World Bank gives Eritrea $29.5 mln for power, children
Reuters
Fri 27 Jun 2008
ASMARA The World Bank said it has approved $29.5 million in aid for Eritrea to support energy and early childhood development projects in the Red Sea state.
Eritrea is said to be rich in gold and industrial metals, but few hard facts are known about its economy, which is largely agriculture-based and depends heavily on remittances.
At the end of 2007, the World Bank had committed $209.3 million in loans and credits for five projects in Eritrea, of which $96.02 million had been undisbursed.
"The Board approved $17.5 million additional grant financing for Eritrea's Power Distribution and Rural Electrification project, and $12 million new grant funding for Integrated Early Childhood Development project," it said in a statement.
Eritrea has one of the lowest per capita incomes in the world at $200, but has better social indicators, according to the World Bank.
In the statement issued late on Thursday, the bank said the energy programme would expand power distribution in the Eritrean capital and in four areas of the Horn of Africa nation along with power sector reform.
The $17.5 million will be added to a previous $50 million earmarked for power projects. Some $36.68 million was undisbursed as of December 31, 2007.
The childhood project will be aimed at improving health and education for children under 6-years-old.
The International Monetary Fund expects Eritrea's gross domestic product (GDP) to grow 1.2 percent this year from an estimated 1.3 percent in 2007 and negative growth in 2006.