As Israel and the Palestinians prepared to sign the agreement establishing self-rule in the Gaza Strip and Jericho, the World Bank this week announced a program to send $1.2 billion in emergency economic assistance for the new autonomous region.
The money, to be distributed over a three-year period expected to begin soon, is part of $2.1 billion pledged over a five-year period by international donors at a State Department conference last October.
The conference’s goal — supported by both the United States and Israel — was to improve conditions for Palestinians in the territories in such areas as transportation, water supply, power and telecommunications.
“If the peace process has any hope of success, the Palestinians need to see improvements in their living conditions very quickly,” Caio Koch-Weser, the World Bank’s vice president for the Middle East and North Africa region, said in a statement.
“The international community is betting that this program can jump-start the Palestinian economy over the next three years. We are optimistic because the Palestinians are enterprising and well-trained,” Koch-Weser said.
On Tuesday, the World Bank released a 49 page report called “Emergency Assistance Program for the Occupied Territories,” outlining the plan. The report was prepared by World Bank staffers and Palestinian economists. Other donor countries, including Israel, also participated in the drafting.
The funds will be distributed initially through a variety of groups, including a new Palestinian organization called the Palestinian Economic Council for Development and Reconstruction, non-governmental and United Nations organizations and municipalities.
The largest segment of the $1.2 billion, $600 million, will finance public investments in transportation, water, solid waste and other areas.
Another $300 million will support private-sector investments in areas including telecommunications, housing and agriculture.
The remainder of the money will go toward start-up costs and technical assistance.
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