HANSARDCommons08 Nov 20232 contributions

Foreign, Commonwealth and Development Office

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International Financing Facility for Education

The Minister of State, Foreign, Commonwealth and Development Office (Mr Andrew Mitchell)
ConservativeSutton Coldfield
I have today laid a departmental minute which describes a new liability the Foreign, Commonwealth and Development Office (FCDO) is undertaking to support education in lower middle-income countries (LMICs).
The departmental minute sets out details of a new liability undertaken by the Foreign, Commonwealth and Development Office (FCDO). The liability is a new guarantee of up to $102 million to the International Financing Facility for Education (IFFEd). The length of this liability is 23 years. In addition to the contingent guarantee, FCDO will also provide a paid-in capital guarantee of $18 million and grant finance up to £80 million over four years. This total FCDO contribution of up to £180 million will contribute to unlocking around $1 billion in new, additional and affordable education loans to address the learning crisis in lower middle-income countries (LMIC), with a focus on girls and the most marginalised.
It is normal practice, when a Government Department proposes to undertake a contingent liability in excess of £300,000 for which there is no specific statutory authority, for the Minister concerned to present a departmental minute to Parliament giving particulars of the liability created and explaining the circumstances; and to refrain from incurring the liability until 14 parliamentary sitting days after the issue of the statement, except in cases of special urgency.
I am making a written ministerial statement (WMS) to the House for information and have separately notified the Chairs of the Public Accounts Committee, Foreign Affairs Committee, and International Development Committee of the UK’s intention to undertake this liability.
IFFEd is a new, innovative multi-donor instrument that will use a combination of donor guarantees and grants to unlock significant affordable finance for education in LMICs. LMICs are home to the largest number of children not in school. Some 77% of children in LMICs are unable to read a simple sentence by the age of 10. LMICs are unable to access suitable education financing at the required scale. Working through the multilateral development banks (MDBs), IFFEd will address this gap in the education aid architecture. The initial MDBs to participate in IFFEd are the Asian Development Bank (ADB) and the African Development Bank (AfDB). More MDBs will be able and encouraged to join in the future.
IFFEd uses donor guarantees to provide portfolio support to MDBs. This allows MDBs to expand their total lending capacity for education by insuring their entire portfolio against the risk of late payment. In combination with the guarantee, IFFEd also provides grants which makes the additional education finance affordable for LMICs.
IFFEd unlocks seven times donors’ cash investments in additional affordable education finance. This represents an efficient use of official development assistance (ODA) finance, maximising donor resources for education in an unprecedented way.

Treaty on Conventional Armed Forces in Europe

The Secretary of State for Foreign, Commonwealth and Development Affairs (James Cleverly)
ConservativeBraintree
On 7 November, Russia withdrew from the Treaty on Conventional Armed Forces in Europe (CFE). The CFE is a cornerstone of Europe’s security architecture that sets limits on the amount of major military equipment, and aims to make a surprise attack on the European continent less likely.
The UK unequivocally condemns this step, which is the latest in a succession of Russian efforts to undermine strategic stability and the Euro-Atlantic security architecture. Russia’s decision further demonstrates its continued disregard for those arms control arrangements, based on key principles of reciprocity, transparency, compliance and verification, that have helped keep us safe since the end of the cold war.
Russia’s unilateral withdrawal undermines reciprocity, which lies at the heart of the CFE Treaty. To continue to implement the treaty would suggest that, despite Russia’s invasion of Ukraine and withdrawal from CFE, we think that the treaty continues to operate as intended. This is plainly not the case.
In response, the UK has decided to suspend its participation in the treaty and instead to work with likeminded nations to develop and implement voluntary stabilising measures.
Suspending participation while remaining a signatory is the best available option to preserve both the spirit and the content of the CFE treaty, while allowing us to resume implementation should future conditions allow.
The legal basis for suspension of the treaty is fundamental change of circumstances, as reflected in Article 62 of the Vienna Convention on the Law of Treaties (VCLT). This is a well-established basis for suspension of a treaty in both customary international law and the VCLT.

