R 200029Z NOV 08
FM AMEMBASSY MALABO
TO SECSTATE WASHDC 0428
AMEMBASSY USAID
USAID WASHDC
INFO AMEMBASSY MALABO

UNCLAS MALABO 000135 
 
 
AIDAC 
 
C O R R E C T E D COPY CAPTION 
 
USAID/WA FOR HENDERSON PATRICK 
USAID/AFR/WA FOR NATALIE FREEMAN AND TORINA WAY 
 
E.O. 12958: N/A 
TAGS: EK XA
SUBJECT: MALABO DELIVERS MONEY TO BACK SOCIAL DEVELOPMENT FUND 
PROJECTS 
 
¶1.      (U) Summary: The Prime Minister of Equatorial Guinea 
delivered eight checks to three Ministers to begin eight 
priority projects to be financed under the Social Development 
Fund Program of the Government of Equatorial Guinea. Attending 
the November 17, 2008 event were the Prime Minister, the 
Executive Director of the Fund, the seven ministers or their 
representatives involved in the Fund, as well as members of the 
press, the diplomatic community, and representatives from the 
major US oil companies working in the country. The projects 
involve such health programs as the Demographic and Health 
Survey, a fistula obstetrics program and a primary health care 
initiative. Education activities involve a preschool education 
program, school renovations and new construction of primary and 
secondary schools, the renovation of the national training 
center, and a national school data system. These are the first 
of approximately 50 projects to be carried out over the next 
three years. Approximately $20 million is budgeted. 
 
¶2.      (U) Priority Fund Projects: The first projects of the Fund 
involved a broad range of activities. The school data system and 
the Demographic and Health Survey are important because they 
will establish for the first time a reliable set of baseline 
information and indicators about the actual health and education 
conditions in Equatorial Guinea. A recent IMF report cited the 
serious deficiencies regarding available data of all kinds in 
the country and this information will provide a broad range of 
health and education information that have to date not existed. 
There may be an added benefit in that the health survey will 
require methodical estimate of national population (the first 
reliable estimate since 1994) from which to draw a sample of the 
population to be surveyed. The primary health care, fistula 
obstetrics and preschool education programs are major national 
efforts to significantly improve the delivery of important 
national services targeting children and women of child bearing 
age. Over 100 schools are planned to be renovated or built anew. 
A national teacher training center will be renovated. The final 
program is a women's employment generation initiative 
spearheaded by the Ministry of Social Affairs and Promotion of 
Women. 
 
¶3.      (U) Government Capacity Building: The Government of 
Equatorial Guinea is now entering the most difficult, 
challenging phase of the Social Development Fund Program, actual 
implementation of social projects. It will test the Government's 
ability to carry out projects with its own staff supported by 
various international NGOs and private consultants. The IMF in 
its recent report on Equatorial Guinea flagged the Fund and 
strongly encouraged its implementation as a key recommendation 
in the Executive Summary. In the past, most social project 
initiatives have been carried out by bilateral donors or UNDP 
and the other family of UN organizations. In addition, three 
major government service initiatives have been the malaria 
eradication project and solid waste management in Malabo started 
by Marathon Oil several years ago and the Hess Oil primary 
education project begun around 2006. In those instances the 
activities emphasized bringing in outside companies to do 
everything regarding project implementation. In the case of the 
Fund Program, the emphasis is on capacity building of the 
Ministry staff responsible for government services. 
 
¶4.      (U) Social Infrastructure Investment: In the meantime the 
Government of Equatorial Guinea continues to support basic 
infrastructure investments in developing its national road 
system, telecommunications, the power grid, and urban water and 
sewer systems for Malabo and Bata, and the like. These systems 
have been on going over the last several years and will 
continue. They are constructed by international contractors in 
association with the Ministry of Infrastructure and Urbanism. 
The Fund investment though small by comparison will likely grow. 
As the Fund begins to produce tangible results, the Government 
will grow more confident with the work being carried out by 
USAID and the investment figure for the Fund will likely grow 
significantly. Moreover, developing capacity of national 
government employees is the principle way social indicators will 
be improved and sustained. 
 
¶5.      (U) Next Steps: USAID/WA Advisor and Contractor in 
Equatorial Guinea will continue to assist the Government in 
implementing the Memorandum of Understanding, signed April 11, 
2006, and will keep Washington informed about any significant 
changes or issues that arise. 
 
HARPOLE