VZCZCXRO8011
RR RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #4006 3441627
ZNR UUUUU ZZH
R 101627Z DEC 07
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 4761
INFO RUCNRAQ/IRAQ COLLECTIVE

UNCLAS BAGHDAD 004006 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EAID ECON EFIN EINV IZ
SUBJECT: CO-FINANCING HEADLINES IRFFI DONORS COMMITTEE 
MEETING 
 
REF: A. ROME 2415 
 
     ¶B. TAECKER - RIES EMAIL OF 12/6/07 
     ¶C. BAGHDAD 2550 
 
¶1. (SBU) Begin Summary: Ambassador De Martino chaired the 
first International Reconstruction Fund Facility for Iraq 
(IRFF) Donors Committee meeting following Bari. Recently 
arrived UN SRSG Steffan De Mistura also gave opening remarks 
during a mostly unremarkable meeting. MoPDC senior advisor 
Dr. Faik Abdul Rasool was the sole GOI representative 
present. EMIN expressed our support for a co-financing scheme 
governing future donor assistance projects, a concept paper 
for which is scheduled to be completed by January 2008. End 
Summary. 
 
-------------------- 
IRFFI Donors Meeting 
-------------------- 
 
¶2. (SBU) Ambassador Gianludovico De Martino, Director of 
Italian MFA Iraq Task Force, chaired the December 8 IRFFI 
Donor Committee meeting. UN Special Representative of the 
Secretary-General De Mistura's opening remarks highlighted 
 
SIPDIS 
2008 as a window of opportunity to ensure security gains in 
Iraq are capitalized upon. He conveyed the UN's position that 
new projects should incorporate a greater degree of 
co-financing from the GOI to demonstrate Iraqi ownership and 
underscore GOI sovereignty. De Mistura hailed the IRFFI Terms 
of Reference which were approved at the Bari meeting as they 
reinforced the harmonization of IRFFI and the International 
Compact with Iraq (ICI). 
 
¶3. (SBU) De Martino indicated that a concept paper for the 
cost sharing arrangement would be disseminated by the end of 
January for donor review. The paper would provide donors with 
standard agreement text to formalize the cost sharing 
arrangement. De Martino added that IRFFI planned to hold 
three meetings in 2008: one located in the Gulf; one in 
Baghdad; and another in Europe. The goal of the meetings 
would be to encourage private sector investment in Iraq as 
well as to secure additional donations for IRFFI, especially 
from GCC countries. 
 
¶4. (SBU) Dr. Faik Abdul Rasool expressed support for the 
three planned private sector investment conferences in 2008. 
He claimed that progress on ICI implementation was ongoing, 
citing the formation of Thematic Working Groups. He 
complained about the slow movement on establishing the ICI 
Secretariat and noted the difficulty for Iraqis resident 
 
SIPDIS 
outside of the International Zone to participate in meetings 
within the IZ. 
 
¶5. (SBU) EMIN expressed USG support for the co-financing 
proposal. He stated that before contemplating conferences 
aimed at attracting private sector investment, the GOI needs 
to stand up a National Investment Commission as well as 
secure passage of the hydrocarbon framework law. EMIN also 
underscored the fact that the international community in 
tandem with the GOI must take advantage of the window of 
opportunity that has opened following the substantial 
improvements in security. 
 
------------------------------ 
De Martino US Embassy Meetings 
------------------------------ 
 
¶6. (SBU) De Martino requested separate meetings on December 8 
to discuss donor aid issues at the US Embassy with EMIN, 
economic section, Treasury, Office of Provincial Affairs 
(OPA), Iraq Transition Assistance Office (ITAO), and MNSTC-I. 
 During the discussion, De Martino strongly lobbied for 
coordination of IRFFI, ICI and bilateral donor development 
projects. ITAO opening up the Donor Assistance Database (DAD) 
to both the Iraqis and the international donor community was 
raised and was endorsed by EMIN. Embassy will follow up on 
this initiative. (COMMENT: Econoff also was approached by the 
World Bank Deputy Andrew Laing on December 7 to open up the 
DAD to the international donor community and Iraqis as part 
of the ICI implementation.) In addition, the topic of 
"internationalizing PRTs" was broached with OPA--areas of 
focus for the international member could be local budget 
execution, monitoring IRRFI and ICI projects, encouraging 
private investment and/or running small grants from country 
of origin. 
 
 
BUTENIS