Weapons of Mass Destruction (WMD)

DATE=2/28/2004

TYPE=CORRESPONDENT REPORT

TITLE=IRAQ/DONORS (L-O)

NUMBER=2-313618

BYLINE=KERRY SHERIDAN

DATELINE=CAIRO

CONTENT=

VOICED AT:

INTRO: Representatives from some 40 donor countries financing Iraq's reconstruction program open a two-day meeting in Abu Dhabi Saturday. Kerry Sheridan reports from V-O-A's Middle East Bureau in Cairo, Iraqi officials are asking the donors to speed up the distribution of about 33 billion dollars that was pledged last year.

TEXT: Iraq's interim minister of planning and development, Mehdi al-Hafidh, opened the conference by urging donors to disperse four billion dollars this year.

He also said that negotiations with lending countries have resulted in principle, in a 60 percent reduction of Iraq's overall 120 billion dollars in debt. The minister said the official amount of debt reduction has not been announced yet.

Mr. al-Hafidh said Iraq's needs are enormous and urgent. Iraqi officials will present a list of some 700 key rebuilding projects to the group, which includes representatives from the United States, European Union, World Bank and International Monetary Fund.

The donors met in October of last year, and pledged to provide 33 billion dollars in loans and grants to Iraq, although Iraqis estimated the country would need 56 billion dollars over the next three years.

The money will be distributed through a trust fund managed by the United Nations Development Group and the World Bank.

A World Bank official has said the fund would probably disperse some 500 million dollars to the Iraqi government by the scheduled June 30th transfer of power from the U-S led Coalition Authority to the interim Iraqi Governing Council.

Security concerns and ongoing terror attacks inside Iraq are discouraging many foreign investors from pouring money into the war-torn country until the situation stabilizes.

Iraqi officials say they need funds now to help rebuild schools, regulate the power supply and modernize the agricultural industry. (Signed)

NEB/KS/PT