New $100 mln fund to fight killer diseases in Myanmar

YANGON, Oct 14 (Reuters) A new 100 million dollars fund to fight three killer diseases in army-ruled Myanmar should be operational early next year under the supervision of a UN-appointed manager, a senior UN official said.

The ''3-Diseases Fund'' is a five-year programme that aims to plug the gap left by the abrupt departure of the Global Fund to Fight AIDS, Tuberculosis and Malaria last year, citing restrictions on their activities.

Health Minister Kyaw Myint signed an agreement with the United Nations Office for Project Services on Thursday that paves the way for the appointment of a UN project manager and setting up of an office to manage the fund.

''The Global Fund basically finished in August and the sense is that the 3D Fund will probably become operational early next year,'' Charles Petrie, UN country coordinator for Myanmar, told Reuters yesterday.

He said bridge funding was in place to keep programmes running until the new fund began operation.

Myanmar's 55 million people suffer some of the highest rates of malaria, AIDS and tuberculosis in Asia, overwhelming the crumbling health care system.

Ruled by the military since 1962, Yangon receives far less Western foreign aid than its regional neighbours due to its poor human rights record and suppression of political opponents.

SAME CURBS Pro-democracy activists have questioned whether the new fund can work effectively under the same restrictions that forced the Global Fund to withdraw.

The junta announced new rules on foreign aid in February, including travel permits and official escorts for field trips and tighter rules on transporting supplies and materials.

Funds must be deposited in a state-run bank and withdrawn in dollar-denominated foreign exchange certificates (FECs), raising the potential for abuse, activists say.

Petrie said guidelines for the 3D Fund were still being worked out.

''The government has assured us that this is a programme to which they attach high importance. Clearly, if in the future there are problems, one should expect a reaction from the donors,'' he said.

The new fund -- backed by Australia, Britain and other European governments -- is expected to work with UN agencies, international NGOs, charities and local health authorities.

Aid workers have said projects backed by the fund could include promoting condom use to prevent HIV infection, expanded TB testing and drug treatments.

Malaria is the biggest killer of children under five in Myanmar, formerly Burma, claiming 3,000 lives each year and drug-resistant strains are spreading beyond Myanmar's borders.

Tuberculosis causes more than 12,000 deaths a year but more worrying is the rapid growth of drug-resistant TB blamed on poor medical services and sub-standard drugs.

An estimated 360,000 people are living with HIV, the virus that causes AIDS, and despite expanded prevention and care in recent years, UNAIDS says much more needs to be done.

Reuters DKB GC0849