United Nations Development Programme (UNDP)
Date: 10 May 2005

Norway, UNDP sign aid agreement for Caucasus

New York, 10 May 2005 –

Zephirin Diabre, Associate Administrator of the United Nations
Development Programme (UNDP), and Jan Petersen, Foreign Minister of
Norway, today signed a Memorandum of Understanding committing Norway
to providing $10 million for UNDP projects in Armenia, Azerbaijan and
Georgia over the next three years.

`I am deeply grateful for this commitment from Norway, which builds
on the country’s already substantial engagement, in partnership with
UNDP, in Europe and the Commonwealth of Independent States,’ Mr.
Diabre said during the signing ceremony.

`This Memorandum represents a great opportunity to strengthen our
ties with UNDP,’ said Mr. Peterson. `Norway would like to help shape
projects by taking part in the implementation of programming in the
South Caucasus.’

Norway will provide the funding for programmes in democratic
governance, energy and sustainable development. The projects to be
funded have yet to be specified, and funding is contingent upon
approval by the Norwegian parliament.

UNDP country offices in Armenia, Azerbaijan and Georgia already
collaborate closely with Norway. In Armenia, for example, Norway
support efforts aimed at fighting human trafficking, raising public
awareness and assisting trafficking victims. In Azerbaijan, Norway is
contributing to a UNDP Blood Bank project. And in Georgia, Norway has
supported work on a child labour survey, which UNDP has conducted
together with the Georgian Department of Statistics.

`These are very promising beginnings,’ said Mr. Diabre. `We are
confident that this will provide an excellent foundation for the
expansion of our joint efforts.’

Diabre and Petersen stressed that both UNDP and the Government of
Norway believe that effective democratic institutions are a key
foundation for mediating and mitigating conflict and crisis by
providing non-violent means of resolving political disputes and
managing resources. They also provide a base for implementing strong,
country-owned development strategies to handle political and economic
shocks, to reduce corruption, and, critically, to give the poor a
political voice to secure the services and protections needed to
provide a better future for themselves and their families.

The Government of Norway plans involvement in the Southern Caucasus
by contributing more directly to development on a larger scale, both
regional and national, official said. In order to contribute in an
efficient manner, Norway needs the unique development know-how and
coordination skills of UNDP – especially in relations with local,
regional and national authorities as well as with civil society
organizations, according to Norwegian authorities.

For more information or interview requests, please contact:

Nicholas.gouede@undp.org; tel. +(212) 906 6801
Peter.serenyi@undp.org; tel. 421 2 59 337 164; Mobile: 421 915 766
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