UK Department for International Development - November 30, 2009 - Back to Resources Page

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PEGASE provides direct financial support for the Palestinian Reform and
Development Plan (PRDP) and is helping to sustain the Palestinian Authority's (PA)
efforts in the four PRDP key sectors of governance, social development, economic
and private sector development and public infrastructure.

The PRDP, presented by the Palestinian Authority for a three-year term (2008-2010),
received an unprecedented level of external support, although the funds pledged for
direct financial support are not sufficient to cover the PA's financial gap foreseen for
2008-2010.

Recent developments highlight the continued importance of the contribution of
PEGASE direct financial support: payments to vulnerable Palestinian families, civil
servants and pensioners, and the provision of fuel to the Gaza power plant for the
production of electricity, and support to the private sector through the reimbursement
of arrears due by the PA.

The funds provided under PEGASE from the EC budget for recurrent expenditures
(EUR 216 million) have been complemented with funds from EU Member States
(EUR 106 million to PEGASE Direct Financial Support). Further contributions are
expected for 2009, for all components of PEGASE direct financial support. Contacts
for additional support from other potential donors (also non-EU) are ongoing.

Other donors are also providing support for direct financial assistance through other
channels, including directly to the PA budget or via the World Bank Trust Fund. So
far these contributions amount to over USD 425 million (EUR 319 million).
Important efforts have been made by Commissioner Ferrero-Waldner to encourage
other donors to deliver on their Paris pledges and to reallocate funds towards direct
financial support, the highest priority of the PA.

To download the full report please click below:

Attachment	Size
af_aap-spe_2009_pse.pdf	109.73 KB

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UK Department for International Development - November 30, 2009 - Back to Resources Page