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FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 3987
INFO RUEKJCS/SECDEF WASHDC
RHEHNSC/WHITE HOUSE NSC WASHDC
RUCNRAQ/IRAQ COLLECTIVE
RUZCDAB/MNC-I BAGHDAD IQ
RUZCDAA/MNF-I BAGHDAD IQ
RUEPGAB/MNF-I C2X BAGHDAD IZ
RHMFISS/WARRIOR BRAVO CC BALAD IQ
RHMFISS/HQ AFOSI ANDREWS AFB MD
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RHMFIUU/CDR101STABN DIV AASLT FORT CAMPBELL KY
RHMFISS/ASAS 4THINFDIV FORT HOOD TX
RUEPUAC/MITT 4THINFDIV FORT HOOD TX
RHMFISS/506AEG CP KIRKUK IQ

UNCLAS SECTION 01 OF 05 BAGHDAD 001285 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV ECON MOPS PREL IZ
SUBJECT: IRAQ PRTS ASSESS PROVINCIAL GOVERNMENTS - MAR 2006 
 
BAGHDAD 00001285  001.2 OF 005 
 
 
¶1. (U) INTRODUCTION.  The Provincial Reconstruction Teams 
(PRTs) in Iraq report monthly the ability of the provincial 
level government to function effectively and the obstacles 
that prevent full self-governance. The PRTs assess 
provincial governments in the areas of governance, economic 
development and infrastructure, and the Multi-National 
Corps assesses security (which is included in the overall 
assessment).  Governance includes the governor, provincial 
council (PC), director generals (DGs), and rule of law and 
transparency.  The economic development category measures 
finance, banking and business; labor and unemployment; 
transportation; and agriculture and food. Infrastructure 
incorporates basic needs; capacity of electricity, fuel, 
telecom, transportation, and irrigation systems; and 
education systems.  The sub-categories are broken down even 
further to ensure full consideration of the various 
functions that fall into the respective categories. 
 
¶2. (U) PRT members evaluate each area and assign a color to 
identify its current status. Considering each sub-category 
status, the three main pillars are assigned a color-coded 
status and these roll up into the overall evaluation for 
the respective PC.  Green indicates good progress with no 
identified problems, yellow means progress being made with 
only minor problems, orange indicates slow progress with 
significant problems, and red means very slow progress with 
major problems.  The following paragraphs summarize the 
March 2006 assessments for the PRTs in Ninawa, Kirkuk, 
Babil, and Baghdad Provinces.  END INTRODUCTION. 
 
--------------- 
NINAWA PROVINCE 
--------------- 
 
¶3. (SBU) OVERALL AND GOVERNANCE. All three main pillars 
remained coded orange for the Ninawa provincial government 
March report, resulting in an overall assessment of orange. 
The Governor has engaged in an aggressive outreach program 
with various mayors and regional security meetings. 
Attending meetings with constituents outside Mosul is a 
slow but necessary step in progress towards democracy.  The 
Governor announced his intent to not run for future office 
and indicated a willingness to step down and allow the 
Provincial Council (PC) and other political leaders lead 
the province.  The Ninawa PRT staff does not believe he 
actually will do so but that it is an expression of his 
frustration. Some provincial leaders push a Kurdish agenda; 
others, such as the PC Chairman, prevent initiative and 
blame Baghdad for lack of results.  Now that some funds 
have begun to flow from Baghdad, the provincial government 
will challenge the PC to assess its budgeting capabilities. 
To progress in future ratings, the Governor must directly 
engage political leaders in Baghdad, as well as build 
consensus among the PC and the district/sub-district 
political leaders.  The PC must adopt and follow basic 
meeting organizational rules and parliamentary procedures 
to ensure fairness and accountability. 
 
¶4. (U) INFRASTRUCTURE.  Infrastructure was rated overall 
orange with basic needs coded orange, capacity of the 
various systems such as electricity, fuel, telecom, etc., 
again lagged at red; and the education system was yellow. 
Projects currently in progress and planned for water, 
sewer, electricity, and health infrastructure will improve 
service delivery.  Unfunded projects for two solid waste 
landfills and fuel storage are necessary to address the 
worst shortfalls. The transportation network, especially 
more roads, will remain a significant constraint to expand 
economic actions without dedicated national construction 
programs. 
 
