VZCZCXRO0806
PP RUEHDE RUEHDH RUEHDIR
DE RUEHKU #0639/01 1791320
ZNR UUUUU ZZH
P 281320Z JUN 09
FM AMEMBASSY KUWAIT
TO RUEHC/SECSTATE WASHDC PRIORITY 3573
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 1063

UNCLAS SECTION 01 OF 02 KUWAIT 000639 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ARP, SCA/P, EEB/IFD/ODF 
 
E.O. 12958: N/A 
TAGS: PREF EAID PHUM PREL PK KU

SUBJECT: KUWAIT'S AID TO PAKISTAN 
 
REF: A. STATE 61218 
     ¶B. KUWAIT 555 
     ¶C. KUWAIT 539 
 
¶1. (U) This is an action request.  Please see paragraph 10. 
 
¶2. (SBU) Summary and Key Points 
   ---------------------------- 
 
-- The Kuwait Red Crescent (KRC) has made preparations to 
provide Pakistani Internally Displaced Persons with 20,000 
tents and 10,000 packages of foodstuffs, cooking utensils, 
blankets, and hygienic supplies.  Each package is designed to 
supply a family of 5 for a month. 
 
-- KRC will deliver to ICRC in August 1,200 tons of flour and 
800 tons of rice. 
 
-- KRC is currently coordinating with ICRC and Pakistani Red 
Crescent about aid delivery and hopes to be able to deliver 
aid shortly. 
 
-- The GoK has not made any decisions about direct government 
to government assistance to Pakistan for IDPs. 
 
-- The Pakistani Embassy has approached the GoK for 
permission to set up a bank account under the name of the 
Prime Minister (not the GoP or the Embassy) to collect 
assistance for IDPs. 
 
-- The Kuwait Fund is waiting for the security situation to 
improve to sign the loan agreement for the approximately $50 
million in reconstruction assistance. 
 
End summary and key points. 
 
¶3. (SBU) Econcouns discussed aid to Pakistan with Kuwait Fund 
Regional Manager for East, South Asia & Pacific Countries 
Waleed Al-Bahar on June 23 and with Rashed Al-Hajri, 
Counselor for MFA's Asia Department and Kuwait Red Crescent 
President Barges Al-Barges on June 25.  Econcouns thanked the 
Kuwaitis for their Tokyo Donors' Conference pledges and 
stressed that there was a separate urgent need for assistance 
to IDPs (ref b). 
 
KRC ready to act 
---------------- 
 
¶4. (SBU) Al-Barges said that the KRC had already approved 
funds to purchase 20,000 tents, 10,000 boxes of foodstuffs, 
10,000 blankets, 10,000 boxes of hygienic materials (soaps, 
toothbrushes, feminine napkins, etc., and 10,000 boxes of 
kitchen utensils.  Each box's contents would meet the needs 
of 5-7 people for one month and are designed to meet the 
International Federation of Red Cross and Red Crescent 
Societies standards.  In addition, KRC is prepared to supply 
the ICRC with 1,200 tons of white flour and 800 tons of rice 
(in 40 kg sacks). 
 
¶5. (SBU) Al-Barges explained that the KRC had started setting 
aside the funds when the crisis started in anticipation of an 
appeal by the ICRC.  He had been surprised by ICRC's relative 
slowness in making the appeal and had written the ICRC in an 
effort to move things along.  Currently, he said, the KRC is 
coordinating with the ICRC about aid delivery, but that the 
ICRC ""wanted to be in charge.""  He hoped to be able to work 
out the cooperation modalities shortly.  The KRC is ready to 
send a team to Pakistan to assess buying the items locally in 
an effort to speed up delivery.  If the items are not 
available, the KRC will procure them in Kuwait, but that 
would add delivery time.  He added that the KRC was also 
coordinating with the Pakistani Red Crescent on aid delivery. 
 
 
GoK hasn't decided on IDP aid 
----------------------------- 

¶6. (SBU) Although Al-Barges stated that the KRC had the 
support of the GoK in its actions, he was not aware of any 
formal decision on government to government assistance. 
Separately, Al-Hajri confirmed that.  He said that the MFA 
had brought the issue to the attention of the cabinet, but 
there had not yet been a cabinet decision on the matter. ""The 
cabinet has a number of issues to consider now,"" he explained. 
 
Pakistani PM opening bank accounts 
---------------------------------- 
 
¶7. (SBU) Al-Hajri asked whether the GoP had approached the 
USG seeking permission to open bank accounts in the name of 
the Prime Minister to collect donations from overseas 
Pakistanis (and others) for the IDPs.  He explained that the 
Pakistani embassy in Kuwait had formally approached the GoK 
for permission to open a bank account in the name of the 
Prime Minister (not the GoP or the embassy).  He added that 
the MFA had confirmed with the Kuwaiti embassy in Islamabad 
that the GoP had made similar requests to other countries. 
He said that the GoK was considering the request.  Speaking 
personally, however, he expressed concern about the request 
to open the account in the name of the PM rather than the GoP 
and about the potential for corruption that this would 
entail. 
 
Kuwait Fund Development Assistance 
---------------------------------- 
 
¶8. (SBU) Al-Bahar explained that the Kuwait Fund had already 
agreed on an earthquake reconstruction project worth 14.3 
million KD ($50 million) for Pakistan.  The only thing 
delaying the start of the project, he said, was the security 
situation in Pakistan, which was preventing Kuwait Fund staff 
from travelling to the country to sign the loan agreement. 
As a way to speed up project implementation, he added, the 
Kuwait Fund was approving procurement for the project in 
coordination with the GoP.  The GoP could start procurement 
and be reimbursed by the Kuwait Fund, once the loan agreement 
was signed. 
 
¶9. (SBU) Al-Bahar also discussed the Kuwait Fund's 
participation (with the Asian Development Bank, the Islamic 
Development Bank, and others) in the Neelum Jhelum 
hydroelectric project.  He said that the total value of the 
project was about $2.2. billion and that the GoP had asked 
for around $600 million from Arab funds.  For its part, the 
Kuwait Fund's share of the project would be in the range of 
10-11 million KD ($38 million).  The Islamic Development Bank 
had already sent a mission to Pakistan and a contractor had 
been selected.  For its part, the Kuwait Fund needed to send 
an assessment mission to move forward, but the project was 
already starting.  (Note:  The earthquake project is the 
project referred to in Kuwait's $49 million Tokyo Donors' 
Conference pledge, which is now $50 million at current rates 
of exchange.  The $38 million is an addition project.  In 
earlier conversations, Al-Bahar had implied to econoffs that 
both projects would fulfill Kuwait's Tokyo pledge, but it 
appears as if he caused some confusion with regard to the 
units (i.e., dollars verses Kuwaiti Dinars.  End note.) 
 
Action Request 
--------------- 
 
¶10. (SBU) Please advise as to whether the GoP has approached 
the USG to open a bank account in the name of the Prime 
Minister in order to ""collect donations"" for IDPs.  Post 
would also appreciate any advice Department can provide to 
pass back to the GoK on acceding to such a request.  End 
action request. 
 
********************************************* ********* 
For more reporting from Embassy Kuwait, visit: 
visit Kuwait's Classified Website at: 
 
http://www.intelink.sgov.gov/wiki/Portal:Kuwa it 
********************************************* ********* 
JONES