EC to support five year program

The European Commission announced on Tuesday it would give 221 million euros (over US $217 million) in support of Guinea's five-year strategy paper covering 2002-2007, an EC news release said. The money will come from the 9th European Development Fund, it said. Support for the road infrastructure sector is considered a priority and 90 million euros has been set aside to finance it. The funds will be used mainly for periodic maintenance and upgrading of the national road network, the release said. Some 25 million euros is earmarked for rural development and would be channelled towards the development of rural infrastructures such as, water troughs, water supplies and the improvement of production factors, it added. To support macro economic stability, a budget support of 33 million euros will be set aside to contribute to financing part of the budgetary deficit. A total of 63 million euros will be mobilised to provide any additional support that might prove necessary in the wake of external shocks such as short term fluctuations of export earnings resulting from falling prices of agricultural commodities on the world market. For background information on relations with Guinea, see: http://europa.eu.int/comm/development/strat_papers/index_fr.htm