FY 2009 Supplemental Appropriations Justification
Report

FY 2009 SUPPLEMENTAL APPROPRIATIONS JUSTIFICATON

DEPARTMENT OF STATE AND
U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

RESOURCE REQUEST SUMMARY FOR FOREIGN OPERATIONS

($ in thousands)


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Account
FY 2009 Supplemental Request
Development Assistance
38,000
Economic Support Fund
2,874,500
Peacekeeping Operations
50,000
Foreign Military Financing Program
98,400
International Narcotics Control and Law Enforcement
389,500
International Military Education and Training
2,000
Nonproliferation, Anti-Terrorism, Demining and Related Programs
122,000
FREEDOM Support Act
242,500
Migration and Refugee Assistance
293,000
International Disaster Assistance
200,000
PL 480
300,000
USAID Operating Expenses
152,600
USAID Capital Investment fund
48,500
Total
4,811,000


DEMOCRATIC REPUBLIC OF THE CONGO ($10 Million)

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Account
($ in thousands)
FY 2008 Estimate
FY 2008
Supp

FY 2009
Bridge Supp
*FY 2009 Request
FY 2009
Supp Request
Development Assistance (DA)
23,418
0
0
0
0
Economic Support Fund (ESF)
18,846
12,500
10,000
41,000
0
Foreign Military Financing (FMF)
397
0
0
600
0
Global Health and Child Survival (GHCS)
43,903
0
0
35,519
0
International Narcotics Control and Law Enforcement (INCLE)
1,488
0
0
1,700
0
Nonproliferation, Anti-Terrorism, Demining and Related Programs (NADR)
0
0
0
300
0
International Military Education and Training (IMET)
477
0
0
500
0
P.L. 480, Title II
9,930
0
0
12,000
0
Peacekeeping Operations (PKO)
5,455
0
20,000
5,500
10,000
TOTAL
103,914
12,500
30,000
95,119
10,000


*FY 2009 country allocations have not been determined and will be transmitted to Congress at a later date as required by section 653 (a) of the Foreign Assistance Act of 1961

Summary

The United Nations mission (French acronym MONUC) is presently the only reliable security force in the Democratic Republic of the Congo (DRC). A well-trained DRC military is critically needed in advance of MONUC’s eventual departure. Supplemental resources will be used to continue to reform the Armed Forces of the DRC (FARDC) and support efforts of the Government of the DRC to create a professional rapid reaction force (RRF) that protects the population against illegal armed groups operating inside its borders, respects and defends human rights, contributes to stability in the region, and is properly maintained and supported by the Government. Funds will be used to develop key functional areas of the FARDC (personnel, budget, training, and logistics) and to establish a model, professional unit from which Congolese military trainers will be drawn as part of the longer-term reform of the military.

$10 million Peacekeeping Operations (PKO)

Peace and Security ($10 million)

Supplemental resources will be used to support two phases of military training to develop the RRF. The first phase will focus on command-and-control training for the RRF commanders and training for a cadre of 30 instructors. The second phase will involve training for the entire 650-person RRF, including the commanders and the cadre of instructors who will have participated in the first phase of training. Funds will cover the costs of trainers, advisors, training materials, individual and unit equipment (including vehicles, communications equipment and fuel) and logistics support. Funds will also be used to refurbish infrastructure at the second-phase training site, and to transport personnel and equipment.


KENYA ($38 Million)

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Account
($ in thousands)
FY 2008 Estimate
FY 2008
Supp

FY 2009
Bridge Supp
*FY 2009 Request
FY 2009
Supp Request
Development Assistance (DA)
32,125
0
5,000
67,750
38,000
Economic Support Fund (ESF)
0
12,000
25,000
0
0
Global Health and Child Survival (GHCS)
541,263
0
0
520,240
0
International Narcotics Control and Law Enforcement (INCLE)
0
0
0
100
0
Nonproliferation, Anti-Terrorism, Demining and Related Programs (NADR)
5,777
0
0
5,500
0
International Military Education and Training (IMET)
524
0
0
750
0
Foreign Military Financing (FMF)
198
0
0
100
0
P.L. 480, Title II
6,951




TOTAL
586,838
12,000
30,000
594,440
38,000


*FY 2009 country allocations have not been determined and will be transmitted to Congress at a later date as required by section 653 (a) of the Foreign Assistance Act of 1961.

Summary

The political accord following the post-election violence in 2008 has presented an unparalleled opportunity for Kenyans to address longstanding unresolved issues. To address the root causes of the post-election violence requires additional resources to bolster prospects for success and sustainability of the political accord, which is critical to the future stability of Kenya and, therefore, to U.S. interests. The supplemental funds requested will continue to address fundamental underlying causes of the post-election violence and support national and local reform efforts to improve governance and economic opportunities. Funds being requested will: (1) support peace and reconciliation efforts still needed in specific areas where the potential for renewed unrest remains high; (2) support the political accord and constitutional, electoral and institutional reforms that will improve governance, transparency and accountability, including at the local level; and (3) promote economic development opportunities, especially for youth, to address poverty and inequality.

$38 million Development Assistance (DA)

Peace and Security ($1.5 million)

Community-based and faith-based organizations, as well as the National Steering Committee on Conflict Management and Peace Building, require ongoing additional support for programs related to peace and reconciliation, in addition to the $5 million that has thus far been allocated from previous funding sources. A range of demographic segments, in particular women and youth, will receive support.


Governing Justly and Democratically ($13 million)

To support reforms emanating from the National Accord, resources will target key government and non-government institutions at both the national and local levels to improve governance, anti-corruption efforts and strengthen meaningful engagement with citizens, constituents, and civil society. Activities will focus on improving accountability and transparency by building the capacity of government agencies and civil society to inform their constituents and be accountable to the citizenry. There will also be specific actions to support electoral, constitutional, and other reforms to improve the governance structure to prevent another election crisis in 2012 and develop new leaders for the future. By focusing on key underlying governance issues, these activities will complement other efforts to support the National Accord, and local and national peace building efforts.

