Muhammad Yunus waves to well-wishers at his home in Dhaka, Bangladesh, Oct.13, 2006

The 2006 Nobel Peace Prize winner, Bangladeshi economist Muhammad Yunus, says he will donate his share of the $1.3 million prize money to good causes.

Yunus told reporters in Dhaka Friday he will use the money for a project to set up an eye hospital, and another to produce healthy low-cost food for the poor.

The Norwegian Nobel Committee announced the Peace Prize Friday in Oslo. Yunus and his Grameen Bank jointly won the prize for their efforts to create economic and social opportunities for poor people.

The committee said Yunus has developed microcredit into an important instrument in the struggle against poverty across cultures and civilizations, particularly in helping poor women to advance their lives.

The United Nations, development groups and countries in all continents have hailed the new laureate for his work in helping the poor escape poverty.

Some information for this report was provided by AFP and AP.