VZCZCXRO5330
PP RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #4560/01 3481552
ZNR UUUUU ZZH
P 141552Z DEC 06
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 8491
INFO RUEKJCS/SECDEF WASHINGTON DC
RHEHAAA/WHITE HOUSE WASHINGTON DC
RUCNRAQ/IRAQ COLLECTIVE
RUEAWJA/DEPT OF JUSTICE WASHDC

UNCLAS SECTION 01 OF 05 BAGHDAD 004560 
 
SIPDIS 
 
SIPDIS 
 
SENSITIVE BUT UNCLASSIFIED 
 
STATE PLEASE PASS TO USAID 
 
TAGS: PGOV PREL PHUM PTER PINS SOCI KJUS KDEM ECON EFIN
EAID, IZ 
SUBJECT: PRT WEEKLY SUMMARY FOR THE PERIOD 1 - 7 DECEMBER 2006 
 
¶1. (SBU) Summary: This summary of the Provincial Reconstruction Team 
(PRT) activities for December 1-7, 2006, as provided by PRTs to the 
National Coordination Team at Embassy Baghdad.  This report also 
includes PRTs' observations, views and assessments of the political, 
economic, infrastructure, reconstruction and security situation 
relating to the province during the past week.  End Summary 
 
--------------- 
Ninewa Province 
--------------- 
 
¶2. (SBU) The Governor and Provincial Council Chairman indicated that 
the province received the final 60% or $120 million of GOI 
reconstruction funds.  PC Chairman indicated that he would approach 
the Provincial Council on the possibility of lending $10 million to 
the District of Tal' Afar for continued reconstruction efforts until 
the $37 million promised by the Ministry of Finance is released to 
Tal' Afar. 
 
¶3. (SBU) The PRT attended a meeting with Chief Judge Medhat 
regarding the status of the Mosul CCCI.  Judge Medhat produced two 
signed orders for the CCCI to commence, effective immediately. 
These orders create the CCCI Court of Ninewa and staff it with three 
judges from Baghdad and a Provincial Chief Prosecutor.  In addition, 
the Judge created a third Investigative Judge Panel exclusively for 
the CCCI which will be reside at the judicial compound and be 
capable of processing cases immediately.  The trial panel will be 
prepared to travel as soon as the flight arrangements are 
rescheduled.  The Mosul IJ's are on probation and will be 
continually monitored for 30 days before reevaluation.  At which 
time, if any violations are noted, then another team will be 
dispatched from Baghdad. 
 
¶4. (SBU) Fuel imports through Turkey's Habur Gate have increased 
over the past seven days with 877 fuel trucks crossing the border 
into Iraq.  Approximately 60% of the imported fuel is diesel, 30% is 
kerosene and the remaining 10% is benzene.  Citizens still rank the 
lack of LPG and kerosene as the biggest issue they are currently 
facing.  LPG is reportedly only available on the black market in 
many areas of Ninewa Province.  Black market prices for these two 
types of fuel remain high due to high demand.  There is a new system 
being put into place to distribute LPG to the citizens; however 
citizens complain that the process is long and confusing. 
 
¶5. (SBU) Team Leader Comment: Recent actions and activity by the 
Provincial council indicate that excellent progress is being made in 
their ability to respond to issues outside the Mosul area. PRT 
support in providing training and mentoring to Provincial District 
Councils and Sub-Districts Councils is beginning to show effect as 
these government agencies are now beginning to engage with the 
Provincial Council instead of taking their issues to Coalition 
Forces contacts. End Comment. 
 
¶6. (SBU) This week's trip to Sinjar confirmed reports that it is a 
strong KRG outpost and receives support from both the KRG and the 
provincial government. It is very secure with no reported insurgent 
presence or incidents. This security is provided by KRG Peshmerga 
forces that rotate on a regular basis back to the KRG. 
 
--------------- 
Kirkuk Province 
--------------- 
 
¶7. (SBU) At the reported request of the Provincial Council (PC) 
Chairman, the boycotting Turkoman PC Bloc issued a document 
providing further details of their boycott demands, including the 
extension of their original demand for ethnic parity in Provincial 
Government executive branch employment to include the legislative 
branch and the security services.  The Arab Advisory Council 
provided a similar document, but the PC Chairman reportedly rejected 
it because it was signed by the AAC and not by the Arab members of 
the Provincial Council.  The AAC document included additional 
demands, such as relief for detainees held in the KRG and the 
reconsideration of all decisions of the current PC. 
 
