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Press Release
Coalition Provisional Authority Baghdad, Iraq
Contact: Michael Pierson Office of Strategic Communications 1-914-360-6205
CPA Hands Over Authority for Donor Cooperation
Baghdad – Dec 10, 2003 – The Administrator of the Coalition Provisional Authority (CPA) in Iraq, L Paul Bremer, has today announced the establishment of a new Iraqi-led development coordination mechanism. This new mechanism will be responsible for all donor activities in the country, including the prioritization of needs and the approval of project proposals.
The new mechanism, which has won agreement from the United Nations, the World Bank and major donor countries will be made up of three parts:
Speaking in Baghdad, after meeting with the Minister for Planning and Development Cooperation, Dr Mehdi Hafedh, Ambassador Bremer said that Iraqis needed to take the lead in guiding the reconstruction process.
“Managing national reconstruction by matching different funding sources with prioritized needs is a complex business. This is why, after consultation with the Governing Council, we decided to establish a dedicated Ministry to deal with this task. I believe that Dr Hafedh and his team of Iraqi and international advisers will manage this process effectively.”
Ambassador Bremer also called on all donor nations, including those who have not yet commited to assist in the reconstruction process, to work with the new structure for the benefit of the Iraqi people.
Dr Hafedh welcomed Ambassador’s Bremer’s signature of Regulation Number 7 which created the new donor coordination mechanism.
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“This is an important step towards full political and economic sovereignty. Iraqis were greatly encouraged by the success of the Madrid Conference and the support offered by the international community. We will work in close partnership with donors to ensure that funds are expended in the most timely, transparent, and effective manner possible.”
“In this regard we look forward to working with the World Bank and United Nations Trust Funds as well as with the many bilateral donors and international financial institutions that have offered their assistance.”
Ambassador Bremer and Dr Hafedh today jointly announced the composition of the new Iraqi Strategic Review Board. Apart from the Minister for Planning and Development Cooperation, it will comprise the minister of Finance, Mr Kamel Gailani, two appointees of the Governing Council, Dr Amal Shalash and Mr Mahmoud Othman, and the CPA’s Director of Economic Policy, Ambassador Marek Belka.
On 6 December 2003, Dr Hafedh took over the leadership of the Council on International Coordination from its Australian Chair, Mr Andrew Goledzinowski. Mr Goledzinowski will continue to work closely with the Ministry, the Board and the Council in his new capacity as the CPA’s Director for Development Cooperation.
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BACKGROUND
1. The Madrid Donors Conference on Iraq, 23-24 October 2003, agreed on the need for Iraqi leadership in the identification of reconstruction priorities and needs, and in coordinating donor efforts to meet those needs (Para 19. Chairman’s Concluding Statement, International Donors Conference, Madrid).
2. On 5 December, Ambassador Bremer signed Regulation No.7 establishing a new Iraqi-led mechanism and handing over authority for the coordination of all donor assistance.
3. The mechanism has three parts, as follows:
i) Iraqi Strategic Review Board:
In accordance with the Regulation, the Board will “provide overall policy guidance with respect to multilateral and bilateral financial and economic development assistance for Iraq, setting and prioritizing needs in a transparent manner that does not unfairly discriminate among Iraq's geographic regions and cultural and religious groups”. It will also “take action on recommendations from the Ministry of Planning and Development Cooperation (MoPDC) regarding the allocation of international financial and other assistance against Iraq’s needs”.
The Board consists of five members:
· the Minister of Planning and Development Cooperation, Dr Mehdi Hafedh, · the Minister of Finance, Mr Kamel Gailani, · two appointees of the Governing Council: Dr Amal Shalash, who is the Head of the Economics Department at the Al Hikma Institute, and Mr Mahmoud Othman, a financial expert from the private sector, and ·
the CPA’s Director of Economic Policy, Ambassador Marek
Belka, who is a former Minister of Finance and a former Deputy P.M. of Poland. ii) Ministry of Planning and Development Cooperation:
This new Ministry (based on the old Ministry of Planning), will have the following functions. It will:
· follow up on pledges and liaise with donors; · recommend sectoral allocations, donor work programs, and funding sources to the Board; · establish guidelines and principles for developmental activity among the Ministries; and · monitor implementation, including the identification of developmental gaps.
At a recent meeting of Iraqi and CPA representatives with UN and World Bank representative (in Amman Jordan on 3 December) it was agreed that the Ministry of Planning and Development Cooperation will be the Iraqi Administration’s primarily liaison with the UN and World Bank Trust Fund Facility. Projects to be funded under the Trust Funds will need to be developed in consultation with the MoPDC and will be subject to approval by the Iraqi authorities.
Regulation 7 also deals with future lending and other assistance programs by the International Financial Institutions (IFIs). In the case of the World Bank the MoPDC will be the main point of contact. In relation to IMF assistance, however, it will be the Ministry of Finance that will be responsible for overseeing negotiations.
Recommendations to the Strategic Review Board will be made with the concurrence of the Ministry of Finance to ensure conformity with the overall budgetary framework. The Ministry will also work closely with the CPA’s Program Management Office to ensure that pre-existing bilateral commitments, including the U.S. Government appropriation, is taken into account in its recommendations to the Board.
iii) The Council for International Coordination
The Council for International Coordination (CIC) was established by Ambassador Bremer on 17 June 2003 to support and facilitate the participation of the International community in Iraq’s recovery and reconstruction. It currently has 23 member states, has acted as the main point of contact between donors and the CPA, and had primary responsibility for the Madrid Donor Conference. As part of the overall transfer of authority to the new Iraqi-led mechanism, on 6 December the leadership of the Council passed from its Australian Chair, Mr Andrew Goledzinowski, to the Minister for Development and International Cooperation, Dr Hafedh.
Although the Council is not a decision-making body, it will provide donors—both large and small—with a forum for discussing development activities and will accord them direct access to the Minister and his senior colleagues. Sectoral sub-committees will be created as necessary. Upon assuming the Chairmanship, Dr Hafedh said that he expected the Council to grow to include other donor and potential-donor countries, the main international organizations, and representatives of the NGO community. Mr Goledzinowski, a career diplomat who holds Assistant Secretary rank in the Australian foreign service will continue to work closely with the Ministry and the Council in his new capacity as the CPA’s Director for Development Cooperation.
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