VZCZCXRO9211
PP RUEHDU RUEHGI RUEHJO RUEHMR RUEHPA
DE RUEHDS #0659/01 0651320
ZNR UUUUU ZZH
P 061320Z MAR 06
FM AMEMBASSY ADDIS ABABA
TO RUEHC/SECSTATE WASHDC PRIORITY 9426
INFO RUEHZO/AFRICAN UNION COLLECTIVE
RUEHRL/AMEMBASSY BERLIN 0329
RUEHCP/AMEMBASSY COPENHAGEN 0409
RUEHNY/AMEMBASSY OSLO 0713
RUEHTC/AMEMBASSY THE HAGUE 1197
RUEHKO/AMEMBASSY TOKYO 0491

UNCLAS SECTION 01 OF 03 ADDIS ABABA 000659 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR AF/RSA AND S/P. 
USAID FOR STEVE PIERCE. 
 
E.O. 12958: N/A 
TAGS: PREL EAID KPKO AU
SUBJECT: COORDINATING PARTNER SUPPORT TO THE AFRICAN UNION 
 
 
SENSITIVE BUT UNCLASSIFIED.  NOT FOR INTERNET DISTRIBUTION. 
 
¶1. (SBU) Summary:  The African Union's (AU) profile continues 
to rise in the international community as the AU strives to 
build the capacity to proactively address challenges on the 
continent.  To further mutual objectives, the AU and 
Addis-based donors/partners are working to enhance 
coordination of AU capacity building and programmatic 
assistance through a new Development Cooperation Review Forum 
(DCRF).  The DCRF will meet regularly to review AU support 
requirements and the status of AU institutional 
transformation.  Some partners will progress toward pooled 
funding and technical assistance, but note that the AU is not 
currently able to absorb direct budgetary support. 
Coordination for AU peace support operations will continue to 
operate parallel to DCRF structures.  The DCRF provides a 
structured dialogue with the AU, giving the AU more financial 
reliability and partners a forum to monitor and promote 
needed institutional reforms.  The DCRF next meets on March 
¶8.  This is an action request.  Please see paragraph 14.  End 
summary. 
 
------------------------------------ 
AU WORKING TO GET ITS HOUSE IN ORDER 
------------------------------------ 
 
¶2. (SBU) The AU continues institutional transformation, 
reflecting a conscious effort to eliminate vestiges of the 
OAU and instead equip the AU with the tools for proactivity. 
The 2006 AU budget devotes 9.4 million dollars to 
institutional transformation, which is one of four priority 
pillars for action.  A portion of the institutional 
transformation process calls for updating financial, 
administrative, communications, human resources, and 
management structures.  An institutional assessment funded by 
AU partners has revealed serious shortfalls for AU attention. 
 AU Commissioner for Social Affairs Bience Gawanas, charged 
with overseeing institutional transformation, notes that AU 
member states and the international community expect action 
from the AU, but it is challenging to simultaneously act 
effectively and build comprehensive institutional structures. 
 
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AU BUDGET 
--------- 
 
¶3. (SBU) AU member states approved a 60.2 million dollar 
program budget and 69.4 million dollar operational budget for 
¶2006.  The program budget is to be paid by voluntary member 
state contributions and development partners.  The 
operational budget is to be paid by assessed contribution of 
the 53 member states, though Nigeria, Libya, Egypt and South 
Africa together pay 75 percent of the total.  Thirteen AU 
member states are under sanction for failing to pay assessed 
contributions in 2005. 
 
¶4. (SBU) Although African ownership concerns prompt the AU 
Commission to request that partners contribute only to 
programs and within budget amounts approved by member states, 
slow or delinquent member state payments virtually paralyze 
AU ability to undertake critical programs.  According to the 
AU Deputy Chairperson, the AU's lack of adequate budget 
planning processes results in unrealistic cost estimates for 
various programs.  These realities have driven the AU 
Commission to accept partner assistance for member state 
approved programs beyond currently-approved budget lines. 
 
¶5. (SBU) Some member states, such as South Africa, have 
pushed for a unified AU budget to be covered by member 
states.  Under this formula, partner contributions would be 
extra-budgetary, but still based on a prioritized plan of 
activities.  Some member states  want to see a multi-year 
budget, which would also give partners greater ability to 
plan support in accordance with clear African priorities for 
the institution.  Partner support for missions such as AMIS 
in Darfur is currently extra-budgetary, although the AU 
encourages partners to develop a peace support fund similar 
to the 250 million euro African Peace Facility sponsored by 
the EU. 
 
