JERUSALEM, December 8, 2011 (WAFA) - The European Union supports the seventh payment under the Palestinian Authority's 'Private Sector Reconstruction in Gaza' programme, Thursday said an EU press release.

It said that EU contributed over €3.5 million (US$4.7 million), out of a total package of € 22.0 million, to the seventh payment under the Palestinian Authority's 'Private Sector Reconstruction in Gaza' (PSRG) programme.

The programme is the first large-scale initiative in support of the private sector in the Gaza Strip. This contribution is being channeled through PEGASE [1], the European Union's mechanism for support to the Palestinians.

The release said PA established the PSRG programme to provide financial support to private sector businesses that were destroyed or damaged by Israel's 'Operation Cast Lead'. 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 release said the seventh PSRG disbursement amounts to more than €3.5 million (US$4.7 million) and will benefit 308 claims by Gaza businesses, which will receive first, second or third installments of their total PSRG entitlements. It follows six earlier payments under PSRG that took place in July 2010, September 2010, January 2011, June 2011, August 2011, and September 2011, which benefited almost 660 eligible claims and amounted to €15.0 million. Further payments are expected to take place under the PSRG programme in the near future.

F.R.