Economic Growth ($21.5 million)

Seventy-five percent of Kenya’s youth are either unemployed or underemployed. Youth played an active role in the two-month post-election violence. Robust support will be provided to address the multiple factors that impede the ability of Kenyan youth to develop viable entrepreneurial skills, engage as citizens in local and national issues that affect them and act as positive forces for change in their communities. The development of viable livelihood skills will span the range of productive enterprises available in Kenya, including agriculture, microenterprise, marketing and public service. Resources will target skills development, training opportunities, access to finance, marketing development, and other skills to assist them in having lucrative employment and self-reliance.

Program Support ($2 million)

Human resource requirements to ensure timely and effective implementation of these substantial and important programs demand hiring of additional international and local staff. Funds will assist in providing personal services to oversee programs through rigorous monitoring and evaluation as well as documentation of best practices so that some of these activities may serve as potential models for adoption by the Government of Kenya.


SOMALIA ($40 Million)

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Account
($ in thousands)
FY 2008 Estimate
FY 2008
Supp

FY 2009
Bridge Supp
*FY 2009 Request
FY 2009
Supp Request
Development Assistance (DA)
10,419
0
0
0
0
Economic Support Fund (ESF)
0
0
0
20,250
0
Global Health and Child Survival (GHCS)
748
0
0
8,480
0
Nonproliferation, Anti-Terrorism, Demining and Related Programs (NADR)
754
0
0
0
0
Peacekeeping Operations (PKO)
2,281
0
67,000
11,600
40,000
TOTAL
14,202
0
67,000
40,330
40,000


*FY 2009 country allocations have not been determined and will be transmitted to Congress at a later date as required by section 653
(a) of the Foreign Assistance Act of 1961.

Summary

The recent withdrawal of Ethiopian forces from Somalia and the elevation of moderate Islamist leader Sheikh Sharif Sheikh Ahmed to the Presidency of the Transitional Federal Government (TFG) are important developments that present the United States Government (USG) with a unique opportunity to help restore some stability to Somalia. The progress made on the political front remains fragile, and Somalia is facing one of the worst humanitarian crises in the world. Supplemental funding will be used to support and expand the African Union Mission to Somalia (AMISOM), so that it can better provide security for participants in the Somali peace process and protect humanitarian access within its area of operations. It may also be used for security sector reform in Somalia, particularly with respect to counterterrorism and counterinsurgency missions. The success of these efforts will be critical to the stabilization of the security situation in South-Central Somalia and the successful implementation of the Somali peace process, also known as the Djibouti Process. The Administration’s request includes language to allow up to $50 million to be transferred to the Peacekeeping Operations account from the Contributions to International Peacekeeping Activities account, in case additional bilateral funds are required to support AMISOM.

$40 million Peacekeeping Operations (PKO)

Peace and Security ($40 million)

Funding will first and foremost be used to provide non-lethal equipment, logistical support, and semi-permanent basing facilities to newly deploying and existing AMISOM units. Increased USG support will improve operational effectiveness, bring some of these units closer to the United Nations standards and support new troop contributions. Funding may also be directed towards Security Sector Reform (SSR) efforts. Some funding will pay for equipment and logistical support for training efforts for Somali troops by Tanzania, Uganda, Rwanda, and other nations in the region that will implement the training activities. Training may also be conducted or facilitated by USG contracted trainers.


ZIMBABWE ($45 Million)

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Account
($ in thousands)
FY 2008 Estimate
FY 2008
Supp

FY 2009
Bridge Supp
*FY 2009 Request
FY 2009
Supp Request
Development Assistance (DA)
4,729
0
0
0
0
Economic Support Fund (ESF)
0
5,000
15,000
26,000
45,000
Global Health and Child Survival (GHCS)
22,483
0
0
19,433
0
TOTAL
27,212
5,000
15,000
45,433
45,000



*FY 2009 country allocations have not been determined and will be transmitted to Congress at a later date as required by section 653 (a) of the Foreign Assistance Act of 1961.

Summary

To be successful, Zimbabwe’s transition will require a significant infusion of capital and program investment in both the short- and long-term. The supplemental funding requested will support Zimbabwe’s transitional government which was agreed to under the Global Political Agreement. Specific objectives for this funding include assisting in drafting a new constitution; conducting preparatory work for new elections; helping to reform governmental institutions and processes; strengthening local government; supporting economic stabilization and recovery; and providing a humanitarian safety-net for those most adversely affected by economic instability.

Non-humanitarian assistance will be closely linked to genuine progress on governance and democracy, and the achievement of donor-agreed principles and benchmarks. Any approved assistance would be targeted only toward reform-minded elements of the new transition government and a variety of civil society and other private entities to press the government for reforms in accordance with the Hague “Principles for International Engagement with Zimbabwe.”

These reforms include: (1) full and equal access to humanitarian assistance; (2) commitment to macroeconomic stabilization; (3) restoration of the Rule of Law, including enforcement of contracts, an independent judiciary, and respect for property rights; (4) commitment to the democratic process and respect for internationally accepted human rights standards, including a commitment to freedom of expression, freedom of print and broadcast media, freedom of assembly, and freedom of association; and (5) commitment to timely elections held in accordance with international standards, and in the presence of international election observers.

It is hoped that stabilization can proceed at faster rates than in most transitional countries. This is due to Zimbabwe’s historically higher development achievements relative to other African transitional states, its proximity to South Africa, its societal resilience, and an infrastructure base that has managed to survive the onslaught of Robert Mugabe’s destructive policies. With a substantial, well-managed transition budget programmed for quick-impact implementation, future U.S. foreign assistance can advance more quickly into traditional development programs with a goal of eventual “graduation.”

$45 million Economic Support Fund (ESF)

Governing Justly and Democratically ($9.1 million)

Funding is targeted at re-establishing and strengthening democratic institutions, processes and systems, and to build peaceful consensus on democratic reform. Institutional reform programs will include provincial and local government assistance aimed at enhancing efficiency within the branches of government while improving interaction between them. This assistance will complement on-going technical assistance at the legislative and executive level. Funding will also support preparatory elections activities. The next elections are expected to be held within 18-24 months. Illustrative activities include assistance to repeal and/or revise unjust laws, promote national dialogue and referenda on key issues, advocate for the protection of human rights, institutionalize a credible electoral system, strengthen civil society’s ability to advocate on its own behalf, and create the environment and journalistic skills for free media to operate.

