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Viewing cable 08NDJAMENA519, WORLD BANK ENDS CHAD VISIT ON HIGH NOTE, POINTING TOWARD

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Reference ID Created Released Classification Origin
08NDJAMENA519 2008-11-10 13:34 2011-08-24 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Ndjamena
VZCZCXRO7511
PP RUEHGI RUEHMA RUEHROV
DE RUEHNJ #0519/01 3151334
ZNR UUUUU ZZH
P 101334Z NOV 08
FM AMEMBASSY NDJAMENA
TO RUEHC/SECSTATE WASHDC PRIORITY 6567
INFO RUCNFUR/DARFUR COLLECTIVE PRIORITY
RUEHTRO/AMEMBASSY TRIPOLI PRIORITY 0503
UNCLAS SECTION 01 OF 02 NDJAMENA 000519 
 
SIPDIS 
SENSITIVE 
 
TAGS: ECON EFIN PREL EPET IBRD UN IMF PGOV FR CD
 
SUBJECT:  WORLD BANK ENDS CHAD VISIT ON HIGH NOTE, POINTING TOWARD 
"NORMALIZATION" OF BANK-CHAD RELATIONS SOON 
 
REF:  NDJAMENA 493 
 
NDJAMENA 00000519  001.2 OF 002 
 
 
 
 
-------------- 
SUMMARY 
-------------- 
 
1.  (SBU)  The World Bank delegation finished its visit to Chad on a 
high note, if not the highest possible note, this week.  In a 
presentation to the diplomatic corps November 7 by the GOC Ministers 
of Finance and Economy and the Bank delegation head, the visit was 
portrayed as "positive" and "constructive," and Bank officials 
stressed that the Bank was still involved in projects in Chad 
outside the petroleum sector; would continue with those and consider 
new ones; and all but promised that the Bank would reopen its office 
in Chad with a permanent resident representative soon.  The Bank's 
review of Bank-funded projects, GOC performance in priority sectors, 
and public finance management discovered many "areas for 
improvement." But according to the Bank team both publicly (and 
privately) there would be an attempt to "normalize" its relationship 
with Chad in the near future.  We think that the delegation will 
recommend that the Bank re-open its N'Djamena office, thereby 
"normalizing" relations with Chad. That would be the occasion for 
the Prime Minister to plan to visit Washington, as he long has 
wanted to do. We will see later this week what the IMF delegation, 
which is already in town, can do on its end to bring Chad into 
better synchronization with the IFIs.  END SUMMARY. 
 
2.  (SBU)  Ambassador and Acting POLOFF attended a presentation late 
November 7 chaired by the GOC Ministers of Finance (Gatta Ngoulou) 
and Economy (Ousmane Matar Breme), and the head of the World Bank's 
visiting delegation, Kathryn Hollifield.  The 15-person Bank 
delegation has been here since October 26 to dialogue with the GOC 
on all aspects of the Chad-Bank relationship (reftel).  The 
delegation was joined this week by the Bank's Country Director for 
Central Africa, Mary Barton Dock, resident in Yaounde and former 
resident representative in Chad.  The meeting, called at the last 
minute, was not especially well attended, but key partners besides 
the United States -- UNDP, France, Germany, Switzerland -- were 
represented by their chiefs of assistance programs. 
 
3.  (SBU)  The Ministers and Hollifield briefed on the facts and 
findings of the visit.  The overall objective of the Bank's visit 
was "to evaluate the progress that the GOC had made in the area of 
concrete results in the priority development sectors, especially the 
areas in which the Bank had invested."  There were four specific 
objectives:  Review Bank-financed projects; evaluate progress made 
in priority sectors; evaluate the GOC's management of public 
spending, as well as the linkage between the budget, the second 
National Strategy for Poverty Reduction (NSPR), the Medium Term 
Expenditure Plan, and priority action plans of line ministries in 
terms of the execution of the 2008 budget and the preparation of the 
2009 budget; and review future plans for Bank-financed projects. 
 
4.  (SBU)  The Bank's review found many areas for improvement.  For 
example, in Bank-financed projects, the review found that the 
special accounts of completed projects had not been properly 
reconciled between the Bank and the GOC.  In Priority Sector 
performance, the Bank's scrutiny of coordination between the 
Infrastructure Ministry and the "line ministries" -- health and 
education -- revealed very high construction costs for schools and 
clinics (leading it to recommend a study of these); irregular 
payment and training of teachers; and "dispersion of responsibility" 
among the various ministries involved in Rural Development.  Also in 
Priority Sector performance, the Bank found deficiencies in the 
urban development, telecommunications, and energy (electricity) 
sectors.  Finally, on Public Finances, the Bank's review 
highlighted:  The "explosion" of civil and military salaries that 
now consume all the GOC's non-petroleum revenues; the massive GOC 
subvention of the electric company STEE and the cotton monopoly 
Cotontchad; questionable public investment practices in general; and 
the fact the nearly half of GOC spending in 2008 was outside the 
parameters of the state's own budget.  Despite all the problems they 
discovered, the Bank delegation pronounced itself satisfied with the 
cooperation of GOC officials in this review and expressed confidence 
in the ability and apparent willingness of the GOC on the working 
level to address deficiencies. 
 
---------------- 
COMMENT 
---------------- 
 
5.  (SBU)  The Bank's public posture tracked with what Barton Dock 
and Hollifield told the Ambassador privately earlier this week, as 
the delegation's work was proceeding.  We think that the delegation 
will recommend that the Bank re-open its N'Djamena office, thereby 
"normalizing" relations with Chad.  We will see later this week what 
the IMF delegation, which is already in town, can do on its end to 
bring Chad into better synchronization with the IFIs.  We believe 
 
NDJAMENA 00000519  002.2 OF 002 
 
 
that only after Chad and the Bank "normalize" relations will the 
Prime Minister plan to visit Washington.