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Viewing cable 06SANAA146, DONORS CALL FOR ROYG PARTICIPATION IN EITI, OTHER

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Reference ID Created Released Classification Origin
06SANAA146 2006-01-28 11:32 2011-08-24 01:00 UNCLASSIFIED Embassy Sanaa
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SANAA 000146 
 
SIPDIS 
 
PLEASE PASS TO EB/IFD LARRY GREENWOOD, AND EB/IFD/OIA PAUL 
BROWN AND TIM HAUSER. 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON EINV EPET KMCA YM ECON COM
SUBJECT: DONORS CALL FOR ROYG PARTICIPATION IN EITI, OTHER 
IMPROVEMENTS IN BUSINESS ENVIRONMENT 
 
REF: A. 2005 SECSTATE 213244 
     B. 2005 SANAA 3610 
 
1. On January 24, post participated in the second of a series 
of ROYG-donor dialogues on governance reform objectives.  The 
meeting focused on measures to improve the business enabling 
environment in Yemen, and allowed the donors an opportunity 
to present specific reforms the ROYG could take in the next 
six months to help rebuild the confidence of foreign 
governments and international investors. (Ref B)  Post was 
joined on the donor side by the U.N., World Bank, and the 
U.K. and Netherlands Embassies. 
 
2. One of the primary donor recommendations was that the ROYG 
join the Extractive Industries Transparency Initiative (EITI) 
at the soonest possible opportunity, to encourage 
transparency in the Yemen's oil and natural gas sectors. (Ref 
A) Other reform proposals included reducing the time and cost 
of registering a business and streamlining customs 
procedures.  ROYG officials stated their intention to submit 
an official application to join EITI in June of 2006. 
 
3. U.K. representatives suggested that this timeline could be 
expedited and that the ROYG could undertake specific measures 
in the short term to demonstrate support for the initiative. 
Yemen could, for example, publish a letter of intent to the 
World Bank and IMF identifying Yemen's stakeholders in EITI, 
and could form a committee to increase understanding of the 
initiative.  The ROYG responded that such a letter is already 
under study by the Cabinet, and the Prime Minister ordered 
the formation of an EITI committee.  Cabinet endorsed 
participation in EITI as part of a reform program submitted 
separately by the World Bank. 
 
4. COMMENT:  Since Yemen's suspension from the Millennium 
Challenge Account Threshold Program, post has been looking 
for the ROYG to take specific actions to combat corruption 
and demonstrate its commitment to political and economic 
reform.  Many reform and development programs in Yemen have 
stalled due to a lack of political will, and donor benchmarks 
are designed to test the ROYG's willingness to cooperate in 
key sectors.  Participation in EITI is now one of the 
benchmarks post will use to measure progress in the coming 
months.  END COMMENT. 
Krajeski