Scoop has an Ethical Paywall
License needed for work use Register



Cablegate: Gok Increases Iraqi Grants to $125 Million; Plans

This record is a partial extract of the original cable. The full text of the original cable is not available.





E.O. 12958: N/A


This cable is sensitive but unclassified; please protect
accordingly. Not for Internet distribution.

1. (U) In a June 25 conversation with Econ Officer, Kuwait
Fund for Arab Economic Development Deputy Director Hisham
Al-Waqayan commented on Foreign Minister Shaykh Dr. Mohammad
Al-Sabah's statements concerning additional aid for Iraq made
at the Brussels Conference on June 22. Local newspapers
reported on June 23 that the FM announced at the conference
that the GOK would provide a total of $565 million in
reconstruction assistance to Iraq, and that $125 million of
that amount would be provided as grants and the rest as
long-term soft loans. (Note: The Kuwaiti Council of
Ministers on June 19 doubled the initial $60 million grant to
$120 million, as reported reftel.)

2. (SBU) Al-Waqayan explained that the GOK had pledged $500
million in reconstruction assistance to Iraq in 2003, but
that only $65 million was to be in grants and the rest would
be in soft loans. The Humanitarian Operations Center
received $5 million, and $60 million was given to the Kuwait
Fund to disburse for projects in the Iraqi health and
education sectors, split equally between the two sectors.
With the increase of the grant amount by the Council of
Ministers, the total direct grants from the GOK to Iraq is
$125 million. According to Al-Waqayan, this additional $60
million will likely be disbursed through the Kuwait Fund and
may target additional projects in the education and health
sectors. He noted that the Kuwait Fund had just heard about
this additional grant themselves and he could not provide a
definite timeline or targeted sectors for this additional
grant money. The rest of the reconstruction assistance
money, $440 million, will be provided in concessionary loans,
managed by the Kuwait Fund.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

3. (SBU) Regarding the initial $60 million grant, Al-Waqayan
said that he had just met with the Iraqi Minister of
Education and finalized plans for the Education Ministry's
portion ($30 million) of the grant money, and that the two
sides were looking at setting up a joint Iraqi-Kuwaiti
venture to manage the projects in that sector. He said that
more information was needed from the Iraqi Ministry of Health
to finalize the grants in that sector ($30 million), but that
he expected that to be accomplished soon. Regarding the $440
in soft loans, he said that the GOK would like to target the
energy sector and would look at providing $100 million a year
for the next few years, rather than all at once. He said
that the Kuwait Fund has already spoken with officials from
the Iraqi Oil Ministry and energy sector and would continue
to do so to identify the best target projects for these
loans. Overall, Al-Waqayan characterized the relationship
with the Kuwait Fund's Iraqi contacts as "good" and noted
that the communication and organization on the Iraqi side had
improved greatly in the past month.

Visit Embassy Kuwait's Classified Website:

© Scoop Media

Advertisement - scroll to continue reading
World Headlines

UN News: Aid Access Is Key Priority

Among the key issues facing diplomats is securing the release of a reported 199 Israeli hostages, seized during the Hamas raid. “History is watching,” says Emergency Relief Coordinator Martin Griffiths. “This war was started by taking those hostages. Of course, there's a history between Palestinian people and the Israeli people, and I'm not denying any of that. But that act alone lit a fire, which can only be put out with the release of those hostages.” More

Save The Children: Four Earthquakes In a Week Leave Thousands Homeless

Families in western Afghanistan are reeling after a fourth earthquake hit Herat Province, crumbling buildings and forcing people to flee once again, with thousands now living in tents exposed to fierce winds and dust storms. The latest 6.3 magnitude earthquake hit 30 km outside of Herat on Sunday, shattering communities still reeling from strong and shallow aftershocks. More

UN News: Nowhere To Go In Gaza

UN Spokesperson Stéphane Dujarric said some 1.1M people would be expected to leave northern Gaza and that such a movement would be “impossible” without devastating humanitarian consequences and appeals for the order to be rescinded. The WHO joined the call for Israel to rescind the relocation order, which amounted to a “death sentence” for many. More

Access Now: Telecom Blackout In Gaza An Attack On Human Rights

By October 10, reports indicated that fixed-line internet, mobile data, SMS, telephone, and TV networks are all seriously compromised. With significant and increasing damage to the electrical grid, orders by the Israeli Ministry of Energy to stop supplying electricity and the last remaining power station now out of fuel, many are no longer able to charge devices that are essential to communicate and access information. More


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.