Maravi

Netherlands explains its external assistance focus

Netherlands explains its external assistance focus
By Mwala Kalaluka
Fri 15 Oct. 2010, 03:00 CAT

THE Netherlands government has said it will primarily focus its funding for infrastructure development in the world’s least developed countries on the attainment of the Millennium Development Goal (MDG) of halving extreme poverty by 2015.

Explaining the infrastructure development-focused ORIO fund, which is a grant facility financed by the Dutch minister for development cooperation with 50 developing countries as beneficiaries, ORIO project consultant Tim van Galen, acknowledged in an interview that the poor must be able to participate in economic growth.

The Dutch government has set aside between 140 million and 150 million Euros as a funding mechanism to governments and the private sector to build infrastructure as a vehicle for combating poverty in developing countries.

Galen said he was not very sure whether Zambia falls within the category of least developed or heavily indebted nations, but he assumed that it was a least developed country, which is eligible to a development phase grant percentage of 100 per cent.

According to an information brochure provided by the Netherlands Embassy in Lusaka, the recipient government would finance the remaining sum.

The brochure stated that poor or non-existent infrastructure hindered economic growth in many developing countries and yet economic growth was an important condition in reducing poverty and achieving the Millennium Development Goals.

“Economic growth in itself is, however not sufficient. The poor must be able to participate in this growth,” the brochure read in part. “The social benefits of the infrastructure that is realized should therefore primarily benefit the poorer sections of the population.”

Meanwhile, Galen said the Dutch government’s ORIO grant had just signed the first project for Zambia.

Galen explained that the approved Chanyanya Irrigation Project in Kafue was worth about 15 million Euros and the ORIO grant facility would provide 1.2 million Euros as a development phase funding.

Galen said the amount would be increased to eight million Euros at the implementation stage if the process went smoothly.

“We mainly focus on MDG one, which is on the reduction of poverty and the Chanyanya Irrigation Project is a very good example,” said Galen.
CK

Labels: DONORS

posted by MrK @ 6:47 AM