The strategic document has been jointly conceived and agreed upon, meeting Ethiopia priorities and the core principles of aid harmonization and alignment, as well as of division of labour among donors. Over the next three years, under this bilateral agreement Italy will contribute to Ethiopia more than 46 million Euros, participating to the development of the following sectors: Education, Health, Rural Development and Water & Sanitation. Out of this amount, almost 16 million Euros have already been allocated to the ‘General Education Quality Improvement Programme’ (GEQIP), channelled through the dedicated pooled fund managed by the World Bank. In addition, by 2011 two more million Euros will complement this contribution to the promotion of education in the Country, following specific project appraisal. With regard to the heath sector, Italy earmarked more than 8 million Euros in favour of the health component of the programme ‘Protection of Basic Services - Phase II’ and will contribute further 8.2 million Euros to the Millennium Development Goals Fund and to the implementation of the Ethiopian Health Management Information System. Additional contributions to UNICEF and UNAIDS pooled funds have been envisaged.

The Italian long-standing legacy in the rural development of the Oromia Region – mainly in the areas of Arsi and Bale – will continue through further support to regional authorities, particularly concerning the enhancement of rural infrastructures and services and the improvement of water management. The appraisal of related initiatives – on the whole amounting to 3.5 million Euros – will be finalized in 2009. Commitment in the Water & Sanitation has been also granted through more than 6 million Euros contribution to the National WASH Programme. Finally, among cross-cutting themes, the Ethio-Italian Cooperation Framework 2009-2011 envisages also support to good governance – through renewed co-funding to the Democratic Institution Programme (DIP) – and gender/child protection.

This bilateral agreement does not include any possible additional support that Italy may channel to Ethiopia over the coming years, through participation in multi-lateral initiatives or direct contribution to Italian civil society organizations operating in the Country.