Brussels, 23 May 2005

Reference: IP/05/591 Date: 23/05/2005 - IP/05/591

The European Commission today approved detailed plans for €323 million of its €350 million post-tsunami reconstruction programme, which will be delivered over the coming two years. €12 million has been immediately released under the Rapid Reaction Mechanism (RRM) to kick-start this longer-term reconstruction work. This builds on the Commission’s €123 million humanitarian aid that started flowing days after the disaster struck.

Commissioner for External Relations and European Neighbourhood Policy, Benita Ferrero-Waldner said “I promised the tsunami victims that I would stand by them, giving them the resources needed to rebuild their communities and restart their livelihoods. Today I deliver on that promise with the final phase of our response”. The Commissioner added that, “I hope that, from this terrible disaster, groups with past differences in Aceh and Sri Lanka can be brought together in the common reconstruction efforts and can find a peaceful settlement.”

This marks the second part of the Commission’s aid response announced by President Barroso in January at the Jakarta donor’s conference. The first phase saw €123 million of humanitarian assistance. This reconstruction phase includes the Tsunami Indicative Programme that totals €323 million spread over two years. The remaining €27 million comes under regional and RRM funds.

The plans released today detail how the Commission proposes to help address the longer-term needs of the victims. The Commission will focus on repairing housing and social amenities, restarting livelihoods so that individuals and their families can get back to leading their own lives and repairing larger infrastructures, such as roads.

In Indonesia, €208 million will support the Government of Indonesia’s Multi-Donor Trust Fund to maximise efficiency and effectiveness in repairing and reinforcing affected communities’ infrastructures and services, restarting the livelihoods of affected people and enhancing the environmental sustainability of coastal areas. Money will also go to strengthen the capacity of local government in Aceh. This will indirectly contribute to facilitating later arrangements for self-government.

In Sri Lanka, up to €100 million will be provided for two main areas – up to €60 million to support the restarting of community livelihoods and rebuilding of communal infrastructure in the north and east and €40 million for reconstruction of 200 kilometres of the coastal road in the south.

In the Maldives, €17 million will help to restart livelihoods and to repair damaged housing on affected atolls. It will also support the Government of Maldives’ in safeguarding against future disaster and boosting longer-term regional development through its ‘safe islands’ programme.

€25 million will fund regional and horizontal activities, including a tsunami EU Coastal Zone Management Facility, technical assistance to European Investment Bank lending and support to early warning systems.