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7R CR (3) 12 - 022 DATA COLLECTION SURVEY ON ASSISTANCE APPROACH IN PALESTINE FINAL REPORT SEPTEMBER 2012 JAPAN INTERNATIONAL COOPERATION AGENCY ORIENTAL CONSULTANTS CO., LTD. KRI INTERNATIONAL CORP. PALESTINE

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7 RCR (3)12-022

DATA COLLECTION SURVEY ON

ASSISTANCE APPROACH IN

PALESTINE

FINAL REPORT

SEPTEMBER 2012

JAPAN INTERNATIONAL COOPERATION AGENCY

ORIENTAL CONSULTANTS CO., LTD. KRI INTERNATIONAL CORP.

PALESTINE

DATA COLLECTION SURVEY ON

ASSISTANCE APPROACH IN

PALESTINE

FINAL REPORT

SEPTEMBER 2012

JAPAN INTERNATIONAL COOPERATION AGENCY

ORIENTAL CONSULTANTS CO., LTD. KRI INTERNATIONAL CORP.

PALESTINE

Preface

Toward the Middle East Peace, sustainable economic and social development of Palestinian

and collaboration with neighboring countries, as well as political negotiation, are indispensable.

Japan proposed “Corridor for Peace and Prosperity” initiative in 2006, and through conducting

continuous and multilayered assistance focusing on private sector promotion, agricultural sector

development and improvement of access to the region. Moreover, in cooperation among

Palestine, Israel, Jordan and Japan, the implementation mechanism called the Four Party

Consultation Unit was established and creates the opportunity for dialogue and cooperation

among the concerned parties by sharing the process for realizing “Corridor for Peace and

Prosperity”. This approach can be said as uniqueness of Japanese assistance.

Under “Corridor for Peace and Prosperity” initiative, Japan started construction of an

agro-industrial park and conducted the technical and financial assistance for promotion of

agriculture and tourism in Jericho, an ancient city on the West Bank. Jericho is located at the

focal point with neighboring counties and is expected to be a showcase of success story for

regional cooperation and trust building by smoothing the movement of people, products and

information across the region.

Also, the Japanese assisting projects such as the field of local governance and finance,

maternal health, and water supply and sewage system has become good practices for improving

the quality of life of the ordinary people of Palestine. Those fields, crucial basis for the

establishing a sustainable state of Palestine, is regarded as a priority area of cooperation.

This survey has been conducted to review JICA’s assistance and to summarize the proposals

for future assistance.

September, 2012

Akihiko Koenuma

Director General

Middle East and Europe Department

Japan International Cooperation Agency

Data�Collection�Survey�onAssistance�Approach�in�Palestine

Final�Report�– Executive�Summary

September�2012

Japan�International�Cooperation�Agency�(JICA)Oriental�Consultants�Co.,�Ltd.�&�KRI�International�Corp.

Table�of�Contents

1.�Outline�of�the�Study1.1�Outline�of�the�Study1.2 Flowchart�of�the�JICA�Study

2.�Study�Results2.1�Implemented�and�Scheduled�Projects�by�JICA2.2�Outcomes�of�JICA’s�Assistance2.3�Priority�Issues�in�Each�Sector2.4�Cross�Cutting�Issues�for�State�building�and�Development�in�Palestine

3.�Assistance�Approach3.1�Japan’s�Aid�Policy�and�PA’s�Policy3.2�JICA’s�Assistance�Strategy�and�Programmes�(Proposed)3.3�Programme�1:�Industrial�Development�toward�the�Corridor�for�Peace�and�

Prosperity�(Proposed)3.4�Programme�2:�Strengthening�Capacity�for�State�Building�(Proposed)

Data Collection Survey on Assistance Approach in Palestine Final Report - Executive Summary

ES - 1

1.1�Outline�of�the�Study

� Objective�of�the�StudyThe�objective�of�the�study�is�to�collect�and�analyze�relevant�data/information�supporting�the�examination�process�of�the�assistance�approach�in�Palestine�through�the�following�activities.� To�review�and�evaluate�existing�JICA�assistance�by�sector�level�and�by�

project�level� To�examine�JICA’s�assistance�approach�and�issues�to�be�considered�

through�interviews�with�counterpart�government�officials,�and�private�sector�stakeholders,�as�well�as�field�surveys

� Study�Period: From�the�mid�March�2012�to�the�end�of�September�2012� Study�Area:�The�entire�area�of�Palestine,�which�consists�of�the West�

Bank�and�the�Gaza�Strip� Owner�of�the�Study:�JICA�(Middle�East�Division�2,�Middle�East�and�

Europe�Department,�JICA�HQ,�and�JICA�Palestine�Office)� Consultant:�The�consortium�composed�of�Oriental�Consultants�Co.,�Ltd.�

and�KRI�International�Corp.�(the�Study�Team)

1.2�Flowchart�of�the�JICA�Study

Data Collection Survey on Assistance Approach in Palestine Final Report - Executive Summary

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2.1�Implemented�and�Scheduled�Projects�by�JICA2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Public Finance

Water & Wastewater

Private Sector Dev. & Trade

Agriculture

Tourism

Education

Health

Local Governance

OthersJericho Regional MP This Study

Local Governance TA Phase 1 Local Governance Phase2

EVAP TAASAP TA

School Construction GA

MCH TA Phase 2MCH TA Phase 1

Tourism TA Phase 1 Tourism TA Phase 2

SME Dev. TA

Jericho Sanitation TA

Jericho Wastewater GA

Property Tax Training Property Tax TA

Photovoltaic Power GA

Olive TA 2Olive TA 1

Solid Waste Management TA

Water Resource F/S

PIEFZA TAJAIP F/S

Corridor for Peace and Prosperity

Rural infrastructure GA

2.2�Outcomes�of�JICA’s�Assistance� Outcomes�in�Project�and�Sector�Level� Generally,�each�project�achieved�its�project�purpose�and�accumulated�

success�and�positive�impacts� As�a�good�practice�in�the�health�sector,�JICA�supported�MCH�projects�that�

contributed�improving�MCH�conditions�in�Palestine�� Outcomes�of�Projects�proposed�by�the�Jericho�Regional�MP� Many�of�proposed�projects�have�been�implemented�by�JICA�and�the�

Government�of�Japan� Outcomes�of�Corridor�for�Peace�and�Prosperity�Initiative� Infrastructure�development�for�JAIP�phase�1�will�have�been�completed� Further�assistance�from�the�view�of�CPP�is�needed� Assistance�to�Gaza�Strip� Improvement�of�people’s�livelihood�through�small�scale�projects�using�the�

follow�up�scheme�in�collaboration�with�the��JICA�Alumni�Association� Assistance�for�Palestinian�Refugees� Support�Palestinian�refugees�in�OPT�and�neighboring�countries�in�

collaboration�with�UNRWA

Data Collection Survey on Assistance Approach in Palestine Final Report - Executive Summary

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JAIP:�Jericho�Agro�industrial�Park

JAIP and the photovoltaic power plant JAIP Seminar (July 2012)

Land reclamation at JAIP Access road to JAIP

Success�Stories�in�JICA’s�Assistance

Farmer’s association participated in an exhibition Watermelon cultivation in Jenin

Tourist Information Centre in Jericho Tourist Signboard

Data Collection Survey on Assistance Approach in Palestine Final Report - Executive Summary

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Success�Stories�in�JICA’s�Assistance

Constructed school facility and equipment MCH Handbook at Jalazon Refugees Camp

Commuter buses (Al Jiftlek – Jericho) Beekeeping in Gaza

2.3�Priority�Issues�in�Each�Sector�1� Public�Finance� Ensure�own�revenue�sources� Further�strengthening�of�the�Property�tax�system� Enhance�public�expenditure�management� Local�Governance� Accelerate�amalgamation�of�LGUs� Strengthen�LGU’s�capacity�on�public�service�provision� Education� Secure�education�budget� Upgrading�school�environments�in�primary�and�secondary�education� Improvement�of�education�quality� Promoting�TVET�and�entrepreneurs�� Health� Improvement�of�access�to�health�care�service� Preventive�health�for�non�communicable�diseases�(NCD)

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2.3�Priority�Issues�in�Each�Sector�2� Private�Sector�Development�&�Trade� Strengthen�competitiveness�of�private�sector� Promote�export�and�diversify�export�partners� Establish�robust�and�attractive�business�and�investment�environment� Generate�employment�opportunities�� Agriculture� Change�to�market�oriented�agriculture� Improvement�of�post�harvest��conditions� Management�and�development�of�alternatives�agricultural�resources� Collaboration�with�agro�industry�including�JAIP� Tourism� Tourism�Promotion�in�collaboration�with�neighboring�countries� Identify�tourism�potentials�in�Palestine�and�developing�tourism�products� Upgrade�tourism�infrastructure�� Institutional�and�capacity�building�in�public�and�private�sectors�for�tourism�promotion�� Water�&�Wastewater� Secure�budget,�new�technology�and�human�resources�for�water�resource�

development�� Construction�of�Wastewater�treatment�plants� Reuse�of�treated�wastewater�

2.4�Cross�Cutting�Issues�for�State�building�and�Development�in�Palestine� A�long�term�development�scenario�is�needed�considering�economic�integration�

and�cooperation�within�the�Middle�East�region� Strengthening�to�create�highly�competitive�state�toward�regional�economic�

integration�in�the�future� Connection�and�collaboration�with�neighboring�communities�as�well�as�with�

neighboring�countries� Utilize�Israeli�infrastructure�and�minimize�gaps�of�infrastructure�between�Palestine�

and�Israel� Mentality�change�of�the�government�and�people� Incentives�for�maximizing�the�vitality�of�the�private�sector� Industrial�and�human�resource�development�toward�the�global�market� Secure�access�to�natural�resources�in�the�Palestinian�territories�and�appropriate�

control�and�environmental�management� Decrease�costs�against�Israel�(e.g.�medical�referral�cost,�electricity,�wastewater�

treatment,�solid�waste)� Human�security�in�Area�C,�East�Jerusalem,�Gaza�Strip�and�for�Palestinian�refugees

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Goal Chart for Japan’s Assistance Policy to PalestinePAGoal

IndependentPalestinian State

Long-term Plan

National Spatial Plan Target year: 2025

e.g. Protection Plan

Three-year Plan

NDP 2011�2013

�Governance

�Social

�Economy

�Infrastructure

Ultimate goal: The peaceful coexistence and co-prosperity between the two states of Israelis and Palestinians

“Corridor for Peace and Prosperity” Initiative

Assistance for building of the future Palestinian state (Small and Medium Enterprise Support, Agriculture, Tourism, Local Governance, Public Financial

Management, Water Resource Development and Waste Water Treatment, and Maternal and Child Health)

Assistance to Gaza Strip

Assistance for improving financial conditions

Humanitarian Assistance (Food aid)

Cooperation with East Asian Countries for Assistance to the Palestinians

Assistance to the Palestinian refugee

Vitalizing private sector in the Palestinian territoriesJapan’s A

ssistance to the P

alestinians

Assistance by JICANext Three-year Plan

NDP 2014�2016

3.1�Japan’s�Aid�Policy�and�PA’s�Policy

Country Assistance Plan for OPT (Draft, May 2012)

Priority Area 1: Improvement of people’s livelihood incl. humanitarian aid- Water & Wastewater- Health Service- Education Service- Social Protection

Priority Area 3: Promote economic development- Industrial dev.- Agriculture dev.- Tourism dev.

Diplomatic Policy- Political

dialogues with both parties

- Confidencebuildingmeasuresbetween both parties

Priority Area 2: Governance and institution building- Public finance- Localgovernance

Long-term Assistance Vision (= Peaceful Coexistence & Co-prosperity)

State building and industrial development toward the peaceful coexistence and co-prosperity between the two states of Israelis and Palestinians

Mid-term Assistance Approach (2013-2016)To assist in establishing self-reliance of future Palestinian state and industrial development based on JICA’s experience and advantages, under the pessimistic political scenario and the Israeli occupation.

Programme 1: Industrial Development toward the Corridor

for Peace and Prosperity

Priority Area: Private sector development, Agriculture, Tourism

Related Area: Higher education, Transportation, Environment

Programme 2: Strengthening Capacity for

State Building

Priority Area: Local Governance, Public Finance

Related Area: Education, Health, Social Protection, Energy, Water & Wastewater, Solid waste

Assistance in the view of Human Security

For the Gaza Strip (with JICA Alumni), Palestinian Refugees (with UNRWA), People living in Area C and East Jerusalem

Cross-cutting ConsiderationsRegional development perspective beyond the borders, Confidence building, Increasing activity in Area C, Employment generation for youth, Gender mainstreaming, Regional environment, Increasing self revenue, Diversifying business partners, Cooperation with other aid schemes and private sector

To assist the Palestinians who live in insecure conditions from the view of human security

Cooperation with the International Community (East Asian Countries, Neighbouring Countries, and others) and Public Relations (Promote Japan’s efforts and ideas)

3.2�JICA’s�Assistance�Strategy�and�Programmes�(Draft)

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3.3�Programme�1:�Industrial�Development�toward�the�Corridor�for�Peace�and�Prosperity

2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6PA’s Dev. Plan

Private Sector Dev. & Trade

Agriculture

Tourism

Value-added Agriculture in JRRV (EVAP)

Tourism Dev. through PPP (Phase 2)

Micro and SME Development

CB for PIEFZA

NDP 2011�2013 NDP 2014�2016

IndustrialDevelopmentProgramme

Tourism DevelopmentProgramme

AgricultureDevelopmentProgramme

Japan’s ODA Rolling Plan for OPT: Priority Area 3: Promote Economic Development

on-going scheduledLegend:

�Scale-up strategy considering regional and global market is needed.�Collaboration with the private sector and other donors or financial institutions should be considered.�Support and foster entrepreneurs in Palestine

Programme Goal:��Strengthening�international�competitiveness�of�Palestinian�products�and�services�and�expanding�international�access

3.4�Programme�2:�Strengthening�Capacity�for�State�Building

2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6PA’s Dev. Plan

Water & Wastewater

Public Finance

Local Governance

Improvement of Property Tax System

NDP 2011�2013 NDP 2014�2016

Improvementof Water & Wastewater Programme

LocalGovernance ImprovementProgramme

Strengtheningof Public FinanceProgramme

Japan’s ODA Rolling Plan for OPT: Priority Area 1: Improvement of people’s livelihood incl. humanitarian aid

Japan’s ODA Rolling Plan for OPT: Priority Area 2: Governance and institution building

Jericho Wastewater Collection, Treatment & Reuse

CB for Jericho Sanitation

Local Governance (Phase 2)

Education

on-going scheduledLegend:

Health

Programme Goal:��Enhancing�self�sustained�capacity�of�PA�concerning�public�service�delivery

Data Collection Survey on Assistance Approach in Palestine Final Report - Executive Summary

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Data Collection Survey on Assistance Approach in Palestine Final Report

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Table of Contents

Preface

Executive Summary

Table of Contents

List of Tables

List of Figures

Abbreviations

Page

Chapter 1 Introduction..............................................................................................................................................1-1 1.1 Outline of the Data Collection Survey.......................................................................................................................1-1 1.2 Scope of Works and Methodology.............................................................................................................................1-3

1.2.1 Work Flow and Procedures ................................................................................................................................1-3 1.2.2 Methodology .......................................................................................................................................................1-4 1.2.3 Limitation of the Study .......................................................................................................................................1-6

Chapter 2 Overview of Present Situation of Palestine .........................................................................................2-1 2.1 Natural Geography of Palestine .................................................................................................................................2-1 2.2 Macro-economic and Social Trends ..........................................................................................................................2-3

2.2.1 Population............................................................................................................................................................2-3 2.2.2 National Economy ..............................................................................................................................................2-5

2.3 National Development Plans of Palestine Authority .............................................................................................. 2-11 2.3.1 National Development Plan 2011-2013 .......................................................................................................... 2-11 2.3.2 National Spatial Plan.........................................................................................................................................2-15

2.4 Development Assistance and Local Aid Coordination in Palestine.......................................................................2-17 2.4.1 Assistance Trend of Development Partners ....................................................................................................2-17 2.4.2 Local Development Framework......................................................................................................................2-23

Chapter 3 Present Condition and Development Issues in Palestine..................................................................3-1 3.1 Public Financial Management....................................................................................................................................3-1

3.1.1 Present Conditions...............................................................................................................................................3-1 3.1.2 Priority Issues ......................................................................................................................................................3-3

3.2 Local Governance .......................................................................................................................................................3-4 3.2.1 Present Conditions...............................................................................................................................................3-4 3.2.2 Priority Issues ......................................................................................................................................................3-9

3.3 Education .....................................................................................................................................................................3-9

Data Collection Survey on Assistance Approach in Palestine Final Report

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3.3.1 Present Conditions...............................................................................................................................................3-9 3.3.2 Priority Issues ....................................................................................................................................................3-20

3.4 Health .........................................................................................................................................................................3-20 3.4.1 Present Conditions.............................................................................................................................................3-20 3.4.2 Priority Issues ....................................................................................................................................................3-28

3.5 Social Protection........................................................................................................................................................3-29 3.5.1 Present Situation................................................................................................................................................3-29

3.6 Private Sector Development and Trade ...................................................................................................................3-33 3.6.1 Present Conditions.............................................................................................................................................3-33 3.6.2 Priority Issues ....................................................................................................................................................3-43

3.7 Agriculture .................................................................................................................................................................3-44 3.7.1 Present Conditions.............................................................................................................................................3-44 3.7.2 Priority Issues ....................................................................................................................................................3-50

3.8 Tourism ......................................................................................................................................................................3-51 3.8.1 Present Situation................................................................................................................................................3-51 3.8.2 Priority Issues ....................................................................................................................................................3-57

3.9 Transportation............................................................................................................................................................3-57 3.9.1 Present Conditions.............................................................................................................................................3-57

3.10 Energy ........................................................................................................................................................................3-63 3.10.1 Present Conditions.............................................................................................................................................3-63

3.11 Water and Wastewater...............................................................................................................................................3-64 3.11.1 Present Conditions.............................................................................................................................................3-64 3.11.2 Priority Issues ....................................................................................................................................................3-69

3.12 Cross Cutting Issues..................................................................................................................................................3-70 3.12.1 Environment ......................................................................................................................................................3-70 3.12.2 Israel Occupation and Restrictions...................................................................................................................3-71 3.12.3 Youth..................................................................................................................................................................3-76 3.12.4 Gender................................................................................................................................................................3-76

Chapter 4 JICA's Assistance to Palestine...............................................................................................................4-1 4.1 Japan's Assistance Policy and JICA's Assistance to Palestine..................................................................................4-1

4.1.1 Japan’s ODA since 1994.....................................................................................................................................4-1 4.1.2 Recent Assistance................................................................................................................................................4-1 4.1.3 The Corridor for Peace and Prosperity ..............................................................................................................4-7

4.2 Achievement and Impacts of JICA's Major Assistance since 2006 ........................................................................4-9 4.2.1 Jericho Master Plan...........................................................................................................................................4-10 4.2.2 Review of Projects Related to the Corridor for Peace and Prosperity Initiative...........................................4-12

4.3 Achievement and Impacts of Other JICA's Assistance ..........................................................................................4-14

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4.3.1 Assistance to the Gaza Strip .............................................................................................................................4-14 4.3.2 Assistance to Palestinian Refugees..................................................................................................................4-16

Chapter 5 Recommendations to Assistance Approach in Palestine..................................................................5-1 5.1 Assistance Approach...................................................................................................................................................5-1 5.2 Assistance Strategy and Programme for Palestinian State Building........................................................................5-2

Appendices

Appendix 1 List of JICA Projects since 2006

Appendix 2 Outlines of JICA’s Major Projects

Data Collection Survey on Assistance Approach in Palestine Final Report

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List of Tables

Table 1.2.1 Interviewees ................................................................................................................................................1-5 Table 2.1.1 Rain fall Quantity in 2010..........................................................................................................................2-3 Table 2.1.2 Temperatures in 2010 (°C).........................................................................................................................2-3 Table 2.2.1 Population, total (thousand) .......................................................................................................................2-4 Table 2.2.2 General Information about Palestinian Refugees, January 2012.............................................................2-5 Table 2.2.3 GDP (current million USD).......................................................................................................................2-6 Table 2.2.4 GDP per Capita (current USD)..................................................................................................................2-7 Table 2.3.1 Total External Financing Requirement, 2011-2013 ...............................................................................2-13 Table 2.3.2 Sector Allocation of Total Development Expenditure ...........................................................................2-14 Table 2.4.1 Development Partners’ ODA for Palestine by Donors, 1995-2010......................................................2-19 Table 2.4.2 Development Partners’ ODA for Palestine by Sector ............................................................................2-21 Table 3.2.1 Number of Local Government Units ........................................................................................................3-5 Table 3.2.2 List of Public Services According to the Law ..........................................................................................3-5 Table 3.2.3 Solid Waste Collection by Joint Service Councils 2011 ..........................................................................3-8 Table 3.3.1 Gross Enrolment Rate in Basic Education (%) ...................................................................................... 3-11 Table 3.3.2 Student Survival Rate for Grade 10 (%) .................................................................................................3-12 Table 3.3.3 Students Continuing from Basic Cycle to Secondary Cycle (%)..........................................................3-12 Table 3.3.4 Students in Jerusalem Supervised by the Palestinian Authority(%)...............................................3-14 Table 3.3.5 Number of Basic & Secondary Schools 2011-2012 ..............................................................................3-14 Table 3.3.6 Number of Basic & Secondary Classes and Students 2011-2012 ........................................................3-16 Table 3.3.7 TIMSS Score, 2007..................................................................................................................................3-16 Table 3.3.8 Number of Higher Education Institutions 2010-2011............................................................................3-19 Table 3.4.1 Distribution of PHC Facilities by Health Provider, 2011.......................................................................3-25 Table 3.4.2 Number of Visits to a Primary Health Care Facility, 2010 ....................................................................3-25 Table 3.4.3 Distribution of Hospitals by Provider, 2011............................................................................................3-25 Table 3.4.4 Density of Health Staffs per 10,000 Population, 2011...........................................................................3-26 Table 3.4.5 Distribution of Sources of Funding for the Total Expenditure on Health (%)......................................3-27 Table 3.5.1 Social Protection Indicators......................................................................................................................3-31 Table 3.5.2 Disability Distribution by Area and Sex (percentage), 2011 .................................................................3-32 Table 3.5.3 Types of Disability (percentage), 2011....................................................................................................3-32 Table 3.5.4 Reasons for Disability (percentage), 2011 ..............................................................................................3-33 Table 3.6.1 Export and Import, 2001-2010 ................................................................................................................3-35 Table 3.6.2 Total Value of Export by Sector, 2006-2010...........................................................................................3-37 Table 3.6.3 Number of Establishments in the Private Sector (2004, 2007) and Employee Size Group (2007)....3-38 Table 3.6.4 Unemployment by Gender, 2008-2010 ..................................................................................................3-40 Table 3.6.5 Outline of the ICT Sector .........................................................................................................................3-40

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Table 3.6.6 Doing Business Ranking 2012, MENA Countries.................................................................................3-42 Table 3.6.7 Outlook for Microfinance in Palestine (2011)........................................................................................3-43 Table 3.7.1 Area, Yield and Production of Agriculture (2007/2008)........................................................................3-46 Table 3.7.2 Agricultural Production, Areas, and Percentage of Change over, 2004-2008......................................3-47 Table 3.7.3 Livestock Production and Percentage of Change over, 2004-2008......................................................3-47 Table 3.8.1 Tourism Sector Indicators in Palestine by Region and Quarter, 2011...................................................3-51 Table 3.8.2 Arrivals of Non Resident Tourists/Visitors, Departures and Tourism Expenditure .............................3-53 Table 3.8.3 Purpose of Visit of Tourist, 2009 .............................................................................................................3-54 Table 3.8.4 Purpose of Travel of Domestic Tourist, 2010 .........................................................................................3-54 Table 3.8.5 The Number of Days in Palestine of Inbound Tourists, 2009 ...............................................................3-54 Table 3.8.6 Entry Method of Inbound Tourists (2005)..............................................................................................3-55 Table 3.8.7 Number of Hotels, Rooms, Beds, Guests and Nights (2010)................................................................3-56 Table 3.8.8 Facilities in Hotels, December 2011........................................................................................................3-56 Table 3.8.9 Changes of Hotel Indicators Compared with 1999................................................................................3-56 Table 3.9.1 Transport Lines from the Governorate of Ramallah and Al Bireh........................................................3-60 Table 3.9.2 Distribution of Passenger Crossing on the Allenby Bridge by Month, 2011 .......................................3-62 Table 3.10.1 Quantity of Electricity Purchases (MWh) in 2010...............................................................................3-64 Table 3.12.1 Internal Movement Obstacles in the West Bank, 2010-2012..............................................................3-74 Table 3.12.2 Construction Progress of Barrier, 2006-2010.......................................................................................3-76 Table 4.2.1 Japan’s Assistance Concerning the JAIP.................................................................................................4-13 Table 4.3.1 JICA Projects in Gaza using the Follow-up Scheme .............................................................................4-15 Table 4.3.2 JICA’s Assistance to Palestinian Refugees..............................................................................................4-17

Data Collection Survey on Assistance Approach in Palestine Final Report

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List of Figures

Figure 1.2.1 Flowchart of the Study..............................................................................................................................1-4 Figure 2.1.1 Palestinian Territory ..................................................................................................................................2-2 Figure 2.2.1 Population Growth (annual %) ................................................................................................................2-4 Figure 2.2.2 Population Density....................................................................................................................................2-5 Figure 2.2.3 GDP Growth (annual %)..........................................................................................................................2-8 Figure 2.2.4 Paths of Real Regional GDP Relative to 2005 (Index: 2005=100).......................................................2-9 Figure 2.2.5 Internet Users (per 100 people)..............................................................................................................2-10 Figure 2.2.6 ICT Service Exports (% of Service Exports, BoP)...............................................................................2-10 Figure 2.2.7 Inflation (annual %) ................................................................................................................................ 2-11 Figure 2.3.1 Protection Plan for Natural Resources and Historical Monuments.....................................................2-17 Figure 2.4.1 Assistance Trend of Top Five Donor Countries for Palestine, 1995-2010 .........................................2-18 Figure 2.4.2 Assistance Trends of Top Five Sectors for Palestine, 1995-2010........................................................2-22 Figure 2.4.3 Net Official Development Assistance and Official Aid Received (current million USD).................2-22 Figure 2.4.4 Net ODA Received per Capita (current USD)......................................................................................2-23 Figure 2.4.5 Aid Management Structure in Palestine................................................................................................2-24 Figure 3.1.1 Fiscal Situation 2005-2012 (USD million) .............................................................................................3-1 Figure 3.1.2 General Government Balance 2005-2011 (% of GDP) .........................................................................3-2 Figure 3.1.3 Revenue Situation 2005-2012 (USD million) ........................................................................................3-2 Figure 3.1.4 Revenue Situation 2005-2012 (USD million) ........................................................................................3-3 Figure 3.2.1 Solid Waste Production (2005-2011).......................................................................................................3-6 Figure 3.2.2 Regional Origin of Solid Waste in 2011 (%)........................................................................................3-7 Figure 3.2.3 Service Providers of Solid Waste Collection (%) (2005-2011) .............................................................3-7 Figure 3.2.4 Disposal methods of Solid Waste by Households not served by collection service in Palestine

(2005 – 2011)...........................................................................................................................................3-7 Figure 3.2.5 Financial Situation of the Solid Waste Collection by Joint Service Councils (JCs) 2010 (NIS).........3-9 Figure 3.3.1 School Enrolment, Primary (% net).......................................................................................................3-10 Figure 3.3.2 School Enrolment, Primary (% gross)................................................................................................... 3-11 Figure 3.3.3 School Enrolment, Secondary (% gross)...............................................................................................3-13 Figure 3.3.4 Literacy Rate, Adult Total (% of People Ages 15 and Above) ............................................................3-13 Figure 3.3.5 Distribution of Newly Enrolled Students at HEI by Gender 2010/2011.............................................3-17 Figure 3.3.6 School Enrolment, Tertiary (% gross) ...................................................................................................3-18 Figure 3.4.1 Mortality Rate, Infant (per 1,000 Live Births) ......................................................................................3-22 Figure 3.4.2 Mortality Rate, Under-5 (per 1,000 Live Births) ..................................................................................3-22 Figure 3.4.3 Malnutrition Prevalence, Weight for Age (% of Children under 5).....................................................3-23 Figure 3.4.4 Life Expectancy at Birth, 2010 ..............................................................................................................3-23

Data Collection Survey on Assistance Approach in Palestine Final Report

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Figure 3.4.5 Chronic Diseases for Public School Students for the 1st Semester from the School Year

2010/2011 ..............................................................................................................................................3-24 Figure 3.6.1 GDP Contribution by Sector 2000-2010...............................................................................................3-34 Figure 3.6.2 Comparison with MENA and Israel on Percentage Share of Export to GDP, 2006-2010................3-36 Figure 3.6.3 Employment Contribution by Sector 2007 ...........................................................................................3-39 Figure 3.6.4 Unemployment Rate among some MENA Countries and Israel, 2008-2010....................................3-39 Figure 3.6.5 Unemployment by Age Group, 2010....................................................................................................3-39 Figure 3.6.6 Percentage Share of Investment to GDP, 2005-2010 ...........................................................................3-41 Figure 3.7.1 Land Use and Land Cover in 2008 (Gaza) ...........................................................................................3-45 Figure 3.7.2 Land Use and Land Cover in 2005 (West Bank)..................................................................................3-45 Figure 3.7.3 Marketing Channels for Palestinian Vegetables and Cold Chain........................................................3-49 Figure 3.8.1 Guest Nights in Hotels by Nationality (%), 2011 .................................................................................3-52 Figure 3.8.2 Inbound Travels Expense over GDP.....................................................................................................3-55 Figure 3.9.1 Road Networks in Palestine ...................................................................................................................3-58 Figure 3.9.2 International Gateways and Road Networks in Palestine ....................................................................3-59 Figure 3.9.3 Passenger Movement on the Allenby Bridge, 2006-2011 ...................................................................3-61 Figure 3.9.4 Truck Movement on the Allenby Bridge, 2006-2011 ..........................................................................3-62 Figure 3.9.5 Total Truckloads per Year in Gaza, 2000-2011.....................................................................................3-63 Figure 3.11.1 Ground Water Aquifers.........................................................................................................................3-65 Figure 3.11.2 Percentage of Urban Population with Access to Water Source .........................................................3-67 Figure 3.11.3 Percentage of Rural Population with Access to Water Source...........................................................3-67 Figure 3.11.3 Available Water Quality by Source in Gaza Strip (annual; m3).........................................................3-68 Figure 3.11.3 Available Water Quality by Source in West Bank (annual; m3) ........................................................3-68 Figure 3.12.1 Restricted Space in the oPt Area C Map .............................................................................................3-73 Figure 3.12.2 Total Number of Movement Obstacles, 2005-2011...........................................................................3-74 Figure 3.12.3 West Bank Access and Movement Restriction...................................................................................3-75 Figure 4.1.1 Japan's ODA for Palestine by Funding Scheme, 1994-2010.................................................................4-1 Figure 4.1.2 Map of JICA Projects in the Palestinian Territory since 2006 ...............................................................4-4 Figure 4.1.3 Map of Other ODA Projects since 2006..................................................................................................4-6 Figure 4.1.4 Japan’s Concept for Creating the “Corridor for Peace and Prosperity” ................................................4-8 Figure 4.2.1 Existing and Scheduled Projects Assisted by JICA................................................................................4-9 Figure 4.2.2 Jericho Master Plan and Implemented Projects.................................................................................... 4-11 Figure 5.1.1 Japan’s Aid Policy and PA’s Policy..........................................................................................................5-1 Figure 5.2.1 JICA’s Assistance Strategy and Programmes (Draft) .............................................................................5-2 Figure 5.2.2 Industrial Development Programme .......................................................................................................5-3 Figure 5.2.3 Strengthening Resilience Capacity Programme .....................................................................................5-4

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ABBREVIATIONS

Abbreviation Original Word

A ABP Association of Banks

AECID Agencia Española de Cooperación Internacional Para el Desarrollo

AFD Agence Française de Développement (French Development Agency)

AHLC Ad Hoc Liaison Committee

AIDA Association of International Development Agencies

AQAC Accreditation and Quality Assurance Commission

ASAP Strengthening Support System focusing on Sustainable Agriculture in Jericho and Jordan River Rift Valley

C CPP The Corridor for Peace and Prosperity

D DAC Development Assistance Committee

E EC European Commission

EGY Arab Republic of Egypt

EIB European Investment Bank

EPCGF Europe and Palestine Credit Guarantee Fund

EQA Environmental Quality Authority

EVAP The Project on Improved Extension for Value-Added Agriculture in the Jordan River Rift Valley

EU European Union

F FAO Food and Agriculture Organization

FPCCIA Federation of Palestinian Chambers of Commerce, Industry and Agriculture

F/S Feasibility Study

FSWG Fiscal Sector Working Group

G GDP Gross Domestic Product

GIZ Gesellschaft für Internationale Zusammenarbeit (German development agency)

H HEI Higher Education Institution

I ICT Information and Communication Technology

IDA International Development Association

ISR Israel

J JAIP The Jericho Agro-Industrial Park

JETRO Japan External Trade Organization

JICA Japan International Cooperation Agency

JM Jericho Municipality

JMP Joint Monitoring Programme

JOCV Japan Overseas Cooperation Volunteers

JOR Jordan

JCs Joint Services Councils

K KfW Kreditanstalt für Wiederaufbau (German government-owned development bank)

L LACC Local Aid Coordination Committee

LACS Local Aid Coordination Secretariat

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Abbreviation Original Word

LDF Local Development Forum

LBN Lebanon

LGUs Local Government Units

LMC Lower middle income

M MCH Maternal and Child Health

mcm million cubic metres

MDLF Municipal Development Lending Fund

MDP Municipalities Development Program

MENA Middle East and North African

MFIs Microfinance Institutions

MoA Ministry of Agriculture

MoE Ministry of Education

MoEHE Ministry of Education and Higher Education

MoF Ministry of Finance

MoH Ministry of Health

MoHE Ministry of Higher Education

MoLG Ministry of Local Government

MoNE Ministry of National Economy

MoPAD Ministry of Planning and Administrative Development

MoT Ministry of Transport

MoWA Ministry of Women’s Affairs

MSMEs Micro, Small and Medium Enterprises

N NCD Non Communicable diseases

NDP The National Development Plan

NGO Non-Governmental Organization

NHK Nippon Hoso Kyokai (Japan National Broadcasting Company)

NICCOD Nippon International Cooperation for Community Development

NIS New Israel Sheqel

NORWAC Northwest Astrological Conference

NSP National Spatial Plan

O ODA Official Development Assistance

OECD Organisation for Economic Co-operation and Development

OECD-DAC Organisation for Economic Co-operation and Development- Development Assistance Committee

OPT Occupied Palestinian Territory

P PA Palestinian Authority

PALTRADE Palestine Trade Center

PCBS Palestinian Central Bureau of Statistics

PFIA Palestinian Food Industry Association

PFI Palestinian Federation of Industry

PHC Primary Health Care

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Abbreviation Original Word

PIEFZA The Palestinian Industrial Estates & Free Zones Authority

PITA Palestinian IT Association

PLC Palestine Legislative Council

PLO Palestine Liberation Organization

PMS Police Medicl Service

PNA Peacebuilding Needs and impact Assessment

PNDP Palestinian National Development Plan

PPP Public Private Partnership

PSE West Bank and Gaza Strip

PSR Palestinian centre for policy and Survey Research

PWA Palestinian Water Authority

S SDC Swiss Agency for Development and Cooperation

SGs Strategy Groups

SHCs Special Hardship Centers

SME Small and Medium Enterprises

SNS Social Network Systems

SV Senior Volunteers

SWGs Sector Working Groups

SYR Syrian Arab Republic

T TFPI Task Force on Project Implementation

TIMSS Trends of the scores in International Mathematics and Science Study

TVET Technical and Vocational Education and Training

U UN The United Nations

UNEP United Nations Environment Programme

UNESCO United Nations Educational, Scientific and Cultural Organization

UNESCWA United Nations Economic and Social Commission for Western Asia

UNDP The United Nations Development Programme

UNICEF The United Nations Children's Fund

UNOCHA United Nations Office for the Coordination of Humanitarian Affairs

UNRWA United Nations Relief and Works Agency for Palestine Refugees

USAID United States Agency for International Development

USD United States Dollar

V VAT Value Added Tax

W WB World Bank

WHO World Health Organization

WWTP Wastewater Treatment Plant

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Currency equivalents

as of September 2012

Israeli New Shekel (ILS) 1.00 = Japanese YEN (JPY) 19.51

US Dollar (USD) 1.00 = JPY 78.63

Israeli New Shekel (ILS) 100 = USD 24.81

Chapter 1 Introduction

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Chapter 1 Introduction

1.1 Outline of the Data Collection Survey

(1) Background

In July 2006, Japan proposed the concept of “the Corridor for Peace and Prosperity (CPP)” as a mid to

long-term effort toward the co-existence and co-prosperity between the Israelis, Jordanians and

Palestinians. This concept is based on the idea that realization of two states of Israelis and of Palestinians

is essential for peace between them, and economic independence and strengthening of industrial

infrastructure, with the confidence-building among neighboring countries, is necessary for the

establishment of a viable Palestinian state in the future. Japan has committed its efforts toward the

establishment of the Jericho Agro-industrial Park (JAIP), located in a suburb of Jericho city, as a core

project toward the realization of this concept.

The Japanese-Palestinian High-level Governmental Consultative Meeting, which was held in July 2010,

whereby both parties agreed to “the Seven Priority Areas” for Japan’s contribution in the coming three

years to the implementation of the 13th Government’s Program and the Palestinian National Plan

2011–2013 which consists of Small and Medium Enterprises (SME) support and export facilities,

agriculture, tourism, local governance, finance, water and waste water, and health. In the following month,

these priority areas were confirmed by the strategic consultation between both sides.

Based on the recognition that the best way to achieve peace in the Middle East, is to realize the peaceful

co-existence and co-prosperity between the two states of Israeli and of Palestinians, Japan has consistently

worked toward the settlement of this issue, through engaging in the following.

Political dialogues with both parties

Assistance to the Palestinians for future state-building

Confidence-building measures between both parties

Since 1994, the Japanese government has provided assistance to Palestine. As the implementing

organization, the Japan International Cooperation Agency (hereinafter referred to as “JICA”) has played a

significant role within Palestine from 1997. In line with the Japanese government’s assistance policy

toward Palestine, reflected in the CCP, and addressing the Seven Priority Areas, JICA has expanded its

cooperation to Palestine year by year, in the form of grant aid and technical cooperation schemes. Major

projects assisted by JICA in recent years are listed as Appendix 1. A comprehensive review or evaluation

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of JICA’s assistance, however, has not been implemented, although JICA conducted project level

evaluations for technical cooperation projects. In view that a number of priority projects; which were

implemented during the initial stages of 2006, have either successfully concluded, or are within later

stages, JICA has determined that it would be an ideal time to conduct a comprehensive review or

evaluation of their assistance within Palestine. Comprehensive in terms that a review will be made through

assessing outcomes and impacts of JICA’s existing projects, and identifying lessons to be learned from their

implementation process, as well an analysis of the priority sectors and political economy in Palestine.

The Middle East Division 2 of JICA responsible for JICA’s assistance toward the Palestinians has

contracted a consortium structured by Oriental Consultants Co., Ltd. and KRI International Corp.

(hereinafter referred to as the Study Team) to conduct a study referred to as the “Data Collection Survey

on Assistance Approach in Palestine” (hereinafter referred to as “the Study”). It is to be noted that all data

and information collected in this survey will be utilized internally in JICA for improving JICA’s operation.

(2) Objective of the Study

The objective of the Study is to initially collect and analyze relevant data/information which is the

background reference material essential to the review of the assistance approach taken in Palestine

through the following activities.

To review and evaluate existing JICA’s assistance by sector level and by project level

To examine JICA’s assistance approach and issues to be considered, through interviews with

government officials and private sector stakeholders, as well as conduct field surveys

To offer recommendations on priority areas, and relevant methodology for JICA’s assistance in

Palestine for the next five years

(3) Study Period

The Study is to be initiated in mid-March 2012, and is scheduled to conclude by the end of September

2012.

(4) Study Area

The entire area of Palestine, which consists of the West Bank and Gaza Strip, is the study area. The

reconnaissance survey was conducted in the entire area of the West Bank and Gaza city in Gaza Strip

considering security conditions in the field.

(5) Establish the Advisory Committee on the Study

JICA established the Advisory Committee on the Study inviting academia and professionals who possess

rich knowledge and experience in Palestine. The committee convened three times during the study period,

and provided insight and advice to the Study Team and JICA officials.

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1.2 Scope of Works and Methodology

1.2.1 Work Flow and Procedures

(1) Scope of the Study

Main items of the study are as follows;

Review and analysis on political, economic and social conditions in Palestine

Study on current situations of main seven sectors, policies of the Palestine and assistance from other

donors

Review and evaluation of past projects by JICA at a sector program level

Recommendation on Japan’s assistance over the next five years

(2) Framework of the Study

Under the supervision of JICA, this study was conducted by the Study Team that consists of five

consultants including the Team Leader/ Assistance Approach Analysis, two consultants for Impact

Assessment/ Sector Analysis, Public Relations, and Data Information Collection and Compilation. The

study was composed of works in Japan (data collection, analysis, interviews), three batches of field

surveys in Palestine, and three meetings of the Advisory Committee.

The study team submitted the Inception Report (April 2012), Interim Report (June 2012), Draft Final

Report (August 2012) and Final Report (September 2012) to JICA.

(3) Work Flow

Work procedures and timeline of the Study are summarized in Figure 1.2.1.

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Year 2012 Month Mar. Apr. May Jun Jul. Aug. Sep. Survey

Advisory Committee

1st 2nd 3rd

Report

IC/R IT/R DF/R F/R

Figure 1.2.1 Flowchart of the Study

1.2.2 Methodology

The Study Team employed an efficient and effective methodology as follows in order to deal with the

limited study period of six months.

(1) Literature Review

The Study Team has collected and analyzed papers, literature and online information about assistance for

Palestine mainly from JICA. In addition, the team collected and reviewed related information from

appropriate counterparts in Palestine.

(2) Review of Reports of the Existing Projects

The Study Team reviewed existing study reports and evaluation reports to avoid duplication of surveys

and interviews with other studies and evaluation practice in the past.

(3) Interviews

The Study Team conducted interviews with the Advisory Committee members, JICA officials, JICA

experts, consultants and Journalists in Japan. In Palestine, the Study Team also had interviews with

relevant governmental authorities about JICA assistance, development plans and assistance needs. In

addition, the team had interviews with donors for Palestine, international organizations, NGOs and

private entities about assistance policies, progress and public relations. The table below summarizes

entities that the Study Team conducted interview with.

Ramadan

Japan Japan PalestineJapan Palestine JapanPalestine

Examination of Assistance Approach focused on seven priority areas, policy of Palestinian Authority and other donor’s support

Review and analysis of the political, economic and social condition of Palestine

Study on Public Relations

Review of JICA’s assistance

Recommendations for the direction of cooperation for the next five years

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Table 1.2.1 Interviewees

Classification Interviewees

JICA and Japanese entities

JICA Middle-East and Europe Department, Advisory Committee, other related JICA departments, JICA Palestine office, project experts, Representative Office of Japan to the PA, JETRO

Palestinian governmental entities

Ministry of Planning and Administrative Development, Ministry of Finance, Ministry of National Economy/PIEFZA, Ministry of Local Governance, Ministry of Health, Ministry of Education and Higher Education, Ministry of Tourism and Antiquities, Ministry of Agriculture, PWA, Ministry of Transportation, Ministry of Telecommunication & Information Technology, Ministry of Social Affairs, Ministry of Women’s Affairs, Palestinian Energy & National Resource Authority, EQA, Liaison Office in Jericho, PLO Negotiations Affairs Dept., NSP Dept.

