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Donors unlikely to accept Govt.'s tsunami 'wish-list' in toto, says agency
By Feizal Samath
The government has presented a “wish-list” of needs to donors as post-tsunami disaster work, but all of it is unlikely to be accepted by the international community, donor agency officials said yesterday.

Shinya Ejima, Chief Representative here of the Japan Bank for International Cooperation (JBIC), told The Sunday Times some of the proposals in the government’s needs assessment report include new development projects.

He and other donor officials said new development projects included in the government post-tsunami rebuilding plan are unlikely to be accepted by the donor community. Mr. Ejima said a joint needs assessment study by donors with a cost of the damage would be presented to the government this week.

Government officials say they expect $500 million this year through foreign loans and grants but were unable to give a breakdown. The government says the rebuilding exercise would cost $3.5 billion. However one economist, who declined to be named, said the government figure is a “wish-list” to donors.

“Donors will come up with their own figures (under the joint study),” he said adding the IMF was likely to come up with a macro picture study showing fiscal deficit targets, government’s borrowing capabilities and how much grant aid is needed.

Treasury Secretary Dr P.B. Jayasundera said the entire reconstruction and rebuilding process would take two to three years while immediate needs of displaced persons would be met in the next six months.

Asked to comment on President Chandrika Kumaratunga’s six-month time frame - announced in Hambantota - for completion of work, he said what she meant was emergency work.

Dr. Jayasundera said a lot of work had to be done in converting the pledges to loans and agreements for these purposes were currently being worked out with donors.“What takes place now is relief and immediate rehabilitation work.”

Meanwhile the government and the LTTE are discussing modalities for rehabilitation in Tiger-controlled territory, aid agencies said. “We are hopeful both sides would get together and finalise a joint strategy on work in those areas,” said Alessandro Pio, ADB Country Director in Sri Lanka.

Pio said the ADB is following a three-step process in post-tsunami work. Immediate needs is the first step, followed by a re-allocation of its existing funds, while the final process would be seeking ADB board approval in around May for a $100 million facility which will be part grant, part loan.

On transparency and accountability issues, he said ADB has its own accounting and audit processes and the bank was also discussing with the National Procurement Authority and the Presidential Task Force on streamlining tender procedures amongst other issues.

The economist said there is a lack of cohesion amongst donors. “Everyone is running here and there and there is some confusion,” he said. There is also competition amongst donors to get the best projects, an issue the government would have to tackle when it meets donors after a clearer picture of the cost of damage and procedures of work in LTTE-held areas is known.

The UN decision to hire international auditing firm PriceWaterCoopers (PWC) to audit all UN funds to Sri Lanka is yet to be officially communicated to its local office. Deva Rodrigo, senior partner at PWC’s Colombo office said they had little information on this issue.

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