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