Investing in People ($18 million)

Increased social assistance, primarily safety net support, will be provided to protect the vulnerable Zimbabwean population during the process of stabilization. Social assistance will be centered around improving rural livelihoods through income-generation activities; creating employment opportunities for youth and the general populace (through quick win projects such as public works initiatives); improving national and local level safety net structures; and, assisting returnees to return and reintegrate into society. In addition, funding will support emergency health interventions aimed at maintaining the collapsing public and private health care system. Toward this end, planned assistance would be more humanitarian rather than developmental, and would be focused on procurement of essential commodities, in-service training, logistics management, control of potential epidemics, and maternal and child health.

Economic Growth ($17.9 million)

Demonstrated commitment to political and economic reform will open the way for International Financial Institutions to undertake a large-scale macro-economic recovery program. USAID will provide targeted technical assistance in support of monetary and fiscal policy reform (e.g., establishment of effective budgetary policy and revenue collection systems) and economic revitalization, specifically for the agricultural sector.


BURMA ($13 Million)

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Account
($ in thousands)
FY 2008 Estimate
FY 2008
Supp

FY 2009
Bridge Supp
*FY 2009 Request
FY 2009
Supp Request
Global Health and Child Survival (GHCS)
2,083
0
0
2,100
0
Development Assistance (DA)
717
0
0
0
0
Economic Support Fund (ESF)
12,895
0
2,800
13,750
13,000
TOTAL
15,695
0
5,300
15,850
13,000


*FY 2009 country allocations have not been determined and will be transmitted to Congress at a later date as required by section 653 (a) of the Foreign Assistance Act of 1961.

Summary

Supplemental funding of $10 million is requested for continued cyclone response in Burma. This funding will meet ongoing humanitarian needs, demonstrate U.S. commitment to the Burmese people, and support individual and community recovery in the cyclone-affected area.

In addition, humanitarian assistance programs along the Thailand-Burma border support over 140,000 people in refugee camps, approximately 500,000 displaced persons inside Burma along the border with Thailand, and approximately one million displaced persons and migrants on the Thailand side of the border. Three million ESF (plus an additional $3 million in Migration Refugee Assistance requested separately) is required to support critical life-sustaining assistance programs.

$13 million Economic Support Fund (ESF)

Humanitarian Assistance ($13 million)

Supplemental funding would support a program inside Burma to provide community-based socio-economic recovery, livelihoods rehabilitation, and other post-disaster assistance in a continuing humanitarian response to the May 2008 cyclone. The assistance would be delivered through non governmental organization (NGO) partners already operating or recently working in Burma. No assistance will flow to or through the Burmese government, its bureaucracy, or regime-affiliated organizations. The humanitarian assistance would be delivered in a manner that empowers communities and non-governmental civil society organizations to provide goods and services. Programs would build on current post-Nargis response activities that support livelihood rehabilitation and restoration, including cash-for-work activities to rehabilitate villages and communities, income generation, management and skills training for survivors, and cross-village training to maximize associational networks and develop trust. The programs may support community-based infrastructure tied to livelihood activities, but would not support major infrastructure or reconstruction.

On the border, $3 million is requested to stabilize funding for humanitarian activities for Burmese refugees and migrants in Thailand and internally displaced persons (IDPs). Last year’s cost increases due to commodity prices and exchange rates forced this program to cut service provision across its entire program, including cutting food rations. Supplemental funding will be used to improve access to health and education services for the neediest refugee and migrant populations in Thailand. These resources will support IDPs, including health clinics and health surveillance and information systems, and training for health workers. Assistance will also be provided to increase organizational capacity and management skills of non-governmental organizations and refugee, migrant, and IDP community leaders; to improve coordination and foster long-term planning and advocacy on IDP issues amongst stakeholders working on refugee issues through information-sharing forums; and to raise awareness of migrant rights and obligations through national institutions in Thailand. The principal implementer is the International Rescue Committee.


NORTH KOREA ($142 Million)

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Account
($ in thousands)
FY 2008 Estimate
FY 2008
Supp

FY 2009
Bridge Supp
*FY 2009 Request
FY 2009
Supp Request
Economic Support Fund (ESF)
53,000
53,000
15,000
2,000
95,000
Nonproliferation, Anti-Terrorism, Demining and Related Programs (NADR)
25,000

0
0
40,000
47,000
TOTAL
78,000
53,00
15,000
42,000
142,000


*FY 2009 country allocations have not been determined and will be transmitted to Congress at a later date as required by section 653 (a) of the Foreign Assistance Act of 1961.

Summary

The United States seeks the earliest possible peaceful and verifiable denuclearization of the Korean Peninsula and is committed to peace, security, and regional stability in Northeast Asia. The United States also looks forward to improvements on the Korean Peninsula that will lead to a situation where individuals in North Korea can live in freedom and prosperity. The North Korean rocket launch on April 4 reiterates the importance of denuclearization. FY 2009 supplemental funding for Phase III of the Six-Party Talks will ensure that the United States is prepared to take timely and effective action to implement the dismantlement of North Korea’s nuclear facilities. It will also ensure the United States is in a position to provide North Korea with continued, timely energy assistance if North Korea takes the needed steps to fully denuclearize.

$95 million Economic Support Fund (ESF)

Economic Growth ($95 million)

Supplemental ESF funds will support the purchase and shipment of heavy fuel oil (HFO) to be provided in return for nuclear dismantlement actions by North Korea leading to full denuclearization. This cost estimate provides for the purchase and delivery of four shipments of 50,000 tons of heavy fuel oil and will require accompanying notwithstanding authority.

$47 million Nonproliferation, Anti-Terrorism, Demining and Related Programs (NADR)

Peace and Security ($47 million)

Supplemental NADR funds appropriated for the Nonproliferation and Disarmament Fund (NDF) will support State Department Phase III dismantlement activities; specifically, labor ($28 million), equipment ($9 million), program support costs in Pyongyang and Embassy Beijing ($2 million), and logistical support inside North Korea ($8 million). Logistical support would include travel, training, equipment, translation, examining methods to disable and dismantle nuclear-related facilities, and removal of fissile material from North Korea.


