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Viewing cable 06KINSHASA1857, WORLD BANK WANTS CRUCIAL ROLE IN POST-ELECTION

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Reference ID Created Released Classification Origin
06KINSHASA1857 2006-12-14 12:51 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Kinshasa
VZCZCXYZ0012
RR RUEHWEB

DE RUEHKI #1857/01 3481251
ZNR UUUUU ZZH (CCY TEXT - MSI5350 - AD5B452E - 555)
R 141251Z DEC 06
FM AMEMBASSY KINSHASA
TO RUEHC/SECSTATE WASHDC 5306
INFO RUEHXR/RWANDA COLLECTIVE
RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
RUEATRS/DEPT OF TREASURY WASHDC
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUEAIIA/CIA WASHDC
UNCLAS KINSHASA 001857 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
TREASURY FOR OWHYCHE-SHAW 
 
//C O R R E C T E D  C O P Y - Text in para 4 & 5// 
 
E.O. 12958: N/A 
TAGS: EFIN ECON EAID KCOR PGOV CG
SUBJECT: WORLD BANK WANTS CRUCIAL ROLE IN POST-ELECTION 
RECONSTRUCTION 
 
REF: KINSHASA 1396 
 
1. (SBU) Summary. The World Bank's (WB) current priorities in 
the DRC are to develop a coordinated donor strategy; support 
the DRC's balance of payments; to implement short-term, high 
impact development projects; and to revive its 
nearly-moribund Demobilization, Disarmament and Reinsertion 
(DDR) program.  Simultaneously, the WB is facing substantial 
internal and external scrutiny, including three WB internal 
investigations. End summary. 
 
2. (U) Ambassador and EmbOffs met December 11 with World Bank 
(WB) officials Pedro Alba, Washington-based Country Director 
for South-Central Africa and the Great Lakes, and Jean-Michel 
Happi, DRC resident representative.  The three main topics 
were a proposed governance compact with the DRC, the WB's 
near-term funding plans, and recent internal WB 
investigations. 
 
GOVERNANCE COMPACT 
------------------ 
 
3. (U) Over the past few months, some members of the 
international donor community, led by the WB, have drafted a 
"Governance Compact" that sets out priorities for DRC's 
governance reform for 2007-2010. The seven proposed 
priorities are security sector reform, transparency, public 
finance management, natural resource management, public 
administration reform, local governance and investment 
climate/public enterprise reform. 
 
4. (SBU) Alba acknowledged the Ambassador's concern that the 
WB-initiated document was drafted with no Congolese 
participation or involvement and that, as a result, GDRC 
officials may perceive it as an effort of the international 
community to stand in the shoes of Congolese decision makers. 
 Alba indicated the WB supports the document's principles, 
but would like to convert it to a more technical "note" and 
present it as only donors' recommendations. He also said the 
WB has not yet decided if it will propose a ceremonial 
signing with the GDRC. (Comment: The WB's back-peddling to 
repackage the document as a "note" for input is probably good, 
but the damage has already been done, as we know GDRC 
officials already have a copy of the current document. 
End comment.)  Happi emphasized that the guiding document 
for the DRC's development must still remain the Poverty 
Reduction Strategy Paper (PRSP), submitted to the IMF and 
WB in July 2006. 
 
EMERGENCY FUNDING 
----------------- 
 
5. (SBU) Alba and Happi said the WB plans to disburse USD 100 
million as soon as possible in 2007. The WB will give USD 50 
million directly to the GDRC to apply against its balance of 
payments, with a primary goal of freeing GDRC funds for the 
DRC's upcoming debt payments to external multilateral creditors. 
The other half is budgeted for a number of small "high-impact," 
rapidly-implemented, labor-intensive development projects in 
Kinshasa and Mbuji-Mayi, Eastern Kasai, locations the GDRC 
itself suggested. (Comment: It is probably not coincidental 
that the Presidency supports immediate WB programming in two 
cities in which President Kabila is unpopular. End comment.) 
Alba said the WB will soon send teams to the DRC to seek 
implementation partners, looking in particular to religious 
and NGO communities. 
 
6. (U) Alba also said the WB is trying to restart its program 
to support public school teachers' salaries.  (Note: The WB's 
attempted launch of this school-fees elimination program fell 
through in 2005, in part because the GDRC failed to provide 
its agreed-upon share of funding for it. End note.) Alba 
agreed with Ambassador that one of the primary obstacles is 
actually getting the payments into the hands of the teachers. 
 (Comment: The WB correctly recognizes that the salaries of 
teachers and other civil servants is likely to be a 
contentious issue the new government will soon have to face. 
End comment.) 
 
DEALING WITH ITS PROBLEMS? 
-------------------------- 
 
7. (SBU) The WB is also trying to reinvigorate its DDR 
program, which by its own admission has been plagued by 
mismanagement and corruption (reftel).  Alba admitted that 
the WB and GDRC will not meet the initial December 31, 2006 
goal of enrolling the estimated 30,000 to 40,000 who remain 
 
eligible for DDR. (Comment: Post estimates the figure is most 
likely even higher, and MONUC believes it is about 60,000 to 
65,000. End comment.)  Alba and Happi said although 
disbursements to the Congolese DDR implementer, CONADER 
(National Commission for Disarmament, Demobilization and 
Reinsertion), continue, the WB will make management changes 
within that body.  The WB is also trying to raise additional 
funds for DDR, offering to match donor pledges. 
 
8. (SBU) Additionally, the WB's DRC office is grappling with 
three internal investigations conducted earlier in 2006.  One 
investigation focuses on BCECO, the GDRC's primary WB project 
implementer, while the other two concern CONADER and the 
GDRC's Social Fund.  According to a WB official, the BCECO 
report should be completed and published soon. However, the 
CONADER and Social Fund investigations are not yet complete, 
and it is uncertain whether they will result in official 
reports.  Alba and Happi said they are not yet privy to any 
details or findings of the latter two investigations. 
 
COMMENT 
------- 
 
9. (SBU) For a variety of reasons, the WB has faced numerous 
internal and external problems that have hampered its work in 
the DRC.  Now it seeks to revitalize its programs, remove 
some of its obstacles to progress and take a leading role 
among donors. Increasing its international DRC-based staff 
and maintaining its current emphasis on internal and external 
oversight and monitoring are important steps to realizing 
such goals. Further, in the upcoming months, it must be 
willing to work openly but cautiously with the new DRC 
government, neither being too slow to implement needed 
projects nor too hasty to disburse "quick impact" funds 
without some due diligence. End comment. 
MEECE