Most of the funds will go towards housing and community projects

The money which is destined to be used to rebuild homes, schools and community centres and revitalise the agriculture sector, is due to be released next month.

At the signing ceremony in St. George's, U.S. ambassador to the Eastern Caribbean, Mary Kramer,

said the funds were meant to put people back to work.

"It includes housing repairs, new construction, building and repairing water and sanitation systems, technical assistance to small and mid-sized business and grants for agri-business, fisheries and crafts, to bring these income producing enterprises back to their rightful place in (the) economy."

The United States agency for international development, USAID, is to administer the funds.

USAID mission director based in Jamaica, Karen Turner, says the unfortunate losses caused during the hurricane season will present an opportunity to take action to prevent such catastrophic losses experienced after hurricane Ivan.

"We have an opportunity here. It's an unfortunate event for Grenada but I think we have an opportunity here to help the rest of the region, to learn from what is going to be done here in Grenada."

Prime Minister Mitchell says the funds will help Grenada as it embarks on a long and demanding journey.

"It is with profound appreciation and gratitude that we accept this support being offered here... through the agency for international development. The US$40.3 million will definitely help us in a variety of ways as we being this very long and demanding journey towards restoration and redevelopment."

Most of the funds will go towards housing and community revitalisation projects as well as the restoration of small scale infrastructure including water and sanitation systems and roads.