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Norway makes first contribution to North-East Reconstruction Fund

Norway on Tuesday paid US$ 2.7 million into a newly-established trust fund designed to help people in the North East of Sri Lanka reap early and tangible benefits from the ongoing peace process.

These were the first funds to be received by the North East Reconstruction Fund (NERF), which will be financed by international donors and administered by the World Bank's International Development Association.

This contribution is in addition to a US$ 16.5 million contribution for long-term assistance already pledged by Norway for Sri Lanka in 2003, a World Bank (South Asia Region) news release stated.

The fund will support the return of internally displaced persons, and help meet their immediate needs, such as housing, water and temporary cash support, and will assist with de-mining activities. It will also provide health care, including special treatment for those traumatized by the war - with an emphasis on women and children, especially orphans.

It will provide employment and income generating opportunities for all conflict-affected communities, with a focus on micro-finance, repair of minor infrastructure, and improved transport for market access. Other areas identified as requiring special attention include education, vocational training, primary health care, and reconciliation between communities.

The fund will focus on developing the capacity of communities to mobilize and influence the nature of their own development. It will provide support and training to enable them to design and implement their own small-scale projects the release stated.

The World Bank was requested to administer the fund, on January 9, 2003 by the Sub-Committee on Immediate Humanitarian and Rehabilitation Needs (SIHRN) - established by the two parties to the Sri Lanka peace talks.

It is envisioned that the NERF could last for a period of at least three years. This time horizon is in keeping with the parties' vision of SHIRN as an interim institutional arrangement for immediate rehabilitation needs and that the feasible rehabilitation of returning Internally Displaced Persons would take up to three years.

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