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Wednesday, July 28, 1999 Published at 21:56 GMT 22:56 UK


World: Europe

Kosovo donors pledge $2bn

The cost of rebuilding Kosovo's infrastructure could be $2.5bn

International donors have pledged more than enough money to meet the immediate needs of rebuilding Kosovo, the World Bank says.

Rebuilding the Balkans
But there has not yet been a break down of how most of the money will be spent, and nor is it clear when it will be forthcoming.

More than 100 countries and dozens of aid organisations promised over $2bn in humanitarian aid at a conference in Brussels.


BBC's Justin Webb: It looks as if the conference has been a success
The money will cover an estimated $200m needed to supply food, water and basic shelter as winter approaches.

It will also be used to finance an initial $300m of the reconstruction cost. An additional $45m will go to paying the salaries and other costs of the UN organisation running the province.

Avoiding a donor race

The European Union says about $160m will be provided this year and $532m next year through the new European Agency for Reconstruction.


[ image:  ]
About a quarter of the promised aid will come from the United States.

Some countries withhold publishing the amount of aid they are giving, fearing it could lead to political embarrassment or a donor race.

The BBC correspondent at the conference, Justin Webb, says there is some scepticism in the aid community about whether governments will provide sufficient funds in the longer term to make a real difference to the economy of the region.

The full cost of rebuilding Kosovo's infrastructure, city centres and agricultural projects has been estimated at $2.5bn in a World Bank report.


The BBC's Peter Morgan: "Balkan regeneration cannot happen if the slaughter continues"
The Bank is preparing a more detailed report into the long-term cost of rebuilding Kosovo for the second donors' conference to be held in October.

More than three quarters of the homes in Kosovo have been damaged or destroyed, and hundreds of thousands of refugees are returning to the province.

Aid for wider Balkan region

In a separate move, the European Union has granted a total of $380m as financial assistance to Bulgaria, Romania and Macedonia to help offset the impact of the Kosovo crisis on their economies.


[ image: A woman sells much-needed bricks in Sarajevo]
A woman sells much-needed bricks in Sarajevo
The money comes as about 40 heads of state are gathering in Sarajevo for a special summit to discuss how to implement a stability pact for the wider Balkans region.

US President Bill Clinton and UK Prime Minister Tony Blair will be among the dignitaries meeting in the Bosnian capital.

Some economists have said that the refusal to rebuild Serbia while President Slobodan Milosevic remains in power will limit the extent to which the whole area can make a fresh economic start.

"It is absolutely cynical to discuss aid to states affected by Nato bombing and exclude Serbia, which has been ploughed up by Nato bombs," said an independent economist.



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