Madrid — Under pressure from the United States, the world's leading nations have pledged $15-billion (U.S.) in aid to rebuild Iraq, an official said, far surpassing expectations at a crucial donor conference in Madrid.
The tally will be announced by U.S. Secretary of State Colin Powell at a press conference late Friday.
On the final day of the two-day meeting, Tokyo pledged a further $3.5-billion in low-interest loans on top of the $1.5-billion previously announced, making Japan the largest donor after the United States. Saudi Arabia offered an aid package worth $1-billion. The donations top up $20-billion already approved by the U.S. Congress.
Most of the money will be funnelled into a trust fund independent of the United States that will be managed by the World Bank and the UN. The trust, set up in part to reassure countries wary of U.S. control, gives the international community some say in how the funds will be managed and spent.
Ayad Allawi, president of Iraq's U.S.-appointed Governing Council, opened the pledging session by promising that Iraq would remember those who helped it in its hour of dire need.
“Your success here will be a success for humanity and a help for peace and security in the world,” he said.
Despite the optimistic mood at the conference, requests for aid from France, Germany and Russia continue to be met with an icy response. The three have demanded faster transfer of power to an Iraqi government and more UN oversight.
Germany offered no new funds on Friday beyond what it has already pledged, mostly through the EU community budget.
“We are already offering a substantial amount,” said Stephen Bethe, a spokesman for the Germany Development Ministry. Mr. Bethe said debt forgiveness for Iraq is “absolutely not” on the agenda. Iraq owes Germany about $2.4-billion.
France, one of the most outspoken critics of the Iraqi war, has kept a low profile, sending a low-level delegation to Madrid. But the European Union, which initially offered a pledge of $230-million, announced increased contributions to more than $800-million.
“This is not easy for all European countries,” EU External Affairs Commissioner Chris Patten told reporters. “You can't expect European taxpayers who felt pretty hostile to military intervention to feel hugely enthusiastic about spending a large amount of money in Iraq.”
The figures still fall short of what is needed to rebuild the war-torn country, however. A World Bank concluded $36-billion is required for reconstruction, while the U.S.-controlled Coalition Provisional Authority says another $19.4-billion will have to be spent on security and the oil sector.
Nick Kraft, the World Bank's Iraq country manager, was optimistic, however.
“If you look at the commitments coming, there is plenty of money to kick-start this reconstruction process,” he told Reuters news agency. “If you compare them to anywhere else in the world, it's staggering.”
The Canadian government has committed $300-million to rebuilding efforts, including $40-million to Unicef for water and sanitation programs.
“Canada remains committed to help Iraq, but Iraqis must lead the way. We cannot afford to fail,” said Canadian International Co-operation Minister Susan Whelan, among the delegates from some 70 countries who flew into Madrid for the two-day conference.
U.S. President George W. Bush expects to spend $20.3-billion rebuilding Iraq in the next year, with particular emphasis on funding health, potable water and education.