International Organizations, donors, NGOs

UNOCHA, UNDP, UNRWA, FAO, WB, USIAD, AFD, GIZ, KfW, AECID, Norway government, NICCOD, NORWAC

Media

Local and international media: Associated Press, newspaper/radio companies in Ramallah Japanese media: NHK, Jiji Press Ltd. Kyodo News, The Yomiuri Shimbun, The Mainichi Newspapers,

Industrial association PALTRADE, PITA, hotel association, sightseeing business association, PFI, EPCGF, FPCCIA, Banking Association, PFIA, ASALA, Union of Pharmaceutical Industries

Private entities

ICT business operators (Paltel, Call U, Safad Technologies, Asal Technologies), makers (Royal, Naboli, Al-Salam Co., Majed Al Nabulsi Co.), food (Sinokrot Global Group, Palestine Garden, Agripal, Taybeh Brewing, Cremisan), sightseeing business operators (Bethlehem Star Travel, Mount David Hotel), logistics (WASSEL)

Others Quartet, LACS, MDLF, JICA Alumni, PSR, Al Najah University Source: Study Team

(4) Reconnaissance Survey

The Study Team visited project sites concerning the JICA’s assistance, major areas (Jericho, Tubas, Jenin,

Nablus, Tulkarem, Jerusalem, Bethlehem, Hebron and Jordan River Valley) and facilities (agriculture,

industry, tourism, medical/health, education, community and border control) in the West Bank and Gaza.

The purpose of the visits was to clarify the current situations and effectiveness of assistance in these

places. Considering utilization of the results of the other JICA study in Gaza which was conducted in

March 2012 and the entry permission to Gaza, the Study Team could only spend one day for survey in

Gaza.

(5) Impact Survey on JICA Projects

The Study team subcontracted the detailed impact survey on JICA projects to a local consulting firm

named General Consulting & Training: GCT. GCT conducted the survey including interviews with

beneficiaries of the JICA project in May and June, and then submitted a report to the Study Team.

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(6) Supplementary Data Collection by Local Staff

The Study Team employed local staff in Palestine to should help the Study Team both when the team was

in and out of Palestine. The local staff contributed to the team with supplementary data collection

according to directions given by the Study Team.

1.2.3 Limitation of the Study

The Study was conducted within the short period of six months with a limited number of study members.

The purpose of the study was data collection on present conditions and issues in major sectors and

reviewing major JICA projects. In this sense, in data collection, accessing a wide range of information

took priority over excessively detailed technical validation or evaluation of each project.

In addition, the Study was subject to restrictions and the Study Team took the most practical measures as

denoted below;

As mentioned above, the Study Team was confronted with a limited schedule and access to Gaza

Strip. Therefore, the Study Team utilized the report of “Data Collection Survey on Assistance to

Gaza Strip” report provided by the JICA Palestine office for examining the assistance approach to

Gaza.

Concerning the survey on Palestinian refugees, similarly, the Study Team utilised reports and papers

which JICA had conducted recently.

The Study Team referred to reports of other JICA missions in some sectors including agriculture,

health, tourism and private sector development. These missions were expected to conduct detail

surveys and interviews related to each project. Thus, the Study Team utilized the outputs of the

missions instead of conducting similar surveys by itself, to avoid duplication.

Although the Study Team tried to avoid field surveys during Ramadan (July/August), some of the

supplementary data collection was conducted during that period and were relatively less efficient. As

for the Education sector, some parts of the survey were conducted during the summer holiday, and

this made it difficult for the Study Team difficult to interview with the beneficiaries.

Chapter 2 Overview of Present Situation of Palestine

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Chapter 2 Overview of Present Situation of Palestine

2.1 Natural Geography of Palestine

Historical Palestine is located in Western Asia, between latitude 29° 30´N - 33° 15´N and longitude 24°

10´E – 35 °40´E and belongs to the region of the Middle East. Palestine is an Interim Self-Governing

Authority consisting of two territories, one is called the West Bank which is close to Jordan and has

mountainous areas in the southern part of the Jordan River Rift Valley, and the other one called Gaza

Strip which is close to Egypt and the Mediterranean Sea and has coastal areas. Palestine territories are

6,020 km² of which 5,655 km² is in the West Bank and 365 km² in the Gaza Strip.

The boundaries of Palestine have varied throughout history. Currently, the land boundaries of the West

Bank are 404 km long of which 307 km is bordering Israel and 97 km is bordering Jordan. The land

boundaries of Gaza Strip including a coastline of 40 km are 102 km long of which 51km is bordering

Israel and 11 km is bordering Egypt. The land borders with Israel are known as the Green Line.

Three distinct zones exist in Palestine; Areas A, B and C. Each governorate has different security and

administrative arrangements as follows.

A area: Under full Palestinian control, mainly urban areas such as cities and towns

B area: Under Palestinian civil control and Israeli security control, mainly populated rural areas.

C area: Under full Israeli control, settlement access roads, and buffer zones (near settlements, roads,

Strategic areas and Israel)

Areas A and B are not contiguous but consist of more than 200 enclaves. Area C covers

approximately 60 % of the West Bank territory.

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Source: Study Team based on a map developed by UNOCHA

Figure 2.1.1 Palestinian Territory

Palestinian Topography is divided into four areas; the coastal area, the mountainous area including

intervening plains, Al-Ghor (the Rift Valley) including the Araba Valley, and the Area of Be’r-es-Sabe

(Beersheba) and the Desert. In the middle of the West Bank, hilly areas stretch in a south–north direction.

Elevations range from approximately 400 m below sea level around the Dead Sea, to approximately

1,020 m atop nearby Mt. Hebron.

The Jordan River which is the only major stream around this region flows in a southern direction from the

Lake of Tiberius or Galilee which is the largest freshwater lake towards the intensely saline Dead Sea.

The water supply of the region is not abundant, with virtually all of the modest annual rainfall coming in

the winter months. Table 2.1.1 shows the annual rainfall in major cities.

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Table 2.1.1 Rain fall Quantity in 2010 Gaza

(2007) Bethlehem Hebron Jericho Ramallah Nablus Jenin

Total Quantity (mm)

405.1 366.7 393.7 124.2 502.1 508.6 336.5

Source: PCBS, Meteorological General Directorate

The climate in Palestine is generally Mediterranean. However the climate varies with altitude and

location. In Hilly areas in the West Bank, its temperature falls according to the latitude. The western slope

of the West Bank has a Mediterranean climate with rainfall during winter. The eastern slope and the

southern part of the West Bank have a desert climate. In contrast, the Gaza has a Mediterranean and is

mild throughout the year. In addition, Palestine is prone to sandstorms from the south at the turn of the

rainy season and dry season. Table 2.1.2 shows the temperatures in major cities.

Table 2.1.2 Temperatures in 2010 (°C)

Gaza (2008)

Bethlehem Hebron Jericho Ramallah Nablus Jenin

Maximum Air Temp.

- 34.6 31.6 39.6 31.0 33.5 35.7

Minimum Air Temp.

- 8.9 8.4 11.4 9.5 9.5 10.4

Mean Air Temp.

19.8 19.7 18.5 25.6 18.6 24.7 21.8

Source: PCBS, Meteorological General Directorate

2.2 Macro-economic and Social Trends

2.2.1 Population

Population of Palestine was 3,832,185 in 2007 and the West Bank is the bigger contributor to the total

population with 2,385,180 in the same year while there were 1,440,332 in Gaza (Table 2.2.1). Population

for Palestine, West Bank and Gaza in 2012 are estimated to be 4,293,309, 2,649, 020 and 1,644,289

respectively. According to World Bank, population growth of Palestine has remained the largest among

the Middle East and North African (MENA) region at 2.65 %. Even though the areal population of the

West Bank has been larger than that of Gaza, the annual population growth of Gaza has been about one

percent larger than that of the West Bank in more than the last ten years (Figure 2.2.1). This will cause a

serious impact on the living environment in Palestine, especially Gaza.

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Table 2.2.1 Population, total (thousand)

PSE West Bank Gaza EGY ISR JOR LBN SYR LMC MENA

1994 61,032 5,399 4,061 3,365 13,809 1,926,008 276,036

1995 62,064 5,545 4,195 3,463 14,171 1,962,817 283,433

1996 2,783 1,788 996 63,120 5,692 4,325 3,539 14,519 1,999,724 289,169

1997 2,872 1,839 1,033 64,200 5,836 4,459 3,597 14,856 2,036,683 294,902

1998 2,962 1,891 1,071 65,309 5,971 4,597 3,644 15,200 2,073,467 300,658

1999 3,053 1,944 1,110 66,457 6,125 4,681 3,690 15,573 2,110,116 306,518

2000 3,138 1,993 1,146 67,648 6,289 4,798 3,742 15,989 2,146,678 312,597

2001 3,225 2,042 1,183 68,888 6,439 4,918 3,803 16,455 2,183,231 318,759

2002 3,315 2,093 1,221 70,175 6,570 5,038 3,869 16,963 2,219,728 325,087

2003 3,407 2,146 1,261 71,498 6,690 5,164 3,935 17,490 2,256,354 331,570

2004 3,508 2,204 1,304 72,845 6,809 5,290 3,998 18,005 2,293,148 338,311

2005 3,612 2,263 1,349 74,203 6,930 5,412 4,052 18,484 2,330,121 345,277

2006 3,719 2,323 1,396 75,568 7,054 5,537 4,097 18,861 2,367,271 352,562

2007 3,826 2,385 1,440 76,942 7,180 5,662 4,135 19,245 2,404,628 360,108

2008 3,935 2,448 1,487 78,323 7,309 5,787 4,167 19,638 2,442,284 367,758

2009 4,048 2,513 1,535 79,716 7,486 5,915 4,197 20,038 2,480,368 375,398

2010 4,102 2,513 1,589 81,121 7,624 6,047 4,227 20,447 2,518,691 382,803

Source: World Bank, PCBS

0

0.5

1

1.5

2

2.5

3

3.5

4

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

%

Year

PSE West BankGaza EGYISR JORLBN SYRLMC MEA

Source: World Bank, PCBS

Figure 2.2.1 Population Growth (annual %)

As shown in Figure 2.2.2, population density in Gaza is already extremely high for the MENA region

(3,823 per square kilometer). Combined with the population density of the West Bank, which is also high

(410 per square kilometer), concentration of a large number of people in a small area is thought to be a

major cause of harm in many aspects in both living and production activities.

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535.0 410.9

3823.9

77.3 331.8

64.2 404.2

104.8 105.5 32.0 -

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

PSE West Bank Gaza EGY ISR JOR LEB SYR LMC MEA

Pers

ons/

km2

Country, area

Source: World Bank, PCBS

Figure 2.2.2 Population Density

Table 2.2.2 summarizes general information on Palestinian refugees in Palestine and neighboring

countries. The number of total registered persons, including refugees and others, in Palestine in 2011 is

2,092,146. The West Bank and Gaza have 727,471 and 1,167,572 respectively. In addition to the present

large number of registered refugees, Palestine faces sharp rate of increase of registered refugees (3.6 %).

The situation in Gaza will be more severe, where the increase rate is 4.2 %, but that of West bank is still

high (3 %).

Table 2.2.2 General Information about Palestinian Refugees, January 2012

PSE West Bank

Gaza JOR LEB SYR

REGISTERED REFUGEES (RR) 1,895,043 727,471 1,167,572 1,979,580 436,154 486,946

OTHER REGISTERED PERSONS 197,103 147,156 49,947 67,787 29,644 23,498

TOTAL REGISTERED PERSONS (RPs)

2,092,146 874,627 1,217,519 2,047,367 465,798 510,444

INCREASE IN RPs OVER PREVIOUS YEAR (%)

3.6 3 4.2 2.3 2.2 2.9

EXISTING CAMPS 27 19 8 10 12 9

RP IN CAMPS (RPCs) 738,556 211,665 526,891 359,410 233,509 154,123

RPCs AS % OF RPs 35.3 24.2 43.2 17.5 50.1 30.1

Source: The United Nations Relief and Works Agency

2.2.2 National Economy

According to the Palestinian Central Bureau of Statistics (PCBS), Gross Domestic Product (GDP) of

Palestine has been low within the MENA region and is estimated to have been USD 8,330 million in

2010. The West Bank produces about 70 % of the total GDP in the country (USD 2,807 million) while

Gaza is estimated to be USD 2,150 million (Table 2.2.3). The GDP of Palestine has been the least in the

MENA region since 1994.

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Table 2.2.3 GDP (current million USD)

PSE West Bank Gaza EGY ISR LBN SYR JOR LMC MENA

1994 2,828 1,812 1,017 51,898 74,670 9,599 10,122 6,237 956,911 599,241

1995 3,220 2,096 1,124 60,159 96,065 11,719 11,397 6,727 1,067,338 678,585

1996 3,366 2,201 1,165 67,630 105,370 13,690 13,790 6,928 1,166,557 765,328

1997 3,702 2,453 1,249 78,437 108,390 15,752 14,505 7,248 1,204,013 795,128

1998 3,944 2,630 1,314 84,829 109,887 17,247 15,201 7,914 1,080,983 777,984

1999 4,179 2,874 1,304 90,711 110,791 17,391 15,874 8,152 1,180,550 833,821

2000 4,195 2,912 1,283 99,839 124,749 17,260 19,326 8,464 1,259,203 938,252

2001 3,897 2,642 1,255 97,632 123,059 17,650 21,100 8,980 1,268,151 930,429

2002 3,433 2,307 1,126 87,851 113,010 19,152 21,582 9,584 1,360,177 929,784

2003 3,841 2,476 1,365 82,924 118,904 20,083 21,828 10,198 1,561,305 1,042,121

2004 4,198 2,807 1,391 78,845 126,843 21,789 25,087 11,411 1,815,628 1,207,305

2005 4,634 2,929 1,706 89,686 134,247 21,861 28,859 12,589 2,104,149 1,439,218

2006 4,619 3,192 1,427 107,484 145,844 22,438 33,333 15,645 2,513,345 1,689,204

2007 5,182 3,797 1,385 130,478 166,990 25,057 40,405 17,765 3,109,141 1,978,115

2008 6,247 4,865 1,382 162,818 202,101 30,080 52,582 22,697 3,503,098 2,467,188

2009 6,720 5,111 1,609 188,984 195,392 34,925 53,935 25,092 3,570,125 2,186,079

2010 8,331 6,180 2,150 218,894 217,333 39,006 59,147 27,574 4,322,955 2,476,140Source: World Bank, PCBS

GDP per capita of Palestine in 2010 was USD 2,185, which is more or less the same as that of the West

Bank (USD 2,715). Productivity in Gaza in 2010 was far behind not only Palestine and the West Bank

but all the other MENA countries and average of low and middle income countries (Table 2.2.4). It seems

GDP per capita of most of the MENA countries has been in an increasing trend, whereas that of Gaza has

remained the same since 1994 and now is smaller than the GDP per capita of average low and middle

income countries.

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Table 2.2.4 GDP per Capita (current USD)

PSE West Bank Gaza EGY ISR JOR LBN SYR LMC MENA

1994 1,320.4 1,366.3 1,245.7 850.3 13,830.2 1,535.9 2,852.7 732.9 496.8 2,170.8

1995 1,399.9 1,478.7 1,273.3 969.3 17,324.5 1,603.6 3,384.0 804.2 543.7 2,394.1

1996 1,380.4 1,467.3 1,241.5 1,071.4 18,511.9 1,601.9 3,868.2 949.7 583.3 2,646.6

1997 1,437.7 1,553.4 1,254.2 1,221.7 18,572.6 1,625.4 4,378.7 976.3 591.1 2,696.2

1998 1,481.9 1,614.7 1,272.5 1,298.8 18,403.3 1,721.4 4,732.8 1,000.0 521.3 2,587.6

1999 1,519.2 1,711.3 1,217.9 1,364.9 18,088.2 1,741.5 4,712.9 1,019.3 559.4 2,720.3

2000 1,477.0 1,683.0 1,155.7 1,475.8 19,836.1 1,764.2 4,612.1 1,208.7 586.5 3,001.4

2001 1,333.0 1,486.1 1,095.6 1,417.2 19,111.5 1,826.2 4,641.1 1,282.2 580.8 2,918.9

2002 1,140.8 1,263.2 952.0 1,251.8 17,200.9 1,902.3 4,950.8 1,272.3 612.7 2,860.1

2003 1,240.4 1,320.0 1,118.1 1,159.7 17,774.1 1,974.7 5,103.1 1,248.0 691.9 3,142.9

2004 1,317.0 1,457.1 1,103.1 1,082.3 18,628.7 2,157.1 5,449.9 1,393.3 791.7 3,568.6

2005 1,410.0 1,477.4 1,307.5 1,208.6 19,371.5 2,326.2 5,394.4 1,561.2 903.0 4,168.3

2006 1,363.0 1,565.0 1,057.5 1,422.3 20,676.1 2,825.6 5,476.1 1,767.2 1,061.7 4,791.2

2007 1,483.0 1,809.3 992.3 1,695.8 23,257.2 3,137.6 6,059.8 2,099.4 1,292.9 5,493.1

2008 1,737.0 2,256.3 959.5 2,078.7 27,651.8 3,922.0 7,218.6 2,677.5 1,434.3 6,708.7

2009 1,815.0 2,307.0 1,082.0 2,370.7 26,102.3 4,242.1 8,321.3 2,691.5 1,439.3 5,823.3

2010 2,185.9 2,715.4 1,400.7 2,698.3 28,506.3 4,559.8 9,227.8 2,892.7 1,716.3 6,468.4

Source: World Bank, PCBS

According to the World Bank, GDP growth has fluctuated (Figure 2.2.3). The second intifada that started

in September 2000 may have pulled down the country economy and therefore the annual GDP growth

shows a sharp decline. It, however, shows a tendency to increase after 2001. When compared to the other

MENA member countries, recent GDP growth of Palestine after 2002 remains relatively high. The next

step would be to reduce the regional GDP gap between the West Bank and Gaza while keeping positive

annual GDP growth at the country level.

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-20

-15

-10

-5

0

5

10

15

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010%

Year

PSE EGY ISR

JOR LBN SYR

LMC MEA

Source: World Bank

Figure 2.2.3 GDP Growth (annual %)

A closer look at regional real GDP in the West Bank and Gaza would shed light on the more recent

economic situation in the regions and Palestine. According to Figure 2.2.3, most of the MENA countries

experienced a sharp drop of GDP in 2009 due to the Lehman Shock that happened in August 2008. Even

with this world wide depression, the West Bank economy has taken an upward path and produced about

1.5 more GDP relative to 2005. Gaza doesn’t seem to have been effected by the Lehman Shock either,

however, Israeli military operation and physical blockage have been affecting the area and GDP rose less

than in 2005.

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Source: World Bank

Figure 2.2.4 Paths of Real Regional GDP Relative to 2005 (Index: 2005=100)

In June 2002, the government of Israel decided to build a separation barrier between Israel and the West

Bank in order to control entry of Palestinians into Israel. In addition, construction of permanent

checkpoints such as permanently staffed checkpoints, barrier checkpoints, partially staffed checkpoints

and unstaffed obstacles is on-going. Therefore, economic activities, especially material ones, in Palestine

are subject to physical restriction. In this background, a high percentage of internet users may play an

important role in boosting one of the largest GDP contributors in Palestine. Even though it is true that the

percentage of internet users in all the MENA countries is in an increasing trend, that of Palestine increases

at a more rapid rate than others.

・Hamas’s win on election

・Lehman shock

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0

10

20

30

40

50

60

70

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Use

rs/1

00 p

eopl

e

Year

PSE EGY ISR

JOR LBN SYR

LMC MEA

Source: World Bank

Figure 2.2.5 Internet Users (per 100 people)

In addition, relatively high percentage of ICT service exports may strengthen the raise in GDP. As shown

in the Figure 2.2.6, Palestine is the second largest ICT service export country among MENA region

behind Israel.

0

5

10

15

20

25

30

35

40

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Perc

ent o

f ser

vice

exp

orts

Year

PSE EGY

ISR LBN

SYR LMC

Source: World Bank

Figure 2.2.6 ICT Service Exports (% of Service Exports, BoP)

Palestine does not have its own currency. Currencies used in Palestine are mainly the New Israeli Shekel

(NIS), USD, Jordanian Dinar and Euro. NIS and USD have been treated as the major currencies in the

government budget and for commercial trade in the private sector. Market prices are susceptible to these

currency exchange rates because the Palestinian market tends to depend on imported goods from foreign

countries. The figure below shows the inflation rate based on consumer prices in Palestine and

neighboring countries. The Palestinian inflation rate shows a similar trend to that of Israel.

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-5

0

5

10

15

20

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

%

Year

PSE EGY

ISR JOR

LBN SYR

Source: World Bank

Figure 2.2.7 Inflation (annual %)

2.3 National Development Plans of Palestine Authority

2.3.1 National Development Plan 2011-2013

(1) National Policy Agenda

According to the National Development Plan (NDP) 2011-2013 which was prepared by the Palestinian

National Authority in April 2010, the core national development vision is that independence, sovereignty

and open borders are essential to achieve the sustainable social and economic development of Palestine.

The Government of Palestine set main policy priorities in four major sectors; Governance, Social,

Economy and Infrastructure.

1) Governance

The NDP states that it is essential to maintain efficient, effective and accountable public institutions to

sustain social cohesion, justice and equality and create a stable environment so that individuals and

businesses could have enough confidence to invest in their future. In order to achieve such situation, the

Government of Palestine commits in the NDP to tackle justice and security, central and local

administration, and financial and economic stability. Strategic objectives are as follows.

To provide national security and public safety throughout the country

To deliver justice and the rule of law for all citizens

To modernize and streamline public administration

To empower local government and bring public services closer to citizens

To attain financial independence and economic stability

To promote Palestine’s sovereign presence in the international community

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2) Social

The Government of Palestine shows strong commitments on empowering the poor, children, youth,

women and other vulnerable citizens. The NDP clearly emphasizes that human capital is the most

precious asset for Palestine and the Government will invest heavily in education to attain an innovative,

knowledge-based economy and a cohesive, tolerant and progressive society. The following strategic

objectives have been set for the Social Sector.

To support and empower the poor and other vulnerable citizens and their families

To prepare the children and youth for a fulfilling life and productive work in Palestine

To restore Palestine as a center of excellence in higher education and academic research

To promote and sustain a healthy society

To safeguard and renew Palestine’s heritage and culture

To promote the full participation and empowerment of women in society

To invest in the youth to enable them to reach their full potential in their homeland

3) Economy

In order to strengthen the economic potential in Palestine, the Government of Palestine makes a strong

effort to foster growth in key sectors and provide incentives to encourage private sector investment to

build up the industrial base and productivity in Palestine. In addition to promoting investment, it is also

indicated that the Government continues to focus on legal and institutional reform in the economic sector

to promote the competitiveness of Palestinian products and services. In the short term, strategically, the

NDP targets the tourism and agriculture sectors to enhance competitive advantages which have a high

short-term growth potential. The Government of Palestine announced its commitment to pursue the

following strategic objectives to strengthen the Palestinian Economy.

To ensure a positive investment environment in Palestine

To enhance the competitiveness of Palestinian products and services

To promote economic integration and access to external markets

To ensure a vibrant labor market and combat unemployment

To strengthen consumer protection institutions

4) Infrastructure

In the NDP, Investment in the physical infrastructure in Palestine is promised with public and private

funds to improve the quality of life of Palestinian citizens and strengthen growth of the Palestinian private

sector. The following strategic objectives for the Infrastructure sector shows that the Government of

Palestine places a high priority on improving the infrastructure in energy supply, water management,

transportation, telecommunications and housing. Additionally, environmental protection will be

continuously implemented in order to protect Palestinian natural resources.

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To develop an integrated and sustainable national infrastructure network

To secure Palestine’s supply of energy and natural resources

To protect the environment in Palestine

To maintain the long-term quality, affordability and safety of infrastructure systems

To ensure adequate, safe and affordable housing

(2) Macroeconomic and Fiscal Framework

The Government of Palestine will continue to implement strategic reforms to restrain public sector

spending over the long-term. According to the NDP 2011-2013, the macroeconomic framework is

predicated on a baseline scenario. Under this baseline scenario,

Real GDP growth will reach 12 % in 2013 (9 % in 2011)

Unemployment rate will decline to 15 % in 2013 (25 % in 2009)

Recurrent deficit will decline to 4.1 % of GDP in 2013 (25.9 % in 2009)

Development expenditures will rise to 9.9 % of GDP in 2013 (6.5 % in 2009)

Projected government net revenues will grow 16 % per annum from 2010 to 2013

Through projected economic growth and improvement of revenue administration, tax and clearance

revenues will progressively contribute to the Government budget, reducing recurrent budget support. It is

expected within these three years of implementing the NDP 2011-2013 that external fund inflow to

Palestine will be a real investment in the future of Palestine.

Table 2.3.1 Total External Financing Requirement, 2011-2013

2011 2012 2013

USD m % of GDP USD m % of GDP USD m % of GDP

Recurrent expenditure 967 11.4 881 9.2 501 4.5

Development expenditure 500 5.9 863 9.1 1,095 9.9

Total external financing 1,467 17.4 1,754 18.3 1,596 14.5Source: Study Team based on PNDP 2011-2013

Recurrent expenditure will decline to USD 0.5 billion in 2013 (from a peak of USD1.76 in 2008)

Development expenditure will be raised to USD 1.1 billion and share in GDP will be around 10 % in

2013 (3 % in 2007)

Total requirement will be reduced to USD 1.6 billion which is 14.5% of GDP in 2013 (USD 2 billion

and 32.4 % share in GDP in 2008)

(3) National Development Expenditure Plan

The NDP projects development expenditure totaling USD 2.5 billion, comprising USD 500 million in

2011, USD 873 million in 2012, and USD 1,095 million in 2013. A summary of four major sector

allocations of the total development expenditure is shown in the following table.

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Table 2.3.2 Sector Allocation of Total Development Expenditure

2011 2012 2013 Sector

USDm Share

by sectors USDmShare

by sectorsIncrease

(2012/2011) USDm Share

by sectors Increase

(2013/2011)

Governance 142 28.4% 207 23.7% 145.8% 207 18.9% 145.8%

Social 142 28.4% 283 32.4% 199.3% 385 35.2% 271.1%

Economy 74 14.8% 135 15.5% 182.4% 192 17.5% 259.5%

Infrastructure 142 28.4% 248 28.4% 174.6% 311 28.4% 219.0%

Total Expenditure 500 100% 873 100% - 1095 100% - Source: Study Team based on PNDP 2011-2013

The features of the total development expenditure by the NDP are;

Palestinian National Development Plan (PNDP) plans to continue to make significant investment in

Governance, particularly general administrative reform in local government, and justice and security

institutions. This investment will stay relatively constant in absolute terms,

The Government of Palestine proposes a much greater proportion of resource allocation to

development of the social, economic and infrastructure sectors, and

The NDP’s expenditure plans in the Social, Economic and Infrastructure sectors reflect the

government’s commitment to building an economy, underpinned by modern infrastructure, which is

well-equipped to thrive and prosper in the context of increasing globalization.

(4) Accountability

The Government of Palestine promises to keep working on improving government financial

accountability in NDP 2011-2013 much broader than in the past by prioritizing four main elements;

Transparency, Performance, Partnership and Oversight.

Transparency: To launch the NDP, the Government of Palestine expressed a strong commitment to

guarantee public access to information outlining national policy priorities, development plans and

budget. The Government also continues to raise the transparency of public finances through opening

financial statements to the public.

Performance: The NDP is highly evaluated for setting specific and measurable targets to be achieved

by the end of 2013. This reflects a deepening commitment to government accountability and a

determination to identify and address areas of weakness in government performance.

Partnership: To implement the NDP during 2011 to 2013, the Government plans to expand its public

consultation efforts to include evaluation of the public sector’s performance in implementing the

NDP. Strengthening partnerships with local communities is also a critical element of the

Government’s efforts to be more accountable to citizens and more responsive to their needs.

Oversight: The Government of Palestine takes responsibility to strengthen oversight institutions,

giving them greater authority and powers to independently assess and report on matters related to

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government performance and other issues in the public interest, including corruption. Oversight by

civil society will be also encouraged to monitor government performance.

2.3.2 National Spatial Plan

(1) National Spatial Planning

Although the National Development Plan seems to be a comprehensive national development framework

for the short-term (three years), there is no mid to long term development plan in Palestine. In accordance

with the government program, a national spatial plan is to be prepared as a platform for other

development programs. The Cabinet approved the National Spatial Planning Framework in April 2010.

The National Spatial Planning is a comprehensive scheme that takes into consideration the spatial

dimension in directing development and the geographical distribution for economic and social activities.

Simultaneously, it achieves the best utilization of potential resources through active interaction between

different policies and planning practices. Also, it includes a comprehensive general national scheme for

roads, transportation and other basic infrastructure facilities within the national dimension.

1) Targets

The National Spatial Planning aims to place the spatial perception for the Palestinian country elements

through achieving the following targets.

Main Goals:

Provide a supporting tool to reinforce national priorities

Bind spatial planning with development planning

Provide the foundations for best utilization of potential resources and maintaining the ecological

balance

Sub-Goals:

Organization and rationalization of utilization of natural resources

Define general trends for regional and local planning ministries in regards to the land uses

Control of the unregulated growth for urban centers and major cities and reduction of internal

migration from rural areas through providing better job opportunities in the rural areas

Achieving organic linking between sectoral planning and urban planning

2) Assumptions

Although it may have to consider the foggy political situation in Palestine, the National Spatial Planning

is based on the following hypotheses.

The NSP assumes the independent Palestinian Country and its capital Jerusalem to be immutable.

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Time Frame: The National Spatial Planning is 10 years (Palestine 2025) from the date of its adoption

with placement of a long term vision (Palestine 2050).

Scope of the NSP: Planning area includes the West Bank, Gaza Strip, East Jerusalem and the No

Man’s Land (the internationally recognized borders for the Occupied Palestinian Territory OPT).

Jerusalem: East Jerusalem is the capital of the independent Palestinian country once it is stated, and

is subject to the sovereignty of Palestine.

Israeli Settlements: All Israeli settlements will be subjected to the Palestinian sovereignty and the

National Spatial Planning is responsible for the re-planning of them for the public benefit.

Refugee Camps: Refugee camps form a major challenge in the urban development and with the

establishment of the Palestinian state and solving the problem of the refugees, there should be a

revival for these communities.

Water Resources: All water resources will be subjected to Palestinian control and sovereignty.

3) Organizational Structure

Under the decision of the Council of Ministries (3/46/13), a ministerial committee that consists of seven

ministries supervises the preparation of the NSP which includes planning & administrative development,

public works & housing, local government, transportation, the national economy, agriculture, and tourism

& antiquities. In all stages of the NSP, civil society and the private sector will be on board.

4) Progress of the NSP

The National Spatial Planning would entail two years planning with estimated budget USD 4,7 million

and led by Palestinian experts belonging to NSP Office located at the MoPAD compound. The planning

process, however, tended to be delayed due to lack of budget. As of June 2012, only the National Plan to

Protect Natural Resources and Historical Monuments as a part of the output of the NSP was prepared.

(2) National Plan to Protect Natural Resources and Historical Monuments

The absence of a national spatial plan will lead to mismanagement and over use of limited resources.

Lack of relevant regulations with limited authority over land, may result in random and unsustainable

development, scarcity of agricultural lands that require special attention and protection roles in order to

sustain food security, and destruction of sites with historical value or environmental sensitivity. Moreover,

it may endanger the dignity and identity of those sites. Considering the above background, as the first step

of the national spatial planning, the National Plan to Protect Natural Resources and Historical Monuments

was prepared and approved by the Cabinet in March 2012. Figure 2.3.1 shows the land use plans both for

the West Bank and for the Gaza Strip. In practice, lands are classified in terms of their suitability for

cultivation as well as protection of natural resources and cultural heritages, and are categorized in

High-valued agricultural lands, Medium-valued agricultural lands, Forests, Areas of landscape, Areas of

biodiversity, and Historical areas.

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Source: National Spatial Planning Department, MOPAD

Figure 2.3.1 Protection Plan for Natural Resources and Historical Monuments

2.4 Development Assistance and Local Aid Coordination in Palestine

2.4.1 Assistance Trend of Development Partners

Development partners’ ODA for Palestine by donors (countries, multilateral organizations, private donors and Development Assistance Committee (DAC) European Union (EU) members) is summarized in

Table 2.4.1. The United States, Japan, Germany, France and the United Kingdom are the largest donors in the cumulative amount. The assistance trends of the top five donor countries are depicted in Figure 2.4.1. This reveals that even though currently United State is the largest donor country, Japan has the longest history as one of the largest countries since 1995. Japan is currently the second largest donor country. On the whole, ODA from development partners has continued to rise.

EU and International Development Association (IDA) are the top donor multilateral organizations in cumulative amounts. These two organizations account for a substantial portion of the whole multilateral organization ODA.

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As well as the above mentioned major donors, neighboring non-DAC countries of the United Arab

Emirates and Kuwait started ODA for Palestine in 2009 and 2010 respectively.

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Mill

ion

USD

Year

United States

Japan

Germany

France

United Kingdom

Source: Study Team based on information from OECD

Figure 2.4.1 Assistance Trend of Top Five Donor Countries for Palestine, 1995-2010

Early years after Oslo accords (1994-1999)

Limited relaxation of restrictions in the West Bank (2003-2005)

Blockage of Gaza Strip (2006-)

Second Intifada (2000)

Israeli army withdrawal from Gaza Strip (2005)

Jericho Regional Development Study Project (2006)

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Table 2.4.1 Development Partners’ ODA for Palestine by Donors, 1995-2010 Donor/Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total

DAC Country United States 10030 9642 11950 20934 23518 27747 24287 24724 31267 29206 33382 274939Japan 10171 8655 6592 14443 12262 16436 12944 12547 15182 14651 17485 201027Germany 3128 3370 4584 5643 5645 9284 9476 9645 12607 9452 11230 102102France 2529 2892 4164 6532 6289 7940 9443 8223 9875 9165 10523 91424United Kingdom 4226 2739 3575 3941 5211 9868 10453 5711 7736 10836 5102 80305Netherlands 2551 2392 4471 2439 2811 3529 10266 4800 5627 5292 6564 60925Canada 1205 999 1589 1573 2273 2664 2452 3338 3707 3780 3906 33088Spain 950 1230 1165 1488 1459 1926 2685 3778 4569 4375 4750 31907Sweden 989 938 1088 2025 2056 2694 3061 2321 2659 3285 3022 29406Norway 795 1085 1102 1434 1335 1948 2654 2958 3715 3920 3805 29042Australia 1027 710 656 1101 1207 1431 2251 1710 3974 2413 3720 24041Italy 729 642 1254 1396 882 2711 2516 1440 2328 1148 978 19438Denmark 940 931 872 678 1667 1542 1370 1481 1570 1941 1732 18910Belgium 503 557 1083 1547 1297 1578 1544 1587 1764 1931 2098 17962Switzerland 677 736 785 918 1258 1407 1243 1524 1693 1727 1909 17071Austria 327 401 398 280 361 1253 1079 1359 1266 537 666 9576Finland 199 280 298 387 429 681 600 661 918 1271 1080 7811Korea .. .. .. .. .. .. 675 1053 1455 1449 1810 6443Ireland 138 201 267 325 410 483 633 832 931 697 587 5503Portugal 322 197 184 188 1030 271 189 307 253 351 396 4281New Zealand .. .. 76 116 173 306 289 279 353 266 289 2226Luxembourg .. 77 95 134 157 219 198 253 279 265 312 1989Greece .. .. 107 228 167 207 197 248 313 297 212 1975

Multilateral EU Institutions 6131 5476 6609 8025 9099 11355 12534 13373 16818 16057 13631 141814IDA 5961 7024 8157 7603 11568 7756 7894 12837 11405 14299 14610 139216AsDB Special Funds 1010 1353 1040 1847 1533 1409 1175 1857 1745 2118 2490 23720Global Fund .. .. .. 993 822 1452 1766 2510 2233 4168 3128 17072AfDF 862 .. .. .. .. 1519 2781 2014 1884 3000 2272 17038IMF (Concessional Trust Funds) 651 1120 1745 1189 1205 598 893 502 1026 2498 1872 13299UNICEF 343 377 565 631 658 738 739 982 987 1104 1050 8175IDB Sp.Fund 343 456 400 563 327 494 362 413 159 590 782 7324IFAD 323 366 320 361 369 429 436 534 520 569 720 6733GEF .. 459 394 499 619 583 557 1062 814 711 530 6227UNDP .. .. .. .. 390 433 459 460 504 643 613 3984AFESD .. .. .. .. .. .. .. .. 1393 1085 1278 3756UNFPA .. 201 259 362 197 204 214 218 275 349 815 3092GAVI .. .. .. .. .. .. .. 968 748 501 783 3001UNRWA .. .. .. .. .. 350 372 388 473 473 545 2601UNAIDS .. 86 64 127 136 124 181 193 209 243 246 1608AfDB .. 70 99 85 150 166 183 176 177 167 158 1432OFID .. .. .. .. .. .. .. .. .. 576 632 1209WHO .. .. .. .. .. .. .. .. .. 437 366 803Isl.Dev Bank .. .. .. .. .. .. .. .. .. .. 371 371UNPBF .. .. .. .. .. .. .. 41 38 41 90 211Nordic Dev.Fund .. .. .. .. .. .. .. .. .. 25 74 99UNECE .. .. .. .. .. .. .. .. 11 13 12 36

Non-DAC Country United Arab Emirates .. .. .. .. .. .. .. .. .. 2221 811 3032Kuwait .. .. .. .. .. .. .. .. .. .. 1040 1040

Private Donor Bill & Melinda Gates Foundation .. .. .. .. .. .. .. .. .. .. .. 0

DAC EU Members G7 Countries 32017 28939 33709 54462 56080 76649 71571 65628 82701 78239 82605 802324DAC EU Members + EC 23661 22323 30213 35257 38968 55541 66243 56018 69512 66901 62880 625330DAC EU Members 17530 16847 23605 27232 29869 44186 53709 42645 52694 50844 49250 483515

Source: Organization for Economic Co-operation and Development (OECD) Note: data were extracted on 02 Apr 2012 07:28 UTC (GMT) from OECD.Stat

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The amounts of development partners’ ODA for Palestine are shown in Table 2.4.2. The table shows that

Government & Civil Society, Action Relating to Debt, Transportation & Storage, Education and

Emergency Response are the top five donated sectors in cumulative amounts. The assistance trend can be

found in Figure 2.4.2. Donor amount in Action Relating to the Debt sector has its peaks in 2003 and in

2004-2005 and other times the donor amount has been relatively low. The other four sectors, on the other

hand, have been on the rise since 1995.

Other sectors that are also highly important are Energy, Health, Population Pol/Progr & Reproductive

Health and Other Multi-sector. Donor projects have been concentrated in these sectors recently and

recorded annual donor amount of over ten billion USD in 2009 and 2010.

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Table 2.4.2 Development Partners’ ODA for Palestine by Sector 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total

Government & Civil Society 4801 5046 6079 8237 13805 12904 13257 16556 19060 19220 18403 151631

Action Relating to Debt 3572 4257 6648 16278 8197 26988 23818 9243 8327 3054 4538 130241

Transport & Storage 5503 4848 4464 4303 6308 7526 7153 7690 13467 13546 14222 119054

Education 3946 3990 5152 6962 9287 7318 10294 11274 11761 13356 13299 113150

Emergency Response 2722 2696 4150 5811 6050 8480 6671 7522 9563 9739 10867 89755

Other Multisector 3451 2733 3618 5794 4234 5177 6398 7005 7500 10445 14014 85560

Energy 2179 2622 3595 3852 6377 4606 4830 6537 8262 7428 12225 83148

Agriculture, Forestry, Fishing 3225 3634 3318 3720 4076 4685 4810 6846 7904 9014 9561 81791

Health 2725 2387 3048 3971 4771 6296 7762 7427 8530 10062 9571 78155

Water Supply & Sanitation 3834 3172 2087 3330 4409 6081 6335 6563 7535 8651 7781 76149

General Budget Support 4136 3238 3980 5434 3857 4165 4729 4436 8776 8747 4371 69850

Population Pol/Progr & Reproductive Health 1727 1791 2388 3673 3835 4774 6378 9128 9671 10043 9962 68807

Other Social Infrastructure & Services 3258 2535 3206 3352 4673 4786 5274 5475 5794 6516 5078 57712

Administrative Costs of Donors 1378 1340 1405 1845 2681 3074 3719 5395 6737 6598 7175 42759

General Environment Protection 1305 1858 1829 1608 2351 2497 2405 4138 4215 5104 6802 41428

Unallocated / Unspecified 2094 1950 3389 1674 2667 2243 5044 2303 2459 1828 337 32902

Industry, Mining, Construction 1168 1093 1747 1955 2673 2331 1992 1331 2696 2059 2259 26907

Banking & Financial Services 566 1578 1089 1287 1442 1683 1639 2167 3529 3672 2696 24574

Dev Food Aid/Food Security Ass 1808 1816 1964 1509 1449 1438 1400 1350 1766 2172 1658 23899

Business & Other Services 1620 919 792 1149 1394 1075 1479 2105 2143 1642 1993 20754

Refugees in Donor Countries 840 853 371 926 1799 1959 1823 1968 2507 3087 3320 20479

Reconstruction Relief & Rehabilitation 352 342 473 1961 750 2185 1494 1109 843 921 1296 13038

Trade Policies & Regulations 127 325 662 631 514 664 1049 809 1106 1351 1207 9080

Communications 486 421 271 520 938 395 494 545 392 644 441 8221

Other Commodity Ass 196 177 250 170 358 151 297 4 317 410 269 4979

Disaster Prevention & Preparedness 11 - - 1 9 88 50 294 532 654 961 2600

Tourism 29 39 33 80 63 165 459 88 65 181 166 1665

Total 57059 55662 66008 90035 98968 123735 131051 129309 155459 160143 164473 1478287

Source: OECD

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0

5,000

10,000

15,000

20,000

25,000

30,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Mill

ion

USD

Year

Government & Civil Society

Action Relating to Debt

Transport & Storage

Education

Emergency Response

Source: Study Team based on information from OECD

Figure 2.4.2 Assistance Trends of Top Five Sectors for Palestine, 1995-2010

According to the World Bank, Palestine has been the largest official development assistance and official

aid receiving country in MENA region since 2005 (Figure 2.4.3). Palestine was also a large donor

receiving country before that time. The high increase rate of annual amount received while the other

MENA countries received the same as in previous years or less pushed Palestine into the first place.

0

500

1,000

1,500

2,000

2,500

3,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Mill

ion

USD

Year

PSE EGY

ISR JOR

LBN SYR

Source: World Bank

Figure 2.4.3 Net Official Development Assistance and Official Aid Received (current million USD)

Limited relaxation of restrictions in the West Bank (2003-2005)

Blockage of Gaza Strip (2006-)

Israeli army withdrawal from Gaza Strip (2005)

Jericho Regional Development Study Project (2006)

Early years after Oslo accords (1994-1999)

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Net ODA amount received per capita shows the same trend. Even though Palestine has been the largest

recipient country for the past 15 years, sharper increase in annual amounts from 2005 has pushed

Palestine up even higher (Figure 2.4.4).

0

100

200

300

400

500

600

700

800

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

USD

Year

PSE EGYISR JORLBN SYRLMC MEA

Source: World Bank

Figure 2.4.4 Net ODA Received per Capita (current USD)

2.4.2 Local Development Framework1

The existing aid coordination structure in Palestine was set up following the decisions made at the

meeting of the Ad Hoc Liaison Committee (AHLC) on 14 December 2005 in London to improve the

effectiveness of the aid coordination structure in providing coherent technical assistance and financial

support based on national priorities to the Palestinian people in line with the Organization for Economic

Co-operation and Development- Development Assistance Committee (OECD-DAC) Paris Declaration

on Aid Effectiveness.

