Special to the NNPA from the Global Information Network –
Sudanese authorities hope to unload much of the country’s $38 billion foreign debt before Southern Sudan becomes independent in July.
Sudan has been barred from taking new loans from the World Bank since 1993 because of unpaid obligations on the old loans. This could leave the south, one of Africa’s poorest regions, ineligible to borrow from the bank.
A region the size of Texas with just 30 miles of paved roads, Southern Sudan has no steady power supply, large farms or factories. Half of its eight million people live on less than $1 a day and need food aid, according to the U.N. Money earned from oil extraction makes up 98 percent of the budget.
Of the $38 billion owed, $20 billion is interest, payable to lenders in England, the World Bank and affiliated institutions, Arab oil-producing states, the U.S. and other countries.
Meanwhile, the U.S. lost no time in coming to the aid of the new South Sudan. An electrification project in the village of Kapoeta, funded with U.S. aid, has installed power lines, electricity poles, and street lamps not far from rusting tanks and shot-up buildings.
The Kapoeta project is one of many USAID initiatives in the region. Another top project is the funding of a $200 million highway from Uganda to Juba, the southern capital of newly independent southern Sudan.
"The development needs of Southern Sudan are absolutely enormous," Barrie Walkley, the top U.S. diplomat in Southern Sudan, said at the opening last week of the electricity project. But, Juba activist Lorna Merekaje urged caution towards the incoming flood of American dollars.
"It is a great support to Southern Sudan but it needs to be managed well because if people are not careful then we end up implementing the donor agenda and not the agenda of the people."
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