World Bank gives $15 mln to Palestinian Authority
Reuters, 12.02.03, 6:36 PM ET
WASHINGTON (Reuters) - The World Bank is giving the Palestinian Authority's finance ministry an emergency $15 million grant to improve battered education, health and social services in the West Bank and Gaza.
"The grant will finance goods and operating expenditures such as water, electricity, rent, which are essential to deliver education, health and social welfare programs, as well as items to keep key economic management ministries functioning," the bank said in a statement Tuesday.
The grant follows a $25 million transfer made at the end of last year for the same emergency services project in the West Bank and Gaza.
"After three years of 'intifada' all Palestinian economic indicators show steep decline," the bank said.
Gross domestic product has shrunk by more than 30 percent since before the Palestinian uprising and although there have been signs the economy is stabilizing, it is a very low level, the bank said.
The Palestinian Authority's fiscal position is "precarious," the bank said, with a budget gap of about $25 million a month, partly because budget support from donors was lower than expected.
"Donor support for the budget has dwindled rapidly in recent months, partly because support from Arab League states has fallen short of pledges, and partly because support from the European Commission -- while committed -- has been disbursed at a slower pace than anticipated," the bank said.
Copyright 2003, Reuters News Service
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