11 March 2005
The World Bank is preparing to reestablish relations with Sudan and commence lending within the year. The WB reopened an office in Sudan in January and is expected to contribute to the massive $7 billion reconstruction program outlined for the "post-conflict" country.
Absent from Sudan since 1993, the World Bank plans to start lending to the country again this year in anticipation of huge reconstruction efforts. Just months after a peace agreement was signed between the government in Khartoum and rebels in southern Sudan, the World Bank is preparing an assessment of the country's reconstruction for a meeting of donors in April and discussing plans to manage foreign aid to Sudan through trusts funds. Debt relief for the war-torn country is a priority concern; according to some reports, the country has a $25 billion debt which would have to be reduced to $6 billion before relations with the World Bank could resume.
This apparent "rush to reengage" must be viewed in the context of a likely increase in oil production in Sudan in the coming years and the economic impacts of a new revenue-sharing arrangement for oil proceeds, which will sharply increase resource flows to southern Sudan, as well as ongoing conflict in Darfur and regional instability.
For more information, see the following articles:
- World Bank considers relations with Khartoum Sudan Tribune, March 12, 2005 (Sudan Tribune website)
- World Bank, Sudan seen resuming relations within yr, by Katie Nguyen, Reuters, Sudan Tribune, March 9, 2005 (Sudan Tribune website)
- World Bank returns to Sudan as donors plan comeback, by Lesley Wroughton, Reuters, Sudan Tribune, January 18, 2005 (Sudan Tribune website)