Nineteen countries meeting in Abu Dhabi,
United Arab Emirates, on 28-29 February contributed US$1 billion to rebuild
schools and health facilities, restore water supplies and electricity,
and to meet other priority needs in Iraq.
It was the first meeting of International
Reconstruction Fund Facility that the Madrid conference established in
October 2003. The UN Development Group, chaired by UNDP Administrator Mark
Malloch Brown, and the World Bank jointly administer the facility.
Japan, the leading donor, contributed $450 million, and was elected chair of the Donors' Committee for the first year. This includes $360 million for the trust fund administered by the UN Development Group and managed by UNDP. Another $90 million goes to the trust fund administered by the World Bank. After this year's budget is approved, Japan plans to contribute another $40 million to World Bank trust fund.
The facility will coordinate and channel contributions for rebuilding work in close cooperation with the Iraqi authorities and donors. The funds represent part of the follow-up by donors towards meeting the $33 billion pledged in Madrid.
Dr. Mehdi al Hafedh, Minister of Planning and Development Cooperation from Iraq, presented an overview of development priorities for the year and a list of 700 projects totalling $4 billion. He called the country's needs "enormous and urgent."
The initial members of the facility's Donors' Committee, having donated more than $10 million each, include Australia, Canada, the European Commission, India, Japan, Republic of Korea, Kuwait, Norway, Qatar, Spain, Sweden, the United Kingdom and the United States. The committee is also open to two representatives of smaller contributors.
Ross Mountain, UN Secretary-General Kofi Annan's acting Special Representative for Iraq, pointed out that the UN has been conducting humanitarian activities in Iraq, channelling 90 per cent of the $2.2 billion raised by a flash appeal in 2003. Iraqi UN staff across the country are carrying out the world body's work, he told the meeting, "and we are remobilizing more."
Among the challenges ahead, he said that adequate employment is the "most essential need," adding: "The UN shares Iraqis' very deep concerns that failing to address this issue may invite widespread social unrest and disruption."
Mr. Malloch Brown, as chair of the UN Development Group, said in a message to Japan's Foreign Minister Yoriko Kawaguchi that "the impressive example set by Japan will strengthen my efforts to motivate donors to augment their generosity with respect to the reconstruction of Iraq."
Representatives of some countries said that they may increase their initial contributions based on the facility's performance. The funds for the facility are in addition to substantial bilateral assistance by the United States and other countries, UN programmes already funded, and lending programmes planned by the World Bank and International Monetary Fund.
For further information please contact Akiko Fujii, akiko.fujii@undp.org, UNDP Tokyo Office.