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INTERNATIONAL DEVELOPMENT
Debt Write-off
Mr. Hepburn: To ask the Secretary of State for International Development (1) which countries have had 100 per cent. of their debts written off by the UK since 1997; [57214]
(2) what the total amount of third-world debt written off by the UK has been since 1997. [57215]
Hilary Benn: The UK is committed to the goal of 100 per cent. debt relief for the poorest countries that will use the savings for poverty reduction. Bilateral (government-government) debt owed to the UK comprises debt owed to the Export Credits Guarantee Department (ECGD), CDC (formerly know as the Commonwealth Development Corporation) and aid debts owed to DFID. A detailed explanation of the various kinds of debt relief can be found in the DFID report 'Statistics on International Development', copies of which are in the Libraries of the House.
Debt relief for the poorest, most indebted countries (most of which are in sub-Saharan Africa) is given primarily through the heavily indebted poor countries (HIPC) initiative. Detailed information on debt relief being given to HIPCs can be found in the World Bank and IMF HIPC Status of Implementation report of August 2005, which is available at the following website address:
We continue to press for the full implementation of the heavily indebted poor countries (HIPC) initiative, and meet and exceed our debt cancellation obligations under the initiative. The UK writes off 100 per cent. of bilateral debts for HIPC countries when they complete the initiative and holds in trust any debt service payments received from HIPC countries that have not yet qualified for debt relief, to be returned for spending on poverty reduction once they qualify.
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16 of the 18 HIPCs that have completed the HIPC initiative have had ECGD debt cancelled since 1997 (a total of £1,081.6 million). These countries are Benin, Bolivia, Burkina Faso, Ethiopia, Ghana, Guyana, Mali, Madagascar, Mauritania, Mozambique, Nicaragua, Niger, Senegal, Tanzania, Uganda and Zambia. Honduras and Rwanda have also completed the initiative, but had no debts to the ECGD.
A further £11 million, the UK's share of loans made jointly with European Economic Community (EEC) partners in 1978, has been written off for the Completion Point HIPCs.
The UK has cancelled 100 per cent. of loans, totalling £46.9 million, held by CDC for Completion Point HIPCs Ghana, Honduras, Tanzania and Uganda. We have also cancelled 100 per cent. of CDC debt for Pakistan, totalling £23.1 million.
DFID cancelled the vast majority of aid loans prior to 1997 (totalling £1.2 billion). Since 1997, the UK has cancelled 100 per cent. of bilateral aid loans (totalling £57.7 million) for Barbados, Dominica, Grenada, Mauritius, the Solomon Islands, St. Lucia, St. Vincent and the Grenadines, Tonga and the Turks and Caicos Islands under the Commonwealth Debt Initiative. We have also cancelled 100 per cent. of bilateral aid loans worth £4.9 million to Nigeria.
The largest ever single debt deal for an African country was agreed by the Paris Club group of bilateral Government creditors for Nigeria in 2005, resolving 100 per cent. of Nigeria's debts to Paris Club, and writing off $18 billion worth of debt stock. The UK share of this write-off was £2.8 billion. A Paris Club debt deal for Iraq in 2005 wrote off 80 per cent. of that country's debt (60 per cent. of which has so far been delivered), with the UK agreeing to write off a total of $1.4 billion as part of this.
In additional to this bilateral debt cancellation, the UK will also play its full part in financing 100 per cent. multilateral debt cancellation at the World Bank and the African Development Bank proposed by the G8. We have also committed to pay our share (10 per cent.) of debt service payments owed to the concessional lending arms of the World Bank and the African Development Bank on behalf of qualifying countries that are not eligible for this initiative.
Financial Irregularities
Anne Main: To ask the Secretary of State for International Development how many cases of financial irregularities have been recorded in his Department in each of the last five financial years; and if he will make a statement. [57551]
Hilary Benn: The following table shows the number of cases of financial irregularities recorded in DFID in each of the last financial years:
| Financial year | Number of cases | Total value (£) |
|---|---|---|
| 2000–01 | 11 | 18,000 |
| 2001–02 | 13 | 89,000 |
| 2002–03 | 15 | 104,000 |
| 2003–04 | 17 | 406,000 |
| 2004–05 | 24 | 158,000 |
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DFID is committed to ensuring that its resources will be used only for the purposes intended. We have clear anti-fraud policies and fraud response plans and have created avenues for staff and external parties to report their suspicions of fraud. The number of cases coming to light has increased year-on-year has is part due to improved reporting procedures and enhanced fraud awareness training, which is now provided to all staff as part of their induction to DFID.
Lesotho
Chris Ruane: To ask the Secretary of State for International Development what steps his Department has taken to develop twinning and partnership arrangements between Lesotho and the UK. [56204]
Hilary Benn: I refer my hon. Friend the Member for Vale of Clwyd to the response I gave on 7 March 2006, Official Report, column 1387W.
Nepal
Mr. Andrew Smith: To ask the Secretary of State for International Development what aid his Department provides for programmes to support children orphaned or displaced by the civil war in Nepal. [58019]
Mr. Thomas: The continuing conflict in Nepal is directly responsible for increases in the number of children being orphaned and/or displaced.
