Madam Chairperson,
President of IFAD,
Distinguished Governors,
Ladies and Gentlemen,

It gives me great pleasure to be here today participating in the Twenty-Fourth Session of IFAD’s Governing Council, the second in the twenty-first century. I wish to congratulate IFAD and especially its President for his leadership and on the quality of its technical staff and the effectiveness of its work in the fight against poverty. I would like to associate myself with previous speakers in offering my warm welcome to the Republic of Iceland to the membership of IFAD.

May I also congratulate you, Madam Chairperson, on your second tenure of office and for your able conduct of the Council’s proceedings.

Madam Chairperson,

IFAD, in a relatively short period, is earning a growing solid reputation in taking up the challenges of rural poverty through its innovative poverty eradication instruments and mobilizing resources. It is also satisfying to note IFAD’s active role with the two major global partnerships, namely, the Global Mechanism of UNCCD and the Popular Coalition to Eradicate Hunger and Poverty. I would like to underline Eritrea’s continuing strong belief in and support for IFAD and to express my gratitude for the invaluable work being done by the Fund in many poor countries, including mine.

Madam Chairperson,

Since Eritrea joined IFAD in 1994, we are benefiting from the one ongoing project, financed by IFAD and the Belgian Survival Fund, for the Eastern Lowland Wadi Development Project. Several suitable projects were identified and discussions were being held with IFAD towards their formulation. The war, compounded with concurrent drought, had a devastating effect on our social and economic programmes. My government is launching a comprehensive programme, designed to revive agricultural production, alleviate poverty, reduce the food deficit and resettle persons displaced by the war. Such measures would require timely adjustment of programme interventions including those proposed for IFAD funding. In this context, reallocation of resources from the Belgian Survival Fund was felt necessary. Project formulation process is on the progress with the aim of presenting the project to the December Executive Board.

Madam Chairperson,

Turning to the main agenda items for this session, Eritrea had the honour to be the member of the Executive Board, and several recommendations and resolutions had been submitted to this Governing Council for approval. I would like to express my satisfaction with the report of the consultation, which provided information on the Fund’s strategic directions for the medium and long term and objectives for 2001. The figure reached in the negotiation, the Board agreed to the recommendation of a programme of work for 2001 at a level of USD 394 million. Should resources be available, 29-30 projects could be financed. However, recent reports indicate, the resources available for the Fifth Replenishment is far from near what is required to successfully implement the Fund’s programme of work. All member countries were thus urged to respect their commitments. In this connection, despite the severe difficulties it is facing, the Government of the State of Eritrea had decided to pay its contribution to the Fifth Replenishment of IFAD as soon as possible.

Madam Chairperson,

Eritrea welcomes IFAD’s involvement in the Heavily-Indebted Poor Countries Debt Initiative (HIPC DI), however, this should not be at the cost of its committed mandate but when extra funds are available. Therefore, debt alleviation should be considered as addition.

With regard to Market-Based Project cofinancing resolution, Madam Chairperson, the provisions should provide clearer and earlier guidance for borrowers with its prospects. Eritrea doesn’t have any difficulty to approve the resolution and would continue to participate fully in the Executive Board to estimate on the pricing of the scheme and review its technical and financial soundness.

Global Mechanism of UNCCD, for which IFAD had been selected to house, is making satisfactory progress to alleviate the major problem of desertification. Global warming, drought and deforestation are posing great problems to the environment and food security and could be averted by joint regional and sub-regional efforts. In this regard UNCCD should be encouraged and be supported to strengthen its regional and sub-regional Plan of Action. The African continent, the Horn of Africa in particular, deserves priority attention in this regard.

As to the Popular Coalition, I would like to express my appreciation for the growing support and increasing field activities of the Popular Coalition to Eradicate Hunger and Proverty and for the growing number of governments, intergovernmental organizations and civil society groups that have sought to establish or strengthen partnership including mine with the Popular Coalition.

Madam Chairperson,

Before my conclusion, once again I would like to congratulate, the out-going President of the Fund, Mr. Fawzi H. Al-Sultan, for his achievements and my country will continue its full support to IFAD.

I thank you.

Statement of the Governor of the State of Eritrea

Minister of Agriculture
H.E. Arefaine Berhe