Eritrea - Emergency Reconstruction Credit Project
The Emergency Reconstruction Project will assist Eritrea in the process of long-term reconstruction, and economic recovery, through the implementation of five sub-components: agriculture, infrastructure rehabilitation; private sector reconstruction, social protection, and, balance of payments. The main expected benefit is to mitigate the consequences of the ongoing humanitarian crisis, by providing assistance to displaced people, through agricultural inputs, grants for reconstruction of destroyed housing, and micro-finance. In addition, the project will lay the basis for long term recovery, by rehabilitating key infrastructure, initiate economic growth, and restore macroeconomic stability. Nonetheless, the risk of resumption of hostilities with Ethiopia still exist. Retroactive financing has been approved for the project, for expenditures made after June 1st, 2000, and, full disbursement is expected by December 2002.
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