WRITTEN QUESTION E-0562/96 by Iñigo Méndez de Vigo (PPE) to the Commission (11 March 1996)

Subject: Funding of the plan for the reconstruction of Bosnia

The implementation of the first stage of the international plan for the civil reconstruction of Bosnia is being jeopardized by funding problems. The programme has been allocated 550 million dollars but the Commission has so far provided only 62,5 million. None of the other countries which gave undertakings - the USA, Japan and the Arab countries - has provided anything at all.

What position does the Commission plan to take at the forthcoming international conference of donors planned for April?

Answer given by Mr Van den Broek on behalf of the Commission (3 May 1996)

1. First donor conference and follow-up

In response to estimated needs of ECU 400 million during the first quarter of 1996, the international community, at a first donor conference held in December in Brussels, made pledges amounting to ECU 427 million in addition to about ECU 96 million of on-going funding of programmes already underway. Of the total of ECU 523 million, 10 % is estimated to relate to humanitarian aid objectives. The available funding for rehabilitation and reconstruction amounted therefore to about ECU 462 million.

Of this amount, ECU 269 million have been in the meantime firmly committed to concrete programmes, whilst ECU 195 million are still indicative, meaning that the commitment is still in the process of being negotiated and not yet available for disbursement.

Of the ECU 269 million firmly committed, the Community programmes amount to ECU 88 million comprising ECU 25 million from various budgetary sources (ECHO and other budget lines), and ECU 62,5 million from Phare (as a first tranche of a ECU 125 million Essential aid programme (EAP).

Of this first tranche of ECU 62,5 million, about half has been tendered and goods will arrive during April. The other half is under tendering or preparation for tendering. Most of the goods will have been delivered before the end of the first half year.

Other donors, especially some of the Member States through their bilateral programmes, have also been preparing urgent actions. The exact amount is not known.

Other donors, the United States for ECU 48 million and Japan for ECU 40 million are also in the process of early disbursement. The Islamic countries have as yet not provided any information.

2. Second donor conference

The Commission, together with the Presidency and in cooperation with the High Representative and the World Bank, has been active in mobilising donors to prepare the pledges for the second donor conference which took place on 12/13 April.

The second donor conference was again successful as far as pledging was concerned. The target of ECU 930 million was reached. In total ECU 990 million was pledged.

The Community and its Member States pledged ECU 330 million, one third of the total. The US pledged ECU 170 million, Japan ECU 101 million, the Islamic countries represented for the first time ECU 130 million, other bilateral donors ECU 33 million, the World Bank ECU 140 million and other financial institutions and organizations ECU 84 million.

It will be necessary to coordinate implementation efficiently in order to bring about improvements on the ground as quickly as possible. Priority will be given:

* to key infrastructure to ensure improved access to basic services and housing to facilitate the return of displaced people and refugees;

* to jump-start production to improve employment, especially of demobilised soldiers, and

* de-mining as a prerequisite for the physical implementation of projects.

The participants agreed to meet again after the elections in autumn 1996 to review the progress of the assistance. They promised to continue their support in the period 1997-99. A review of the needs of other war-torn areas in former Yugoslavia could also be envisaged.

3. Overview of pledges for the whole of 1996

ECU millions

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