GEORGIA ($242.5 Million)

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Account
($ in thousands)
FY 2008 Estimate
FY 2008
Supp
*FY 2009 Request
FY 2009
Supp Request
Assistance for Europe, Eurasia and Central Asia (AEECA)
0
0
0
242,500
Economic Support Fund (ESF)
0
365,000
0
0
FREEDOM Support Act (FSA)
50,091
0
52,000
0
Foreign Military Financing (FMF)
9,000
0
11,000
0
Global Health and Child Survival (GHCS)
750
0
850
0
International Military Education and Training (IMET)
761
0
1,000
0
Nonproliferation, Antiterrorism, Demining and Related Programs (NADR)
3,210
0
2,200
0
TOTAL
63,812
365,000
67,050
242,500


*FY 2009 country allocations have not been determined and will be transmitted to Congress at a later date as required by section 653 (a) of the Foreign Assistance Act of 1961.

Summary

Major economic, social and political consequences from the August 2008 conflict with Russia continue to resonate in Georgia. Additional U.S. assistance to help stabilize Georgia’s economy and increase public confidence in democratic governance remains critical. This supplemental request will allow the U.S. Government to meet its formal $1 billion commitment to Georgia, and supports significant needs highlighted in the World Bank’s Joint Needs Assessment (JNA): 1) resettlement of internally displaced persons (IDPs) and other social needs that place an unsustainable burden on Georgia’s fiscal resources; and, 2) immediate core investments – infrastructure for health, education, housing, transport and energy – to address new conflict-related problems. This request also builds on efforts to consolidate democratic and economic reforms, restore border security and law enforcement capabilities, and strengthen democratic institutions and the rule of law.

$242.5 million Assistance for Europe, Eurasia and Central Asia (AEECA)

Peace and Security ($20.5 million)

The August 2008 conflict with Russia revealed deficiencies in the infrastructure, resources and skills of the Georgian law enforcement sector, including gaps in Georgia’s ability to maintain border security and the Ministry of Internal Affairs’ (MOIA) ability to operate in a crisis situation. The Georgian Coast Guard suffered substantial losses of infrastructure and equipment that hampers Georgia’s ability to address threats, enforce maritime-related laws, and prevent trafficking in persons and illicit goods. Following the departure of the Russian army from Shida Kartli, it became essential to ensure an effective law enforcement presence, robust patrolling, public-police partnerships, and timely criminal investigations to enable successful reconstruction efforts, as well as safe return of IDPs to their homes. U.S. assistance through the Department of State’s Bureaus of International Narcotics and Law Enforcement (INL), Political-Military Affairs (PM), and International Security and Nonproliferation (ISN) as well as the Department of Homeland Security’s Georgia Border Security and Law Enforcement (GBSLE) program has begun to restore the Coast Guard’s capabilities; enhance the effectiveness of the border police on the Russian-Georgian border and at border checkpoints; and improve the professionalism and capabilities of law enforcement personnel. This supplemental assistance will build on the USG’s efforts in this sector, support government securing of green border areas, and improve the capabilities, professionalism and interoperability of law enforcement organizations. “Legacy minefields” will be cleared to reduce threats to civilian populations and quickly return the land to productive use, providing much needed economic benefit to those involved in agricultural activities.

Governing Justly and Democratically ($20 million)

While the Rose Revolution ended Georgia’s worsening democratic performance, public dissatisfaction and protests gained momentum in November 2007. The conflict with Russia further exposed weaknesses in the country’s democratic institutions and illuminated the need to increase transparency, accountability and responsiveness to the public; enhance the public’s access to information through impartial media sources; increase independence and efficiency within the judiciary; and develop the capacity of the public sector, civil society and media. U.S. assistance will work to address these weaknesses while deepening support for needed reforms. Supplemental funding will expand assistance in four key areas: civil society, media development, governance, and rule of law. Assistance will improve curriculum development to enable a next generation of leaders, journalists, public policy experts and advocates to grow, and expand core assistance efforts related to transparency in government, judiciary and court administration into the regions.

Investing in People ($68.5 million)

While relatively little direct damage was sustained to Georgia’s health and education infrastructure during the August conflict, significant stress was placed on both sectors due to large numbers of individuals displaced by the conflict and their loss of homes and livelihoods. U.S. assistance, through the United States Agency for International Development (USAID), State’s Bureau for Population, Refugees and Migration (PRM), and the U.S. Embassy’s Public Affairs Section, has begun to support improvements for IDP housing and living conditions, to increase the quality of and access to healthcare services and infrastructure, to enhance the government’s capacity to provide adequate social services to the citizens of Georgia, and to promote better healthcare and education opportunities for disabled and orphaned children. Supplemental funding will improve the living conditions of approximately 5,000 additional “old caseload” IDPs (those IDPs who were displaced from Abkhazia and South Ossetia during the conflicts of the early 1990s), and continue technical assistance to the Ministry of Health to increase the government effectiveness and transparency in providing quality health and social services. U.S. assistance would mobilize further access to credit to enable hospital investors to renovate, upgrade and construct hospitals.

Economic Growth ($133.5 million)

The August conflict and the global financial crisis have severely constrained Georgia’s economic growth, which in turn threatens the country’s political and economic stability. Georgia’s current account deficit rose to an estimated 23% of GDP in 2008. After six years of positive fiscal balance, Georgia’s fiscal balance deteriorated to a deficit of 2% of GDP in 2008 and is estimated to decline to 3% of GDP in 2009. Additionally, the Joint Needs Assessment indicates that infrastructure systems nationwide “are in need of major overhaul” and recommends that the government develop, restore, and improve primary and secondary transportation and energy infrastructure. The USG has focused on key interventions to stabilize the economy, enable the Government of Georgia to meet its budgetary commitments, and begin to expand energy diversification and municipal infrastructure. The requested supplemental funding will address, on a larger scale, crucial transportation and electricity infrastructure needs, further increase access to financial services, promote rural development, and continue to support the Government of Georgia’s economic reform agenda. U.S. assistance will help improve electrical power system stability by lessening Georgia’s dependence on the Enguri hydropower station in disputed Abkhazia; complement existing Millennium Challenge Corporation (MCC) funding by extending the new road network from Akhaltsike (where MCC-funded construction will end) to Batumi, thereby completing an alternative east-west transport corridor; further increase Georgia’s agricultural competitiveness; assist the government to make rapid improvements to revenue and budget administration systems; further streamline regulations and strengthen regulatory capacity; and other programs that will support Georgia’s economic recovery. U.S. assistance would also provide mechanisms to enhance trade financing for businesses and expand financing to business start-ups and microenterprises in rural areas, including those owned by IDPs and other vulnerable populations.


