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Viewing cable 09KABUL1108, Afghanistan -- Eleventh Meeting of the Joint Coordination
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Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
09KABUL1108 | 2009-05-02 12:42 | 2011-08-24 01:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Kabul |
VZCZCXRO4842
PP RUEHDBU RUEHIK RUEHPOD RUEHPW RUEHYG
DE RUEHBUL #1108/01 1221242
ZNR UUUUU ZZH
P 021242Z MAY 09
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 8701
RUEHC/DEPT OF AGRICULTURE WASHINGTON DC 0125
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC 0794
RUCNAFG/AFGHANISTAN COLLECTIVE
RUEHZG/NATO EU COLLECTIVE
RUEABND/DEA HQS WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHBU/AMEMBASSY BUENOS AIRES 0023
UNCLAS SECTION 01 OF 03 KABUL 001108
DEPT FOR SRAP, SCA/FO, SCA/RA, AND SCA/A
DEPT PASS FOR AID/ANE
DEPT PASS USTR FOR DELANEY AND DEANGELIS
DEPT PASS OPIC
DEPT PASS FOR TDA FOR STEIN AND GREENIP
USOECD FOR ENERGY ATTACHE
CENTCOM FOR CSTC-A
NSC FOR JWOOD
TREASURY FOR MHIRSON, ABAUKOL, AWELLER, AND MNUGENT
COMMERCE FOR HAMROCK-MANN, DEES, CHOPPIN, AND FONOVICH
SENSITIVE
SIPDIS
E.O. 12958 N/A
TAGS: ECON EAID EFIN EAGR ETRD PGOV PREL AF
SUBJECT: Afghanistan -- Eleventh Meeting of the Joint Coordination
and Monitoring Board
REF: Kabul 1017
¶1. (U) SUMMARY. The Joint Coordination and Monitoring Board April
19:
-- approved the Finance Ministry's requests to set up task forces to
develop a financing mechanism for the ANDS and to help the GIRoA
prepare good projects in priority areas;
-- supported the Agriculture Ministry's priorities under its new
National Agriculture Development Framework but did not reach any
decision on an urgent request for aid to procure wheat seeds;
-- supported the Commerce Ministry's new priorities for promoting
private sector development;
-- received GIRoA assurances that August elections would be fair;
and
-- approved an increase in the Afghan National Police (reported
reftel).
GIRoA presentations, including assistance requests, were
refreshingly well-prepared and specific. We expect donors to
respond positively. In an encouraging milestone, a representative
of the private sector attended this JCMB meeting, apparently the
first time one has been invited. End Summary
¶2. (U) The eleventh meeting of the Joint Coordination and Monitoring
Board took place in Kabul April 19, chaired by Afghan Senior
Minister Hedayat Arsala and SRSG Kai Eide. Arsala opened the
meeting by noting that the GIRoA had taken several important steps
since the Paris aid conference last summer, including appointment of
new, effective ministers at Finance, Agriculture, Commerce, and
Interior. He thanked donors for their support and urged backing for
what he called a sustainable financing mechanism for the Afghanistan
National Development Strategy (ANDS). Eide said recent
international conferences in Moscow and The Hague showed the
international community (IC) supports Afghanistan and is focused on
the right priorities. He said agriculture and private sector
development are fundamental to the security and prosperity of the
Afghan people and that improvements are still needed in how the IC
works with the GIRoA.
----------------------------
ANDS Financing and Alignment
----------------------------
¶3. (SBU) Finance Minister Zakhilwal reiterated well-rehearsed
complaints that the ANDS faces a $22 billion "financing gap," that
donor assistance is not aligned with GIRoA priorities, that some
sectors receive "too much" aid while others too little, and that the
share of aid donors channel through the central budget has declined
despite GIRoA appeals to increase it. The JCMB approved four
proposals to address these issues, all supported by the Standing
Committee on Development on March 18:
-- Donor Missions are to assign focal points, ideally Afghan, to
ensure consistency and timely reporting on aid allocation.
-- A task force, led by the Ministry of Finance, will be set up to
develop a financing mechanism for the ANDS, including a review of
the "division of labor" among donors.
-- A task force, led by the ministries of Finance and Economy, will
be set up to develop a strategy to help the GIRoA prepare good
projects in priority areas.
-- A "peer review mechanism" will be established on a six-month,
pilot basis by the Ministry of Public Health and the Ministry of
Agriculture, Irrigation and Livestock. Its goals are to better
align donor programs with GIRoA priorities, to enhance donor
coordination, avoid ill-conceived approaches, and identify gaps in
donor funding. Donors stressed they are only approving this concept
as a pilot at this stage. SRSG Eide appealed to keep the mechanism
simple and avoid endless discussion. Zakhilwal concurred with both
points.
KABUL 00001108 002 OF 003
-----------
Agriculture
-----------
¶4. (SBU) Minister of Agriculture, Irrigation, and Livestock (MAIL)
Asif Rahimi said cereal production is expected to increase by 30 to
50 percent this year (after a sharp drop in 2008), thanks to better
rainfall. Agriculture has great potential in Afghanistan, he said,
and he has developed the National Agricultural Development Framework
(NADF) to realize this potential. Rahimi described the five top
priorities of the NADF (assistance requests in parenthesis):
-- Urgent assistance to buy wheat seeds now for distribution to
farmers in September ($32.4 million). Without endorsing Rahimi's
specific proposal, Charge informed the JCMB that the U.S. hoped to
be able to make a generous contribution in support of this priority.
