RAMALLAH, September 20, 2010 (WAFA)- The European Union has contributed over €3.58 million ($4.68 million), out of a total package of €22 million, to the second disbursement under the Palestinian Authority's 'Private Sector Reconstruction in Gaza' (PSRG) program. This program is the first large-scale initiative in support of the private sector in the Gaza Strip.
The Palestinian Authority (PA) established the PSRG program in the aftermath of Israel's 'Operation Cast Lead' to provide financial support to private sector enterprises whose businesses were destroyed or damaged during that operation. It targets businesses that need to restore any damaged assets necessary for production, funded items including machinery, office furniture and equipment, as well as building and business premise material. The ultimate objective is to revitalize the economic activity in Gaza and provide for sustainable livelihoods for its people.
The Prime Minister, Salam Fayyad, has said about the program that: 'This payment comes to support an additional 240 companies in the framework of the 'Private Sector Reconstruction in Gaza' program and to reaffirm the Government's commitment to the revitalization of the economic activity in Gaza. For this goal to be realized, a private sector capable of assuming a leading role in economic development must be an active participant in the overall economic revitalization plan. To this end, the 'Private Sector Reconstruction in Gaza' program will significantly contribute to putting the private sector back on track. We hope many initiatives and support programs would follow to reinforce and sustain the momentum of the economic revitalization process and strengthen the pivotal role of the private sector. We seize this opportunity to reiterate our call for a full lifting of the Israeli siege imposed on the Gaza Strip, entailing the reopening of all crossings and the unconditional free movement of people and goods to and from the Gaza Strip according to the 2005 Agreement on Movement and Access (AMA), which includes the Safe Passage linking the West Bank and Gaza.'
The European Union Representative, Mr. Christian Berger said about the program: 'The European Union fully recognizes the central role that the private sector needs to play in the economic revival of the Gaza Strip. By supporting the PSRG program, we want to help Gaza enterprises to resume their activities as a first step to building a sustainable private sector-led economy that creates the jobs required by Gaza's expanding population, diminishes the current high poverty levels, and helps reducing aid dependency.'
The EU committed €22 million to the PSRG program in 2009, which are to be channeled through the EU financing mechanism PEGASE. Today's second disbursement will cover around 240 claims by Gaza enterprises and follows a first one undertaken in July that covered some other 200 claims eligible under the program. Further payments are expected in the future.
PEGASE channels European Union assistance to help build a Palestinian State, in accordance with the priorities and needs identified by the PA in its three-year reform and development program (PRDP). Launched by the European Commission on 1 February 2008, it is the main financing mechanism of the European Union. As well as helping the Palestinian Authority to meet a substantial proportion of its running costs, European funds support major reform and development programs in key ministries, to help prepare the PA for statehood in line with the plan proposed in August 2009 by the Palestinian National Authority Cabinet headed by Prime Minister Salam Fayyad.
Since 2007, the EU has provided total assistance to the Palestinian people, including civil society organizations and refugees, which averages at more than €500 million annually.
