JERUSALEM, January 13, 2012 (WAFA) - The European Union contributed Friday €1.1 million ($1.4 million), out of a total package of €22 million, to the eighth payment under the Palestinian Authority's 'Private Sector Reconstruction in Gaza' (PSRG) program, according to an EU press release.

This contribution will be channeled through PEGASE, the European Union's mechanism for support to the Palestinians.

PSRG is the first large-scale initiative in support of the private sector in the Gaza Strip established to provide financial support to Gaza businesses that were destroyed or damaged by Israel's 2008-2009 'Operation Cast Lead.'

It targets businesses of all sizes in almost all sectors of activity, which need to restore destroyed or damaged assets necessary for their activities. The ultimate objective is to revitalize the economic activity in Gaza and provide for sustainable livelihoods for its people.

The latest payment will benefit 18 claims by Gaza businesses, which will receive the second and/or third installments of their total PSRG entitlements.

The European Union committed €22 million to PSRG at the end of 2009. In March 2011, the Japanese government committed an additional $6.58 million to the program.

M.S.