CO-OPERATION BETWEEN THE EUROPEAN COMMISSION AND THE STATE OF ERITREA

During 2005 the political landscape in Eritrea continued to be dominated by the lack of progress towards a peaceful solution in Eritrea – Ethiopian relations. Structural economic imbalances continue to hamper economic development. Weather conditions have been favourable in the highlands comparative to other years, but food security remains a serious issue. In line with the Mid Term Review of the EU - Eritrea Cooperation, signed in 2004, projects, programmes and activities comprise interventions in three main sectors: 1) Infrastructure –including Transport and Energy 2) Rehabilitation and Recovery Programmes, covering reconstruction of economic and social infrastructure, resettlement of refugees and internally displaced persons, demobilization and de-mining and 3) Education. During 2005 progress was made towards the implementation of EU funded programs in most sectors. Problems were faced in the completion of certain tender procedures and in the implementation of the de-mining program. As shown in Annex I, in 2005 some €19M have been disbursed in Eritrea, of which €3.8M out of budget lines financed projects. The forecasts for 2006, provided in Annex VII, indicate that disbursements shall take place at a quicker pace: it is anticipated that some €29.9M will be paid out during this year, of which €6.8M from budget lines. For 2007, forecasted disbursement will further accelerate to €39.9M, of which some €4M from budget lines Readmore