Madrid, Oct 21: Pledges of aid to Iraq made ahead of a two-day conference on the issue starting here Thursday look set to meet the expectations of host nation Spain in raising some USD 15 billion, but are set to leave a sizeable shortfall given the country's estimated needs. The World Bank and the United Nations have put at USD 36 billion Iraq's reconstruction needs through to 2006.
The Coalition Provisional Authority (CPA) in Iraq has identified a further 20 billion of needs, the bulk for security and environmental programmes, taking the overall projected total needs to 56 billion.
While organisers are looking to raise some USD 15 to 20 billion here that still ostensibly leaves a gap of 36 billion.
However, while the world bank has put Iraq's needs at around nine billion for next year alone, World Bank economists estimate the country may not be able to absorb more than six billion annually.
Bureau Report