Britain, World Bank give $447 mln to Ethiopia

Fri May 26, 2006

By Tsegaye Tadesse

ADDIS ABABA (Reuters) - Britain and the World Bank announced new aid of $446.8 million to Ethiopia on Friday, but said the cash would again circumvent the federal government because of concerns about human rights and governance.

Both donors stopped direct budget aid there in January after two deadly rounds of post-election violence and the subsequent genocide and treason trial of opposition leaders that was criticised as politically motivated.

"Improving the situation in Ethiopia as regards these issues remains a priority. But the poor people of Ethiopia should not be made to suffer because of these political problems," Paul Ackroyd of Britain's Department for International Development told a news conference.

The new aid package will fund education, water, agricultural and health programmes at local and regional level for the next 14 months.

The Ethiopian government had no immediate comment.

The World Bank said the aid was a trial run to give the federal government an incentive to improve the political and human rights situation.

If it improves measurably, the bank would plan a full three-year aid programme, Ishac Diwan, the World Bank Country Director for Ethiopia and Sudan, said.

"If governance conditions deteriorate, the Bank would reduce aid over time," Diwan said over a video link to the news conference from Washington D.C.

"This is not blank cheque. It is a cheque signed hoping there will be improvement in the political aspect in the country."

The Ethiopian government arrested thousand of opposition supporters after violence struck the capital Addis Ababa in July and November.

At least 82 were killed in clashes with security forces in protests over election results from May 2005 which the opposition said were rigged.

Opposition leaders were later arrested and charged with treason and genocide, blamed for inciting the violence. Seventy-five of them are still on trial in a case criticised by donors and rights groups.

Other donors including the Netherlands, the European Commission, Canada, Ireland, Sweden and the African Development Bank are also considering contributing towards the aid project, the bank and Britain said.

Ethiopia is sub-Saharan Africa's second most populous country and is ranked seventh poorest in the world. Foreign donors finance about one thirds of Ethiopia's annual budget, sending more than $1 billion a year to the country.