¶5. (U) The province needs to hire more teachers to 
alleviate the current shortage.  The rural areas are 
particularly affected.  In healthcare, a demand based 
supply system would greatly increase the overall quality 
for Ninawa citizens. 
 
¶6. (SBU) ECONOMIC DEVELOPMENT.  The overall assessment for 
economic development was rated orange.  The economy is in 
 
BAGHDAD 00001285  002 OF 005 
 
 
poor shape.  Lack of security, little legal protection for 
business and property, absence of clarity in business, and 
mistrust of the government all make it unlikely that a 
vibrant free market can emerge any time soon.  Unemployment 
is high, although a widely established "gray market" 
prevents extreme conditions.  Job creation must remain a 
top priority.  The transportation factor changed from 
orange to red.  The quality of road construction is 
generally poor and lacking maintenance.  No significant 
increase in road capacity has occurred since the war with 
one exception, widening of the road between Mosul to Dahuk 
to two lanes. 
 
----------------------- 
TAMIM (KIRKUK) PROVINCE 
----------------------- 
 
¶7. (U) OVERALL AND GOVERNANCE.  Kirkuk was again rated 
overall orange for March, as well as the three main 
pillars.  The governance area was rated orange.  The Kirkuk 
provincial government functions on an acceptable level, 
although ethnic divisions continue to hinder progress.  The 
Deputy Governor position remains unfilled.  PC elections, 
when held later this year, may be the catalyst to unfreeze 
the current deadlock and fill that position.   The PC 
maintained a yellow rating this month.  The recent 
decentralized funding from Baghdad has empowered the PC. 
In the past, many council members lacked a good 
understanding of their budgetary responsibilities, due 
largely to lack of training and accountability.  These 
funds from Baghdad, coupled with training provided by the 
PRT, have helped the PC members gain that knowledge and 
experience, as well as provide redevelopment projects to 
benefit its citizens. 
 
¶8. (U) INFRASTRUCTURE.  Infrastructure was rated overall 
orange with basic needs coded orange, capacity of the 
various systems such as electricity, fuel, telecom, etc., 
coded yellow, the education system was yellow, and civil 
service was rated red.  There is no trash removal in any of 
the municipalities and no landfill or waste collection 
facilities.  The top priority project for the entire 
province is construction of a landfill.  A survey of 
housing showed that 92% of the population has adequate 
housing, due to a recent high volume of housing 
construction in Kirkuk.  Although some Internally Displaced 
Persons (IDPs) sites have tents, they appear to be 
temporary. 
 
¶9. (U) The monthly average for electricity in homes rose to 
10-14 hours per day.  The percentage of homes connected to 
an electrical grid is approximately 85%.  The layout of 
roads are generally considered good, however, the surfaces 
are deteriorating.  The PC approved several road projects, 
including a plan to construct a bypass around Kirkuk City. 
 
¶10. (U) ECONOMIC DEVELOPMENT.  Factors affecting the 
economic development rating were overall orange. Finance, 
banking, and business moved from red to orange. The 
agriculture and food category increased from orange to 
yellow.  The PC should develop an integrated economic and 
agricultural program based on an accurate assessment of the 
current conditions.  The province needs a significant 
recruiting effort that includes land, security, and tax 
incentives to attract business to the area.  Kirkuk 
Province has real economic development potential but needs 
great outside investment to realize it. 
 
-------------- 
BABIL PROVINCE 
-------------- 
 
¶11. (SBU) OVERALL AND GOVERNANCE.  Babil Province was 
assessed overall at orange for March. Governance was 
yellow, while infrastructure and economic development were 
coded orange.  On March 31, the Babil PC indicated that it 
would not communicate with the PRT in protest of Coalition 
operations in Baghdad.  Although the relationship is 
strained, both sides made attempts to reach out and address 
 
BAGHDAD 00001285  003 OF 005 
 
 
issues.  The PC Chairman is facing lots of political 
pressure to disengage working with Coalition Forces (CF). 
 
