VZCZCXYZ0007
OO RUEHWEB

DE RUEHC #2716 2962243
ZNY CCCCC ZZH
O 222238Z OCT 08
FM SECSTATE WASHDC
TO RUEHGB/AMEMBASSY BAGHDAD IMMEDIATE 0000
INFO RUCNDT/USMISSION USUN NEW YORK IMMEDIATE 0000

C O N F I D E N T I A L STATE 112716 
 
SIPDIS 
 
E.O. 12958: DECL: 10/22/2018 
TAGS: PREL UNSC AORC ACABQ IZ
SUBJECT: DEMARCHE REQUEST: IRAQI PLEDGE FOR UNAMI COMPOUND 
CONSTRUCTION COSTS 
 
Classified By: IO Acting A/S James Warlick.  Reason 1.4 (b) and (d). 
 
¶1. (C) This is an action request.  The Department requests 
that Embassy approach the GOI at the most senior levels to 
urge GOI commitment to funding the costs of the new UNAMI 
compound in Baghdad.  UN political leadership is still 
awaiting a response to letters sent by SYG Ban to PM Maliki, 
President Talabani, and FM Zebari regarding the need for a 
significant Iraqi pledge (at least 50 percent of costs) to 
fund construction.  Iraqi response is required no later than 
October 28 in order to be considered by the UN's Advisory 
Committee on Administrative and Budgetary Questions (ACABQ). 
GOI failure to respond could erode good will among the UNSC, 
threatening the potential for continued protections of oil 
revenues and assets via the Development Fund for Iraq (DFI), 
as well as the long-term presence of the UNAMI.  USUN reports 
that the issue remains highly visible at UNHQ and that SYG 
Ban may call PM Maliki personally to inquire as to the Iraqi 
pledge. 
 
¶2. (C) Background.  On July 6, 2007, the Security Council 
approved the Secretary-General's recommendation to construct 
a secure, integrated headquarters for UNAMI in Baghdad.  In 
November, the UN estimated that construction would cost 
approximately 190 million USD.  Around the time that this 
cost estimate was produced, the UN approached Iraq and 
requested that it contribute 50 percent, or around 100 
million USD, of the construction costs.  The Iraqis responded 
favorably to this request without making a formal commitment. 
 
On May 5, 2008, UNAMI delivered a revised construction 
proposal for the compound.  Under this proposal, the compound 
would be constructed on the al-Sujud Palace complex and would 
cost an estimated 98.6 million USD. 
 
In a May 6 meeting with Embassy Baghdad, Iraqi FM Zebari 
admitted that he was the source of the GOI's promise to 
provide financial support for the project, but dismissed the 
100 million USD figure, saying he did not know where it 
originated.  Zebari now "personally doubted" that the GOI 
would make anything more than symbolic contribution to the 
compound.  Zebari made a similar statement in a June 
bilateral meeting with UN officials (suggesting the GOI might 
contribute a "token" amount). 
 
On June 15, the Iraqi government indicated that it would be 
unable to lease the al-Sujud Palace complex to the UN, but 
instead offered to allocate 40,000 square meters of land due 
west of the al-Sujud Palace in the International Zone, for a 
period of 25 years, for the construction of the compound. 
The cost of the compound's construction is expected to remain 
the same.  UNAMI and Embassy Baghdad have reviewed and 
endorsed the new location. 
 
Throughout the late summer and early fall, SYG Ban reached 
out by letter to Prime Minister Maliki President Talabani, 
and Foreign Minister Zebari with entreaties for action on the 
issue of a GOI contribution to the compound construction, but 
received no substantive response. 
 
At the opening of the UN General Assembly in September, this 
matter was discussed in President Bush's meeting with SYG 
Ban; Ban suggested that the GOI should shoulder 50 percent of 
construction costs and President Bush indicated that we would 
be helpful in that regard. 
 
Shortly afterward, in UN-GOI discussions on the margin of the 
UNGA, Zebari was reportedly "pessimistic" that the GOI would 
commit to any funding whatsoever. 
 
As the ACABQ meeting rapidly approaches (the opening is 
scheduled the week of October 27), it becomes increasingly 
important that the GOI formally and positively respond to 
requests to fund a new UNAMI compound in Baghdad with a 
specific dollar pledge of approximately 50 million USD.  End 
background. 
 
¶3. (C/rel to GOI) Embassy may draw on the following points in 
its discussions with the GOI: 
 
-- The UN's Advisory Committee on Administrative and 
Budgetary Questions (ACABQ) will meet the week of October 27 
to consider a number of issues, among them funding of the 
needed UNAMI compound here in Baghdad. 
 
-- As you know, UNAMI's increasing efforts in Iraq have 
caused it to outstrip its current facility.  Failure to 
properly house UNAMI will certainly result in degraded 
mission capabilities in key areas such as elections work and 
may jeopardize UNAMI's presence in the country. 
 
-- Member States and the UN Secretariat question why Iraq, in 
a time of budgetary surplus, has not yet made an 
initial funding pledge for the construction of this facility 
as would be common practice for the host nation, and given 
that Member States are vigorously attempting to constrain 
growth in the overall UN budget. 
 
-- We understand that the UN has called upon Iraq to fund an 
amount greater than or equal to 50 percent of total estimated 
costs, approximately 50 million USD.  The U.S. Government 
fully endorses this call. 
 
-- As the ACABQ only meets for a brief window of time, it is 
critical that an Iraqi pledge be received by the UN no later 
than October 28. 
 
-- It is important to note that making a specific pledge at 
or above this level will have a salutary spillover impact - 
such a pledge will do much to generate the political goodwill 
necessary to achieve other crucial Iraqi objectives in the UN 
Security Council, specifically the extension of DFI-like 
immunities for Iraqi oil revenue and frozen assets. 
 
-- Should the GOI be unable to make this pledge at this time, 
promptly informing the ACABQ of that fact would be 
appropriate. 
RICE