19 April 1999 

TEXT: WORLD BANK AIDS ALBANIA IN RESPONSE TO KOSOVO CRISIS

(Initiatives announced in April 14 news release) (730) 

Washington - The World Bank announced several initiatives April 14 to help Kosovar Albanian refugees in Albania, and to safeguard Albania's economic stability and development. 

According to a World Bank news release, one initiative is the Post-Conflict Fund, which consists of two grants totaling $2 million. Half the amount will be used to expand schools, supply health centers, improve water supply and sanitation, finance transport, provide food for children, and collect waste at refugee camps in Durres, Lexha, Kukes, and Shkodra. 

Another initiative is the Public Sector Support Program, a fast disbursement operation of $30 million to compensate for revenue shortfalls caused by the crisis. 

Additionally, Bank funds will be reallocated to rehabilitate public buildings to serve as shelters, buy surgical and medical equipment, and make improvements to water systems. 

Following is a text of the news release:

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THE WORLD BANK GROUP 
News Release 

WORLD BANK ANNOUNCES ASSISTANCE TO ALBANIA IN RESPONSE TO KOSOVO CRISIS

TIRANA, April 14, 1999 - Arntraud Hartmann, World Bank Country Director for Albania, today announced several initiatives in an effort to provide the best possible conditions for the Kosovar refugees, and to safeguard economic stability and development in Albania. 

The World Bank has taken several initiatives: 

-- Post-Conflict Fund: Two grants under the Post-Conflict Fund, totaling US$2 million, have been approved by the World Bank for Albania. The first grant (US$1million) is presently being implemented through an Italian NGO-Communita di Sant'Egidio - to expand schools, supply health centers, improve water supply and sanitation, finance transport, provide food for children, and collect waste in Durres, Lexha, Kukes, and Shkodra. The second grant of US$1 million, approved on April 6, will undertake more intensive refugee support activities and assist the development of NGO restructures, which can administer this and other inflows of aid funds. Other NGO partners will also be identified;

-- Public Sector Support Program: A fast disbursement operation of US$30 million will be proposed for approval by the Board of Directors to finance extraordinary budgetary needs and to compensate for revenue shortfalls caused by the crisis. The program is expected to assure sufficient budgetary allocations for Albania, to perform essential public sector functions, especially in social services, civil administration, public infrastructure, and domestic security. The program will assure that fiscal discipline continues to be maintained, fiscal monitoring processes be implemented, and special transparency measures related to relief expenditures be established. This soft credit (which would be repaid in 40 years including a 10-year grace period with a 0.75 percent per annum) is expected to be approved and disbursed in early May;

-- The Bank will continue with the preparation and implementation of several new operations including developmental assistance which is also urgently needed at this time. For example, funds for microcredit programs, irrigation/flood prevention, and the Structural Adjustment Credit (SAC) are expected to be approved within the next 3-4 months. Assistance under these projects exceeds US$40 million. Substantial disbursements are expected to take place immediately after project approval, particularly under the SAC which will provide budgetary support for reforms in the judiciary and civil service, privatization of public banks and strategic public enterprises, and other key actions to modernize the economy; 

-- Several ongoing projects will be restructured to assist the refugees. For example, funds will be reallocated for the rehabilitation of public buildings to serve as shelters, purchase of surgical and medical equipment, and improvements to water systems; and 

-- In addition, the Tirana and Washington staffs of the World Bank are raising funds for the refugees; collections have, to date, exceeded $21,500; local staff are also working at refugee camps in Tirana. 

"With this assistance, the World Bank signals its strong commitment to the needs of Albania. The core of emergency needs for the refugees are being addressed by the people and Government of Albania with the assistance of UNHCR and other relief organizations. The Bank continues, however, to be associated with the country's efforts to maintain economic stability, improve governance and civil service, fight corruption, and continue the implementation of priority development programs and projects," says Ms. Hartmann. 

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