IMF to Loan Ukraine US$16.5 Billion
According to a press release on 26 October 2008 by the International Monetary Fund (IMF), Ukraine is to receive an IMF loan of approximately US$16.5 Billion. In that regard, the following statement was issued by Mr. Dominique Strauss-Kahn (pictured below), Managing Director of the IMF:
"An IMF staff mission and the Ukraine authorities have today reached agreement, subject to approval by IMF Management and the Executive Board, on an economic program supported by an SDR 11 billion (US$16.5 billion) loan under an 24-month Stand-By Arrangement. Consideration by the Board would follow approval of legislative changes to Ukraine's bank resolution program.
"Ukraine has developed a comprehensive policy package designed to help the country meet the balance of payments needs created by the collapse of steel prices, and the global financial turmoil and related difficulties in Ukraine's financial system. The authorities' program is intended to support Ukraine's return to economic and financial stability, by addressing financial sector liquidity and solvency problems, by smoothing the adjustment to large external shocks and by reducing inflation. At the same time, it will guard against a deep output decline by insulating household and corporations to the extent possible.
"The IMF is moving expeditiously to help Ukraine, and this program is focused on the essential upfront measures needed to maintain confidence and economic and financial stability. The strength of the program justifies the high level of access, equivalent to 800 percent of Ukraine's quota in the Fund," Mr. Strauss-Kahn added.
Additional information about Ukraine and the IMF can be found at http://www.imf.org/external/country/ukr/index.htm.
Editor’s note: The project management community in Ukraine is represented by the Ukrainian Project Management Association (UPMA). The founder and president of UPMA, Professor Sergei Bushuyev, is an International Editorial Advisor for PMForum and PM World Today. We at PMForum wish to express our support to UPMA, and hope the recent economic and financial crises have no long lasting negative impact on major projects or the PM profession in that country.
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Projects in Biofuels to be Funded in USA - USDA & DOE Announce National Biofuels Action Plan
US Department of Agriculture (USDA) Secretary Ed Schafer and US Department of Energy (DOE) Secretary Samuel W. Bodman have announced in October the National Biofuels Action Plan (NBAP), an interagency plan detailing the collaborative efforts of Federal agencies in the United States to accelerate the development of a sustainable biofuels industry.
"Federal leadership can provide the vision for research, industry and citizens to understand how the nation will become less dependent on foreign oil and create strong rural economies," Secretary Schafer said. "This National Biofuels Action Plan supports the drive for biofuels growth to supply energy that is clean and affordable, and always renewable."
(Photo: Samuel Bodman at podium and Ed Schafer; photo courtesy of the US DOE)
The NBAP was developed in response to President Bush’s plans to change the way America fuels its transportation fleets in the 2007 State of the Union Address. The President’s "Twenty In Ten" goal calls for cutting U.S. gasoline consumption by 20 percent over the next 10 years by investing in renewable and alternative fuel sources, increasing vehicle efficiency and developing alternative fuel vehicles.
"The National Biofuels Action Plan is a strategic blueprint that shows us the way to meet the President’s goal of meaningful biofuels production by the year 2022," Secretary Bodman said. “And to do it in cost-effective, environmentally-responsible ways that utilize a science-based approach to ensure the next generation of biofuels that are made primarily from feedstocks outside the food supply that are produced sustainably."
The President's ambitious alternative fuels production target was later followed by the Energy Independence and Security Act of 2007 (EISA) and the Food, Conservation, and Energy Act (FCEA) of 2008, which responded to the President’s “Twenty in Ten” challenge with mandatory funding of more than $1 billion for such energy activities as loan guarantees for cellulosic ethanol projects as well as other renewable energy and energy-efficiency-related programs.
The NBAP was developed and is being implemented by the Biomass Research and Development (R&D) Board. Co-chaired by USDA and DOE officials, the Board was created to coordinate the activities of federal agencies involved in biomass research and development. Its membership represents the combined expertise and resources of senior decision makers from nearly a dozen executive branch agencies and the Administration.