1 LACS Welcome Package for New Arrivals in the OPT, as of October 2010

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Aid Management Structure in the oPt [October 2010]

EEccoonnoommiicc PPoolliiccyy SSGG MoF / World Bank

Sector Working Groups (sector coordination)

AHLC Ad Hoc Liaison Committee

CHAIR: NORWAY CO-SPONSORS: EUREP, US Secretariat: World Bank Members: PA, GoI, Canada, Egypt, IMF, Japan, Jordan, Russia, Saudi Arabia, Tunisia, UN Bilateral invitees : Agreed by AHLC members

[Review of donor/aid strategy and policies]

Quartet US, EUREP, Russia and UN

LLDDFFLLooccaall DDeevveellooppmmeenntt FFoorruumm

CO-CHAIRS: MOPAD, NORWAY, WORLD BANK, UNSCO Members: All donors and aid agencies, relevant PA

agencies (Follow up on aid and international support issues in oPt)

LEGEND: (CO)-CHAIR, TECHNICAL ADVISOR

Liaison Guidance / reporting

SG Strategy Groups (Policy formulation and programmatic coordination) Restricted to relevant PA agencies, donors and institutions that add financial and analytical value

Private Sector Development and Trade SWG

MNE AND WORLD BANK / PSCC

TFPI Task Force on Project

Implementation EUREP, World Bank, US, UNSCO

(Liaison with GoI)

IInnffrraassttrruuccttuurree SSGG MoPWH / US

Sector Working Groups (sector coordination)

GGoovveerrnnaannccee SSGG MoPAD / EUREP Sector Working Groups (sector coordination)

SSoocciiaall DDeevveellooppmmeenntt MoSA / UNSCO

Sector Working Groups (sector coordination)

Education SWG MOEHE & FRANCE / UNESCO

LLAACCSS Local Aid Coordination

Secretariat (Supports LDF, SGs and SWGs, TFPI)

Justice SWG

AGO, HJC, MOJ, MOPAD THE

NETHERLANDS / EUPOLCOPPS

Security SWG

MOI AND UK / USSC/EUPOLCOPPS

Agriculture SWG

MOA AND SPAIN / FAO Health SWG

MOH & USAID/ WHO

Social Protection SWG MOSA & EUREP / UNICEF

Water and Sanitation SWG

PWA AND GERMANY / WORLD BANK

Capital Level

Local Level

Elections WG4

CEC / EUREPAND US

PACS SWG

MOPAD AND UK / UNDP

Municip. Dev. & Loc. Gov. SWG

MOLG AND DENMARK/ WORLD BANK

Fiscal SWG1

MOF AND IMF

Affordable Housing Thematic GroupMOPWH AND WORLD BANK

JLCJoint Liaison Committee

Norway, World Bank, UNSCO, IMF, US, EUREP, EU Presidency

(Follow up on AHLC decisions and liaison with GoI)

1 The Fiscal SWG is supported by a Fiscal Task Force 2 Solid Waste Management Thematic Group 3 The Energy Group reports to the Infrastructure Strategy Group 4 The Elections group is a Working Group

Solid Waste Managt. Thematic Group2

MOLG AND GERMANY Humanitarian Task Force

MOPAD & UNSCO

Energy3 (PEA)

Micro and Small Finance TF

PMA AND USAID / UNRWA

Environmental SWG

EQA AND SWEDEN / UNDP

Source: Local Aid Coordination Secretariat

Figure 2.4.5 Aid Management Structure in Palestine

(1) Local Development Forum (LDF)

The LDF is open to PA representatives and all donor and aid agencies as well as to the representative of

the Association of International Development Agencies (AIDA). The LDF is co-chaired by the Ministry

of Planning and Administrative Development (MoPAD), together with Norway, the World Bank and the

Office of the United Nations Special Coordinator for the Middle East Peace Process (UNSCO). LDF

meetings are planned and prepared through meetings of the LDF co-chairs and friends of co-chairs. Since

October 2007 LDF meetings have been chaired by the Prime Minister.

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(2) Strategy Groups (SGs)

Four SGs deal with the main clusters of economic policy, governance, infrastructure development and

social development and humanitarian issues. The SGs focus on policy formulation and programmatic

coordination, and pursue better design of donor procedures. Membership is limited and based on clearly

added financial or analytical value of the respective agency. These four SGs are co-chaired as shown in

Figure 2.4.5. The SGs are supported by the work of 13 main sub-groups, namely 12 Sector Working

Groups (SWGs) and one working group, which report to the SGs. These are functional groups which are

the main instruments of coordination between the Palestinian Authority (PA) and the donor community at

the technical level.

Currently, Japan has memberships in LDF, three SGs including Governance SG, Infrastructure SG,

Social Development SG, and 10 sub-groups including Agriculture SWG, Fiscal SWG, Private Sector

Development and Trade SWG, Election Working Group, Water and Sanitation SWG, Environment

SWG, Municipal Development and Local Governance SWG, Affordable Housing Thematic Group,

Solid Waste Thematic Group, and Health SWG.

(3) Local Aid Coordination Secretariat (LACS)

The LACS supports local aid coordination structures in Palestine in providing coherent technical

assistance and financial support to the Palestinian people based on national priorities and in line with the

OECD-DAC Paris Declaration on Aid Effectiveness of 2005. The predecessor of LACS was established

in May 2002 as the Local Aid Coordination Committee (LACC) Secretariat and was co-chaired by

UNSCO and the World Bank. The LACS itself was created following a decision by the Ad-Hoc Liaison

Committee (AHLC) in December 2005. The LACS is responsible for ensuring that the various local aid

coordination bodies work smoothly together and increase aid effectiveness. LACS facilitates and

provides technical support to the work of the LDF, the four SGs and related SWGs and functions as the

secretariat of the Task Force on Project Implementation (TFPI). It promotes transparency and synergy by

serving as an information hub (e.g. by collecting and presenting information on on-going and envisaged

donor support, by providing and disseminating information on aid coordination activities, by

disseminating minutes of meetings, reports and other relevant information). For these purposes it

maintains the web portals for LDF and LACS, issues Daily Updates and a bi-weekly Newsletter2.

2 LACS Website: http://www.lacs.ps/article.aspx?id=1

Chapter 3 Present Condition and Development Issues in Palestine

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Chapter 3 Present Condition and Development Issues in Palestine

3.1 Public Financial Management

3.1.1 Present Conditions

PA has been approaching an austere fiscal policy and reform to improve its fiscal condition under such

political difficulties and unsteadiness. The fiscal situation came to a critical predicament in 2006 because

of the greater burden of expenditures for things such as social security, pension and so on. To overcome

such fiscal crisis, the PA started broader reform in public financial management in 2007 and its fiscal

conditions started on a gradual recovery trend after 2008. It, however, remains in the recurrent account

deficit which requires continued efforts on improving the public financial management in Palestine.

The following figure shows major fiscal indicators of PA since 2006. Total net revenues have increased

gradually, while it has been struggling in expenditure management. As a result, the total balance has been

improved but still it needs more effort.

-2,000

-1,000

0

1,000

2,000

3,000

4,000

2005 2006 2007 2008 2009 2010 2011 2012

Total netrevenues

Totalrecurrentexpenditures(commitmentbasis)Recurrentbalance(commitmentbasis)

Source: PCBS and IMF

Figure 3.1.1 Fiscal Situation 2005-2012 (USD million)

In terms of the general government balance, it is indisputable that most developed counties show a

marked deficit. On the other hand, average counties in the Middle East and North Africa (MENA)

achieved surplus in the balance in 2011, although several counties are facing deficits such as Egypt

(9.7%) and Lebanon (10.5%), and Jordan (6.7%) and Morocco (4.8%). Also there is a 3.2% deficit in

Israel. Comparing with these surrounding countries, the situation in Palestine looks more severe as it

reached 14% deficit in 2011.

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-30

-25

-20

-15

-10

-5

0

5

10

15

2005 2006 2007 2008 2009 2010 2011

Egypt

Jordan

Lebanon

Morocco

Palestine

Israel

MENA

Source: IMF

Figure 3.1.2 General Government Balance 2005-2011 (% of GDP)

Key features of public financial management in 2011 can be summarized as follows;

Overall: while expenditure is almost as planed in the 2011 budget, revenue declined considerably. At

the end, recurrent deficit exceeded the target of 11%. It is noteworthy that Palestine’s request to be a

member state of the United Nations in September 2011 affected to secure planned revenues.

Revenue: revenues in 2011 were substantially below the budget. Total tax revenues declined around

9% which was only 2% increased compared with 2010. Tax revenues declined 9% in the income tax,

6% increase in the VAT and 12% decline in the property tax. Clearance revenues were in good

condition, however, it was lower than its aggressive target due to Israel’s temporary suspension after

September.

0

500

1,000

1,500

2,000

2,500

2005 2006 2007 2008 2009 2010 2011 2012

Total netrevenues

Grossdomesticrevenues Taxrevenues

Nontaxrevenues

Grossclearancerevenues

Source: PCBS and IMF

Figure 3.1.3 Revenue Situation 2005-2012 (USD million)

Expenditures: expenditures in 2011 ended up below 0.5% with its budget which planned 4% rise

from 2010. The PA has reduced government spending and put more effort on operational cost such

as transportation, communication and allowances. On the other hand, the cost of wages continuously

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increased in 2011 and ended 1% over its budget. Net increase in number of government employees

was 2,010 in 2011 which was below its target of 3,000. The number of government employees

increased in the security and education sectors, on the other hand decreased in embassies and the

health sector.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2005 2006 2007 2008 2009 2010 2011 2012

Total recurrentexpenditures(commitmentbasis)

Wageexpenditures

Non-wageexpenditures

Net lending

Source: PCBS and IMF

Figure 3.1.4 Revenue Situation 2005-2012 (USD million)

Looking at 2012, according to the Fiscal Sector Working Group (FSWG), it is predicted that the 2012

will be the most challenging year compared with the past experiences because of the huge fiscal gap. The

budget is designed by pulling in expenditures, however, the fiscal gap reaches USD 1,000 million.

Although it is planed that around 60% of the fiscal deficit would be covered by Donor support and the

remaining would be compensated by the private sector, mainly from the commercial banks, the lending

from banks is already reaching the ceiling which will induce a sense of crisis among stakeholders. It was

also indicated by MoF during the interview survey that PA’s fiscal situation would be easily affected by

external factors since PA has been highly dependant on external financial support because of limited

self-financing by PA. It is essential to PA to decrease such dependency on external financial support and

strengthen solid public financial management.

It is a concern that the crisis would affect badly in institutional building achieved by PA if the crisis on

institutional building in PA institutions is protracted. Not only the effort by the government side is needed,

it is also expected that significant growth in the private sector, which would support a robust economy and

improve government revenues will be needed.

3.1.2 Priority Issues

(1) Ensure own revenue sources

It is essential for PA to secure its own revenue sources to reduce dependency on external financial support

to secure stability in its fiscal condition by accelerating related law and regulation reform, strengthening

tax collection, preventing tax evasion, promoting awareness building to citizens, reforming the

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accounting system, and so on. It is also crucial to vitalize the private sector which would be a significant

tax revenue source for PA.

(2) Further strengthening of the property tax system

To expand the property tax system throughout all LGUs in PA, it is expected to be necessary to achieve

institutionalization of the management and monitoring system of the property tax and also implement

further capacity building of MoF, MoLG and LGUs to realize an effective and efficient system.

(3) Enhance public expenditure management

Further efforts on reducing wage and pension payments in the public sector and reforming the public

procurement system to manage public expenditures appropriately are necessary for PA. This would

contribute to increase the stability of PA’s fiscal condition and to decrease its dependency on external

financial support.

3.2 Local Governance

3.2.1 Present Conditions

1) Overview of Local Governance

To develop a local governance framework has been the central issue in the governance sector since the

PA was established in 1994. In the same year, the Ministry of Local Government (MoLG) was

established taking responsibility on the local governance system in Palestine to supervise Local

Government Units (LGUs) which spread to small and rural villages and the total number of LGUs

reached 513 in 1994. According to the Local Authorities Law which was amended in 1997, the LGUs

were divided into four categories by size: Municipalities, Village Councils, Project Committees and

Local Councils.

The PA has put effort to strengthen local governance system by amalgamating small LGUs especially the

Village Councils and Project Committees. Table 3.2.1 shows the number of LGUs has been reorganized

into 405 in total as of March 2012 since it was 459 in 2009. Likewise, compared with 1994 situation, PA

achieved around 20 percent integration of LGUs so far.

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Table 3.2.1 Number of Local Government Units

LGUs (population size) 2009 2010 2011 Mar 2012

Municipalities 5,000 and above 96 98 122 122

Village Councils Less than 5,000 238 213 215 219

Project Committees Very small communities 113 69 67 52

Local Councils 12 12 12 12

Total 459 392 416 405 Source: MoLG

In the Local Authorities Law, in total 27 services and administrative functions are the responsibilities of

LGUs. These services and functions contain wide issues on infrastructure, economy, society, culture and

health.

Table 3.2.2 List of Public Services According to the Law

No. Services and Functions

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

Town planning Street construction, rehabs, paving, and roads Street names and numbering Sidewalks Street lighting Public transport stands and terminals Water supply Electricity supply Sewer system Waste water treatment Public lavatories Solid waste collection and disposal Solid waste treatment Fruit and vegetable markets Public parks Social assistance programs Sports facilities Libraries Museums and culture Regulation, control and monitoring Cemeteries Schools Health centers Slaughterhouses Fire fighting Transit management (traffic lights, signs, meters, and others) Other (the law explicitly allows for other functions)

Source: the Local Authorities Law 1997

However, while the LGUs are trying to provide public services to their citizen, in fact only some large

municipalities are able to provide multiple services. According to the World Bank, only five of these

services and functions are being provided: i) solid waste collection, ii) street/road maintenance, (iii) water

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supply, (iv) street lighting, and (vi) school maintenance. The first three services are provided by at least

80% of the municipalities, while the last two are provided, in some proportion, by at least half3.

To extend public services into small and rural villages, the Joint Services Councils (JCs) were established

by the Local Authorities Law which are the clusters of small government units and provide their services

jointly. As of 2011, there were 56 JCs in the West Bank. According to MoLG, most of the JCs are still

single-function units to provide solid waste management to citizens and most of them need to enhance

their capacity institutionally and fiscally to provide more variety of services.

The revenue framework in local governance is also a target to be enhanced by PA. According to the

Palestinian National Plan 2011-2013, the municipalities’ local revenues have increased since 1998: USD

188 million in 1998, USD 874 million in 2007, and USD 1,276 million in 2008. Regarding the sources of

local revenues, LGUs have mainly three sources, such as user charges, local taxes and fees. As reported

by the World Bank, break down of these sources in 2010 is as follows; (i) User charges: electricity (36%),

water (14%), and solid waste collection (2.9%), (ii) local taxes: the property tax (4.44%) and the

education tax (2.3%), and (iii) fees: building licenses (4.23%) and registration of vehicles/transport fees

(3.22%). However, it is also indicated that local revenues show large variations among LGUs and most

small LGUs are struggling to secure their revenues.

2) Solid Waste Management by LGUs

As shown in Figure 3.2.1, solid waste production in Palestine was 2,728.3 tons in 2005 (4.6 kg per

household) which increased slightly to 2008 and then declined from 2009 to 2011, with the 2011

production being 2,151.9 tons (3kg per household).

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

0

500

1000

1500

2000

2500

3000

3500

2005 2006 2008 2009 2011

Total daily producedquantity (Ton)

Average household dailyproduction (kg)

Remarks: Data for 2007 and 2010 are not available

Source: PCBS

Figure 3.2.1 Solid Waste Production (2005-2011)

3 World Bank, Municipal Finance and Service Provision, 2010.

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Most solid waste in Palestine is produced in urban are 1,574.7 tons (73.2%) (Figure 3.2.2). Additionally

Figure 3.2.3 shows services providers of solid waste collection for households. The service provided by

local authorities was 68.9% in 2005 and improved to 74.5% in 2011. On the other hand, the share of

private contractors is quite small and which have been declined further from 1.4 % in 2005 to 0.8% in

2011. It is necessary to call more promotion to invite private sector into the solid waste management to

provide such service more efficiently and effectively.

Source: PCBS

Figure 3.2.2 Regional Origin of Solid Waste in 2011 (%)

Remarks: Data for 2007 and 2010 are not available Source: PCBS

Figure 3.2.3 Service Providers of Solid Waste Collection (%) (2005-2011)

Solid waste disposal by households not served by any solid waste collection service is mainly by

throwing into the nearest container and about 20% of such households burn the waste themselves (Figure

3.2.4) .

0

20

40

60

80

100

2005 2006 2008 2009 2011

Others

Thrown randomly

Thrown into a dumping site

Burned

Thrown in the nearestcontainer

Remarks: (i) Data for 2007 and 2010 are not available, (ii) “Nearest container” is located outside of the household area. Households in around 80 % of West Bank are located 500m or more from the containers.

Source: PCBS Figure 3.2.4 Disposal methods of Solid Waste by Households not served

by collection service in Palestine (2005 – 2011)

0

20

40

60

80

100

2005 2006 2008 2009 2011

Others

Private contractor

UNRWA

Local authority

Household member

Urban73.2%

Rural 18.9%

Camps7.9%

Total2151.9 tons

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As mentioned above, solid waste collection is one of the public services provided by most of the LGUs

through the form of JCs. Currently MoLG has continued their work on transferring the solid waste

collection service from the local councils to the JCs.

Services provided by JCs differ by their size and capacity. Some JCs operate and manage landfills and

some provide the first and/or the second collection of solid waste. According to MoLG, cover ratio by JCs

on solid waste management has been improved recently reaching a 90% collection ratio in service areas

in each JSC. Recent achievements regarding to the solid waste management by JCs are summarized as

follows4 (Table 3.2.3).

Table 3.2.3 Solid Waste Collection by Joint Service Councils 2011 JCs Jenin Hebron Jericho Salfit Bethlehem Ramallah and

Al-BirehTubas Tulkarem Qalquilyah Nablus

No. of LGUs &Localities in theGovernorate

71 85 12 20 44 74 18 34 40 61

Population inGovernorate

281,156 620,417 46,718 63,148 194,095 310,218 54,766 168,973 100,012 348,023

No. of LGUs &Localities Servedby JC

68 6 16 20 23+2(camps)

49 9 21 20 12

Population ofLGUs &Localities inService Area

257,174 70,638 58,134 63,148 133,487 186,525 44,747 44,906 82,103 32,871

Covering Ratioto theGovernoratePopulation

91% 11% 124% 100% 69% 60% 82% 27% 82% 9%

Collation Ratioin Service Area

90% 88% 90% 90% 95% 90% 90% 90% 90% 90%

Actual ServicePopulation by JC

231,457 62,161 52,321 56,833 126,813 167,873 40,272 40,416 73,893 29,584

CollectionAmount (t/day)

204.7 46 45.0 53.5 108 170 32.3 30.1 67.5 22.7

Per CapitaWaste DischargeAmount (g/c/d)

885 740 860 941 852 1,010 801 744 913 767

Source: MoLG

Regarding the solid waste management by JCs which is the major revenue source of LGUs, their

financial situation has been improved in the last two years (Figure 3.2.5). In 2010, most of the JCs out of

the 10 in the West Bank achieved surplus in balance at the end. It is targeted by all JCs to make their

revenue surplus stable by 2015.

4 According to MoLG, the JSC for Jerusalem area has stopped their function due to problems between the local councils and the JSC.

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-4,000,000

-2,000,000

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Revenue (2010)

Expenditure (2010)

Balance (2010)

Source: MoLG

Figure 3.2.5 Financial Situation of the Solid Waste Collection by Joint Service Councils (JCs) 2010 (NIS)

3.2.2 Priority Issues

(1) Accelerate amalgamation of LGUs

It is important to promote amalgamation of LGUs to reform the local governance system in PA and to

support LGUs to be able to provide public services. To support capacity building of municipalities and

also small LGUs is essential in the process of amalgamation to avoid leaving small and marginalized

LGUs behind.

(2) Strengthen LGU’s capacity on public service provision

To overcome several limitations such as access and movement, and the unstable political situation

especially those that small and rural LGUs are facing, capacity building of LGUs is necessary to make

them vital LGUs in rural areas.

3.3 Education

3.3.1 Present Conditions

(1) Present Conditions

To prepare children and youth for a fulfilling life and productive work in Palestine, the consciousness of

the Palestinian people on education is generally high. About 27.8% of the national budget is allocated to

the Ministry of Education. However the education environment is not really corresponding to the needs,

especially in the Gaza Strip, due to various reasons including political problems. In addition, the

separation wall and the inspections at checkpoints cause tardiness of students and teachers in East

Jerusalem and C areas. For this reason, it is difficult to secure the appropriate hours for education classes

and this has cause a negative impact on the quality of education.

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To respond to changes in society such as the rising student population, developments are being continued

in this sector to better its environment. Also in higher education, in order to develop human resources to

adapt to the needs of the labor market, a more fulfilling educational environment is highly desired. On the

other hand, under the financial difficulties of the Palestinian Authority in recent years, securing the

development budget has become one of the serious issues.

1) Primary and Secondary Education

There are two ministries with jurisdiction over the education sector. Primary and secondary education are

governed by the Ministry of Education.

a) Status of Basic and Secondary Education

In Palestine, primary education is divided into two levels, lower basic education (1–4 grades) and higher

basic education (5–10 grades). In 2000, the primary school enrolment rate (net %) was 89.8%. This was

higher than the average of the MENA region, which was 84.8% and it is almost equal to the rates of

Egypt and Jordan. While the net enrolment rates were nearly flat or increasing in the neighboring

countries since 2000, the Palestinians’ rate shows a tendency of decrease and it was 79.8% in 2005. The

Second Intifada in 2000, movement restrictions and curfews after the intifada are considered as the cause

of this enrolment rate decrease. As of 2009, the primary school net enrolment rate has recovered to 85.6%

but it is still lower than the rate before the second intifada. In comparison with neighboring countries in

2009, the rate of Palestine is slightly low; while it is about 95.8% in Egypt, about 96.9% in Israel, and

about 88.8% in Lebanon.

70

75

80

85

90

95

100

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

%

Year

PSE EGY ISR

JOR LBN SYR

LMC MEA

Remarks: Net enrollment ratio is the ratio of children of official school age based on the International Standard Classification of

Education (ISCED 1997) Source: World Bank

Figure 3.3.1 School Enrolment, Primary (% net)

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Regarding the primary school gross enrolment rate, it has the same tendency as the net enrolment rate.

Since the second intifada at 2000, it decreased until around 2005 and then tended to increase in recent

year. However the gross enrolment rate has still not recovered to the same rate as before 2000 and it is

slightly lower than the average of gross enrolment rate in the MENA region.

60

70

80

90

100

110

120

130

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

%

Year

PSE EGY ISR

JOR LBN SYR

LMC MEA

Remarks: Gross enrollment ratio is the ratio of children of official school age based on the International Standard Classification of

Education (ISCED 1997) Source: World Bank

Figure 3.3.2 School Enrolment, Primary (% gross)

Table 3.3.1 shows the gross enrolment rate in basic education by gender5. In recent years, the female net

enrolment rate in primary education has been higher than males’, 97.7% for females while 92.4% for

males in 2011. Regarding the transition of the net enrolment rate since 2009, the girls’ enrolment rates are

almost flat while the boys’ tend to slightly decrease.

Table 3.3.1 Gross Enrolment Rate in Basic Education (%)

Indicator 2009 2010 2011

Male Female Total Male Female Total Male Female Total GER

93.6 97.9 95.7 93.1 97.2 95.1 92.4 97.7 95.0 Source: MoE

Table 3.3.2 shows the retention rate in the 10th grade. This is calculated based on the number of the 10th

Grade students and the number of the students entering 1st grade. Compared with the enrolment rate of the

primary education, the enrolment rate of the secondary education is low. This shows some of students

drop out before 10th grade.

5 The indicator includes students at schools in Jerusalem supervised by the Israeli municipality (Table 3.3.1 to 3.3.3)

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Table 3.3.2 Student Survival Rate for Grade 10 (%)

Indicator 2009 2010 2011

Male Female Total Male Female Total Male Female Total Retention rate 77.4 90.7 83.9 76.4 88.2 82.2 77.8 90.4 84.0

Source: MoE

In Palestine, the secondary education represents 11–12 grades and enrolment age is 16–17 years. School

gross enrolment rate of secondary schools is relatively high compared with neighboring countries.

However, the enrolment rate of secondary schools is lower than the enrolment rate of primary schools.

Table 3.3.3 shows the education continuance rate. This is calculated based on the number of the student

enrolled in secondary education and the number of the students enrolled in 10th grade.

Table 3.3.3 Students Continuing from Basic Cycle to Secondary Cycle (%)

Indicator 2009 2010 2011

Male Female Total Male Female Total Male Female Total Education continuanc

e rate 84.9 92.4 88.8 84.2 92.3 88.5 85.8 93.1 89.6

Source: MoE

Table 3.3.2and Table 3.3.3 show that 25% of school aged children (33% of school aged boys and 16% of

school aged girls) do not go on to secondary cycle in the West Bank including East Jerusalem (2011). The

drop out rate of school aged children tends to increase around the 8th grade (13 years) of higher basic

education. About 4% of boys have dropped out after the 8th grade because they have to be in the labour

force to help their parents survive and / or they have a shortage of academic ability. Regarding the girls,

the main reason that 5% have dropped out after the 8th grade is because of marriage. The same trends of

drop out rates are observed over the entire West Bank including East Jerusalem. Particularly in East

Jerusalem, social issues such as drug use are causing the dropout rate increase in some cases, but its ratio

is currently low. By contrast, in Gaza Strip, the most of the school dropouts is because of poverty.

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30

40

50

60

70

80

90

100

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

%

Year

PSE EGY ISR

JOR LBN SYR

LMC MEA

Source: World Bank

Figure 3.3.3 School Enrolment, Secondary (% gross)

Figure 3.3.4 show the Literacy rate of people ages 15 and above. Literacy rate in Palestine, on the other

hand, is higher than neighboring countries.

55

60

65

70

75

80

85

90

95

100

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

%

Year

PSE EGYJOR SYRLMC

Source: World Bank

Figure 3.3.4 Literacy Rate, Adult Total (% of People Ages 15 and Above)

b) Education Administration

In Palestine, three main bodies supervise school education, such as the Government, the United Nations

Relief and Works Agency (UNRWA) and private sectors. UNRWA supervises schools enlisting

Palestinian refugees throughout the West Bank and Gaza Strip. Schools founded by UNRWA are in the

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second rank after governmental schools. Charitable associations, religious communities and individuals

supervise private schools.

The schools in Jerusalem are divided into four categories based on the managing organizations. The

categories are schools that are supervised by Jerusalem Municipality, Waqf6, UNRWA or that are private.

All schools in the province of Jerusalem including East Jerusalem, regardless of the different regulatory

organizations, have been registered in the Jerusalem municipality of the Israeli side.

Table 3.3.4 shows the percentage of students in Jerusalem supervised by the Palestinian Authority. A total

of 62.9% of students in schools registered in the Jerusalem municipality have been enrolled in a school

supervised by Waqf, UNRWA or a private entity under the supervision of the Palestinian Authority. These

students have been educated along the Palestinian education guidelines using the textbooks of Palatine.

Table 3.3.4 Students in Jerusalem S ( ((upervised by the Palestinian Authority

Indicator 2009 2010 2011

Male Female Total Male Female Total Male Female Total NER

63.4 62.0 62.7 62.9 61.8 62.3 63.8 62.0 62.9Source: MoE

The numbers of schools in 2012 are; public schools supervised by Government represent 2,004,

UNRWA schools represent 341 and private schools represent 359. Table 3.3.5 shows the number of

schools in West Bank and Gaza Strip in year 2011- 2012.

Table 3.3.5 Number of Basic & Secondary Schools 2011-2012

West Bank Gaza Strip

Boys 612 183

Girls 616 176

Both sexes 379 38 Government

Total 1,607 397

Boys 30 10

Girls 24 6

Both sexes 257 32 Private

Total 311 48

Boys 35 110

Girls 48 50

Both sexes 15 83 UNRWA

Total 98 243

Boys 677 153

Girls 688 232

Both sexes 651 303

Number of schools

Total

Total 2,016 688 Source: Study Team based on Ministry of Education and PDBS; Education Statistics

6 The Waqf hajurisdiction of the schools which were built before the establishment of Palestinian Authority.

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c) Education funding

The total education budget is allocated to The Ministry of Education and the Ministry of Higher

Education by the Ministry of Finance. According to the Ministry of Education, about 60% of the total

budget for the education sector is allocated to the Ministry of Education.

The budget allocated to the MoE by the Ministry of Finance is distributed according to the four priority

issues in the education sector. The priorities issues are as follows.

1st Improvement of access to schools, construction of school buildings to

accommodate the increase in school aged children

2nd Improvement of the quality of school education (including management, nutrition)

3rd Curriculum development, capacity development of teachers

4th Further development in the education sector

At present, the budget has allocated to the construction of school buildings which is a first priority issue

and there is not sufficient budget for further development.

There are other main expenditures such as salaries for teachers and the implementation cost of the

national common examination which has become a burden on education funding.

The Salaries for teachers who have an ID card that allows them to teach in East Jerusalem are a large

expenditure. In Israel, the salaries for teachers are quite high. In order to keep the teachers who have an ID

to teach in East Jerusalem, the salaries for them are from 2,500 to 3,500 Nis per month per person on

average.

The General Secondary Examination (TAWJIHI) is conducted over two months including the

preparation period and it costs approximately 11,000 NIS.

d) Education Environment and Quality of Education

Table 3.3.6 shows the number of Basic & secondary Classes and Students. In the West Bank, there are

19,140 Government classes, this is approximately 12 times of UNRWA classes. On the other hand, there

are 6,218 Government classes while 5,935 UNRWA classes, the difference of class numbers is not huge.

Regarding student’s numbers, government students represent 540,021, almost 10 times UNRWA’s. The

difference of student’s numbers per class between the West Bank and the Gaza strip is not significant.

The number is about 28 in the West Bank while about 36 in Gaza Strip

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Table 3.3.6 Number of Basic & Secondary Classes and Students 2011-2012

West Bank Gaza Strip

Government 19,140 6,218

Private 3,512 679

UNRWA 1,583 5,935

Number of Classes

Total 24,199 12,832

Boys 265,775 109,651

Girls 274,246 120,022Government

Total 540,021 229,673

Boys 46,728 9,910

Girls 33,657 5,769Private

Total 80,385 15,679

Boys 21,988 113,218

Girls 30,579 104,621UNRWA

Total 52,567 217,839

Boys 334,491 232,779

Girls 338,482 230,412

Number of students

Total

Total 672,973 463,191Source: Study Team based on Ministry of Education and PDBS; Education Statistics

According to the Ministry of Education, the education facilities and the number of classes are not

sufficient especially in Gaza Strip. Some general and rental buildings are utilized instead of education

facilities. These rental buildings are not sufficiently equipped for the curriculum of education. Some

schools need to introduce a double shift system.

Table 3.3.7 shows the Trends of the scores in International Mathematics and Science Study (TIMSS) in

eighth grade. TIMSS is an international assessment of the mathematics and science knowledge of fourth

grade and eighth grade students around the world. Initial TIMSS was carried out in 1995 and it is

conducted every four years. Palestine has participated in TIMSS since 2003. The participation fee is as

high as USD 230,000 per academic grade and subject. In case the increasing the number of target grade

and subject it must pay an additional fee. The score of TIMSS in Palestine was 367 for mathematics and

404 for science in 2010. Both lower than neighbouring countries due to the lack of comprehensive

education environment with adequate facilities, equipment, teaching method and etc.

Table 3.3.7 TIMSS Score, 2007

TIMMS the world criteria: 500

Palestine Israel Jordan Egypt Lebanon

Mathematics 367 463 427 391 449TIMSS- eighth grade Male and Female average Science 404 468 482 408 414

Source: NDP2011-2013, IEA TIMMS Report 2011

In 2003, Palestine was ranked third in the Arab countries and 37th among the 46 participating countries.

However, Palestine was demoted in its ranking in 2007 to 43rd position among 49 participated countries

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under the influence of the general election held in 2006. The MoE instituted a unified national high school

examination system in 2009 and they are working to review the quality of education

Teacher quality, motivation and leadership are prerequisite for high quality education. About 72% of

Palestinian teachers in the West Bank do not meet the professional standards set by the Teacher

Education Strategy. Improving the quality of teachers including the teaching methods is highly desired.

(2) Higher Education and Technical and Vocational Education and Training (TVET)

Higher education and technical and vocational education and training after 12th grade are governed by the

Ministry of Higher Education.

1) Status of Higher Education

In the environment for higher education, about 40% of the total budget for the education sector is

allocated to the Ministry of Higher Education. However, it tends to lack facilities and equipment. The

teaching methods are not sufficiently rich to adapt to labor market needs in order to address graduate

unemployment and strengthen Palestine’s economy. Employment opportunities are also limited in

Palestine. Therefore Boys tend to go to college abroad and they may stay abroad and join the labor force

and not come back to Palestine for some cases. On the other hand, the number of girls enrolled in college

is showing growth in recent years. As shown in Figure 3.3.5, the enrolment rate in Higher Education

Institutions (HEI) of females is higher than the rate of males.

16,710

3,046 2,174

9,578

11,832

3,167 2,380

7,130

Traditional Universities University Colleges Community Colleges Open University

Female Male

Source: MoHE, Palestinian Higher Education Statistics 2010/2011

Figure 3.3.5 Distribution of Newly Enrolled Students at HEI by Gender 2010/2011

In general, tertiary school gross enrolment rate tends increase, and this trend is consistent with trends in

neighboring countries. In Palestine, tertiary school gross enrolment rate is 50.2% (2010) while was 28.1%

in MENA regions (2009). The Palestinians tertiary school enrolment is relatively high in comparison with

neighboring countries. Figure 3.3.67 shows tertiary school enrolment rate.

7 Gross enrollment ratio is the ratio of students of official school age based on the International Standard Classification of Education (ISCED 1997)

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10

20

30

40

50

60

70

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

%

Year

PSE EGY ISR

JOR LBN SYR

LMC MEA

Source: World Bank

Figure 3.3.6 School Enrolment, Tertiary (% gross)

In Palestine, there are 4 different HEI8 such as Traditional Universities, University Colleges, Community

Colleges and Open Universities. In addition, these institutions are divided depending on the managing

organization; governmental institutions supervised directly by the government, public institutions

founded before the establishment of Palestinian Authority, private institutions and institutions under

UNRWA. In Palestine, there are 49 institutions in total, in which 35 institutions are in the West Bank and

14 institutions are in Gaza Strip. Table 3.3.8 shows the number of HEI.

8 Traditional Universities: Universities qualified by AQC, possible to obtain Baccalaureate degrees (BA or BSC) and Master’s degree

University Colleges: possible to obtain Baccalaureate degrees (BA or BSC) and Diploma Community colleges: possible to obtain Diploma Open University: possible to obtain Baccalaureate degrees (BA or BSC) and Master’s degree

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Table 3.3.8 Number of Higher Education Institutions 2010-2011

West Bank Gaza Strip

Government 1 1

Public 5 2

Private 2 2

Traditional Universities

Total 8 5

Government 5 4

Private 3 1

URWA 2 0

University Colleges

Total 10 5

Government 2 1

Public 7 0

Private 7 2

UNRWA 0 1

Community Colleges

Total 16 4

Open University Total 1 0

Number of institutions

Total 35 14Source: MoHE, Palestinian Higher Education Statistics 2010/2011

2) Status of TVET

The unemployment rate of graduates of higher education is as high as 23% in Palestine. Reviewing and

revising the higher education system so as to accommodate labor market needs is necessary. On the other

hand, employment opportunities are limited in Palestine. Thus, in parallel with vocational training for

students, it is also desired to initiate entrepreneurial training because the MoHE is implementing

vocational training curriculum in collaboration with the private sector and universities and supporting the

implementation of the entrepreneurial program at the HEI. An entrepreneurial program has been started at

the Tulkarem, the first graduates have not come out yet.

There are some limitations in the financial aspects and human resources to develop the vocational training

curriculum and entrepreneurial programs. Thus, the development of the network among existing HEIs is

on going to share the part of the required curriculum and programs depending on the specialities of each

institute instead of covering them all at one HEI.

For the implementation of these new projects, it is necessary to get approval from the Accreditation and

Quality Assurance Commission (AQAC) under the MoEHE. If a new project contributes for

improvement of the quality of higher education and it has a sustainability including the funding resource,

the project can get an approval for its implementation. Usually it requires between 2 and 6 months

between submission of application and getting approval

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3.3.2 Priority Issues

(1) Secure education budget

In order to maintain proper school management and education, ensuring stable and sustainable budget for

operation and maintenance of education facilities and equipment is essential. Moreover, it is important to

secure the budget for teachers’ salaries because the quality and motivation of teachers are indispensable

for keeping a good quality of education. Regarding the quality of education, it is also required to

continuing the implementation of the General Secondary Examination (TAWJIHI) and the participation

in TIMSS even they are expensive. Securing stable education budget is one of the important issues in the

education sector.

(2) Upgrading school environments in primary and secondary education

Some general purpose buildings are still being utilized instead of dedicated education facilities. A double

shift system and triple shift system have also been introduced. In some cases, one classe room is shared by

two different grades and it causes lack of appropriate educational class hours. The number of school

children under the age of 15 has increased rapidly. It is necessary to continue the implementation of

development of the primary and secondary education environments.

(3) Improvement of education quality

To secure education quality, improvement of teaching method and teacher quality are key issues. The

quality of education and the school children's motivation for study in basic education can affect the rate of

enrolment in higher education. Therefore, it is required to strengthen cooperation between basic education

and higher education regarding the quality and objectives of education.

(4) Improvement of education quality

TVET is essential to reduce youth unemployment and to stabilize the economic and social growth.

Actually, there is a gap between the higher education and market needs and it is necessary to take

measures to fill this gap. Improvement of the higher education environment, introducing technical

education and cooperation with private companies are required in the higher education sector. In addition

to vocational training, the entrepreneurial training is also an important issue while the employment

opportunities are limited in Palatine.

3.4 Health

3.4.1 Present Conditions

The health environment in Palestine has been improved recently with the huge contribution by donors

such as Japan, Spain and Italy. Non-governmental organizations and private sectors also contributed

significantly as well as equipment provision, transfer of technology and hospital construction. On the

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other hand, the number of health facilities is insufficient in Gaza Strip and Area C because medical

facilities construction can not proceed due to the construction regulations. In addition, movement

restrictions and separation walls are causing difficulty of access to the medical services. In Gaza Strip,

medical equipment and medicines are seriously lacking.

Regarding the number of health staff, it is relatively sufficient compared to international standards by

WHO. However, specialists in the tertiary health care level are insufficient. The patients who can not be

treated in Palestine need to be treated in neighboring countries, mainly Israel. Costs to other countries

have to borne by the Ministry of Health and these costs have put pressure on health financing.

(1) Health Status

The fertility rate was down to 4.2 in 2007 compared to 5.6 in 1997. In Gaza Strip, it was 5.4 in 2007

compared with 6.9 in 1997. In 2010, the total fertility rate in Jordan was 4.2, 3.6 in Egypt and 4.0 in Israel.

In comparison with neighboring countries, the fertility rate in Palestine at 4.2 is relatively high.

Figure 3.4.1 and Figure 3.4.2 show the Mortality rates for infants and for children under-5 (per 1,000 live

births). In Palestine these mortality rated have decreased slowly this is almost the same trend as Jordan

and Lebanon. In 2010, both mortality rates were slightly higher than the other neighboring counties

except for Israel and Syria; The infant mortality rate in Palestine was 20.1, while 18.6 in Egypt, 18.4 in

Jordan and 18.8 in Lebanon. Under-5 mortality rate in Palestine was 22.3, while 21.8 in Egypt, 21.7 in

Jordan and 22.1 in Lebanon. In comparison with Israel, both mortality rates in Palestine are about five

times more than Israel’s (infant: 3.6, under-5:4.5) Regarding the mortality rate in Gaza Strip, it began to

increase in 2000 since the beginning of the second intifada, it tended to decrease since around 2004.

Regarding the mortality rate in the Gaza Strip, it has increased after the second Intifada in 2000, but it has

tended to decrease gradually since 2004.

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0

10

20

30

40

50

60

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

No.

per

1,0

00 li

ve b

irths

Year

PSE EGYISR JORLBN SYRMEA West BankGaza

Source: World Bank

Figure 3.4.1 Mortality Rate, Infant (per 1,000 Live Births)

0

10

20

30

40

50

60

70

80

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

No.

per

1,0

00 li

v bi

rths

Year

West Bank GazaPSE EGYISR JORLBN SYRMEA

Source: World Bank, Palestinian Central Bureau of Statistics

Figure 3.4.2 Mortality Rate, Under-5 (per 1,000 Live Births)

The average of malnutrition prevalence in 2011 was about 22‰ and it is under the average of MENA. On

the other hand malnutrition prevalence in Israel is about 9.5‰, the value in Palestine is more than twice

that in Israel9. Figure 3.4.3 shows the malnutrition prevalence, weight for age, (% of children under 5).

According to the figure, Palestinian malnutrition prevalence is 2.2 (2007), while 1.9 in Jordan (2009) and

1.1 in Syrian (2009), it is higher than Syria and Jordan, lower than Egypt and Lebanon; twice as Syria,

one third of Egypt, almost same as Jordan in detail.

9 World Bank Report 2012, UNESCO (2012) White Paper

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2.2

6.8

1.9

4.2

1.1

24.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0

PSE

(2007)

EGY

(2008)

JOR

(2009)

LBN

(2004)

SYR

(2009)

LMC

(2010)

Perc

ent

of

child

ren u

nder

5

Country

Source: World Bank

Figure 3.4.3 Malnutrition Prevalence, Weight for Age (% of Children under 5)

Anemia prevalence in mothers and children is still high. The percentage of anemia among children

screened at the age of 9 months is 42.2%, 27.9% for pregnant women and 23.0% for mothers in the

postnatal period.

Average population growth rate is about 2.8%. The population under age of 15 represents about 41.1%,

and about 2.9% are over age of 65 in the total population. Figure 3.4.4 shows life expectancy at birth of

both sexes. Life expectancy reached 72.6 years old in year 2010. In comparison with neighboring

countries, life expectancy is 81.5 years old in Israel, 73.3 in Jordan and 72.4 in Lebanon. The life

expectancy at birth in Palestine is almost the same as the average value of the neighboring countries and

the life expectancy is mildly increasing.

72.6 73.0

81.5

73.3 72.4

75.7

65.4

72.5

60

65

70

75

80

85

PSE EGY ISR JOR LBN SYR LMC MEA

%

Country Source: World Bank

Figure 3.4.4 Life Expectancy at Birth, 2010

Diseases which are causes of mortality are mainly cardiovascular disease (25.4%), Cerebrovascular

disease (12.1%), cancer deaths (10.8%), respiratory system disease (8.4%), conditions of infant diseases

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and prenatal conditions (7.3%), diabetes mellitus (5.7%), and senility (3.9%). Geriatric diseases become a

major cause of death. There are several factors that cause chronic or non-communicable diseases such as

the stressful life under the occupation, poverty and unemployment and transitions in food consumption

patterns. Infectious disease represents only 3.5 % of the main cause of morality due to the successful

implementation of immunization. Recently, the prevalence of diabetes, which is the sixth leading cause of

mortality, has tended to increase. In 2010, the number of trips to diabetic clinics in primary health care

was 16,570 in which 2,509 were new patients with diabetes mellitus. A total of 89.2% of patients

registered in diabetic mellitus in 2010 were above 35 years of age.

Not only among adults but also in children, heart disease, diabetes and cancer become relatively serious

issues. Although the prevalence is lower than among adults, 46.8% of public school students who have

chronic disease are Non-Communicable Diseases (NCD). (Figure 3.4.5)

532

412

163

455

386

319

47 50

Heart Disease Diabetese Cancer Asthma Epilepsy Rheumatic Thalassemia Hemophilia

Source: MoEHE, The Public Management for school health 2010-2011

Figure 3.4.5 Chronic Diseases for Public School Students for the 1st Semester from the School Year 2010/2011

According to MoH, the incidence of psychotic disorders per 10,000 persons was 28.8 persons in the West

Bank, 83.9 in the Gaza Strip and 188.2 in Rafah in the Gaza Strip. Many Palestinians suffer physical

disabilities and/or post-traumatic disorder stress due to the conflict.

(2) Health Facilities

There are 816 Primary Health Care (PHC) facilities of which 669 are in the West Bank and 147 are in the

Gaza Strip. The PHC have been divided into four levels depending on the adequacy of the facilities, such

as the presence or absence of resident physicians. Some of the HC have limited consultation days. The

population per PHC was 3,857 per facility in the West Bank and 10,442 for the Gaza Strip.

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Table 3.4.1 Distribution of PHC Facilities by Health Provider, 2011

Provider No of Population MOH NGOs UNRWA PMMS10

Total Population per Centre

West Bank 2,580,167 404 140 41 16 669 3,857

Gaza Strip 1,588,691 54 66 20 7 147 10,442

Total 4,168,858 458 206 61 23 816 4,961Source: MoH Health Annual Report Palestine 2011, PHIC

Table 3.4.2 shows the number of trips to a primary health care facility in 2010. The total number of visits

is 1,349,461. The total number of Palestinian population in 2010 is 4,048,403. In simple comparison with

this number of population, approximately one in three people have received the primary health care

service in 2010.

