VZCZCXYZ0000
RR RUEHWEB

DE RUEHGB #0018/01 0031736
ZNR UUUUU ZZH
R 031736Z JAN 10
FM AMEMBASSY BAGHDAD
TO IRAQ COLLECTIVE

UNCLAS SECTION 01 OF 02 BAGHDAD 000018 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PTER PHUM PREF EAID IZ
SUBJECT: PRT DIYALA: MUQDADIYA PUBLIC MARKET RISES FROM THE 
ASHES 
 
REF: 09BAGHDAD3120 
 
BAGHDAD 00000018  001.5 OF 002 
 
 
¶1.  (U) This is a Diyala PRT reporting cable. 
 
¶2.  (SBU) SUMMARY:  Before near destruction in clashes 
between Coalition Forces, Al Qaeda, and militias in 2006 
and 2007, the Aruba Suq in Muqdadiya Qada (district) was 
the largest market in Diyala Province, and the third 
largest in Iraq.  The absence of the suq hindered Diyala's 
efforts to rebound economically and impeded efforts to 
assist Internally Displaced Persons (IDPs) to return home 
since so few jobs were available.  Over the past year, the 
PRT has coordinated with U.S. Forces (USF), Iraqi central 
and local government agencies, and local civic actors to 
reopen 600 shops  and create over 1,500 permanent private 
sector jobs at the suq.  The PRT anticipates that by March 
2010 these efforts will re-open at least 1,500 shops that 
provide for 3,000 permanent jobs.  The program positively 
impacts the National Unity Mission Priority by creating 
viable jobs and encouraging IDP returns in a province where 
sectarian tensions continue to simmer.  END SUMMARY 
 
DIVERSE SOCIOECONOMIC SOCIAL HUB DESTROYED 
 
¶3. (U) Before sustaining heavy battle damage in 2006 and 
2007, the Aruba Suq in Muqdadiya Qada (district) was the 
largest market in Diyala Province, and the third largest in 
Iraq.  It boasted a mixed Sunni-Shi'a population that owned 
and staffed more than 1,700 shops in the central area, and 
hundreds of additional shops and workshops in adjacent 
areas.  In 2006 Al Qaeda set up its shadow government's 
ministries in the central area of the Suq, and the ensuing 
clashes between Al Qaeda, local militias, and Coalition 
Forces (CF) destroyed most of the infrastructure and 
displaced over 10,000 residents of the suq and surrounding 
area.  By early 2008 CF had driven Al Qaeda out of the suq, 
but damage was so severe that only one shop in the entire 
market remained open. 
 
REDEVELOPMENT AND RECONCILIATION 
 
¶4. (U) The absence of the suq hindered Diyala's efforts to 
rebound economically and impeded efforts to assist 
Internally Displaced Persons (IDPs) to return home since so 
few jobs were available.  To revive the market, in early 
2009 the PRT coordinated U.S. Forces (USF), Iraqi central 
and local government agencies, and local civic actors in a 
three-phased approach.  In the first phase, USF began to 
repair the repair the central market area and restore 
essential services. 
In the second phase, the focus shifted to attracting 
customers and business people by rebuilding key anchor 
businesses that draw large numbers of people, such as 
medical clinics and banks.  Several small parks and 
restrooms were constructed to help make the suq a more 
attractive business location.  Starting in October 2009, 
the third phase emphasized small business development with 
a focus on assisting the original shop owners to reopen 
their businesses.  The PRT hired and trained local subject 
matter experts (SMEs) to evaluate applications for 
microgrants and then conduct mandatory business training to 
qualified applicants.  The program has been very popular in 
the local community, and in just three months over 600 
shops have reopened, and local SMEs are currently 
processing 100-200 new applications per week.  Many of the 
homes immediately adjacent to the Suq are largely 
abandoned, but given the level of revitalization underway, 
some IDPs are in the process of returning. 
 
CIVILIAN-MILITARY AND US-IRAQI COOPERATION 
 
¶5. (U)  Due to its extensive contact with Iraqi civic 
leaders, U.S. military, and U.S. civilian agencies, the PRT 
was uniquely qualified to lead this project and coordinate 
a wide range of American and Iraqi resources.  Muqdadiya 
Mayor Zaid Ibrahim Hassan made clear to PRToffs that 
QMayor Zaid Ibrahim Hassan made clear to PRToffs that 
revitalizing the market was a top priority and asked for 
assistance in lining up support from other Iraqi 
stakeholders, such as Diyala Governor Dr. Abd-al-Nasr 
Muntsir al-Mahdawi, Chairman of the Implementation and 
Follow-up Committee on National Reconciliation (IFCNR) 
Mohammad Salman, and the Directors General of Water, 
Education and Health.  The PRT gained commitments from six 
major suq landlords and hundreds of shopkeepers who wanted 
to reopen their businesses.  The PRT's partnered battalion 
in Muqdadiya put forth its project management expertise, 
and USAID's Community Stabilization Program made 
financial commitments to employ local engineers and other 
local SMEs for organization and training as well as fund 
the micro-grants necessary to put people back to work. 
Coordinating these reconstruction elements enabled the PRT to 
address sectarian issues related to resource distribution, 
put an Iraqi face on the progress, and showcase 
 
BAGHDAD 00000018  002.3 OF 002 
 
 
project management best practices for the local businesses. 
 
¶6. (SBU) COMMENT: At the current pace, the PRT anticipates 
that 1,500 shops, resulting in 3,000 permanent private 
sector jobs, will exist by the project's end in March 
¶2010.   Beyond the creation of a much needed revitalized 
market zone, the project should also yield benefits in 
secondary industries such as agricultural, textiles, and 
transportation.  These efforts are essential to job 
creation in Diyala and a critical component of encouraging 
the return of Diyala's IDPs.  Moreover, for a province 
eager to encourage outside investment and move past its 
reputation as one of the most dangerous parts of Iraq, the 
existence of a bustling market instead of a bombed out 
ghost town is invaluable. END COMMENT. 
FORD