OSCE donors pledge more than 10 million euros for economy in Georgia/South Ossetia

BRUSSELS, 14 June 2006 - Participating States of the Organization for Security and Co-operation in Europe pledged more than 10 million euros at a conference hosted by Belgium today on economic rehabilitation in the zone of the Georgian-South Ossetian conflict.

The conference, at the initiative of the Belgian OSCE Chairmanship, was opened by the Chairman-in-Office, Belgian Foreign Minister Karel De Gucht. Georgian Prime Minister Zurab Nogaideli addressed the meeting.

The donor conference raised the equivalent of more than 10 million euros in support of a package of projects for social and economic rehabilitation of the region on which all parties have agreed. The list of projects was put together based on a needs assessment study carried out in 2005-2006 by international, Georgian and South Ossetian experts.

The meeting was a first if its kind for the OSCE and took place in the presence of the four Co-Chairs of the Joint Control Commission charged with the comprehensive peaceful resolution of the long-standing conflict in the area. Their presence underlined the political significance they attached to the package of proposals and to furthering the peace process.

The Belgian Chairman-in-Office expressed the hope that the support gathered at the conference would help to build confidence between the parties and bring closer a settlement of the conflict in the Georgian-Ossetian zone to the benefit of the people and stability in the region.

The pledges were: European Commission (two million euros), the United States (two million US dollars), Sweden (one million euros), Belgium (one million euros), Germany (500,000 euros), the Netherlands (500,000 euros), Norway (about 250,000 euros), Spain (200,000 euros) and Finland (200,000 euros). Estonia, Turkey, France, Hungary, the United Kingdom, Lithuania, Italy, the Czech Republic, Croatia, Poland and Andorra pledged amounts up to 150,000 euros, making a total of about 7.9 million euros.

On top of its pledge on the 2006 budget, the European Commission indicated  it was ready to support the package proposal with a similar effort in 2007, provided the conditions in the field are conducive and the implementation of the projects goes well.

The Russian Federation has said it is going to support the economic development of the region with the equivalent of about three million euros. It also foresees the possibility that part of this amount would be allocated to specific projects co-ordinated with the OSCE, including those contained in the package proposals.

In his closing remarks, Minister De Gucht stated: "This pledging conference is a sign of our belief that peace can be built in this region, that the prospects of the population living there can be improved. Peace and economic development are our common responsibility."