The World Bank signed a Grant Agreement with the Palestinian Authority for the Palestinian Reform and Development Plan multi-donor budget support Trust Fund. The Trust Fund is part of the overall donor effort to alleviate the Palestinian fiscal crisis and to support implementation of the Palestinian Reform and Development Plan, which was presented on December 17, 2007.
The Government of Norway and the UK Department of International Development contributed the currently available funds totaling $83.3 million. These funds will be disbursed to the Palestinian Authority by the end of April 2008. Additional contributions to the fund have been pledged and further disbursements are planned for later this year.
The World Bank’s ongoing portfolio in West Bank and Gaza consists of 12 projects aiming at improving living conditions for the Palestinian people, including water and sanitation, education, solid waste, municipal finance, provision of basic social services in addition to capacity building of the non-government organization [NGO] sector.
[Donors often channel contributions to developing countries through a trust fund mechanism administered by the World Bank serving as a trustee. The arrangement alleviates the administrative burden on the donor and insures that the disbursement of bilateral funds is carried out in accordance with proper accounting and procurement procedures.]
World Bank Press Release, April 14, 2008