Aid hopes for Macedonia

Many refugees have still not returned home

An international conference to raise millions of dollars to rebuild Macedonia's war-ravaged economy gets under way in Brussels on Tuesday.

The meeting was given the go-ahead after the Macedonian parliament adopted key parts of an agreement which ended the conflict with ethnic Albanian rebels last year.

Donor money

185m euros ($162m) to balance the budget

45m euros ($39m) rebuilding infrastructure

25m euros ($22m) to implement peace deal

Officials from donor countries say provision of the money will be tied to the implementation of the peace accords.

Macedonian leaders say they hope for more than 250 million euros ($220m) in pledges from more than 40 countries at the conference, which is backed by the European Commission and the World Bank.

"The assurances we've got so far from international officials are enough to expect the donors' conference will be successful," said Macedonia Deputy Prime Minister Zoran Krstevski.

Most of the money has been earmarked to help balance the Macedonian Government's cash-strapped budget, while the rest - about $70m - will pay for implementing the specific proposals of the peace agreement.

Political reforms

The Macedonian Government has taken a series of steps to implement the internationally-backed deal signed last August which pulled it back from the brink of all-out war with the rebels.

The agreement promised greater freedom to Macedonia's ethnic Albanians in running their own affairs.

The peace deal ended fighting between the government and ethnic Albanian rebels

On Monday, Macedonian Prime Minister Ljubco Georgievski promised further reforms at a meeting with Nato officials in Brussels.

Last week, the international community said it would reward Macedonia after the government approved an amnesty for rebel fighters.

The United States pledged to make "a significant contribution" at the conference.

Rebuilding

About 70 million euros will be spent on putting into effect specific proposals of the peace agreement - in particular, devolving power to local authorities - and for the reconstruction of damaged housing.

Thousands of Albanian and Macedonian homes were shelled or torched in the six-month conflict.

Many of the 80,000 people who fled the fighting now live among the ruins of their homes, or have still not returned.

The BBC's correspondent in Belgrade, Paul Anderson, says the donors' conference may also help restore the confidence of investors, who bolted the country when the conflict broke out.

Macedonia desperately needs foreign-backed industrial projects to boost it job market.

Officially, just under 40% of the workforce is unemployed, but the true figure is probably higher.