¶12. (U) The PC needs to improve communication among 
themselves and other government officials.  Members look 
for immediate project results and do not recognize the fact 
that some projects are long term and require more time to 
develop.  The PRT plans to remind the PC of projects 
completed and produce fact sheets of current project status 
every 90 days.  The PRT believes this will build confidence 
that the system works and provide training to the PC, as 
well as keep capacity building moving forward. 
 
¶13. (U) INFRASTRUCTURE.  The overall infrastructure 
assessment for Babil Province was rated orange.  Basic 
needs continue to be minimally met.  The healthcare 
situation is not in crisis; however, a large scale disaster 
would overwhelm the largest hospitals due to lack of 
emergency equipment and supplies.  The current solid waste 
management system is not effective.  Trash is strewn across 
many fields and present serious health condition risks for 
the local citizens.  The PC is working on a plan to improve 
solid waste management for the entire province. 
 
¶14. (U) ECONOMIC DEVELOPMENT. The economic development 
category was rated overall orange.  Transportation was not 
rated in February and the agriculture/food category slipped 
from yellow to orange.  Although unemployment exists, local 
citizens express a better life now than two years ago. 
They are able to purchase better products, including air 
conditioners, satellite dishes, cellular phones and better 
quality rice.  Unfortunately, more than half the Iraqi 
women in the province (relatively the same proportionally 
to national numbers) are illiterate.  Poor training and 
education opportunities for women result in their high 
unemployment.  Economic reform is moving, even if slowly, 
in Babil Province.  The anticipated allocation of $55.6M 
from the Ministry of Planning and $103.7M from the Ministry 
of Finance is expected to give the reform an added boost. 
 
---------------- 
BAGHDAD PROVINCE 
---------------- 
 
¶15. (SBU) OVERALL AND GOVERNANCE.  The initial assessment 
for Baghdad Province was overall orange for March. 
Governance was rated yellow, infrastructure was red and 
economic development was coded orange.  Lack of open 
communication between the PC, the Governate, and City Hall 
is blocking the advancement of governance, economic growth, 
and their ability to provide essential services within the 
province.  The provincial government ceased formal, regular 
communications with the U.S. military, the PRT, and the 
Embassy following a joint U.S.-Iraqi operation in a Baghdad 
City neighborhood.  The PC Chairman and Governor were able 
to successfully persuade most PC members to endorse this 
action.  Many district council members told PRT staff that 
they oppose the action but have been directed to toe the 
line or face censure. 
 
¶16. (U) The central government holds nearly exclusive 
jurisdiction over security issues. This severely limits the 
effectiveness and legitimacy of the Baghdad provincial 
government in security matters. The provincial leaders need 
and want to work more closely with security policymakers 
and implementers at the national level.  In other areas, 
relationships between the PC, Governor, City Hall, and 
other political leaders need clarification via a charter 
that goes beyond the descriptions of Coalition Provisional 
Authority (CPA) Order 71.  Financial accountability also 
needs improvement. 
 
¶17. (U) INFRASTRUCTURE.  Baghdad Province infrastructure 
was rated red. Basic needs were coded orange, capacity of 
the various systems such as electricity, fuel, telecom, 
etc., were assessed as red. Civil service was also rated 
red and education received a yellow.  Generalized 
insecurity remains the determining obstacle to 
infrastructure progress.  Access to electric power remains 
 
BAGHDAD 00001285  004.2 OF 005 
 
 
a major concern of the populace.  While potable water and 
sewer services within the city have improved, the PC needs 
to redirect some effort to the outlying areas.  Additional 
funds are necessary for Baghdad Province to fundamentally 
improve the volume and delivery of essential services 
required by the population. 
 
¶18. (U) ECONOMIC DEVELOPMENT.  The overall assessment for 
economic development was coded orange. Finance/banking, 
labor/unemployment, and agriculture/food were each rated 
orange.  Transportation was coded red.  The economy is 
functioning substantially below full employment which is 
too dependent upon government activity or that of the CF. 
Vestiges of the former socialist economy and the effects 
from the war economy distort real input and output market 
prices.  The absence of statistical data renders the 
economic development assessment task a difficult one.  In 
sectors where the free market operates (e.g., consumer 
goods, home construction, and cash crops), economic growth 
is occurring. 
 
