25 Nov 2003

ADB to re-enagage with Solomons

11:43 am on 25 November 2003

The Asian Development Bank says it has committed to fully re-engage in Solomon Islands, but that no new lending will be provided in the short term.

The ADB says it has signed a new poverty alleviation agreement with the Solomon Islands government.

The Poverty Partnership will draw on the National Economic Recovery, Reform and Development Plan for 2003-2006 that was presented to international aid donors in Honiara last week.

The ADB is also in the process of reactivating a ten million US dollar loan for basic service infrastructure damaged during the years of conflict.

The agreements with the ADB reflect the new willingness of international donors to re-engage with Solomon Islands, after the country was wracked by ethnic fighting in the wake of a coup in June 2000.

The agreement comes as the European Union announced assistance of up to 100-million US dollars could be made available to the Solomons for approved projects.