The Islamic Development Bank (IDB) and Jarrar Al Qudwa, IDB Governor for Palestine, announced key outcomes from three days of meetings held with the beneficiaries in Palestine from the Al Aqsa Fund Projects. The meetings are held bi-annually to review progress of the projects currently being implemented, consult with the beneficiaries on new priorities and needs, address issues relating to implementation and agree on new project directions for the year ahead.
A primary outcome from the sessions included the agreement from the Al Aqsa Fund and the Palestinian National Authority (“PNA”) to cooperate on the Medium Term Development Plan that was recently produced by the Ministry of Planning and presented to the session by Ghassan Khatib, Acting Palestinian Minister of Planning on the first day of the meetings. IDB called on all Arab Donors to support the Medium Term Development Plan, which was tabled in Oslo at the Ad Hoc Liaison Committee of the Donors on December 8, 2004.
“The Al Aqsa Fund has taken a differentiated approach to Palestine, and has funded based on needs on the ground. We appreciate the support of the Arab Donors and the Islamic Development Bank (IDB) very much and we want them to know that their funds have truly supported the Palestinian people in such a positive way. However, the needs have changed on the ground and we need to focus donor activity on sustainable development for Palestine in the Medium Term. Donor assistance must shift to job creation, recovery and social economic development from relief and emergency aid. In tandem with this, donors can now take a more active role in building institutional capacity and accelerating reform. We call on the Arab Donors to support our Medium Development Term Plan,” said Khatib.
“Palestine is grateful to the Arab Summit Conference for having created such a mechanism to support Palestine through the IDB administered Al Aqsa Fund which is a proven and effective assistance avenue. It is now clear, the needs remain significant and we are encouraged by the continuous involvement and support on the ground in Palestine. The sessions with the beneficiaries have given us clear insights into what the Al Aqsa Fund is doing well and areas of better performance for the future. I would urge all Arab Donors to continue to support the Al Aqsa Fund to turn despair into hope for the people of Palestine,” said Jarrar Al Qudwa, IDB Governor in Palestine.
Key outcomes of the meetings included the following:
• Ensuring conformity of Projects submitted to the Islamic Development Bank with the Medium Term Palestinian Development that was presented by the Minister of Planning of Palestine
• Review of status of funds allocated to frozen projects with the intention to create solutions for such funds; including the re-allocation of these funds towards implementing new vital projects
• The requirement by all beneficiaries or implementing agencies to submit an Impact Assessment Report to ensure compliance of implemented projects with the objectives of the Fund
• The allocation of more attention to the Human Resource Development aspects of certain sectors in parallel to that sector infrastructure development
• The importance of convening the consultative meetings on a periodical continuing basis with small gaps between meetings not exceeding 6 months
• Priority was given to Jerusalem Projects in the fields of Health, Housing, Education, Old City Renovation, and Private Sector Support.
“Our meetings have been very successful. It has been good to have this important feedback and sharing of new priorities and goals for Palestine at the same time as the Al Aqsa Fund is in a process of review of its funding strategy to help build a more sustainable economy for Palestine. Our strategy has been to provide funding based on needs and priorities and these have now been streamlined in the newly issued plan. We have heard first hand from the beneficiaries that the responsive and flexible approach of Al Aqsa has been critical. We are pleased with the positive feedback and to know that the Donors’ funds have been very effective despite the ongoing hardship on the ground. However, the needs are significant, to ensure sustainable development, as outlined in the Medium Term Development Plan,” said El Mansour Feten, Deputy Director, Al Aqsa Fund.
The Medium Term Development Plan lays out the funding requirements for Palestine for 2005 – 2007 with a total funding requirement of US$4.5 billion for sectors which include infrastructure development which includes health, education, transportation, energy, waste water and solid waste; industrial zones, Gaza seaport, airports, border crossings, desalination plants; strengthening governance in institutions, growth of the private sector, budgetary support, prioritizing donor interventions. Disengagement scenarios from Gaza and the impact of the Separation Wall were also presented. The Medium Term Development Plan also takes into account the revitalization of East Jerusalem, which included tourism, health and other sectors.