During 2003–05, DFID provided £720,000 to Save the Children for a programme to assist children affected by armed conflict. The programme helped establish protection committees and child protection officers in those districts most impacted by the conflict. It also created information systems to monitor child movements, provided direct support to 10,000 separated and vulnerable children and support for the repair and maintenance of schools and health posts.
DFID's Community Support Programme, which provides for small scale infrastructure improvements at a community level has provided funds to 20 schools in 5 districts in the Mid and Far West of Nepal, to ensure that internally displaced children can continue their education in their new locations, by increasing the number of class rooms. Our support for the Education For All programme, alongside the World Bank and other bilateral donors, is aimed at supporting progress towards the education Millennium Development Goals for all children in Nepal.
DFID has also provided financial support to the Women's Commission for Refugee Women and Children's Watch list. The Children's Watch list aims to provide a monitoring and reporting structure to detail key factors related to the impact or threat of armed violence on children and to strengthen regional and international networks of NGOs to work more effectively to protect children.
Our support for UNICEF has enabled them to develop their knowledge base and to advocate for the promotion and protection of the rights of children caught in armed conflicts around the world, including in Nepal.
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Adam Price: To ask the Secretary of State for International Development what loans have been approved in relation to Nepal in the last two years; and what conditions have been attached to each loan. [58234]
Mr. Thomas: DFID only provides grants to Nepal, but loans are provided by international financial institutions of which the UK is a shareholder. The following loans have been approved by these institutions since 15 March 2004:
Health Sector programme (US$ 10 million loan). This programme seeks to address inequities and improve public health services in Nepal. The loan (and US$ 40 million grant) has the following conditions: the budget allocated to the Ministry of Health shall not be less than 5 per cent. of the total government budget in each year; the Ministry of Health will organise twice yearly joint reviews to review work-plans and budgets; the Ministry of Health will submit progress reports and plans to the World Bank before the joint reviews; and annual financial audit reports will be carried out by an independent auditor within 12 months of the end of the fiscal year.
Education for All programme (US$ 50 million loan). This programme aims to improve access to, and benefit from basic, and primary education for children, especially girls and children from disadvantaged groups, and from literacy programmes for poor adults. The loan conditions are: the development and adoption of an operational manual for the administration of school grants; the provision of trimester financial monitoring reports and annual financial audits within specified periods; establishment of a programme management committee; the government to ensure that schools receiving grants carry out social audits; the Ministry of Education to implement activities under the environmental management and vulnerable communities development plans; the government to ensure that sufficient staff and consultants are available to manage textbook development, production and distribution; the government shall produce a pre-qualified list of non-governmental organisations to provide support services; and the government shall provide annual work plans and budgets for the basic and primary education programme.
Second Rural Water Supply and Sanitation Project (US$ 25.3 million loan). This project will improve rural water supply and sanitation sector institutional performance and support communities to plan, implement, and operate drinking water and sanitation facilities. There are no conditions attached to this loan.
Gender Equality and Empowerment of Women project (US$ 10 million loan). The project is designed to facilitate a process of social, economic, legal and political empowerment of poor rural women. The loan conditions concern: the establishment of project management and co-ordination arrangements; adequate counterpart funding; the use of poverty and social mapping; the targeting of support on dalits (disadvantaged castes) and ethnic minorities; changes in laws relating to discrimination against women, domestic violence and the activities of the National Women's Commission and the National Dalit Commission; the exemption of women's savings and credit clubs from particular articles of the central bank act; and completion of an institutional
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audit for the Department of Women Development and preparation of human resource and professional development plans.
Skills for Employment project (US$ 20 million loan). The project aims to increase access to quality demand-driven skills training. The loan conditions require the establishment of a project implementation unit and project steering committee; approval of technical education policy and plans; inclusion of districts based on poverty and deprivation criteria; and targeting on women and dalits.
Community-Managed Irrigated Agriculture Sector project (US$ 20 million loan). The Project will enhance the livelihood of rural smallholders by improving the performance of the existing farmer-managed irrigation systems suffering low productivity and poverty in the Central and Eastern Development regions of Nepal, while establishing sound service delivery mechanisms and community institutions to support this end. The loan conditions concern the establishment of a project management office; acceptable contracting arrangements between central government and the district development committees and consultants; appropriate policy and institutional reforms; adequate sub-project selection criteria; farmer contributions; financial management systems; adherence to laws on land acquisition and resettlement; environmental management and gender targeting.
Sub-regional Transport Facilitation project (US$ 20 million loan). The project will improve transport infrastructure and trade facilitation arrangements between Nepal and neighbouring countries. The loan conditions concern compliance with land acquisition and resettlement policy; adequate procurement standards for the selection of management consultants; environmental management; introduction of tolls to cover maintenance; provision of counterpart funds; adherence to vehicle load enforcement measures; the opening hours of customs posts and independent technical audits.
Decentralized Rural Infrastructure and Livelihoods project (US$ 40 million loan). The project aims to achieve sustainable increased access to economic and social services, and enhanced social and financial capital for people in 18 poor and remote districts. The loan conditions concern the finalisation of policy on local infrastructure development; counterpart funding; the use of project agreements between district government and communities on financing and construction standards; appropriate sub-project selection criteria including resettlement issues; adherence to road maintenance and environmental standards; adherence to labour laws and project gender action plan; provision of implementation and monitoring plans; and the opening of a project account at the central bank.
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