VZCZCXYZ0000
RR RUEHWEB

DE RUEHBUL #1444 1580843
ZNR UUUUU ZZH
R 070843Z JUN 09 ZDK
FM AMEMBASSY KABUL
TO SECSTATE WASHDC 9287

UNCLAS KABUL 001444 
 
DEPT FOR S/CRS 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: KDEM PGOV AF
SUBJECT: UNDP ELECTION FUNDING REQUIREMENTS MET WITH USG 
CONTRIBUTION 
 
¶1. (SBU) Summary:  USAID forwarded a much awaited cooperative 
agreement (CA) to the United Nations Development Program (UNDP) for 
USD $55 million, making the USG the largest donor in the 
international community for the upcoming presidential and 
parliamentary elections.   Assuming all other international donors 
meet their pledges, total funding will not only meet current 
requirements, but will provide the UNDP with the critical ability to 
respond to any new challenges that may arise during the election 
cycle.  Substantial involvement provisions have been included to 
ensure proper accountability and use of funds, and UNDP ELECT 
representatives in Kabul appear amenable to the new provisions. 
While UNDP New York has not yet officially signed the CA, we expect 
they will do so in the next few days.   End Summary. 
 
¶2. (SBU) This week, USAID forwarded a draft cooperative agreement 
for USD $55 million to the UNDP, thus closing a funding gap which 
had concerned the international donor community.  At a Donor 
Coordination Meeting at UNDP Kabul on June 2, the chair expressed 
gratitude on behalf of the international community for the much 
needed funds.  The agreement makes the United States the largest 
donor to the election, bringing the overall planned contribution 
level to $240 million (with $120 million for the UNDP ELECT program 
and the rest channeled through other implementers including IFES, 
NDI, IRI, and Global Strategies).  The need to channel most 
elections funding through an implementer accepted by both the GIRoA 
and the donor community gives UNDP a unique role in these elections. 
 This is further supported by unilateral instruments listed above. 
 
¶3. (SBU) UNDP reports that 15 funding pledges are being finalized, 
while another six are still unsigned.  Aside from the United States' 
funding, other existing donor commitments to date amount to $60.54 
million USD, with EU funding - $47.2 million - possibly arriving as 
late as August.  The EU commitment is contingent upon approval by 
the European Parliament, which is expected in early July.  This 
notwithstanding, the USG donations enable UNDP to fully implement 
planned programs in support of the elections.  Furthermore, the 
funding permits UNDP to fully assist the IEC and other associated 
bodies, while providing the UNDP with the critical ability to 
respond to any new challenges that may arise during the election 
cycle. 
 
¶4. (SBU) The draft CA also calls for greater USG oversight to 
prevent misuse of funds.  Due to concerns regarding UNDP's prior 
management of USAID Afghanistan funds, the Mission opted to issue a 
fresh CA with several substantial involvement clauses.  These 
include: 1) Amending the traditional letter of credit (LOC) method 
of financing by requiring additional financial documentation and USG 
review and approval prior to each disbursement; 2) Prohibiting 
funding for UNOPS; 3) Mandating the hiring by UNDP of an additional 
dedicated financial management staff member on the project; and 4) 
Requiring that all USAID funds be separately tracked and reported on 
a monthly basis, and that UNDP ELECT program will not spend 
financial resources beyond those not previously secured.  Although 
UNDP New York has not officially signed the CA, UNDP ELECT 
representatives in Kabul appear amenable to the new provisions. 
 
EIKENBERRY