Table 3.4.2 Number of Visits to a Primary Health Care Facility, 201011

Classification No of visits

General clinics in primary health care 1,184,785

Specialized clinics in primary health care 157,904

Dental clinics in primary health care 6,772

Total 1,349,461 Source: Study team basd on information from MoH12

Regarding the secondary and tertiary facilities, there are 76 hospitals in which there are 4,878 beds in total

for secondary and tertiary care in Palestine. This includes 6 distinguished East Jerusalem hospitals13.

Table 3.4.3 Distribution of Hospitals by Provider, 2011

West Bank Gaza Strip Total Provider

Hospital Beds Hospital Beds Hospital Beds

MoH 12 1,352 13 1,567 25 2,919

UNRWA 1 63 1 63

NGOs 20 1,272 8 492 32 1,764

Private 18 476 2 28 20 504

PMMS 3 164 3 164

Total 51 3,163 30 2,251 81 5,414Source: MoH Health Annual Report Palestine 2011, PHIC

According to Table 3.4.1 and Table 3.4.3, the population per hospital in the West Bank is approximately

50,592, while approximately 52,956 in the Gaza Strip. Numbers of beds per 10,000 populations are 12 in

the West Bank and 14 in the Gaza Strip. In comparison with the neighboring countries, Israel and

Lebanon have about 35 beds for 10,000 populations, about 18 beds for Jordan and about 17 beds for Egypt.

The adequacy of medical equipment in Palestine is relatively low compared to neighboring countries.

10 PMMS:Palesinian Militaly Medical Services 11 The number of visits is the total number of people who visited each clinic. 12 MoH, http://www.moh.ps/?lang=1&page=4&pid=122 13 Figures include the number of beds and the number of the hospital in East Jerusalem.

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Segregation and road closures cause difficulty accessing health service, especially in Gaza Strip. In the

West Bank, construction of facilities is limited in C areas and around separation barriers. It is difficult to

build new medical facilities despite the shortage of them. The Gaza Strip’s health sector suffers from an

acute and ongoing shortage of electricity as well as medicines and medical equipment.

(3) Health Human Resource

The number of health staff per capita in Palestine is less than the neighboring countries. Table 3.4.4 shows

the density of health staffs per 10,000 populations. The density of physicians at 20.8/10,000 in Palestine is

less than half of the 36.5 in Israel. Midwives & Nurses at 19.6 in Palestine is inferior to the neighboring

countries such as 35.2 in Egypt, 51.8 in Israel, 40.3 in Jordan and 22.3 in Lebanon. This difference is

more significant in Gaza Strip; only 16.9 physicians and 16.4 Midwives & Nurses exist for 10,000

population. Regarding the dentists, the density of 5.1 in Palestine shows a similar value to the neighboring

countries. However in Gaza Strip, the density of 2.7 is less than half of the other neighboring countries.

Many physicians get the qualification of physician abroad such as in Russia or Jordan because of the lack

of adequate education facilities in Palestine

Table 3.4.4 Density of Health Staffs per 10,000 Population, 2011

Physicians

Midwives & Nurses

Dentists Pharmacists

West Bank 23.6 21.9 6.6 11.2

Gaza Strip 16.9 16.4 2.7 13.3

Palestine 20.8 19.6 5.1 11.8

Egypt 28.3 35.2 4.2 16.7

Israel 36.5 51.8 8.8 6.7

Jordan 24.5 40.3 7.3 14.1

Lebanon 35.4 22.3 13.3 12.3Source: World health statistics 2012 and MoH Health Annual Report Palestine 2011, PHIC

Regarding the number of health staff by health care level, for the primary and secondary health care level,

it is relatively sufficient compared to international standards by WHO. However, at the tertiary health care

level, the number of required specialized physicians is insufficient, particularly surgeons, pediatricians

and cardiologists. The patients who can not be treated in Palestine due to the lack of specializing

physicians need to refer to a hospital in a neighboring country. NCD is the main cause of these refers

abroad.

Regarding the training of health staffs, the medical schools at university level, including the private sector,

are under the Ministry of High Education (MoHE). Medical school students need to experience one-year

internship in a hospital. This one-year internship is divided into different main subjects such as internal

medicine, surgery, public health, orthopedics, obstetrics, gynecology and pediatrics. After this experience,

medical school students have to sit a general exam to get a license from MoH and the Medical Syndicate.

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With this license, medical school students can be entitled to be called professional physicians and are

finally ready to practice medicine. Currently the 1st medical hospital faculty in Nablus inside An Najah

University is being prepared with the cooperation of MoH and MoHE. It will be possible to carry out

practical training in the university with this hospital.

Once a doctor has gotten his license, it is possible to follow professional courses in order to improve the

specialization. In many case, the physicians go to abroad such as to Russia or Jordan to be qualified as a

specialist due to the lack of educational facilities for specialist training in Palestine. MoH is interested in

specialist training and is selecting the physicians to send abroad for the specialist training with

scholarships awarded by MoH. Candidates for the scholarships are selected from MoH’s physicians and

from private healthcare sector physicians. According to the agreement with MoH, the selected persons are

engaged in medical care in Palestine once qualifying as a specialist physician.

(4) Health financing and health insurance system

In Palestine, health care expenditures have a tendency to increase year by year. The total health

expenditures in 2008 were USD 893.8 million, USD 959.0 million in 2009 and USD 1,074.7 million in

2010. The total health expenditures in 2010 increased about 12% compared with the previous year. Table

3.4.5 shows the distribution of sources of funding for the total expenditures on health. The contribution by

Palestinian Authority was 36.3% of the total in 2010.

Table 3.4.5 Distribution of Sources of Funding for the Total Expenditure on Health (%)

Source of Funding 2009 2010

General Government 36.1 36.3

Private Insurance Enterprises 1.4 2.5

Household out of Pocket Expanse 42.0 40.9

Non-Profit institution serving households (NPISH) sector 17.5 18.2

Rest of the world 3.0 2.1

Total 100.0 100.0 Source: Study Team based on the information from PHIC,

Statistical Report, National Health Accounts 2009/2010

Due to the influence of the financial difficulties of Palestinian Authority in recent years, the contributions

by the government are currently static and this causes various problems in the health sector. Health

financing is insufficient to pay for medicine and it is not able to handle the rising price of medicine. From

the fact that the payment is not guaranteed, the medical suppliers refuse to provide medicines for some

cases. The refer budget for the patients required treatment by a specialist abroad is paid by MoH. Due to a

lack of guarantee for the payment by MoH, some times the receiving hospital refuses to receive the

patient, and these cases are increasing. The refer budget for hospitals abroad in 2010 was USD 40.2

million which was about 12.7% of the budget of MoH, which was USD 2,981 million and it has put

pressure on health financing.

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Regarding the medical expenditures by the patient, national health insurance and / or private insurance

support the medical expenses of the subscribers. National health insurance affiliation is voluntary, except

for employees of government organizations and their families. About 90%14 of the population subscribe

to national health insurance. National health insurance charge per person, per month is 75 NIS. On the

other hand, private sector insurance charge per person, per month is 500 Nis. Subscribers of national

health insurance that are in a public hospital can purchase medicine at a cost of 3 NIS for each drug and

they can be operated on for 2,000 NIS including the first visit fee. Regardless of national health insurance

affiliation, emergency medical care, and care for AIDS or cancer are free of charge for all Palestinians,

and these costs are covered by Palestinian Authority.

3.4.2 Priority Issues

(1) Improvement of access to health care service

The access to health care service is still one of the big issues in the health sector. In order to accommodate

the increasing population, it is necessary to continue expansion and renovation of Primary Health Care

facilities. On the other hand, it is important to unify the quality of PHC centers which have actually 4

different levels, by raising the level of all facilities. Under the MoH, awareness and health education

regarding public health and disease prevention have already been conducted. In the future further

promotion of awareness and health education at school for children and at PHC centers for public is

desired. In addition, internal coordination in MoH is an important key for the establishment of an effective

and efficient referring system between the PHC centres and secondary and tertiary facilities and it is

required.

(2) Preventive health for Non-Communicable Diseases (NCD)

In Palestine, NCD is one of the key priority issues in the health sector. Considering the trend of the

population change, NCD is expected to increase in the future. The main cause of patient refer to abroad is

NCD and its refer budget has put pressure on health financing. How to reduce the refer cost has become

an important issue. Along with the training of specializing physicians, it is necessary to reduce the NCD

prevalence and prevention of NCD is important for it. Health education is the key to NCD prevention. It

is requires enhancing the cooperation with PHC centers and establishing a NCD prevention system such

as implementation of health education and early detection of NCD. Especially for school health education,

tight cooperation with MoE is desired.

In order to respond to the issues related to NCD, a NCD center was established in Ramallah in September

2011. The establishment of a financial resource management system is required for effective and

sustainable activities of the center.

14 Healing in the Ministry of Health in Nablus, July 2012

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3.5 Social Protection

3.5.1 Present Situation

In spite of physical restrictions, social protection services are provided by several measures such as cash

aid, food assistance, care and rehabilitation service delivery to disabled and elderly, childhood care and

rehabilitation, services targeting households and women, empowerment programmes, medical care and

social insurance services.

In this background, Palestine ranks first in the Middle East and North Africa (MENA countries), in the

number of microfinance loans awarded, cumulative values of microfinance loans awarded, number of

projects funded in 2011 and pledges and contributions. Combined with the already adequate amount of

ODA, Palestine has obtained relatively large fund. Therefore, the next step for Palestine would be to

prioritize the sectors to invest in to find how to increase efficiency of investment to cope with the various

socio economic problems Palestine encounter.

Table 3.5.1 summarizes selected indicators about social protection in MENA countries. The present

situation and structure of social protection of each country can be seen by examining different indicators.

(1) Poverty and Inequality

There is only a small difference in income held by the lowest 20% among countries. What stands out is

both total and youth unemployment percentages: Total unemployment of Palestine reaches 24.5%, which

is more than 10% higher than that of the second largest value (12.8%, Jordan). Worse than that, the

unemployment rate of the labor force ages 15-24 is 46.9% in Palestine, which is a serious problem in the

present and future because the population in Palestine is concentrated in the youth.

The poverty gap is the average shortfall from certain poverty thresholds such as national poverty line,

USD 2 a day and USD 1.25 a day excluding values of non-poor and expresses the concentration and

incidence of poverty in a group of people. Even though only the data for Palestine and Jordan are

applicable for a poverty headcount ratio at the national poverty line, one can find that the figure of

Palestine (4.9%) is more than 2% higher than that of Jordan (2.6%). The poverty gaps at USD 2 and USD

1.25 show the percentage of people living with less than those amounts a day. Contrary to the high values

of Egypt and Syria, that of Palestine remains low. This means that there exists a large number of the poor

in Palestine but most of them are above the extremely poor level of USD 2 per day and spread around

many income levels. This finding is also supported by the same data trend of poverty headcount ratios

which is the percentage of the population living below certain poverty thresholds (national poverty line,

USD 2 per day or USD 1.25 per day).

The above mentioned unemployment and poverty are not only high at present but are also in an

increasing trend. According to the social protection sector strategy paper, there exists a correlation

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between the poverty rate and the number of household members. This poses a hypothesis that increasing

population has been a trigger for poverty. The paper also points out that female-headed families are more

likely to earn less, concretely 54%, than otherwise.

(2) Relief and Social Service

It seems construction of Special Hardship Centers (SHCs) has been very successful in Palestine with

144,688 centers altogether in Palestine (38,686 in West Bank and 106,002 in Gaza Strip). In addition, a

relatively large number of women’s programme centers, community rehabilitation centers, and relief and

social services staff are already provided. There may be a shortage of community development centers

and community managed fund schemes in Gaza.

(3) Microfinance and Other Projects

Palestine ranks first in the number of microfinance loans awarded, cumulative values of microfinance

loans awarded, number of projects funded in 2011 and pledges and contributions. Combined with the

already adequate amount of ODA, Palestine has obtained relatively large funds. Therefore, the next step

for Palestine would be to prioritize the sectors to invest in to find how to increase efficiency of investment

to cope with the various socio economic problems Palestine encounter.

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Table 3.5.1 Social Protection Indicators PLE West Bank Gaza JOR LBN SYR ISR EGY

Income share held by lowest 20%

7.4 (2009)

- -7.7

(2010)-

7.6 (2004)

- -

Unemployment, total (% of total labor force)

24.5 (2009)

- -12.8

(2009)9

(2007)8.3

(2010) 6.5

(2010) 9.3

(2009)

Unemployment, youth (% of total labor force ages 15-24)

46.9 (2009)

- -27

(2009)22.1

(2007)19.2

(2010) 13.7

(2010) 24.8

(2007)

Unemployment with primary education (% of total unemployment)

53.7 (2008)

- - -45.5

(2007)46.0

(2008) 22.1

(2008) -

Unemployment with secondary education (% of total unemployment)

14.3 (2008)

- - -19.7

(2007)28

(2008) 48

(2008) -

Unemployment with tertiary education (% of total unemployment)

24.5 (2008)

- - -29.7

(2007)4.9

(2008) 28.1

(2008) -

Poverty gap at national poverty line (%)

4.9 (2009)

- -2.6

(2008)- - - -

Poverty gap at $2 a day (PPP) (%)

0.06 (2009)

- -0.2

(2010)-

3.2 (2004)

- 2.8

(2007)

Poverty gap at $1.25 a day (PPP) (%)

0.01 (2009)

- -0.03

(2010)-

0.2 (2004)

- 0.3

(2007)

Poverty headcount ratio at national poverty line (% of population)

21.9 (2009)

- -13.3

(2008)- -

22 (2007)

Poverty headcount ratio at $2 a day (PPP) (% of population)

0.3 (2009)

- -1.5

(2010)-

16.8 (2004)

- 15.4

(2007)

Poverty/ Inequality

Poverty headcount ratio at $1.25 a day (PPP) (% of population)

0.04 (2009)

- -0.12

(2010)-

1.7 (2004)

- 1.6

(2007)

Special Hardship Centers (SHCs)

144,688 38,686 106,002 54,761 56,656 37,613 - -

Women's programme centers 23 16 7 12 9 5 - -

Community rehabilitation centers

21 15 6 8 1 5 - -

Community development centers

0 0 0 3 1 11 - -

Community managed fund schemes

10 10 0 13 6 13 - -

Relie/service

Relief and social services staff

368 166 202 112 116 88 - -

No. of loan awarded 168,454 70,097 98,357 36,076 - 61,041 - -Microfinance Comulative value of loans

awarded (USD) 211,086,893 100,294,398 110,792,495 48,437,287 - 42,471,865 - -

No. of projects funded in 2011

50 19 31 15 23 19 - -Project

Pledges & contributions (million USD)

137 7.1 129.5 4.6 20.3 21.1 - -

Source: World Bank, UNRWA

(4) Disabled and Handicapped

The percentage distribution of the disabled in the total population of Palestine is 2.7%, while that of the

West bank and Gaza are 2.9% and 2.4% respectively (Table 3.5.2). Percentage distribution of males is

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2.9%, which is higher than that of females. In addition, there seems to be more disabled in every age

category except 65-74. The percentage distribution of both region and sex appear to grow with

additional ages. (Table 3.5.2)

Table 3.5.2 Disability Distribution by Area and Sex (percentage), 2011

PSE West Bank Gaza Female Male

0-17 1.5 1.6 1.4 1.3 1.8

18-34 1.8 2.0 1.5 1.4 2.3

35-44 2.7 2.8 2.4 1.9 3.4

45-54 4.1 4.2 3.8 3.8 4.4

55-64 7.1 7.2 6.9 6.6 7.5

65-74 16.8 15.5 19.4 20.5 11.9

75- 32.0 31.4 33.6 34.1 28.9

Total 2.7 2.9 2.4 2.5 2.9 Source: PCBS

In terms of types of disability, lack of mobility takes over in every region with the highest portion of

more than 1% (Table 3.5.3). This high figure would most likely be explained by the high percentages

of congenital or birth related reasons (Table 3.5.4). Along with these features due to nature, those who

are 18 years old or older have more chances to suffer from both physical causes such as accidents

(traffic and other kinds), aging or work injury and mental causes such as stress. Illness and Israeli

measures could affect Palestinians in both ways, especially the adults.

Table 3.5.3 Types of Disability (percentage), 2011

PSE West Bank Gaza

Total Female Male Total Female Male Total Female Male

Vision 0.6 0.5 0.6 0.5 0.5 0.5 0.6 0.5 0.7

Hearing 0.4 0.4 0.4 0.3 0.3 0.3 0.5 0.5 0.4

Communication 0.6 0.5 0.7 0.5 0.4 0.6 0.6 0.5 0.7

Mobility 1.3 1.4 1.3 1.1 1.3 0.9 1.4 1.4 1.5

Remembering and concentration

0.6 0.5 0.6 0.6 0.6 0.6 0.6 0.5 0.7

Learning 0.7 0.5 0.8 0.6 0.6 0.7 0.7 0.5 0.8

Mental 0.4 0.3 0.5 0.4 0.3 0.4 0.4 0.3 0.5Source: PCBS

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Table 3.5.4 Reasons for Disability (percentage), 2011

PSE West Bank Gaza

0-17 18+ 0-17 18+ 0-17 18+

Congenital 29.6 9.6 31.4 11.3 26.5 8.8

Birth related 15.2 3.2 15.6 2.9 14.4 3.3

Illness 24.0 37.4 25.3 37.7 21.6 37.2

Physical and psychological abuse 1.4 1.0 0.6 1.8 2.8 0.6

Traffic accident 1.4 2.3 1.1 2.6 1.9 2.2

Other Kind of accidents 4.4 9.5 3.9 7.4 5.2 10.5

Israeli measures 1.6 4.9 1.5 6.5 1.7 4.2

Stress 0.4 6.0 0.1 6.6 1.1 5.8

Hereditary 12.2 5.5 12.3 3.2 12.1 6.6

Birth related 4.3 0.8 2.7 1.3 7.0 0.7

Aging - 2.4 - 1.5 - 2.8

Work Injury - 3.9 - 2.9 - 4.3

Other 5.5 13.5 5.5 14.3 5.7 13.0

Total 100.0 100.0 100.0 100.0 100.0 100.0

Source: PCBS

3.6 Private Sector Development and Trade

3.6.1 Present Conditions

The economy in Palestine has achieved growth in GDP recently with 8% growth in 2010. There is,

however, deep concern about slowing down of economic growth since the GDP growth turned down to

6% in 2011.

The recent situation in the private sector, Figure 3.6.1 shows the GDP share by sector since 2005. In 2010,

the service sector had a top share in GDP with 20.9%, followed by wholesale and retail (15.9%), and

manufacturing (10.2%). The manufacturing sector is the core sub-sector of the secondary sector of

industry, however, the statistics show its share in GDP has been sluggish at around 10% these three years.

Agriculture has also been struggling this decade whose share in GDP shows a downward tendency since

reaching 10% in 2000 but was 5.2% in 2010.

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0

5

10

15

20

25

30

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Agriculture and Fishing

Mining and Quarrying

Manufacturing

Electricity and Water Supply

Construction

Wholesale and Retail Trade

Transport, Storage andCommunicationsFinancial intermediation

Services

Source: PCBS

Figure 3.6.1 GDP Contribution by Sector 2000-2010

(1) Trade: Export and Import

Palestinian export shows an increasing tendency and almost doubled to USD 575.5 million in 2010 from

USD 290.3 million in 2001. However, the trade deficit has not decreased but rather become wider since

imports have also doubled which reached USD 3958.5 million. As a result, Palestine is still facing a huge

trade imbalance which reached USD 3409.9 million in 2010.

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Table 3.6.1 Export and Import, 2001-2010 (USD million)

Indicators 2001 2002 2003 2004 2005* 2006 2007* 2008 2009 2010

Total Palestinian Exports

290.3 240.9 279.7 312.7 335.4 366.7 513 558.4 518.4 575.5

Total Palestinian Imports

2,034 1,515.6 1,800.3 2,373.2 2,667,6 2,758.7 3,284 3,466.2 3,600.8 3958.5

Palestinian Net Trade Deficit

1,743.3 1,274.7 1,520.6 2,060.6 2,332.1 2,392 2,771.1 2,907.7 3,082.4 3409.9

Total Palestinian Imports From Israel

1,352 1,117 1,309.6 1,747.9 1,872.9 2,002.2 2,442.8 2,794.8 2,651.1 2873.3

Total Palestinian Exports to Israel

273 216 256 281.1 290.6 326.6 455.2 499.4 453.4 488.3

Total Palestinian Exports of Services to Israel

84.8 66.3 73.1 92.6 127.7 131.3 121.8 126.6 122.9 119.4

Total Palestinian Imports of Services From Israel

66.2 49 61.6 94 119.1 123.2 104.7 95.1 131.1 130.8

Palestinian Net Trade Balance in services

18.5 17.3 11.5 -1.5 8.6 8.1 17.2 31.5 -8.2 -11.4

Source: PCBS

The share of export to GDP in Palestine since 2006 shows an uptrend from 8.5% in 2006 to 11.4% in

2008. It did, however, turn to decline after 2009 then ended up with 6.7% in 2011. Compared with some

MENA countries, Palestinian export is rather stable even though it’s in the downtrend recently (Figure

3.6.2). Most of the countries were affected badly by the global financial crisis and their export dropped

sharply in 2009. It recovered in 2010, but again declined in 2011.

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-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

2006 2007 2008 2009 2010 2011

MENA

Egypt

Jordan

Lebanon

Morocco

Tunisia

Israel

Palestine

Source: IMF Figure 3.6.2 Comparison with MENA and Israel on Percentage Share

of Export to GDP, 2006-2010

In terms of trading partners, both exports and imports are heavily dependent on Israel with 85% in exports

and 73% in imports. Of the remaining trade, export to Middle East counties has 9.44% share and import

from Europe has 9.82% share. Among the industries, Table 3.6.2 shows the total value and growth of

export by economic sector. Compared with 2006, three sectors achieved more than 200% increase such

as beverages and tobacco (240.8%), chemical and related products (210.1%) and food and live animals

(204.6%). To the contrary, fuel related sectors recorded significant decreases.

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Table 3.6.2 Total Value of Export by Sector, 2006-2010 (USD million)

Sector 2006 2007 2008 2009 2010 2010/2006Food and live animals 38,819 68,537 63,126 61,324 79,440 204.6%Beverages and tobacco 9,973 15,649 19,409 21,957 24,013 240.8%Crude materials, inedibeexcept fuels

18,492 13,242 9,457 7,184 11,610 62.8%

Mineral fules, lubricantsand related materials

3,332 8,163 3,164 2,709 1,548 46.5%

Animal and vegetableoils, fats and waxes

13,706 17,777 21,069 14,628 15,761 115.0%

Chemicale and relatedproducts

35,216 66,650 72,729 67,747 73,984 210.1%

Manufactured goodsclassified chiefly bymaterial

155,426 222,014 240,246 210,548 244,984 157.6%

Machinery and transportequipments

22,108 28,297 32,276 30,025 32,976 149.2%

Miscellaneousmanufactured articles

69,630 71,734 96,970 102,233 91,196 131.0%

Commdities andtransactions

6 916 NA NA NA NA

Total 366,709 512,979 558,446 518,355 575,513 156.9% Source: PCBS

According to the Palestinian Food Industry Association (PFIA), the amount of food exported was USD

110 million in 2010. The dairy products and birds egg sector has around 16.9% among 15 sub-sectors in

the food industry in Palestine followed by the vegetables and fruits (15.6%), the fixed vegetable fats and

crude oils, refined or fractionated (13.6%) and the cereals and cereal preparations (12.6%)15. In terms of

the growth rate of the exports, the dairy products and birds eggs has achieved rapid growth and now stands

at seven times of its amount in 2001. Additionally the cereals and cereal preparations, the sugar and sugar

preparations, and oil seeds and oleaginous fruits have grown around four times compared with 2001.

(2) Micro, Small and Medium Enterprises (MSMEs)

Another key feature regarding the private sector in Palestine is that the majority of establishments are in

the category of Micro, Small and Medium Enterprises, so called MSMEs. According to the Minister

decree of the Ministry of National Economy (MoNE) issued in 2011, establishments are defined into four

categories, large, medium, small and micro, by size in employees, annual turnover and capital. Table

3.6.3 shows the number of establishments in the private sector along with the establishment census in

2004 and 2007. Compared with 2004, establishments increased 13% in number in 2007 (in total 109,696:

77,639 in West Bank, 32,047 in Gaza). In terms of establishment size, micro enterprises with 1 to 4

employees make up over 90% of total establishments. Moreover, MSMEs make up over 99% of the total

establishments which indicates the MSMEs are the major actors in the private sector in Palestine. 15 PFIA categorizes thefood industry into 15 sub-sectors: 1) live animals other than animals of fish division, 2) meat and meat preparations, 3)

Dairy products and birds eggs, 4) fish crustaceans molluscs and aquatic invertebrate, and preparations thereof, 5) cereals and cereal preparations, 6) vegetables and fruits, 7) sugar, sugar preparations and honey, 8) coffee, tea, cocoa, spices and manufactures thereof, 9) feed stuff for animals, 10) miscellaneous edible products and preparations, 11) beverages, 12) oil seeds and oleaginous fruits, 13) crude animal and vegetable materials, 14) animal oils and fats, 15) fixed vegetable fats, and crude oils, refined or fractionated.

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Table 3.6.3 Number of Establishments in the Private Sector (2004, 2007) and Employee Size Group (2007)

2004 2007Total Total 1-4 5-9 10-19 20-49 50-99 100

Agriculture -farming of cattle &other animals

5,881 6,976 6,543 400 31 2 0 0

Mining & 211 299 140 121 28 8 2 0Manufacturing 13,177 15,340 12,083 2,104 808 281 38 26Electricity andwater supply

510 477 432 21 7 3 5 9

Construction 704 627 363 141 87 25 8 3Wholesale, retailtrade & repairs

55,048 59,253 56,701 2,111 351 78 10 2

Hotels & 4,192 4,643 4,253 302 65 20 2 1Transport, storage& communications

873 1,215 778 251 120 47 11 8

Financialintermediation

725 844 577 106 88 53 13 7

Real estate, renting& business

3,902 4,304 3,845 347 81 23 7 1

Education 1,960 2,384 1,382 648 207 107 27 13Health & social 3,682 4,260 3,771 237 139 71 21 21Other community,social & personalservices

6,414 9,064 8,098 660 215 70 13 8

Total 97,279 109,686 98,966 7,449 2,227 788 157 199Total (%) 100% 90.23% 6.79% 2.03% 0.72% 0.14% 0.18%

Economic ActivityEmployment Size Group (2007)

Source: PCBS

According to the establishment census by PCBS, the total employment number was 296,965 in 2007

which is a 15% increase (around 40,000) since 2004. Figure 3.6.3 illustrates the share of employment by

sector. Wholesale, retail trade and repairs sectors cover nearly 38% of total employment, followed by

manufacturing (21.2%) and other sectors are less than 10%. Agriculture has less than 5% share in

employment since most of them are quite small scale businesses, which is also indicated by the above

Table 3.6.3, that is to say, nearly 94% of establishments in Agriculture are micro size (1-4 employees).

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Agriculture, farming of

cattle & other

animals4.9%

Mining&quarrying0.6%

Manufacturing21.2%

Electricity and water supply supply

1.0%Construction1.5%

Wholesale, retail trade & repairs

37.7%

Hotels & restaurants3.8%

Transport, storage &communications

2.9%

Financial intermediation

2.4%

Real estate, renting & business activities

3.8%

Education6.8%

Health & social work5.6%

Other community, social & personal

services7.9%

Source: PCBS

Figure 3.6.3 Employment Contribution by Sector 2007

(3) Unemployment

Unemployment is the most central issue in Palestine. Recently the unemployment rate showed

improvement with a downward tendency which recorded 23.7% in 2010 which improved in the West

Bank with 17.2% and was still high in Gaza with 37.8%. Compared with some MENA counties, Egypt

and Morocco show less than 10 % unemployment rate currently and respectively 8.9% and 9.1% in 2010,

and even higher in Tunisia and Jordan but those are around 13%. It is obvious that the unemployment in

Palestine is rather severe among surrounding countries.

Source: IMF and PCBS

Figure 3.6.4 Unemployment Rate among some MENA Countries and Israel, 2008-2010

Source: PCBS Figure 3.6.5 Unemployment by Age

Group, 2010

0

5

10

15

20

25

30

Egypt Morocco Tunisia Jordan SaudiArabia

Israel Palestine

2008

2009

2010

15-2436%

25-3422%

35-4414%

45-5415%

55+13%

Total employment: 296,965

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In addition to the higher unemployment rate, there are notable features in unemployment in Palestine.

Regarding the proportion of the unemployment rate by age group (Table 3.6.4), the younger generation,

especially the age from 15 to 24 suffers from unemployment which reaches 36% and unemployment

below age 34 reaches 58%. The other feature is the difference between male and female unemployment.

It is indicated in the next Table 3.6.4 that female unemployment rates are higher than male which are

19.7% in the West Bank and 47.8% in Gaza, respectively male unemployment rates are 16.6% and

36.2%. Moreover, female unemployment has risen recently while male unemployment shows a

downward tendency.

Table 3.6.4 Unemployment by Gender, 2008-2010

2010 Unemployment and Gender

2008 2009 Total Gaza Strip West Bank

Total 26.6 24.5 23.7 37.8 17.2

Males 27.2 24.1 23.1 36.2 16.6

Females 24.2 26.4 26.8 47.8 19.7 Source: PCBS

The ICT sector which recently has become a growing industry in recent the Palestinian economy also has

potential to expand employment opportunities. According to the Palestinian Information Technology

Association (PITA), the number of ICT enterprises has been increasing to around 250 in the West Bank,

its annual turnover reaches approximately USD 500 million to 600 million, and export of ICT services is

about USD 15 million per year16. Major export recipient is Israel but several ICT companies deal with the

U.S and Europe. The ICT sector would have strong potential especially on human resources since every

year around 1500 to 1600 students who learn ICT technologies graduate from the universities17. Outline

of the ICT sector is summarized as follows.

Table 3.6.5 Outline of the ICT Sector

Major Indicators Situations

ICT Market Size of Palestine (Internal Market) USD 300 million

ICT Market Size of Palestine (Internal Market): Annual Growth

25%

Production Size (2010) USD 588.9 million

GDP Contribution (2011) 6.4% (0.8% in 2008)

Labour force 6,400 (2,200 in 2000)

Production Size/Labour USD 40,000 (average production size of industry: USD 17,000)

Source: The Portland Trust: Bulletin Special Feature (August 2012)

16 USAID, Mercy Crops (2012) ICT Business Development 17 GIZ (2012) Palestinian ICT Private Sector: 3-Year Strategy and Development Plan

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(4) Business and Investment Environment

Although improving the business and investment environment is one of the priorities of the PA, the

situation has become weaker these last two years. Share of investment to GDP dropped sharply in 2007

and slightly recovered in 2008 and 2009, however falling down again in 2010.

0

5

10

15

20

25

30

2005 2006 2007 2008 2009 2010

Gross capital formation

Public

Private

Source: PCBS and IMF

Figure 3.6.6 Percentage Share of Investment to GDP, 2005-2010

According to the Foreign Investment Survey 2010 (PCBS), total foreign liabilities of Palestinian

enterprises was USD 2,297 in 2010 which was composed of 60% of FDI in Palestinian enterprises, 27%

of portfolio investments in Palestinian enterprises and the remaining are other investments. Regarding

FDI, around half of it is delivered by financial intermediation activity and 76% of total stock in FDI is the

investment from Jordan. Total portfolio investments concentrate on services and transport with 63% of

total portfolio investment and 53% of it comes from Jordan.

The business environment in Palestine is evaluated as rank 135 out of 183 countries according to the

Doing Business 2012. Compared with MENA countries, Palestine recorded a better rank than Egypt,

Jordan, Lebanon, Syria, etc. on several aspects, such as registering property, protecting investors,

enforcing contracts, dealing with construction permits, and so on. However, Palestine declined in rank

from 128 in 2010 to 135 in 2011 due to no improvement in the business environment from 2010 to 2011.

Among MENA countries, Saudi Arabia had the highest rank at 12th followed by the UAE (rank 33),

Qatar (rank 36) and Bahrain (rank 38). Counties ranking lower than Palestine in total ranking are Syria,

Iran, Algeria, Iraq and Djibouti.

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Table 3.6.6 Doing Business Ranking 2012, MENA Countries

Countries TotalStarting abusiness

Dealing withconstruction

permits

Gettingelectricity

Registeringproperty

Gettingcredit

Protectinginvestors

Payingtaxes

Tradingacross

borders

Enforcingcontracts

Resolvinginsolvency

Saudi Arabia 12 10 4 18 1 48 17 10 18 138 73UAE 33 42 12 10 6 78 122 7 5 134 151Qatar 36 116 24 18 37 98 97 2 57 95 37Bahrain 38 82 7 49 30 126 79 18 49 114 25Tunisia 46 56 86 45 65 98 46 64 32 76 38Oman 49 68 64 61 21 98 97 9 47 107 76Kuwait 67 142 121 57 88 98 29 15 112 117 48Morocco 94 93 75 107 144 98 97 112 43 89 67Jordan 96 95 93 36 101 150 122 21 58 130 104Yemen 99 66 35 52 55 159 133 116 118 38 114Lebanon 104 109 161 47 105 78 97 30 93 120 125

Egypt 110 21 154 101 93 78 79 145 64 147 137

Palestine 131 177 129 85 78 166 46 39 114 93 183

Syria 134 129 133 83 82 174 111 111 122 175 102Iran 144 53 164 162 163 98 166 126 138 50 118Algeria 148 153 118 164 167 150 79 164 127 122 59Iraq 164 176 120 46 98 174 122 49 180 140 183Djibouti 170 179 142 143 148 177 179 70 37 160 141

Source: World Bank

(5) Financial Access for MSMEs

Through the interview survey with the Association of Banks (ABP) in Palestine, it is revealed that

financial loans for MSMEs are limited in Palestine although Palestinian banking sector has grown

steadily. ABP says that businesses with MSMEs tend to turn against by banks since those risks are

relatively higher than with large enterprises and also currently banks don’t have enough capacity to assess

MSMEs properly.

To improve MSMEs’ financial access in Palestine, KfW, EC and EIB launched the Europe and Palestine

Credit Guarantee Fund (EPCGF) in 2005. EPCGF provides financial loans to MSMEs in collaboration

with banks in Palestine to support MSMEs by increasing financial access and to support banks by

guaranteeing their loans. Currently eight banks and two micro finance institutions participate in EPCGF

achieving 2,500 loans and USD 76 million in total.

Meanwhile, the Microfinance Institutions (MFIs) are vital in Palestine to provide small scale loans for

entrepreneurs of especially micro enterprises or individuals who want to start up their new businesses.

The following table is a summary of recent situation of MFIs in Palestine.

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Table 3.6.7 Outlook for Microfinance in Palestine (2011)

Item Current Situation

MFIs in Palestine 10 MFIs

Total loan amount USD 75,647,729.33

45,204 clients

Male 47.17%

Number of active clients

Female 52.83%

Average loan amount by MFIs USD 800 - 4,000

Agriculture 26.08%

Production, Craft 16.00%

Trade 41.68%

Loan portfolio by sectors

Consumption, Housing and Other

16.24%

Source: The Palestinian Network for Small and Micro Finance

3.6.2 Priority Issues

(1) Strengthen competitiveness of private sector

It is necessary for Palestine to foster its private sector so that it can become competitive in the global

economy to achieve solid economic growth which is also expected to induce political and social stability.

Along with PA’s policy priorities in the economic sector, both the public and private sectors need to make

a concerted effort to achieve dynamic private sector growth through establishing a solid economic

foundation by fostering quality human resources, increasing productivities, reducing costs, and so on.

(2) Promote export and diversify export partners

Since Palestine faces a large trade deficit, small domestic market and limited market access in the global

economy, it is essential to expand Palestinian exports by developing a powerful export promotion policy.

Additionally, one of the main issues in export promotion is diversification of export partners since

Palestine highly depends on the Israel economy in trade. It is expected to develop wider partnerships

within Arabic countries by taking advantage of cultural similarities, and with Europe by exploiting its

geographical advantage.

(3) Establish robust and attractive business and investment environment

To facilitate more business in Palestine, it is crucial to provide an appropriate and beneficial business and

investment environment for investors. Industrial park development is one of the possibilities for PA to

bring domestic and foreign investment to Palestine, however, it is necessary for PA to enrich the value of

investment by reducing risks and providing attractive incentives to the private sector to overcome such

political instability that Palestine faces.

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(4) Generate employment opportunities

It is a key to solve high unemployment situation in Palestine to create more job opportunities in the

private sector. It is expected for to PA to establish a solid labor market by providing matching

opportunities between enterprises and job applicants, strengthen capacities of potential employees, and so

on. The outcome of such efforts would be realized in the long-term instead of short-term, PA is required

to take strong initiatives with the private sector.

3.7 Agriculture

3.7.1 Present Conditions

(1) Resources and Production

1) Land Use

Cultivated land in Palestine covers 1.85 million dunums18 or 31% of the total land area, out of which,

more than 90% lies in the West Bank, according to MoA19. Area A, covers 62.9% of the area followed by

Area B (18.8%) and Area C (18.3%). 12,800 plots such land are totally inaccessible as they are either

confiscated by Israel or divided by the separation wall. These lands are estimated around 0.90 million

dunums. Further, access to an additional 15,000 farmlands is restricted for example by the Israeli security

checkpoints. In addition to the cultivated land, 0.62 million dunums area of rangeland can be used under

the Israeli restriction, although there are 2.02 million dunums of potential land for grazing.

Figures 3.7.1 and 3.7.2 show the land use of the West Bank and Gaza Strip respectively. The cultivated

land is highlighted in orange color in the maps. According to the agriculture census in 201020, cultivated

land in the West Bank was 885,166 dunums including major cultivation areas such as Jenin (176,189

dunums), Hebron (158,027 dunums) and Nabrus (128,166 dunums), while Gaza Strip was 75,154

dunums. The area of cultivated land per farmer was 39.8 dunums in Jericho and Tubas was 27.2 dunums,

which tended to be much larger than other districts.

18 1 dunum=1000 square meters 19 MoA (2011) Agriculture Sector Strategy “A Shared Vision” 2011 - 2013 20 PCBS (2011) Agricultural Census 2010 – Palestinian Territory

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Figure 3.7.1 Land Use and Land Cover in

2008 (Gaza) Figure 3.7.2 Land Use and Land Cover in

2005 (West Bank)

Another major constraint faced by Palestinian agriculture is access to water. Approximately 89% of the

farmlands in PA rely on rain for cultivation. The share of irrigation, while said to be 20 to 25 times more

productive than rain-fed cultivation, is only 11% primarily because the lands lack access to water sources.

Despite the small share of land area, irrigation produced 77% of the crops in 2009. It can be assumed that

agricultural productivity would heighten significantly if the current water restriction was lifted. There are

150 mcm21 of water including 70 mcm in the West Bank and 80 mcm in Gaza Strip which can be utilized

annually. However, Israel seems to exploit 82% of the water resources in Palestinian territory.

Groundwater wells serve as the main water source for Gaza Strip’s irrigation. In the West Bank, on the

other hand, irrigation is sustained by ground and spring water most of which are predominantly located in

the Jordan River Rift Valley. The number of agro wells in the West Bank is 272, pumping 30.1 mcm of

water in 2008. While data on the number of such wells in Gaza is not readily available, according to SDC

(2009)22, the quantity of water pumped was 7.5 mcm in the same year.

2) Farmers

As of 2010, out of the 111,310 farmers/cultivation land owners, a large portion of them (71.1%) were

engaged in crop production, while 12.8% were engaged in livestock production and 16.1% in mixed

farming. A total of 73.8% of the farmers practice agriculture on their own land, 24.1% are co-owners and

21 mcm = million m3 22 Swiss Agency for Development and Cooperation (SDC) (2009) Palestinian Fresh Fruits and Vegetables: Sector Overview

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the remaining 1.9% rent the land23. In 2008, agricultural workers’ share in the total number of workforce

in the territory was 13.4%24.

3) Production and Major Crops

The main products in Palestine include: olives; grapes; and figs. Olives are grown in half of the country’s

cultivated land but its production level varies significantly every year and is also relatively susceptible to

diseases, causing its price to fluctuate considerably.

The value of agricultural production in 2007/2008 was USD1,358 million. Plant production accounted

for 60.9% (USD831.9 million)22, 55.6% of the value came from vegetables including cut flowers, 31.7%

from fruit tree production, and 12.7% from field crops. Table 3.7.1 shows the annual production and area

of major crops in Palestine. Vegetables cultivated in green houses tend to have high productivity, while

cut flowers is the highest productivity.

Table 3.7.1 Area, Yield and Production of Agriculture (2007/2008)

(Tons) (Dunums) (Tons/ Dunum)

Crop Production Area Production/Area

Fruit Tree Total 254,278 1,172,387 0.22

Olive 85,651 950,066 0.09

Grape 55,164 74,003 0.74

Valencia Orange 26,915 10,140 2.65

Vegetable Total 696,548 186,176 3.74

Cucumber 208,182 32,348 6.43

Tomato 207,559 24,921 8.33

Eggplant 59,655 11,713 5.09

Field Crops Total 185,445 495,333 0.37

Potato 69,180 21,177 3.27

Onion 40,054 17,326 2.31

Wheat 31,826 229,441 0.14 Source: PCBC (2010)25

During the period between 2004 and 2008, production of vegetables and crops increased by 18% and

11%, respectively, while that of fruits dropped by 21% Table 3.7.2. The large decline in fruit production

is largely attributed to the drop of citrus trees in terms of both land area and production level.

23 PCBS (2011) Agricultural Census 2010 – Palestinian Territory 24 Palestinian Central Bureau of Statistics, 2012. 25 PCBS (2010) Agriculture Statistics (Annual Report) 2010

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Table 3.7.2 Agricultural Production, Areas, and Percentage of Change over, 2004-2008 (1,000 tons) (1,000 dunums)

Production Area

2004 2008 Change (%) 2004 2008 Change (%)

Fruits 320 253 -21 1,153 1,172 1.6

Vegetables 5,899 6,964 18 179 186 3.9

Field Crops 1,739 1,935 11 491 495 0.8Source: MoA (2011)26

(2) Livestock Production

Major livestock in Palestine include sheep, broiler chickens, goats and cattle, although there is some bee

keeping. The livestock production was USD 534.7 million in 2008. Meat, dairy, and eggs constituted

55.2%, 29.5%, and 11.1%, respectively. Major livestock products in Palestine include: chickens; eggs;

and honey. From 2004 to 2008, production of cattle, milk, and eggs showed an increase of 0.4%, 71.7%,

and 7.3%, while that of sheep, goats, broiler chickens, and honey decreased by 16.9%, 18.9%, 17.5%, and

32%, respectively Table 3.7.3. The large increase in milk production can be explained by an increase in

Friesian cows.

Table 3.7.3 Livestock Production and Percentage of Change over, 2004-2008

(tons)

2004 2008 Change (%)

Cattle 5,028 5,047 0.4

Sheep 23,131 19,227 -16.9

Goats 8,262 6,704 -18.9

Broiler Chickens 57,009 47,056 -17.5

Milk 185,015 317,762 71.7

Eggs 604 648 7.3

Honey 466 316 -32 Source: MoA (2011)26

(3) Agricultural Input

Out of the total intermediate agricultural consumption cost of USD 490.4 million in 2008, 62.8% is

attributable to animal production in Palestine with the remaining 37.2 % generated by plant production.

Feed constitutes nearly half (46%) of it followed by fertilisers (9.6%), veterinary medicine (7.7%),

pesticides (7.3%), and water and electricity (7.0%). The high proportion is a reflection of the constraint in

livestock breeding, namely feed shortage27. In Israel, on the other hand, feed constitutes 31.1% of the cost

of agricultural inputs followed by water and electricity (20.4%), pesticides (4.5%), and fertilisers (3.3%),

thus the cost for fertilisers and pesticides is much smaller than in Palestine28.

26 MoA (2011) Agriculture Sector Strategy “A Shared Vision” 2011 - 2013 27 JICA (2006) Jericho Regional Development Study Project in Palestine Final Report: Main Report 28 The Central Bureau of Statistics, Israel (2011) Israel in Figures

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(4) Fishery

Fishing is practiced in the coastal water of Gaza Strip, amounting to 2,844 tons in 200829. While it is

allowed under the Oslo Accord in the water that is within six nautical miles from the coast line, the area

has been narrowed to merely three nautical miles in January 2009, leading to a drop in the fishery catch by

nearly 30%. Fresh- and sea-water aquaculture has been observed in the last few years and produced 350

tons in 2010. The number of fishery workers is 8,200 out of which, 3,700 are fishermen. They use a

flotilla of 270 small boats for fishing27.

are fishermen. They use a flotilla of 270 small boats for fishing27.

