Mrs. Agnes van Ardenne–van der Hoeven, Minister for Development Co-operation of the Kingdom of The Netherlands, will visit Sri Lanka from 3 November - 5 November, 2003. The objective of her visit is to convey a strong message of support for the ongoing peace process in Sri Lanka. Mrs. Van Ardenne: “With this visit I wish to give evidence of the continuous commitment of the Netherlands and the international community for the peace process in Sri Lanka and to encourage a peaceful settlement of the devastating civil war that has ravaged this island for too long.”
The Minister will have meetings with Hon. Government Ministers, G.L. Peiris, Milinda Moragoda and Rauf Hakeem, with Opposition Leader Mahinda Rajapakse and donor representatives in Colombo, discussing the peace process and development co-operation issues. She will furthermore travel to Trincomalee District where she will meet Government representatives, NGO’s, local community leaders, and private sector representatives. In Trincomalee she will meet Mr.Samantha Abeywickrema, Chairman of the Sri Lankan Federation of Chambers of Commerce to conclude a bilateral co-operation program in the field of Private Sector Development.
Minister Van Ardenne is to visit Sri Lanka on the invitation of Prime Minister Wickremasinghe, that was extended to her during last year’s UN General Assembly.
Minister Van Ardenne will give a statement for the media:
Date: 5 November 2003
Venue: Hilton Colombo, Room Amethist 2
Time: 9.00 to 10.00 a.m.
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1) Main Dutch development co-operation programmes
In 2002, The Netherlands has waived Sri Lanka’s debt service for 2003 and refunded the debt service that was already paid by the Sri Lankan government in 2002. Through this debt relief, a considerable amount of LKR 1 billion has become available for the Sri Lankan budget, with a view to assist the government in meeting its public expenses.
This debt relief came on top of the LKR 1.1 billion (Euro 10.6 million) financial support to the ongoing development programmes from the Dutch government in 2002. In 2003, Dutch development co-operation funds for Sri Lanka valued LKR 872.9 million (9,3 million Euro). This support takes effect through development programs in the field of environment, reconstruction and rehabilitation, and through the Plantation Welfare Trust.
Another LKR 45 million (Euro 481,500.00) has been granted to the HALO Trust Mine Clearance program in Sri Lanka. This program will end in 2003. The contribution is a result of a discussion between Prime Minister Ranil Wickremesinghe and Minister Agnes van Ardenne, in September 2002, when they met in New York in the context of the United Nations General Assembly. The HALO program seeks to target priority minefields in the Jaffna peninsula. Clearing Schools, public buildings, domestic houses and agricultural land, using a combination of mechanical and manual mine clearance.
Furthermore, Sri Lanka is eligible for the Dutch ORET programme, which is designed to help generate employment and boost trade and industry in developing countries. The ORET programme reduces the costs of eligible projects through the award of grants for the purchase of capital goods, services or works from The Netherlands.
The ORET grant agreements concluded between the governments of Sri Lanka and The Netherlands in 2002 and 2003 support transactions in the field of shipping, road construction and railway infrastructure, and represent a total grant value of LKR 3,03 billion (Euro 27,5 million).
In July 2003, a new economic development programme was launched aimed at assisting Dutch-Lankan joint ventures to undertake pilot projects in local market sectors with high or emerging commercial potential. In 2004, some five pilot projects, with a total value of LKR 220,3 million (Euro 2 million), will be co-financed by the Dutch government.
Finally, the Dutch Development Bank FMO, managing funds of the Dutch ministry of Development Co-operation, has granted numerous soft loans to a number of Sri Lankan organisations, such as DFCC, NDB Bank, NDB Housing Bank, SAGT Port terminal and Lanka Orix.
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2) Dutch contributions to be signed on 3 November 2003 by minister Agnes van Ardenne in Trincomalee
* North Eastern Community Rehabilitation and Development Programme (NECORD)
The Netherlands has provided LKR 297,4 million (Euro 2.7 million) for the North Eastern Community Rehabilitation and Development (NECORD) project. This funding, which was used efficiently and effectively, contributed towards the payment of the Unified Assistance Scheme (UAS) and the purchase of school furniture for rehabilitated schools.
Minister van Ardenne will sign a contract for LKR 280,4 million (Euro 3 million) for further support to NECORD. This funding will be allocated for the purchase of agricultural machinery for the Agrarian Kendra Nilayams (the Agricultural Service Centres)in the North and the East; designing and implementation of agricultural, economic and environmental training courses for returnee farmers; further support to the UAS and a contribution to the UNDP for the administration of the ADB funded loan scheme for the fisheries associations.
* Programme to support the Federation of Chambers of Commerce and Industry in Sri Lanka (FCCISL)
With initial support of the Netherlands Government, the Federation of Chambers of Commerce and Industry in Sri Lanka (FCCISL) successfully established a Regional Development Unit within its organisation and established Regional Chambers in Ratnapura and Kalutara. With this continued support of LKR 47 million (Euro 425.000,00) the FCCISL will be able to establish additional regional chambers in districts where these do not exist yet, as well as to provide further support in training, lobbying and policy advocacy for micro-, medium and small entrepreneurs in the regions. The Netherlands Government supports the idea of stimulating local economic development as regional engines for growth, whilst adhering to just social and environmental standards.
* Programme to support the Consortium of Humanitarian Agencies
The Consortium for Humanitarian Agencies (CHA) will be supported in its activities for peace and development advocacy at local level in Sri Lanka. A contract of LKR 44 million (Euro 400,000.00) will be signed in order to create and support a civil society movement, linking national- with grassroots organisations. The programme, which is based on a commitment to Human Rights and Development, will pay specific attention to cultural aspects and identities in the peace and development process and furthermore aims to create a window for support of civil society on peace and development, opening opportunities for other donors and funding agencies to participate in the programme.
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