VZCZCXRO1113
PP RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #1017 0931214
ZNR UUUUU ZZH
P 021214Z APR 08
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 6610
INFO RUCNRAQ/IRAQ COLLECTIVE

UNCLAS BAGHDAD 001017 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PTER IZ
SUBJECT:  Koya's Mayor Shortchanged by KRG's Incomplete Government 
Unification 
 
¶1. (SBU) Koya's Mayor, Kurda Omar, told RRTOffs March 31 that her 
district had received only $2 million in Provincial Reconstruction 
Funds from Erbil since 2006.  Omar explained that Koya district had 
shifted administratively from Sulaymaniah province to Erbil province 
in 2006 as a result of the Unification Agreement, which united the 
Patriotic Union of Kurdistan (PUK) and Kurdistan Democratic Party 
(KDP) governments, except for the Kurdistan Regional Government 
(KRG) Ministries of Finance, Interior, and Peshmerga Affairs.  Omar 
said that the Sulaymaniah Ministry of Finance continued to pay 
salaries for Koya public servants, but that no project funding had 
been provided.  She said she raised her concerns with the Erbil 
Governor in December 2007, and in January and March 2008, yet the 
Governor repeatedly told her that he had not been given "official 
notification" from the KRG's Council of Ministers to provide funding 
for Koya.  Omar sent a letter December 9 to the KRG Council of 
Ministers; she has not received a reply to date. 
 
¶2. (U) Koya's population is approximately 120,000 (Erbil province 
total population is approx. 1.3 million) with 134 villages and 
30,000 students.  Koya district originally was part of Kirkuk 
Province before Saddam-era boundary changes and then shifted to 
Erbil Province.  During the PUK and KDP fighting in the 1990s, it 
came under control of Sulaymaniah.  Koya district remains a PUK 
stronghold and is the birthplace of Iraqi President Jalal Talabani. 
400 Muslim and 80 Christian families have taken refuge in Koya since 
2005; only the Christian families received apartments, provided 
directly by the President of Iraq.  In addition, there are 1,200 
Iranian Kurds who live in Koya district.  Primary economic 
activities are farming and agricultural activities.  Omar expressed 
concern over the limited rainfall received this year, and the 
potential impact on the region's farmers. 
 
¶3. (SBU) Comment:  Koya district appears to be suffering from the 
continued inability of the PUK and KDP to complete the merging of 
the Finance, Interior, and Peshmerga Affairs ministries.  The 
situation is exacerbated by inaction on the part of KRG's Council of 
Ministers to officially inform the Erbil Governor that he's now 
responsible for Koya, which may simply be a handy excuse by the 
Governor to avoid paying for Koya.  That said, Omar noted that her 
relationship with the Governor is good, and she does not believe 
that the lack of funds for Koya is due to party machinations (Erbil 
is mostly KDP, while Koya is PUK territory).  The situation in Koya 
is an example of the continued negative impact of the PUK and KDP's 
failure to resolve their differences.  In an attempt to encourage 
reform, the Kurdistan National Assembly recently said it will refuse 
to approve the 2008 budget until the three ministries are merged. 
Increased pressure on the two parties to step up to their 
responsibilities in the KRG could lead to increased development and 
economic growth in the region.  End Comment. 
 
CROCKER