(Note: Septel will recommend urgent action on one of several USG
options to support the Agriculture Minister's request, in time for
an announcement at the May 6-7 Trilateral Summit.)
-- MAIL will establish a one-stop window to facilitate lease of
government land for productive purposes ($3 million).
-- Increasing access to farm credit ($2.3 million).
-- "Change management" and reform at MAIL ($3.5 million in the first
of a three-year program.
-- The Comprehensive Agricultural and Rural Development (CARD)
facility, which aims to improve coordination among MAIL and the
Ministries of Rural Rehabilitation and Development,
Counter-narcotics, and Finance. CARD would start in the provinces
of Nangarhar, Balkh, and Badakhshan ($81 million over three years).
¶5. (SBU) The U.S. and other donors all supported Rahimi and the
priorities he has set for agricultural development. The Charge
noted that President Obama has placed emphasis on agriculture in the
new U.S. strategy for Afghanistan and that the U.S. had invited
Rahimi to Washington in May. The UK pledged aid to agriculture
valued at BPS 35 million in support of the NADF. The EC announced
aid valued at 60 million euros. And the ADB said it would fund
another irrigation project valued at $300 million and an agriculture
marketing infrastructure project valued at $30 million. Rahimi
thanked donors for their support and urged donors unable to pledge
new aid to reprogram already pledged assistance to align with the
priorities of the NADF.
--------------------------
Private Sector Development
--------------------------
¶6. (U) Minister of Commerce and Industries (MOCI) Wahidullah
Shahrani said the private sector must be the engine of economic
growth in Afghanistan. He described his five priorities for
promoting private sector development (PSD) and their associated
assistance requests:
-- Enhancing Afghan competitiveness by improving border management,
liberalizing trade policy, and reaching a new transit trade
agreement with Pakistan. Assistance request: $44.1 million for
feasibility studies and detailed design for upgrading of six border
ports.
-- Streamlining licensing and registration procedures to promote
private investment. Request: $2.5 million to establish a
comprehensive database for licenses and registrations.
-- Increasing value-added industrial processing. Request: $7.1
million for feasibility study and detailed design for industrial
parks, export processing zones, or reconstruction opportunity zones
in six potential locations.
KABUL 00001108 003 OF 003
-- Improving the legal and policy framework to promote private
investment, especially by SMEs. Request: $2.5 million to support
drafting regulations for commercial laws, and industrial policy, and
an investment policy.
-- Reforming and building capacity at MOCI and other GIRoA
institutions involved in PSD. Request: $2.6 million to reform MOCI
structure, to support the Afghan Chamber of Commerce and Industries
(ACCI), and to provide trade-related training to private
businesses.
¶7. (SBU) Shahrani noted that the GIRoA hoped to involve ACCI in all
major policy decisions affecting the business community and that,
for the first time, a representative of the private sector (though
not from ACCI) was attending this JCMB meeting. Gholam Hassanzada,
representing the Private Sector and Civil Society Enabling Council,
said Shahrani's approach was a step forward but that additional
effort to support PSD is needed. He said PSD has been neglected,
and businessmen are leaving Afghanistan and investing in other
countries because the climate here is poor. Hassanzada also
appealed to the IC to involve the Afghan private sector more in
their aid projects.
¶8. (SBU) The few donors who spoke supported Shahrani and his
priorities for PSD. The Pakistani representative said the GOP
realizes the importance of a new transit trade agreement and would
facilitate the process to negotiate one. He said bilateral Af-Pak
discussions on this issue would be held on the margins of the
Regional Economic Cooperation Conference to be held May 13-14 in
Islamabad. Co-chair Arsala closed this agenda item, saying the JCMB
has approved MOCI's priorities and the inter-ministerial committee
on PSD will work to develop projects to implement them. Shahrani
has called donors to a meeting on May 2 to follow up on his
assistance requests.
----------------
Elections Update
----------------
¶9. (SBU) Independent Election Commission (IEC) Chief Technical
Officer Najafi said all four phases of voter registration for the
August presidential election have taken place and preparations for
the 7,000 polling centers are continuing. Bids are being accepted
to produce voting materials. The GIRoA has submitted a budget for
the election to donors, with only an $18 million financing gap,
which they hope to cover soon. IEC is building public awareness and
consulting with political parties on ways to ensure transparency.
The GIRoA has invited international observers and accredited 44
national and international entities so far. Najafi noted
election-related training of police is not the IEC's responsibility
but would be coordinated with IEC. Arsala added that the members of
the Electoral Complaint Commission have been nominated and that
comprehensive efforts are underway, involving close cooperation
between the GIRoA and IC, to ensure fair elections.
-------
Comment
-------
¶10. (SBU) Most observers agreed that GIRoA preparations, including
its specific assistance requests, for this JCMB meeting were
considerably more focused than at other recent JCMB's. In
Zakhilwal, Atmar (reftel), Rahimi, and Shahrani donors interacted
with the best and the brightest in the cabinet. We expect donors
will follow through and support many if not most of the assistance
requests floated at this JCMB.
RICCIARDONE