Contacts:
Shaha Riza (202) 458-1592
sriza@worldbank.org
Andrew Kircher (202) 473-6313
akircher@worldbank.org
WASHINGTON, October 14, 2003—The World Bank Board of Executive Directors held a preliminary discussion today on a recommendation by management that a possible range of financial support to be provided by the Bank for reconstruction in Iraq could total $3.4 billion to $4 billion during the Bank’s coming five fiscal years. The lending could start with $500 million for each of 2004 and 2005.
Management emphasized that these indicative figures represent a range of possible support and that it has not yet been endorsed by the Bank’s Board of Executive Directors, or the donors to the International Development Association. The lending is also subject to several other factors that are mandated by the operational procedures of the institution, including security on the ground and governance.
“The World Bank is committed to help the Iraqi people with the reconstruction of their country and, particularly, in reducing poverty,” said World Bank President James D. Wolfensohn. “I believe the lending framework for the Bank that has been indicated is appropriate in that context. But I would emphasize that today’s discussions were preliminary and no decisions have been made.”
Consultations are ongoing and it is expected that the Board will meet again for further discussions prior to the international Donor Conference to be held in Madrid on October 23-24, 2003. The Conference will seek funding from the donor community to address priority reconstruction and rehabilitation needs, focusing on both urgent and medium-term needs for supporting sustainable development.
Last week, the Core Group on Iraq -- the United Arab Emirates, the United States, the European Union and Japan-- in cooperation with the UN, World Bank and IMF discussed a Joint Iraq Needs Assessment, which was initiated in Iraq in May. The Assessment was undertaken by the United Nations Development Group (UNDG) and the World Bank Group with assistance from the IMF.
The assessment estimates the overall stock of reconstruction needs over the period 2004-2007 in 14 priority sectors to be in the order of US$36 billion. In addition, the Coalition Provisional Authority has separately estimated that there are some $20 billion needed in critical sectors not covered by the World Bank/UN assessment, including security and oil.
The sectors covered by the World Bank/UN assessment include education, health, employment creation, water and sanitation, transport and telecommunications, electricity, housing and land management, urban management, agriculture and livestock, water resources and water quality, finance, state-owned enterprises, investment climate, mine action and government institutions. Cross-cutting issues include human rights, gender and the environment.
To read the full Joint Iraq Needs Assessment, visit http://www.worldbank.org/iq
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