Aquaculture is popular in the region, although there is only small scale aquaculture practiced in Gaza

within Palestinian territory. Israel practices large scale aquaculture including freshwater fishes such as

carp and tilapia in the Jordan River Rift Valley area. Fishes are handled frozen and exported to the

Western countries. The aquaculture production in Israel in 2009 was 19,405 ton, which was 55 times the

production in Palestine30. Recently, caviar from cultured sturgeon has been produced in Israel and

exported to foreign market.

(5) Postharvest and Food Processing

Most of the harvested agricultural products are distributed within Palestinian. Only products which are

good quality and can access a secure cold chain tend to be exported to Israel and the foreign market.

According to the survey conducted by the Director of the Postharvest Technology Department, MOA31,

most of the fresh vegetables tend to be transported to wholesale markets without postharvest precooling

and a refrigerated lorry. Estimated size of loss due to deterioration of quality in the logistic process

without a cold chain seems to be 25% to 50%. Figure 3.7.3 illustrates market channels for Palestinian

vegetables and variations in application of a cold chain. It is estimated that less than 2% of product can be

exported to the international market while less than 14% can be sold in Israel. Remaining products seem

to be sold in the domestic market or have no commercial value.

29 Palestinian Central Bureau of Statistics, 2012. available at:

http://www.pcbs.gov.ps/DesktopModules/Articles/ArticlesView.aspx?tabID=0&lang=en&ItemID=1410&mid=10945 30 FAO, National Aquaculture Sector Overview; http://www.fao.org/fishery/countrysector/naso_israel/en#tcN900AD 31 Almasri, Mohammed Yousef (2012) Short Report on Current Status of Cold Chain in the Food Sector in Palestine, submitted to Training of

Trainers on Cold Chain in the Food Sector in the Near East Region, Agadir, Morocco, 28-31 May 2012

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Source: Almasri (2012)

Figure 3.7.3 Marketing Channels for Palestinian Vegetables and Cold Chain

There are few packing factories with precooling and refrigerated facilities for fresh vegetable and

herbs in the Jordan Rift Valley. Some of them have been assisted by aid agencies such as USAID,

and export their products to the Western market using qualification certificates such as GlobalGAP.

Due to security checks required by Israel, however, they face risks of deterioration of quality of

product by the back to back practice at the Allenby crossing point, even if they find a secure cold

chain in Palestinian territory. A packing company tries to export its products to Jordan in early

morning or at night to prevent quality deterioration from the hot climate32.

Considering the weak environment of cold chains in Palestine, food processing is a solution to decrease

loss caused by the lack of cold chains. Further, some of the processed food can be distributed to both

domestic and international markets without cold chains. Olives, for instance, are processed into oil and

pickles in its highland areas. The reason for this can be explained by the observation based on interviews

that: agricultural products made in Palestine are poor in quality and yet relatively expensive; and business

ideas and skills regarding food processing are largely absent among the farmers.

(6) Import/Export

Palestine is largely dependent on imported agricultural goods. According to MoA, some agricultural

goods are exported from Palestine but the volume is minimal and the destination is limited to Israel. Fruits

and to a less extent vegetables are largely imported from other countries, again mainly from Israel which

accounts for 90% of fruits and 25% of vegetables imported in the territory. According to the third

Refinement and Countries of Origin and Destination 2007, the total value of fruits and vegetables

32 Interview with Palestinian Garden (July 2012)

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imported (USD 61 million) far exceeded the value of exports (USD 12.1 million) in Palestine resulting in

a net trade deficit of USD 48.9 million. The import-export gap is widening from an import-export ratio of

1.3:1 in 2000 to 6:1 in 2006.

Through a series of interviews with relevant institutions such as FAO and MoA, the above conditions can

be considered a result of a combination of factors including the following:

Insufficient access to water that is under the control of Israel

Shrinking arable land area due in part to encroachment of Israeli settlers

Inadequate access to transportation and cold chain transportation infrastructure (including

transport-related restrictions imposed by Israel)

Lack of access to market-related information

Lack of storage capacity and safe fertilisers

Lack of access to funds

Insufficient capacity within the MoA

3.7.2 Priority Issues

(1) Change to market oriented agriculture

Globalization of agriculture markets is a good opportunity for the farmers and agroindustry. Value added

products in terms of quality, price and other aspects tend to be competitive in the globalized market.

Unfortunately, product cost of Palestinian agriculture tends to be higher compared with neighboring

countries while its quality tends to be lower due to the lack of cold chains. It is necessary for both

Palestinian farmers and the agroindustry to rethink market oriented agriculture, developing sales strategy

and considering the needs of different target markets.

(2) Improvement of postharvest

Loss of produce postharvest due to a shortage of refrigerated facilities and storage for agricultural

products is a serious problem. It is necessary to develop systems and infrastructure for food storage and

distribution including cold chains.

(3) Management and development of alternatives of agricultural resources

It is necessary to utilize the limited resources for agriculture under the Israeli occupation and control of

natural resources. For the purpose of increasing productivity, efficient use of existing resources and

technologic innovation are needed including reuse of treated wastewater and decrease of water leakage.

Considering the constraints of importing chemical fertilisers and pesticides due to the security concerns of

Israel, alternative approaches such as introducing and expanding organic farming and compost should be

promoted.

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(4) Collaboration with agro-industry including JAIP

From the view points of both promotion of export and food security, it is important to improve and

expand food processing which has competitiveness in the international market and/or in the domestic

market. Opening of Jericho Agro-industrial Park (JAIP) will be a positive step for accelerating the food

processing industry.

3.8 Tourism

3.8.1 Present Situation

(1) Tourism Resource

Palestine owns rich tourism resources. Represented by Bethlehem or Jericho, there are many attractive

tourism sites for people of all interest, ranging from historical resources such as churches and mosques to

natural resources such as the Dead Sea and wild animals. Main tourism activities include Islamic and

Christian pilgrimage, bird watching, Arabic cultural experience and Dead Sea tours. Not only local

tourism resources or heritages attract people, but also religious and historical links with neighboring

countries. Concretely, churches, cathedrals, mosques, paths or historical heritages in the Bible, Roman

Empire, Islamic history and other holy stories are dispersed not only throughout Palestine but also in

neighboring countries including Israel, Jordan and Egypt.

(2) Tourism Statistics

Main domestic indicators in the tourism sector in 2011 are summarized in Table 3.8.1. This depicts

different seasonal trends in tourists by region: Guests throughout the whole of Palestine are distributed

almost evenly in every quarter but it seems there was a smaller number of guests in the third quarter. The

West Bank shows a similar trend and one can find that the majority of all the tourists in Palestine visit the

West Bank.

Table 3.8.1 Tourism Sector Indicators in Palestine by Region and Quarter, 2011

PSE West Bank Gaza 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

No. of Nights 297,993 340,573 254,313 361,617 296,496 339,178 251,914357,92

11,497 1,395 2,399 3,696

No. of Guests 134,244 131,975 106,786 137,430 133,543 131,336 105,888136,60

5701 639 898 825

Average No. of Beds

11,029 11,228 12,016 12,480 10,316 10,367 10,833 11,297 713 861 1,183 1,183

Average No. of Rooms

5,257 5,388 5,708 5,758 4,858 4,896 5,081 5,131 399 492 627 627

No. of Hotels 101 99 99 103 91 87 87 91 10 12 12 12

Source: PCBS

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About a half of the total guest nights in Palestine in 2011 are contributed by European countries and guest

nights by domestic tourists come next (Figure 3.8.1).

European Union, 37.4

Other Europe, 16.7Palestine,

11.3

Asia, 10.3

U.S.A & Canada, 8.8

Israel, 5.9

Africa, 4

Central & South America, 3.2

Arab countries, 1.6Australia & New

Zealand, 0.8

Source: PCBS

Figure 3.8.1 Guest Nights in Hotels by Nationality (%), 2011

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Table 3.8.2 Arrivals of Non Resident Tourists/Visitors, Departures and Tourism Expenditure Country Items 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Arrivals 310 43 33 37 56 88 123 264 387 396 522

Tourism expenditure in the country

Travel 283 37 38 152 115 119 89 212 269 410 667Inbound

Passenger transport

Departures

Tourism expenditure in other countries 316 397 395 387 409 263 306 447 545 493

Travel 309 384 388 378 401 254 303 436 535 485 578

PSE

Outbound

Passenger transport 7 13 7 9 8 9 3 11 10 8

Arrivals 5,116 4,357 4,906 5,746 7,795 8,244 8,646 10,610 12,296 11,914 14,051

Tourism expenditure in the country 4,657 4,119 4,133 4,704 6,328 7,206 8,133 10,327 12,104 11,757 13,633

Travel 4,345 3,800 3,764 4,584 6,125 6,851 7,591 9,303 10,985 10,755 12,528Inbound

Passenger transport 312 319 369 120 203 355 542 1,024 1,119 1,002 1,105

Departures 2,964 3,074 3,330 3,644 5,210 5,307 4,531

Tourism expenditure in other countries 1,206 1,248 1,309 1,465 1,543 1,932 2,156 2,886 3,390 2,941 2,696

Travel 1,072 1,132 1,266 1,321 1,257 1,629 1,784 2,446 2,915 2,538 2,240

EGY

Outbound

Passenger transport 134 116 43 144 286 303 372 440 475 403 456

Arrivals 2,417 1,196 862 1,063 1,506 1,903 1,825 2,067 2,572 2,321 2,803

Tourism expenditure in the country 4,611 2,854 2,426 2,473 2,908 3,427 3,334 3,789 5,030 4,332 5,474

Travel 4,114 2,560 2,145 2,132 2,476 2,866 2,794 3,136 4,279 3,741 4,768Inbound

Passenger transport 497 294 281 341 432 561 540 653 751 591 706

Departures 3,530 3,561 3,273 3,299 3,614 3,687 3,713 4,147 4,207 4,007 4,269

Tourism expenditure in other countries 3,733 3,887 3,322 3,341 3,663 3,780 3,870 4,251 4,445 3,869 4,433

Travel 2,804 2,945 2,543 2,550 2,796 2,895 2,983 3,260 3,439 2,909 3,413

ISR

Outbound

Passenger transport 929 942 779 791 867 885 887 991 1,006 960 1,020

Arrivals 1,580 1,672 2,384 2,353 2,853 2,987 3,225 3,431 3,729 3,789 4,557

Tourism expenditure in the country 935 884 1,254 1,266 1,621 1,759 2,426 2,754 3,539 3,471 4,018

Travel 723 700 1,048 1,062 1,330 1,441 2,060 2,311 2,943 2,911 3,413Inbound

Passenger transport 212 184 206 204 291 318 366 443 596 560 605

Departures 1,625 1,755 1,276 1,229 1,420 1,523 2,139 2,094 1,972 2,054 2,917

Tourism expenditure in other countries 387 420 504 503 585 653 956 1,024 1,140 1,202 1,605

Travel 350 378 453 452 524 585 837 883 1,004 1,064 1,431

JOR

Outbound

Passenger transport 37 42 51 51 61 68 119 141 136 138 174

Arrivals 742 837 956 1,016 1,278 1,140 1,063 1,017 1,333 1,844 2,168

Tourism expenditure in the country 742 837 6,782 5,931 5,969 5,457 5,796 6,317 7,157 8,174

Travel 4,284 6,374 5,411 5,532 4,981 5,216 5,819 6,774 8,012Inbound

Passenger transport 408 520 437 476 580 498 383 162

Departures

Tourism expenditure in other countries 3,319 3,719 3,565 3,783 3,914 4,297 4,928 5,080

Travel 2,683 2,943 3,170 2,908 3,006 3,114 3,564 4,012 4,734

LBN

Outbound

Passenger transport 376 549 657 777 800 733 916 346

Arrivals 2,100 2,192 2,661 2,598 3,399 3,571 4,231 4,158 5,430 6,092 8,546

Tourism expenditure in the country 877 1,883 2,035 2,113 2,972 3,176 3,781 6,308

Travel 1,082 1,150 970 773 1,800 1,944 2,025 2,884 3,150 3,757 6,190Inbound

Passenger transport 104 83 91 88 88 26 24 118

Departures 3,863 3,492 3,299 3,997 4,309 4,564 4,042 4,196 5,253 5,215 6,259

Tourism expenditure in other countries 734 688 584 585 710 912 980 1,598

Travel 669 670 760 700 650 550 540 645 800 882 1,510

SYR

Outbound

Passenger transport 34 38 34 45 65 112 98 88

Source: World Tourism Organization *Unit: Thousands (Arrival and Departure), Million USD (Tourism expenditure in the country, Travel and Passenger transport)

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Tourism expenditures by inbound tourist to Palestine had decreased sharply after 2000, and then

remained low for the next six years, while expenditures by outbound Palestinians had increased during

that period. However, recent sharp increase of inbound tourists changed the above tendency and produced

a trade surplus in the tourism sector.

Table 3.8.3 summarized the purposes of the visits of tourists. Inbound tourists tend to visit central and

southern areas so that many of them are pilgrims who visit famous religious places in the areas.

According to Table 3.8.4, many domestic tourists visit different areas for the purpose of visiting relatives

and friends. There are various kinds of visit purposes in different entities.

Table 3.8.3 Purpose of Visit of Tourist, 2009 West Bank

Purpose of Visit Jerusalem South Central North Total of WB

Entertainment 56.3 47.4 51.6 92.1 56.6

Visit relatives and friends 3.2 6 7.1 1.7 4.8

Work and official mission 2.1 2.4 1.9 1 2.1

Pilgrims 34.3 38.2 34.2 1 31.6

Training 2.7 1.5 1.1 0 1.6

Others 1.4 4.5 4.1 4.2 3.3

Total 100 100 100 100 100Source: PCB

Table 3.8.4 Purpose of Travel of Domestic Tourist, 2010

West Bank Purpose of Visit Gaza

South Central North Total of WB

Total of Palestine

Entertainment 11.3 21 43.5 8.8 27.5 26.6

Visit relatives and friends 69 72.7 47.2 76.7 62.2 62.6

Work and official mission 19.7 6.3 9.3 14.5 10.3 10.8

Total 100 100 100 100 100 100Source: PCBS

Inbound tourists to Palestine tend to visit not only in Palestine but also neighboring countries

simultaneously. The tendency of increased inbound tourist to the region such as Jordan and Egypt in

Table 3.8.2 suggests that tourists enjoy excursion of the Middle East region including Palestine. In

addition, tourists who travel in both Palestine and neighboring countries tend to stay in Palestine longer

than tourists who travel only in Palestine.

Table 3.8.5 The Number of Days in Palestine of Inbound Tourists, 2009

West Bank Jerusalem

South Central North Total of WB

Palestine only 3.2 3 4.9 5.1 3.8

Palestine + Neighboring Countries 7 8.5 9.3 5.5 7.8Source: PCBS

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Expenditures of inbound tourists to Palestine tend to be smaller than other MENA countries. Most of the

inbound tourists enter into Palestine by land transportation from Israel or Jordan, because there is no other

international gateway in Palestine. This implies that many of them stay in Israel and Jordan and visit

Palestine using a one day tour, so that they do not spend much time or money in Palestine.

Table 3.8.6 Entry Method of Inbound Tourists (2005)

West Bank Gaza

South Central North Total of WB Total of Palestine

Airport 0 10.4 28.3 5.1 12.3 10

Port 0.5 0 0 4.9 2.6 2.2

Land 99.5 89.6 71.7 90 85.1 87.8

Total 100 100 100 100 100 100Source: PCBS

However, the ratio of inbound tourist expenditures over total GDP in Palestine is relatively high. Figure

3.8.2 plots inbound tourists standardized by GDP of the main MENA members in order to see how much

the sector contributes to additional value production. The figure shows the decrease in tourists in 2000,

however, reveals that travel expenditures in Palestine contributed to GDP as much as that in Egypt,

which is well known as a tourism-oriented country. Therefore, tourism has become one of the major

GDP contributing sectors in Palestine, although inbound tourist expenditures are lower than

neighboring countries. In fact, the tourism sector is successful in job creation with 1,534 male and

261 female workers in annual average only in hotels in 2010.

0

5

10

15

20

25

30

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

%

Year

PSE EGYISR JORLBN SYR

Source: World Bank

Figure 3.8.2 Inbound Travels Expense over GDP

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Hotel conditions in Palestine have been improved gradually with an increase of the number of hotels and

rooms. Table 3.8.7 summarizes the number of hotels, rooms, beds, guests and nights in different areas in

Palestine in 2010. Many of the tourists concentrated in Jerusalem and Bethlehem. Average stay in

Palestine was around two days regardless of the area.

Table 3.8.7 Number of Hotels, Rooms, Beds, Guests and Nights (2010)

Area Hotel Room Bed Guest Night

WB North 7 164 361 15,660 23,544

WB Central 26 1,060 2,343 95,600 213,369

Jerusalem 29 1,497 3,263 263,732 524,093

WB South 25 1,868 4,001 201,167 522,172

Gaza 8 340 575 1,224 2,483

Total in Palestine 95 4,929 10,543 577,383 1,285,661Source: PCBS

In 2011, most hotels were equipped with air conditions, heaters, private bathrooms, telephones, and TVs.

Only 50% of hotels are equipped with the Internet in Palestine.

Table 3.8.8 Facilities in Hotels, December 2011

Internet Air

condition Heaters

Private Bathroom

Radio Telephone Refrigerator T.V.

PSE 51% 93% 96% 96% 6% 91% 66% 91%

West Bank

46% 93% 97% 97% 6% 91% 63% 91%

Gaza 88% 91% 91% 92% 9% 92% 89% 92%Source: PCBS

Table 3.8.9 shows the comparisons of selected hotel indicators compared with 1999 before the second

intifada. Generally, the number of guests had deceased since the second intifada until 2005. However, the

number changed to an increasing trend since 2005, and have been beyond the values of 1999 since 2008.

Nevertheless, it is necessary to note that the number of guest nights seems to be a relatively lower increase

than the rapid increase of the number of guests. This means that average guest nights in Palestine seems to

have decreased.

Table 3.8.9 Changes of Hotel Indicators Compared with 1999

Percentage change compared with 1999 Indicator Value as of 2010

2001 2003 2005 2007 2008 2009 2010

Hotel 95 -7.7 -15.4 -15.4 -9.9 -5.5 9.9 4.4

Worker 1,795 6.7 -12.3 -6.5 -7.3 -1.3 11.1 32.6

Guest 577,383 -81.0 -80.2 -58.4 -0.3 40.8 42.8 82.2

Guest Night 1,285,661 -79.4 -77.7 -60.9 -24.8 25.9 16.4 43.6

Room Occupancy 35.4% -72.5 -65.1 -53.7 -25.1 7.2 -3.0 5.7

Bed Occupancy 33.4% -75.9 -73.6 -59.1 -31.0 7.6 -4.0 10.2Source: PCBS

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3.8.2 Priority Issues

(1) Tourism Promotion in collaboration with neighboring countries

Palestine has common cultural and historical tourism resources with neighboring countries. It is important

to utilize tourism resources in neighboring countries as a part of the tourism products of Palestine. The

increased number of tourist to the Middle East region should be beneficial not only to a single country but

also to other countries, because these tourists tend to visit not only one country but also neighboring

countries in accordance with their travel theme. Thus, regional collaboration in the tourism sector is

essential to maximize profit from tourism. Especially, cooperation and collaboration between Palestine

and Israel is important for tourism.

(2) Identifying tourism potentials in Palestine and developing tourism products

There are a number of potential tourism resources in Palestine which might not be discovered yet. Needs

of both domestic and inbound tourists are different. For the purpose of tourism promotion, tourism

products must be developed considering the different needs of the tourists through preference analysis of

the segmented tourists and marketing on those grounds.

(3) Upgrading tourism infrastructure

There is huge gap in the tourism infrastructure between Israel and Palestine. Investment in tourism sites

including rehabilitation of antiquities and construction of infrastructure is essential to improve the

attractiveness of Palestinian tourism resources. As a part of industrial development concerning tourism,

both the PA and the private sector need to invest in tourism infrastructure development in collaboration.

(4) Institutional and capacity building in the public and private sectors for tourism promotion

Awareness building of the importance of tourism for industrial development in Palestine should be done

in both the public and private sectors, including local communities. Continuous capacity and institutional

building of MOTA, the tourism industry and civil society is needed concerning tourism development and

promotion.

3.9 Transportation

3.9.1 Present Conditions

(1) Major Infrastructure for Transportation

Palestine is located on the crossroad of the civilizations between the East and the West. Also, Palestine is

positioned on the 2,228 km long M40 road proposed by UNESCWA as an international corridor

according to the Agreement on International Roads in Arab Mashreq, which consists of Iraq, Jordan,

Palestine and the Mediterranean Southern Coast.

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Source: Study Team based on information from UNESCWA

Figure 3.9.1 Road Networks in Palestine

International transport of passengers and goods to and from Palestine is an essential pillar, which

invigorates and develops the economy and achieves economic integration in the region. Due to the Israeli

occupation, however, most Palestinian international gateways, including main roads and border facilities,

are fully controlled by Israel.

There are two airports in the Palestinian territory. One is the Jerusalem-based Qalandiya Airport which is

under Israel's control and Palestinians are prevented from rehabilitating or using it. The other is Gaza

International Airport (Yasser Arafat International Airport) in Gaza Strip. The Airport was opened in 1997

funded by donors including Japan, EU and Morocco, and had international flights to Egypt, Morocco and

other countries. After the second intifada, however, the Airport was destroyed by the Israeli forces in

2001. Palestine has had no aerial transportation since then.

Palestine lacks a maritime transport system because sovereignty over territorial waters is restricted by the

Israeli occupation, although Gaza Strip faces the Mediterranean Sea. Due to the second intifada, the Gaza

Port construction project ceased and the completed structures were destroyed by the Israeli forces. There

are only a few wharfs for coastal fishing.

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Source: Study Team based on information from Ministry of Transportation

Figure 3.9.2 International Gateways and Road Networks in Palestine

There are a number of international crossing points for land transport between Palestine and neighboring

countries. Most of the points are located at the borders with Israel including ones inside the Palestinian

territory, and are controlled by Israel. In the West Bank, the only international crossing point with Jordan

is the Allenby Bridge Crossing. The border facility at the crossing point, in fact, is fully controlled by

Israel. In addition to the Allenby Bridge, Damiya Bridge was an alternative gateway between Palestine

and Jordan. However, the Bridge has not been in use since 2005 due to the poor condition of the

carriageway.

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In Gaza Strip, there are only three crossing points as of June 2012. Eriz Crossing is located in the North

Gaza governorate and is the only gateway to and from Israel for persons and open six days a week for the

movement of aid workers and a limited number of authorized Palestinians including businessmen with

permits and medical and humanitarian cases. Kerem Shalom Crossing is located in Rafah governorate

and is the only gateway to and from Israel for goods and is open five days a week for movement of

authorized goods. Rafah Crossing is the only official gateway with Egypt, although there seem to be

thousands of tunnels between Egypt and Gaza for illegal trade. After the awakening of Arab Spring and

the change of Egyptian government, the Crossing is open six days a week for the movement of authorized

persons.

Within Palestinian territory, the existing road network has a total length of 6,335 km including Israeli

controlled roads in the West Bank and 770 km in Gaza Strip as of 201133. Approximately 25 percent of

Palestinian controlled roads are unpaved while all of Israeli controlled bypass roads for the settlers are

paved. Comparing with the neighboring countries, the proportion of paved roads in Palestine in 2009 is

slightly lower than the average of the MENA region. However, it is much lower than Egypt (89%),

Jordan (100%) and Israel (100%).

(2) Transportation for Passenger and Goods

In the West Bank, lack of a public transportation system connecting the municipalities is a serious

problem in the movement of people. Due to the tighter movement restrictions after the second intifada,

there are a smaller number of intercity public transportation methods such as buses. The following table

shows the transportation lines from Ramallah. However, these buses are operated without a regular

timetable or routes, so that people tend to use taxis or shared-taxis with higher cost instead of public buses.

Lack of a public transportation system with reliable cost tends to be an obstacle to not only commuting

between cities and rural areas, but also easy access to the tourism sites by tourists.

Table 3.9.1 Transport Lines from the Governorate of Ramallah and Al Bireh

Governorate distance(Km)

number ofservice

number of transport(one way/per

number of buscompany

number ofbuses

number of transport(one way per bus)

Nablus 54 116 4 1 25 3Tulkarem 83 27 5 2 10 2

Jenin 100 60 2 1 5 2Tubas 80 3 2 1 2 2

Qalqelia 83 22 4 1 2 2Salfit 50 25 3 1 3 2

Hebron 81 133 2 1 3 2Bethlehem 55 106 2 1 1 2Abu Deis 33 51 6 0 0 0Jericho 40 70 4 1 4 3

Al Ezareyeh 60 15 6 0 0 0AlRam 6 158 8 0 0 0

Source: Study Team based on information from Ministry of Transportation

33 Roads and Transportation General Directorate, Ministry of Transport (MoT)( 2011)

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The Allenby Bridge is the only gate between the West Bank and Jordan. The Palestinian passport holders

in the West Bank can be allowed entry and departure only through this border. However, they must

undergo many security checks by the Israelis and the immigration has become a long procedure before

crossing the border. Figure 3.9.3 indicates the number of Palestinians crossing the border through the

Allenby Bridge in recent years. Despite the long procedures for immigration, the number of passengers

tends to increase and more than 600,000 Palestinians pass (enter or depart) over this bridge.

0

100000

200000

300000

400000

500000

600000

700000

2006 2007 2008 2009 2010 2011

enter

depart

Source: Study Team based on the data from Liaison office in Jericho

Figure 3.9.3 Passenger Movement on the Allenby Bridge, 2006-2011

Table 3.9.2 shows the distribution of passengers on the Allenby Bridge in 2011. Approximately 76% of

the people crossing the border are Palestinian passport holders, 14% are Tourists, 7% are Palestinians

who have East Jerusalem ID and 3% are Israelis. This means more than 80% of the total passengers are

Palestinians. As shown in Figure 3.9.3, the number of people crossing the border tends to increase and the

capacity of the border facilities will come to its limit in the near future. In addition, the Palestinians who

have an East Jerusalem ID have other countries’ passports such as Jordan passports. Therefore, their

border crossing procedures are different from the formalities for Palestinians in the West Bank and they

are the same as for the Israelis and for the other foreigners

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Table 3.9.2 Distribution of Passenger Crossing on the Allenby Bridge by Month, 2011

Ent. Dept. Ent. Dept. Ent. Dept. Ent. Dept. Ent. Dept. Ent. Dept.Jan. 152 174 10,048 5,620 37,995 37,485 5,061 3,719 221 132 53,477 47,130 100,607Feb. 154 134 11,857 5,970 31,805 32,900 2,897 3,246 214 83 46,924 42,333 89,257Mar. 1,021 1,871 14,911 8,256 34,540 35,987 3,633 3,749 114 110 54,219 49,973 104,192Apr. 11,062 11,584 14,156 8,726 42,933 45,453 6,448 7,383 166 87 74,765 73,233 147,998May 1,556 157 13,941 6,855 43,509 37,720 5,248 4,395 363 327 64,617 49,454 114,071June 220 971 14,410 6,543 72,365 74,252 5,798 7,614 222 140 93,015 89,520 182,535July 6,648 5,853 14,177 9,455 114,353 109,319 12,146 11,228 417 186 147,741 136,041 283,782Aug. 3,445 3,393 9,426 5,897 57,629 63,439 5,040 4,628 204 47 75,744 77,404 153,148Sept. 97 106 9,877 6,601 57,445 64,732 5,322 4,941 150 73 72,891 76,453 149,344Oct. 278 4,545 12,109 6,141 36,226 41,755 4,083 4,645 268 209 52,964 57,295 110,259Nov. 4,458 104 12,958 7,766 52,870 52,033 5,521 4,819 136 123 75,943 64,845 140,788Dec. 163 131 9,652 6,491 33,613 34,532 4,062 4,695 306 205 47,791 46,054 93,845Total 29,254 29,023 147,522 84,321 615,280 629,607 65,259 65,062 2,776 1,722 860,091 809,735 1,669,826

Jerusalem Visa Visits Total OverallTotalMonth

Israeli Passport Tourism Palestinian Passport

Source: Study Team based on the data from Liaison office in Jericho

* Ent.: Entrance, Dept.: Departure

The export and import trade with Jordan has been transported over the Allenby Bridge. Trucks used by

traders are mostly the vehicles that are registered in East Jerusalem and traders can bring up their cargos

directly to Allenby Bridge. However, the cargos must be transshipped at the border due to concerns

regarding security issues and some times it takes several hours. This situation has caused a problem for

the cold chain. Figure 3.9.4 is the truck movement on the Allenby Bridge and it shows the significant

increase of import and export in the past two years.

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2006 2007 2008 2009 2010 2011

export

import

Source: Study Team based on the data from Liaison office in Jericho

Figure 3.9.4 Truck Movement on the Allenby Bridge, 2006-2011

In Gaza, the blockage by Israel has seriously affected transportation in the area since the second intifada

and the war on Gaza. The tighter restrictions are well expressed in the shrinkage of the total truckloads per

year in Gaza Strip (Figure 3.9.5).

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0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Truc

ks

Year

Export

Import

Source: Study Team based on information from UNOCHA

Figure 3.9.5 Total Truckloads per Year in Gaza, 2000-2011

3.10 Energy

3.10.1 Present Conditions

(1) General conditions

Energy sources consist of 3 components; (1) the energy generated by petroleum and natural gas

derivatives, (2) electricity and (3) renewable energy including solar power, wind power, and energy

generated from burning wood, peat, etc. Regarding the proportion of use of primary energy resources in

2007; petroleum represented 62%, electricity represented 19%, and renewable energy represented 19% of

total use. In 2010, this proportion changed; the petroleum proportion decreased to 51% and the electricity

proportion increased to 31%. In comparison with neighboring countries, the proportion of total imported

energy is almost the same as neighboring countries. For example, imported energy in Palestine was about

82% of total energy used in 2010 and 83% for Israel in 2009. Jordan imported about 96% of total energy

used in 2009, while Egypt exported energy. The same as neighboring countries, except Egypt which has

natural resources, Palestine is dependent on imported energy.

(2) Electricity

Some 99.8% of Palestinian households were connected to public electricity. However, 89% of electricity

used is imported from Israel. In the West Bank, 100% of the electricity is imported from abroad in which

98% is from Israel with the remaining 2% imported to Jericho from Jordan. In Gaza Strip, approximately

20% of electricity is produced by the Palestine Electric Company having a power plant in Gaza City.

However, due to the lack of adequate infrastructure and fuel, the production of electricity is less than the

allowable power generation capacity of this plant and the price of the production is expensive because the

production relies on imported diesel fuel.

Intensification of restrictions in the West Bank(2000-2002)

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Table 3.10.1 Quantity of Electricity Purchases (MWh) in 2010

Israeli Electricity Company

Palestine Electric

Company Egyt Jordan Total

West Bank 2,871,403 - - 48,383 2,919,786

Gaza strip 1,084,198 304,985 144,864 - 2,919,786

Palestinian Territory 3,965,601 304,985 144,864 48,383 4,463,883Source: PCBS, Palestinian Energy and Natural Resources Authority 2010, Unpublished Data. Rammallah

(3) Other energy

The use of renewable energy, especially solar power, is very low in comparison to available capacities.

Only 8% of the total energy consumption was solar power in 2010. Biogas also not yet utilized. As of

January 2011, about 64% of Palestinian households utilized solar energy. The solar energy is mainly

utilized for water heating. Wood and Agricultural Biomass are also utilized for water heating and for

cooking. Potential of wind energy is relatively small but there is one example using wind energy for a

Hospital in Hebron.

As a possible energy development, oil shale is available in substantial quantity. Natural gas resources are

also available in the Mediterranean Sea off the Gaza coast. However, development of these resources is

not politically feasible, at least at the moment. Renewable energy development might be more feasible.

3.11 Water and Wastewater

3.11.1 Present Conditions

Water shortage is a major concern in Palestine that has considerable economic (e.g., agricultural

production), social (e.g., healthcare), and environmental (e.g., water contamination) implications. Further,

wastewater is ill-treated due mainly to the lack of infrastructure, causing various environmental and social

problems.

The low water consumption level can be explained mainly by focusing on the supply side. The territory’s

water is in effect controlled by Israel and the share of water available to Palestine is limited in the first

place. Further, the two water sources in Palestine, underground and surface (river) waters, are showing a

decline in amount and deterioration in quality. Water loss is also significant. The poor wastewater quality,

on the other hand, is due to insufficient sewage network and inadequate treatment plants in the territory.

Against this background, the PA has set concrete policies and objectives, as well as numerical targets to

be achieved to address the situation under the Program of the Thirteenth Government (2009), National

Development Plan 2011-2013 (NDP 2011-2013), and Water and Wastewater Sector Strategy.

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(1) Water Resources

According to the Water and Wastewater Sector Strategy (2011-13), the volume of water resources in the

territory of Palestine, including Area C, is 2,989 mcm34 per year. A little more than half of the amount is

derived from surface water (1,535 mcm) and the rest comes from ground water (1,454 mcm). In the West

Bank, ground water is derived from three main aquifer basins: the Western Basin; North eastern Basin;

and Eastern Basin.35 Gaza, on the other hand, relies solely on the coast aquifer.36 Over 90% of the surface

water in Palestine (effectively, West Bank) is derived from Jordan River and the remaining 10%

originates in rain water.

Source: ARIJ 200937

Figure 3.11.1 Ground Water Aquifers

While 85% of the total water resources in Palestine is said to be usable for domestic, agricultural, and

industrial purpose, the amount of water that is permitted for use is only 271 mcm, or 11% of it.

Palestinians are allowed to exploit less than 15% of the renewable groundwater in the three aquifers in

West Bank which is estimated to be 669 mcm per year36.

34 mcm refers to million cubic meters 35 Japan International Cooperation Agency (JICA), 2006. Jericho Regional Development Study Project in Palestine Final Report: Main Report’ 36 Water and Wastewater Sector Strategy 37 Applied Research Institute – Jerusalem (ARIJ), 2009. A Geopolitical Atlas of the Occupied Palestinian Territory.

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In fact, Palestinian per capita water consumption is estimated to be 50-70 l/day, a level far below the

WHO minimum standard of 100 l/day38. In some areas, the average of water consumption per capita is as

little as 20 l/day which is the minimum required amount by WHO for “short-term survival” in

humanitarian disasters. It is also significantly lower compared to the neighboring countries as shown in

Figure 3.11.2 and Figure 3.11.3. In contrast, per capita water consumption in Israel exceeds 300 l/day and

Israeli settlers in the West Bank consume five times more water than Palestinians38.

The valuable water resources are not fully utilized in Palestine. According to the Water and Wastewater

Sector Strategy (2011-13), the ratio of water supply to households is high (88%). Nevertheless, water loss

is also said to be as high as 37%.

The water supply situation in the Gaza Strip is extremely bad. The intermittent electricity and fuel

shortages affect the stable supply of water. The following are examples of the water supply situation in

May 201239.

40% of the Gaza Strip population receive water supply (for 6 to 8 hours) once every 4 days.

35% of the Gaza Strip population receive water supply (for 6 to 8 hours) once every 3 days.

15% of the Gaza Strip population receive water supply (for 6 to 8 hours) once every 2 days.

10% of the Gaza Strip population receive water supply (for 6 to 8 hours) once a days.

The lack of adequate sanitation and access to safe water are causing the health problems such as diarrhea

and other infection diseases.

As shown in Figure 3.11.2, the percentage of urban population who have access to improved water

source40 has been decreasing year by year. In 1995, the access to an improved water source40 had been

100% secure for all urban population. However, in 2010, it has decreased to 86% which is a low rate

compared to neighboring countries. This figure could show that the water resource development has been

lagging behind the increase of the population and needs. As shown in Figure 3.11.3, a similar trend can be

observed in rural areas.

38 Passia, Water in Palestine (2003) 39 www.ewash.org 40 Access to an improved water source refers to the percentage of the population with reasonable access to an adequate amount of water from an

improved source, such as a household connection, public standpipe, borehole, protected well or spring, and rainwater collection.

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80

82

84

86

88

90

92

94

96

98

100

1990 1995 2000 2005 2010

%

Year

PSE EGYISR JORLBN SYRLMC MEA

Source: JMP 201241

Figure 3.11.2 Percentage of Urban Population with Access to Water Source

60

65

70

75

80

85

90

95

100

1990 1995 2000 2005 2010

%

Year

PSE EGYISR JORLBN SYRLMC MEA

Source: JMP 201241

Figure 3.11.3 Percentage of Rural Population with Access to Water Source

According to PCBS (2012)42, approximately 74% of the water came from Palestinian wells and 8% from

the springs in 2010. The remaining 18% was purchased from the Israeli water company, Mekorot at a

high price. The share of water consumption between West Bank and Gaza was 46% and 54%,

respectively. The following figures show the source of water and amount that was available in 2010 in

West Bank and in Gaza Strip.

41 JMP WHO / UNICEF Joint Monitoring Programme (JMP), 2012. 42 Palestinian Central Bureau of Statistics (PCBS), 2012. (available at: http://www.pcbs.gov.ps/Portals/_pcbs/Water/Water_Tabel_E_tab2.htm).

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Source: PCBS 2012

Figure 3.11.4 Available Water Quality by Source in Gaza Strip (annual; m3)

Figure 3.11.5 Available Water Quality by Source in West Bank (annual; m3)

Water availability improvement does not appear promising when having a look at the natural conditions.

In Gaza, drinkable water is expected to disappear in the next 15 years due to excessive water extraction

from the aquifer38. Water flow in the regional rivers has also shown a 50 to 90% reduction from 1960 to

2010. If the trend continues, water security becomes an even more critical issue for Palestine.

The legal and institutional framework in Palestine has been extremely weak since the signing of the

Declaration of Principles and the 1995 Interim Agreement. Water distribution and its quality are both

poor and the roles and responsibilities of relevant institutions are scattered and unclear38. The Palestinian

Water Authority (PWA) is mandated to regulate and manage all Palestinian water resources including

transboundary water resources. Nevertheless, as mentioned above, all water resources in the West Bank

and Gaza Strip are under the control of Israel.

In 1995, the Joint Water Committee was established under the Oslo II Accords between the two

authorities. However, there is no provision based on Palestinian needs for water resources such as its

water rights and allocation43. Only a limited number of wells have been developed to date since then35. On

the other hand, some well owners are unable to access their own well because of the separation wall. It is

considered that a strong institution ought to be built as the first step to change the status quo that is in the

Palestinian view, unfair, unjustifiable, and a clear violation of International Law38.

(2) Wastewater

Wastewater coverage is insufficient in both the West Bank (32-35%) and Gaza (65%). There is only one

wastewater treatment plant located at Al-Bireh in the West Bank. Three treatment plants are installed in

Gaza (Beit Hanoun, Beit Lahia and Gaza City). In the West Bank, less than 5% of the total generated

wastewater is treated inside of the West Bank, the remaining wastewater is treated by the wastewater

43 Interview with PWA on April 26, 2012.

Mekorot (55.4) Palestinian Wells (71.6)

Springs (26.8) Palestinian Wells

(172.4)

Mekorot (4.9)

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treatment plant in Israel. The Palestinian Authority had to pay Israel for the contribution of the wastewater

treatment services which represented more than 400 million yen between 2002 and 2010. Normally, the

citizens who benefit for a public service have to pay their contribution as well as a water charge including

the wastewater treatment. However, the utility charges system for wastewater treatment is not well

established in Palestine. Besides them, there are several collection ponds and older plants but they are not

properly maintained, giving way to health problems38. In Gaza Strip, as much as 90 million liters44 of

untreated waste water are discharged into the sea every day, causing damage to the marine ecosystem.

3.11.2 Priority Issues

(1) Secure budget, new technology and human resources for water resource development

With limited water resources, improvement of the efficiency of mainly domestic, industrial and

agricultural water use is highly desired. Also, introducing new technologies such as desalination of

seawater and brackish water, and wastewater treatment is important. For the sustainable maintenance and

development of water resources, it is important to secure sufficient budget. While secure access to water

supply and sewerage services is necessary for all citizens, it is necessary to setup a system for collecting

fees from the beneficiaries of the services. Development of human resources is also important. Capacity

building of managers and operators of these facilities and systems are critical issues in conjunction with

the development of facilities and systems.

(2) Construction of wastewater treatment plants

In Palestine, wastewater coverage is insufficient and untreated wastewater is causing environmental

pollution and health problems. In addition, much of the wastewater collected by the sewage network is

flowing into Israel and is treated by the wastewater treatment plant in Israel. Considering the expensive

fees charged by Israel and state building, it is important to construct sustainable wastewater treatment

systems within Palestinian territory, including cost recovery systems. Depending on the needs with

changes in society as well as rapid population growth, development of wastewater treatment plants and

their ancillary facilities is an essential issue in this sector.

(3) Reuse of treated wastewater

Regarding the reuse of treated wastewater, it shall be done very carefully under certain restrictions and

guidance because of health and food safety issues. On the other hand, the anticipation of treated water

reuse is very high for certain particular crops or animal husbandries in agriculture use, for non-potable

water in domestic use, and or industrial use except food processing. For reuse of the treated wastewater,

ensuring adequate safety, relaxation of the restrictions on reuse of treated wastewater and an attitude

change of the users about the treated water are considered as important issue.

44 www.ewash.org

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3.12 Cross Cutting Issues

3.12.1 Environment

Palestine’s natural environment such as water and soil quality and biodiversity is deteriorating due to

ignorance and mismanagement of the PA and Israel45. In view of this situation, PA established the

Environmental Quality Authority (EQA) in 1996 with a mandate to tackle a wide variety of

environmental issues including: desertification; climate change; waste management; and nature

conservation, as well as issues of a cross-organizational nature. After the cabinet reorganization that took

place in May 16, 2012, EQA earned the Ministerial status, a fact that can be translated as a reflection of

the government’s appreciation of the importance in managing its environment.

(1) Water Resources

Groundwater serves as a major water source in Palestine along with Jordan River. Such resources are yet

controlled by Israel, and Palestine is in constant struggle to secure the quantity and quality of water that is

enough for its own people. Groundwater contamination is also a priority issue caused by excessive use of

pesticide, untreated wastewater discharge, and solid waste water penetration.

(2) Solid and Hazardous Waste

Solid waste is thrown into the landfill if not on irregular dumping sites. According to the Environment

Sector Strategy, the amount of solid waste produced in 2008 was 1,861 tonnes per day or 0.7kg per

person per day. Based on the UN statistics, the population ratio enjoying waste collection services in

Palestine has grown from 45.3% in 1998 to 75.1% in 200846.

No inventory survey of Palestinian hazardous wastes has been carried out to date and hence there is no

detailed data available on their origin and types. What UNEP tells us is that there is one land fill site for

hazardous wastes located in Gaza. It is also noteworthy to mention that a pilot medical waste

management project is underway in the Ramallah Governmental Hospital in the West Bank47.

(3) Biodiversity

The number of identified living species in Palestine is approximately 47,000 and an additional 4,000

unrecognized species are considered to exist in the territory. Many of them are decreasing in number and

require protection and resettlement. Nineteen out of 48 natural reserves have been transferred to PA but

many are divided by the separation wall and some were converted to residential areas or military bases.

The number of forests in the West Bank and Gaza are 93 and 13, respectively, totaling 232 km2 of forest

land in Palestine. 45 Environment Sector Strategy 2011-13 46 UN data, 2011. Total population served by municipal waste collection (available at:

http://data.un.org/Data.aspx?d=ENV&f=variableID%3a1878). 47 Environment Sector Strategy 2011-13

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(4) Desertification and Soil Contamination

Desertification is observed in the eastern slopes and regions with annual precipitation of 300 mm or

below, an area that constitutes half of the West Bank. Desertification is caused by a combination of

climate change, grazing, and conversion of agricultural lands, which in turn induce soil degradation and

underground water contamination. Salinization and soil contamination is particularly notable in regions

with a rainfall level of less than 200 mm that is caused as a result of wastewater discharges and excessive

use of pesticide and chemical fertilisers.

(5) Climate Change

According to two documents prepared in 2009 by EQA in collaboration with United Nations

Environment Programme (UNDP), the impact of climate change on Palestine would be considerable.

According to the papers, the effects of climate change on the PA include: temperature rise; drought;

desertification; agricultural productivity loss; wide-spread poverty; social instability; and occurrence of

natural disasters which are all closely linked to PA’s economy and society.

