Letter Bewes to rycroft iraq rehabilitation including attachment iraq interim dfid strategy

Dear Matthew IRAQ: REHABILITATION Interim DFID strategy. Planned placements into ORHA. In my letter of 23 April, I reported that DFID was assessing the key tasks relating to relief and recovery, and the best means for pursuing these. This process has drawn on the conclusions of the Ad Hoc Ministerial Group, discussions across Whitehall, the DFID visit consultations wed the word Bank Me Lab and IR, start an intel Tread. out from Dominick Chilcott's mission. The attached paper sets out DFID's interim strategy for the next 3-6 months. It covers tasks that principally fall to DFID, but clearly with strong inter-linkages to the diplomatic and military engagement in Iraq. The development priorities in the short and medium term are clear: getting public services running again; re-establishing law and order; ensuring the needs of the vulnerable are met; and restoring public infrastructure. To pursue these key tasks, we propose placing an additional eight people into ORHA in Baghdad to work on coordination with the UN, International Financial Institutions and NGOs; emergency supplies; civil administration (salaries, public infrastructure, public distribution system); law and order (in conjunction with MOD/DAT); and infrastructure (fuel and power supplies, water and sanitation). This DFID Liaison Team would also monitor our bilateral portfolio with UN agencies, Red Cross and NGOs, and link this into ORHA. We also envisage providing additional staff to Basra, as part of HMG's support for a Fourth ORHA Region in the South. We will discuss specific placements and terms of reference with ORHA and 1 Division in the next day or so, with a view to beginning deployments from next week. DECLIGSIFIED Principal Private Secretary ULve womED 2. This paper covers tasks that principally fall to DFID. But there are inevitably strong inter-linkages with the diplomatic and military engagement in Iraq. And the evolving strategy will also involve FCO, HMT and MOD directly, and others less directly (No. 10, Cabinet Office, DCMS, DTI, Home Office, DEFRA). Development Objective 3. The Azores Statement in March 2003 set out "...our commitment to support the people of Iraq for the long term. The Iraqi people deserve to be lifted from tyranny and allowed to determine the future of their country for themselves. We pledge to work with the international community to ensure that the Iraqi people can exploit their country's resources for their own benefit, and contribute to their own reconstruction, with international support where needed. We wish to help the Iraqi people restore their country to its proper dignity and place in the community of nations, abiding by its international obligations and free from UN sanction." This will require a full, democratically elected government with control over a unified and transparent budget, free from sanctions and integrated into the international economy, pursuing a programme of sustainable economic growth and poverty reduction. 4. Since 1991, DFID has provided financial assistance through NGOs, the ICRC and UN agencies, to support humanitarian assistance to those in need in Irag; and, in the north, development support. Looking beyond immediate relief, DFID will wish to help Iraq reach its development potential, to secure a stable future where the needs of the whole population are met equitably and sustainably DEALASSIFIED the Oil For Food Programme; > protecting and maintaining water and sanitation services; • ensuring basic security and unhindered humanitarian' access; and > promoting effective international coordination. 6. These efforts have been pursued through contributions to programmes implemented by the UN humanitarian agencies; through the International Committee of the Red Cross; through international NGOs; through advisory support to the UK military in Southern Iraq; and through coordinating advisers positioned in the region. (Annex 1 provides a short summary). 7. These efforts reflect the UK's commitment to provide impartial humanitarian assistance to those in need. Latterly, these efforts also support the UK's obligations as an Occupying Power under the Geneva Conventions and Hague regulations. 8. DFID has earmarked £210 million for relief, recovery and reconstruction activities during 2003/04. This includes £120 million provided from the Central Reserve? FID has (temporarily) positioned staff in Tehran, Amman, and Kuwait; and seconded staff to work with the UN, the UK military, and the US-led Office for Reconstruction and Humanitarian Assistance (ORHA).3 The term "humanitarian" covers a wide range of emergency relief activities, ranging from food rations to repair of power supply. "Reconstruction" refers to longer-term economic, social and political development activities - not just infrastructure. "Humanitarian" and "Reconstruction" efforts are inter- linked and complementary, not sequential or separate. A further $100m (£60m) was earmarked for DFID in the Central Reserve for Irag, in the Chancellor's Budget Statement Subsequently, it has been agreed that the net costs of OGD secondments to ORHA can be met from this amount, to be Staff positioned in Tehran and Ar DECLASSIFIED DECTDIATFA 10. In the short term (next three months), priorities include: » getting public services running again: public sector workers back to work (especially police, doctors, nurses, teachers, utilities