To enhance the impact of federal biofuels investments and enable attainment of the Renewable Fuel Standard (RFS), the NBAP outlines interagency actions and accelerated federally supported research efforts in seven areas including:
Sustainability
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Feedstock Production
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Feedstock Logistics
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Conversion Science and Technology
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Distribution Infrastructure
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Blending
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Environment, Health and Safety
Interagency working groups have been chartered with near term deadlines to deliver such key results as: the development of science-based sustainability criteria and indicators, 10- year R&D forecasts for research to develop cost-effective methods of producing cellulosic biofuels from non-food based feedstock, to advance these next generation biofuels to commercialization, and recommendations on infrastructure issues.
DOE has dedicated more than $1 billion to research, development, and demonstration of cellulosic biofuels technology through 2009. Additionally, since 2006, USDA has invested almost $600 million for the research, development and demonstration of new biofuels technology. For more information about the NBAP and other USDA and DOE efforts, visit the following web sites www.usda.gov/energy and www.eere.energy.gov
In an effort to meet President Bush's "Twenty in Ten" goal and meet the Renewable Fuel Standard (RFS) targets in the Energy Independence and Security Act of 2007 (EISA) the Biomass Research and Development Board (the Board)—co-chaired by the U.S. Department of Agriculture (USDA) and the U.S. Department of Energy (DOE)—developed the National Biofuels Action Plan (NBAP) to accelerate the development of a sustainable biofuels industry.
To meet increasing demand, we must continue to advance solutions that improve our energy security and reduce greenhouse gas emissions - our economic competitiveness, national security, and environmental health depend on it.
Biomass Research and Development Board
The Board determined that meeting aggressive production targets requires enhanced interagency collaboration among the senior decision makers from 10 federal agencies and the White House. The NBAP identifies key research challenges and defines clear interagency actions critical to developing the science and technology needed to make next-generation, cellulosic biofuels cost-effective so as to grow a biofuels industry and supply chain in a sustainable manner.
NBAP action areas include:
Sustainability: A working group led by USDA, DOE, and the Environmental Protection Agency (EPA) is defining science-based national criteria, which will be established by November 2008, and indicators to assess the sustainability of biofuels production coordinated with ongoing international activities.
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Feedstock Production: A Board-commissioned interagency working group conducted a feedstock availability and cost study using EISA production targets. A separate Board working group is developing a long-term integrated feedstock research and development plan across the federal government, which will reach completion by December 2008.
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Feedstock Logistics: A working group led by USDA will facilitate collaboration to develop and deploy logistics systems that can supply cellulosic feedstocks to demonstration facilities.
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Conversion Science and Technology: A working group composed of DOE, USDA, EPA, National Science Foundation (NSF), and U.S. Department of Defense (DOD) is collaborating to develop a 10-year federal science and technology research plan by December 2008 for developing cost-effective means of biomass conversion and production of cellulosic biofuels.
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Distribution Infrastructure: A U.S. Department of Transportation (DOT)-led group is studying the feasibility of transporting ethanol in pipelines and assessing the availability of geographic information system (GIS) capabilities across agencies.
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Blending: The Board has approved a statement on blending ethanol with gasoline in amounts greater than 10 percent (E10) and will review results of an interagency testing program to evaluate the impact of intermediate blends on vehicle emissions and material compatibility by fall 2008.
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Environment, Health and Safety: An EPA-led working group is inventorying federal activities and areas of jurisdiction with respect to public health, safety, and environmental protection.
For more information about the NBAP and other USDA and DOE efforts, visit the following web sites www.usda.gov/energy and www.eere.energy.gov
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Projects in Government - US DOE Announces Transition Strategy for new Administration
The US Department of Energy (DOE) has announced some elements of the agency's transition plan for the end of 2008 and leading up to the new administration in Washington, DC. This follows Barrack Obama's winning of the US presidential election on November 4, 2008. President-elect Obama will be inaugurated on January 20, 2009, but the transition process to a new US administration is already underway. During this transition, the leadership of most major US governmental agencies is expected to change.
Key points of the DOE announcement on 6 November include the following:
The Department of Energy and its program offices have worked diligently to compile comprehensive information, including all previous and forthcoming issues and developments, for the next administration in order to provide a timely and efficient transition.
The smooth and collegial transfer of power from one Presidential administration to the next is a hallmark of American democracy. It is always an enormous undertaking and requires hard work and a lot of coordination.
With energy security being a key component of US national security, DOE has additional responsibilities to establish and execute a transition plan that minimizes disruption and maintains continuity in these key areas.
In order to outline an effective foundation and blueprint for the next administration, DOE began transition work very early in 2008.