(6) Air Pollution and Noise Damage

Air pollution is severe in the urban area because of an increase in population, high rate of industrialization,

and prevalence of transboundary pollutants. Noise damage, on the other hand, is often caused as a result

of construction works, transportation, and industrial installations.

(7) Marine and Coastal Environment

Solid and fluidized waste disposal, overexploitation, and soil erosion are responsible for the marine and

coastal environmental degradation in Palestine. Also, the water level in the Dead Sea has shown a decline

since 1930. Compared to 20 years ago when the Dead Sea was at its maximum capacity, water level has

decreased by 80 to 100 cm.

3.12.2 Israel Occupation and Restrictions

Palestinian civilians living in the Occupied Palestinian Territory (OPT) continue to bear the brunt of the

ongoing conflict and Israeli occupation. In the West Bank, East Jerusalem is isolated from the rest of the

West Bank. Communities in Area C face a range of pressures including demolitions, settler violence, and

movement and access restrictions that make meeting basic needs increasingly difficult and threaten

Palestinian presence in the area. In the Gaza Strip, Israel continues to impose a land, sea and air blockade

that has significantly undermined livelihoods, and seriously diminished the quality of, and access to, basic

services48.

48 UNOCHA (2011)

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(1) Land Use

Over 60% of the West Bank is considered Area C where Israel retains control over planning and zoning

among other issues, while Palestine can control Area A and partially Area B. An estimated 150,000

Palestinians live in Area C, including 27,500 Bedouin and other herders. Due to zoning, 70% of Area C is

off-limits to Palestinian construction, and 29% is heavily restricted while only 1% is planned for

Palestinian development by the Israeli Civil Administration. Israeli settlement areas in the West Bank, on

the other hand, constitute 39% of Area C. In the Jordan River Rift and Dead Sea area where the most

restricted land use areas are located 87% of the areas belong to Area C. Among them, 56% are closed

military areas, 27% nature reserves, and 15% settlement areas. The figure below shows the closed and

restricted areas in the West Bank.

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Source: UNOCHA

Figure 3.12.1 Restricted Space in the oPt Area C Map

In the Gaza Strip, lands within 500 m of the separation fence have been defined effectively as a No-Go

Zone since 2010, although the Israeli military and settlers withdrew from Gaza in 2005.

(2) Movement Obstacles

Upon the beginning of the second Intifada in September 2000, the Israelis started implementing

comprehensive measures to restrict the freedom of movement of Palestinians within the West Bank. In

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addition to administrative obstacles, physical obstacles such as the separation barrier, checkpoints and

road blocks have limited social and economic activities in the area.

The total number of the various types of obstacles to movement are depicted in Table 3.12.1.Permanent

checkpoints such as permanently staffed checkpoints, barrier checkpoints, partially staffed checkpoints,

and unstaffed obstacles have declined only slightly from January 2010 to February 2012. Meanwhile,

flying checkpoints have been seen randomly over time.

Table 3.12.1 Internal Movement Obstacles in the West Bank, 2010-2012

Checkpoints Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

Permanently staffed checkpoints(not including Barrier Checkpoints)

75 75 74 73 73 73 68 70 69 69 69 68 64 63 63 63 63 63 62 62 62 62 62 62 62 59

Barrier checkpoint 35 35 35 35 35 35 34 34 34 34 34 34 34 34

Partially staffed checkpoints 18 18 18 20 20 20 23 23 23 22 21 22 24 25 25 25 25 25 25 25 25 25 25 25 25 26

Unstaffed obstacles 533 535 540 542 534 534 523 525 500 488 488 484 428 427 429 429 429 429 436 436 436 436 436 436 436 455

Total excluding Barrier checkpoints 626 628 632 635 627 627 614 618 592 579 578 574 516 515 517 517 517 517 523 523 523 523 523 523 523 540

Flying Checkpoints 459 364 468 250 294 439 402 190 758 421 414 513 366 503 454 665 523 477 469 488 406 540 401 385

201220112010

Source: UNOCHA

The number of obstacles increased until 2008 and showed a tendency to decline gradually after that year.

It is reported that there are some 70 villages and communities, with a population of almost 200,000 in

total, that have to use detours. This forces them to take two to five times longer than using a direct route to

the closest city.

376

528561

630 613

504 524

0

100

200

300

400

500

600

700

2005 2006 2007 2008 2009 2010 2011

Num

ber o

f obs

tacl

es

Year Source: UNOCHA

Figure 3.12.2 Total Number of Movement Obstacles, 2005-2011

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Source: UNOCHA

Figure 3.12.3 West Bank Access and Movement Restriction

In June 2002, the government of Israel decided to build a separation barrier between Israel and the West

Bank in order to control entry of Palestinians into Israel. The total length of the barrier including

completed construction, under construction, and construction not yet begun, is 708 kilometers. This

almost amounts to a distance twice as long as the Green Line, which was drawn after the Arab-Israeli War

in 1948.

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Construction of the barrier has made some progress over time. The total length and percentage of

completed construction amounted to 76 kilometers and 11 percent from July 2006 to August 2010 (Table

3.12.2). In fact, around 80% of the walls are constructed within the Green line.

Table 3.12.2 Construction Progress of Barrier, 2006-2010 Unit: kilometres

Construction Progress Length Parcentage Length Parcentage Length Parcentage Length Parcentage

Completed construction 362 51 409 57 434 61 438 62

Under construction 88 13 66 9 60 8 58 8

Construction not yet begun 253 36 248 34 213 30 212 30

Total 703 100 723 100 707 100 708 100

Jul-2006 Apr-2008 Jul-2010 Aug-2010

Source: The Israeli Information Center for Human Rights in the Occupied Territories

3.12.3 Youth

(1) Significance of Youth

The Arab Spring in 2011 showed voices of people requesting democracy and the explosion of frustration

of youth. The political context in Palestine is different from other Arab countries that experienced the

Arab Spring and were characterized as authoritarian regimes. The unemployment rate in Palestine is

much higher than the neighboring countries as described in Figure 3.6.4. Palestine is a young society. The

persons in the 13-29 age category represent 29.1% of the total Palestine population. Unemployment rate

for youth tends to be higher than the older generation. In addition, the Palestinian youth is politicized in

general. Most Palestinian political parties have constituted youth components and arms, especially within

youth and student unions. This results in a lack of opportunity to practice sports and cultural activities due

to the lack of facilities. Only 10.3% of youth enjoy sports. This is an environment in which political

entrepreneurs can mobilize frustrated youth easily.

Increase of users of the Internet and Social Network Systems (SNS), furthermore, makes it easy to

mobilize people, especially the youth, considering the experience of the Arab Spring. In fact, 914,660

persons (35.6%) in the West bank were registered in Facebook as of the end of March 2012, while 58.9%

of the population connect the Internet49. Most of these users seem to be in the young generation. Finding

ways to motivate youth toward participating in peace and development instead of giving vent to the

explosion of their frustration is a significant issue.

3.12.4 Gender

(1) Situation of Women

The participation and leadership of women in both the public and private sectors is increasing. Generally,

social and economic participation of women in Palestine seems to be better than among the other MENA

countries. According to the Arab Human Development Report 2009, adult literacy rate of females was 49 Internet World Stat: http://www.internetworldstats.com/stats5.htm

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88% while males were 96.7%. Palestinian women were in third place in the region following Kuwait and

Qatar, while the Human Development Index of Palestine was 12th place in the region. Concerning higher

education, 8.9% of women under 29 have a bachelor degree or above while it is 7.4% of the men.

According to the government sector strategy and interview with the Ministry of Women’s Affairs

(MoWA), however, there are still gaps between men and women such as participation in decision making.

Also, human rights issues such as gender based violence and early marriage were serious problems.

Concerning development assistance to women, MoWA pointed out problems of weak gender

mainstreaming in other Ministries, concentration of donor assistance to particular women's groups, and

inappropriate intervention such as income generation projects without marketing and gender

consideration.

Chapter 4 JICA's Assistance to Palestine

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Chapter 4 JICA's Assistance to Palestine

4.1 Japan's Assistance Policy and JICA's Assistance to Palestine

4.1.1 Japan’s ODA since 1994

Japan has implemented a number of Official Development Assistance (ODA) projects in Palestine in

various fields in the last 15 years. The amounts of annual ODA by funding scheme from 1994 to 2010 are

expressed in Figure 4.1.1. The figure reveals some of the key findings. First, Japan’s annual ODA amount,

especially Grant Aid, increased at a stable pace, after an attempt to resolve the conflict by Oslo accords

until 2000 and decreased drastically from that year. Apparently the second intifada in September 2000

had caused a negative impact on Japan’s ODA and further restrictions in the West Bank also decelerated

it. Annual ODA amount stayed less than 25 million USD for the five years since 2000. Second, however,

Japan’s ODA recorded a significant rise in 2006. The visit of the Japanese Prime Minister to Palestine in

July 2006 pushed up the ODA amounts. Limited relaxations of restriction in the West Bank also

accelerated it. Third, even though the ODA amount shows rapid rise and fall after that, as a whole, the

ODA amount still shows an increasing trend.

0

10

20

30

40

50

60

70

80

90

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Mill

ion

USD

Year

Grant Aid

Technical Assistance

Total

Source: Study Team based on information from MoFA of Japan

Figure 4.1.1 Japan's ODA for Palestine by Funding Scheme, 1994-2010

4.1.2 Recent Assistance

(1) Assistance Approach

Japan supports a two-state solution whereby Israel and a future independent Palestinian state will co-exist

Early years after Oslo accords (1994-1999)

Intensification of restrictions in the West Bank(2000-2002) Limited relaxation of restrictions in the West Bank

(2003-2005)

Blockage of Gaza Strip (2006-)

Second Intifada (2000)

Israeli army withdrawal from Gaza Strip (2005)

Jericho Regional Development Study Project (2006)

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and prosper together. From this point of view, Japan has been assisting the Palestinians in the following

areas.

“Corridor of Peace and Prosperity (CPP)” Initiative

Assistance for building the future Palestinian state (Focusing on the “Seven Priority Areas”)

Assistance for improving financial conditions

Vitalizing the private sector in the Palestinian territories

Cooperation with East Asian countries for assistance to the Palestinians

Assistance to Gaza strip

Assistance to the Palestinian refugees

Humanitarian Assistance (Food aid)

In the area of ODA, Japan prepared the rolling plan for ODA to Palestine in December 2009 and has

updated it irregularly. The latest rolling plan set three priority areas and eight programs as shown below.

Priority Area 1: Improvement of people’s livelihood including humanitarian aid (Improvement of

water and wastewater programme, Improvement of the health service programme, Improvement

of the education service programme, and Strengthening of the social protection programme)

Priority Area 2: Governance and institution building (Strengthening of the public finance

programme, and Local governance improvement programme)

Priority Area 3: Promote Economic Development (Industrial development programme,

Agriculture development programme, and Tourism development programme)

Each program has a number of projects in various aid schemes, such as technical cooperation, dispatch of

experts, grant aid, and multilateral ODA. Most of the JICA’s projects, indeed, are listed in the

above-mentioned rolling plan.

(2) JICA’s Assistance

JICA established country offices for assistance to the Palestinians at Gaza and Tel Aviv in 1998, and later,

set two field offices at Ramallah and Jericho. Due to the security condition, the JICA office at Tel Aviv

has monitored all JICA projects in the West Bank and Gaza in recent years.

Appendix 1 shows major JICA’s assistance since 2006. A number of the assistance programs can be

categorized into assistance to the Palestinian territory and assistance to the Palestinians in the neighboring

countries that includes not only assistance to the Palestinian refugees living in the neighboring countries

in collaboration with United Nations Relief and Works Agency for Palestine Refugees (UNRWA), but

also holding training courses for the Palestinians in the neighboring countries called third-country

training.

Within the Palestinian territory, JICA has recently been expanding its assistance, mainly using grant aid

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and technical cooperation schemes since the Jericho Regional Development Study Project in 2005, along

with Japan’s assistance policies such as the concept of “the Corridor for Peace and Prosperity (CPP)”, and

the Seven Priority Areas. JICA has been implementing projects in all areas of the Seven Priority Areas

and education sector. Some of them are linked to the concept of CPP. Outlines of major projects are

summarized in Appendix 2.

In the neighboring countries, JICA held Third-Country Training Courses in Jordan and others including

countries related to the Cooperation with East Asian Countries for Assistance to the Palestinians, inviting

government officials from the Palestinian Authority and training them in various technical fields that are

essential for future state building. Concerning assistance to the Palestinian refugees living in UNRWA

refugee camps in the neighboring countries, in addition, JICA assists them to improve their living

conditions through technical cooperation, grant aid and dispatching volunteers such as Japan Overseas

Cooperation Volunteers (JOCV) and JICA senior volunteers.

(3) Geographical Dispersion of Recent Japanese ODA Projects

1) JICA Projects in the Palestinian Territory

The geographical feature of JICA’s projects is geographical concentration in the West bank, especially in

the Jordan River Rift Valley and Jericho areas. In Gaza, JICA assisted relief and rehabilitation activities

after the Operation of Cast Lead in the end of 2008, through the JICA Alumni Association which was

organised by ex-trainee of JICA’s training courses.

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Source: Study Team based on information from JICA

Figure 4.1.2 Map of JICA Projects in the Palestinian Territory since 2006

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2) Other ODA Projects

In addition to the above mentioned JICA projects in the Palestinian territory, the government of Japan has

also implemented a large number of ODA projects as well as JICA’s assistance in the neighboring

countries. The geographical properties of other ODA projects are;

A great number of Multilateral ODA and Third-country Training in addition to Grant Aid and

Technical Cooperation,

A great number of humanitarian aid projects,

Support through the assistance framework of Syria and Jordan, and

Geographical concentration in the Gaza Strip area.

ODA projects in the Gaza Strip are mostly Grant Aid or Multilateral projects. Most of these are aimed at

basic human needs improvement such as health, food assistance or sewage. Main projects include the

“Gaza Solid Waste Management (Upgrading Three Existing Dumping Sites in the Gaza Strip) through

the United Nations Development Programme (UNDP)”, “The Project for Infectious Diseases Prevention

for Palestinian Children with the United Nations Children's Fund (UNICEF)” and “Empowerment of the

Agriculture Sector, Training and promotion of Ecological and Sustainable Methods in the Gaza Strip”

Japan’s ODA projects have also been implemented through the assistance framework of other countries

neighboring to Palestine. This scheme also targets to provide benefit to broader areas including Palestine

rather than limited communities. “Volunteers for Supporting Persons with Disability”, “The Programme

for Camp Rehabilitation and Community Development” and “Capacity Development on Food Control

and Food laboratory Analysis for Food Inspectors and Food Laboratory Techniques” represent recent

projects implemented by this scheme.

Indeed, there have been a large number of ODA projects in the West Bank including Jordan River Rift

Valley and Jericho as well as the other ones in all regions. These projects are represented by not only large

scale projects such as Jericho Agro-industrial Park, but also, financial and small scale assistance programs

such as annual non-project grant aid for supporting public finance and grant assistance for grassroots

human security for NGOs and civil society in Palestine.

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Source: Study Team based on information from MoFA of Japan

Figure 4.1.3 Map of Other ODA Projects since 2006

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4.1.3 The Corridor for Peace and Prosperity

In July 2006, Japan proposed the concept of “the Corridor for Peace and Prosperity (CPP)” as a medium

to long term effort toward the co-existence and co-prosperity between the Israelis, Jordanians and

Palestinians. This concept is based on the idea that is stated in the following official document of the

Government of Japan.

“For achieving sustainable peace in the Middle East, it is essential for the peoples in the region to enjoy a

peace dividend and for Arabs and Israelis to promote confidence among them, especially for Palestinians

and Israelis. The path towards creating peace between Israel and Palestine has faced serious challenges.

However, the two-state solution is the only way and it is important to make efforts towards co-existence

and co-prosperity while at the same time, managing the current situation. For this to happen, it is crucial to

establish a viable state for Palestinians accompanied with sustainable economic development through the

strengthening of their partnership with neighboring countries, especially Israel and Jordan. The role of the

private sector, coupled with the development of the public private partnership (PPP) is crucial in

achieving sustainable economic development. In the West Bank, agriculture and agro-industry could be a

driving force for sustainable economic development. Not only are the results of cooperation projects

important but so is the process in terms of promoting confidence-building.

Japan proposes its concept of creating the CCP in cooperation with Israelis, Palestinians and Jordanians.

The concept is to work collaboratively to materialize projects that promote regional cooperation for the

prosperity of the region, such as establishing an agro-industrial park in the West Bank and facilitating the

transportation of goods. Only when the circumstances permit Japan will move this concept forward by

initiating a unit to achieve these goals.

From a longer perspective, Japan is keen to act as a facilitator to promote confidence and regional

economic cooperation between Israelis and Arabs. Needless to say, “this would only become reality

when all the stakeholders remain committed to the cause of peace all the way through to the end and by

steadfastly exerting every effort to cooperate with each other for the prosperity of the peoples in the

region.”

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Gaza0 50km

Tel Aviv

West Bank

Israel

LebanonSyria

Jericho

Jerusalem

Dead Sea

Facilitating Transportation

of Goods

to the Gulf States etc.

Amman

Building a Distribution Center

Jordan

F/S on ”Agro-Industrial Park Development”

Establishing Agro-Industrial Park

Projects under Japan’s ODA

Golan HeightsFuture Potential Projects

Jordan Valley

Technical Cooperation on

Sustainable Agriculture

Source: MoFA of Japan

Figure 4.1.4 Japan’s Concept for Creating the “Corridor for Peace and Prosperity”

Japan is struggling to establish the Jericho Agro-Industrial Park (JAIP) by the end of 2012 in a suburb of

Jericho city as one measure for the realization of the concept. There are a number of JAIP related projects

as below.

Land reclamation and Road Pavement: In October 2010, the connection road from Jericho city to

the Park was completed and the ground breaking ceremony for the land reclamation works for the

JAIP site was held. (Japan-UNDP Fund)

Electricity: The first solar photovoltaic power plant in the West Bank is expected to be installed by

September 2012. (JICA – Grant Aid)

Sewage treatment plant: Construction of Jericho’s first sewage treatment plant with a

resource-circulative system is expected to be inaugurated in June 2012. (JICA – Grant Aid)

Water: the project to equip Jericho city and the JAIP with water-supply networks has been

implemented. (Japan-UNDP Fund)

Capacity Building: JICA has been assisting capacity building of (the Palestinian Industrial Estates

& Free Zones Authority (PIEFZA) through “the project for institutional strengthening of PIEFZA

for the agro-industrial park in Jericho” (JICA – Technical Cooperation)

In line with this concept, in addition to the JAIP, JICA has assisted capacity development in the

agricultural and tourism sectors for accelerating development in the corridor. Agricultural development

through “Strengthening Support System focusing on Sustainable Agriculture in Jericho and Jordan River

Rift Valley (ASAP)” and “the Project on Improved Extension for Value-Added Agriculture in the Jordan

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River Rift Valley (EVAP)”, is expected to contribute to JAIP’s activities. Tourism promotion through

“the Project for Sustainable Tourism Development in Jericho through Public-Private Partnership” is

expected to promote movement of people in the corridor. Freedom of movement is an essential aspect for

promoting the concept and outcomes of Japan’s assistance such as JAIP. However, there are a number of

physical obstacles that have been established by Israel such as blockage, checkpoints and prolonged

delays in custom inspection.

Palestine, Israel, Jordan and Japan established the Four-party meeting and monitored progress on the CPP,

and discussed cooperation to implement it. There have been three ministerial level meetings and five

technical level consultations. The latest meeting took place the Dead Sea in Jordan at the end of April,

2012, although no meeting had been held since March 2010 due to the complicated peace process.

4.2 Achievement and Impacts of JICA's Major Assistance since 2006

JICA has implemented a number of projects in various sectors using technical cooperation and grant aid

schemes. Figure 4.2.1 shows existing and scheduled projects supported by JICA.

Source: Study Team

Figure 4.2.1 Existing and Scheduled Projects Assisted by JICA

In this section, the review and evaluation of JICA’s main assistance since 2006 is described in the

perspective of the Jericho Regional Development Master Plan and the Corridor for Peace and Prosperity

Initiative. The major projects reviewed by the Study are listed in Appendix 1 and described in Appendix 2.

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4.2.1 Jericho Master Plan

(1) Jericho Regional Development Study

Many of JICA’s assisted projects were formulated during the period of the Jericho Regional

Development Study Project from 2005 to 2006. The Master Plan identified assistance needs in Jericho

and the Jordan River Rift Valley region from the perspective of regional development including

neighboring countries such as Israel and Jordan. The philosophy of the Master Plan dovetailed with the

Corridor for Peace and Prosperity (CPP) initiative. During and after the Master Plan study, a number of

projects were formulated based on the ideas from the Master Plan study. Figure 4.2.2 shows an outline of

the Master Plan and implemented projects which related to the ideas of Master Plan.

Success Story 1: Outcomes of JICA’s Assistance

Commuter buses (Al Jiftlek – Jericho) Tourist Information Center in Jericho

Constructed school facility and equipment MCH Handbook at Jalazon Refugees Camp

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Source: Study Team based on Final Report of Jericho Regional Development Study Project in Palestine

Figure 4.2.2 Jericho Master Plan and Implemented Projects

The Master Plan consists of three programmes, which are related to three objectives under the upper

objective, namely the “Social and Community Development Programme”, “Agriculture and

Agribusiness Programme” and “Tourism and Urban Environment Programme”

The Corridor for Peace and Prosperity

Upper Objective: To create a symbiotic society in the region, in the West Bank and Palestine, as well as with the neighbouring countries, through confidence building

Objective 1: To enhance living condition of the people in the region through betterment of social services and income generation activities

Objective 2: To promote economic activities in the region by promoting modern technologies, infrastructure development and marketing

Objective 3: To preserve cultural and environmental values of the region considering wise use of the resources for regional development

Core Programme Local Governance

Environmental Consideration

Social and Community Development Programme

Tourism and Urban Environment Programme

Agriculture and Agribusiness Programme

“Improvement in Local Governance System in Palestine” (2005- 2010)

“The Project for Capacity Development on Solid Waste Management in Jericho and the Jordan River Rift Valley in Palestine” (2005- 2008)

JAIP related projects and “The project for institutional strengthening of PIEFZA for the agro-industrial park in Jericho” (2010- 2013)

“The Project on Strengthening Support System Focusing Sustainable Agriculture in Jericho and the Jordan River Rift Valley (ASAP)” (2007- 2010) and “The Project on Improved Extension for Value-Added Agriculture in the Jordan River Rift Valley” (EVAP) (2011- 2015)

Tubas Holy Tree Cooperative (April 2008- October 2010) (2010- 2012)

“The Feasibility Study on the Water Resources Development and Management in Jericho and the Jericho and the Jordan River Rift Valley”(2007- 2009)

“The Jericho Wastewater Collection, Treatment System and Reuse Project”(2011- 2015) “Project for Establishment of New Schools in the West

Bank, Phase I & II” (2009-2014), Project for Support for the Public Activities of the Communities in Jordan Valley (March 2010-January 2012)

“Sustainable Tourism Development in Jericho through Public-Private Partnership” (2009- 2012)

Implemented projects assisted by JICA

=

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(2) Review of the Jericho Master Plan and Implemented Projects

1) Positioning of the Master Plan

The ideas of the Master Plan dovetailed with the concept of the CPP. From the chronological view, the

concept, which was proposed one month previous to the Final Report of the Master Plan, seems to refer to

the interim results of the Master Plan study. Therefore, the Master Plan was synchronized with Japan’s

assistance policy to Palestine.

Jericho and the Jordan River Rift Valley are located at a crossroad of the CPP. Jericho is a place that is

strategically important considering the corridor development, although its population and density are

lower than other regions in the West Bank. Despite the existence of many highways, agricultural land and

tourism sites in the region have been controlled by Israel, Jericho still has good potential and advantages

in tourism, agriculture and transportation connected to Jordan through the Allemby Bridge. It was

appropriate that the Master Plan focused on development in the region.

The Master Plan study team, in addition, held a series of discussions with relevant officials from the PA

and local governments as well as the stakeholders in the private sector and the community. The

participatory planning process proved that the Master Plan was developed based on the concerns and

needs of the Palestinian stakeholders. After the Master Plan was submitted to the PA, however, the PA

did not utilize or refer to the Master Plan as its development plans, although the PA appreciated JICA

assisted projects based on the Master Plan.

2) Contribution to the Development in Jericho and the Jordan River Rift Valley

It is too early to evaluate the outcomes of JICA’s assistance based on the Jericho Master Plan. Indeed,

each project seems to contribute to improving living conditions and social services, and introducing new

modern technologies for the beneficiaries and the region through the construction of infrastructure and

technical transfer which may meet some of the objectives set in the Jericho Master Plan. As with the JAIP,

the construction of a series of infrastructure must be a positive sign.

4.2.2 Review of Projects Related to the Corridor for Peace and Prosperity Initiative

The Government of Japan, including JICA, has been struggling to establish the JAIP as one measure for

the realization of the concept of the Corridor for Peace and Prosperity. Table 4.2.2 summarizes Japan’s

assistance concerning the JAIP.

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Table 4.2.1 Japan’s Assistance Concerning the JAIP

ODA Scheme Project Title (Duration)

Technical Cooperation by JICA

- The F/S on Agro-industrial Park Development in Jordan River Rift Valley (2007-2009)

- The Project for Institutional Strengthening of PIEFZA for the Agro-industrial Park in Jericho (2010- 2013)

Grant Aid - The Project for Clean Energy by Solar Electricity Generation System (2010-2012)

- The Jericho Wastewater Collection, Treatment System and Reuse Project (2012-2015)

Multilateral ODA through UNDP

- Road Rehabilitation of Agro-industrial Park – the Wholesale Market (FY2008)- Jericho Agro-industrial Park – Phase I Excavation Work (FY2009) - Extension of a Water Network to Service Jericho Southern Area Mainly the

Future JAIP (FY2010) Source: Study Team based on the Japan’s ODA Rolling Plan for OPT

Most of the infrastructure in the JAIP has been completed including the earthwork in the Phase I site, the

access road, and the photovoltaic power generation plant by August 2012. The water supply project also

will have been completed by the end of 2012. The construction of a series of infrastructure of JAIP must

be a positive sign. The JAIP is expected to open this year as the second industrial park in Palestine. It is

expected to contribute to promoting investment in the region and presenting an aspect of self-reliance of

Palestine.

Although the JAIP is a core project concerning the concept of the Corridor for Peace and Prosperity,

however, the JAIP is a part of the efforts for realizing the concept. In terms of agro-industry, it

should be linked with technical cooperation projects in the agriculture sector such as the EVAP.

Also, the concept includes industrial development in general and promotion of movement of people

and goods in addition to the agro-industrial development, so that other projects such as tourism

promotion and SME development projects should be connected to the concept.

Success Story 2: Jericho Agro-Industrial Park (JAIP) is ready to open

JAIP and the photovoltaic power plant (left), JAIP Seminar in July 2012 (right)

Data Collection Survey on Assistance Approach in Palestine Final Report

4-14

4.3 Achievement and Impacts of Other JICA's Assistance

4.3.1 Assistance to the Gaza Strip

(1) Background

The Gaza Strip had been the center of the Palestinian Authority since its establishment according to the

Oslo Agreement and enjoyed rapid socio-economic development with assistance from the international

community. During the time, JICA established a Palestine office in Gaza city and implemented assistance

projects in Gaza. After the second Intifada, however, the socio-economic situation and security condition

deteriorated in Gaza with a decrease of development aid and withdrawal of expatriate staff of aid agencies

including JICA. Since then, JICA Gaza office has been operated by national staff under the supervision of

Japanese staff in Tel Aviv. With the emergence of the Hamas government as the result of the election of

the Palestine Legislative Council (PLC) in 2006, Israel tightened the blockade of the Gaza Strip. GDP of

the Gaza Strip dropped 20 percent between 2004 and 2008 as the result of the blockade. The Operation

Cast Lead in the Israeli military campaign against the Gaza Strip in the end of 2008 killed 1,417

Palestinians50 and destroyed civilian livelihoods and infrastructure including government facilities. The

Gaza Strip faced a humanitarian crisis.

(2) JICA’s Assistance after the Operation Cast Lead

During the war, JICA national staff from JICA Gaza office coordinated to deliver medical equipment to

Al-Shifa hospital. After the end of the war, JICA national staff and the JICA Alumni Association have

taken significant rolls for relief and reconstruction in Gaza under the blockade by Israel and the restriction

of official development aid by JICA to the government in Gaza due to the Hamas regime. The JICA

Alumni Association in Palestine is a charitable non-profit Palestinian organization established in 2004.

The Alumni consist of individual cadres that belong to the Ministries and national institutions and

received training courses in Japan in various technical areas through JICA. JICA implemented the

following projects in collaboration with the JICA Alumni using the follow-up scheme for ex-participants.

50 UNDP (2010) One Year After Report: Gaza Early Recovery and Reconstruction Needs Assessment

Data Collection Survey on Assistance Approach in Palestine Final Report

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Table 4.3.1 JICA Projects in Gaza using the Follow-up Scheme

FY2006 and prior years

・ Bio-diversity (Lab Equipment) ・ Ultrasound Diagnostic System ・ Government personnel training center ・ Occupational Health lab ・ Capacity Building for Environmental Media ・ Theory and Practice of Dissemination and Advocacy using Multi-media ・ Extinguishing fire and Emergency Life Saving ・ Waste Management/ Maritime Environment Conservation

FY2008 ・ Diagnostic technique for HIV virus ・ Endoscope for Stomach Cancer ・ Clinic Nursing Equipment for MCH and Cardio-surgery

FY2009 ・ Chicken Egg Farming in War Affected Areas in Jabalia ・ Supply Medical Equipment to Gaza Hospital ・ Vocational Training ・ Environmental and Fishing Equipment Support for a Fishermen's Cooperative ・ Supply of Livestock Support for Deprived Farmers Project

FY2010 ・ Small-scale Aquaculture in Irrigation Ponds ・ Solid Waste Management ・ Enhancing Productivity and Income Generation for Women in Marginalized Communities

in the North Gaza Strip ・ Vocational Trainings ・ Improvement of Waste and Wastewater Management (Anti-mosquito)

FY2011 ・ Women Farmers Support to the National Industry by Drying Agriculture Products ・ Development of Hospital Staff Maintenance Department ・ Promoting Quality Assurance as well as the Industrial Products Specifications in the Local

Industry ・ Constructing of Water Networks in Al-Nuzha, El-Wan Area, and Al-Qura Area ・ Training and Capacity Building of Marginalized Handicapped Groups Project ・ Capacity Building for Post-War Reconstruction Project ・ Beekeeping

Source: Study Team based on the information from JICA Palestine Office and JICA Gaza Office

Success Story 3: Assistance in Gaza through the JICA Alumni Association

Income Generation for Women in Marginalized Community (left), Beekeeping (right)

Data Collection Survey on Assistance Approach in Palestine Final Report

4-16

In addition to the projects under the follow-up scheme, JICA Palestine Office conducted the Data

Collection Survey on Assistance to the Gaza Strip in March 2012, for the purpose of preparation for

restarting full scale operation in Gaza in the future.

(3) Achievement and Remaining Issues

Even though the scale of each the follow-up project is small, a number of war affected population in the

Gaza Strip received benefits and hope for the future through the projects in various areas including

restoration of livelihoods, increasing access to safe water, and capacity development. The projects

developed the skills of the beneficiaries and associations concerned, so that their resilience against human

insecurity seemed to be enhanced. Aid operation in the Gaza Strip, on the other hand, is significantly

difficult while there are various restrictions for both expatriate staff for security reasons and national staff

for movement restrictions. The Hamas regime in the Gaza Strip, whose legitimacy is not recognized

among the international community, is another constraint for donors. It means that most donors cannot

assist the government in Gaza under the Hamas regime. Under these serious constraints, JICA utilized its

alumni members as the partner who could reach to civil society organizations. This is an outstanding

assistance approach toward Gaza under the situation.

Considering the difficult situation in the Gaza Strip, the follow-up scheme using the JICA Alumni seems

to be an effective approach to support the population living under human insecurity at the moment.

Continuous data collection by JICA Palestine Office and JICA Gaza Office securing development needs

in Gaza, seems to be essential for full scale operation by JICA in the future, when a legitimated

government takes its place in the Gaza Strip.

4.3.2 Assistance to Palestinian Refugees

(1) Background

According to United Nations Relief and Works Agency for Palestine Refugees (UNRWA), the operational

definition of Palestinian refugees is people whose normal place of residence was Palestine between June

1946 and May 1948, who lost both their homes and means of livelihood as a result of the 1948 Arab-Israeli

conflict and their descendants. The total population of the registered Palestinian refugees is more than 5.11

million as of January 2012, while it was around 0.75 million in 1950. Since 1948, Palestinian refugees have

been and are still living in camps and other lands in the West Bank, the Gaza Strip, Jordan, Syria and

Lebanon, beyond the generations. UNRWA and the governments of the host countries have provided

services to the refugees. However, Palestinian refugees, especially those in who live in refugee camps tend

to live in poverty with insufficient infrastructure, due to lack of budget of UNRWA and the host countries.

(2) JICA’s Assistance to Palestinian Refugees

JICA assisted Palestinian refugees for a long time before the Oslo Accord. In the neighboring countries

including Syria, Jordan, and Lebanon, JICA has assisted Palestinian refugees in collaboration with

Data Collection Survey on Assistance Approach in Palestine Final Report

4-17

UNRWA and/or governments of the host countries in the area of improvement of camp environment,

vocational training, and income generation, using various aid schemes such as grant aid, technical

cooperation and dispatching experts and JOCV. In Palestinian territory, JICA collaborated with UNRWA

and the Ministry of Health to promote the MCH handbook which was introduced by JICA’s technical

cooperation project in Palestine. In addition, a number of trainings and follow-up projects have been

implemented for Palestinian refugees.

JICA’s assistance to Palestinian refugees is categorized in the table below.

Table 4.3.2 JICA’s Assistance to Palestinian Refugees

Country (Priority Area) Assistance by JICA

Palestine (Improvement of social

services)

- Improving Reproductive Health with a special focus on Maternal and Child Health in Palestine (Technical Cooperation, 2005- 2008)

- Improving Maternal and Child Health/Reproductive Health in Palestine (Phase 2) (Technical Cooperation, 2008-2012)

- Data Collection Survey on Palestinian Refugee Camps (2012) - Trainings (1985 – 2004) and follow-up projects

Jordan (Assistance to Palestinian

Refugees)

- UNRWA Wadi Seer Vocational Training Centre (Technical Cooperation, 1986-1998)

- Education Department, UNRWA HQ (Expert, 2001-2004) - Rehabilitation for Refugee Women Training Centres (Expert, 2006-2009) - Project for Improvement of Livelihood for Palestinian Refugees (Technical

Cooperation, 2009-2012) - UNRWA School (JOCV/SV, 2009-) - Refugee Camps (JOCV, 2009-) - Trainings(1985-2004)

Syria (Promotion of regional

stability)

- Despatch experts for UNRWA (Vocational Training, Damascus Vocational Training Centre, 1993-2001)

- Despatch JOCV/SV for UNRWA (Vocational Training, Damascus Vocational Training Centre, School Education 2000-)

- The Programme for Camp Rehabilitation and Community Development in Neirab Camp (Grant Aid, 2008-2010)

- Despatch JOCVfor Camp Rehabilitation and Community Development in Neirab Camp (JOCV, 2010-)

- UNRWA Introduction of MCH Handbook (Multilateral, 2009) - Trainings

Lebanon (Assistance to Palestinian

Refugees)

- Project for Reconstruction of Nahr El-Bared Palestine Refugee Camp (Grant Aid, 2011-2012)

- The Water Supply and Sewage Improvement Project in Ein el-Hilweh Palestine Refugee Camp (Technical Cooperation, 2011-2014)

- UNRWA Introduction of MCH Handbook (Multilateral, 2009) - Trainings

Source: Study Team based on JICA (2006) and JICA (2012)

The above projects and trainings contributed to improvement of environment of Palestinian refugee

camps, capacity building of beneficiaries of vocational trainings as well as UNRWA officers and

government officers in the host countries who are responsible for social affairs and Palestinian refugees.

Chapter 5 Recommendations to Assistance Approach in Palestine

Data Collection Survey on Assistance Approach in Palestine Final Report

5-1

Chapter 5 Recommendations to Assistance Approach in Palestine

5.1 Assistance Approach

(1) Japan’s Aid Policy

Japan supports a two-state solution whereby Israel and a future independent Palestinian state will co-exist

and prosper together. With this point of view, Japan has been assisting the Palestinians in various areas

and schemes as shown in Figure 5.1.1. The goal chart was developed by the Study Team based on the

policy papers of the Government of Japan. The PA’s policy is also plotted in the Figure to show a

consistency with the goal chart.

Goal Chart for Japan’s Assistance Policy to PalestinePAGoal

Independent Palestinian State

Long-term Plan

National Spatial Plan Target year: 2025

e.g. Protection Plan

Three-year Plan

NDP 2011~2013

・Governance

・Social

・Economy

・Infrastructure

Ultimate goal: The peaceful coexistence and co-prosperity between the two states of Israelis and Palestinians

“Corridor for Peace and Prosperity” Initiative

Assistance for building of the future Palestinian state (Small and Medium Enterprise Support, Agriculture, Tourism, Local Governance, Public Financial

Management, Water Resource Development and Waste Water Treatment, and Maternal and Child Health)

Assistance to Gaza Strip

Assistance for improving financial conditions

Humanitarian Assistance (Food aid)

Cooperation with East Asian Countries for Assistance to the Palestinians

Assistance to the Palestinian refugee

Vitalizing private sector in the Palestinian territories

Japan’s A

ssistance to the

P

alestinians

Assistance by JICA

Next Three-year Plan

NDP 2014~2016

Country Assistance Plan for OPT (Draft, May 2012)

Priority Area 1: Improvement of people’s livelihood incl. humanitarian aid- Water & Wastewater- Health Service- Education Service- Social Protection

Priority Area 3: Promote economic development- Industrial dev.- Agriculture dev.- Tourism dev.

Diplomatic Policy- Political

dialogues with both parties

- Confidence building measures between both parties

Priority Area 2: Governance and institution building- Public finance- Local governance

Source: Study Team based on Japan’s policy papers and PA’s policy papers

Figure 5.1.1 Japan’s Aid Policy and PA’s Policy

(2) JICA’s Assistance Vision

Considering both Japan’s aid policy and the PA’s development policy, it is necessary for JICA to set up

an assistance vision as the aid agency. The Study Team proposes the vision based on discussions with

officials from JICA and the PA. The Study Team suggests that the vision should be in line with the state

Data Collection Survey on Assistance Approach in Palestine Final Report

5-2

building of the PA and the peace and prosperity of the Palestinians from the perspective of regional

development. A proposed vision can be stated as below.

5.2 Assistance Strategy and Programme for Palestinian State Building

The Study Team proposes the assistance strategy and programme(s) based on the Assistance vision and

the discussions with officials from JICA and the PA. A strategy and programmes can be summarized as

below. The Strategy and Programmes must be linked with the Assistance vision and have a consistent

policy spiral.

Long-term Assistance Vision (= Peaceful Coexistence & Co-prosperity)

State building and industrial development toward the peaceful coexistence and co-prosperity between the two states of Israelis and Palestinians

Mid-term Assistance Approach (2013-2016)

To assist in establishing self-reliance of future Palestinian state and industrial development based on JICA’s experience and advantages, under the pessimistic political scenario and the Israeli occupation.

Programme 1: Industrial Development toward the Corridor

for Peace and Prosperity

Priority Area: Private sector development, Agriculture, Tourism

Related Area: Higher education, Transportation, Environment

Programme 2: Strengthening Capacity for

State Building

Priority Area: Local Governance, Public Finance

Related Area: Education, Health, Social Protection, Energy, Water & Wastewater, Solid waste

Assistance in the view of Human Security

For the Gaza Strip (with JICA Alumni), Palestinian Refugees (with UNRWA), People living in Area C and East Jerusalem

Cross-cutting Considerations

Regional development perspective beyond the borders, Confidence building, Increasing activity in Area C, Employment generation for youth, Gender mainstreaming, Regional environment, Increasing self revenue, Diversifying business partners, Cooperation with other aid schemes and private sector

To assist the Palestinians who live in insecure conditions from the view of human security

Cooperation with the International Community (East Asian Countries, Neighbouring Countries, and others) and Public Relations (Promote Japan’s efforts and ideas)

Source: Study Team

Figure 5.2.1 JICA’s Assistance Strategy and Programmes (Draft)

The Long-term vision should be in line with the common objective of the Middle East peace of the

international community including Japan as well as the PA’s goal. Although the long-term vision should

be respected as the ultimate goal, the difficult political situation will not be changed drastically within the

coming years such as 2016, which is the last year of the next National Development Plan 2014-2016.

Proposed Long-term Assistance Vision (= Peaceful Coexistence & Co-prosperity)

The peaceful coexistence and co-prosperity between the two states of Israelis and

Palestine

Data Collection Survey on Assistance Approach in Palestine Final Report

5-3

Practically, therefore, JICA should assist the Palestinians focusing on industrial development toward the

corridor for peace and prosperity. For the purpose of promoting industrial development, PA’s capacity of

state building must be strengthened. Considering these needs, on-going and scheduled projects assisted

by JICA should be programmed as “Industrial Development toward the Corridor for Peace and

Prosperity” and “Strengthening Capacity for State Building”.

From the perspective of human security, in addition to the programmes, assistance to suffering people in

Gaza, refugee camps, East Jerusalem and Area C should be continued in collaboration with the JICA

Alumni Association, UNRWA, and other organizations.

(1) Programme 1: Industrial Development toward the Corridor for Peace and Prosperity

This programme is expected to assist industrial development through human and institutional capacity

development and efficient use of existing resources in Palestine, although the Palestinians face various

obstacles that have been put in place by Israel. The programme will promote private sector development

and trade in line with the concept of the corridor for peace and prosperity.

With the Japan’s ODA policy for Palestine, this programme is consistent with the Priority Area 3:

Promote Economic Development in the Rolling Plan for OPT (April 2012).

2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6

PA’s Dev. Plan

Private Sector Dev. & Trade

Agriculture

Tourism

Value-added Agriculture in JRRV (EVAP)

Tourism Dev. through PPP (Phase 2)

Micro and SME Development

CB for PIEFZA

NDP 2011-2013 NDP 2014-2016

Industrial Development Programme

Tourism Development Programme

Agriculture Development Programme

Japan’s ODA Rolling Plan for OPT: Priority Area 3: Promote Economic Development

on-going scheduledLegend:

Scale-up strategy considering regional and global market is needed.Collaboration with the private sector and other donors or financial institutions should be considered.Support and foster entrepreneurs in Palestine

Programme Goal: Strengthening international competitiveness of Palestinian products and services and expanding international access

Source: Study Team

Figure 5.2.2 Industrial Development Programme

Data Collection Survey on Assistance Approach in Palestine Final Report

5-4

(2) Programme 2: Strengthening Capacity for State Building

This programme aims to strength the capacity of the PA and the Palestinians for state building in the

future and resilience against constraints due to the Israeli occupation. Also, this programme will

contribute to establishing a foundation for industrial development toward the corridor for peace and

prosperity.

With the Japan’s ODA policy for Palestine, this programme is consistent with the Priority Area 1:

Improvement of People’s Livelihood including Humanitarian Aid, and the Priority Area 2: Governance

and Institution Building in the Rolling Plan for OPT (April 2012).