¶8. (SBU) The Kirkuk Provincial Council's meeting focused on the FY 
2007 budget.  Counter to expectations of increased GOI funding 
because of Kirkuk's project development performance, the GOI 
recently informed the Provincial Government that it can now expect 
114 billion Iraqi Dinars ($ID), rather than the projected 244 
billion ($ID) that it had hoped.  In response, the PC voted to take 
three steps: to review the project list they sent to Baghdad; to 
notify the GOI PM that they "reject" the budget; and to nominate a 
delegation to send to Baghdad to follow up with the Ministry of 
Planning on the matter. 
 
 
BAGHDAD 00004560  002 OF 005 
 
 
¶9. (SBU) We are awaiting the transfer of reconstruction funds 
recently deposited by the MOF in the Central Bank of Iraq, to the 
Provincial Government.  This is the remainder (60%) of project funds 
that the PM and MOF recently promised would not be subject to 
year-end loss, as was feared, due to non-allocation. 
 
¶10. (SBU) Team Leader Comment:  The announcement that the 2007 
budget would be only 114 billion Iraqi Dinars rather than the 
expected 200-244 billion, combined with the failure to deliver the 
promised remaining 60 percent of the reconstruction funds, fuels 
existing mistrust and resentment of the central government.  We 
suggested to the Governor that he take the PC Chairman with him next 
week on his lobbying trip to Baghdad to present a united provincial 
front to the GOI.  He replied firmly that the two would be more 
effective working their issues in Baghdad separately.  The boycott 
continues and the government's patience continues to hold.  End 
Comment 
 
------------ 
Salah ad Din 
------------ 
 
¶11. (SBU) The primary event this week at the PC meeting was the 
election of the chairman for the Provincial Development Strategy 
Committee. The PC meeting included an impressive discussion of the 
PDS during the election of the PDS Committee Chairman. The 
Governance Group lead will begin this week a series of one-on-one 
meetings with the new committee chairman. 
 
¶12. (SBU) The PC Deputy Chairman stated that the balance (60%) of 
the 2006 GOI Budget allocation under ARDF is expected to be 
transferred to Salah ad Din (75 B ID or about $50m).  He further 
indicated that the PRDC is working with the DG to identify projects 
rapidly as try to allocate it before year's end.  Still unknown at 
this time is how the MoF will treat remaining 2006 funds.  If these 
funds are withdrawn by the MoF, it is likely to create a major 
unfunded liability for the Province. 
 
------ 
Diyala 
------ 
 
¶13. (SBU) There was no Provincial Council meeting again this week, 
though finally not because they failed to reach a quorum.  Instead 
of a normal PC meeting, three main political blocs (Shia, Sunni, 
Kurd) held separate meetings and then came together to discuss the 
possible removal of IP Chief MG Ghassan al-Bawi.  The parties 
decided to form a committee comprised of two representatives from 
each bloc that would decide MG Ghassan's fate.  This committee 
decided to remove Ghassan, which will be voted on by the PC on 
Monday.  However, only 5 of the 6 members were at the final meeting 
- the SCIRI representative did not attend, so we will have to see 
what happens on Monday. 
 
¶14. (SBU) The continuing shortage of petroleum products is of 
growing concern to the people and government of Diyala.  Diyala 
receives most of it product from Iranian imports and they were 
recently reduced by 60% through a decision by the Ministry of Oil. 
It has become one of the top engagement points with the senior 
leaders in the provincial government.  The Deputy Governor contacted 
the Deputy Minister for Oil and convinced him to correct the 
problem.  The PRT will reengage next week to see if there is any 
change. 
 
¶15. (SBU) Team Leader Comment:  After an initially bleak previous 
week, I assess that indicators are shifting to a positive attitude. 
Diyala still has significant improvement to make in every area to 
regain the environment it had 6 months ago, but people are trying. 
In most areas of the capital, shops are open.  In all areas of the 
province, except the capital, schools are open.  There is political 
activity that demonstrates a desire to work together (albeit within 
each party's agenda).  They have even taken action to fix a major 
problem on their own... the removal of the Provincial Police Chief, 
MG Ghassan al Bawi.  Security remains the number one line of 
operation and will remain so until they resume lead for the security 
of Baqubah.  My personal estimate is that this will take at least 60 
days.  In the meantime, all other lines of operation shape and 
support this fight.  End Comment 
 
------- 
Baghdad 
------- 
 
¶16. (SBU) The Government Team concluded that the status of security 
in the DACs overall is worsening.  Recent events indicate that the 
combination of criminal, terrorist, and sectarian violence is on the 
 
BAGHDAD 00004560  003 OF 005 
 
 
rise.  It is not clear that an active campaign may be underway to 
undermine them collectively. 
 
¶17. (SBU) Recapping the status of ESF for Baghdad, the NET committed 
$100M.  The PRDC approved 28 projects valued at $52M on 9 October. 
GRC awarded contracts for three projects totaling $6.6M.  Another 19 
projects are ready to award and are worth $39M.  The remaining six 
projects are in different stages of development and contracting. 
 
