Djibouti : cash transfer (non-project assistance 603-0022.00)

The grant is to be used for payment of multilateral development bank debt (first priority) and debt owed to developed countries (second priority). Importation of U.S. goods and services for the public sector will also be an eligible use. There will be no local currency set-aside for this grant. Conditions precedent to disbursement require: (a) a special interest-bearing account for the funds; and (b) submission of a letter by the GRD proposing specific uses of the grant subject to REDSO/ESA review and approval. The grant marks a change from A.I.D. project to nonproject assistance to Djibouti, which may in turn lead to the closing of the A.I.D. Mission there and future administration by REDSO/ESA, as well as to termination of project activities in fisheries, energy, urban infrastructure, and training; the fisheries and energy projects may be continued with GRD funds, although this is in no way certain. Amendment of 9/20/90 provides an additional $1.3 million from the FY90 Economic Support Fund for budget support, including multilateral and bilateral debt service payments and public sector imports of U.S. goods. No local currency deposits will be required. (PD-BBW-677)