Written Answers. - Foreign Conflicts.
Ivor Callely
Question:
65
Mr. Callely
asked the
Minister for Foreign Affairs
the current situation in Mozambique with regard to reconstruction and recovery activities; the progress made on cancellation of its high debt burden; and if he will make a statement on the matter.
[22183/00]
Bernard J. Durkan
Question:
100
Mr. Durkan
asked the
Minister for Foreign Affairs
if he will give an update on the situation in Mozambique; whether he has or will contribute positively to the situation; and if he will make a statement on the matter.
[22646/00]
I propose to take Questions Nos. 65 and 100 together.
As Deputies Callely and Durkan will be aware, the response of the international community to the crisis in Mozambique resulting from the cyclones and flooding of February-March of this year was centred on short-term emergency relief in response to the appeal of the Government of Mozambique for $1,000 million to meet immediate needs and medium-term rehabilitation assistance based on the appeal at the international reconstruction conference for Mozambique held in Rome on 3 and 4 May in which the Government of Mozambique sought US$449.5 million in international support for its reconstruction programme. Both of these financing targets were met by the international community.
The emergency phase, involving assistance to those affected to return to their normal life by, for example, providing housing materials, seeds and farming implements concluded in August 2000. The reconstruction phase, using the funds raised at the conference in Rome, is expected to last until the end of the year 2001. The Government of Mozambique is determined that the infrastructure damaged by the floods should be restored and, importantly, that preventive measures be taken to mitigate the effects of any future natural disasters.
In addition to the immediate £700,000 emergency relief provided by Ireland, a further IR£1.6 million was reallocated from the budget for long-term development projects in Mozambique to meet short-term needs arising from the emergency. Furthermore an amount of IR£4.5 million was pledged by Ireland at the international donor conference held in Rome last May for the reconstruction process. IR£1.7 million of this amount is for payment to the debt alleviation fund established by the Government and will help to relieve the burden of debt on the country. The remaining IR£2.8 million will be used for the rehabilitation of roads washed away in the flood-affected province of Inhambane where Ireland has had a development programme since 1996.
Quite apart from the reconstruction process, Mozambique has prepared its strategy for mid and long-term development, which is vital if it is to return to the impressive 10% growth rates achieved in the past four years. The Mozambican Government has reiterated its commitment to macro-economic stability and poverty reduction. Most Mozambicans, however, still live in poverty, illiteracy and vulnerability to disease and it remains one of the world's poorest countries.
Mozambique is classified by the World Bank as one of 40 Heavily Indebted Poor Countries, HIPC's. At the end of 1998, its total external public debt was in excess of US$8 billion. In April 2000 Mozambique qualified for a comprehensive debt reduction package under the World Bank and IMF's enhanced heavily indebted poor countries initiative. Total relief from all of Mozambique's creditors under the enhanced framework amounts to US$600 million. This is in addition to relief committed under the original HIPC initiative, worth US$3.7 billion. This is equivalent to over 70% of total debt outstanding at the end of 1998 after the full use of traditional debt relief mechanisms. Ireland has already contributed US$15 million to the HIPC trust fund. Moreover, Ireland provided US$5 million directly to the Mozambican debt alleviation fund over the period 1997-99.
At a World Bank Consultative Group meeting in Paris on 8 and 9 June 2000, between the Government of Mozambique and its international development partners, additional sums of $530 million for 2000 and $560 million for 2001 were pledged, for long-term development programmes. At this meeting Ireland pledged £7.4 million for the year 2000 and indicated an intention to allocate increased amounts in subsequent years.
