Thank you, Mr. Chair.
I am very pleased to be here on behalf of the minister, Beverly Oda, to discuss the supplementary estimates as they apply to CIDA for the fiscal year 2007-08. I am joined by CIDA's acting vice-president of human resources and corporate services, Gregory Graham.
We're here today as part of CIDA's participation in the supplementary estimates process. I'll begin by noting that the proposed $15.5 million increase in CIDA's operating budget takes into account the additional resources required to cover the cost of two of CIDA's critical programs in Afghanistan and Sudan. Of this, $4.3 million is incremental funding for CIDA and $11.2 million will be transferred from CIDA's grants and contributions budget.
As you are aware, Afghanistan is presently our largest program. It is currently forecast that the agency will spend more than $250 million in grants and contributions to Afghanistan in the year 2007-08. To manage these disbursements the agency is increasing the number of staff in Kabul and Kandahar as well as at headquarters. Our field presence has more than doubled in the past two years. We are continuing to grow it. We will have 35 professional staff working in Afghanistan by April 2008 compared to just 10 in 2006. Overall, with the creation of the Afghanistan task force, we have grown from a program of just over 20 full-time employees to a staff of almost 80. Approximately $12.7 million will cover these costs of the Afghan program, which have ramped up in line with the broad programming.
Similarly, our enhanced programming in Sudan is matched with an additional operating cost of $2.8 million related to the design, implementation, monitoring, and evaluation of projects. We are continuing to assist with a difficult humanitarian crisis in Darfur and at the same time we, along with other donors, are trying to reinforce the fragile north-south peace agreement through development support.
CIDA's program focuses on providing humanitarian assistance to people afflicted by the conflict; facilitating the reintegration of displaced persons; supporting basic education, health services, demining activities; and improving water and sanitation for those in need.
Since January 2006, CIDA has disbursed some $120 million in Sudan, including $72.7 million in crisis assistance and over $47.5 million for reconstruction efforts. To enable us to deliver our program we've created a new division for the Sudan program headed by a director and we are establishing positions in the field so that we can deploy staff to Khartoum and Juba. In Juba this involved CIDA's participation with the Netherlands, Sweden, Denmark, United Kingdom, and Norway in a joint donor office in southern Sudan, the world's first experience in fully harmonizing efforts and co-location among donors.
The supplementary estimates also include additional funding for grants and contributions for CIDA's support of the Lebanon relief fund, some $2.2 million, and humanitarian and reconstruction efforts in Sudan of $16 million. In Lebanon, Canadian support is making improvements to water and sanitation, shelter, protection, medical facilities, and repairs to essential infrastructure.
At the same time, there are a number of reductions to our grants and contributions budget totalling $30.3 million.
These reductions consist of a number of transfers to the Department of Foreign Affairs and International Trade. The largest, involving $11.9 million, reflects the transfer of responsibility to DFAIT for direct support to the African Union Peace Operations in Darfur. The remainder of the transfers will be used to provide administrative support for CIDA's increased presence abroad, $4.5 million, and to finance scholarship programs announced by the Prime Minister in July in Latin America and the Caribbean, 0.7 million.
CIDA will also transfer $2 million to the International Development Research Centre for a project involving the Institute for Connectivity in the Americas.
Supplementary Estimates also identify the need for CIDA to invest an additional $26.6 million in the Canada Investment Fund for Africa, a fund that was set up to encourage investments in the securities of African companies.
The Fund has been quite successful in attracting private sector investments, and in order for CIDA to meet its obligations to match private sector investments, we require an additional $26.6 million this year, over and above the $19 million included in the Main Estimates.
This $26.6 million represents CIDA's full and final participation in the Fund.
The additional investment funds will allow CIDA to meet its contractual obligations to match anticipated investments by the private sector over the balance of the year.
Supplementary Estimates are also being used to authorize a $210.6 million increase in the Agency's grant authorities.
This increase will not result in a net increase in spending authority as the increase in grants will be offset by a corresponding decrease in contribution authorities.
The planned grant authorities will position the Agency to make grants to multilateral organizations for their programs in crisis states such as Afghanistan, Haiti, and Sudan; to maintain CIDA's level of core funding to certain multilateral institutions as well as to finance emergency food aid; to relieve chronic food shortages in Ethiopia; and to assist in the relief of HIV/AIDS and the strengthening of health systems in Africa.
Supplementary estimates are also being used to authorize a $210-million increase in the agency's grant authorities.
Mr. Chair, in all these countries and across our entire aid budget, CIDA's approach is one of effectiveness, focus, and accountability. This approach is helping us achieve results in Afghanistan and Haiti, in Sudan, and in other failed and fragile states. In Afghanistan, thanks to funding from Canada and other donor countries, there are now over six million children in school, including two million girls, which is unprecedented in that country's history. We provide funding to a global polio eradication program that is immunizing more than seven million children in Afghanistan, including some 350,000 in Kandahar.
A micro-credit loans and savings program is helping more than 400,000 adults start a business, rebuild their livelihoods, support their families, and raise healthy children. In Haiti, CIDA supports good governance, including the funding of democratic elections. We provide funding to Haiti to establish a more professional public service, improved infrastructure such as roads and electricity, and a better school system.
Yesterday in Tanzania, the Prime Minister, accompanied by Minister Oda, announced that Canada is mobilizing a broad coalition to strengthen health systems in sub-saharan Africa. This initiative will save a million lives. Canada's $105-million share alone will save more than 200,000 lives. These are results at their most important and most tangible. This is part of a larger 10-year program, called the African health systems initiative announced at a 2006 G-8 summit in St. Petersburg, and reaffirms Canada's engagement in Africa.
Mr. Chair, these are just some of the concrete gains being made through the work of CIDA. Thank you for the opportunity to speak to the committee today. I would of course be pleased to respond to any questions.
Merci beaucoup.