VZCZCXRO8533
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHPF #0131 0350834
ZNR UUUUU ZZH
P 040834Z FEB 08
FM AMEMBASSY PHNOM PENH
TO RUEHC/SECSTATE WASHINGTON DC PRIORITY
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY

UNCLAS PHNOM PENH 000131 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EAP/MLS, EEB/ESC/IEC--KOPP 
STATE PLEASE PASS TO USTR FOR BISBEE 
TREASURY FOR OFFICE OF EAST ASIA--CHUN 
USAID FOR ANE 
 
E.O. 12958: N/A 
TAGS: EPET EMIN PGOV CB
SUBJECT: CAMBODIA:  NGOS CREATING NEW EXTRACTIVE INDUSTRIES 
MONITORING GROUP 
 
¶1.  (U) Amid oft-repeated concerns about how Cambodia's 
future petroleum reserves will be used, a group of local and 
international NGOs are working together to create a coalition 
of local civil society organizations that will engage with 
the government on issues surrounding extractive industries. 
The locally based civil society group, Cambodians for 
Resource Revenue Transparency (CRRT), was formally launched 
January 25 with five members.  The coalition aims to address 
concerns that only donors and international NGOs are engaged 
in preparing for the unintended potential consequences of 
petroleum (and other extractive industry) income, especially 
corruption.  PM Hun Sen and other officials sometimes try to 
discredit concerns about the "resource curse" resulting from 
future oil income by characterizing them as coming from 
meddling outsiders rather than from within Cambodian society. 
 At the same time, organizers (including the NGO Pact, which 
is helping to organize the effort as part its USAID-funded 
anti-corruption program) hope that the group will spread the 
word about the expected oil windfall and build a public 
expectation for improved government services and social 
spending once petroleum revenues begin to flow. 
 
¶2.  (SBU) Organizers say that they want to be part of a 
tripartite dialogue about oil and gas revenues, which they 
envision including government, civil society, and oil 
companies.  At the same time, they hope that creating the 
group now will give them time to build its credibility and 
make the group the natural choice to be the civil society 
participant in the Extractive Industries Transparency 
Initiative (EITI).  (Note:  The EITI criteria require active 
civil society participation in the design, monitoring, and 
evaluation of EITI implementation, and in contributing to 
public debate.  End Note.)  One organizer, Warwick Browne of 
Oxfam America, privately expressed concern that without a 
strong and vibrant civil society organization already in 
place, the RGC might try to create a new quasi-civil society 
organization that was actually under their control, and then 
use that group as the EITI partner. 
 
¶3.  (U) While Oxfam America and Pact have been the main 
organizers, the coalition itself consists of only local 
organizations, with international groups (currently Norwegian 
People's Aid, World Vision, and Trocaire in addition to Oxfam 
America and Pact) serving as non-voting members of an 
international advisory committee.  The coalition now includes 
five local organizations--umbrella group NGO Forum; the 
Economic Institute of Cambodia, a think tank; and NGOs 
Development and People Alliance, Youth Resource Development 
Program, and the Center for Social Development.  (Note: 
Backers are particularly excited about the Youth Resource 
Development Program, which turned out a total audience of 500 
students at two information sessions on the oil/gas industry 
in November and December.  End Note.)  Two other NGOs--human 
rights organization LICADHO and Womyn's Agenda for 
Change--are also considering joining.  Organizers say that 
they hope to reach out beyond this largely NGO-focused group 
to also include media, academia, small businesses, etc.   At 
the same time, they want to keep the organization small and 
nimble, with no more than 20 members, having heard stories of 
large coalitions in other countries that represent so many 
different interests that they can take little action.  As 
part of USAID's Anti-Corruption Program, sub-grants will be 
provided to the coalition to assist their efforts to build 
the public demand for transparency in this critical sector. 
 
¶4.  (U) The new Extractive Industries coalition is modeed 
after similar organizations studied in Azerbaijan, Kazakhstan 
and elsewhere under an Oxfam America grant.  While the 
petroleum sector is the most immediate priority for the 
coalition, organizers are quick to say that they expect the 
group will also watch the emerging mining sector as it 
develops. 
MUSSOMELI