VZCZCXRO9881
PP RUEHMA RUEHPA
DE RUEHDK #0873 1901716
ZNR UUUUU ZZH
P 091716Z JUL 09
FM AMEMBASSY DAKAR
TO RUEHC/SECSTATE WASHDC PRIORITY 2728
INFO RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHAD/AMEMBASSY ABU DHABI 0093
RUCPDOC/USDOC WASHDC
RUEHLMC/MCC WASHDC
RUEHZK/ECOWAS COLLECTIVE

UNCLAS DAKAR 000873 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR AF/W, AF/EPS, EB/IFD 
TREASURY FOR RHALL AND DPETERS 
 
E.O. 12958: N/A 
TAGS: ECON EFIN PGOV ETRD EAID SG
SUBJECT:  Enlisting Senegal's New Prime Minister to Stay the MCC 
Course 
 
¶1.  (SBU) SUMMARY: In a meeting with the Ambassador, Prime Minister 
Souleymane Ndn Ndiaye expressed his willingness to build upon the 
Millennium Challenge Corporation (MCC) Compact relationship that was 
established by his predecessor.  Ndiaye showed great interest in the 
MCC initiative and assured the Ambassador that the Government of 
Senegal (GOS) is committed to this partnership.  The PM indicated 
that he will make every effort to advance the initiative to ensure 
completion of the country's proposal within the agreed upon 
timeframe.  End Summary. 
¶2. (SBU) The Ambassador described the size, scope, and ongoing MCC 
design work to the PM, who was appointed in the April 30, 2009 
cabinet reshuffle, along with the steps required to meet a September 
deadline to sign the compact.  The group of projects under 
consideration has been developed, and final feasibility studies are 
being completed.  The Ambassador explained to the PM that there will 
likely be something less than $500 million available to finance the 
projects' major irrigation and transport investments in the northern 
and southern regions of the country.  (FYI:  The focus of the MCC 
proposal will significantly increase Senegal's overall agricultural 
production capabilities and transport infrastructure.  The proposed 
projects will also address several issues such as increasing water 
management, irrigation capabilities and helping to market Senegalese 
agricultural products to local, regional and international markets, 
including the US. End FYI) 
¶3. (SBU) USAID Director Kevin Mullally underlined that USAID is 
working with the MCC to leverage this transformative investment with 
technical assistance, support for policy reform, and improved 
technologies to maximize the impact of the Compact.  The PM was 
especially interested in the administrative and logistical 
structures required to rapidly execute those contracts necessary to 
execute the compact.  He instructed his staff to make every possible 
effort to ensure a rapid start-up of the activities once the Compact 
is signed.  The PM's staff assured him that the work will be managed 
using MCC approved structures, similar to a Project Implementation 
Unit (PIU).  The work being completed will enable the PIU to issue 
Requests for Proposal soon after the compact is signed, essentially 
gaining up to a year in design time. 
¶4. (SBU) The Ambassador emphasized that Senegal's MCC scorecard 
requires a continuing need for improvement of certain indicators, 
including on health expenditure, increasing primary Education 
completion for girls, land rights and access, and fiscal policy. 
¶5.  (U) The PM took the suggestions to improve a number of the MCC 
indicators and emphasized his goal was also to improve long standing 
electricity shortages and to better manage petroleum-related price 
fluctuations. The GOS is looking to put greater emphasis on solar 
energy and other alternative energy sources, he added, especially in 
rural areas.  The Prime Minister also requested additional 
assistance to provide potable water for the population.  This issue 
is of utmost concern for the GOS, he said, and they would like 
targeted assistance especially for coastal populations where potable 
water is scarce.  Finally, the Prime Minister requested support for 
women, and for efforts that would alleviate some of their workload 
in rural areas. 
¶6.  (SBU) Comment:  Prime Minister Ndiaye had on June 5 shown an 
unexpected, but welcomed, willingness to field a series of blunt 
concerns from the core group of donors (local representatives and 
ambassadors from the International Monetary Fund, World Bank, 
African Development Bank, European Union, Resident Representatives 
as well as Germany and France, in addition to the U.S.).  The Core 
Group raised concerns ranging from delays in development projects 
caused by frequent cabinet reshuffles and the reassigning of 
responsibility for the "eastern" donors (China, India and the Middle 
East) to the newly-appointed Minister of State for International 
Cooperation, Urban and Regional Planning, Air Transport, and 
Infrastructure and son of the Senegalese President Karim Wade. 
Ndiaye's responsiveness and ready willingness to meet monthly with 
donors to address these and other issues suggests he may have the 
political will to deliver. Ndiaye will need much heft towards trying 
to dispense development assistance to an unimpressed electorate. The 
March 2009 elections have demonstrated that the SOG's efforts have 
been viewed as lacking. Bernicat