----------------------- 
HARMONIZING INTERACTION 
----------------------- 
 
ADDIS ABAB 00000659  002 OF 003 
 
 
 
¶6. (SBU) To reduce transaction costs, provide a strategic 
forum for discussion, enhance  visibility of AU institutional 
transformation and challenges, and give the AU enhanced 
funding predictability, Addis-based partners and the AU now 
interact within the Development Cooperation Review Forum 
(DCRF).  The DCRF is to meet semi-annually at the heads of 
mission/AU Commissioners/African Permanent Representative 
Committee Ambassadors level, and more regularly as a working 
group.  While DCRF meetings with the AU will focus on overall 
strategic planning and support, Addis-based partners envision 
several working-level thematic subgroups to coordinate pooled 
funding, peace and security, and other types of support. 
(Note:  The EC is unable to contribute to pooled funding for 
the AU in the near future, but is interested in harmonizing 
support.  Scandinavian countries and Canada appear to be on a 
fast-track for pooled funding.  End note). 
 
¶7. (SBU) British, German, and Danish Embassy representatives 
drafted a preliminary assessment of AU support modalities 
(forwarded to AF/RSA).  This think-piece assumes  that the 
AU, as an evolving political intergovernmental organization, 
requires assistance to enable it to negotiate based on 
longer-term strategic planning.  It will be shared informally 
with the AU to provide capitals with a comprehensive 
recommendation. 
 
¶8. (SBU) The document recommends that partners support the 
development of a unified budget for funding by AU member 
states and an extra-budgetary prioritized plan of activities 
for funding by partners, both with adequate monitoring.  The 
assessment also recommends that, in the short-term, partners 
jointly fund AU programs where possible, but also establish a 
temporary pooled fund "Process Facility" to facilitate AU 
institutional transformation, hire consultants while 
full-time AU staff are recruited, and conduct organizational 
studies.  This Process Facility would also promote AU ability 
to carry out programs beyond insufficient budgets provided by 
member states.  The Process Facility would be phased out once 
the AU has set up appropriate institutional structures. 
 
¶9. (SBU) Partners would continue current individual program 
funding/technical assistance for the AU but agree to move 
into joint or flexible arrangements for new programs.  (Note: 
 The AU has designated the Office of Strategic Planning 
Policy, Monitoring and Evaluation and Resource Mobilization 
(SPPMERM) to coordinate all partner support for the AU, serve 
as the first point of contact for partners interested in 
supporting any AU Commission or general AU activities, and 
liaise with the various commissions to provide partners with 
project proposals.  End note). 
 
¶10. (SBU) The EU is positioned to be the largest single donor 
to the AU for the near future.  A team from Brussels is 
working with the AU to define a program of support amounting 
to 55 million euros over three years (2007-2010).  According 
to EC Delegation representatives, this program will be in 
line with the EU Strategy for Africa, and will be tied to AU 
progress in implementing procurement reforms and other 
improvements.  Addis-based partners have expressed concern 
that available EU funding not tied to the AU's own strategic 
plan approved by AU member states will give the EU undue 
influence over AU programs.  Nevertheless, all partners, 
including EC Delegation representatives, agree with the need 
to pursue a unified approach to the AU to encourage necessary 
institutional reforms. 
 
--------------------------------------- 
PEACE AND SECURITY STILL A SPECIAL CASE 
--------------------------------------- 
 
¶11. (SBU) Some AU partners lament the defacto separate status 
of the AU peace and security Commission, as Peace and 
Security funding takes on a momentum of its own, divorced 
from coordination by the Office of Strategic Planning 
(SPPMERM).  Other partners, notably the UK and UN, emphasize 
that assistance to the AU for peace and security often cannot 
afford to be subjected to more lengthy bureaucratic 
procedures.  Support to the AU for Darfur and other potential 
upcoming missions, such as the DRC, requires expedited 
coordination and often detailed follow-up with the AU.  The 
UN is working with the AU to establish DPKO-like structures 
to fast-track administration and recruitment for AU missions. 
 
ADDIS ABAB 00000659  003 OF 003 
 
 
 (Comment:  Post agrees with UK and UN points.  End comment). 
 
¶12. (SBU) While fora such as the liaison group coordination 
mechanism for Darfur will continue parallel to the DCRF 
framework, Addis-based partners will create a DCRF subgroup 
on general peace and security support that will address 
longer-term coordination on G8 Action Plan commitments to 
enhance African peacekeeping capability through support for 
the AU's African Standby Force (ASF) effort and other 
programs.  (Note:  Until Russia assumed the G8 Presidency, 
the Addis-based G8 presidency coordinated Action Plan 
support.  For consistency of focus, this coordination has now 
moved outside the presidency framework.  End note). 
 
---------------------- 
COMMENT/ACTION REQUEST 
---------------------- 
 
¶13. (SBU) Comment:  Inadequate administrative and financial 
structures continue to impede the AU's capacity to mount 
effective peace support operations and otherwise proactively 
address continental challenges related to governance, health, 
etc.  To the extent that the DCRF provides partners a forum 
to guide and support AU institutional transformation and the 
AU with more predictable resources, it should be encouraged, 
and the USG should continue to participate.  End comment. 
 
¶14. (SBU) Action Request:  Post requests Department guidance 
on USG reaction to partner AU coordination plans, and input 
for the March 8 DCRF meeting.  End action request. 
 
 
 
HUDDLESTON