Supplementary memorandum by the Department
for International Development
IRAQ: UPDATE TO SEPTEMBER 2007 MEMORANDUM
UPDATE ON
PROGRESS
1. Since the last update provided to the
IDC, disbursements have increased to £680 million in total,
of which £503 million has been spent by DFID (including EC
contributions). This includes over £130 million to support
humanitarian agencies since 2003 (£15 million of which has
been disbursed in 2007). There have been no new pledges beyond
the £744 million for reconstruction and development in Iraq
already declared. Within the framework of our existing objectives
and subject to continuing constraints of security, DFID is making
progress on a number of initiatives, including some that are new
since September.
Southern Iraq
2. The UK's Provincial Reconstruction Team
(PRT) has made significant progress in facilitating local authorities
to further economic development, and in bringing other donors
together to support this. It has helped the Basra authorities
to draft the latest Provincial Development Strategy 2008-10, which
will guide spending of the provincial budget (set to increase
by 50% this year). The PRT has also helped produce a Provincial
Resource Statement detailing donor and government investment in
the province in 2007, in order to help local authorities identify
and plan increased operations and maintenance activities.
3. The PRT has had considerable success
in drawing in other development actors. UNDP is sending four experts
to work on improving budget execution in the Governor's Office
and on community-based development. Two USAID contractors have
co-located with the PRT and will cooperate closely on community
stabilisation and training government officials. The PRT is also
working with the Chambers of Commerce on both sides of the Iraq-Kuwait
border to lobby their respective governments to remove trade
barriers.
4. DFID has played a significant role in
supporting the GoI to hold a successful second Basra Development
Forum, at which the Secretary of State spoke on 12 December. The
Forum brought together leading Iraqi political and business figures
including Prime Minister Maliki and Basra Governor Wa'ili, to
discuss economic regeneration in the Basra region.
5. DFID has been instrumental in the creation
of the new Basra Development Commission, which was launched in
December by the GoI. This will bring together national, regional
and international business knowledge to provide advice on how
to increase investment and economic growth. We welcome the appointment
of Michael Wareing (CEO of KPMG International) as one of the Commissioners.
The Commission will complement our continuing work on the Basra
Investment Promotion Agency and the Basra Development Fund. These
are helping to kickstart Basra's economy by identifying and promoting
investment opportunities and providing loans to small and medium-sized
enterprises, respectively.
6. Infrastructure projects are progressing
well, with the large "PS2" gas compressor unit now up
and running. This will add 60 megawatts to the grid, the equivalent
of 24 hour power for 120,000 people. The final programme, a major
potable water facility, should be complete by April 2008.
Baghdad
7. DFID has been working with the centre
of government to improve public administration and the budget
process so that Iraqis can better manage and spend their own resources.
We will continue to work in Baghdad to support greater Iraq leadership,
through political lobbying and our aid programmes. We are designing
a new programme that will build on and bring together our current
technical assistance programmes in Baghdad and Basra. This will
help DFID to support central government and Basra provincial authorities
more effectively, as well as better facilitating central Government
support (including funding) for economic development in southern
Iraq and the other provinces.
8. We continue to help the Ministry of Interior
make incremental progress towards strategic planning; improved
procurement and contracting; legal training; and incentives for
merit-based hiring and career development. This is despite ongoing
security challenges and a lack of access to the Ministry building.
The programme will be combined with the UK policing mission from
April 2008, increasing impact through a more joined-up intervention.
Humanitarian
9. It remains very difficult to arrive at
reliable figures for internally displaced people (IDPs) and refugees.
These range from UN estimates of 2.2 million IDPs and an equal
number of refugees (of which 1.4 million in Syria and 500,000
Jordan), to a recent estimate by a Norwegian NGO of just 160,000
refugees in Jordan. Recently imposed restrictions at external
and internal borders have reduced the flow out of Iraq, and there
are signs that some are starting to return.
10. Syria, the last country to keep its
borders open, imposed a strict visa regime on Iraqis on 1 October
last year. Internally, eleven provinces are reported to have closed
their borders or restricted access to new entrants. The GoI has
reported an increase in the number of refugees returning from
Syria towards the end of the year, although the UN High Commission
for Refugees (UNHCR) has warned that the security situation is
not yet conducive for large-scale returns. Most returnees have
cited a lack of funds or uncertainty about their visa status,
with only 14% saying that they are coming back because of improved
security.
11. Systemic change and reform will be required
in the long term, but there remain urgent short term needs. DFID
is helping to address both the short term needs, through supporting
international agencies, and longer term reforms, through our technical
assistance programmes. In 2007, we committed £15 million,
bringing our total humanitarian contribution to over £130
million since 2003.
HANDOVER OF
BASRA PROVINCE
12. On 16 December, the UK handed over security
responsibility for Basra, the last of the four southern provinces
initially controlled by the UK (al-Muthanna, Basra, Maysan and
Dhi Qar) to Provincial Iraqi Control (PIC). This decision was
taken by Prime Minister Maliki and the General Petraeus once the
multi-national forces and the GoI were satisfied that Iraqi Security
Forces there had sufficient capability; provincial infrastructure
was in place; and that local government was effective. We are
pleased that Basra has been able to take this important step towards
a successful Iraqi-controlled future.
SUPPORT FOR
LOCALLY ENGAGED
STAFF
13. We fully appreciate the important contributions
that our locally engaged staff have made to DFID and the broader
UK effort through their hard work and dedication. HMG has announced
a package of financial assistance to Iraqi staff who have worked
for our armed forces and civilian missions in Iraq for 12 months
or more.
14. This involves the choice of a one-off
package of financial assistance; exceptional leave to enter the
UK; or the opportunity to resettle in the UK through the Gateway
programme (which is administered by UNHCR). In order to qualify
for any of these options, staff must be able to show that they
have completed 12 months of direct employment with HMG. Applicants
to Gateway must also satisfy UNHCR that they meet the criteria
of the 1951 Convention and need resettlement. In preparing this
assistance scheme, we are working very closely with FCO, MoD and
the Home Office.
DFID
January 2008
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