IRAQ ($482 Million)

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Account
($ in thousands)
FY 2008 Estimate
FY 2008
Supp

FY 2009
Bridge Supp
*FY 2009 Estimate
FY 2009
Supp Request
Democracy Fund (DF)
0
75,000
0
0
0
Economic Support Fund (ESF)
14,960
424,000
302,500
0
449,000
International Disaster Assistance (IDA)
50,000
0
45,000
0
0
International Military Education and Training (IMET)
0
0
0
0
2,000
International Narcotics Control and Law Enforcement (INCLE)
0
85,000
0
0
20,000
Nonproliferation, Anti-Terrorism, Demining and Related Programs (NADR)
15,980
0
4,500
20,000
11,000
TOTAL
80,940
584,000
352,000
20,000
482,000


*Section 7042(a) of P.L. 111-8 prohibits funding appropriated in P.L. 111-8 to be made available for assistance to Iraq, except NADR funds for the removal and disposal of landmines and other unexploded ordnance, small arms and light weapons in Iraq. FY 2009 country allocations have not been determined and will be transmitted to Congress at a later date as required by section 653 (a) of the Foreign Assistance Act of 1961.

Summary

President Obama has stated that Iraq’s future, and the long-term success of Iraq, depends upon decisions made by the Iraqi people. As the United States responsibly withdraws our troops from Iraq, continued U.S. civilian efforts are needed to ensure we consolidate the security gains our troops have made and help Iraq assume full responsibility for its own country. Better, more accountable governance and stronger adherence to the rule of law will contribute to improved security and stability. U.S. programs will help support Iraqi national elections planned for late this year or early 2010, facilitate real political accommodation, spur private sector growth and diversify the economy, and improve financial management of the Iraqi budget process so the Iraqi people can make wise investments in the country’s physical and human infrastructure. The FY 2009 supplemental represents a shift in how the United States will be providing its assistance to Iraq, emphasizing technical assistance to enable Iraqis to assume even more responsibilities. Reflecting that shift, the supplemental funding requested is intended to: promote local and national governance reforms which will enable Iraqi leaders to govern more justly, transparently, and effectively; assist newly elected provincial and national officials to form cohesive governments locally and nationally, and learn to work with the opposition; bolster Iraq’s private sector through both micro-lending and macroeconomic reforms; and provide counter-terrorism and capacity building assistance at the provincial level to help Iraq contribute to regional as well as internal stability.

$449 million Economic Support Fund (ESF)

Peace and Security ($45 million)

ESF funding is requested for the Quick Response Fund (QRF), an important mechanism to strengthen U.S. relations with local Iraqi leaders, provide tools for newly-elected local officials to build their own capacity and leverage resources; encourage expansion of civil society; and help provide essential services to the local population. These programs are done in partnership with Iraqis and, for projects with governmental entities, will require Iraqi matching funds. With the supplemental funds requested, Provincial Reconstruction Teams will rely on the QRF to support local entities with small grants and procurements. These grants and procurements will be directed at promoting more responsible and accountable local governments and increasing the self-reliance of the Iraqi people.

Governing Justly and Democratically ($262 million)

In January 2009, Iraq held successful provincial elections that sent a powerful message about how far the Iraqi people have come in pursuing their aspirations to live in a peaceful, stable, democratic country. U.S. assistance funding was critical in supporting efforts to build and sustain a robust civil society. Supplemental funding is necessary to continue to support credible elections, further the development of just and accountable democratic institutions in Iraq, including civil society and independent media, and local and national political institutions including the legislature ($112 million). This funding will also support political competition and consensus building as Iraqis address some very difficult political challenges. The USG seeks to encourage reconciliation and increase competence by strengthening nascent democratic institutions into ones that are sustainable, responsive to the public, and have the consent of the Iraqi people. Because credible, transparent, free and fair electoral events in late 2009 and 2010 are critical to progress and stability throughout the country, the majority of this funding will be dedicated to supporting credible elections. U.S. programs will support training of election monitors, get-out-the-vote and voter education campaigns, non-partisan capacity building for a broad range of political parties, supporting the media's ability to report freely and objectively on elections, and extensive support to Iraq’s Independent High Electoral Commission, deferring however to the Iraqi government to assume the bulk of the logistics cost. These funds will also be used to improve anti-corruption measures in the provinces; to support the development of a more robust civil society and independent media; and to assist the Council of Representatives’ capacity for consensus building, executive oversight, policy analysis, bill drafting, and other legislative and capacity building activities.

In addition to traditional governance and democracy building programs, supplemental funds will also be used to improve the capability and effectiveness of Iraqi government officials and institutions at the local, provincial, and national levels. The Local Governance Program ($55 million) and the Community Action Program ($35 million) are necessary to support the success and stability of local governments in a federalist system that: balances local and national interests; improves oversight of the delivery of essential services; and is responsive to the public. At the national level, ministerial capacity development programs ($60 million) will continue to support critical civil service reforms, such as civil service reform legislation, and improve core national ministry public sector functions including transparent financial management systems, effective public budgeting, and procurement. These programs also will strengthen the capacity of provincial Directors General from line ministries, as part of a comprehensive approach, to enhance linkages between local, provincial, and central structures of government following the successful provincial elections in January 2009.

Investing in People ($8.5 million)

Funding is requested for the Marla Ruzicka Iraq War Victims Fund ($3.5 million) to assist civilian victims of armed conflict. Funding will also support programs to continue assisting Iraqi widows ($5 million).

