JERUSALEM, August 11, 2011 (WAFA) - The Japanese government has contributed over €1.1 million ($1.6 million), out of a total package of €6.2 million, to the fifth payment under the Palestinian Authority's Private Sector Reconstruction in Gaza (PSRG) program, according to a statement issued Thursday by the office of the European Union representative in Jerusalem.
The Japanese contribution is being channeled through PEGASE, the European Union's mechanism for support to the Palestinians.
The Palestinian Authority (PA) established the PSRG program, the first large-scale initiative in support of the private sector in the Gaza Strip, in the aftermath of Israel's 2008 military onslaught, Operation Cast Lead, to provide financial support to private sector businesses that were destroyed or damaged during that operation.
It targets businesses that need to restore damaged assets necessary for their activities - funded items include 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 European Union committed €22 million to PSRG at the end of 2009. In March 2011, the Japanese government committed an additional €6.2 million to the program.
The fifth PSRG disbursement, which will be covered entirely with Japanese funds, amounts to over €1.1 million and will benefit 21 claims by Gaza businesses that will receive second and third installments of their total PSRG entitlements.
It follows four earlier payments under PSRG that took place in July 2010, September 2010, January 2011 and June 2011, which benefited almost 660 eligible claims and amounted to €12.2 million ($16.1 million). Further payments are expected to take place under the PSRG program in 2011.
Japan’s assistance to the PA is extended in a kind of budget support or based on the specific development projects. Its assistance exceeds $1.21 billion in total since 1993, including around $100 million extended in Japan’s fiscal year 2010.
M.A.
