News
Friday, October 29, 2010
US to finance 80 projects under KLA
* 30 to be executed by govt, 50 through non-official channels
By Sajid Chaudhry
ISLAMABAD: The US finalised a list of 80 projects that will be funded with the help of $7.5 billion promised to Pakistan under the Kerry Lugar Act (KLA) over the next three-to-five year period. Out of which 50 development projects will be executed through non-official channels, according to official sources.
“The US administration will have to get formal approval from the US Congress, for extending supplementary assistance worth $204 million to Pakistan in 2010-11, which will be used mainly on five projects of power and water sectors,” an official said.
He said out of the remaining amount $192 million would be spent to curb narcotics and ensure measures related to nuclear non- proliferations.
Although, Pakistan and the US had signed $831 million for 2010-11, but $682 million was still undecided, especially in the context of spending mechanism that whether it would be utilised through official channels or private sector partners.
Alone in the ongoing financial year 2010-11, USA and Pakistan are still undecided about $685 million to ascertain whether to spend through official channels or partner organisation with the involvement of the USAID.
“Although, the finalised list is still an evolving process, so far 80 projects were identified out of which 30 will be executed on budget, while 50 will be completed through off budget arrangements over the next three to five years period,” official sources confirmed.
A senior government official of government confided to the Daily Times that Pakistan and USA had already signed $831 million under the KLA, but the fate of $682 million was still under discussion. The US is committed to provide $1.513 billion to Pakistan under the KLA in 2010-11, and this money will not be lapsed over the next five years, the sources said.
The official sources were of view that the US would spend $106 million on unilateral programmes such as Fulbright Scholarships, and other such initiatives in 2010-11. They have already spent $166 million on floods.
When contacted, a senior official of the Economic Affairs Division said the reconciliation issues arose because of definition difficulties emerged with all donors to ascertain the exact Tokyo pledges to differentiate among the ongoing pipeline of projects and fresh commitments at the forum of Friends of Democratic Pakistan (FoDP).
“We are vigorously pursuing the donors to reconcile figures with us in order to linger on confusion,” they said, adding that the government took the issue seriously and had held a couple of meetings in the week, to settle the matter
“Now we have handed over fresh performa to all donors and asked them to clearly identify their fresh and ongoing programmes, instead of showing their assistance twice in both categories,” added the sources.
The donors have shown their willingness to return back the performa soon in order to avoid future confusion on donors’ assistance, they said.
In the upcoming meeting of PoDF, scheduled to be held on November 14 and 15 at Islamabad, a special session will be held on the crucial topic of aid effectiveness in order to pursue the donors to harmonise their procedures in line with Paris Declaration, under which they were bound to facilitate the loan recipient countries. Despite Pakistan’s efforts in last few years, the donors have remained unable to harmonise their systems in order to avoid confusion, the sources said.
Courtesy www.dailytimes.com.pk