WASHINGTON, March 7, 2012 (WAFA) -- The World Bank Tuesday approved a $40 million grant to the Palestinian Authority (PA) to support progress in key reforms, according to a press release.

It also approved an $8 million grant for the Gaza Electricity Network Rehabilitation Project to assist the Palestinian Energy and Natural Resource Authority to rehabilitate and expand the electricity networks in Gaza, and an additional $2 million to the Municipal Development Program to support municipalities in improving their management and governance.

“The $40 million Development Policy Grant (DPG) in budget support is part of the World Bank’s ongoing engagement with the PA to consolidate and build on a good track-record of reform achievements,” said the release.

“There has been a real commitment to reform which has indeed delivered some improvements in the daily lives of citizens,” said Mariam Sherman, World Bank Country Director for the West Bank and Gaza.

“But reform alone will not drive the growth that is needed. For that to happen the private sector has to be unleashed and measures must be taken to build confidence and remove restrictions which stand in the way of a free flow of commercial activity,” she said.

“A stable financial environment will contribute to sustainable economic growth,” said Nancy Benjamin, World Bank Senior Country Economist.

“The PA has made significant progress towards strengthening its fiscal position and improving its public financial management. The new grant will specifically support those areas as well as government transparency and accountability.”

Three previous policy grants totaled $120 million and established a strong foundation of reforms, said the World Bank press release, adding that the new grant will focuses on improving transparency and accountability and ensuring efficient use of public finances.

M.S.