VZCZCXYZ0002
RR RUEHWEB

DE RUEHGB #3216/01 2791202
ZNR UUUUU ZZH
R 051202Z OCT 08
FM AMEMBASSY BAGHDAD
TO SECSTATE WASHDC 9800

UNCLAS BAGHDAD 003216 
 
AIDAC 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID PGOV ECON PINR ENRG EPET IZ
 
SUBJECT:  IRAQ SIGNS MEMORANDUM OF UNDERSTANDING WITH 
USAID FOR ELECTRICITY SECTOR CAPACITY BUILDING 
 
¶1. SUMMARY: Iraq's Minister of Electricity, Dr.Karim 
Hasan, and Christopher Crowley, Mission Director for 
the U.S. Agency for International Development (USAID) 
in Iraq, signed a Memorandum of Understanding (MOU) on 
10 September 2008, in support of the Ministry's vision 
to strengthen its management and services to improve 
Iraqis' quality of life and accelerate the national 
economy.  USAID's work with the MoE in the past few 
months has emphasized institutionalizing safety and 
work force development, including human resources job 
descriptions, government accounting training, the 
public management cycle program and project 
management.  The four working groups already underway 
and receiving USAID assistance seek to make practical, 
tangible progress at installing managerial capacity 
within the Ministry of Electricity.  END SUMMARY. 
 
BACKGROUND:  After many months of collaboration, the 
MOU cements the commitment of the USG to continue 
assisting the MoE in improving administrative systems 
and training with an emphasis on fiscal management, 
budget preparation and execution, procurement and 
project management.  Ambassador Marc Wall, Coordinator 
for Economic Transition in Iraq; Karen Aguilar, 
Director, Iraq Transition and Assistance Office; and 
Brigadier Hamish McNinch, Director of Energy 
Operations, Energy Fusion Cell, also attended the 
ceremony.  The MOU marks a milestone in the 
relationship between the Iraqi Ministry of Electricity 
(MoE) and the USG. 
 
 
----------------------------------- 
USAID'S EFFORTS IN THE NEXT 90 DAYS 
----------------------------------- 
¶3.  USAID's work with the MoE in the past few months 
has emphasized institutionalizing safety and work 
force development, including human resources job 
descriptions, government accounting training, the 
public management cycle program and project 
management.  The MoE organized four working groups 
with USAID to tackle this range of projects: 
 
a. Operations and Maintenance (O&M) - A core group of 
three MoE managers plus staff from 20 MoE generating 
plants will be working with the O&M Work Group to 
improve computerized inventory, maintenance management 
and safety operations at power plants.  The expected 
outcome is the establishment of an institutionalized 
culture and structure of safety practices in MoE 
planning, operations and human resources development. 
The work group received the MoE budget for safety for 
the next three years as follow-up to the work group 
meeting on 20 August 2008.  The MoE's budget totals 
$900 million and is targeted to cover all MoE 
facilities across the country. 
 
b. Regulatory Commission - This work group will 
support development of a regulatory structure for 
electric sector operations and establish tariffs.  A 
seminar was held on 24-28 August 2008, for senior MoE 
management to study various aspects of regulation. 
This seminar pointed out activities within the MoE 
that will need substantial strengthening in order to 
make regulation work.  Understanding the functions of 
regulation will enable the MoE to convert its data 
into useful information for reporting and measuring 
performance and control. 
 
c. Human Resources (HR) - The group is tasked to 
prepare job descriptions for the MoE.  Specific 
departments have been selected as pilot areas for the 
developing of job descriptions and career development. 
The work group developed a work plan that has been 
approved and is currently being implemented to collect 
data about the jobs in order to design a job 
description model.  Ministry groups collected the job 
data on the specially designed questionnaire in four 
pilot departments.  The HR Work Group will analyze the 
data as a step toward developing correct job 
descriptions within the pilot departments.  The second 
output of data collection and analysis is the career 
development of the personnel at the selected 
departments. 
 
d. Energy Planning - The objective of this work group 
is to improve energy-sector planning through 
collaborative activities between the Ministries of Oil 
and Electricity.  Nominees from each ministry have 
been named and the work group has drafted strategic 
guidelines and a task plan for this critical group. 
 
The joint workshops for Integrated Supply Chain 
Management and Project Management have also been 
helpful in exposing middle management from the two 
ministries to common problems and the need for joint 
planning.  One example of the joint planning starting 
to bear fruit is the Ministry of Oil has included in 
its 10-year plan a provision to supply every 
electrical facility with the appropriate amount of 
fuel. 
 
¶4.  COMMENT:  With elections approaching and essential 
services still lagging, improved service delivery of 
electricity is critical.  This memorandum of 
understanding underscores the level of trust and the 
positive relationship between the U.S. Mission and the 
GoI on this sensitive matter.  The memorandum respects 
Iraqi sovereignty while laying the foundation for 
helping institutionalize progress and building 
capacity within the Ministry of Electricity.  The four 
working groups already underway seek to make 
practical, tangible progress towards installing 
improved managerial capacity within the Ministry. 
Nevertheless, this ministry needs to make rapid and 
substantial performance improvements if it is to 
fulfill its contribution to the success of the new 
Iraq. 
 
CROCKER