2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6PA’s Dev. Plan

Water & Wastewater

Public Finance

Local Governance

Improvement of Property Tax System

NDP 2011-2013 NDP 2014-2016

Improvement of Water & Wastewater Programme

Local Governance Improvement Programme

Strengthening of Public Finance Programme

Japan’s ODA Rolling Plan for OPT: Priority Area 1: Improvement of people’s livelihood incl. humanitarian aid

Japan’s ODA Rolling Plan for OPT: Priority Area 2: Governance and institution building

Jericho Wastewater Collection, Treatment & Reuse

CB for Jericho Sanitation

Local Governance (Phase 2)

Education

on-going scheduledLegend:

Health

Programme Goal: Enhancing self-sustained capacity of PA concerning public service delivery

Source: Study Team

Figure 5.2.3 Strengthening Resilience Capacity Programme

Appendices

Appendix 1 List of JICA Projects since 2006

Appendix 1 List of JICA Projects since 2006Projects list - 1  JICA's Major Projects in the Palestinian Territories

Priority Areas Sector Project Status Scheme Duration Implementing AgencyWater ResourceDevelopment andWaste WaterTreatment

Preparatory Survey for Jericho Wastewater Collection, TreatmentSystem and Reuse Project

completed PreparatorySurvey

JFY2010-JFY2011 Palestinian Water Authority

Water ResourceDevelopment andWaste WaterTreatment

Jericho Wastewater Collection, Treatment System and Reuse Project ongoing GA Feb. 2011-Jan. 2015 Palestinian Water Authority

Water ResourceDevelopment andWaste WaterTreatment

Technical Assistance and Capacity Building Project for the JerichoSanitation Project

plannedTechnical

CooperationProject

JFY2012-JFY2016

Maternal and ChildHealth

Project for Improving Reproductive Health with A Special Focus onMaternal and Child Health in Palestine completed

TechnicalCooperation

ProjectAug. 2005-July 2008 Ministry of Health

Maternal and ChildHealth

Improving Maternal and Child Health/Reproductive Health in Palestine(Phase 2) ongoing

TechnicalCooperation

ProjectNov. 2008-Nov. 2012 Ministry of Health

Education The Project for Establishment of New Schools in the West Bank completed GA(CommunityDevelopment)

JFY2009-JFY2012 Ministry of Education and HigherEducation

Improvement ofPublic FinancialManagement

Improvement of Property Tax System in Palestine completedCountry-focused

Training June 2010-Mar. 2012Department of Property Tax,Ministry of Finance, PalestinianAuthority

Local Governance The Project for Improvement of Internal City Roads in Jericho completed GA(Peace-building)

JFY2008-JFY2010

Local Governance Project for Support for the Public Activities of the Communities inJordan Valley

completed GA(CommunityDevelopment)

May 2010-Jan. 2012 Ministry of Local Government,Palestinian National Authority

LocalGovernance/Improvement of PublicFinancialManagement

Advisor on Local Governance System completed Expert JFY2005-JFY2008

Local GovernanceThe Project for Capacity Development on Solid Waste Management inJericho and Jordan River Rift Valley in Palestine completed

TechnicalCooperation

ProjectSept. 2005-Feb. 2010

Ministry of Local Government,JCspd for SWM in Jericho andJordan River Rift Valley

Local Governance Improvement in Local Governance System in Palestinecompleted after

an extension

TechnicalCooperation

ProjectSept. 2005-Aug. 2010 Ministry of Local Government

Local Governance Improvement of Local Governance System, Phase II plannedTechnical

CooperationProject

JFY2012-JFY2014Ministry of Local Government,Palestinian National Authority

Local Governance Advisor on Local Governance System in Palestine completed Expert Mar. 2011-Mar. 2012 Ministry of Local Government,Palestinian National Authority

Local Governance Preparatory Survey for Capacity Development on Solid WasteManagement in West Bank

completed PreparatorySurvey

Oct. 2011-July 2012

Small and MediumEnterpriseSupport/Trading

The Feasibility Study on Agro-Industrial Park Development in JordanRiver Rift Valley (F/S) completed

DevelopmentStudy Mar. 2007-Jan. 2009

Ministry of Planning, Ministry ofNational Economy

Small and MediumEnterpriseSupport/Trading

Preparatory Survey on the Project for Improvement of Outer Bypass inJericho completed

PreparatorySurvey JFY2009-JFY2010

Small and MediumEnterpriseSupport/Trading

The project for institutional strengthening of PIEFZA for the agro-industrial park in Jericho ongoing

TechnicalCooperation

ProjectSept. 2010-Mar. 2013

Palestinian Industrial Estates andFree Zones Authority (PIEFZA)

Small and MediumEnterpriseSupport/Trading

The Project for Introduction of Clean Energy by Solar ElectricityGeneration System completed GA (Environment) Dec. 2009-June 2010 Palestinian Energy Authority

Agriculture(Productiontechnology)

Strengthening Support System focusing on Sustainable Agriculture inJericho and Jordan River Rift Valley completed

TechnicalCooperation

ProjectMar. 2007-Mar. 2010

Ministry of Agriculture(Extension and RuralDevelopment,NARC)

Agriculture(Productiontechnology)

The Project on Improved Extension for Value-Added Agriculture in theJordan River Rift Valley ongoing

TechnicalCooperation

ProjectSept. 2011-Jan. 2015

Ministry of Agriculture, NationalAgriculture Research Center(NARC)

Agriculture(AgriculturalEngineering/water)

Preparatory Survey on Improvement of Domestic and Agricultural WaterSystems in Jordan Valley completed

PreparatorySurvey JFY2011-JFY2012

Ministry of AgriculturePalestinian Water Authority

Agriculture(AgriculturalEngineering/water)

The Feasibility Study on the Water Resources Development andManagement in Jericho and the Jericho and the Jordan River Rift Valley(F/S)

completedDevelopment

StudyMar. 26, 2007-Jan. 26,

2009Ministry of Agriculture,Palestinian Water Authority

Agriculture(Farming)

Building stabilized communities through the quality improvement of thePalestinian olive products by introducing ecological and water-sparingfarming methods

completedGrassrootsTechnical

CooperationApr. 2008-Oct. 2010

Economic and SocialDevelopment Center forPalestine(ESDC)Nippon International Cooperationfor Community Development(NICCOD)

Agriculture(Farming)

Quality Improvement of Olive Crop through introducingEnvironmentally Friendly Water-Saving Farming Method, andimprovement of farmer's income though capacity building of "TubasHoly Tree Cooperative"

completedGrassrootsTechnical

CooperationNov. 2010-Mar. 2012

Economic & Social DevelopmentCenter of Palestine(ESDC)Nippon International Cooperationfor Community Development(NICCOD)

TourismSustainable Tourism Development in Jericho through Public-PrivatePartnership completed

TechnicalCooperation

ProjectFeb. 2009-Feb.2012

Ministry of Tourism andAntiquities

General Jericho Regional Development Study Project (M/P) completed DevelopmentStudy

Aug. 2005-Aug. 2006

Ministry of Planning andAdministrative Development,Ministry of Local Government,Jericho City Council

General Data Collection Survey on Palestinian refugee camp completed Data collectionSurvey

2012

General Data Collection Survey on Support in Gaza Strip completed Data collectionSurvey

2012

General Data Collection Survey on Assistance Approach in Palestine completed Data collectionSurvey

Mar. 2012-Sept. 2012 Ministry of Planning andAdministrative Development

Impr

ovem

ent o

f Peo

ple’

s Liv

elih

ood

incl

udin

g H

uman

itaria

nA

idG

over

nanc

e an

d In

stitu

tion

Bui

ldin

gP r

omot

e Ec

onom

ic D

evel

opm

ent

Oth

ers

A1-1

Appendix 1 List of JICA Projects since 2006Projects list - 2  JICA's Related Projects to Palestine (in Neighboring Countries)

Country Project Status Scheme Duration

Capacity Development for Agricultural Research and Development inthe Palestinian National Authority

completedThird-country

TrainingNov. 2009-Mar. 2012

Capacity Development on Food Control and Food Laboratory Analysisfor Food Inspectors and Food Laboratory Technicians in Palestine

completedThird-country

TrainingJuly 2009-Mar. 2012

Capacity Development in Meteorology for Palestine completedThird-country

TrainingJuly 2009-Mar. 2012

Capacity Building in Water Resource Management for PalestiniansPhase 2

completedThird-country

TrainingDec. 2009-Mar. 2012

Fire-Fighting and Rescue Techniques for Palestinians completedThird-country

Training 2004-2008

Capacity Development for Science Education utilizing ICT in Palestine ongoingThird-country

Training 2012-2015

Capacity Building for Electricity Sector in Palestine ongoingThird-country

Training 2012-2015

Fire-Fighting and Rescue Techniques for Palestinians ongoingThird-country

Training 2012-2015

Capacity Development on Food Control and Food Laboratory Analysisfor Food Inspectors and Food Laboratory Technicians in Palestine

ongoingThird-country

Training 2012-2015

Rehabilitation for Refugee Women Training Centers Expert completed Expert 2006-2011

Project for Improvement of Livelihood for Palestinian Refugees completedTechnical

CooperationProject

2009-2012

Volunteers for Sentimental Education for Palestinian Refugees ongoing JOCV/SV 2009-2013

Volunteers for Supporting Persons with Disability for PalestinianRefugees

ongoing JOCV 2009-2013

The Programme for Camp Rehabilitation and Community Developmentin Neirab Camp (UNRWA/Cooperation)

completed Grant Aide 2008-2010

The Water Supply and Sewage Improvement Project in Ein el-HilwehPalestine Refugee Camp (UNRWA/Cooperation)

completed JOCV 2010-2012

Cooperation for Supporting Palestinian Refugees(UNRWA/Cooperation)

completed JOCV/SV 2000-2011

Project for Mother and Child Health Care Handbook(UNRWA/Cooperation)

completedMultilateralCooperation 2009

Project for Reconstruction of Nahr El-Bared Palestine Refugee Camp(UNRWA/Cooperation)

completedGA

(Peace-building) 2011-2012

The Water Supply and Sewage Improvement Project in Ein el-HilwehPalestine Refugee Camp

ongoing ODA loan projects Nov. 2011-Mar. 2014

Implementation of MCH Handbook for Improvement of Maternal andChild Health among Palestine refugees in Lebanon(UNRWA/Cooperation)

completedMultilateralCooperation 2009

Medical Training for Palestinians completedTechnical

CooperationProject

May 2007-Mar. 2010

Total Quality Management for Health Care Facilities for Palestinians ongoingThird-country

TrainingOct. 2010-Mar. 2013

Turk

ey Third Country Training Program "Capacity Building on RemoteSensing and Geographical Information Systems for Palestinians"

completedTechnical

CooperationProject

Dec. 2006-Mar. 2009

Leba

non

Egyp

tJo

rdan

Syria

A1-2

Appendix 2 Outlines of JICA’s Major Projects

Appendx 2 Outline of JICA’s Major Projects

Major JICA’s cooperation projects by area, technical field and scheme since FY2005/06

Sector Technical field Focused Projects for impact assessment Scheme

1. Public Financial Management

Property tax management system development

“Improvement of Property Tax System in Palestine” (June 2010 – Mar.

2012) Training program

Local government service enhancement

“Improvement in Local Governance System in Palestine” (Sept. 2005-

Aug. 2010)

Technical Cooperation

Project 2. Local Governance

Waste management improvment

“The Project for Capacity Development on Solid Waste Management

in Jericho and Jordan River Rift Valley in Palestine” (Sept. 2005- Oct.

2008)

Technical Cooperation

Project

3. Education School construction “Project for Establishment of New Schools in the West Bank, Phase I

& II” (FY2009-FY2012)

Community Development

Grant Aid

4. Health

Maternal and Child Health (MCH) and Reproductive Health

“Improving Reproductive Health with a special focus on Maternal and Child Health in Palestine” (Aug. 2005- July 2008)

“Improving Maternal and Child Health/Reproductive Health in

Palestine (Phase 2)”(Nov. 2008-Nov. 2012)

Technical Cooperation

Project

5. SME development & Export Facilitation

Jericho Agro-industrial Park (JAIP) development

“The project for institutional strengthening of PIEFZA for the

agro-industrial park in Jericho” (Sept. 2010- Mar. 2013)

Technical Cooperation

Project

Agricultural technology development and extension

“The Project on Strengthening Support System Focusing Sustainable Agriculture in Jericho and the Jordan River Rift Valley (ASAP)” (Mar. 2007- Mar. 2010)

“The Project on Improved Extension for Value-Added Agriculture in

the Jordan River Rift Valley (EVAP)” (Sept. 2011-Mar. 2015)

“Capacity Development for Agricultural Research and Development

in the Palestinian National Authority” (Nov. 2009-Mar. 2012)

Technical Cooperation

Project/

Training program

Agro-management and income generation of olive farmers

“Building stabilized communities through the quality improvement of the Palestinian olive products by introducing ecological and water-sparing farming methods” (Apr. 2008- Oct. 2010)

“Quality Improvement of Olive Crop through

h introducing Environmentally Friendly Water-Saving Farming

Method, and improvement of farmer's income though capacity

building of "Tubas Holy Tree Cooperative” (Nov. 2010-Mar. 2012)

Grass Roots Partner

/Technical Cooperation

6. Agriculture

Agricultural Water “The Feasibility Study on the Water Resources Development and

Management in Jericho and the Jericho and the Jordan River Rift

Valley” (Mar.2007-Jan.2009)

Development Study

7. Tourism

Tourism administration, promotion, & product development

“Sustainable Tourism Development in Jericho through Public-Private

Partnership” (Feb. 2009- Feb. 2012)

Technical Cooperation

Project

Water resource management

“Water Resource Management for Palestinians”

(FY2005 - FY2012) Training program

8. Water Supply & Waste Water Managemen Sewage disposal

plant construction and operation

“The Jericho Wastewater Collection, Treatment System and Reuse

Project”(Feb. 2011-Jan. 2015)

Grant Aid Project with Preparatory

Survey

A2-1

Appendx 2 Outline of JICA’s Major Projects

1. Public Finance Management

1-1. Property tax management system development

“Improvement of Property Tax System in Palestine” Sector / Area Public Finance Management Period June 21 2010 –March 21 2012 Scheme Country focused training Implementing Agency in Palestine

Property Tax Department in Ministry of Finance (MoF)

Consultant (s) in implementation

Tokyo tax association, regional taxation bureau, local government, universities

Project Site Training in Japan and Indonesia Target group for technology transfer

Property Tax Department in MoF, MoLG Target coverage /area and beneficiaries

The Government of Palestine Local Government

Background Since the municipalities in Palestine have scarce resource of revenues in general, the property tax is referred to as the most stable and expectable source of their revenues. Currently in West Bank, Ministry of Finance (MoF) collects the property tax only in 34 municipalities, and MoF is attempting to expand the coverage of collection to all municipalities in West Bank by 2011, as stated in the master plan (2009–2011) of MoF’s property tax department.

In JICA’s ongoing technical assistance, “the project for Improvement in Local Governance System in Palestine”, the urgent need for developing the property tax system is recognized by both Palestinian and Japanese side.

Based on above, MoF has requested JICA for technical assistance through training and empowering its officials in Japan with a reference of Japanese experience in the property tax and other concerned issues.

Overall Goal Capacities of staff in the Property Tax Department in MoF are enhanced

Project Purpose / outputs

Appropriate property valuation and tax collection are applied through capacity strengthening of the Property Tax Department of MoF

Activities Provide training for the staffs of the Property Tax Department in MoF on; 1) property tax system, 2) valuation system on property, 3) tax collection system, 4) dissemination and promotion of tax system.

Japanese side Training in Japan: Twice in 2010 (7 trainees and 2 weeks/training) Training in Indonesia in 2011 (7 trainees and 1 week)

Major Inputs

Palestinian side Dissemination and implementation of action plans designed at the trainings Closely related projects by Japan

- Country training: 197 – 2004 - The Project for Improvement in Local Governance System in Palestine , 2005/09 – 2010/08 - Planed study: Detailed Study on improvement of local finance, 2012/05 (tentative)

Relevant cooperation by development partners

- UNDP conducted a needs assessment of property tax and provided ”Support to Local Government Reform, Property Tax Reform” by Japan fund since 2004.

- UASID supported to develop an operation manual for the property tax system (issued in 2009). Other remarks -Framework of the East Asian Cooperation

2. Local Governance

2-1 Local government service enhancement

“The Project for Improvement in Local Governance System in Palestine”

Sector / Area Local Governance

Period September 1 2005–July 31 2008, (extended) December 31 2010

Scheme Technical Cooperation Project

Implementing Agency in Palestine

Department of JCspd (DJCspd) of Ministry of Local Government (MoLG)

Consultant (s) in implementation

KRI International Corp.

Project Site Jericho and Jordan River Rift Valley (JJRRV) Target group for technology transfer

Department of JCspd, Department of Finance of MoLG, Regional offices, Ministry of Finance, etc. LGU in JJRRV, JC in JJRRV, Jericho Training Center

Target coverage /area and beneficiaries

JJRRV citizens

Background Since the PA was established in 1994, MoLG has been tackling on betterment of local governance system and enhancement of local decentralization. In Palestine, there are more than 482 Local Government Units (LGUs), most of which have difficulties in providing proper public services due to their limited capacities and financial resources. Based on the request from MoLG, JICA started the technical cooperation project of “Improvement for Local Governance System in Palestine” from September 2005 in the area of local finance, JC and training for the promotion of functional and sustainable local governance system.

Overall Goal 1. Municipal services are improved through promotion of LGU amalgamation and formation of JCs. 2. LGU’s revenue is improved through implementation of local finance policy.

Project Purpose The foundation for implementing policies in the area of local finance and Joint Councils (JC) is established.

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Appendx 2 Outline of JICA’s Major Projects

Outputs 1. Major issues for local finance are clarified and a basic policy for improvement of local finance is recognized and promoted in MoLG.

2. Major issues for JC are clarified and a strategy for improvement of service delivery are recognized and promoted by MoLG.

3. Needs of LGUs are identified and MoLG is able to implement training for capacity development of LGUs.Activities 1-1. Hold workshops to examine the current local financial policy issues for policy makers, government

officials and other stakeholders concerned 1-2. Conduct a diagnostic study on local finance management of Jericho MUNICIPALITY to locate local

finance issues at a municipal level 1-3. Draft basic policy for local finance 1-4. Formulate a working group and elaborate basic policy for local finance 1-5. Study and analyze local finance policy of neighboring countries and clarify definition and terminology for

finalization of the draft. 1-6. Submit basic policy for local finance to MoLG 2-1. Carry out needs assessments on JCspd in Jericho and the Jordan Valley 2-2. Hold workshops on policy issues concerning JC for policy makers, government officials, LGU members,

community based organizations and other stakeholders concerned 2-3. Formulate a working group and prepare JC strategy framework 2-4. Identify institutional arrangements necessary for JC strategy development 2-5. Plan and implement pilot projects in participatory manner 2-6. Prepare cluster based development plan (I-LSD) 2-7. Implement capacity development activities for JCs 2-8. Analyze the lessons learned from the pilot projects and capacity development activities for JCs 2-9. Draft JC strategy 2-10. Compile experiences of JC establishments, capacity development and pilot projects as JC strategy annex

document 2-11. Implement dissemination activities for JC strategy 3-1. Carry out needs assessments on the abilities, and training needs for LGUs JC members 3-2. Develop capacity for training center management 3-3. Develop capacity for training course management 3-4. Develop capacity for training course evaluation 3-5. Train training officers as trainers 3-6. Develop capacity of trainers in developing and revising training materials according to needs and levels of

training participants 3-7. Develop training materials (text books and manuals) 3-8. Formulate a working group on training issues and establishment of training implantation mechanism 3-9. Implement training courses for LGUs and JC members 3-10. Secure budget for training center management 3-11. Take necessary procedures for legal status of training center Japanese side Human Resources: JICA experts for the following fields

-Local governance -Project coordinator - Local finance -Community empowerment project planning and management with a participatory approach

Facility: Equipment procurement:

- Remodeling, furniture for a training center -A vehicle for transportation

Training : total 58 trainees - Training in Japan (39 trainees) - Third country training (20 trainees)

Local cost for In-country training and workshops, training needs assessment, pilot projects,

Major Inputs

Palestinian side Human Resources: Palestinian counterpart personnel (total 8 persons) -Project Director, Project Manager, Jericho Training Center trainers, Concerned officers and staffs

Facility & Equipment: Premises for a training center in Jericho Municipality, Utilities for training center

Closely related projects by Japan

“The Project for Capacity Development on Solid Waste Management in Jericho and Jordan River Rift Valley in Palestine” , “Training in Japan: year 1997 – 2004, 2005”

Relevant cooperation by development partners

・ DANIDA: Technical Assistance to MoLG Policy Unit (Palestine Authority). The assignment consists in supporting the development of decentralization policies in the Ministry of Local Government, Palestine, 2010 – 2011.

・ UNDP: Support to Local Government Reform, Property Tax Reform, 2004. ・ World Bank & EU: Support to establish and operate Municipal Fund

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Appendx 2 Outline of JICA’s Major Projects

2-2 Waste management improvement

“The Project for Capacity Development on Solid Waste Management in Jericho and Jordan River Rift Valley in Palestine”

Sector / Area Local Governance Period September 1 2005 – August 31 2008, (extended)

February 28 2010 Scheme Technical Cooperation Project

Implementing Agency in Palestine

Ministry of Local Government (MoLG), JCspd for SWM in Jericho and Jordan River Rift Valley (JCspd JJRRV)

Consultant (s) in implementation

Yachiyo Engineering Co., Ltd.

Project Site Jericho and Jordan River Rift Valley (JJRRV) Target group for technology transfer

JCspd JJRRV

Target coverage /area and beneficiaries

MoLG JJRRV citizens and LGU

Background In Palestine, small municipalities that experience difficulties in operating waste management services by themselves formed the Joint Council for Services, Planning and Development (JCspd) to perform the services jointly. According to this scheme, the JCspd for Jericho and Jordan River Rift Valley Waste Management was established, and joint waste management services commenced in the region concerned. However, a large number of municipalities are not providing adequate waste collection services, and there are also many municipalities that are confronted with financial difficulties due to increases in operational costs.

Under these circumstances, we honored a request for technical cooperation in establishing the model and system for waste management by the municipalities and the JCspd in the Nablus, Tubas and Jericho districts in August 2004.

Through the provision of technology, guidance and counsel, this project aims to make local Palestinian municipalities capable of independently operating waste management services in the Jericho and Jordan River Rift Valley region by developing their capacity for improved waste management. Furthermore, it also aims to propagate the experience gained from implementing the project in the Jericho and Jordan River Rift Valley region to the entire JCspd and other regions through seminars and workshops using the waste management system developed in this project as a model.

Overall Goal 1. In PNA, a basic policy and a concrete action plan on integrated SWM are formulated. 2. Effective system of SWM modeling JJRRV is diffused in PNA

Project Purpose 1. Sustainable and sanitary system of SWM is introduced in JJRRV. 2. Experiences of improvement on SWM in JJRRV are shared as a model for other areas in PNA.

Outputs 1. Organization for project operation is established. 2. System for SWM in JJRRV is established. 3. Present situation of SWM in JJRRV is grasped. 4. Action plan for improvement of SWM in JJRRV is formulated. 5. The action plan is put into practice and the improvement is made. 6. Seminars/ workshops are held and the Project experiences in JJRRV are diffused among Palestinian local

authorities. 7. Those who are in charge of SWM in local authorities and related ministries acquire basic knowledge on

integrated SWM and their basic knowledge is diffused. Activities 1-1. Joint Coordinating Committee (JCC) is established and committee meetings are held regularly.、

1-2. Project implementation schedule and monitoring and feedback system are established. 2-1. Survey on present situation of organization and institutional structure on SWM 2-2. Capacity assessment of organization and institutional structure on SWM 2-3. Preparation for start-up SWM Services by JCspd 2-4. Organizational & institutional arrangement for SWM 2-5. Introduction of financing and accounting system of SWM 2-6. Public awareness on the Project 2-7. Consultative meeting with the local authorities, members of the JCspd for SWM in JJRRV 2-8. Repair and maintenance of vehicle/equipment 2-9. Training of JCspd Staff 3-1. Examination of existing report, documents and planning for baseline survey. 3-2. Implementation of baseline survey (volume and composition of waste). 3-3. Survey on conditions of waste collection and transportation (including illegal waste disposal) and report making. 3-4. Survey on conditions of final disposal site (including pollution of underground water) and report making. 3-5. Survey on conditions of medical waste management and report making. 3-6. Making consolidation report on baseline survey. 3-7. Seminars/Workshop on baseline survey. 4-1. Formulation of draft action plan for Improvement of SWM based on baseline survey result. 4-2. Workshop open to public is held to elaborate draft action plan and report making. 4-3. Finalization of action plan and report making. 4-4. Preliminary environmental survey on improvement of existing disposal site. 5-1. Improvement of waste collection and transportation, and their manuals & report making. 5-2. Improvement of final disposal site, and its operation manual & report making. 5-3. Making consolidation report on the implementation of action plan (including recommendations to PNA) 5-4. Study on candidate for disposal sites.

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Appendx 2 Outline of JICA’s Major Projects

6-1. Holding seminars for personnel in charge of SWM in local authorities. 6-2. Making textbooks for seminars. 7-1. Preparation of training in Japan 7-2. Implementation of training course in Japan 7-3. Training of SWM in Jordan 7-4. Monitoring and follow-up of the action plan of each training participant. Japanese side Human Resources: JICA experts for the following fields

-short term expert: 25 persons(47.83 M/M) Training & Study tour

-Training in Japan (22 persons) -Study toour in Jordan (9 persons)

Equipment procurement: - Maintenance tools and spare parts, material for dumping site improvement, -a patrol vehicle

Major Inputs

Palestinian side Human Resources: Palestinian counterpart personnel(6 persons) Provision of land and facility: Office space for the Project, equipment for SWM

Closely related projects by Japan

“Project for Improvement in Local Governance System in Palestine (JICA)” “Grant aid by the Government of Japan (provision of waste collection vehicles and equipment) through UNDP”

Relevant cooperation by development partners

・ GIZ(GTZ): Solid Waste Management Programme, 2005-2012 ・ World Bank: Southern West Bank Solid Waste Management Project, 2009-2014 ・ EU: €1.3 million worth of waste collection and disposal equipment ・ Italy: Palestinian Municipalities Support Program (PMSP)- Solid waste management for Bethlehem

district、EUR 16 million

3. Education

3-1 School construction

“Project for Establishment of New Schools in the West Bank

Sector / Area Education

Period FY2009 ~ FY2012 Scheme Community Development Grant Aid

Implementing Agency in Palestine

Ministry of Education & Higher Education Cooperating agency JICS, MOHRI, ARCHITECT & ASSOCIATES, INC.

Project Site Jericho, Nablus, Tubas

Target group for technology transfer Ministry of Education & Higher Education

Target coverage /area and beneficiaries

School aged Children in Jericho, Tubas and Nablus

Background The Palestinian Authority (hereinafter referred to as “PA”) regards the education sector as a priority area in which to develop human resource for its future independence. Three major goals in the educational sector have been stated in both the “Palestinian Reform & Development Plan (2008-2010)” and the “Five Year Education Plan (2007-2011)” promulgated in 2007. These goals are as follows: 1) improved access to education; 2) improved quality of education; and, 3)improved educational management. Improvement in access to education has been named anespecially high priority. Indeed, the PA aims to raise the enrollment rate up to 99% and 98 % for Basic and Secondary education respectively.

In the West Bank, the target area of the Project, the annual average rate of increase in Basic and Secondary education enrollment between 2002/3-2006/7 is as high as 2.6%. Moreover, the annual average rate of increase in enrollment at Secondary level is as high as 8.7%. However, since school construction has not caught up with the increase in enrollment, many schools in the West Bank end up renting buildings or adopting a double-shift system to accommodate the increasing number of students. Since those rented buildings were not designed for educational purposes, many schools do not have classrooms of adequate size or special classrooms such as computer labs or science laboratories. Consequently, lectures in such rented schools are not always in accord with the curriculum. Hence, the lack of adequate building space for education is an obstacle to quality education. Also, lecture time at schools using the double-shift system is shorter than that of single-shift schools. Likewise, the double-shift system is another obstacle to quality education.

Overall Goal Improvement in the quality of education in the West Bank.

Project Purpose Reduction in the number of rented schools and double-shift schools

Outputs (1) Schools are constructed with classrooms, specific classrooms, staff rooms and toilets, and school furnitures and

educational equipments are installed in target site. (2) Schools are transferred in the target site and schoole management system have been constructed.

Activities (1) Construct the following schools with classrooms, specific classrooms, staff rooms and toilets. 1. Jericho

-Jericho Boys School (Grade 5 to 12) with 16 classrooms for 640 alumni & students -Marji Algazal Girls School (Grade 1 to 10) with 12 classrooms for 480 alumni & students

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Appendx 2 Outline of JICA’s Major Projects

-Marji Algazal Mixed School (Grade 1 to 10) with 9 clasrooms for 144 alumni & students 2. Tubas

-Al-Fallah Boys School (Grade 10 to 12) with 9 classrooms for 360 alumni & students -Wadi Fallah Girls School (Grade 6 to 12) with 16 classrooms for 640 alumni & students

3. Nablus -Beita Boys School (Grade 1 to 8) with 16 classrooms for 640 alumni & students -Beido Dajyan Boys School (Grade 1 to 12) with 12 classrooms for 480 alumni & students

(2) Procure school furnitures and educational equipments for the target site (3) School education have been conducted in the above new facilities.

Japanese side

Human Resources: Materials & Equipment: Cost for school construction (including procure furniture costs) Attorney’s fees

Major Inputs

Palestinian side

Connections costs (electricity, water supply) Demolition cost of existing buildings Human Resources (Teachers and etc.) Cost for school management

Closely related projects by Japan

<JICA’s cooperation> ・ The Project for Support for the Public Activities of the Communities in Jordan Valley (GA, Community

Development, 2010-2012) ・ Capacity Development for Science Education utilizing ICT in Palestine (Third-counrty Training, 2012-2015)

Relevant cooperation by development partners

・ Brazil: shool construction, installation of computer laboratory with euipments. ・ Belgium: school construction and renovation ・ South Korea: educational facilities construction in Hebron, renovation of computer laboratory ・ Turkey: school construction ・ EC: school construction and school maintenance/management in Jericho, school maintenance programme of 3

schools in the West Bank

4. Health

4-1 Maternal and Child Health and Reproductive Health

“Improving Reproductive Health with a special focus on Maternal and Child Health in Palestine” Sector / Area Health (MCH) Period August 1 2005 – July 31 2008 Scheme Technical Cooperation Project Implementing Agency in Palestine

Public Health Department (PHC) Cooperating agency in training in Japan

Health And Development Service (HANDS)

Project Site West Bank (whole activities) Gaza Strip (for handbook distribution)

Target group for technology transfer

MCH/PHC center, maternal and child health/medical staff, pregnant female/mothers with small babies

Target coverage /area and beneficiaries

MCH/PHC center, maternal and child health/medical staff, pregnant female/mothers with small babies

Background In the territory of Palestinian National Authority, there are 1.6 million people who are registered as refugees among the total population of approximately 3.7 million. The average off first marriage age is relatively low (19-year-old for female, 23.6-ycar-old for male). The Total Fertility Rate (3.86) and Population Growth Rate (2.4%) are relatively high1. The Maternal Mortality Ratio is 100 per 100,000 live births and US Mortality Rate is 27 per 1,000 live births2. 32.5% of pregnant women and 40.5% of infants under 9 months were diagnosed of anemia3. The above mentioned indicators4 represent the conditions of Palestinian National Authority from the aspects of mother and child health.

Ministry of Health of Palestinian National Authority (hereinafter referred to as MoH) established Maternal and Child Health (hereinafter referred to as MCH) and Primary Health Care (hereinafter referred to as PHQ centers as strongholds of MCH and Reproductive Health (hereinafter referred to as RH) services. Also, MOH has been implementing home visit services in some part of the districts.

According to the above mentioned background, the Palestinian National Authority has requested the Government of Japan for the "Project/or Improving the Reproductive Health with a Special Focused on Maternal and Child Health in Palestine". This project was aimed at improving MCH and RH in targeted areas through the activities to strengthen the administration and service of MCH, to raise awareness regarding MCH and RH through home visit for village women and conducting workshops for men and adolescents, and to make and promote MCH handbook. The Project was started on August 1st, 2005 and it is now three months before the Project is ended at the end of July 2008. The Final Evaluation Mission was dispatched in order to evaluate the result of the project jointly with the Palestinian side.

Overall Goal Maternal and child health(MCH) services are upgraded in the West Bank and the Gaza Strip Project Purpose (1) The-situation of children's health as well as woman's reproductive-health (RH) is improved in the West Bank

and the Gaza Strip (2) More women and children use upgraded MCH/RH services in the pilot area.

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Appendx 2 Outline of JICA’s Major Projects

Outputs 1. Management and technical capacity of MOH health providers for MCH/RH services at MCH centers are improved in pilot area

2. The MCH handbook guideline is provided to all health providers it the West Bank and the Gaza Strip 3. MCH Handbooks are produced and used in the pilot area (Jericho and part of Ramallah) and later at national

level 4. Both MOH staffs and Community recognize importance of awareness raising and community-participation

in MCH/RH issues 5. Outcomes and Lessen teamed are-shared among concerned ministries, local governments, communities and

donors at the national level through seminars and media. Activities (Activities, implemented by MOH; mainly JERICHO and PART OF RAMALLAH)

1-1 Conduct training of MCH Management in Japan 1-2 Plan(raining programs for MOH Health Providers on MCH/RH services management 1-3 Develop a training manuals 1-4 Conduct training of MCH Service Management for the Pilot/Area in Palestine a-Technical Training for nurses and midwives for Antenatal, Postnatal, and Child Growth Monitoring b-Supervisory Skills c-Time Management Skills d-Communication and Counseling Skins e-Health Education Skills

1-5 Medical and Administrative Equipments were installed at the MCH/PHC to Improve the services In the Pilot Areas;

1-6 Monitor and evaluate; MCH/RH services provided at MCH/PHC centers. 2 (Activities implemented by MOH: NATIONWIDE) 2-1 Develop a draft guideline for the MCH Handbook In Palestine 2-2 A draft-guideline Is finalized during the learning in Japan 2-3 MCH Handbook Guideline is finalized and approved by MOH 2-4 Guideline is distributed to health providers in all the governorates in Palestine 2-5 Promote MCH/RH services-at the existing MCH/PHC centers by following the established guidelines. 3 (Activities Implemented by MOH: mainly JERICHO and PART OF RAMALLAH) 3-1 Setup a Working Group of MCH Handbook and fix work plan 3-2 Understand MCH Handbook used in Japan (Which is conducted in Japan) 3-3 Draft a Handbook (Which is conducted in Palestine) 3-4 Finalize tits draft of MCH Handbook (in Japan) 3-5 Train Health Workers for Pre-Test for pilot areas for the target areas 3-6 Pretest and Revision of the Handbook 3-7 Baseline Survey of mother in the Pilot Areas. 3-8 Printing the Handbook/or Pilot Areas (N=4600) 3-9 Develop Monitoring and Evaluation Sheet for the Pilot Areas 3-10 Develop Promotion Materials and Socialization at the-local communities 3-11Distribution of the Handbook in the Pilot Areas 3-12 Monitoring end Evaluation of the Handbook Usage 3-13 Fix strategies to distribute MCH Handbook nationwide: 3-14 Distribution of the Handbook other than the Pilot Areas 3-15 Impact Survey of mothers in the Pilot Areas 4 (Activities implemented by a selected local NGO in cooperation of MOH: JERICHO and PART OF

RAMALLAH} 4-1 Make a plan of activities 4-2 Conduct training and workshops to those who conduct- awareness raising workshops/forums. 4-3 Advocate RH. MCH and Child's Health to the strategically-targeted stakeholders such as religious leaders,

community leaders, government officers and school teachers at the communities. 4-4 Produce IEC materials to respond to the needs of the targeted men as well as utilization of the existing IEC

materials. 4-5 Conduct awareness-raising workshops/forums for targeted men, women and youth in the community 4-6 Produce quarterly reports (Activities Implemented by MOH: JERICHO and PART OF RAMALLAH) 4-7 Plan home visits to the targeted women by trained village health workers. 4-8 Produce flip charts. 4-9 Train village health workers and nurses by using a set of training manuals produced and used In the previous

JICA project conducted In Jordan. (Training conducted in Jordan) 4-10 Conduct home visits. (Activities by both MOH and a selected local NGO) 5-1 Collect baseline data and analyze according to the responsibility that each of the above two bodies has;

respectively. 5-2 Monitor the activities under respective responsibility of the above two bodies, respectively. 5-3 Compile good practices, lessons learned and recommendations in a progress report. 5-4 Present good practices, lessons teamed and recommendations to the concerned ministries, local governments,

donors as well as the general public.'

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Appendx 2 Outline of JICA’s Major Projects

Japanese side Human Resources : JICA experts for the following fields Long-term experts: -Project Coordinator -maternal and child health management/community health

Shor-term experts: -Chief Advisor - Reproductive Health - Maternal and Child Health Management - Maternal and Child Health Handbook

Provision of Machinery and Equipment Training: Counterpart training in Japan and in Palestine NGO commission fees Baseline survey by local consultant

Major Inputs

Palestinian side Human Resources: Palestinian counterparts personnel as follows: -Project Director -Project Manager -Counterpart personnel

Project office and facilities at each, project site (MOH Ramallah, Jericho). Driver

Closely related projects by Japan

<JICA’s cooperation> ・ Improving Maternal and Child Health/Reproductive Health in Palestine (Phase 2) (Technical Cooperation

Project、2008, 11-2012. 11) <Other Japan’s projects> ・ Improving Reproductive Health-Maternity Child Health knowledge and services in Hebron, Halhoul, Tulkarem

and Gaza Districts (Multilateral, 2011. 7-2013. 7) <Intraregional Stabilization Program> ・ Project for Mother and Child Health Care Handbook in Syria(Multilateral, 2009) ・ Implementation (Utilization) of MCH Handbook for Improvement of Maternal and Child Health among

Palestine refugees in Lebanon(Multilateral, before 2010) Relevant cooperation by development partners

・ UNICEF: Improved Mother and newborn health care ・ UNFPA: Reproductive health ・ USAID: Improved Mother and newborn health care ・ Norway: Reproductive health

“Improving Maternal and Child Health/Reproductive Health in Palestine (Phase 2)” Sector / Area Health (MCH) Period November 15 2008-November 14 2012 Scheme Technical Cooperation Project Implementing Agency in Palestine

Ministry of Health(MoH) Consultant (s) in implementation

Project Site West Bank (whole activities) Gaza Strip (for handbook distribution only)

Target group for technology transfer

MCH/PHC center, maternal and child health/medical staff, pregnant female/mothers with small babies

Target coverage /area and beneficiaries

MCH/PHC center, maternal and child health/medical staff, pregnant female/mothers with small babies

Background In the territory of Palestinian National Authority, there are 1.7 million people who are registered as refugees among the total population of approximately 3.9 million. 65% of total population is with poverty under the living condition of less than 2 US dollars per day. The average of first marital age is relatively low (19-year-old for female, 23.6-year-old for male). Total Fertility Rate (4.6) and population growth rate (33%) are relatively high.2 Reported Maternal Mortality Ratio is 6.2 per 100,000 live births and reported Under 5 Mortality Rate is 19.1 per 1,000 live births in 20063, which may not reflect the real situation. Ministry of Health (hereinafter "MOH") is taking initiative to improve surveillance system of MMR currently.

35.7% of pregnant women and 40% of infants (72% of infants in Gaza Strip) under 9 months were diagnosed of anemia. 16.7% of infants' deaths are due to premature and low birth weight from total infant deaths. The above mentioned indicators represent the conditions of PNA from the aspects of mother and child health (hereinafter "MCH") and the necessity of upgrading MCH and reproductive health (hereinafter "RH") services and expansion of the utilization of quality services.

According to the above mentioned background, the PNA has requested the technical cooperation project to Government of Japan and JICA has implemented the "Project for Improving the Reproductive Health with a Special Focus on Maternal and Child Health in Palestine" (from August 2005 to July 2008),which is now considered as "Phase I Project. During the Phase I Project, JICA has been cooperating with MOH in developing Palestinian MCH handbook and its Guideline. After series of testing and piloting in Jericho and Ramallah, Minister of Health announced the launching of the national distribution of MCH handbook and actual distribution started at MOH, UNRWA and NGO clinics in West Bank, April 200S. Trainings for MCH service management and MCH handbook management were also conduced to upgrade MCH/RH services at pilot MCH centers in Jericho and Ramallah. Through the development and promotion of MCH handbook, MOH, UN, NGOs started working

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Appendx 2 Outline of JICA’s Major Projects

together to create a unified MCH service tool in Palestine. There was also coordination of various health sectors together with community people in community health promotion activities in Jericho and Ramallah. The Terminal Evaluation of the Phase I Project was conducted in May2008, and it was evaluated that the outputs of the project were mostly achieved despite difficult political / social situation.

There remains, however, a strong need both among Palestinian and Japanese sides to provide technical supports to MOH in taking initiatives of improving MCH and RH services and management to unified quality services in accordance with the medium-long term development strategies and national strategic health plan.

Given the situations, proposal for the project for improving MCH and RH in Palestine (Phase H) was submitted to Government of Japan by MOH in 2007. JICA dispatched a preliminary study mission for the purpose of formulary the framework for the Phase II Project Based upon the achievement of Phase I Project, the Phase II Project aims to improve the MCH and RH services with sustainability which includes institutionalization of the MCH handbook with sustainable revenue sources.

Overall Goal Health among women and children is improved in the West Bank and the Gaza Strip. Project Purpose Maternal and child health(MCH)and Reproductive Health (RH) services are upgraded in the West Bank and the

Gaza Strip with sustainability. Outputs 1.MCH/RH services are upgraded.

2.MCH Handbooks are used at health facilities in West Bank and Gaza Strip with sustainability. 3.Community awareness on MCH and RH is raised and more people use upgraded MCH/RH services 4.Institutional capacity of MOH and district health offices for coordination, supervision and evaluation is improved.

Activities 1-1. In-service technical trainings are conducted for GPs, Nurses, and Midwives on ANC,PNC, and childcare in selected pilot MCH centers. Trainings are needed in following subjects: Neonatal Screening, Ultra Sound, High Risk Pregnancy, Child Growth Monitoring, .etc.

1-2. Practical skill trainings are conducted for GPs, Nurses, MWs at central/district level to share experiences nationwide.

1-3. Medical and administrative equipments are upgraded at the selected MCH/PHC to improve MCH/RH 2-1. National coordination mechanism is established in order to plan, implement and evaluate activities related to

MCH HB among MOH, UN agencies, NGOs and Medical Association. 2-2. Monitoring is conducted regularly to evaluate the usage of MCH HB by district and central level in WB and

GZ. 2-3. Monitoring on utilization of MCH HB is regularly conducted by NCM based upon the monthly reports

submitted by MOH, UNRWA and NGOs. 2-4. MCH HB and its Guideline are revised and printed in accordance with the annual planning. 2-5. MCH HB and related materials are distributed properly to Health Facilities. 2-6. MCH HB is introduced to hospitals, private sectors and nursing and medical schools regularly. 2-7. In-service training for MCH staff (PHC and SHC) is provided regularly utilizing the Guideline as a training

tool. 2-8. Trainings are conducted in Japan to gain knowledge and skills of MCH HB Management Trainings are on

print/reprint/revision of the MCHHB, financial planning, management of the community-based health delivery activities using MCHHB (mothers’ class, infant check-ups, nutrition class, etc.)

2-9. Financial Plan is developed to print MCH HB and related materials regularly with the internal budget for sustainability.

3-1. Health education messages on MCH/RH are selected and approved by National Health Education and Health Promotion Committee.

3-2. Trainings on MCH/RH and Behavior Change Communication skills are conducted for health educators, doctors, nurses, village health workers and community volunteers.

3-3. Trained health staff conduct workshops and health promotion activities in selected communities to promote awareness and behavioral changes among community people.

3-4. Community-based health promotion activities are conducted in coordination with MOH, UN, NGO, and community-based organizations. e.g. Family Health Day, Free Medical Day, Happy Mother's Day,.

3-5. Advocacy and media campaigns are conducted to raise awareness on MCH and RH nationwide. 4-1. Based upon problem analysis of current monitoring and supervision (M&S) system conducted by Community

Health Dept (CHD) and PH1C, plan of action is developed for improvement of M&S. Actions are such as feedback system, motivation of health staff, group supervision, activating network system.

