Iraq - Commission announces further EUR 11 million for reconstruction

The European Commission decided this week to release two further contributions totalling €11 million, for reconstruction in Iraq, as part of the €200 million pledged from the EU budget until the end of 2004. This second EC contribution to Iraq's reconstruction since the Madrid Donor's Conference on 24 October, aims at helping Iraqis voice their own priorities in the political and reconstruction processes. It delivers on the European Union's commitment to strengthen the multilateral framework for Iraqi reconstruction, including the UN role in the political and constitutional process.

Commissioner Patten said "As the Madrid Conference confirmed, there is no shortage of donor funding for reconstruction in Iraq. But for Iraqis to lead the political and economic reconstruction of their country, they need to be able to articulate their priorities and manage external assistance as it is received. These grants, channelled via the multilateral framework, demonstrate that the EU is meeting its Madrid pledge and rapidly disbursing its assistance to help prepare for an orderly hand-over of power to an Iraqi transitional administration on 1 July 2004."

The € 11 million is composed of a €3 million contribution from the European Initiative for Democracy and Human Rights (EIDHR) budget and a €8 million contribution from the Rapid Reaction Mechanism (RRM) budget. It is part of the initial financial package of €200 million in grants from the EU budget for reconstruction in Iraq, proposed in the Communication of 1 October 2003. At the Madrid Donor's Conference on 23-24 October 2003, the EU pledged a total of €1.24 billion ($1.46 billion) for reconstruction in Iraq (including more than €600 million in grants for 2004).

The first decision, taken on 16 December, makes a €3 million contribution from the European Initiative for Democracy and Human Rights in support of the UN's efforts to restore institutions for representative governance, a dynamic Iraqi civil society and to promote the media, rule of law and human rights. The €3 million will be channelled through the United Nations Development Programme (UNDP) Thematic Trust Fund for Crisis Prevention and Recovery, an existing UNDP rapid disbursement mechanism. It is dedicated to UN efforts in four areas: restoring and establishing national and local institutions for representative governance and transparent and effective local civilian administrations; developing a free and independent media; assisting in the development of a fair and effective justice system, promoting the protection of human rights; and helping the development of advocacy and civil society organisations that will increase the Iraqi population's ability to influence national and local policies and participate in the reconstruction effort.

The second decision, taken today, commits €8 million from the RRM in response to the nomination of a new Special Representative of the UN Secretary General for Iraq and the agreement to launch the International Reconstruction Fund Facility for Iraq. The €8 million contribution from the RRM will be channelled through the International Reconstruction Fund Facility for Iraq managed by the UN and the World Bank. A €5 million contribution will be made to UN-managed operations and a €3 million contribution will be made to World Bank-managed operations. The objectives of the contribution is to promote the political and social stabilisation of Iraq by supporting the strengthening and establishment of the political and civilian institutions of a pluralistic democratic state and by enhancing the role of the UN in the process of political transition.

Background:

This second contribution to Iraq's reconstruction from the EU budget follows the strategy set out in the Commission Communication of 1 October 2003. It fulfils the pledge made by Commissioner Patten at the Conference on Reconstruction in Iraq held in Madrid on 24 October that €200 million would be committed from the EU budget for Iraq until the end of 2004. The contributions from the EIDHR and the RRM form part of a €42 million package of EC assistance for Iraq's reconstruction in 2003. The other elements of this package include a €29 million contribution to the UN Thematic Trust Fund for Crisis Prevention and Recovery for basic public services and employment generating activities and a €2 million contribution from the de-mining budget line. Both contributions are additional to and build on the work being done by ECHO from the €100 million in humanitarian assistance already committed by the Community to Iraq in 2003.

The contribution from the RRM budget line reflects the conclusions of the 12 December European Council welcoming the agreement establishing a timeline and a programme for an accelerated transfer of sovereignty to a transitional Iraqi government, stressing the importance of ensuring the widest popular participation in the political and constitutional process and recognising and encouraging the efforts under way by the Iraqi Governing Council and its Ministries to assume more direct responsibilities and executive powers. It also reflects the decision by the Coalition Provisional Authority on to hand over responsibility for donor cooperation to the Iraqi administration. The contribution to the UN will include support to the activities of the UN Special Representative of the Secretary General. The contribution to the World Bank will go towards launching a technical assistance programme to assist Iraqi partners in defining priority reconstruction needs and managing donor assistance. It will therefore help increase the Iraqi administration's absorption capacity thereby accelerating the disbursement of donor funds.

The €8 million is the first Community contribution to the UN and World Bank trust funds which will form the International Reconstruction Fund Facility for Iraq. The Commission has been fully engaged in developing this Facility over the past months and has committed to channelling the bulk of EU financial support for Iraq through the Facility in 2004.

For further information:

http://europa.eu.int/comm/external_relations/iraq/intro/index.htm

http://www.comisionadoiraq.org/donors/index_ing.htm

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