Situation in the OPT/World Bank emergency relief services – World Bank press release

World Bank to support emergency humanitarian and relief services in West Bank, Gaza strip.

WASHINGTON, February 28, 2002 — The World Bank approved a $20 million credit to support the provision of basic social services in the West Bank and Gaza. The need for this credit arises from the fiscal crisis brought on by an escalation in the Israeli-Palestinian conflict. Issued on standard International Development Association (IDA) terms with a 40-year maturity and 10-year grace period, the credit will finance an Emergency Services Support Project (ESSP) by providing funds for essential medical and school supplies, municipal solid waste management and municipal water and electricity services.

The ESSP is a $105 million initiative developed by the Palestinian Authority. Other donors who have pledged funding for the program include the European Union, the United Kingdom, Italy, Sweden, Denmark, the Netherlands, Finland and Greece.

"The ESSP will help schools and health clinics to continue working in the midst of conflict," said Qaiser Khan, Senior Human Resources Economist in the World Bank's Middle East and North Africa Region. "It will also support municipal services that the Palestinian population is no longer able to pay for due to the sharp increase in poverty and unemployment since September 2000, which has, in turn, has placed great strain on municipal budgets."

The ESSP will enable the Palestinian Ministry of Finance to fund specific contracts for delivery of social services by ministries, municipalities and non-governmental organizations during the crisis.

Insofar as educational services are concerned, the ESSP will finance rent and other costs of running school facilities, as well as purchases of school equipment and technical training materials. In the health sector, the loan will enable the Ministry of Health to purchase medicines and medical supplies, and to contract NGOs and the private sector to deliver health care services. Basic municipal services such as solid waste disposal, maintenance of roads, electricity and water services will also be supported under ESSP financing.