Media Release

01/03/2007

Australian Ambassador Signs Exchange of Letters for Two Australian Aid Projects in China

The Australian Ambassador, Dr Geoff Raby, attended a signing ceremony with the Vice Minister for Ministry of Commerce, Mr Yi Xiaozhun on 13 February 2007.

During the ceremony, Dr Raby and Mr Yi agreed through Exchange of Letters to extend the Xinjiang HIV/AIDS Prevention and Care project and to launch Phase II of the Water Entitlements and Trading Activity. Both projects are funded by the Australian Government's overseas aid program.

The Xinjiang HIV/AIDS Prevention and Care Project commenced in March 2002 and aims to reduce the transmission of HIV infection and reduce the impact of the HIV/AIDS epidemic on the social and economic development of the region.

The Project has been successful in demonstrating innovative multi-sectoral prevention and care programs in the Xinjiang Uygur Autonomous Region.

'The two year extension period will further strengthen the new approaches to prevention and care, and the sustainable management of the HIV and AIDS response in Xinjiang' said Dr Raby.

The Government of Australia will provide up to A$4 million for the extension. This latest contribution brings funding for this project to A$18.5 million.

Dr Raby and Mr Yi also agreed to implement a second phase of a successful Water Entitlements and Trading Activity.

The Water Entitlements and Trading (WET) Activity is a joint initiative between AusAID, the Australian Department of Environment and Water Resources (DEWR) and the Chinese Ministry of Water Resources (MWR) under the framework of the Australia-China Environment Development Program (2006-2011).

The WET Activity is supporting Chinese Government efforts to establish a system to for sustainable water resource management through an entitlements regime.

A second phase, to commence in March 2007, will further improve and refine the WET framework developed during Phase I (April to October 2006). Aspects of the framework will be tested at a provincial level and staff capacity will be built to enable the framework's effective implementation.

'Water is a critical issue for both Australia and China. Further work in water entitlements and trading will build on shared Australian experiences and promote mutual exchange between our two countries. Ultimately, we hope in a small way to contribute to China's sustainable development' said Dr Raby.

The Government of Australia will provide up to A$2 million for WET Phase II. This brings the total cost of the activity to A$3 million.