Secretary Bodman has directed his team to be forward-leaning in all efforts to ensure as smooth and effective a transition as possible. Acting Deputy Secretary Jeffrey Kupfer has been leading the 2008 transition work at the U.S. Department of Energy.
Ingrid Kolb, a seasoned 30-year federal employee, has been named DOE’s 2008 Agency Transition Coordinator and is overseeing daily transition operations. Jay Hoffman, Director of Program Analysis & Evaluation at DOE, is assisting Kolb with the preparation of transition briefing materials.
With a $24 billion budget, approximately 115,000 employees, and 17 national laboratories, the Department is involved in many aspects of global energy security – a seamless transition at DOE to the next Administration is vitally important.
Source: US Department of Energy news release, November 6, 2008
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European Refugee Programmes & Projects Receive Commitments
The United Nations Refugee Agency (UNHCR) and Council of Europe Development Bank (CEB) have announced a partnership to find durable housing, education and health solutions for thousands of European refugees, displaced people and returnees.
Signed by UN High Commissioner for Refugees Antònio Guterres (pictured) and CEB Governor Raphaël Alomar in Geneva, the agreement seeks to help those uprooted under UNHCR’s mandate – primarily in European countries hosting large displaced populations, such as Georgia, Serbia and Bosnia and Herzegovina.
Under the new arrangement, the CEB will consider financing selected UNHCR projects through grants and loans. Dating back to 1999, the CEB-UNHCR relationship began when the Bank provided emergency water filtration plants and transport for refugees and internally displaced persons (IDPs) in Kosovo.
The CEB has since provided €3 million to UNHCR to support programmes aimed at sustainable returns in Bosnia and Herzegovina as well as housing and assistance for refugees leaving collective centres in Serbia. Last month, the Bank announced funding for UNHCR’s operations in Georgia to provide shelter for the newly displaced population from South Ossetia.
“The successful cooperation between the CEB and UNHCR represents an outstanding example of how to bridge the gap between humanitarian assistance and long-term development activities, and sets a model that UNHCR is keen to replicate with other international financial institutions and development actors,” said UNHCR spokesperson Ron Redmond.
Source: UN Daily News Digest, 31 October 2008
Editor’s note: PMForum supports efforts by the UNHCR and other multilateral agencies to fund programmes and projects to aid refugees around the world. Just as emergency response projects related to natural disasters need effective professional project management, so do these refugee support programmes. We would also welcome stories from those involved in such projects. Please contact editor@pmforum.org.
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NASA Signs Statement of Intent to Cooperate with Korean Aerospace Research Institute in Seoul
NASA has announced the signing of a Letter of Intent for future cooperation with the Korean Aerospace Research Institute. During a meeting on 30 October 2008 at the Ministry of Education, Science and Technology (MEST) in Seoul, Korea, NASA's Assistant Administrator for External Relations, Michael F. O'Brien (pictured), and MEST's Director-General for Big Science, Munki Lee, signed the joint statement of intent which identified potential interest in cooperation in civil space and aeronautics activities.
According to the statement and the NASA press release, the two agencies agreed to jointly identify new cooperative activities related to space exploration, Earth science, planetary science, human space flight and aeronautics research. The goal of these discussions will be to advance the interests of both nations through cooperation in space and aeronautics programs. A joint report is expected in eight months.
The discussions are to explore a wide range of potential cooperative efforts, including exchange of research data and analysis, potential contributions of scientific instruments and hardware to support future missions, and collaborative exploration architecture planning.
According to NASA, the discussions may also include the International Lunar Network, an ongoing multilateral initiative to establish a robotic network on the surface of the moon; the Global Exploration Strategy, a dialogue involving fourteen international space agencies for enhanced international cooperation in space exploration; and the International Space Exploration Coordination Group, a multilateral effort to coordinate space exploration activities among government space agencies.
For more information about NASA, visit http://www.nasa.gov/
For more information about Korea Aerospace Research Institute, visit http://www.kari.re.kr/
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IMF issues Economic Outlook for Asia & Pacific Region
According to the International Monetary Fund (IMF), Asia is facing the risk of a sharp slowdown as the global economy enters a major downturn. The IMF calls for decisive actions to maintain financial stability and support growth in the region in its latest report on Asia. "Growth in Asia is expected to slow substantially along with the rest of the world, as exports weaken and spillovers from the global financial turmoil weigh on domestic activity," according to the
Regional Economic Outlook (REO) for Asia and Pacific, which was released on 24 November 2008.