workers, port workers); salaries paid in an efficient, transparent and non-inflationary manner (at current/consistent rates across the country); economic ministries, line ministries, central bank, provincial and municipal offices functioning, with external advice - from ORHA, UN, IFIs, NGOs). • re-establishing law and order: basic civil policing, using Iraqi civilian police where available, with Coalition military support; local courts functioning, where staff are available; minimising Arab/Kurd tensions in the North. > ensuring needs of vulnerable are met: food pipeline maintained beyond 3 June (by WFP under OFF or separately); support OFF distribution systems, enhanced by NGOs, ICRC; emergency water supplies if needed; and resume oil exports to finance humanitarian supplies. • restoring public infrastructure: reinstate power supplies, water supplies, sanitation and sewerage systems; re-establish transport and logistical systems underpinning OFF; rehabilitate telecommunications (for media, for civil society, for coordination of relief efforts). 11. Beyond the immediate recovery tasks outlined above, the broader agenda for the next six months will include: addressing the needs of the vulnerable whilst reducing the generalised dependence created by the OFF; DECHASSIFIED MOReSTOn effects of the war: especially on Jordan, Syria, Egypt, to a lesser extent Lebanon, Tunisia, Turkey; and implications for the Middle East Peace Process). 12. We will need to focus our bilateral effort selectively, drawing on our experience in other post-conflict and transition economy countries, and taking account of Iraq's characteristics as an oil-rich economy, well-educated, with a potentially vibrant private sector and civil society. We would therefore consider contributions in the areas of economic management; security sector reform; public administration reform; and the political transition process. These contributions would need to fit within an international framework agreed with the Iraqis. We would not anticipate playing a leading role in any of these areas. Rather, we would channel technical assistance and policy advice where can best add value. In pursuing the above work areas, key partners for DFID will include: ORHA - responsible for civil administration on a transitional basis ; the Interim Iraqi Authority - as and when it emerges; the UN system; the IMF and World Bank; the ICRC; and international NGOs. Our approach will be based on DAC principles of effectiveness and past experience of good practice: selective technical assistance focused in specific areas where DFID can add value, and where we can influence multilateral and other bilateral resources. 13. Our engagement with the above reform agenda will need to be guided by international law. Specifically, until an IlA is endorsed by the UNSC, we will need to take full account of the Attorney General's advice to ensure that DFID honours the limits prescribed by the Geneva and Hague conventions for an Occupying Power' • These limits are establish and pres runting and tacitate delivery DECLASSIFIED adminstration is up and ПРАТЛЛЕНА > contributing to the process for establishing an Interim Iraqi Authority. 15. These strategic priorities are tabulated in annex 2 with key partners identified by sector/work area. Key Assumptions 16. Under our ideal scenario: (a) the UN establishes its lead role in the humanitarian/recovery phase of this crisis, as soon as possible; (b) there is agreement in the UN Security Council very soon: asking the Secretary General to appoint a Special Representative to facilitate the establishment of an internationally-recognised government; extension of OFF, and a successor arrangement beyond 3 June; (c) an IF/UN Needs Assessment mission", with DFID participation, prepares the way for a Donors' Conference; and (d) agreement is reached in the Paris Club and UNSC on how to handle Iraq's debts, claims for compensation, and future oil revenues under an Interim Authority. 17. This will require significant progress in New York (UN) and in Iraq (with the military and with the emerging Iraqi consultative groups), and, in particular, agreement on Security Council Resolutions covering: international recognition of an Interim Iraqi 5 The World Bank has prepared draft terms of reference, covering Human Development (health. education. social protection. Water DECLASSIFIED cy. Iraq becomes messy/leads to civil unrest, making it impossible to pursue relief or reconstruction efforts effectively. The level of impact would be high; and the probability is medium to high. 19. Wider HMG strategy seeks to address the first two risks through political and diplomatic dialogue with all major partners. In turn, progress on these fronts should help mitigate the third risk. In terms of managing our strategy, we would continue with needs-based support for relief activities until such time as an IFI/UN needs assessments can be done. If the UN process fails, or internal security poses a threat, this will not happen and we would not move to the medium term engagement set out in this paper. Management Implications 20. DFID will need to establish a field presence in Iraq quickly, alongside the UN and other partners, in order to monitor the ongoing humanitarian situation and to influence the policy issues highlighted above. At present, security permitting, we plan to establish a (temporary) presence in Basra - reflecting our already close relations with the UN agencies currently positioned in Kuwait and with UK 1 Division. This will need to link into a fourth ORHA regional office if this is established in Basra DECLASSIFIED DrATRIATE well as within an independent DFID presence. In a limited number of cases, staff would be seconded to these partners, though they would continue to report to DFID HQ. The overall DFID complement in Iraq might range between 7 and 15 staff over the next six months or so: some of these assignments would be only for a few weeks; others could be up to six months in duration. 