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08 October 1999Text: World Bank boosts Kosovo Reconstruction Assistance
The World Bank will provide Kosovo with as much as $60 million in loans and grants over the next 18 months to aid reconstruction, according to an October 7 World Bank press release.
The Bank's board of executive directors approved the package as part of a Transition Support Strategy Paper. The decision provides for a $25 million tranche to be provided as a grant from the Bank's net income, the release said.
"This allows us to help Kosovo with its reconstruction efforts, and eventually pave the way for the province to embark on a transition process towards a modern, market economy," said Christiaan Poortman, the World Bank's coordinator for Southeast Europe.
Following is the text of the press release:
(begin text)
Press Release
KOSOVO TO GET NEW FINANCIAL HELP FROM WORLD BANK
Washington, D.C.
October 7, 1999The World Bank today announced plans -- outlined in a Transition Support Strategy Paper approved Thursday by its Board of Executive Directors -- to spend up to US $50-60 million during the next 18 months to support Kosovo's reconstruction and economic recovery efforts. Following the recent decision by the Board, the first US $25 million tranche of this support will be made available from the World Bank's net income, and will be provided to Kosovo on grant terms.
The Bank's new strategy describes the latest assessment of the damage caused to homes, businesses, and infrastructure during the recent heavy fighting in the province, as well as the post-conflict challenges of reconstruction and recovery.
"This welcome new strategy allows us to help Kosovo with its reconstruction efforts, and eventually pave the way for the province to embark on a transition process towards a modern, market economy," says Christiaan Poortman, the World Bank's coordinator for Southeast Europe.
The Transition Support Strategy Paper describes three priority activities for the World Bank in the overall reconstruction and recovery program for Kosovo:
-- Aid Coordination. In collaboration with the European Commission, the Bank is finalizing the development of the Reconstruction and Recovery Program for Kosovo, and has begun planning, preparing, and co-hosting international donor conferences to mobilize financial support, as well as coordinating that assistance and monitoring its use through the setup of a tracking database in cooperation with Kosovo's budget management authorities;
-- Policy and Technical Advice. Providing economic policy advice to the United Nations Mission in Kosovo (UNMIK) during its interim governing of the province, and later to local Kosovar authorities over time would be a priority; and
-- Limited Financial Support. The Bank can also contribute to the reconstruction and recovery effort by assisting with project design and implementation. In light of the constraints on non-regular resources, financial support would be provided on a highly selective basis. However, the Bank will seek to maximize the impact of its limited resources by leveraging donor funds.
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