According to the report, the baseline scenario for Asia sees recovery beginning in the second half of 2009, but risks to the outlook are significantly larger than usual and tilted down. A deeper and more protracted global slowdown than currently anticipated, combined with tighter international financial conditions, could have significant spillovers to the region.
Despite Asia's generally strong fundamentals—including its substantial cushion in official reserves, improved macroeconomic policy frameworks and generally robust corporate balance sheets and banking systems—the region is "being rattled by the crisis due to its close trade and financial integration with the rest of the world, and any hope that the region would escape the crisis unscathed has by now evaporated."
The REO calls for quick and decisive actions by policymakers in the region to respond to heightened financial risks and slowing domestic activity. First, their financial policies need to focus on addressing spillovers from the global credit turmoil by safeguarding financial systems and maintaining orderly credit conditions. Second, with inflation projected to moderate in the near term, monetary policy in most countries should ease to stabilize financial conditions and address risks. Third, given progress in fiscal consolidation in recent years, many countries can implement fiscal stimulus to address downside risks to growth.
The REO also addresses longer-term issues that will affect the region's economies as the impact of the current crisis recedes. Chapter II entitled "The Globalization of Asian Inflation" examines the rising importance of commodity prices in Asia's inflationary process and its potential implications for monetary policy.
Chapter III, "The Graying of Asia: Demographics, Capital Flows, and Financial Markets," analyzes the impact of rapid demographic change in Asian countries on their external positions and capital flows as well as on financial markets and asset prices. In particular, the study shows that vastly different rates of aging across Asia are likely to have sizable effects on current accounts and capital flows—with capital tending to flow "uphill" from younger to older countries. Governments can ease the demographic transition by taking policy measures now. For aging countries, this may involve an emphasis on pension and labor force reform. For younger countries, requiring substantial capital for their growing labor forces, enhancing financial intermediation, and boosting productivity will take center stage.
The report can be found online at http://www.imf.org/external/pubs/ft/reo/2008/APD/ENG/areo1108.pdf.
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Congo Mining Projects Review set to Complete Soon
Reported by Jaycee Krüger in South Africa
Ming News reported that Congo's recently-appointed government called on Monday for the rapid completion of a delay-plagued review of mining contracts as it seeks to combat waning confidence among investors. The mineral-rich central African nation set up the review process early last year and set to complete in six months, aims to overhaul 61 deals mostly agreed during the chaos of a 1998-2003 war, and guarantee a fair share of revenues for the state.
"We have asked the Mines Minister to accelerate the process in order to reassure our partners," Information Minister Lambert Mende told Reuters following a cabinet meeting. Earlier this month, Congo's central bank governor cited the lagging process, along with weakening global demand for metals and a worsening armed conflict in the eastern borderlands, as responsible for an acute mining sector slowdown. Of the 61 contracts, 14 are classed as "green" meaning acceptable, 26 are "orange" which require agreement on some points, and 21 are "red" which face cancellation.
Congo's mines ministry announced it had completed its initial review of the deals in February and promised a "brief and open" appeal process to avoid litigation and international arbitration. However, contract renegotiations between state miners and their private partners have dragged on for months.
Interest in Congo's once mighty mining sector had boomed following 2006 polls, which confirmed Joseph Kabila as president and were intended to usher in a new era of stability and economic growth. The huge southeastern province of Katanga has seen major investment from international mining companies such as Freeport McMoRan Copper and Gold, BHP Billiton, and Katanga Mining. The sector has been hit hard by the dramatic fall in copper and cobalt prices in the past six months, however, with many companies now delaying development projects or suspending operations entirely. Benchmark copper prices as set on the London Metal Exchange ended Monday's trading $3 750 per ton, down almost 60 percent from the record high they hit in July.
On Friday, Toronto-listed Katanga Mining said it had temporarily halted mining operations at two sites as a result of lower prices of aerospace metal cobalt. Adding to Congo's woes, a four-year-old Tutsi-dominated rebellion has gained significant ground in recent weeks, throwing the world's largest United Nations peacekeeping mission into disarray, and causing investors to rethink the prospects for long-term stability.
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