4-2. Actions identified in plan of action of M&S are taken by CHD and district supervisors and officers. 4-3. Impact of continuous usage (from the pregnancy till the child becomes three years old) of MCH Handbook

leaders do not oppose to is identified and shared with national and international MCH/RH health stakeholders. 4-4. Progress, lesson learned and recommendations are presented at the seminar for related ministries, local

governments, donors, and communities. Major Inputs Japanese side Human Resources: JICA experts for the following fields;

-Chief Advisor -Project Coordinator -Maternal and Child Health Service Management -MCH/Partnership Coordination

Trainings: Counterpart trainings in Japan and in the third country Provision of Machinery and Equipment

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Appendx 2 Outline of JICA’s Major Projects

Palestinian side Project office and facilities at each project site (MOH Ramallah, Jericho) Human Resources : JICA experts for the following fields -Project Director -Project Manager

Labor cost of Counterpart Installation and operation of the Joint Coordinating Committee Provition of data and materials related to the project

Closely related projects by Japan

<JICA> ・ Improving Maternal and Child Health/Reproductive Health in Palestine (Phase 2) (Technical Cooperatrion

Project、2008, 11-2012. 11) <Other Japan’s projects> ・ Improving Reproductive Health-Maternity Child Health knowledge and services in Hebron, Halhoul, Tulkarem

and Gaza Districts (Multilateral, 2011. 7-2013. 7) <Intraregional Stabilization Program> ・ Project for Mother and Child Health Care Handbook in Syria(Multilateral, 2009) ・ Implementation (Utilization) of MCH Handbook for Improvement of Maternal and Child Health among

Palestine refugees in Lebanon(Multilateral, before 2010) Relevant cooperation by development partners

・ UNICEF: Reproductive health: child health, infectious disease ・ UNFPA: Reproductive health ・ USAID: Mother and Chaild health ・ Italy: Health information systems

5. SME Development & Export Facilitation

5-1 Jericho Agro-industrial Park (JAIP) development

“The Project for Institutional Strengthening of PIEFZA for the Agro-industrial Park in Jericho” Sector / Area SME development & Export Facilitation

Period September 11 2010–March 2012, (extended) March 10 2013

Scheme Technical Cooperation Projects (private commissioned)

Implementing Agency in Palestine

Palestinian Industrial Estate and Free Zones Authority (PIEFZA), Ministry of National Economy (MoNE)

Consultant (s) in implementation

PADECO Co., Ltd.

Project Site Jericho Target group for technology transfer

PIEFZA Target coverage /area

and beneficiaries

Staff of PIEFZA, Tenants of JAIP, other industrial parks under PIEFZA

Background In July 2006, Japan proposed its concept of creating the Corridor for Peace and Prosperity” in cooperation with Palestinians, Israelis and Jordanians, as a mid-and long term efforts for its contribution to Palestinian efforts to establish a viable Palestinian state with a sustainable economic development as well as the co-existence and co-prosperity of Palestinians and their neighbors. In March 2010, the four parties agreed to start operation of Jericho Agro-Industrial Park (JAIP) by 2012. In October 2010, the inauguration of 1.8 km road to JAIP and the land-breaking for the JAIP’s Stage I land preparation took place in the auspices and presence of H.E. Prime Minister Dr. Salam Fayyad, celebrating Jericho 10,000. JICA supports PA to establish a viable Palestinian state with its sustainable economic development through developing agro-industries, encouraging investment, promoting trade and creating job opportunities in Jericho and the Jordan River Rift Valley in particular and in Palestinian Territory in general, with regional cooperation especially with Israel and Jordan.

Overall Goal Trade investment and economic activities in the Palestinian Territories are promoted through development of JAIP.

Project Purpose To strengthen the capabilities of PIEFZA for smooth and effective development of industrial parks, in particular JAIP.

Outputs

1. Capacity of PIEFZA to develop and supervise industrial parks will be enhanced. 2. Business plan of JAIP is finalized. 3. Information on JAIP is disseminated to potential tenants properly and timely.

Activities 1-1. Examining appropriate roles and organization structure for PIEFZA to establish JAIP. 1-2. Preparation of recommendation for role, function and structure of the Developer and the Operator of JAIP 1-3. Recommendation how to select the Developer and the Operator for JAIP and advising on its actual selection. 1-4. Planning function for one-stop-shop services by PIEFZA. 1-5. Advising PIEFZA on its preparatory activities for establishing JAIP. 2-1. Advising on effective incentive service packages for potential tenants in JAIP. 2-2. Advising on finalizing the conditions of the utility services for JAIP. 2-3. Planning logistic services to be provide in JAIP. 2-4. Finalizing business plan for JAIP. 3-1. Formulating marketing and promotion plan of JAIP. 3-2. Preparing promotion materials (audio, video and printed advertisement). 3-3. Promoting JAIP to and securing potential tenants.

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Appendx 2 Outline of JICA’s Major Projects

Japanese side Human Resources: JICA experts for; -Chief advisor / Industrial park development, project implementation - Marketing plan & dissemination plan -Project coordinator

Local consultants for;-Business Development expert, Legal expert Facility for office space and activities Equipment Local cost: seminars, workshops and others (promotion materials, OA equipment, etc.)

Major Inputs

Palestinian side Human Resources: Palestinian counterpart personnel -Counterparts from Director General and staff of PIEFZA

Project operational cost Training by PIEFZA Facility for office space and activities Equipment

Closely related projects by Japan

<JICA’s cooperation> Preparatory Study for the Project for Introduction of Clean Energy by Solar Electricity Generation System (G/A 2009) Project for Introduction of Clean Energy by Solar Electricity Generation System (2009 0 2011) Preparatory Study for Jericho Wastewater Collection, Treatment System and Reuse (G/A 2011) Jericho Wastewater Collection, Treatment System and Reuse Project (2011 – 2015)

<Other Japan’s projects> Japan – UNDP: Project for the Improvement of Access Roads between Jericho city and JAIP Planned project: JICA Project for Promoting Micro, Small and Medium-sized Enterprises in Palestine

Relevant cooperation by development partners

・ Germany (KfW): Jenin Industrial Estate ・ France (AFD): Bethlehem Industrial Park

6. Agriculture

6-1 Improvement of agricultural technique and income of olive farmers

“The Project on Strengthening Support System Focusing Sustainable Agriculture in Jericho and the Jordan River Rift Valley

(ASAP)” Sector / Area Agriculture

Period Mar..2007 – Mar.2010 Scheme Technical Cooperation project (private commissioned)

Implementing Agency in Palestine

The Palestinian ministry of agriculture(MoA)、National Agriculture Research Center (NARC), Middle East Regional Agricultural Programme(GDERD, MoA)

Consultant (s) in implementation

Nippon Koei Co., Ltd.

Project Site Jericho, the Jordan Valley

Target group for technology transfer

National Agricultural Research Center (NARC) demo-farmers, key-farmers, farmers near the demo farms

Target coverage /area

and beneficiaries

Target group and target farmers in Jericho and the Jordan River Rift Valley area

Background The Jordan River Rift Valley is located in the eastern part of the West Bank with an area of approximately 1,000 sq km and a population of 89,000. Agriculture, as a main industry in this area, has been playing an important role in the regional economy; accounting for 70% of the working population and producing 12% of the gross domestic product (GDP) in the West Bank.

Agricultural land in the Jordan River Rift Valley is about 13,500 ha, 4,000 ha (cropping area) of which is under irrigation in Jericho. The main problems of the agriculture in this area are; (1) poor farming technology, (2) poor water management, (3) salinization of farm land, (4) shortage of fertilizers and chemicals (and the effect of inflation on the cost of these inputs) and (5) limited access to the market due to the control by Israel. However, effective measures to address mentioned problems have not been sufficient.

Under these circumstances, based on the integrated agricultural development plan proposed in “the Study on Jericho Regional Development Master Plan”, the Project Formulation Mission for Agriculture and Agribusiness Development Program was dispatched by JICA in November 2006 and ideas were exchanged with Palestine National Authority (PNA). In response to the official request of PNA, the Project to establish an effective research and extension system was discussed and agreed upon by both parties. The Project started in March 2007 based on the Record of Discussions (R/D) signed on February 27, 2007.

Overall Goal To improve agricultural productivity of peasants/small farmers in order to realize “the Corridor for Peace and Prosperity”

Project Purpose To establish a basis for the effective agricultural extension system through direct linkage between research and extension

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Appendx 2 Outline of JICA’s Major Projects

Outputs 1. The research for cycle-oriented agriculture, water saving agriculture and soil conservation are practiced in consideration of the technology suitable for indigenous conditions.

2. The extension activity by Extension Subject Matter Specialist (ESMS) and Extension Agents brisk up 3. The peasants/small farmers in the project sites start executing cycle-oriented agriculture, water saving

agriculture and soil conservation Activities 0-1 Formulate the taskforce/committees for the project implementation while paying attention to collaboration

between research and extension 0-2 Review the past and existing research and extension activities in the project sites 0-3 Conduct base line surveys in the project sites 0-4 prepare a detailed plan of operation 0-5 Select farmers for demonstration and agricultural research farms for new technologies and crops 1-1 Research new crops of which introduction to the project site is promising 1-2 Prepare the above mentioned new promising crops 1-3 Research cycle-oriented agricultural technology and systems 1-4 Propose the above mentioned technology and systems 1-5 Research the technology and systems for the water saving agriculture and soil conservation 1-6 Propose farming methods based on the above 2-1 Identify needs and themes in terms of extension activities 2-2 Improve education and training curriculums for extension agents and reinforce a system for an

implementation of them 2-3 Modify and improve the existing guidelines, manuals and extension materials 2-4 Train extension agents 3-1 Offer the technology and know-how necessary for peasants/small farmers through extension activities (OJT)

and training, which include operation of demonstration and agricultural research farms 3-2 Improve functions of “the system of extension from farmer to farmer” and “the farmer’s field school”

through the extension activities (OJT) including operation of demonstration and agricultural research farms 3-3 Conduct small scale production activities focusing on women, who are concerned with demonstration and

agricultural research farms 3-4 Support acquisition of available micro credit Japanese side Human Resources: JICA experts for the following fields:

-Team Leader / Field Irrigation / Water Management - Farm Management / Extension Trainings organization and implementation:

- Training in Japan “Researches and extension agents” - Training in the third country “Researchers and extension agents”, -Training in the third country “Farmer training”

Workshops and seminars Equipment procurement:

-equipment for cycle-oriented agriculture, saving water agriculture, -equipment for soil conservation and introduce new promising crops -equipment for conducting extension and training activities -vehicles for monitoring, and others

Major Inputs

Palestinian side Human Resources : Palestinian counterparts personnel Office space for JICA experts other facilities and materials needed for activities

Closely related projects by Japan

<JICA’s cooperation> ・ Improved Extension for Value-Added Agriculture in the Jordan River Rift Valley (EVAP) (Technical

Cooperation Project, Sept. 2011-Jen. 2015) <Corridor for Peace and Prosperity> ・ Capacity Development for Agricultural Research and Development in the Palestinian National Authority (Third-country Training, Nov. 2009-Mar. 2012)

Relevant cooperation by development partners

・ FAO: Policy planning assistance for Ministry of Agriculture、Technical assistance for planning of Agriculture Sector Strategy 2011-2013, assistance for Plan of Action of NDP with 6 components –USD 57.1 million

・ Spain (AECID) : Problem assessment, planning and technical assistance for Ministry of Agriculture, organization reform and functional enhancement, Spanish Cooperation (AECID) Institution-building project. Technical assistance for planning of Agriculture Sector Strategy 2011-2013 Assistance for recruitment for Ministry of Agriculture

・ USAID: US$50 million for private sector support project, of which agriculture is a major component. The food and security programme in Gaza (recently completed). Coming program for private sector development for agricultural value chain including export business.

・ UN/ OCHA- projects by CAP - US$10.4M (shared by 26% of whole CAP programs)

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Appendx 2 Outline of JICA’s Major Projects

“Improved Extension for Value-Added Agriculture in the Jordan River Rift Valley (EVAP)”

Sector / Area Agriculture

Period September 11 2011-Janvier 10 2015 Scheme Technical Cooperation Project

Implementing Agency in Palestine

The Ministry of Agriculture (MoA), National

Agriculture Research Center (NARC)

Consultant (s) in implementation

Nippon Koei Co., Ltd., Appropriate Agriculture International Co., Ltd. (JV)

Project Site The Jordan River Rift Valley (Jericho、Nablus and Tubas)

Target group for technology transfer

Ministry of Agriculture (MoA)、National Agriculture Research Center(NARC), Extension officers of Community Development Department, Planning Department, Soil & Water Department , and Marketing Department of MoA, Small sized farmers.

Target coverage /area

and beneficiaries

Target farmers in Jericho and the Jordan River Rift Valley area

Background In 2007, the agriculture sector contributed 8.2% of the total GDP. Agricultural export represents 25% of the total export earnings. The agricultural sector employed about 15.7% of the total working population. Agriculture has been playing an important role in economic and social development of Palestine. The Project for Strengthening Support System Focusing on Sustainable Agriculture (hereinafter referred to as “ASAP”), started in March 2007 based on the Record of Discussion (R/D9 signed on February 27, 2007

Since ASAP introduced the Demonstration and Agricultural Research Farm (hereinafter referred to as “DARF”) as a platform for participatory research and extension, the stakeholders concerned with extension system such as researchers from National Agricultural Research Center (hereinafter referred to as “NARC”), Subject Matter Specialists (hereinafter referred to as “SMSs”) from General Directorate of Extension and Rural Development (hereinafter referred to as “GDERD”), extension agents (hereinafter referred to as “EAs”) from Departments of Agriculture (hereinafter referred to as “DoA”), Demo-farmers and Key-farmers have been give opportunities to work together and learn from each other in a cooperative matter to find out solutions of actual obstacles on the farms. As a result the Projects Purpose “To establish a basis for the effective agricultural extension system through direct linkage between research and extension” was achieved. However, to sustain and intensify such direct linkage between research and extension for effective extension system and to make it help improvement of livelihood of farmers in the Project area are further challenges.

In response to the request from PNA on technical cooperation for Strengthening Support System Focusing on Sustainable Agriculture Phase 2, JICA dispatched the Detailed Planning Survey Team to examine a framework of the Project.

Overall Goal (1) Agricultural economy is enhanced in the Jordan River Rift Valley (2) Farmer’s livelihoods are improved in the Jordan River Rift Valley

Project Purpose Agricultural profitability of targeted small and medium sized farmers in the Jordan River Rift Valley is improved

Outputs 1. The targeted small and medium sized farmers and farmers’ organizations’ capacity to respond to the market is improved

2. The targeted small and medium sized farmers and farmers’ organizations acquire the techniques and information to yield value-added agricultural produce

3. The extensionists acquire necessary techniques and information for extending Value-Added Agriculture Activities 1-1 Formulate a task force committee for project implementation

1-2 Conduct a baseline survey and market survey to understand the current situation of small and medium sized farmers and farmers’ organization

1-3 Select farmers’ organizations to be targeted by the project 1-4 Provide training for farm business linkage stakeholder forums for farmers’ organizations 1-5 Organize farm business linkage stakeholder forums for farmers’ organizations 1-6 Provide market information to the farmers 1-7 Provide training for collective selling/purchasing to the farmers’ organizations 2-1 Formulate a task force committee for project implementation 2-2 Conduct a baseline survey and market survey to understand the current situation of small and medium

sized farmers 2-3 Select farmers’ organizations to be targeted by the project 2-4 Develop an extension plan to extend knowledge and modern techniques necessary for effective farming

and farm management 2-5 Produce extension materials for the farmers 2-6 Implement the extension plan (which is developed in activity 2-4) 2-7 Monitor the progress of the farm management by the farmers 3-1 Identify the modern techniques and knowledge to transfer to the farmers, conduct laboratory analysis, and

give recommendations 3-2 Conduct trainings (on modern techniques and knowledge as specified in activity 3-1) for extensionists

Major Inputs Japanese side Human Resources: JICA experts for the following fields - Chief advisor, field Irrigation/water economy, agricultural extension, farm management, horticulture, livestock husbandry, marketing, project coordinator, etc

Training

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Appendx 2 Outline of JICA’s Major Projects

-Trainings in Japan and third country Equipment and materials Local operational costs: budget for activities

Palestinian side Human Resources: Palestinian counterpart personnel; -Project Director, Project Manager, -Subject Matter Specialist (SMS), Extension Agents (EA) -other relevant officials of the Ministry of Agriculture

Office space and necessary facilities at Ramallah, Jeicho, Tubas, Nablus for experts Local cost (budgetary information such as salary for counterparts, transportation, etc)

Closely related projects by Japan

<JIC’s cooperation> ・The Project on Strengthening Support System Focusing Sustainable Agriculture in Jericho and the Jordan River

Rift Valley (ASAP)(Technical Cooperation Project, Mar. 2007-Mar. 2010) <Corridor for Peace and Prosperity> ・Capacity Development for Agricultural Research and Development in the Palestinian National Authority (Third-country Training, Nov. 2009-Mar. 2012)

Relevant cooperation by development partners

・ FAO: Policy planning assistance for Ministry of Agriculture、Technical assistance for planning of Agriculture Sector Strategy 2011-2013, assistance for Plan of Action of NDP with 6 components –USD 57.1 million

・ Spain (AECID) : Problem assessment, planning and technical assistance for Ministry of Agriculture, organization reform and functional enhancement, Spanish Cooperation (AECID) Institution-building project. Technical assistance for planning of Agriculture Sector Strategy 2011-2013 Assistance for recruitment for Ministry of Agriculture

・ USAID: US$50 million for private sector support project, of which agriculture is a major component. The food and security programme in Gaza (recently completed). Coming program for private sector development for agricultural value chain including export business.

・ UN/ OCHA- projects by CAP - US$10.4M (shared by 26% of whole CAP programs)

“Capacity Development for Agricultural Research and Development in the Palestinian National Authority” (Training in Jordan)

Sector / Area Agriculture

Period November 2009-March 2012 Scheme Training in Jordan (bilateral for Jordan under Japan-Jordan Partnership programme

Implementing Agency in Jordan

Jordan National Center for Agricultural Research and Extension (NCARE) of Ministry of Agriculture

Training organizer / programmer

JICA Jordan Office

Project Site Jordan

Target group for

technology transfer

Researchers at NARC, Extension

agents at MoA

Target coverage /area

and beneficiaries

Researchers at NARC, Extension agents at

MoA

Background Agriculture in Palestine is considered as one of the major industries at the production sector, which accouts for 10 % of GDP and 20 % of total export revenue, and shares 15% of total labors (source: PRDP2008-2010, PNA). Recently moreover, along with the international price escalatioin of food, it has become recognized that agriculture is an important sector for escaping a global food crisis and stabilizing the social security. The development of researchers capacity, extension agents knowledge & skills as well as production technology among farmers are included as effective approaches for addressing sector’s issues. JICA has assisted Palesine with “the Project on Strengthening Support System Focusing Sustainable Agriculture in Jericho and the Jordan River Rift Valley (ASAP)” followed by “the Improved Extension for Value-Added Agriculture in the Jordan River Rift Valley (EVAP) “ as one of the said approaches.

Overall Goal Effective implementation of needs based agriculture research and technology extension

Project Purpose Reaserachers at NARC (currenlty a deparmtne at MoA) has developed their research capacities and extension agents at MoA has acquire the agriculture technology extension.

Outputs 1 Researchers at MoA (ex-NARC researcher) and extension agents acquire the agriculture research method. 2 Researchers at MoA (ex-NARC researcher) acquire the tissue culturing, crop prevention, analysis technique. 3 Researchers at MoA (ex-NARC researcher) acquire the husbandry research technique. 4 Extension agents at MoA acquire the crop cultivation/ seed outputs, bee keeping technique. 5 Extension agents at MoA acquire the media materials development technique.

Note: NARC was absorbed into MoA in 2010.

Activities Intensive training on the following fields: 1. Agriculture research methodology 2. tissue culturing, crop prevention, analysis technique 3. husbandry, poultry raising 4. crop cultivation/ seed outputs, bee keeping technique 5. Management method for extension, media materials development and so forth 6. Technical cooperation and external affairs

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Appendx 2 Outline of JICA’s Major Projects

Japanese side Bears the 15-30% of program cost

Jordan side Bears the 15-30% of program cost Instructors Facilities, equipment and materials for Training Expense and arrangement for monitoring and evaluation

Major Inputs

Palestinian side Trainees assignment

Closely related projects by Japan

<Other Japan’s cooperation> ・ The Project on Strengthening Support System Focusing Sustainable Agriculture in Jericho and the Jordan

River Rift Valley (ASAP)(Technical Cooperation Project, Mar. 2007-Mar. 2010) ・ Improved Extension for Value-Added Agriculture in the Jordan River Rift Valley (EVAP) ( Technical

Cooperation Project, Sep.2011-Jan.2015)

Relevant cooperation

by development

partners

・ AFD / French NGO: Olive production and olive oil export ・ FAO: Policy planning assistance for Ministry of Agriculture、Technical assistance for planning of Agriculture

Sector Strategy 2011-2013, assistance for Plan of Action of NDP with 6 components –USD 57.1 million ・ Spain (AECID): Problem assessment, planning and technical assistance for Ministry of Agriculture,

organization reform and functional enhancement, Spanish Cooperation (AECID) Institution-building project.

Technical assistance for planning of Agriculture Sector Strategy 2011-2013 Assistance for recruitment for Ministry of Agriculture ・ USAID: US$50 million for private sector support project, of which agriculture is a major component. The

food and security programme in Gaza (recently completed). Coming program for private sector development for agricultural value chain including export business.

・ UN/ OCHA- projects by CAP - US$10.4M (shared by 26% of whole CAP programs)

6-2 Agro-management and income generation of olive farmers

“Building stabilized communities through the quality improvement of the Palestinian olive products by introducing

ecological and water-sparing farming methods”

Sector / Area Agriculture

Period April 21 2008-October 21 2010 Scheme Grassroots Technical Cooperation (Partnership)

Implementing Agency in Palestine

Economic & Social Development Center of Palestine (ESDC)

Consultant (s) in implementation

Nippon International Cooperation for Community Development (NICCO)

Project Site Tubas prefecture in Jordan Valley

Target group for

technology transfer

Economic & Social Development Center of

Palestine (ESDC), Olive Farmers

Target coverage (area )

and beneficiaries

Olive Farmers in Tubas prefecture

Background In Tubas region, 60% of workforce is engaged in Agriculture, and the one of major products is olive oil. The

annual precipitation is merely approximately 350 mm in its comparatively dry climate; agriculture relies on the

natural rainfall as water resources. The income from olive farmers is unstable due to small sales market share

and/or production cost increase in international market, .although olive oil is major agro- products. To create a

stable farm community, it is necessary to improve products’ quality and expand market sales.

Overall Goal Building stabilized and self-dependent communities through environmental friendly agriculture with ‘permaculture’ method in cooperation with NGOs working in close countries.

Project Purpose To realize the income generation in olive farmers in Tubas (about 750 households, 3,750 persons) through networking of quality olive production by permaculture method and sales market expansion in intra-regional countries.

Outputs 1. Production of high quality olive oil by the method permaculture. 2. Participation into international market. 3. Increase of opportunities of knowledge exchange among people working in olive oil production in Palestine

and surrounding countries.

Activities 1. To transfer technology on soil improvement, water catching, insects control, intercropping, afforestation planning, and so on for improving the quality of olive. To enhance the oil processing by consultation on harvest, transportation, oil extraction, labeling on products, and its surveys.

2. To expand partnership with NGOs supporting the exports, and to survey companies joining international trades. To networking with new sales line by joining international olive oil farm corporation or association.

3. To have opportunities of knowledge exchange among olive oil farmers’ corporation as much as possible.

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Appendx 2 Outline of JICA’s Major Projects

Japanese side Human resource: experts for the following fields -Project manager, resource plants, expert for marketing, NICCO staff

Materials procurement: Seeds for agro-products, seeds bed, and others

Major Inputs

Palestinian side Human resource: -Staff at ESDC, for consultation of agriculture technology, -Local NGO(Peres Centre)for marketing support

Materials procurement: olive trees, model farms fields, Workshop organizations and its expense, Office space rental fee , etc.

Closely related projects by Japan

<Other Japan’s cooperation> “Olive Pest Control and Poverty Reduction of Women’s Groups in the West Bank, Occupied Territory of Palestine” (JNGA)(JFY2010-JFY2014)

Relevant cooperation

by development

partners

・ AFD / French NGO: Olive production and olive oil export ・ FAO: Policy planning assistance for Ministry of Agriculture、Technical assistance for planning of Agriculture

Sector Strategy 2011-2013, assistance for Plan of Action of NDP with 6 components –USD 57.1 million ・ Spain (AECID): Problem assessment, planning and technical assistance for Ministry of Agriculture,

organization reform and functional enhancement, Spanish Cooperation (AECID) Institution-building project. Technical assistance for planning of Agriculture Sector Strategy 2011-2013 Assistance for recruitment for Ministry of Agriculture

・ USAID: US$50 million for private sector support project, of which agriculture is a major component. The food and security programme in Gaza (recently completed). Coming program for private sector development for agricultural value chain including export business.

・ UN/ OCHA- projects by CAP - US$10.4M (shared by 26% of whole CAP programs)

“Quality Improvement of Olive Crop through introducing Environmentally Friendly Water-Saving Farming Method, and

improvement of farmer's income though capacity building of "Tubas Holy Tree Cooperative”

Sector / Area Agriculture

Period November 1 2010 -March 31 2012 Scheme Grassroots Technical Cooperation (Partnership)

Implementing Agency in Palestine

Economic & Social Development Center of Palestine (ESDC)

Consultant (s) in implementation

Nippon International Cooperation for Community Development (NICCO)

Project Site Tubas prefecture in Jordan Valley

Target group for technology transfer

Olive Farmers, Tubas Holy Tree Cooperative

Target coverage /area

and beneficiaries

Olive Farmers in Tubas prefecture Tubas Holy Tree Cooperative

Background In Tubas region, 60% of workforce is engaged in Agriculture, and the one of major products is olive oil. The annual precipitation is merely approximately 350 mm in its comparatively dry climate; agriculture relies on the natural rainfall as water resources. The income from olive farmers is unstable due to small sales market share and/or production cost increase in international market, .although olive oil is major agro- products. To create a stable farm community, it is necessary to improve products’ quality and expand market sales.

The preceding project (Phase I) has worked on the value adding to olive oil and to production of extra virgin oil to be sold in international market. This project continues to work in the quality improvement of olive oil and sustainable production of farmers through technology & consultancy to ‘Tubas Holy Tree Cooperative’.

Overall Goal To realize self-dependent economic lives among olive farmers and stabilized intraregional communities.

Project Purpose -Quality of olive oil is improved by permaculture method. -Capacity development of ‘Tubas Holy Tree Cooperative. -Sales expansion for the income generation of olive farmers

Outputs 1) Establishing a sustainable production system of high quality olive oil products by olive farm Cooperative and farmers

2) Expansion of international market

Activities 1) Capacity building of Tubas Holy Tree Corperative. 1 To train Cooperative members for sustainable agriculture 2 To network with other cooperatives or associations. 3 To develop sales market lines.

2) Development of permaculture method technology 1 To develop pilot farms based on permaculture 2 To improve water conservation technique a.Water catching

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Appendx 2 Outline of JICA’s Major Projects

b.Reuse of households’ waste water 3 To make a soil improvement a.Introduction of simple organic compost b.Distribution of seeds for intercropping 4 To plant sustainable farm tree

3) Increase of values added to agro-products including olive 1 Transferring the technique to Cooperative of high quality olive processing. 2 Quality control by inspecting agency 3 Bottling system by Cooperative 4 Wrapping design and sales campaign 5 Products improvement and development from olive oil by female groups

4) Market sales expansion 1 To make Sample products 2 To network farmers with olive oil companies and /or buyers, retail sales a.To participate into meeting of olive oil companies in intraregional areas outside Palestine b.To exhibit products at fairs c.To provide consultation to farmer in business negotiation with buyers or retailers.

Japanese side Human resource: experts for the following fields -Project manager, experts for Agriculture, NICCO staff

Materials procurement: -bottle, package etc for products wrapping or sales, -seeds bed, compost, office equipment,

Facilities: office space

Major Inputs

Palestinian side Human resource: Staff at ESCD, Olive Farmers, Womens group, members of Cooperative Materials: Demo farm, seeds beds etc.

Closely related projects by Japan

<JICA’s cooperation> “Building stabilized communities through the quality improvement of the Palestinian olive products by introducing ecological and water-sparing farming methods” (April 2008- October 2010) <Other Japan’s cooperation> Olive Pest Control and Poverty Reduction of Women’s Groups in the West Bank, Occupied Territory of Palestine(JNGA)(JFY2010-JFY2014)

Relevant cooperation

by development

partners

・ AFD / French NGO: Olive production and olive oil export ・ FAO: Policy planning assistance for Ministry of Agriculture、Technical assistance for planning of Agriculture

Sector Strategy 2011-2013, assistance for Plan of Action of NDP with 6 components –USD 57.1 million ・ Spain (AECID) :

Problem assessment, planning and technical assistance for Ministry of Agriculture, organization reform and functional enhancement, Spanish Cooperation (AECID) Institution-building project. Technical assistance for planning of Agriculture Sector Strategy 2011-2013 Assistance for recruitment for Ministry of Agriculture

・ USAID: US$50 million for private sector support project, of which agriculture is a major component. The food and security programme in Gaza (recently completed). Coming program for private sector development for agricultural value chain including export business.

・ UN/ OCHA- projects by CAP - US$10.4M (shared by 26% of whole CAP programs)

6-3 Water resource development & Supply

“The Feasibility Study on the Water Resources Development and Management in Jordan River Rift Valley” Sector / Area Water Supply & Waste Water Management Period March 26 2007-Janvier 26 2009 Scheme Feasibility Study (F/S) Implementing Agency in Palestine

Palestinian Water Authority (PWA), Ministry of Agriculture

Consultant (s) in implementation

Nippon Koei Co., Ltd.

Project Site Jordan River Rift Valley and its surrounding areas

Target group for technology transfer

Ministry of Agriculture (MoA) Palestinian Water Authority (PWA)

Target coverage /area and beneficiaries

Citizens, farmers, industries in Jordan River Rift Valley

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Appendx 2 Outline of JICA’s Major Projects

Background Jordan River Rift Valley, covering Jericho and Tubas regions, is more than 1,000 thousand square kilometers in area having populations of 89,000, located in the east part of the West Bank. It has a desert climate with annual rainfall of 200 to 300 mm. Spring water and well water are the only sources to cater water supply to the regions. Agriculture is the key industry for stabilization and development having 12% contribution to GDP over the region, in which 70 % of whole active population is engaged. The allocation of water supply is 95% to agriculture and the remaining 5% to domestic daily life use. Nearly all of agricultural water is used for farm livestock rearing as well as agricultural irrigation. While the water use of the region requires coordination between Palestine and Israel and it would be difficult to develop water resource without any commitment of Israel, it is also important for Palestine to improve their use of agricultural water, effective use of existing water resource, and its resource development.

This Feasibility Study was conducted for the purpose of the reduction of water loss in the spring water conveyance, reuse of well water, storm-water detention and so on, according to the program proposed by “Jericho Development Study” (2006), namely, agriculture and agro-business development.

Overall Goal To enhance agricultural production making efficient use of limited available water resources for agriculture in the Jordan River Rift Valley under the concept of “The Corridor of Peace and prosperity”.

Project Purpose 1. To formulate a basic plan on water resources development and to conduct feasibility study on selected water resources management schemes for water resource development and for efficient utilization of water for agriculture including implementation of small scale pilot projects,

2. To carry out technology transfer to Palestinian counterpart personnel through on-the-job training in the course of the Study.

Outputs 1. To clarify the feasibility of implementation of spring water conveyance system, as well as renovation of existing wells for agriculture use based on the master plan identified by “Jericho Development Study” (2006).

2. To formulate an organization plan for effective and equitable water resource allocation in the implementation design at the mentioned above # 1.

3. To identify new water resource development feasibility around the watershed of Wadi Qilt and Wadi Al-Fara, considered having potentials for development,

4. To compile the findings of above 1 to 3 so as to discuss that with Israeli Authority and to 認手続きを得る。Activities Phase 1: Formulation of technical and socio-economical basic design

1-1 To survey the status of use of existing water resource wells and potential for resource development potentiality. 1-2 To survey the feasibility of implementation of spring water conveyance system, 1-3 To survey for water wells renovation and resource shared use system, 1-4 To survey the feasibility to develop storm-water detention / flood storage around the watershed of Wadi Al-Qilt

and Wadi Al-Fara. Phase 2: Formulation of renovation & rehabilitation projects in identified sites over Phase 1 2-1 To implement pilot projects and its monitoring activities, 2-2 To formulate plans at priority sites for a spring water conveyance system, agricultural wells renovation &

rehabilitation, and shared use of water resources. 2-3 To feed the impact assessment of pilot projects and its findings back to renovation & rehabilitation planning 2-4 To create projects plans Japanese side Human Resources: JICA consultants for the fields of;

a. Project manager and Water resource management, b. soil moisture analysis, underground seepage analysis, and storm-water detention, c. water and soil analysis, satellite image for land use, d. renovation plan and design, e. water management at farm fields, water association organization, pilot projects monitoring, f. impact assessment including EIA, financial analysis, g. organization of counterparts training program

Supply of equipment needed for surveys.

Major Inputs

Palestinian side Human Resources: Counterpart personnel Closely related projects by Japan

<JICA> “Preparatory Survey on Improvement of Domestic and Agricultural Water Systems in Jordan Valley” (2011-2012)Training programme in Jordan: Water Resource Management for Palestinians (F2005-FY2011)

Relevant cooperation by development partners

・ Germany: a. Financial assistance to Waste water treatment by KFW, b. Technical cooperation of GIZ in Training

needs assessment, preparation of “National training policy in Water” (2010) ・ France AFD / NGO (agence francais de development): F/S for preparation of Training center(2011) ・ Norway NORAD: Palestine Water Report (Mary. 2011) ・ Sweden SIDA: Experts ( dispatch 2011)

7. Tourism

7-1 Improvement of tourism administration, tourism promotion and product development

“Sustainable Tourism Development in Jericho through Public-Private Partnership”

Sector / Area Tourism

Period 27. Feb. 2009-26. Feb. 2012 Scheme Technical Cooperation Project

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Appendx 2 Outline of JICA’s Major Projects

Implementing Agency in Palestine

Ministry of Tourism and Antiquities (MoTA), Jericho

Consultant (s) in implementation

Project Site Jericho Target group for technology transfer

Ministry of Tourism and Antiquities (MoTA), Jericho, Jericho Heritage and Tourism Committee (JHTC)、Local Action Group

Target coverage /area and beneficiaries

Public and private bodies, enterprises, citizens and tourists in Jericho

Background Because of its rich tourism resources such as Bethlehem, Jericho, and East-Jerusalem, tourism sector has played a very important role in economy of Palestine. Especially, Jericho has approximately 10,000 years of its history and regarded as one of the oldest cities in the world. More than 500 historical/cultural heritages such as “Tell es-Sultan",‘‘Hishamls Palace",and "Mount of Temptation" are located in Jericho and Jordan Valley.

However the number of tourist was 230 thousand to 250 thousand from 1998 to 2000 and tourism related infrastructures such as hotels were developed at that time, the number of tourists sharply decreased to only 1200 in 2001 after the second intifada and it caused serious decrease of income from tourism. In 2005 when the security situation recovered, then number of tourists increased again to approximately 100 thousand and the tourism is expected to maintain its importance as one of the most important industries in Jericho. The hindering issues of tourism sector in Jericho in addition to security matters, insufficient utilization of historical/cultural heritages, lack of tourism products, lack of public relations about tourism information and so on, and it is expected to develop tourism in Jericho by improving such situations.

From the background mentioned above, Palestinian Authority requested JICA to implement technical cooperation Project, and the project on ''Sustainable Tourism Development in Jericho through Public-Private Partnership" has been implemented since 2009 until 2012.

Overall Goal Jericho community gains socio-cultural and economic benefits through their engagement in sustainable tourism development

Project Purpose A sustainable tourism development system developed through public-private partnership that directly benefits the community is established in Jericho.

Outputs 1. Institutionally and financially sustainable public-private partnership tourism development organization, Jericho Heritage Tourism Committee (JHTC) is established.

2. Concepts of and strategies for tourism development in Jericho are developed and regularly revised by JHTC and the community..

3. The system of developing tourism products are developed by JHTC and Local Action Groups (LAGs). 4. The capacity of JHTC and LAGs to implement pilot projects is strengthened

Activities 1-1 MoTA, Jericho Municipality and the private sector clarify ToR of JHTC. 1-2 MoTA, Jericho Municipality and the private sector clarify the institutional status of JHTC. 1-3 MoTA, Jericho Municipality and the private sector clarify the funding scheme of JHTC. 1-4 MoTA formulates JHTC as a result of 1-1 to 1-3. 1-5 JHTC facilitates the formation official business associations and community-based organizations in

consultation with the relevant national bodies. 2-1 MoTA and Jericho Municipality organize treasure hunting and identify needs and themes regarding the

uniqueness of Jericho through community participation. 2-2 MoTA and Jericho Municipality conduct market research. 2-3 JHTC and the community clarify and agree on the concept of Jericho tourism development 2-4 JHTC and the community develop and agree on a strategy for Jericho tourism promotion.

Japanese side Human Resources: JICA experts for the following fields; -Chief advisor,

- Regional development & promotion / Sub chief advisor - Regional organization/coordinator -Jericho Tourism strategy development

Trainings in Palestine and abroad -Trainings in Japan (MoTA, Jericho, JHTC) -Training in the third countries -Training of Palestinian personnel in Palestine if necessary

Workshops and seminars -Workshops and seminars will be held when necessity arises for the smooth implementation of the technology transfer and information sharing.

Equipment procurement: -for project and pilot sub-projects activities

Major Inputs

Palestinian side Human Resources: Palestinian counterparts personnel as follows; -Project Director (MoTA), Project Manager(MoTA), Project Coordinator (MoTA) -JHTC (MoTA, Jericho Municipality, private sector and LAGs)

-Staff from Jericho municipal office Facilities: office space for JICA experts

Closely related projects by Japan

<JICA’s cooperation> ・ Sustainable Tourism Development in Jericho through Public-Private Partnership (Phase 2)(Planned, Technical

Cooperation Project, 2012-2016) Relevant cooperation by development partners

・ UNESCO: Inventory for cultural assets (whole Palestine) , ・ Italian Cooperation: Renovation of Mosaic art in Hisham Palace ・ USAID: Renovation of Exhibit hall at Hiisham Palace

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Appendx 2 Outline of JICA’s Major Projects

8. Water & Waste Water Management

8-1 Water engineers technology development

“Water Resource Management for Palestinians” (Training in Jordan)

Sector / Area Water supply and Waste water management

Period FY2005 - FY2012 Scheme Training in Jordan (bilateral for Jordan, under the Corridor for Peace and Prosperity programme)

Implementing Agency in Jordan

Jordan Water Authority of Ministry of Water and Irrigation

Training organizer / programmer

JICA Jordan Office

Project Site Jordan

Target group for

technology transfer

Palestinian officers and engineers at PWA,

Ministry of Local Government,

Municipalities, other Water departments or

municipal offices

Target coverage /area and beneficiaries

Palestinian officers and engineers at

PWA, Ministry of Local Government,

Municipalities, other Water

departments or municipal offices

Background The decrease of rainfall that begun in latter half of 20 centruy, togher with the global warming, has brought about the tension among intraregional countries in water allocation of Jordan River ore the middle east region geographically and climatically in a dray environment. Moreover, the population expansion in Levanon, Syria, Jordan, Israel and Palestine has also affected the issue of water shorage. The available water supply is limited as almost all the water resources over occupied Palestine territory are under the control of Israel.

Under this circumstances, new innovative measures became needed for addressing the above mentioned issues, such as of water leak prevention, effective water use, water-saving, saline water conversion, purification of brackish water, waste water treatment and reuse system and so on. JICA has been assisting engineers techonology development to respond the cooperation request from Palestinian Water Authority (PWA) since FY2005 by the Training program in Jordan. The training program has covered so far water supply system maintenance, waste water treatment, prevention of water absortiono into soil, wells maintenance, and management skills. However, there are other important technical fields which were not included in the said program, and advanced courses of exising program are considered needed for further development.

Overall Goal Improvement of tehnoclogy in water supply and waster water management in Palestine

Project Purpose Establishment of basic system of water supply and waste water management at PWA

Outputs 1 Devleopmnet of skills and knowledge among engineers engaging in wataer supply system and its management at PWA

2 Devleopmnet of skills and knowledge among engineers engaging in waste water management at PWA

Activities To conduct the trainings on the following technical fields. Improvement of Water supply system 1 Maintenance of existing wells 2 Water quality control 3 Maintenance of water supply system 4 Prevention of water absortiono into soil including water leak 5 Set up the water measuring instruments and maintenance Waste water treatment 6 Maintenance of waster water system 7 Waste water management

Japanese side Bears 70 - 85% of program cost Dispatch of monitoring team

Jordan side Bears 15-30% of program cost Cost for Trainings including GI compilation Facilities, equipment and materials for trainings Instructors Cost and arrangement for monitoring and evaluation

Major Inputs

Palestinian side Trainees assignment and dispatch

Closely related projects by Japan

<JICA> ・ The Feasibility Study on the Water Resources Development and Management in Jordan River Rift Valley

(Mar. 2007-Jan. 2009) ・ Technical Assistance and Capacity Building Project for the Jericho Sanitation Project(Technical

Cooperation ・ Project, 2012-2016)

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Appendx 2 Outline of JICA’s Major Projects

Relevant cooperation

by development

partners

・ Germany: a. Financial assistance to Waste water treatment by KFW, b. Technical cooperation of GIZ in Training needs assessment, preparation of “National training policy in Water” (2010)

・ France AFD / NGO (agence francais de development): F/S for preparation of Training center(2011) ・ Norway NORAD: Palestine Water Report (Mary. 2011) ・ Sweden SIDA: Experts ( dispatch 2011)

8-2 Sewage disposal plant construction and operation

“Jericho Wastewater Collection, Treatment System and Reuse Project” Sector / Area Water & Waste Water Management Period February 28 2011–January 31 2015 (including

construction, detail design and tender) Scheme Grant Aid

Implementing Agency in Palestine

Palestinian Water Authority (PWA), Jericho Consultant (s) in implementation

NJS CONSULTANTS CO.,LTD

Project Site Jericho Target group for technology transfer

Palestinian Water Authority (PWA), Jericho Target coverage /area and beneficiaries

Citizens in Jericho and in Jordan River Rift Valley

Background The retention of waste water in the Jordan River Rift Valley has been a problem to deal with due to its geographical feature and lack of appropriate water treatment facilities. Contamination of the underground water vein in Jericho was found in January 2010, which highlights the importance of the issue.

Jericho’s population stands out in the Jordan River Rift Valley area and it is expected to increase significantly. Jericho is also rich in sightseeing resources such as the Dead Sea and its tourists are expected to increase.

Currently Jericho turns majority of its water resource to the standing water and water vein. Potential of water development, however, is limited by political relationship with neighboring Israel. Appropriate water treatment is not only a concern for Israel but an important task for peace in Middle East. In addition, reuse of the treatment water is expected as a new water resource in warm agricultural area.

Overall Goal Contribution to socio-economic development in Jericho and the vicinity by improvement of sanitary conditions and securement of water resource by introduction of the sewage treatment plant and reuse of wastewater.

Project Purpose Completion and operation of the sewage treatment plant

Outputs 1. Construction of Sewage treatment plant(planned amount of treat water 9,800m3/day) , PV panel (output 100kW), overflow pipes、drainpipes (main, branch)

2. Appropriate Soft Component activities Activities 1. Civil works,

2. Equipment procurement, 3. Soft Component

(construction supervision at facility construction, planning and staff training for operation & maintenance and monitoring)

Japanese side Human Resources: JICA consultants, project staff Equipment supply: for civil works, and for water quality tests

Major Inputs

Palestinian side Human Resources: Counterpart personnel for HR and technical staff Site /land for the sewage treatment plant

Closely related projects by Japan

<JICA> Technical Assistance and Capacity Building Project for the Jericho Sanitation Project(Technical Cooperation Project, 2012-2016) Training programme in Jordan: Water Resource Management for Palestinians (F2005-FY2011)

<Other Japan’s projects> Programme for Construction of Sewage System for Promoting Mutual Confidence(through UNDP)(Emergency Grant Aid, before 2010-2012) Constructing a Sewage treatment plant and Main Pressure Lines in Khan Younis(through UNDP)(Emergency Grant Aid, before 2010-2012) Emergency Water Supply & Rehabilitation Program(through UNDP) (Emergency Grant Aid, before 2010-2012) Programme for Construction of Sewage System for Promoting Mutual Confidence (through UNDP)(GA(Peace-building), before 2008-2009)

Relevant cooperation by development partners

・ Germany: a. Financial assistance to Waste water treatment with KFW, b. Technical cooperation of GIZ in Training needs assessment, preparation of “National training policy in Water” (2010)

・ France AFD / NGO (agence francais de development): F/S for preparation of Training center(2011) ・ USAID: Emergency Water and Sanitation II (EWAS II) ・ Norway NORAD: Palestine Water Report (Mary. 2011) ・ Sweden SIDA: Experts ( dispatch 2011)

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