The activities of the French Development Agency in the Palestinian Territories (July 2007)
AFD group has launched its interventions in the Autonomous Palestinian Territories (APT) since November 1998, almost 10 years ago.
The opening of the AFD office in Jerusalem in August 1999 and its first interventions in the Territories were part of the structuring process brought about within the framework of the Oslo Agreements. Events related to the second Intifada and the political crisis, generated by the rise to power of the Hamas government beginning 2006, have made it difficult to continue with project implementation (problems related mainly to accessibility to project sites), and have simultaneously led to a severe degradation in the socio-economic conditions of the Palestinian population.
Within this context, AFD assistance has been re-channelled to more decentralized local job creation projects, while continuing to finance large infrastructure projects central for a durable development. For their part, the Palestinian partners and institutions have shown a remarkable adaptability to meet their fixed objectives. Due to these collective efforts, the activities continued and new projects were initiated to improve the living conditions of the communities in a durable manner. Thus more than 650,000 inhabitants, i.e. 20% of the population, have benefited from these interventions.
Thus AFD tries to maintain a balance between the continuation of large infrastructure projects in spite of the inherent risks, and the interventions that have strong impact in terms of job creation and support to the local private sector, and which are important given the existing economic and social situation in the APT.
It has been a constant concern to maintain a significant volume of financing for the Gaza Strip, which has been severely affected by the unfavourable political developments in recent years.
In the implementation of AFD funded projects, particular attention is brought to the NGO association comprising actors in decentralized cooperation, who are particularly active in Palestine. Partnerships established with NGOs have included both national, such as the Welfare Association and international ones (MDM France, Green Cross France). Just to name a few, being local communities, partnerships have been established with the urban community of Lyon (Grand Lyon), and the city of Dunkerque.
In addition and in 2006, AFD contributed financially to the temporary mechanism TIM, set up by the European Commission, with the participation of certain Member Sates, to compensate for the halting of Israeli reimbursements and to contribute to aid allocation and to pay civil servants.
Summary table of AFD interventions
Since its establishment in the Palestinian Territories, AFD has financed a total of 123, 79 M€ in the form of grants.
| In million Euros | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | TOTAL |
|
|
|
|
|
|
|
|
|
|
| au 30.05.2007 | |
| Engagements (excluding FFEM) | 7,77 | 12,03 | 8,00 | 15,50 | 11,50 | 14,00 | 12,00 | 14,74 | 17,65 | 10,60 | 123,79 |
| Payments (excluding FFEM) | 0,00 | 0,60 | 3,15 | 4,11 | 6,76 | 10,80 | 9,23 | 8,13 | 24,80 | 6,14 | 73,72 |
AFD activities in the Palestinian Territories are implemented in response to two main aims: i) to prepare for the end of the conflict through institutional empowerment and setting in place conditions for sustainable development, ii)to preserve social cohesion
In order to meet those aims, three sectors have been identified: i) water and sanitation, ii) basic infrastructure, and iii) health
A - Large infrastructures (water and sanitation)
Among the first projects financed by the AFD is the project which includes the rural electrification of 25 villages around Jenin and Qalqylia (11.5 M€) and the project of construction and rehabilitation of 15 schools (11 new ones) in West Bank and Gaza Strip (5.5 M€), granted in October 1999 and November 2001 respectively. Both projects are due to be completed in 2007.
Most of the commitments are concentrated in the water and sanitation sector, and mainly for large infrastructures operated at the national level.
These projects aim to improve services in the poorly supplied areas, to reduce leakages in existing networks in an attempt to economize on rare resources, to enhance the water management capacities of the Palestinian Authority and PWA, and to support the institutional reform in the water sector.
- A first project aimed at strengthening drinking water networks (7.7 M€ end 1998, completed in 2003) was implemented in both Gaza Strip and the West Bank, in Bethlehem, Ramallah and Qaliqilya.
