Maputo, Mozambique — The European Commission on Wednesday announced an aid package of 329 million euros (about 281 million US dollars) for Mozambique.

The aid is to be disbursed over three years under the Cotonou Agreement, the successor of the Lome agreements that govern relations between the the European Union and the 77 African, Caribbean and Pacific nations.

According to a European commission press release, the commission delegate in Mozambique, Javier Payol, on Wednesday handed President Joaquim Chissano a letter from the European Commissioner for Development, Poul Nielson, announcing the amount.

Of this sum, 274 million euros would go towards macro-economic support, sector policies, and other programmes that contribute to poverty alleviation.

The other 55 million euros is intended for "unforeseen needs", such as emergency aid, contributions towards debt relief initiatives, and making up shortfalls caused by instability in export revenues.

Meanwhile, the French government on Wednesday provided 6.5 million euros (about 5.6 million US dollars) for the repair of roads in Maputo province.

This amount was granted under an agreement signed by the governor of the Bank of Mozambique, Adriano Maleiane, and the Maputo representative of the French Development Agency (AFD), Odile Deserts.

The money will be used to rehabilitate a nine kilometre stretch of the main north-south highway in the Incomati flood plain in Manhica district, about 80 km north of Maputo, and a 24 kilometre stretch between the towns of Magude and Xinavane.

Both these roads were severely damaged by the massive floods on the Incomati in February 2000.