§ Mrs. ClwydTo ask the Secretary of State for Foreign and Commonwealth Affairs what is the Overseas Development Administration's policy regarding the financing of recurrent costs of projects.
§ Mrs. ChalkerRecurrent costs are met, where possible, from the budget of the local agency undertaking the project or programme which our aid is helping to finance. However, in certain circumstances, we are ready to consider financing recurrent costs through the aid programme. In making judgments we would consider whether there is a genuine shortage of local funds, whether recurrent costs and revenues have been carefully considered and whether sectoral policies are appropriate; also whether the nature of the proposal, for example if it has a pilot or demonstration purpose, presented special justification for contributions to local costs.