§ Lord Kennetasked Her Majesty's Government:
What is the financial position in the Korean Peninsula Energy Development Organisation (KEDO), of which the European Union is a member, regarding payment for the heavy fuel oil promised by KEDO to North Korea; and whether in particular the United States is up-to-date with the funding to which it is committed. [HL2693]
§ Baroness Symons of Vernham DeanThe Korean Peninsula Energy Development Organisation (KEDO) is committed to delivering 500,000 metric tonnes of heavy fuel oil a year to North Korea. Deliveries should be completed by 20 October each year. The 1997 deliveries were completed in January 1998, three months late, at a cost of $64.9 million. The 1998 deliveries are also running behind schedule because of funding difficulties. By the end of July, some 218,000 metric tonnes will have been delivered, at a cost of $21.2 million. The estimated cost of delivering the balance (282,000 metric tonnes) is $28 million. KEDO has not yet secured funds for the 1998 balance and, after receipt of the 1998 EU contribution of 15 million ecu, will still have an outstanding debt of $48 million for 1997 and 1998 deliveries.
In accordance with the agreed framework, the United States, on behalf of KEDO, has taken the lead in arranging funding for the heavy fuel oil deliveries. Of the $171 million total heavy fuel oil costs to date, the United States has contributed some $80 million, while the EU will have paid almost $50 million. President Clinton has recently reiterated the United States' commitment to providing full funding to enable KEDO to meet its commitments for 1998 heavy fuel oil deliveries.