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Viewing cable 07BAGHDAD1124, PRT TIKRIT: PROVINCIAL GOVERNANCE TAKES BIG STEP, APPROVES

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Reference ID Created Released Classification Origin
07BAGHDAD1124 2007-04-01 06:30 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Baghdad
VZCZCXRO1030
PP RUEHROV
DE RUEHGB #1124/01 0910630
ZNR UUUUU ZZH
P 010630Z APR 07
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 0489
INFO RUEHXK/ARAB ISRAELI COLLECTIVE
UNCLAS SECTION 01 OF 02 BAGHDAD 001124 
 
SIPDIS 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: n/a 
TAGS: ECON PGOV IZ
SUBJECT: PRT TIKRIT: PROVINCIAL GOVERNANCE TAKES BIG STEP, APPROVES 
2007 CAPTIAL BUDGET 
 
REF: A. 06 BAGHDAD 4728 
B. BAGHDAD 380 
C. BAGHDAD 829 
D. BAGHDAD 1028 
 
1. This is a PRT Tikrit, Salah ad Din cable. 
 
2. Sensitive but unclassified, entire text. 
 
3. SUMMARY AND COMMENT.  The Salah ad Din Provincial Council (PC) 
approved the 2007 provincial capital budget during a special meeting 
in Tikrit on March 28.  After several hours of energetic debate, 
buoyant Council members endorsed a comprehensive capital project 
budget based on an expected Ministry of Finance 2007 provincial 
allocation of 117 billion ID.  The 2007 budget resolution process in 
Salah ad Din - anchored by the new Ministry of Planning and 
Development Coordination (MoPDC) regulations - resulted in a final 
proposal that appears to distribute projects fairly throughout the 
province, including underrepresented municipalities such as Samarra 
and Bayji.  More important than the spending measure by itself was 
the transparent and inclusive manner by which Provincial Government 
leaders constructed the budget.  The budget resolution process 
demonstrated real progress towards the strengthening of democratic 
institutions in Salah ad Din.  Continued development of credible 
local governance now moves to a critical phase: the establishment of 
open contracting and project oversight processes by the executive 
branch.  END SUMMARY AND COMMENT. 
 
------------------------ 
A More Inclusive Process 
------------------------ 
 
4. There was broader participation province-wide than ever in the 
resolution of the 2007 capital budget.  Beginning in January, the 
PRT and Civil Affairs teams began an outreach program to encourage 
local leaders and Director Generals to submit local projects. 
Although participation was not universal and communication between 
the Provincial Government and municipalities is still sporadic, even 
nearly non-existent in some areas (reftel D), the 2007 budget was 
crafted by a much wider spectrum of provincial leadership than in 
2006.  In the past, several key personalities dominated the budget 
resolution process (reftel A).  This year, however, Director 
Generals, Municipal Councils, and the Provincial Territorial 
Committee (formerly the Provincial Development and Reconstruction 
Committee, reftel C) all played an important part, paying dividends: 
the 2007 budget appears to distribute funding much more equitably 
and prudently than in the past. 
 
------------------ 
A Meeting of Minds 
------------------ 
 
5. The effort to achieve greater provincial participation in 
formulating the budget culminated in a well-attended meeting on 
March 26 in Tikrit.  The meeting - organized by Deputy Governor 
General Abdulla - was on a scale rarely seen in Salah ad Din in the 
past, bringing together most of the provincial Director Generals to 
discuss the 2007 budget execution process outlined by the MoPDC 
regulations.  Upon receiving the guidance provided by the 
regulations, the attendees appeared eager to comply for fear of 
providing the GOI - perceived to be Shia-dominated by most in SaD - 
any excuse to withhold needed provincial funds this year.  The 
meeting also provided a forum for Director Generals to submit their 
final input necessary to complete the draft budget in time for the 
Provincial Council meeting on March 28. 
 
------------------------------ 
Tuz Boycotts, But to no Effect 
------------------------------ 
 
6. Representatives from Tuz, a Kurdish and Turcoman enclave in 
northeastern Salah ad Din, frequently shun the Provincial Council, 
claiming that the poor security situation prevents them from 
traveling and that the provincial leadership is unresponsive to 
their concerns (reftel B).  On March 27, one day before the 
climactic vote on the capital budget in the PC, the Tuz delegation 
announced a new boycott through a letter which specifically demanded 
greater security measures from the ISF as well as the resignation of 
the PC Chairman.  However, in contrast to previous boycotts, the 
Provincial Council mustered a quorum and came to a consensus 
(septel). 
 
---------------------------- 
A Budget, not a Project List 
---------------------------- 
 
7. Prior to 2007, capital budgets in Salah ad Din took the form of 
prioritized project lists.  The lengthy lists - numbering in the 
hundreds - would often be transformed into wish lists for 
influential Council members, allowing them to select pet projects 
 
BAGHDAD 00001124  002 OF 002 
 
 
along with the contractors.  In addition to the lack of 
accountability and transparency, areas of the province not well 
represented on the Provincial Council suffered tremendously from 
this process; no one would be there to "cherry pick" their own local 
works. 
 
8. The MoPDC regulations provide the necessary legal framework for 
the PRT to encourage the SaD Provincial Council to a true budget for 
2007, rather than solely a list of projects.  With the total 
provincial allocation from the Ministry of Finance fixed at 117 
billion ID in advance, the 2007 budgetary process required delegates 
to make difficult but necessary decisions in advance.  For example, 
Council members decided the level of funding for each sector and 
district province-wide before selecting specific projects.  With PRT 
encouragement, the Council ensured that the provincial 
appropriations were transparent, loosely based on population 
percentages.  This process, based on the MoPDC regulations, created 
new dynamics in Salah ad Din by forcing Director Generals and local 
leaders to prioritize their project proposals and ensuring that 
Council members engage in lively debate in order to justify their 
favored projects. 
 
------- 
Comment 
------- 
 
9. COMMENT.  The approval of the 2007 capital budget by the 
Provincial Council represented an important step forward on the path 
towards better governance in Salah ad Din.  More important than the 
vote alone, however, was the more transparent budget resolution 
process - realized over several months - it represented.  Although 
significant challenges to greater provincial integration remain, the 
recent events may represent an important start on the path to a 
stronger, more credible Provincial Government in the eyes of most 
SaD residents.  Continued progress now depends on the accomplishment 
of the new and difficult task which lies ahead - establishment of 
open contracting procedures mandated by the MoPDC regulations.  END 
COMMENT. 
 
10. The PRT will remain, in conjunction with Civil Affairs teams 
stationed throughout the province, highly engaged with the SaD 
Provincial Government as it now begins the more difficult process of 
contracting, overseeing, and accounting for this new capital budget. 
 The PRT will also assist the Provincial Government to communicate 
its recent success with the general public through television and 
print media. 
 
12. For additional reporting from PRT Tikrit, Salah ad Din, please 
see our SIPRNET reporting blog: 
http://www.intelink.sgov.gov/wiki/Tikrit. 
 
CROCKER