The EU gives Tonga a $TOP24m grant [1]
Tuesday, May 4, 2010 - 15:12. Updated on Monday, September 9, 2013 - 18:40.
THE Hon Prime Minister Dr Fred Sevele held meetings with EC Commissioner for Development, Mr Andris Piebalgs, and senior officials at the EU Headquarters in Brussels on Thursday and Friday of last week on issues of mutual interest. Tonga's application for budgetary support and its political reform programme were high on the agenda.
The EU responded positively to Tonga's application by agreeing to provide 5.5 million euros, the equivalent of 16.5 million pa'anga, by way of budgetary support. The source of this grant is the Vulnerability Flex Fund established by the EU to assist developing ACP countries counter the impact of the global economic crisis.
Part of Tonga's submission was that budgetary support, linked to specific sectors, might be the more efficient and cost effective modality for the delivery of development assistance from the EU.
The EU also agreed to provide 2.5 million euros (TOP 7.5 million) towards improvement of the electricity distribution network to the rural areas. This is Tonga's first application under the Energy Facility II.
The Hon Prime Minister outlined to Commissioner Piebalgs the timetable and the progress of Tonga's political reform programme, and noted that it was in line with the commitment which had been given by His Majesty's Government.
Discussions also focused on climate change, Pacific Islands Forum and related issues. The European Union are working on proposals for a joint EU/PIF MOU on Climate Change to be signed at the forthcoming PIF Meeting in Vanuatu in August.
The Hon Prime Minister was accompanied to these meetings by His Excellency Sione Ngongo Kioa, Tonga's High Commissioner to London and the EU, and Robert Solomon, the Prime Minister's Economic Advisor.
H.E. Sione Kioa expressed his extreme satisfaction "at the positive outcomes of the meetings which underlined the importance of the Prime Minister's visit and his leading participation at these discussions. TOP 24 million is a lot of money, by any measure, but more particularly now in these financially difficult times". PMO, 01/05/10.