Economic Growth ($120.5 million)

The Iraqi economy has experienced tremendous growth the past few years, but is in a precarious position because of falling oil prices, the worldwide financial crisis, and the planned withdrawal of U.S. troops that impacts Iraqis with jobs supporting our soldiers. A diverse economy will help Iraq become stable, prosperous, and peaceful. Funding is requested to reinforce broad-based economic growth and diversification, encourage commerce and trade, and expand market access to create jobs and provide legitimate sources of income. Programs will facilitate the long-term shift to a market-based economy by improving access to capital and human resource development. Funding is also requested to help promote policy, legal, and regulatory reforms ($50 million) necessary to improve the Iraqi government’s ability to create an effective legal and regulatory regime which is necessary for economic growth. Additionally, the Provincial Economic Growth program ($27.5 million) will continue its support to micro-enterprises and expand lending operations to small and medium enterprise (SME) at private Iraqi banks through the Iraqi Company for SME Finances, a lending facility established with the support of nine Iraqi banks. Funds will also continue to support Iraq’s World Trade Organization (WTO) accession efforts and help integrate Iraq into the world economy. Funding for agriculture ($43 million), the largest non-government source of employment in Iraq, will support cooperatives, associations, and the Agricultural Bank to assist in modernizing credit services for production, processing, and marketing. This funding will also build capacity through training, joint government-industry activities, demonstrations, study tours, and seminars to promote the transfer of necessary skills and technology. Additionally, this funding will be used to continue building up Iraq’s agricultural extension services.

Program Support ($13 million)

Funding is requested to support monitoring, evaluation, and reporting of USAID’s ongoing programs ($8 million), and to analyze the economic, security, and political situation across provinces ($5 million).

$20 million International Narcotics Control and Law Enforcement (INCLE)

Peace and Security ($5 million)

The Department is requesting funds to support the hiring of dedicated subject matter experts to work specifically on police transition planning. These planners will coordinate with military counterparts from Multinational Forces-Iraq (MNF-I) and will be involved in overseeing the current program of support to MNF-I, defining future requirements based on on-the-ground assessments, defining statements of work for a future program, and engaging with the military and with bilateral and multilateral partners. The increase in State Department staff is a critical element of the interagency process underway to craft the way forward for future USG engagement in assisting the Government of Iraq as it continues to professionalize its civilian security forces.

Governing Justly and Democratically ($12 million)

Funding is requested for programs that will continue to help the Iraqi government build capacity as it erects a more effective and fair criminal justice system with broad legitimacy and consent of the Iraqi people. Assistance to the judiciary ($9 million) focuses on judicial training, judicial security, and court administration. Judicial training programs are designed to improve the functioning of judges and investigators in Iraq’s criminal justice system. Additionally, rule of law advisors ($3 million) will provide technical assistance to the judiciary at both the federal and provincial levels, advising judges and prosecutors in order to improve coordination and management of cases.

Program Support ($3 million)

The State Department Bureau of International Narcotics and Law Enforcement Affairs (INL) is undertaking a wide range of projects in Iraq related to the development of the criminal justice system. To ensure appropriate project development and management, as well as effective enforcement of internal controls and oversight, it needs sufficient staffing and related support. Supplemental funds will be used to pay salaries, benefits, and related expenses (e.g., travel, office supplies) of direct-hire staff to carry out program planning, design, implementation, monitoring, and evaluation.

$2 million International Military Education and Training (IMET)

Peace and Security ($2 million)

Funding is requested to continue military education and training for Iraqi Security Forces ($2 million) to further develop the values and the capacity of a professional Iraqi military.

$11 million Nonproliferation, Anti-Terrorism, Demining, and Related Programs (NADR)

Peace and Security ($11 million)

With the Iraqi Government concluding a bilateral Security Agreement with the United States and with the anticipated drawdown of U.S. combat troops, supplemental funds requested will be critical for training Iraqi Security Forces to provide stability to Iraq, protect U.S. diplomats and other civilians in Iraq ($6 million), and improve terrorist interdiction capabilities ($0.5 million). Supplemental funds also will build the capacity of the Government of Iraq to improve border security and export controls ($2 million), control the spread of WMD technologies, equipment, and material ($1 million), and properly dispose of nuclear waste ($1.5 million).


LEBANON ($98.4 Million)

If a scroll bar appears below the following table, swipe the table to move left/right of the dashed line.
Account
($ in thousands)
FY 2008 Estimate
FY 2008
Supp

FY 2009
Bridge Supp
*FY 2009 Request
FY 2009
Supp Request
Economic Support Funds (ESF)
44,636
0
0
67,500
0
Foreign Military Financing (FMF)
6,943
0
32,500
62,200
98,400
International Narcotics Control and Law Enforcement (INCLE)
496
0
0
6,000
0
International Military Education and Training (IMET)
1,428
0
0
2,130
0
Nonproliferation, Anti-Terrorism, Demining and Related Programs (NADR)
4,745
0
0
4,600
0
TOTAL
58,248
0
32,500
142,430
98,400

*FY 2009 country allocations have not been determined and will be transmitted to Congress at a later date as required by section 653 (a) of the Foreign Assistance Act of 1961.

Summary

U.S. assistance to Lebanon supports the government’s ability to exercise sovereignty over all Lebanese territory. To accomplish this, the United States Government (USG) will work to enhance and professionalize the Lebanese Armed Forces (LAF) through training and equipping them to be the credible source of security throughout the country. Hizballah’s militias and militant groups in Palestinian refugee camps, such as Nahr al-Barid and Ain al-Helwa camps, routinely act outside government authority to destabilize Lebanon and the region and prevent the Government of Lebanon from maintaining a monopoly over the use of force. Hizballah’s incursion into Israel in the summer of 2006 provoked an Israeli military response that devastated Lebanon's infrastructure and raised tensions across the Middle East. Supplemental security assistance funds will help maintain and expand current efforts to enhance the government's ability to prevent or respond to activities of militant groups. As part of a longer term U.S. goal of strengthening the LAF, a key institution of the Lebanese state, this supplemental funding will help ensure that the U.S. can continue to provide robust security assistance until security goals are met. It is vital that the Government of Lebanon (GOL) be ready and able to extend its presence, provide services, and extend its judicial authority in order to legitimately govern contested spaces.

