U.S. Ambassador Aurelia E. Brazeal and State Minister Dr. Mulu Ketsela Sign Development Program Agreements Valued at 482.3 million Birr (US $55.8 million)

Addis Ababa (U.S. Embassy) -- U.S. Ambassador Aurelia E. Brazeal, State Minister of Finance and Economic Development Dr. Mulu Ketsela, and the Director of the U.S. Agency for International Development (USAID) Bill Hammink, on September 10, signed grant agreements worth US $55.8 million or 482.3 million birr.    

With these grants the U.S. Government, through the U.S. Agency for International Development, is launching a new five-year strategy with a total estimated value of 2 billion birr for development partnership in Ethiopia.  In addition, 1.296 billion birr (US $ 150 million) is projected for HIV/AIDS prevention, treatment, and care and support under President Bush’s Emergency AIDS Relief Program.  The overall aim of U.S. assistance is to help improve basic community services in health and education, to diversify livelihoods and build assets, especially of the rural poor, and increase economic opportunities for all Ethiopians.  USAID will assist with the pilot testing and rapid implementation of the innovative Productive Safety Net Program recommended by the Coalition on Food Security, with funding of 164.2 million birr (US $19.0 million) through the Ministry of Agriculture and Rural Development’s Food Security Coordination Bureau. 

These new agreements will support U.S.-Ethiopian development partnership efforts in nearly every region of Ethiopia to help establish the framework for ending food insecurity, hunger, and poverty.  Specific sectors targeted include health  (113.5 million birr or US $13.1 million); basic education  (79.4 million birr or US $9.2 million); decentralization efforts under the Expenditure Management and Control Program of the Civil Service Reform Program  (27.8 million birr or US $3.3 million); and economic growth and market development  (261.6 million birr or US $30.3 million), including agriculture, livelihoods diversification, private sector and trade development. 

Of the funds included in the Agreements signed today, nearly 172.8 million birr (US $20 million) has come from a new International Disaster and Famine Assistance Fund, a Presidential initiative approved by the U.S. Congress.  The entire amount for the U.S. fiscal year 2004 (FY 2004) has been allocated to Ethiopia, with the support of USAID Administrator Andrew Natsios.

With the Agreements signed today the total amount of U.S. Government development assistance in FY 2004 is 532.5 million birr (US $61.6 million).  In addition, the U.S. Government has committed to provide 864 million birr (US $100 million) of food assistance to Ethiopia for FY 2004 in support of the Productive Safety Net Program.  These allocations are testament to the strong partnership between the two governments of the United States and Ethiopia in addressing hunger and poverty and supporting rural growth.

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