WRITTEN QUESTION P-1085/01

by Olle Schmidt (ELDR) to the Commission

(26 March 2001)

Subject: Aid for the victims of hurricane Mitch

In response to the devastation of large areas of Honduras and the death of tens of thousands of people caused by hurricane Mitch, the EU promised aid of SEK 2,2 billion towards reconstruction.

More than two years after the disaster, however, it appears that only a tenth of that amount has reached the victims of the hurricane. While other countries have completed their projects, not even one tenth of the EU's billions has arrived. The remaining funds appear to be held up in Brussels.

How will the Commission's procedures be changed in order to avoid such a mistake in the event of future disasters?

Answer given by Mr Patten on behalf of the Commission

(8 May 2001)

As a rapid response to the most urgent needs due to Hurricane Mitch, the European Community's Humanitarian Office (ECHO) gave to Honduras 17,2 million of emergency relief between 1998 and 2000. Aid for food security in the region totalled 30 million in 1999, the majority of which was committed to Honduras. Food aid and ECHO aid committed to Honduras have already been disbursed.

In addition to the large amount of emergency assistance, the Community is contributing to the reconstruction and transformation programme of the Central American countries affected by Hurricane Mitch. This is a longer term effort which has been thoroughly prepared and co-ordinated with the national development strategies and other donors' activities. In this framework, the Commission is implementing the Regional Programme for Reconstruction of Central America (PRRAC). The programme covers public health, water and sanitation, housing, education and training in the four beneficiary countries (El Salvador, Nicaragua, Honduras and Guatemala). In December 1999 the Commission made the first financial commitment for the PRRAC, amounting to 82,5 million and on 22 December 2000, the Commission committed the second part of the PRRAC for a total amount of 44 160 million of which approximately 22 million are devoted to Honduras. Of the total amount 2 781 million has been spent.

The PRRAC has already committed 52,7 million via its Subprograma Honduras to this country, which is being implemented during the period 2000-2007. The first financial agreement between the Community and Honduras was signed on 28 July 2000 for an amount of 30 026 million. Based on this agreement the Commission has signed, in 7 December 2000, contracts for a total amount of 3 965 848 and so far has spent 918 000.

In the next two months the signature of the technical assistance contract for the management of 26 million is foreseen, and two calls of interest for a total amount projects of 49,9 million have been published. From this amount, the signature of a contract for 26,7 million at the end of 2001 is foreseen.

In addition to the above programmes, the Community will contribute around 15 million for Honduras within the framework of the Highly Indebted Poor Country (HIPC) initiative. This will be disbursed when the International Monetary Fund (IMF) decides that Honduras has fulfilled the necessary conditions.

On 16 May 2000, the Commission adopted the Communication on the reform of the management of external assistance(1) which identifies an ambitious programme of measures to make significant improvements in the quality and timely delivery of aid while ensuring robust financial management and increased impact of Community external assistance.

These measures include a radical improvement in the programming of external assistance; the reunification of the project cycle in the newly-created EuropeAid Co-operation Office;

the streamlining of procedures and comitology practices; and the deconcentration of responsibilities to the Commission's Delegations. The Commission's Delegation in Nicaragua, which is responsible for the PRRAC, is one of the 23 priority Delegations to be included in the first wave of deconcentration in 2001. The reform is now under active implementation. The Commission believes that, once completed, these measures will make a significant improvement in the quality and timely delivery of the Commission's external assistance.

The Commission will present soon a Communication on the issue of linking relief, rehabilitation and development which recognises the complexities of the problems and identifies a range of measures that could improve the Community's record, in particular:

- to facilitate co-ordination on a more systematic basis;

- to reduce time delays, mobilise adequate resources in a timely fashion, and ensure the involvement of appropriate partners.

(1) SEC(2000) 814.