The funds will go for job creation in the poorer Palestinian areas through small infrastructure projects that would give employment to needy Palestinians.

Jarbawi stressed the importance of the agreement in developing the economy by providing jobs for the unemployed. He said the program, which is carried out through the United Nations Development Program (UNDP) in the West Bank and the Gaza Strip, has been going on for the 10th year.

Qawasmi described Palestinian-German relations as strong and unique, praising the importance of German support for the Municipal Development and Lending Fund, which is considered an effective tool to develop the Palestinian local government system.

Engelhardt said he was happy to sign the agreement, which reflects a clear example of the positive relationship between the donors and the PNA.

He stressed the importance of the labor agreement, pointing out that German contribution to this program started since 2002.

The agreement was signed following talks that took place between the Palestinian Authority and Germany in Berlin in April, which resulted in a German commitment to provide 42.4 million euros to support the various developmental sectors, most notably the local government and the water and sanitation sector.

M.G. /M.S.