- A second similar project (10 M€ in February 2001) was implemented in Gaza Strip and 3 localities on the borders of Jerusalem in the West Bank. The project included, in addition to the component of strengthening drinking water networks, a component of support in the institutional reform of the sector (WBWD, West Bank Water Department, reform: creation of the National Water Utility, NWU).
- A third financing (10.5 M€) was granted in October 2003, to improve water supply in the villages of Hebron Governorate.
- A fourth project (10.6 M€) has been committed in May 2007, along the line of the previous projects.
Activities in the sanitation sector have broadened due to the importance of protecting the environment and water resources from the risk of pollution in certain areas, in particular in Gaza Strip. A financing agreement has been signed beginning 2006 for 12 M€, as a contribution to the construction of the new wastewater treatment in northern Gaza Strip
In total, 42% of AFD’s engagements in the Palestinian territories are in the water and sanitation sector. They are in response to the priorities set by the National Water Sector Plan (2000), which has defined short and middle term principal objectives: a) the preservation and optimization of water resources, b) the improvement in the delivery of drinking water to communities, c) the reduction in dependency on Israeli supply.
B - Urban or community infrastructures, within the framework of local development and job creation
Given that the central government has a limited ability of manoeuvring and that the restrictions imposed on mobility have brought about a fragmentation of the economy, special attention has been given to local development, which includes the financing of infrastructure projects operated by local communities and support to community initiatives. These interventions include:
- Two projects for community development in the West Bank (7 M€ in 2000, completed, and 3.5 M€ in September 2003), operated by PECDAR (Palestinian Economic Council for Development and Reconstruction), the government’s executing agency, which finances the construction of small local infrastructure projects (internal roads, classrooms, small water networks etc…).
- One project for the development of the quarters of Gaza city, completed in 2006 (6.5 M€), which has improved the status of sanitation networks and solid waste in the non-serviced zones.
- One project (5 M€) in Gaza Strip operated by several NGOs, falls within the framework of financing micro projects that hire local manpower. A second similar project (6 M€) is being prepared for the West bank and Gaza and is due to be launched in 2007
- A program of support to local development (12 M€), which aims to facilitate financing of municipal infrastructures through the Fund for Municipal Development, will be initiated in 2007.The support offered to these municipalities through these projects will assist the latter in maintaining minimum levels of services, in spite of the serious financial crisis experienced since 2006.
This type of intervention has proven feasible in the light of the imposed movement and accessibility restrictions. These operations mainly make use of local enterprises to complete the works, and accordingly create jobs and provide immediate revenues. These are particularly important given the actual collapse of the Palestinian economy and the threat of a human crisis. These financing operations equally support the planning and rationalization efforts for interventions of the Palestinian Government.
C - Health sector
For the AFD, this is a new sector of intervention, which will complement in the social context its previous activities.
In the field of mental health, a financing agreement for a first project (2.7 M€) has been signed with the UNDP and the Palestinian Authority. Indeed, the Palestinian Health Minister has prioritized this sector given worrying indicators (aggravated by the political situation) and the absence of suitable facilities for the sick. This project aims to improve community care services in mental health in Jenin and Nablus, as well as in Hebron. Moreover, a wider perspective is envisaged for future AFD interventions in the health sector, which will directly impact the livelihood of the Palestinian population.
D - Support to the Palestinian Private Sector
Given the difficulties encountered by the Palestinian Authority to meet public expenses within the existing political context, support to the private sector, itself constrained by movement restrictions and inaccessibility, has been one of the priorities of the donor community.
As previously emphasized, infrastructure projects financed by AFD, target the creation of local job opportunities within the context of an increasingly fragmented Palestinian economy. In addition, AFD is considering support to the productive private sector along two directions, support to Palestinian export of olive oil and related food products, mainly to Europe and setting standards for the pharmaceutical Palestinian industry to make it eligible to participate in international calls for the supply of medicine in the region. The latter initiative falls in line with the objectives adopted by the health sector.