23. DFID field staff will need to be headed at a senior level to ensure that we are able to engage effectively with key partners. The skills mix will be determined on a case-by- case basis, and in part will be driven by the availability of staff. We have begun to look for internal candidates. 24. In DFID HQ, two teams have been set up to work on Iraq: Humanitarian Response and Coordination; and Policy and Reconstruction. As the immediate humanitarian phase of the crisis recedes (say, by July/August), most lead responsibilities would pass to the Policy and Reconstruction team (MENAD). At the same time, or sooner if possible, the Humanitarian Response team would revert to CHAD management, and the Iraq Coordination Information and Briefing Unit would be disbanded. Alongside this, we will need to resolve internal administration costs arising from the temporary structure created to manage the Iraq crisis. 25. At present, the Humanitarian and Coordination team, in consultation with the Policy and Reconstruction team, is managing all financial resources earmarked for Iraq These responsibilities would similarly pass to the Policy and Reconstruction team by August 2003 DEGHASSIFIED audressee in the strategy review proposed for October 2003. Department for International Development DECLASSIFIED affected areas of southern Iraq to boost food security and contribute to improving the nutritional status of 1,500,000 project beneficiaries in areas targeted OCHA Deployment of personnel to Country Teams and Lamaca. Deploy IRIN officers to Cyprus, Turkey, and Jordan. Develop public information capacity. 900,000 Support of information, coordination and technology in Irag and the region. HIC UNDP Emergency assistance in the electricity sector focusing on Central and Southern Iraq. Work includes assessments and rapid rehabilitation of facilities. 7,035,100 UNHCR Winter kits for 350,000. Procurement of remaining kits for target caseload of 600,000. Site identification and 1,750,000 deployment of additional emergency officers. UNICEF Pre-positioning emergency supplies. Developing campaign for mine awareness. Enhance capacity of field offices. Support to key activities in water and emergency 9,000,000 sanitation, routine immunisation and mine risk education throughout Iraq UNMAS Support to mine clearance activities and mine action co- ordination throughout Iraq. 4,000,000 Enhance current security structure with 1 Regional UNSECOORD 600,000 Security Coordination Officer, 6 Field Security Officers, oversight and training. Support to enable the procurement, transport and WFP distribution of foodstuffs, including operational and logistical support. Support to the provision of the UN 33,000,000 Humanitarian Air Service and the UN Joint Logistics Centre. Food pre-positioning for 250,000 for ten weeks. Upgrading logistics and communications capacity WHO 24 emergency health kits pre-positioned. Training on communicable diseases and awareness for CBW. Need to preposition 76 additional health kits and 20 surgical 6,000,000 kits. Strengthen WHO field operations, logistics and communicat.ons UN Total 63,785,100 Amount Brief Description NGOS Agreed (E) Merlin Emergency health, mobile units, rapid health assessments 265,000 DECLASSIFIED 4RS Assistance to vulnerable women in northern Irac 105,673 NGOS TOTAL 2,850,429 In-kind support 30 Emergency health kits, obstetric equipment Approximate value £200,000 and cholera kits Support to Inter-agency Humanitarian Information £50,000 Centre in Larnaca In-kind Secondments Liaison Officer to HIC Larnaca Logistics Officer to HIC Larnaca Air Movement Officer to WFP Damascus Air Coordinator to UNJLC Larnaca TOTAL FUNDING COMMITTED: £115,000,000 TOTAL FUNDING AGREED: £98,635,529 DECLASSIFIED DEULASSIFIEU Annex 2 DFID Objectives: Towards Recovery and Reconstruction Relief to Recovery Core sectors/Timing Recovery to Reconstruction May-July and beyond May-July Ensuring effective coordination in the international system Partners: IF/s, UN, USAID, Bilaterals, EC Emergency supplies OFF pipeline Successor arrangements to OFF Partners: UN, military, ORHA Partners: UN, IF/s, IIA, Bilaterals Civil administration Economic management Public distribution system Economic management (inc salaries, currency etc) Partners: CEls, ON. US.IIA Public infrastructure (ministry buildings, clinics, schools etc) Partners: ORHA, military, UN, IF/s Law and order Policing/justice in UK AO Justice and security sector reform Justice and security sector reform Partners: WB, UN, IIA Partners: ORHA, military Infrastructure Fuel and power supplies Water and sanitation services Partners: UN, ICRC, military, ORHA (inc USAID), Iragi utilities Health Medical supplies and services Immunisation Partners: UN, ICRC, Iraqi health system, ORHA (inc USAID) Other Public information Political transition Mines/UXO Mines/UXO Partners: UN, ORHA Partners: UN, IIA, Bilaterals ПЕЛІ ЛОСІСІЕЛ