12 Jul 2002

Levels of EU aid to Pacific will be performance based

11:21 am on 12 July 2002

The European Union has warned Pacific countries that their aid may be reduced if they fail to properly use the funds intended for EU initiated projects.

The head of the EU office in Fiji, Frans Baan say aid levels to Pacific countries is now performance based as opposed to the past policy of bulk funding.

The policy change is outlined in the EU's Pacific annual report.

Mr Baan says Pacific countries which fail to use aid allocated for EU initiated projects will receive less funds.

He says however that EU aid to the Pacific may increase under the new policy because of the region's good performance record in comparison to other countries.

"In the past we gave the money to the different countries in the form of a fixed envelope. In the future this will not be the case. My hope, my sincere belief is that we will use more than the money that is allocated to this region. We will really try to make the case that this region is a good performer. I think that is a possibility in comparison to the other ACP countries."

Frans Baan says another change in the EU's aid policy is to target or concentrate funding into specified areas such as rural development.