ID: 214294    6/28/2009 13:20    09KUWAIT639    Embassy Kuwait    UNCLASSIFIED//FOR OFFICIAL USE ONLY    09KUWAIT539|09KUWAIT555|09STATE61218    "VZCZCXRO0806 PP RUEHDE RUEHDH RUEHDIR DE RUEHKU #0639/01 1791320 ZNR UUUUU ZZH P 281320Z JUN 09 FM AMEMBASSY KUWAIT TO RUEHC/SECSTATE WASHDC PRIORITY 3573 INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 1063"    "UNCLAS SECTION 01 OF 02 KUWAIT 000639

SENSITIVE SIPDIS

STATE FOR NEA/ARP, SCA/P, EEB/IFD/ODF

E.O. 12958: N/A TAGS: PREF, EAID, PHUM, PREL, PK, KU SUBJECT: KUWAIT'S AID TO PAKISTAN

REF: A. STATE 61218 B. KUWAIT 555 C. KUWAIT 539

1. (U) This is an action request. Please see paragraph 10.

2. (SBU) Summary and Key Points ----------------------------

-- The Kuwait Red Crescent (KRC) has made preparations to provide Pakistani Internally Displaced Persons with 20,000 tents and 10,000 packages of foodstuffs, cooking utensils, blankets, and hygienic supplies. Each package is designed to supply a family of 5 for a month.

-- KRC will deliver to ICRC in August 1,200 tons of flour and 800 tons of rice.

-- KRC is currently coordinating with ICRC and Pakistani Red Crescent about aid delivery and hopes to be able to deliver aid shortly.

-- The GoK has not made any decisions about direct government to government assistance to Pakistan for IDPs.

-- The Pakistani Embassy has approached the GoK for permission to set up a bank account under the name of the Prime Minister (not the GoP or the Embassy) to collect assistance for IDPs.

-- The Kuwait Fund is waiting for the security situation to improve to sign the loan agreement for the approximately $50 million in reconstruction assistance. End summary and key points.

3. (SBU) Econcouns discussed aid to Pakistan with Kuwait Fund Regional Manager for East, South Asia & Pacific Countries Waleed Al-Bahar on June 23 and with Rashed Al-Hajri, Counselor for MFA's Asia Department and Kuwait Red Crescent President Barges Al-Barges on June 25. Econcouns thanked the Kuwaitis for their Tokyo Donors' Conference pledges and stressed that there was a separate urgent need for assistance to IDPs (ref b).

KRC ready to act ----------------

4. (SBU) Al-Barges said that the KRC had already approved funds to purchase 20,000 tents, 10,000 boxes of foodstuffs, 10,000 blankets, 10,000 boxes of hygienic materials (soaps, toothbrushes, feminine napkins, etc., and 10,000 boxes of kitchen utensils. Each box's contents would meet the needs of 5-7 people for one month and are designed to meet the International Federation of Red Cross and Red Crescent Societies standards. In addition, KRC is prepared to supply the ICRC with 1,200 tons of white flour and 800 tons of rice (in 40 kg sacks).

5. (SBU) Al-Barges explained that the KRC had started setting aside the funds when the crisis started in anticipation of an appeal by the ICRC. He had been surprised by ICRC's relative slowness in making the appeal and had written the ICRC in an effort to move things along. Currently, he said, the KRC is coordinating with the ICRC about aid delivery, but that the ICRC ""wanted to be in charge."" He hoped to be able to work out the cooperation modalities shortly. The KRC is ready to send a team to Pakistan to assess buying the items locally in an effort to speed up delivery. If the items are not available, the KRC will procure them in Kuwait, but that would add delivery time. He added that the KRC was also coordinating with the Pakistani Red Crescent on aid delivery.

GoK hasn't decided on IDP aid ----------------------------- 6. (SBU) Although Al-Barges stated that the KRC had the support of the GoK in its actions, he was not aware of any formal decision on government to government assistance. Separately, Al-Hajri confirmed that. He said that the MFA had brought the issue to the attention of the cabinet, but there had not yet been a cabinet decision on the matter. ""The cabinet has a number of issues to consider now,"" he explained.

Pakistani PM opening bank accounts ----------------------------------

7. (SBU) Al-Hajri asked whether the GoP had approached the USG seeking permission to open bank accounts in the name of the Prime Minister to collect donations from overseas Pakistanis (and others) for the IDPs. He explained that the Pakistani embassy in Kuwait had formally approached the GoK for permission to open a bank account in the name of the Prime Minister (not the GoP or the embassy). He added that the MFA had confirmed with the Kuwaiti embassy in Islamabad that the GoP had made similar requests to other countries. He said that the GoK was considering the request. Speaking personally, however, he expressed concern about the request to open the account in the name of the PM rather than the GoP and about the potential for corruption that this would entail.

Kuwait Fund Development Assistance ----------------------------------

8. (SBU) Al-Bahar explained that the Kuwait Fund had already agreed on an earthquake reconstruction project worth 14.3 million KD ($50 million) for Pakistan. The only thing delaying the start of the project, he said, was the security situation in Pakistan, which was preventing Kuwait Fund staff from travelling to the country to sign the loan agreement.

As a way to speed up project implementation, he added, the Kuwait Fund was approving procurement for the project in coordination with the GoP. The GoP could start procurement and be reimbursed by the Kuwait Fund, once the loan agreement was signed.

9. (SBU) Al-Bahar also discussed the Kuwait Fund's participation (with the Asian Development Bank, the Islamic Development Bank, and others) in the Neelum Jhelum hydroelectric project. He said that the total value of the project was about $2.2. billion and that the GoP had asked for around $600 million from Arab funds. For its part, the Kuwait Fund's share of the project would be in the range of 10-11 million KD ($38 million). The Islamic Development Bank had already sent a mission to Pakistan and a contractor had been selected. For its part, the Kuwait Fund needed to send an assessment mission to move forward, but the project was already starting. (Note: The earthquake project is the project referred to in Kuwait's $49 million Tokyo Donors' Conference pledge, which is now $50 million at current rates of exchange. The $38 million is an addition project. In earlier conversations, Al-Bahar had implied to econoffs that both projects would fulfill Kuwait's Tokyo pledge, but it appears as if he caused some confusion with regard to the units (i.e., dollars verses Kuwaiti Dinars. End note.)

Action Request ---------------

10. (SBU) Please advise as to whether the GoP has approached the USG to open a bank account in the name of the Prime Minister in order to ""collect donations"" for IDPs. Post would also appreciate any advice Department can provide to pass back to the GoK on acceding to such a request. End action request.

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