Madrid's donors pledge about 13 billion for Iraq
Iraq-Regional, Economics, 10/25/2003

Madrid conference vowed to allocate a sum of 13 billion dollars, aside from US pledges, to finance the operations of rebuilding Iraq including assets in the form of loans.

This was expressed in a press conference held in conclusion of the conference which lasted for two days in which some 70 countries took place in addition to several international organizations and non- governmental commissions.

Within the total sum the conference attained is the 20.3 billion demanded by the American administration from the Congress.

Japan has vowed to give five billion for Iraq in the last day of the donors conference which was held in Madrid during which total sums to be given to re-build Iraq will be declared.

Thereby Japan occupied the second position in the list of the donor states to rebuild Iraq after the USA which vowed to provide 20 billion. The Japanese donation represents 10% of the estimates of the World Bank and the UN of 55 billion dollars.

The chief secretary of the Japanese cabinet Yasu Fokoda said that the vocation will be given to the sectors of electricity and telecommunications. Observers consider that this step aims at avoiding Tokyo any political embarrassment similar to that it had during the second Gulf war in 1991.

For its part, Saudi Arabia vowed to give one billion, half of it "for financing" projects of rebuilding Iraq and the other as export loan guarantees. In a sudden step to the conference, the Saudi delegation announced that Riyadh will reduce its due debts on Iraq estimated at 24 billion dollars.

Kuwait vowed to give 2 billion. The Kuwaiti foreign minister said that the Kuwaiti contribution will be used in rebuilding the infrastructure of Iraq.

The United Arab Emirates UAE also vowed to give 215 million dollars. The UAE minister of state for financial and industrial affairs said that the sum will be provided as humanitarian aids.

Iran announced its help in the program of rebuilding Iraq will be a donation of 300 million EURO (in the form of a patch of land whith oil potential of 350,000 barrels of oil daily according to some reports) and also to provide Iraq with electricity, and gas and to permit the use of its ports for oil exports.

Both the world bank and the International monetary Fund, for their parts vowed several loans estimated at 9.25 billion to be provided over five years. The director of the IMF said in a speech before the conference that the Fund might announce 850 million as urgent aid and to be followed by other sums estimated between 850 million and 1.7 billion, annually.

The European union vowed to give 700 million euro. The Italian foreign minister said in the speech of the EU before Madrid conference yesterday that this sum will be provided in 2004.

Australia announced it will contribute to 14 million as extra aids in addition to an earlier commitment estimated at 100 million Australian dollars to meet the humanitarian aid. The extra sums will be spent in boosting agriculture and water, food security, health and education.

Germany's contributions will be 236 million. A matter which raised criticism of the US secretary of state Colin Powell who expressed his hope that the conference will raise enough donations.

The German foreign minister Yushka Fischer rejected this criticism saying that this sum is not small for the time being, while France set a precondition which is to solve the issue of sovereignty in Iraq in order to give more aid.

Among commitment which Iraq has received during Madrid conference on Friday was 100 tons of tea from Sri Lanka, while Vietnam is to provide amounts of rice estimated at a cost of 500,000 dollars.

Previous Stories:
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  Al Ayam: War in Iraq entailed $80 billion in losses for Arab region   (9/3/2003)
  Arab entrepreneurs union meet in cairo over Iraq reconstruction   (6/18/2003)

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