VZCZCXRO7054
RR RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #2878/01 2511133
ZNR UUUUU ZZH
R 071133Z SEP 08
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 9270
INFO RUCNRAQ/IRAQ COLLECTIVE
RUEKJCS/SECDEF WASHINGTON DC
RUEKJCS/DIA WASHDC
RHMFISS/HQ USCENTCOM MACDILL AFB FL
RHMFISS/HQ USEUCOM VAIHINGEN GE

UNCLAS SECTION 01 OF 02 BAGHDAD 002878 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EINV ETRD PGOV IZ
SUBJECT: NINEWA: PROVINCIAL INVESTMENT COMMISSION OFFERS 
ENTHUSIASM AND LITTLE ELSE 
 
This is a Ninewa Provincial Reconstruction Team (PRT) message. 
 
Summary 
------- 
 
¶1. (SBU) Neither the GOI nor the Ninewa Governorate have 
taken the steps necessary to stand up the Provincial 
Investment Commission (PIC).  We met with an enthusiastic 
staff, but one comprised of people with limited experience in 
investment promotion and who seek from us the basic 
infrastructure that the GOI has failed to provide.  We are 
prepared to offer technical assistance ) primarily through 
in situ training and other capacity building ) and will 
lobby the Provincial Government to do its part.  End Summary 
 
¶2. (U) PRT Econ section leader and Econ section staff 
recently met with Ninewa Provincial Investment Commission 
(PIC) chief Muwaffuq Younis and Deputy Chairman Ghani Sofia 
to discuss the current state of the PIC and future plans. 
The PIC has seven members (an eighth, the DG of 
Municipalities, was assassinated earlier in June), all of 
whom are either professional members of the governorate staff 
or academics from Mosul University. 
 
PIC Off and Running 
------------------- 
 
¶3. (U) PIC members told us that they have taken a number of 
important steps to prepare for future investment in Ninewa. 
They said that the PIC is preparing to serve as a  one-stop 
shop, for interested investors.  They have met with a number 
of local groups and organizations that are interested in 
attracting investment, including the Chamber of Commerce, 
industrial unions/associations, and relevant offices within 
the provincial government.  The PIC has coordinated with the 
Departments of Municipality and Finance on the allocation of 
land to potential investors.  The DG of Municipality has 
established a special commission to identify lands outside of 
Mosul for possible industrial and agricultural investment. 
 
¶4. (U) The PIC has also collected a significant amount of 
relevant information about the province that will be useful 
for potential investors.  This includes a list of possible 
investments that the PIC submitted to the National Investment 
Commission (NIC).  The PIC has established contact with the 
Chamber of Commerce to ensure that the Chamber,s information 
holdings can also be made available to possible investors. 
The PIC has already drafted an investment report request form 
that will help potential investors identify their information 
requirements. 
 
¶5. (U) Younis claimed that the PIC is already in contact with 
a number of investors, both Iraqi and regional, who are 
looking at investments in Ninewa.  Most notably, the Al-Hanna 
Sheikh Group, based in Bahrain, is reportedly interested at 
oil sector and power generation possibilities.  He notes that 
investors remain concerned about the security situation in 
Ninewa, but many appear to believe the security situation is 
improving.  The PIC is particularly interested in promoting 
industrial investments, and is looking into the possibility 
of establishing an industrial site for light and medium 
industries near Mosul. 
 
But Operating on a Shoestring 
----------------------------- 
 
¶6. (U) The PIC still has no budget, nor does it have an 
office.  All of its accomplishments have been made by PIC 
members using their personal resources.  Both Younis and 
Sofia lamented their inability to secure a budget, noting 
that it is very difficult to present a professional and 
serious image to potential investors when they have to use 
their personal email and don,t even have a web-site. 
 
¶7. (U) Younis told us that the PIC submitted a budget to the 
Ministry of Finance (MoF) to take advantage of the $1.2 
million that the CoR set aside to support the investment 
commissions, but the request was refused.  With the 
assistance of MNF-I liaison to the NIC, we have provided 
Younis with the names of several NIC staff members who have 
assisted other PICs in obtaining funding from the MoF.  We 
will continue to monitor PIC efforts to obtain funds. 
 
¶8. (U) The local government has assigned office space to the 
PIC in a relatively secure location in central Mosul, but 
Younis says that some other government offices are occupying 
some of the space.  He says that the rest of the building 
needs refurbishment, and inquired about USG assistance to 
 
BAGHDAD 00002878  002 OF 002 
 
 
refurbish the office.  PRT officers made no commitments, but 
did agree to explore the possibility. 
 
Future Plans (and Needs) 
------------------------ 
 
¶9. (U) Younis said that they have already submitted a request 
for support staff that will be needed to staff the PIC as its 
activities ramp up.  He would like to train his staff in the 
industrial and agricultural sectors, since these are the most 
desirable sectors for investments in Ninewa.  He also 
lamented a lack of knowledge about modern investment 
operations and current ideas for promoting investment.  He 
would like to send his staff to regional countries like 
Jordan and Bahrain to see how these countries encourage 
investment.  Econ section chief noted that the Embassy is 
trying to develop workshops for PIC members to offer some 
training, and promised to keep Younis informed about any 
training opportunities that may arise. 
 
¶10. (SBU) Comment: The members of the Ninewa PIC get high 
marks for their personal effort, but that alone will not 
enable their institution to play its designated role.  Given 
a GOI commitment at both the national and provincial levels, 
we can provide added value through capacity building and 
technical assistance.  We can augment, but not replace, that 
commitment. 
CROCKER