$98.4 million Foreign Military Financing (FMF)

Peace and Security ($98.4 million)

The LAF remains thinly stretched, unable to fully implement United Nations Security Council Resolution 1701, and ill-equipped to respond effectively to emerging crises. Supplemental funding will continue to address urgent LAF requirements and programs supported with FY 2009 Bridge Supplemental funds aimed to improve the stability and security of Lebanon. These efforts include providing the LAF new capabilities specific to its counterterrorism and border security missions not addressed with previous funding as well as sustaining a comprehensive training program—launching this summer—designed as the core of international security sector reform efforts in Lebanon.

Supplemental funding will provide additional equipment and training to improve the Lebanese government’s ability to prevent cross-border smuggling now that the government plans to expand a pilot border security program, including secure communications equipment, additional tactical unmanned aerial vehicles for border surveillance, and individual equipment including night vision systems to enhance the LAF’s night and inclement weather capabilities. Without these items, the undermanned LAF will be unable to monitor the entirety of its smuggling-plagued border with Syria or deal with the myriad of criminal syndicates and militant groups moving everything from cigarettes to long-range rockets across the frontier. In addition, supplemental assistance will fund the acquisition and refurbishment of a small number of armed coastal patrol crafts to help the LAF prevent smuggling across its maritime boundary.

Assistance will also anchor nascent efforts to address the LAF’s critical lack of ground and air fire support assets. This is a key weakness in the fight against Fatah al-Islam militants that led to the leveling of the Nahr al-Barid refugee camp in summer 2007. This assistance will provide funding to programs to upgrade and purchase a limited number of new armored vehicles, artillery assets, and close air support aircraft with precision weaponry.

Supplemental funding also will focus on continuing to improve LAF mobility by purchasing additional trucks and armored vehicles as well as spare parts that will allow the LAF to cover more ground with fewer troops. The equipment will help the Lebanese government maintain law and order, prevent demonstrations from erupting into violence, and contain or confront threats from armed groups throughout the country.

Finally, after two years of preparation, supplemental funds will allow the launch of a CENTCOM-directed comprehensive training program in mid-2009 that over the course of several years will transform the LAF into a lean but credible force capable of confronting internal threats to Lebanon’s security and supporting political progress towards the disarmament of all militant groups in Lebanon. The program will provide basic and advanced skills, restructure the LAF, and serve as an important first step toward comprehensive security sector reform in Lebanon. Supplemental funding will also fund trainers, basic training equipment, and supplies to ensure effective U.S. manage and monitor the program.


WEST BANK AND GAZA ($715 Million)

If a scroll bar appears below the following table, swipe the table to move left/right of the dashed line.
Account
($ in thousands)
FY 2008 Estimate
FY 2008
Supp

FY 2009
Bridge Supp
*FY 2009 Request
FY 2009
Supp Request
Economic Support Fund (ESF)
217,986
171,000
150,000
75,000
556,000
International Narcotics Control and Law Enforcement (INCLE)
0
18,000
50,000
25,000
109,000

Nonproliferation, Anti-Terrorism, Demining and Related Programs (NADR)
0
0
0
0
50,000
TOTAL
217,986
189,000
200,000
100,000
715,000


*FY 2009 country allocations have not been determined and will be transmitted to Congress at a later date as required by section 653 (a) of the Foreign Assistance Act of 1961.

Summary

The United States is committed to a comprehensive peace between Israel and its Arab neighbors, including a two-state solution to the Israeli-Palestinian conflict. With the requested FY 2009 Supplemental funds the United States will coordinate with the Palestinian Authority (PA) to address critical humanitarian, budgetary, security, economic and social development, and infrastructure needs. While the funds will respond to immediate and urgent needs, this assistance is a foundational part of the longer-term approach to fostering conditions in which a Palestinian state can be fully realized.

Based on a rapid damage and needs assessment, the PA has drafted a $2.8 billion “Early Recovery Plan” for Gaza. Implementation of this plan will bolster the Palestinian Authority’s leadership. The PA has identified priority projects which require financial resources beyond the PA’s current ability. At the March 2009 Sharm al-Sheikh Donors Conference, which brought together the international community and the PA to address this plan and the multi-year overarching Palestinian Reform and Development Plan (PRDP), the U.S. Government (USG) pledged over $900 million toward the priorities set out by the PA, including $200 million in ESF budget support for the Palestinian Authority.

In Gaza, $156 million in project funding will address basic human needs and assist families in Gaza to avoid dependence on humanitarian distributions. In all cases, USG assistance programs in Gaza will work with private sector and organizations, and public international organizations, to meet humanitarian objectives and will be carried out in a transparent, accountable manner through proven project mechanisms.

Implementation of programs in Gaza is dependent on the establishment of a durable ceasefire, the creation of an operating environment in which Hamas does not interfere with USG-funded programs and activities, and the ability to move essential materials and commodities into Gaza. We will work with the Palestinian Authority and our implementing partners to follow established safeguards that will ensure that our funding is only used where, and for whom, it is intended.

$556 million Economic Support Fund (ESF)

Investing in People ($347 million)

In order to maintain the level of support for PA programs and priorities in the West Bank, FY 2009 supplemental funding of $93 million will continue Investing in People programs in the West Bank to help improve the quality of Palestinian service delivery systems. Funding will focus on health, water supply and sanitation, and education, including essential infrastructure investments. Our support for integrated institutional capacity building will improve the quality of services at PA-controlled public and approved non-governmental hospitals, clinics and health education institutions, promote more effective management practices, and improve community health. Additional investments in basic education and complementary youth-oriented programs will support the development of a democratic Palestinian society and equip Palestinian youth to find employment in the private sector.

Budget support to the PA through a $200 million cash transfer will assist with the PA’s single highest priority and avoid fiscal insolvency which could lead to the collapse of the PA as a governing authority. This $200 million in USG budget support is expected to follow the model of previous FY 2008/2009 cash transfers by paying PA debt to private sector creditors.