¶18. (SBU) Team Leader Comment: I flew to FOB Mahmudiyah for meetings 
with Governor Tahan's representative in southern Baghdad.  During 
the meeting, the mayor briefed us on his plan to hold a meeting the 
next day with the sheikhs of the area on security, reconciliation, 
essential services, the BCT's role in the area, and a meeting to be 
held on January 10 to find ways to reinvigorate the qada council. 
Seventy to 80 people attended; he had expected 30.  The participants 
followed the agenda, which included security updates by the 4/6 IA 
and IP commanders.  Several sheikhs supported Moayad's call for 
national reconciliation.  Three participants challenged the IP 
Commander's assertion that security is better now in the AOR than it 
was six months ago.  Ali took note and said he would assign 
additional assets to the locales in question, which include the 
hospital in Mahmudiyah. 
 
¶19. (SBU) Comment Continued: Moayad showed on December 6 that he can 
bring people together.  While he took the initiative to bring the 
sheikhs and qada council members together, one of the participants 
bluntly told the others during the meeting that the qada council, of 
which the speaker is a member, is the paramount Iraqi authority in 
the southern Baghdad, not the quamaqqam.  Moayad seemed unfazed, 
possibly because an earlier speaker, was more deferential to him 
than the Chair's fellow council member. 
 
-------------- 
Anbar Province 
-------------- 
 
¶20. (SBU) Leaders at the Fallujah City Council Meeting emphasized 
that current sectarianism did not reflect the true tenets of Islam. 
They continued to focus on the violence in Baghdad.  An imam, who 
works in Baghdad, urged CF to consider ways to assist IDPs who 
continue to seek refuge in Fallujah.  The leaders said that 5,000 
families (~30,000 persons) left Baghdad and other areas due to 
sectarian fighting.  The imam said that GOI resources to support 
these displaced families has not been forthcoming. 
 
¶21. (SBU) Team Leader Comment:  The Provincial Council will hold its 
next meeting on Saturday, Dec. 9, at the Al Rasheed Hotel.  The PRT 
had arranged for the Ambassador to address the Council at that time. 
 The PRT attended the Dec. 5 meeting of the "Anbar Reconstruction 
Committee," a joint GOI-provincial government body chaired by the 
Deputy Minister of the Ministry of Industry and Minerals.  Two 
themes emerged from the meeting.  The security situation in Fallujah 
has deteriorated in recent months.  Any security backsliding in that 
city will have negative repercussions throughout the province. 
Secondly, the Committee signaled the need for fast progress on a 
high visibility development project.  Getting a glass factory in 
Ramadi up and running, or building a "security zone," similar in 
concept to Baghdad's International Zone, around the Anbar Government 
Center in Ramadi, were cited as examples where fast progress would 
be tangible evidence about the Council's seriousness about moving 
forward on reconstruction.  End Comment. 
 
----- 
Babil 
----- 
 
¶22. (SBU) Representatives from the United Nations Assistance Mission 
for Iraq (UNAMI) visited Babil Province to gather information on the 
political and economic situation. The UNAMI team met with various 
provincial political figures to discuss their thoughts on how the 
United Nations can better serve South Central Iraq. This is a 
positive step in the rejoining of U.N. efforts in Iraq. 
 
¶23. (SBU) Key members of the Provincial Council, the Governor's 
Office, provincial secretariat planning section and heads of 
planning for various sector agencies participated in a Provincial 
Development Strategy (PDS) consultation session on December 7th. 
This session was to find a united vision and adopt a model for 
writing a Provincial Development Strategy. 
 
¶24. (SBU) PRT Babil learned this week that any hospital project 
nominated for Economic Support Funds must have written approval from 
the Ministry of Health. This will require additional planning and 
support documentation by elements of the Babil Provincial Council in 
order to go forward with plans for a maternity hospital in Musayib 
 
BAGHDAD 00004560  004 OF 005 
 
 
(North Babil). The PRT Babil is insisting that the PRDC provide a 
written plan that leads to full equipment, supplies, and staff for 
this project, prior to actual nomination to the NET. The PC/PRDC 
representative has informally passed to PRT Babil representatives 
that the $7.5 million in ESF money is not as important to him as the 
$112 in 2006 and $165 in 2007 GOI funds that Babil is due to get. 
The leverage that applied when USG monies were the bulk of 
discretionary capital budget for the Provincial Council no longer 
applies. This may lead to lessened influence by PRT Babil in the 
direction that provincial leaders take in the choosing of future 
projects. 
 
¶25. (SBU) Team Leader Comment:  The Babil Provincial Governor has 
expressed his concern over the rising unrest in North Babil. He 
reported an influx of insurgents in that area and has asked 
Coalition Forces for their assistance in driving out the insurgent 
forces. He then left the area on extended holiday to Iran and India. 
 
