The World Bank and the UK Department of International Development (DFID) jointly gave the money to Ethiopia's Protection of Basic Services (PBS) programme. Last year, they gave $573 million.

"After reviewing the results of PBS implementation since 2006, both the government and development partners are of the view that the programme has been successful and will be crucial in supporting Ethiopia's plan towards poverty alleviation," said Paul Ackroyd, head of DFID in Ethiopia.

Keniche Ohashi, the World Bank head said the PBS was the largest single development assistance in Ethiopia and that it would help the poor country achieve universal goals to halve poverty by 2015.

Under the PBS programme, an extra three million children and 65,000 teachers were now in school since 2006, Ackroyd said.

A total of 24,000 insecticide-treated bed nets have been distributed so far in 2008 compared with 2,700 in 2006 and as a result, new malaria cases have dramatically dropped to 370,315 in 2007 from 780,019 in 2006, he said.

Donors had also raised an extra $200 million out of the $420 million that the government says it requires for humanitarian needs. Efforts were also underway to raise a further $150 million, Ackroyd added.

The fund will distributed to the U.N. World Food Programme and other agencies and will be used to purchase food, fertilizers and for other humanitarian purposes, he said.

World Bank's Ohashi said his organisation was considering helping Ethiopia with additional resources to mitigate against the external shocks of rising oil prices.