In Gaza, USAID will provide $54 million in humanitarian assistance for basic human needs and job creation programs to provide immediate livelihood support to Gazan families while restoring essential services provided by NGO and other private sector actors. The Palestinian Authority, United Nations agencies, international organizations and NGO post-conflict assessments have revealed extensive damage to private property and facilities. An estimated 60 percent of agricultural land was damaged or destroyed; 700 private sector production facilities were damaged or destroyed, resulting in an estimated $140 million dollars in damage; two private schools were destroyed and fourteen were damaged; and as many as six NGO and private hospitals and numerous clinics were damaged. USAID will assist in restoring essential services provided by NGO and private sector organizations, and assist in reviving private sector operations disrupted or destroyed during the conflict in order to address basic human needs and provide relief to the general population. Through labor intensive projects USAID will assist private sector partners, non-public sector schools, and health facilities in cleaning up and restoring their operations. Support will be provided to reopen private schools and provide tuition assistance for students in private schools to relieve the economic burden on families in Gaza and ensure the continued existence of the schools.

Economic Growth ($80 million)

To support PA priorities in the West Bank, FY 2009 supplemental funding of $60 million in Economic Growth assistance will increase employment opportunities and improve the prospects for social stability in the West Bank through programs that develop private enterprises and promote investment. Efforts to improve the movement of people and goods will bolster the economy and promote trade. USG support for road construction and renovation efforts, and other transport-related infrastructure, will help ease the movement of goods and services throughout the West Bank.

In Gaza, priority programs will provide $20 million in supplemental funding to support household-level economic recovery, reduce food insecurity, and support microenterprises operating at the household level. The household economic revitalization will increase low scale agricultural and livestock production to improve household food security and to increase food supplies in local markets. Home-based enterprises will be restarted through strategic grants and credit programs to generate household income and reduce dependency on humanitarian assistance distributions. Destruction of local food production has caused a significant increase in food prices. USAID, working through local NGOs and private producer cooperatives, will repair and replace destroyed agricultural infrastructure and restore local food production capacity and create needed employment opportunities. The repair and replace program will also help small and medium size companies to renew operations and generate employment.

Governing Justly and Democratically ($51 million)

Building on the assistance programs initiated last year, FY 2009 supplemental funding of $30 million in Governing Justly and Democratically assistance for West Bank programs will support essential governance and rule of law programs in order to increase public confidence in the credibility of Palestinian Authority (PA) institutions. Technical assistance and in-kind grants will be provided to local governments, private broadcast media, and non-governmental organizations. These programs work to improve the ability of civil society and local governments to respond to citizen needs. Assistance will enhance the PA’s ability to provide law and order by strengthening PA justice sector institutions and increasing the public’s confidence in the justice system. As needed, funding will be provided to electoral assistance programs. Funding will also support programs that strengthen management systems and improve the skills of staff in key Palestinian ministries, and increase the ability of the PA to respond effectively to constituent needs.

In Gaza, USAID will provide $6 million in supplemental funding to address basic human needs, working with non-Hamas municipalities and communities with which USAID has partnered in the past and which have experienced extensive damage. Assistance will focus on small-scale community improvement and rebuilding projects. Funding will also allow replenishment of $15 million in West Bank program funds that were used to provide early humanitarian assistance grants to NGOs during the conflict and immediate-post conflict period.

Humanitarian Assistance ($73 million)

In order to maintain the level of support for PA programs and priorities in the West Bank, building on the assistance programs initiated last year, FY 2009 supplemental funding of $12 million will be used for Humanitarian Assistance in the West Bank, including the provision of health commodities such as medicines, medical supplies, and equipment. These supplemental funds will also allow the United States to extend its current grant with the World Food Program (WFP) beyond the summer of 2009 to provide food aid to the neediest Palestinians.

In Gaza, USAID will provide $61 million in supplemental funding for direct humanitarian assistance through NGO and international organization partners. Funding will allow continued food assistance in Gaza and replenishment of the WFP program for funding directed to current Gaza emergency distributions in order to maintain our level of commitment to the PA for West Bank programs. USAID will provide urgent medical assistance, including health commodities such as pharmaceuticals, medical supplies, medical equipment and spare parts, to approved NGO partner organizations that are providing clinic, hospital and rehabilitation care services. USAID will provide direct grants and in-kind support through approved NGO partner organizations for “non-food item” humanitarian assistance.

Program Support ($5 million)

Supplemental funding of $5 million will be used for essential Program Support costs. Funds are required for program management and security to effectively implement, manage, and oversee this large scale and quick-impact assistance program.

$109 million International Narcotics Control and Law Enforcement (INCLE)

Peace and Security ($109 million)

This supplemental request fulfills existing security assistance requirements and responds to new opportunities in the Palestinian Territories, supporting efforts by the Deputy Envoy for Security, LTG Dayton. The bulk of the request is to sustain and accelerate the critically important and effective effort to train, equip, and garrison the Presidential Guard and Special Battalions of the National Security Forces to crackdown on terrorism and bolster and backstop the efforts of the Palestinian Civilian Police to maintain law and order. In addition, the request contains funds to begin developing new programs that the European Union and other donors are not supporting, but have been identified by the Special Envoy for Middle East Peace, Senator Mitchell, as critical to the overall effort to create a competent and professional Palestinian Authority Security Force. Accordingly, the principal areas of focus for supplemental security assistance will be to fully develop two more National Security Force Special Battalions; train a second Presidential Guard battalion; train, equip, and support civil defense first responders; sustain and expand security and law enforcement-related specialized training; develop a border integrity capability; and augment program development and support funding to address expanded logistical, administrative, and related requirements of the program.

This supplemental request also provides law enforcement-related training and equipment to enhance border integrity along the Gaza border. This assistance is intended to help further stabilize and control this border following the Gaza conflict. Funding would be used for training in a full range of border integrity disciplines and will provide non-lethal equipment to these trained forces.

$50 million Nonproliferation, Anti-Terrorism, Demining and Related Programs (NADR)

Peace and Security ($50 million)

Programs funded with NADR will support border security programs to prevent smuggling in Gaza.