 02/24/2020
TAGS: EAID EAGR SOCI PREL PGOV SA YM
SUBJECT: USDA SUPPORT SOUGHT FOR ADEN HOSPITAL FUNDING

REF: A. 09 SANAA 1832

B. SAFFY-AGHBARY E-MAIL 1/20/10

C. SAFFY-AGHBARY TELCONS 10/09-12/09

D. SAFFY-AGHBARY E-MAIL 2/3/10

Classified By: Ambassador Stephen A. Seche for reasons 1.4(b) and (d).


1. (U) This is an action request: see paragraph two.


2. (U) ACTION REQUEST: Post requests that USDA confirm its
readiness to allocate USD 3.6 million in existing USDA food
aid to Yemen to fund a complete renovation of the Aden
Hospital (locally referred to as al-Gomhory Hospital).


3. (C) The Aden Hospital, the main public-health facility in
a governorate that includes millions of under-served rural
and urban residents, has become a symbol of the central
government's neglect of basic social services in the
politically charged area of southern Yemen (REF A). The
hospital will benefit greatly from a major renovation package
that includes a structural overhaul and new medical
equipment. The USD 3.6 million, which post understood had
been approved by USDA for the hospital is just the kind of
quick-impact, high-profile project that could significantly
contribute to USG development goals in Yemen and improve the
U.S. image - and increase our influence - in a critically
important part of the country. USDA assistance for the
hospital, using uncommitted funds sitting in ROYG Social Fund
for Development (SFD) accounts, could be announced as a
deliverable as part of the recently inaugurated Friends of
Yemen process, placing the U.S. at the forefront of the
international donor community's efforts to address Yemen's
pressing development needs.


4. (SBU) Echoing comments made by senior government officials
over the past six months, Vice-Minister of Planning and
International Cooperation (MOPIC) Hisham Sharaf told EmbOffs
on February 17 that funding for the hospital was one of the
ROYG's top development priorities. "Funding for the Aden
Hospital is MOPIC's main development goal for the south now
and is also our most important priority for using USDA
money," Sharaf told EmbOffs. Sharaf stressed MOPIC's strong
preference that the 3.6 million be used to fund the Aden
Hospital renovation (REFS B and C),rather than reallocated
to food security projects (REF D). "We have plenty of food
security money coming from the Germans and others; what we
don't have is large sums dedicated to basic social services
such as the hospital."


5. (C) Comment. Post coordinated closely with Riyadh-based
USDA Regional Director throughout this process and had
understood (REF B) that the Aden Hospital renovation project
enjoyed his support and that of USDA itself. On that basis,
we informed senior ROYG officials of our intention to proceed
with the project. The personal physician of Yemeni President
'Ali Abdullah Salih was consulted as part of advancing the
project and he subsequently briefed the understood intentions
of USDA to President Salih as well as composed the necessary
tender specifications to move forward with the renovation.
The views of the Deputy Minister of Planning and
International Cooperation reported above further reflect the
importance the ROYG attaches to this project, and the
satisfaction with which it has received our pledge of
support. If we are forced to withdraw this support now, it
will call into question our reliability as a development
partner and severely undermine our credibility with the host
government. The Aden Hospital renovation presents us with a
unique opportunity to provide tangible evidence of our
commitment to government efforts to address the long-standing
needs of its southern population and, in the process,
strengthen Yemen's unity. We can achieve this outcome, which
is very much in our national interest, with strong USDA
support. End Comment.
SECHE