VZCZCXRO1326
RR RUEHAST RUEHBI RUEHCI RUEHDBU RUEHLH RUEHLN RUEHPW RUEHSK RUEHVK
RUEHYG
DE RUEHNT #0242/01 0421228
ZNR UUUUU ZZH
R 111228Z FEB 10
FM AMEMBASSY TASHKENT
TO RUEHC/SECSTATE WASHDC 1871
INFO ALL SOUTH AND CENTRAL ASIA COLLECTIVE
CIS COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 0081
RUEHRC/DEPT OF AGRICULTURE USD FAS WASHINGTON DC

UNCLAS SECTION 01 OF 02 TASHKENT 000242 
 
SENSITIVE 
SIPDIS 
DEPARTMENT FOR SCA/CEN 
USDA FOR OCRA/GOODFELLOW, OCBD/FREITAS 
ANKARA FOR FAS AG COUNSELOR 
 
E.O. 12958: N/A 
TAGS: EAGR EAID ECON UZ
SUBJECT: UZBEKISTAN: FOOD FOR PROGRESS JOINT WORKING GROUP MEETING 
 
¶1. (SBU) SUMMARY.  On February 9 the Regional Agricultural 
Counselor met with the Deputy Minister of Finance to review 
progress on projects implemented within the framework of Food for 
Progress (FFP).  Although progress had been negligible over the 
2006-09 period, it became apparent at this meeting that FFP may now 
have the personal attention of First Deputy Prime Minister and 
Minister of Finance Rustam Azimov.  The Uzbek side presented nine 
new projects for approval, and the U.S. side presented three.  As 
of now nearly 50 percent of FFP funds have been disbursed, and 
there is reason to believe that after years of stagnation, all FFP 
funds could finally be disbursed in 2010.  END SUMMARY. 
 
 
 
¶2. (SBU) On February 9 the Regional Agricultural Counselor and 
Emboffs met with Deputy Minister of Finance Tursunov and other 
officials under the auspices of the Joint Working Group (JWG) 
established under USDA's Food for Progress (FFP).  The JWG normally 
meets twice a year to review disbursement of more than $10 million 
USD of FFP funds left over from FY 2004.  After several years of 
minimal responsiveness, it now appears that the GOU may be 
interested in disbursing the funds and finally closing the books on 
this program. 
 
 
 
¶3. (SBU) At this meeting, the Uzbek side proposed new projects 
worth more than 4 billion soum ($2.5 million USD), more than twice 
as much as approved in all of 2006, 2007, and 2008.  These projects 
had been reviewed and approved personally by First DPM Azimov.  The 
U.S. side submitted three new proposals prepared by USAID's 
Ag-Links program that were also received favorably but will require 
the identification of appropriate implementers.  The new GOU 
projects include three irrigation-related projects, one food safety 
project, two air quality projects, and three projects initiated by 
Medical Teams International (MTI), a U.S. NGO.  The MTI projects 
include microfinance, cervical cancer screening, and a 
rehabilitation program for disabled orphans.  Ag Counselor 
requested more details about the food safety project to ensure that 
it will not duplicate or overlap with projects managed by the 
Defense Threat Reduction Agency (DTRA).  The Uzbek side promised to 
provide a detailed proposal. 
 
 
 
¶4. (SBU) The GOU also suggested canceling thirteen previously 
proposed projects ranging from small scale organic farming training 
to large scale water management projects.  Some of the funds 
originally earmarked for these projects will be diverted to 
existing and new projects.  Other funds will be used for projects 
not yet identified.  Tursunov added that several ministries had 
been unable to present justifications for their projects to the 
Cabinet of Ministers to the annoyance of First DPM Azimov. 
 
 
 
¶5. (SBU) Ag Counselor expressed his pleasure at the progress made 
since the last JWG meeting and noted that nearly half of the FFP 
funds had been allocated.  Tursunov added that if the nine new 
Uzbek projects are adopted, 70 percent of the funds will have been 
disbursed.  Ag Counselor proposed holding the next JWG session in 
May or June with hopes of agreeing to final disposition of all 
remaining funds at that time.  Tursunov agreed in principle and 
promised to provide an updated list of proposals as soon as they 
are developed. 
 
 
 
¶6. (SBU) Agreed minutes, when received from the Uzbek side, will be 
forwarded to Washington agencies. 
 
 
 
COMMENT 
 
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¶7. (SBU) This was by far the most productive meeting of the JWG 
since before 2006.  After years of negligible progress that raised 
suspicions that the FFP funds had been stolen, it now appears that 
 
TASHKENT 00000242  002 OF 002 
 
 
First DPM Azimov is taking an active role in pushing relevant 
ministries to develop programs and disburse the funds.  With 
Azimov's apparent personal attention, there is reason to hope that 
it will be possible to disburse the remaining FFP funds. 
NORLAND