The total estimated cost of the National Adaptation Strategy is approximately €349 million or E2.6 billion. A summary of the cost estimate of the previous chapter, given by sector, period, and likely source of funding, is presented as Table 25 above. The breakdown by sector indicates that close to 30% of the total would go to increase the competitiveness of the sugar industry, the largest portion of it towards solving the financial problems of the cane-growing smallholders. Approximately another 30% would go into diversification efforts, energy and alternative crops among them. A further 15% would be absorbed by the restructuring of social amenities at the sugar communities, notably their transition from company towns to municipal entities, while another big share -- about 22% -- would fund multi-sector issues at a national level. Most prominent among these would be the general reinforcing of social services and the completion of the financing of LUSIP. About 3% of the estimate is for institutional and trade related issues.
The cost estimates for the various strategy measures, as well as the appropriate timing for the respective applications were obtained from representatives of the sugar sector, government departments, and institutions engaged in development work.
In addition to their principal areas of concern, the measures have been classified with regard to the time frame, in which they have to be taken. A short term, medium term, and a long term have been foreseen. The short tem encompasses the remainder of 2006 until July 2007. The medium term includes the remainder of 2007 until end 2008, while the long term includes the years from 2009 through 2013. The 36% decline of the EU sugar price is starting in 2006 and will be complete by July 2009. The EU accompanying measures are envisioned to continue until 2013, while implementation may go up to 2015.
An indication of the most likely source of funding for each of the measures is also provided. The breakdown by phase of application shows a clear emphasis on the medium term, i.e. during 2008 and 2009. In that period, just about 50% of the estimated amount would be spent, with 4% being applied before and the remaining 46% after phase II, during the years until 2013.
With respect to the potential sources of funding, only the three main groups, government, donors, and industry, have been identified. It is important to note that industry actually is carrying a substantial share of the adaptation as part of its normal operation, which is mentioned but sometimes not quantified within the National Adaptation Strategy.