VZCZCXRO3384
RR RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #3859/01 3460704
ZNR UUUUU ZZH
R 110704Z DEC 08
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 0782
INFO RUCNRAQ/IRAQ COLLECTIVE

UNCLAS SECTION 01 OF 02 BAGHDAD 003859 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON PGOV EFIN EAID IZ
SUBJECT: MINISTRY OF PLANNING HOSTS THIRD PROVINCIAL 
DEVELOPMENT CONFERENCE 
 
¶1. (SBU) Summary: On November 5-6, the Ministry of Planning 
and Development Cooperation (MoPDC) held its third conference 
on provincial development entitled "Provincial Development 
Strategy and Provincial Development Plan Institutionalization 
Conference."  During the conference, each province was asked 
to provide a fifteen minute presentation on the status of 
planning efforts, including the status of each PDP. Overall, 
the discussion focused on frustration over the lack of MoPDC 
and MoF guidance on the PDS/PDP process and the challenges to 
effective provincial planning, including corruption, lack of 
technical assistance and coordination between ministry 
representatives and provincial leaders. Despite a robust 
agenda and initial commitment by MoPDC and MoF to provide 
guidance on provincial planning initiatives, MoF did not have 
a high level representative at the event.  End summary. 
 
¶2. (SBU) The conference, organized and funded by USAID's 
Local Governance Program (LGP), drew more than 200 attendees, 
including representatives of at least 16 provinces.  The 
conference's primary objectives were to set forth guidelines 
for the Provincial Development Strategy (PDS) and Provincial 
Development Plan (PDP) process which was established in 2008; 
to prepare provinces for a five-year strategy and planning 
framework; and to affirm MoPDC and Ministry of Finance (MoF) 
regulations with the goal of creating a closer collaboration 
between provinces and these ministries. 
 
---------------------------------------- 
Provincial and National Planning Efforts 
---------------------------------------- 
 
¶3. (SBU) Authored by provincial and local representatives, 
PDS documents outline overarching development goals for each 
province.  The PDS documents were accepted by the government 
at the first provincial development conference in March 2008. 
 During the second provincial development conference in April 
2008, provinces were instructed by the MoPDC and MoF to 
create Provincial Development Plans (PDP) that create 
sector-specific project lists drawn from themes outlined in 
each PDS.  The PDS documents will also be used to create a 
new National Development Strategy (NDS) that will guide a 
National Development Plan (NDP).  In an effort to prevent 
duplication, the NDP will also rely on the project lists 
provided in the PDPs.  (Note: The new NDS would replace the 
existing NDS which is set to expire in 2010. End note.) 
 
--------------------------------------------- -------- 
Guidelines for Provincial Development Plan Submission 
--------------------------------------------- -------- 
 
¶4. (SBU) While the PDS and PDP process are not outlined in 
legislation, the government and provinces have adopted this 
process as a key mechanism to foster Iraq's development. 
Over the course of the process, provincial leaders have 
complained over the lack of direction from the MoPDC and MoF. 
Specifically, leaders state that the 15 new MoP cells that 
were established in the provinces to "assist" on PDP 
development have, at times, hindered provincial input. 
 
¶5. (SBU) The general provincial planning process is outlined 
below: 
 
1- PDS is drafted 
2- Multi-stakeholder consultation process with local councils 
3- Provincial Council (PC) prepares and approves vision, 
goals and strategies in PDS and sends to Governor 
4- Governor prepares project list to implement PDS (PDP is 
developed) 
5- Governor sends PDP to MoP for review and approval 
6- MoP reviews and revises PDP as required 
7- MoP returns revised PDP to Governor 
8- Governor sends revised PDP to PC for review 
9- PC reviews PDP with local councils 
Q9- PC reviews PDP with local councils 
10- PC approves PDP and sends to Governor 
Governor sends approved PDP to MoP 
11- MoP reviews PDP, approves and forwards to the MoF 
12- MoF receives and processes approved PDPs 
13- MoF submits budget to Cabinet for Council of 
Representatives approval 
14- MoF releases funds to the provinces 
 
Of Iraq's 18 provinces, 16 have sent a PDP to the MoP for 
review (step 5 above). Maysan and Babil PDPs are still with 
the Governor (step 4 above). 
 
----------------------------------------- 
Provincial Development Plan Presentations 
----------------------------------------- 
 
¶6. (SBU) All provinces except Sulaymaniyah, Dohuk, and Erbil 
presented on the status of provincial planning (Note: Dohuk, 
Erbil and Sulaymaniyah receive budget allocations from the 
 
BAGHDAD 00003859  002 OF 002 
 
 
KRG.  End Note).  The majority of provincial leaders focused 
on challenges that hindered effective planning; including the 
lack of capable and experienced staff, corruption, and 
procurement difficulties (for example, Najaf complained that 
PDP was used to buy cars for office staff). 
 
¶7. (SBU) Provincial representatives offered various 
suggestions.  Anbar province called for the construction of 
an airport to "facilitate future tourism" as well as the need 
for the Provincial Investment Commission to incorporate 
projects and goals into the PDS and PDP.  Basra and Najaf 
highlighted the need for coordination with existing 
investment and donor projects in their region (Basra and 
Kirkuk provinces suggested that focus should shift from 
development to investment projects).  Baghdad, Dhi Qar as 
well as other provinces called for better coordination with 
the central government on provincial projects. 
 
¶8. (SBU) Babil highlighted the existence of its Provincial 
Development Committee (which is separate from the Provincial 
Council) as well as its strong coordination of local project 
requests.  Similarly, Dhi Qar mentioned their extensive 
bottom-up planning process. 
 
¶9. (SBU) Diyala reported that it is still implementing '07 
projects and is implementing '08 projects more effectively 
due to increased security, but noted the shortage of cash to 
pay contractors. 
 
¶10. (SBU) Many provinces complained that contractors that 
were paid are yet to commence work on projects due to 
security concerns while others (like Kirkuk) complained that 
projects have been started before the awarding of contracts. 
MoPDC representative and Director General for Housing and 
Construction Dr. Anwar Bunni indicated that the MoPDC will 
redefine the procurement authorities in the near future but 
did not provide any additional information. 
 
¶11. (SBU) Maysan and Muthanna focused on the essential 
services sector.  Maysan mentioned that most sewage and water 
infrastructure projects were completed in 2008 and that it 
would focus on transportation projects in 2009.  In addition, 
Ninewa reported that 99 percent of '06 projects have been 
completed and that '07 projects are 66 percent complete. 
 
--------------------------------------------- ------------ 
Comment: GOI Provincial Planning Initiatives: Way Forward 
--------------------------------------------- ------------ 
 
¶12. (SBU) The central government can serve as a key link for 
facilitating and directing international donor contributions 
in support of the execution of the projects outlined in PDPs. 
 While the Ministry of Planning continues to exercise 
intimate involvement in the PDS/PDP process, efforts should 
focus on providing provinces with specific guidance on 
PDS/PDP regulations and seek to coordinate provincial efforts 
with the new National Development Strategy and National 
Development Plan.  This can prevent duplication of efforts 
and provide coordination across provincial lines.  In 
addition, numerous international donors have expressed 
interest in working directory with Iraq's provinces to 
support local development.  The central government should 
build the capacity for the International Compact with Iraq 
(ICI) Secretariat to facilitate and direct donor 
contributions in support of specific provincial projects.  On 
the local level, Provincial Reconstruction Teams should 
continue to assist with PDP development and co 
ntinue to focus on USG funded projects that satisfy PDP 
priorities to ensure local buy-in. 
CROCKER