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Donors launch Afghan aid scheme

Projects are to be set up to help returning refugees

BRUSSELS, Belgium -- Major donors have launched a big aid scheme for Afghanistan, saying it could grow into funding worth billions of dollars if the country's new government keeps peace.

The donors were looking at immediate problems afflicting the stricken nation after two decades of war ranging from restoring education for girls to tax collecting, policing and sewage systems.

The donors led by the European Union, Japan, Saudi Arabia and the United States believe aid is necessary if the new post-Taliban regime is to establish itself.

A U.S. official said on Thursday the lure of massive aid to rebuild cities, roads and bridges, boost the crippled agriculture sector and reinvent public institutions was an incentive for Afghan warlords to set aside weapons and back the interim cabinet.

"We need this opportunity to warn armed factions and some of the militias that they must back the new government or we cannot do our reconstruction," said Andrew Natsios, chief administrator of the U.S. Agency for International Development (USAID).

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The conference agreed to create an initial $20 million fund for Afghanistan's new administration, which is to take office on Saturday and rule for six months.

"This fund will mainly help pay salaries of government officials and equip their offices," said Natsios.

The two-day Brussels conference, continuing into Friday, is assessing how to coordinate the aid.

Also attending was Afghanistan's finance minister-designate, Hedayat Amin-Arsala.

"Our message must be clear -- reconstruction will only take place in those parts of Afghanistan where local players provide security and stability," said Poul Nielson, European commissioner for development aid.

A "steering group" is to identify the most urgent aid schemes to help the ethnically divided nation of 20 million cope with a harsh winter and continuing famine that has hit the nation during the past three years, organisers said.

The projects include the restoration of agriculture for food purposes rather than heroin crops, security, the return of refugees, and clearing the country of its millions of landmines.

Chris Patten, EU External Relations Commissioner, told CNN: "We have got to provide basic services. The Taliban has no system of policing or tax collecting or sewerage.

"They are not glamorous areas to work in but we have to do it."

He also said they would be responsible for setting up an education system that gave girls a fair chance. Under the Taliban girls were banned from schools.

Patten said the international humanitarian efforts which have recently been undertaken in Kosovo and East Timor could be drawn upon to help in Afghanistan.

"We are in this for the long haul but it is important that the long haul starts rapidly."

The conference involves nearly 40 countries, the World Bank, the Asian Bank for Reconstruction and Development, the United Nations and many non-governmental organisations.

No large-scale financial commitments will be made during the conference, instead any pledges are expected at the January 21-22 ministerial conference in Japan after the World Bank and U.S. Agency for International Development (USAID)completes their assessment of Afghanistan's financial needs.

The European Union has cited forecasts that say $1-$2 billion annually will be needed over the next five years to rebuild cities, transport infrastructure and irrigation facilities to lift the farm sector from decline and reinvent public institutions.

Large sums are necessary to clear the estimated 5-10 million landmines in Afghanistan which kill or maim 10 people every day.