Donors Pledge USD 3.6 Billion For Ethiopia’s SDPRP
Addis Ababa, December 09, 2002 (WIC)- Multi-lateral institutions and
various donor countries have pledged USD 3.6 billion help finance the country
Sustainable Development And Poverty Reduction Program (SDPRP) in the years
2002/03 to 2004/05.
The pledges came at the end of two day Fourth Consultative
Group Meeting, organized by the government in co-operation with the World Bank,
UNDP and the Development Assistance Group (DAG).
Reading out government position on behalf of the Prime
Minister, State Minister of finance and Economic Development, Dr. Mulu Ketsela
said the resource which was pledged in the form of grants and
concessional loans would help the government in maintaining macroeconomic
stability, reducing both urban and rural poverty through Agricultural Development
Led Industrialization (ADLI), improving the enabling environment for private
sector development, building human capacity and fighting HIV/AIDS as well as
furthering decentralization and under going capacity building, among others.
She said those pledges indicated a gradual shift towards
direct budget support, while recognizing the importance of project and sectoral
She said Prime Minister Meles has welcomed the opportunity
to conduct a broad ranging dialogue on the SDPRP with representatives of the
international development community and underlined the political commitment to
Meanwhile donors commended the government for its emphasis
on the private sector as a vital partner for growth and poverty reduction. They
encouraged government to deepen public-private partnerships and to establish
mechanisms to institutionalize the participation of civil society.
As part of the pledges The World Bank has was currently
developing a CAS for FY 2003-2005 in close consultation with the government and
stakeholders to disburse USD 1.5 billion in the base case, including up to 40
per cent in grants as a debt –vulnerable low income country while the European
Commission and the European Investment Bank foresee a total of new commitment
for 2003 that could go up to euro 400 million and the US has also pledged
non-emergency assistance which will range from $80 to $90 million for 2003..
Canada, Japan, Ireland, African Development Bank (ADB),
Austria and Sweden said they would soon announce their pledge following the
completion of their respective Country Assistance Strategies (CAS) and after
consultations with the Ethiopian government and approval by their own
presses briefing held at the conclusion of the meeting, World Bank Representative
to Ethiopia, Isack Diwan said although an estimated USD four billion was
required to fund Ethiopia’s SDPRP over the coming three years, the remaining
gap will be filled when the OPEC fund members and Gulf States announce their
pledges during the consultative group meeting to be held soon.
Minster of Finance and Economic Development, Sufian Ahmed said on his part the government has a good financial administration in place to manage the pledged financial resources.