International Financing Facility for Education

The Minister of State, Foreign, Commonwealth and Development Office (Mr Andrew Mitchell)

ConservativeSutton Coldfield

I have today laid a departmental minute which describes a new liability the Foreign, Commonwealth and Development Office (FCDO) is undertaking to support education in lower middle-income countries (LMICs).

The departmental minute sets out details of a new liability undertaken by the Foreign, Commonwealth and Development Office (FCDO). The liability is a new guarantee of up to $102 million to the International Financing Facility for Education (IFFEd). The length of this liability is 23 years. In addition to the contingent guarantee, FCDO will also provide a paid-in capital guarantee of $18 million and grant finance up to £80 million over four years. This total FCDO contribution of up to £180 million will contribute to unlocking around $1 billion in new, additional and affordable education loans to address the learning crisis in lower middle-income countries (LMIC), with a focus on girls and the most marginalised.

It is normal practice, when a Government Department proposes to undertake a contingent liability in excess of £300,000 for which there is no specific statutory authority, for the Minister concerned to present a departmental minute to Parliament giving particulars of the liability created and explaining the circumstances; and to refrain from incurring the liability until 14 parliamentary sitting days after the issue of the statement, except in cases of special urgency.

I am making a written ministerial statement (WMS) to the House for information and have separately notified the Chairs of the Public Accounts Committee, Foreign Affairs Committee, and International Development Committee of the UK’s intention to undertake this liability.

IFFEd is a new, innovative multi-donor instrument that will use a combination of donor guarantees and grants to unlock significant affordable finance for education in LMICs. LMICs are home to the largest number of children not in school. Some 77% of children in LMICs are unable to read a simple sentence by the age of 10. LMICs are unable to access suitable education financing at the required scale. Working through the multilateral development banks (MDBs), IFFEd will address this gap in the education aid architecture. The initial MDBs to participate in IFFEd are the Asian Development Bank (ADB) and the African Development Bank (AfDB). More MDBs will be able and encouraged to join in the future.

IFFEd uses donor guarantees to provide portfolio support to MDBs. This allows MDBs to expand their total lending capacity for education by insuring their entire portfolio against the risk of late payment. In combination with the guarantee, IFFEd also provides grants which makes the additional education finance affordable for LMICs.

IFFEd unlocks seven times donors’ cash investments in additional affordable education finance. This represents an efficient use of official development assistance (ODA) finance, maximising donor resources for education in an unprecedented way.

Treaty on Conventional Armed Forces in Europe

The Secretary of State for Foreign, Commonwealth and Development Affairs (James Cleverly)

ConservativeBraintree

On 7 November, Russia withdrew from the Treaty on Conventional Armed Forces in Europe (CFE). The CFE is a cornerstone of Europe’s security architecture that sets limits on the amount of major military equipment, and aims to make a surprise attack on the European continent less likely.

The UK unequivocally condemns this step, which is the latest in a succession of Russian efforts to undermine strategic stability and the Euro-Atlantic security architecture. Russia’s decision further demonstrates its continued disregard for those arms control arrangements, based on key principles of reciprocity, transparency, compliance and verification, that have helped keep us safe since the end of the cold war.

Russia’s unilateral withdrawal undermines reciprocity, which lies at the heart of the CFE Treaty. To continue to implement the treaty would suggest that, despite Russia’s invasion of Ukraine and withdrawal from CFE, we think that the treaty continues to operate as intended. This is plainly not the case.

In response, the UK has decided to suspend its participation in the treaty and instead to work with likeminded nations to develop and implement voluntary stabilising measures.

Suspending participation while remaining a signatory is the best available option to preserve both the spirit and the content of the CFE treaty, while allowing us to resume implementation should future conditions allow.

The legal basis for suspension of the treaty is fundamental change of circumstances, as reflected in Article 62 of the Vienna Convention on the Law of Treaties (VCLT). This is a well-established basis for suspension of a treaty in both customary international law and the VCLT.