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Palestine: AFD, German Financial Cooperation and the World Bank support municipalities in their emergency response to Covid-19 crisis

eloppement, la KfW et la Banque Mondiale apportent un soutien supplémentaire aux municipalités palestiniennes dans leur réponse à la crise économique liée à la pandémie de Covid-19

In the presence of His Excellency the Prime Minister, Mohammad Shtayyeh, the Consul General of France in Jerusalem, René Troccaz, the AFD Country Director, Martin Parent, the Director of German Development Bank (KfW) Office Ramallah, David Kunze, and the Country Director of the World Bank, Kanthan Shankar, signed financing and projects agreements with the Palestinian Minister of Finance, Shukri Bishara, and the Minister of Local Government, M. Majdi Al Saleh, on 1 April 2021, to support the Palestinian response against the Covid-19 pandemic at the local level. The ceremony was attended by the German Deputy Representative, Michael Herold.

The project aims at bridging the financial gap of local government units and help them keep essential services running, and provide jobs to households whose income has been adversely affected by the Covid-19 crisis. It is cofinanced by AFD, the German Development Bank (KfW), and the World Bank, for an overall amount of 44 million euros. France provides 10.5 million euros, Germany 13 million Euros and the World Bank 25 million US Dollars.

The main objective of this additional financing, implemented by the Municipal Development and Lending Fund (MDLF), is to support Palestinian municipalities to maintain essential services and improve their resilience against the economic slowdown induced by the Covid pandemic:

  • 158 municipalities, serving 75% of the population of the West Bank and Gaza, will benefit from the program through the provision of emergency public goods, financing of recurrent expenditures, and labor-intensive public works that will provide employment opportunities in various sectors, from waste management services to road maintenance. 9 500 short-term jobs will be created.
  • Particular focus will be put on providing equal opportunities for men and women, by having women participate actively in the planning process under the Strategic Development and Investment Planning, and by providing dedicated job opportunities to women within the labor-intensive sub-projects.

The Consul General of France in Jerusalem, M. René Troccaz, underlined that “this initiative shows the ambition of France to work alongside European partners and multilateral institutions to support the Palestinian people in the fight against the pandemic and economic crisis”. He also added: “Cooperation is key to bring shared solutions benefiting directly the population impacted by the crisis” and underlined the key role of local government units in this regard.

The Deputy Head of Mission of the German Representative Office, Michael Herold, stressed that “this additional contribution is part of the German government’s efforts to support the Palestinian people in its fight against the Covid-19 pandemic and its negative effects on the economy.” He further said: “Germany has been a long-standing supporter especially for governance at the local level,.We are delighted to have our Palestinian partners as well as key donor such as France and the World Bank on our side in this endeavor.”