------------------- 
TABLE SUMMARIZATION 
------------------- 
 
¶19. (U) The following table summarizes, by province, the 
assessment report in governance, economic development, 
infrastructure, and security which all contribute to the 
overall assessment.  Colors listed in capital letters 
indicate a change from the previous month. 
 
NINAWA PROVINCE: 
Overall Assessment            Orange 
Governance Overall            Orange 
--Governor's Office               Orange 
--Provincial Council              Orange 
--Director's General              Orange 
--Rule of Law and Transparency    Orange 
Economic Development Overall  Orange 
--Finance/Banking/Business        Orange 
--Labor and Unemployment          Orange 
--Transportation                  RED 
--Agriculture/Food                Orange 
Infrastructure Overall        Orange 
--Basic Needs                     Orange 
--Economic Infrastructure         Red 
--Education                       Yellow 
--Civil Service         Data Not Available 
Security                      Not Reported 
 
TAMIM (KIRKUK) PROVINCE: 
Overall Assessment            Orange 
Governance Overall            Orange 
--Governor's Office               Orange 
--Provincial Council              Yellow 
--Director's General              Orange 
--Rule of Law and Transparency    Orange 
Economic Development Overall   Orange 
--Finance/Banking/Business         ORANGE 
--Labor and Unemployment           Orange 
--Transportation                   Orange 
--Agriculture/Food                 YELLOW 
Infrastructure Overall         Orange 
--Basic Needs                      Orange 
--Economic Infrastructure          Yellow 
--Civil Service                    Red 
--Education                        Yellow 
Security Overall               Orange 
--Capable Iraqi Army               Orange 
--Capable IPS                      Orange 
--Detention                        Red 
--PJCC                             Green 
--PSC                              Green 
 
BABIL PROVINCE: 
Overall Assessment            Orange 
Governance Overall            Yellow 
--Governor's Office               Yellow 
--Provincial Council              Yellow 
 
BAGHDAD 00001285  005 OF 005 
 
 
--Director's General              Orange 
--Rule of Law and Transparency    Yellow 
Economic Development Overall  Orange 
--Finance/Banking/Business        Orange 
--Labor and Unemployment          Orange 
--Transportation                  RED 
--Agriculture/Food                ORANGE 
Infrastructure Overall        Orange 
--Basic Needs                     Orange 
--Economic Infrastructure         Orange 
--Education                       Orange 
--Civil Service                   Orange 
Security Overall              Orange 
--Capable Iraqi Army              Orange 
--Capable IPS                     ORANGE 
--Detention                       Orange 
--PJCC                            Red 
--PSC                             ORANGE 
 
BAGHDAD PROVINCE: 
Overall Assessment            Orange 
Governance Overall            Yellow 
--Governor's Office               Yellow 
--Provincial Council              Yellow 
--Director's General              Orange 
--Rule of Law and Transparency    Orange 
Economic Development Overall  Orange 
--Finance/Banking/Business        Orange 
--Labor and Unemployment          Orange 
--Transportation                  Orange 
--Agriculture/Food                Orange 
Infrastructure Overall        Red 
--Basic Needs                     Orange 
--Economic Infrastructure         Red 
--Education                       Yellow 
--Civil Service                      Red 
Security Overall              Yellow 
--Capable Iraqi Army              Yellow 
--Capable IPS                     Yellow 
--Detention                       Yellow 
--PJCC                            Yellow 
--PSC                             Orange 
 
¶20. (U) SUMMARY.  The assessment is performed each month by 
the PRTs and evaluates information existing at the time. 
In some cases, the PRT members do not have sufficient data 
to make a fair evaluation without further research.  The 
rating is aimed at identifying areas that need improvement 
to pursue the provincial path to self-sufficiency.  It 
serves as a roadmap for future PRT training efforts, as 
well as a measurement of progress made. The items cited in 
the above paragraphs are not totally inclusive, but rather 
a sampling of the actions necessary for further progress. 
END SUMMARY. 
 
KHALILZAD