Minister for Foreign Trade Lehtomäki to attend the Iraq reconstruction conference

Press Release 262/2003
22 October 2003


Paula Lehtomäki, Minister for Foreign Trade and Development, will attend the Madrid Conference on Reconstruction in Iraq being held on 23–24 October. More than 50 nations and 20 international organisations will take part in the conference, hosted by Spanish Prime Minister José Maria Aznar. Central actors alongside the United Nations and the World Bank group are, among others, the European Union.

Needs assessments coordinated by the United Nations and the World Bank estimate Iraqi reconstruction needs during the next four years at approximately USD 36 billion. In addition, the Coalition Provisional Authority has estimated that USD 19 billion is needed for other critical reconstruction projects. In total, the need for reconstruction amounts to about USD 55 billion.

At the Madrid conference, Finland will pledge EUR 5 million in assistance as a gift to Iraq in 2004. The assistance will be targeted later, when projects can be subjected to a more precise situation analysis, but Finland will strive to give particular consideration to sectors in which the country is experienced and has the most to offer. In Madrid, the European Union pledge for next year will be EUR 200 million. Finland’s share of this sum is 1.5 per cent, or EUR 3 million. Earlier this spring, via international organisations Finland has both granted and paid EUR 4.8 million in humanitarian aid for Iraq.

Together with Iraq’s acute reconstruction situation, a long-term strategy for the country will also be discussed in Madrid. The pledges made during the conference will mainly be administered through the new multi-donor trust funds for Iraq implemented by the United Nations and the World Bank. Finland’s assistance to Iraq will also be handled through these trust funds.

Finland considers it important to participate in the Iraqi reconstruction efforts of the European Union and the international community to stabilise both Iraq and the wider region. Unless the security situation improves, however, it is difficult to embark on extensive reconstruction and to continue humanitarian efforts.

Further information: Leena Ritola, Counsellor, mobile +358 40 824 7215; Director General Maria Serenius, mobile +358 40 521 2803; and Satu Mäki, Special Advisor to the Minister, mobile +358 40 829 3298.