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EU Launches Reconstruction Program for Kosovo

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KOSOVO - Official U.S. Government Documents For more information regarding the latest policy statements and other materials related to the Kosovo crisis, visit http://www.usia.gov/regional/eur/balkans/kosovo/
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In 1999, the European Union will provide financing of about 150 million euro in the form of grants to launch the Kosovo reconstruction programme, according to an EU press release.
 
The priorities for the first 45 million euros include: materials to repair homes, rehabilitation of the power grid and water supplies, setting up of a coordination center for mine clearance, restoration of the customs service, and support for job creation in the villages through small-scale activities that will benefit the local community.

The United Nations Mission in Kosovo wants the remaining 100 million euro of the reconstruction program to be used primarily for technical assistance projects, the press release said.

Following are two press releases from the European Union in the U.S. web site:

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Web Site: The European Union in the U.S.
http://www.eurunion.org/
July 23, 1999

EU LAUNCHES RECONSTRUCTION PROGRAMME FOR KOSOVO

This year the European Union (EU) will be providing financing of about 150 million euro in the form of grants to launch the Kosovo reconstruction programme.  Next year the programme will get some 500 million euro, which will be implemented by the European Agency for Reconstruction.

In Pristina this week a Commission delegation led by François Lamoureux, Deputy Director-General, and Marc Franco, Head of the Task Force (a structure set up on 5 July to pave the way for the Reconstruction Agency) unveiled the main priorities of the first 45 million euro phase of the 1999 programme.

The reconstruction programme was discussed with Kosovo's civilian administrator, the United Nations (UN) High Representative, Mr. Bernard Kouchner, and the commander of the Kosovo international peace force (KFOR), General Michael Jackson.

The programme will kick off with the following activities:

-- Supplies of materials to enable local inhabitants to repair their homes properly.

-- Rehabilitation of basic infrastructure: the power grid and water supplies (including the wages of operating staff).

-- Setting-up of a coordination centre for mine clearance to speed up efforts to tackle this problem.

-- Restoration of the customs service: collecting customs duties will finance the region's budget and boost confidence in the administration at the borders, so encouraging the return of the last remaining refugees.

-- Support for job creation in the villages through small-scale activities of benefit to the local community (cleaning up, removal of the last traces of the war, restoring electricity lines, repairing schools and roads, etc.).

The provisional administration in Kosovo, which is run by the United Nations (United Nations Mission in Kosovo, UNMIK), has emphasised the importance of immediate action to rebuild houses and public services, especially Mitrovica hospital, and involvement of the local community in this work.  The Commission has already announced that at the donors' conference that it is jointly hosting with the World Bank on 28 July it will pledge to finance a Trust Fund to pay the wages of public-service employees.

UNMIK wants the second 100 million euro tranche of the reconstruction programme to be used primarily for technical assistance projects, namely the sending of European experts to help get local services back on their feet, to restore the customs service, and to advise on civilian security and microcredits, especially in rural communities.

The Commission delegation has met representatives of UNMIK and KFOR to take stock of the damage evaluation reports that will be presented at the donors' conference on 28 July.  It has also asked UNMIK to help it recruit local staff for the Reconstruction Agency.

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July 20, 1999

KOSOVO CRISIS: COMMISSION CLEARS FURTHER EUR 196 MILLION FOR HUMANITARIAN AID

The European Commission has cleared a further EUR 196 million for humanitarian aid as the return of refugees and displaced persons to Kosovo continues. The aid, to be managed by the European Community Humanitarian Office (ECHO), brings funding for this crisis to a total of EUR 378 million this year.

So far, more than 650,000 people have returned to Kosovo, and many have found their homes and belongings destroyed or looted. The challenge for the humanitarian community now is to provide adequate winter shelter before colder weather sets in from September.

ECHO's partners, the United Nations agencies, the Red Cross Movement and non-governmental organizations, will work on continued implementation of the Kosovo Return Plan. This has been drawn up jointly by ECHO and the United Nations High Commissioner for Refugees (UNHCR). It includes the distribution of building material and basic commodities (beds, mattresses, blankets, stoves etc.), and enables returnees to start minor repairs to make their homes weatherproof before the winter.

The new funding includes a major contribution to UNHCR, amounting to EUR 30 million, bringing ECHO's contribution to UNHCR work in Kosovo to EUR 63.3 million this year. ECHO is UNHCR's biggest donor to UNHCR for this crisis.  The situation in Serbia needs special attention. More than 100,000 Serbs and Roma from Kosovo have so far arrived in Serbia, and the exodus continues. Many are living in makeshift collective centres, and they, like other vulnerable groups in Serbia, will face a difficult winter in a country devastated by war. ECHO is likely to remain the only source of European Union assistance to Serbia for some time to come.
 
In neighboring republics (Albania, FYROM and Montenegro), ECHO will ensure that on-going aid for displaced persons and refugees continues as long as required. Support to host families and vulnerable groups among the local population will continue, and programs will only be phased out gradually.
 
The total of EUR 196 million is split as follows: EUR 146 million is available for humanitarian actions immediately, while the balance of EUR 50 million will be kept in a contingency reserve to allow ECHO to reinforce its assistance as necessary.
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