 
 
----- 
Najaf 
----- 
 
¶26. (SBU) The Special Representative of the Secretary General (SRSG) 
of the United Nations remains keen to visit political and religious 
leadership in Najaf.  The process is moving along and the PST hosted 
the Advance Team from the UN Assistance Mission to Iraq from Monday 
to Thursday at the REO.  We provided an in depth briefing on the 
reconstruction, political and security aspects of the Province. 
During their visit, the SRSG met with the Governor and Head of the 
Provincial Council. 
 
¶27. (SBU) The Governor, during the Provincial Security Transition 
Assessment meeting, raised the need for Coalition support for the 
training of judges and prosecutors in terrorism cases, as well as 
the issue of penal facility capacity.  Training was essential, as 
the judicial system could not presently cope effectively with such 
cases in the Province.  We have earmarked ESF of USD 200K to support 
a judicial training program. 
 
¶28. (SBU) The Governor attended the meeting of the Provincial 
Council to discuss the status of the various PRDC projects and 
reconstruction policy overall.  The Council Chairman urged him to 
unify the various bodies and commissions that are all involved in 
the reconstruction process, as well as for stiffer sanctions against 
those contractors who have turned in bad execution.  The Chairman 
also called for an increased level of accuracy in the accountancy 
phase of project completion and offered the help of the Provincial 
Council in supervising such execution.  For his part, the Governor 
said that one of the Province's operating principles was to separate 
authorities so that there were checks and balances; nonetheless he 
underscored the commitment of the Governorate to both careful annual 
project planning and an overall strategy to ensure excellence. 
 
¶29. (SBU) Team Leader Comment:  Provincial enthusiasm over the 
advent of DFI and ESF remains high.  In my meetings, the Governor 
asked to know what the actual mechanisms for payment will be for the 
projects.  Will the USG now adopt the approach of the MoF and 
transfer funds directly into the Provincial commercial account, as 
with DFI?  I will be discussing the actual mechanisms, once the 
projects are approved by the PRDC and the Embassy.  End comment. 
 
 
------- 
Dhi Qar 
------- 
 
¶30. (SBU) One major result of the RSU's involvement in the 
development conference held in Luxor, Egypt was our urging the Dhi 
Qar government to establish a Treasurer's Office for the province. 
We view this as a critical step in ensuring the transparent flow of 
central government funds into the province from Baghdad, and the 
proper expenditure and accounting of those funds for the future, as 
Dhi Qar continues to receive substantial ARDP funds in its budget. 
We believe the provincial government intends to make a formal 
decision on this before the end of the year. 
 
¶31. (SBU) The Italian Government has finalized plans and obligated 
162,000 Euros to construct an 82,000 sq meter Children's Amusement 
Park and Green Space in the center of the Dhi Qar capital, 
Al-Nasiriyah.  The amusement park will provide a much-needed green 
space in the center of what is otherwise a very dismal, dusty and 
colorless capital city.  The park will provide a playground for 
children, complete with a large variety of playground equipment, as 
well as a cafeteria and a movie theatre.  Construction on the park 
 
BAGHDAD 00004560  005 OF 005 
 
 
should begin by late December 2006 and be completed by end of 
February 2007.  The provincial government has approved the project 
and is integrally involved in the planning and execution of it. 
 
------ 
Maysan 
------ 
 
¶32. (SBU) The nascent Maysan PRT team traveled to Basra Air Station 
last week to have consultations with MND(SE) J-9 (including 
commander and senior staff members),Basra PRT members, Gulf Region 
South Army Corps of Engineers, local contractors, the MND(SE) Battle 
Group Commander and his POLAD.  The Maysan local government has been 
officially disengaged from MNF-I forces in the region for several 
months, but recently expressed a wish to accelerate contact with 
donors.  The PRT members, Battle Group commander, and POLAD agreed 
the PRT's establishment is an excellent opportunity to begin 
re-engagement, and will set up a first meeting the Governor and 
Provincial Council shortly. 
 
------ 
Basrah 
------ 
 
¶33. (SBU) The PRT held a series of meetings with MND SE, with the 
aim of finding common goals and likely areas of joint cooperation 
aimed at maintaining momentum after Sinbad. It was agreed that 
projects designed for sustainable employment generation would be 
introduced using established governance arrangements with Sector 
Working Groups as the entry points.  Several economy initiatives 
were also discussed with the aim of enabling small businesses to be 
readily established, including continuing and expanding the date 
palm restoration activities, and the rehabilitation of the 
irrigation and drainage infrastructure. 
 
Khalilzad 
 
 
 
 
 
9