VZCZCXYZ0001
PP RUEHWEB

DE RUEHYN #0972/01 1010626
ZNR UUUUU ZZH
P 110626Z APR 06
FM AMEMBASSY SANAA
TO SECSTATE WASHDC PRIORITY 3502

UNCLAS SANAA 000972 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV MASS ECON YM
SUBJECT: AMBASSADOR VISITS PORT OF HODEIDA AND THE HISTORIC 
CITY OF ZABID 
 
REF: SANAA 647 
 
 ¶1.  Summary.  On April 4, Ambassador visited the Red Sea 
port of Hodeida, located in the governorate of the same name, 
for meetings with local officials and to tour a USDA-funded 
hospital project.  During a meeting with the Governor, 
Ambassador discussed USG development assistance and the 
importance of encouraging private investment to stimulate 
economic growth.  Ambassador also toured a new wing of a 
hospital constructed using USDA Food Aid funds.  Lastly, 
Ambassador visited the historic city of Zabid, a UNESCO World 
Heritage site, to view efforts to restore the city and 
promote tourism.  End Summary. 
 
--------------------------------------------- -- 
Governor: Lots of People, Little Infrastructure 
--------------------------------------------- -- 
 
¶2.  Hodeida Governor Mohamed Saleh Shamlan thanked the 
Ambassador for USG development assistance within the region, 
especially for USDA-funded projects in health and 
infrastructure.  Shamlan hoped that construction would soon 
begin for a $40 million new port facility, supported with 
$2.5 million from USDA Food Aid, but noted that the ROYG did 
not have enough funding to complete the large project. 
Ambassador stressed the need to seek support from other 
donors, including the World Bank, as well as using national 
funds to construct a new port and processing facilities for 
Hodeida's underdeveloped fishing industry.  Ambassador also 
encouraged Shamlan to attract private investment to fuel much 
needed economic growth. 
 
¶3.  Shamlan explained that his governorate faces many 
difficulties in providing adequate services and 
infrastructure to an expanding population. Hodeida, now the 
second biggest governorate with approximately two million 
people, received a large influx of residents during the first 
Gulf War, after almost a million Yemeni guest workers were 
expelled from Gulf countries because of President Saleh's 
support for Saddam Hussein.  "There was very poor planning," 
explained Shamlan, to cope with the returnees.  He expressed 
hope that the situation was improving, noting that the 
Cabinet had approved additional funds for infrastructure 
improvements in the most impoverished areas of Hodeida. 
(NOTE: Hodeida will host this year's national day 
celebrations in May.  As the chosen city, Hodeida received an 
infusion of cash from the central government for 
infrastructure development, which is unlikely to continue 
next year when another city will be chosen to host the 
festivities.  End Note). 
 
¶4.  Ambassador informed Shamlan that Admiral Richard Hunt 
would soon be assuming command of the Combined Joint Task 
Force - Horn of Africa (CJTF-HOA) based in Djibouti and 
looked forward to visiting Hodeida and the Yemeni Navy's 
headquarters.  Shamlan welcomed a visit by Admiral Hunt at 
any time.  He also expressed satisfaction with cooperation 
between the Yemeni Coast Guard and Yemeni Navy, including 
protection of the Safir oil export terminal located off the 
Hodeida coast.  Shamlan looked forward to any support 
CJTF-HOA could provide to build the capacity of Yemen's armed 
forces. 
 
----------------------------------- 
Salakhana Mother and Child Hospital 
----------------------------------- 
 
¶5.  Ambassador toured the Salakhana Mother and Child 
Hospital, including the $333,000 extension completed in 
September 2005 with USDA Food Aid funds.  The 200 bed 
hospital, located in a poor area that absorbed many of the 
Gulf returnees, serves approximately 60,000 Hodeida 
residents.  Dr. Tawfiq Thabi, Hospital Director, explained 
that the extension was not fully operational due to a lack of 
equipment, but expected the remaining equipment to be 
delivered by July thanks to a $900,000 grant from the Dutch 
Embassy. 
 
¶6.  Dr. Thabi said that Hodeida's large youth population 
places a great strain on the health care system, especially 
with the outbreak of polio in April 2005.  (Note: The first 
polio cases of last year's outbreak were discovered in 
Hodeida.  While the rate of infection has slowed, World 
Health Organization experts estimate that it will take four 
to five years to make Yemen polio-free.  Another national 
immunization drive is scheduled for May.  End Note). 
 
------------------------------------------- 
Zabid: Once Great Capital, Now in Disrepair 
------------------------------------------- 
 
¶7.  Ambassador also visited the nearby historic city of 
Zabid, a UNESCO World Heritage site.  Once renowned for its 
 
unique architecture, the city is now in a serious state of 
disrepair.  Around 40 percent of the historic buildings have 
been replaced with modern concrete structures and most of the 
remaining historic buildings are in poor condition.  In 2000, 
UNESCO listed Zabid on its list of World Heritage sites in 
danger.  Several donors, including the Japanese, Germans, and 
UNDP are funding projects to improve the city's 
infrastructure and restore buildings, but the city still 
desperately needs more assistance before it can serve as a 
viable tourist destination.  (Note:  Post has nominated 
several restoration projects in Zabid for the 2006 
Ambassador's Fund for Cultural Preservation grants. End Note). 
 
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Comment 
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¶8.  Hodeida shares the same problems with most of Yemen's 
governorates - a rapidly expanding population and 
insufficient infrastructure to provide its residents adequate 
services, especially in health and education.  Hodeida has 
little authority to raise its own funds and must therefore 
rely on disbursements from the central government.  While the 
new Minister of Finance (reftel) appears supportive of 
transferring more fiscal authority to local governments, the 
governorates must also do more to attract private investment 
to raise revenues and encourage much needed economic growth. 
 
Krajeski