Annual Report 2010 - Ministry of Finance and Planning

5 | FOREIGN FINANCINGFinancing for Education and HealthThe Government has mobilized asignificant support from the donorcommunity for the development of itseducation and health sectors duringthe period 2005-2010. The newcommitment made for the educationand health sectors from 2005 to2010 was USD 465 million. Of thistotal commitment 53 percent or USD249 million was pledged as grantassistance.The total amount of funds disbursedfor the education sector developmentbetween 2005 and 2010 was aroundUSD 241 million, of which 39 percentwere grants. The total commitmentmade by development partners foreducation sector development in2010 was USD 46.34 million.The World Bank (WB) and theAsian Development Bank (ADB)have been the key contributors toeducation sector development overthe past five years and they jointlyaccount for about 80 percent offoreign assistance for education.The other contributors include theGovernments of Kuwait, China,Sweden and Korea.The health sector has received aboutUSD 224 million over the last fiveyears. Of this amount around 68percent was received as grants.Table 5.23 > Foreign Assistance for Education andHealth Sectors 2005-2010 (USD million)Donor Loan Grant TotalBilateral 42.79 96.56 139.35Japan - 48.30 48.30Kuwait 6.92 - 6.92Saudi Fund 22.97 - 22.97France 12.90 - 12.90USA - 17.81 17.81India - 9.19 9.19China - 7.54 7.54Germany - 3.03 3.03Netherland - 5.30 5.30Sweden - 2.79 2.79Korea - 1.20 1.20FAO - 1.40 1.40Export Credit 35.60 - 35.60Multilateral 141.22 148.99 290.21ADB 67.49 16.10 83.59IDA 73.73 60.50 134.23UN Agencies - 72.39 72.39Total 219.61 245.55 465.16Source: Department of External ResourcesThe total foreign aid commitment forthe health sector in 2010 was USD 47million which is a 57 percent increaseover 2009.The government of Japan,International DevelopmentAssociation of World Bank, UNagencies, Saudi Fund and thegovernment of the United Statesof America accounts for about83 percent of total foreign fundsreceived by the health sector duringthe same period. The other keycontributors to the health sectorinclude several other lendingand donor agencies such as thegovernments of France, India, FederalRepublic of Germany and the ExportCredit Bank of Austria.The disbursement of foreignfinancing in the health and educationsectors has been increasingsince 2005 contributing to theimprovement in aid utilization rate.The total amount disbursed in 2009and 2010 exceeded USD 159 million.The total commitment received foreducation and health sectors in 2010was USD 93.44 million.Increased financing has resulted inimproving the educational and healthfacilities provided at both nationaland provincial levels over the last fiveyears.The number of schools withcomputer labs has been increasedfrom 1,147 in 2005 to 2,033 in 2010showing an increase of 77 percent.Also, the number of schools withlibraries and sanitation facilities asa share of total number of schoolshas been increased from 78 and53 percent in 2007 to 96 and 63percents respectively in 2010.284