December 8, 2004 Ottawa -- The Honourable Aileen Carroll, Minister of International Cooperation, today announced that Canada will participate in counter-narcotics efforts in Afghanistan. She also announced Canadian support for drought assistance, microcredit services to the Afghan people, and support for the government as it extends its programs and benefits to rural areas. "These initiatives are part of Canada's continuing commitment to supporting stability and prosperity in Afghanistan," Minister Carroll said. "They address both short-term and long-term needs of the Afghan people." The initiatives are valued at over $16 million. They include: $1 million for the Counter-Narcotics Capacity Building initiative managed by the United Nations Office on Drugs and Crime. $1.2 million to the United Nations Development Programme to assist Afghanistan in responding to its alarming drought situation. $5 million in additional support for the Microfinance Investment and Support Facility Afghanistan, managed by the World Bank. This brings CIDA's contribution to this initiative to more than $18 million. $9.06 million to Afghanistan's Ministry of Finance to establish of the National Priority Programmes Co-ordination Unit. Today's announcements are part of the $616 million that the Canadian International Development Agency (CIDA) committed to Afghanistan between 2001 and 2009. Canada's effort in Afghanistan reflects a strategic approach, combining the efforts of CIDA, the Department of National Defence, Foreign Affairs Canada, as well as contributions from several other federal departments. It is undertaken in close coordination with the Government of Afghanistan. Funding for this initiative was provided for in the March 2004 federal budget and is therefore built into the existing fiscal framework. - 30 - Information: Andrew Graham Director of Communications Office of the Minister of International Cooperation Telephone: (819) 953-6238 Media Relations Office Canadian International Development Agency (CIDA) Telephone: (819) 953-6534 E-mail: info@acdi-cida.gc.ca Web site: www.cida.gc.ca (electronic version of document) CANADA'S PEACEBUILDING AND RECONSTRUCTION COMMITMENT FOR AFGHANISTAN The Government of Canada works strategically toward rebuilding Afghanistan. This approach draws on Canadian strengths in defence, diplomacy and development, and works in close coordination with the Government of Afghanistan. Delivered through the Canadian International Development Agency (CIDA), Canada's reconstruction and development assistance is targeted to support four of the priority areas identified by the Afghan government in its National Development Framework/Budget: rural livelihoods and social protection; security and the rule of law; agriculture and natural-resource management; and operating budget. The Afghan Government has developed National Priority Programs for each of these areas. Canada is committed to working through these programs over the coming years, following the principle of local ownership and fostering a relationship built on mutual trust. The four initiatives announced today collectively demonstrate continuity and coherence in Canada's commitment to supporting long-term stability and prosperity in Afghanistan. Each initiative will bring important benefits, ranging from combatting the narcotics trade, countering the devastating effects of drought, and improving access to financing for rural and urban families. Most importantly, the Government of Afghanistan has asked Canada to be the sole donor in the strategic coordination of work to extend the authority and benefits of the national government to rural Afghanistan. $1 million for the Counter Narcotics Capacity Building project in Afghanistan through the United Nations Office on Drugs and Crime (UNODC). This initiative seeks to increase the capacity of justice professionals to prosecute high-profile traffickers, which will help reduce the level of narcotics trafficking in the short term. It will lay the groundwork for further long-term capacity building of the criminal-justice and law-enforcement systems and help bring drug traffickers to justice. $5 million in additional support for the Microfinance Investment and Support Facility Afghanistan (MISFA). CIDA was one of the first donors to the national microfinance program, which is one of the Afghan government's top priorities. MISFA expands the existing microfinance network in Afghanistan and provides a range of financial services, including loans for income generation and enterprise development, savings services, and consumer loans to low-income people, particularly women. This increase of $5 million to the grant agreement with the World Bank brings the total amount of CIDA funding to more than $18 million¿making CIDA the single largest donor. Other major donors include the World Bank, the US Agency for International Development (USAID), the United Kingdom Department for International Development (DFID), and the Swedish International Development Agency (SIDA). $1.2 million to the United Nations Development Program (UNDP) to assist Afghanistan's response to the alarming drought situation. Now in its sixth year, the drought has affected the lives of more than six million Afghans: harvest yields are significantly lower than last year's, the yearly average production has been reduced by 25-50 %, and 37 % of the rural population have no secure supply of food. CIDA funding will provide drinking water, repair irrigation systems and assist people displaced due to the drought. $9.06 million for the establishment of the National Priority Programmes (NPP) Co-ordination Unit within the Government of Afghanistan's Ministry of Finance. Through this project, CIDA will work to build the capacity of the government of Afghanistan to direct its resources and programs into the provinces where it will have the greatest strategic reach and impact. It will also help the Government of Afghanistan extend the positive reach of the central government to the provinces.
