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Source: UN Development Programme (UNDP)
31 October 1995

Programme of Assistance to the Palestinian People

Programme Framework 1996-1998

October 1995






Strategies and Initiatives for Future Programme Activities








Gender in Development

Support to Agricultural Development

Private Sector Development

Employment Generating Public Works Programme

Environmental and Social Sector Infrastructure





4.Conclusion 36
Annex 1

Annex 2

Annex 3
Ongoing UNDP/PAPP Projects in 1995

Summary Highlights of Ongoing UNDP/PAPP Projects

Initiatives for Future Programme Activities (Summary of Funding Needs)


The Programme of Assistance to the Palestinian People (PAPP) of the United Nations Development Programme (UNDP) is part of a larger system of UN activity in the Occupied Territories, operating under the auspices of the United Nations Special Co-ordinator in the Occupied Territories. In 1994, the United Nations Secretary-General appointed Mr. Terje Rod Larsen as the UN Special Co-ordinator to serve as the focal point for all United Nations economic, social and other assistance in the occupied territories. The Special Co-ordinator provides overall guidance to United Nations programmes and agencies operating or intending to operate in the West Bank and Gaza Strip and facilitates co-ordination within the UN family, in working towards an integrated and unified approach to the development effort launched by the Conference to Support Middle East Peace on 1 October 1993 in Washington DC. The Special Co-ordinator serves as the focal point in dealing with the donor community.

The Special Co-ordinator represents the United Nations in the Ad Hoc Liaison Committee (AHLC), established in October 1993 to pursue the development effort funded from pledges made at the funding Conference. In November 1994, the AHLC, based on the suggestion of the UN Special Co-ordinator, created the Local Aid Coordination Committee (LACC), for which the Special Co-ordinator is co-chair, with Norway and the World Bank, and joint-secretariat with the World Bank.

Based on a decision of the LACC in December 1994, Sectoral Working Groups (SWGs) were established in January 1995 to promote and co-ordinate activities of the donors in various sectors according to Palestinian Authority priorities. The membership of each of the twelve SWGs includes at least one representative of the Palestinian Authority (who serves as the Gavel Holder) and representatives of those donors involved in the sector (one of whom serves as the Shepherd). The United Nations and/or the World Bank are secretariat to each of the Sectoral Working Groups.

At the first United Nations inter-agency meeting held in Gaza city in December 1994, hosted by the United Nations Special Co-ordinator, six UN Priority Sector Groups (PSGs) were established. Priority Sector Groups were established for six sectors of United Nations involvement - Education, Employment Generation, Health, Infrastructure and Housing, Institution-Building and Private Sector Development - in order to improve coordination and assist the Special Co-ordinator in developing an integrated and targeted approach to social and economic development in the West Bank and Gaza Strip.

At the request of the Special Co-ordinator, preparations were initiated in May 1995 by the PSGs toward the development of six Strategy Papers outlining the past, present and future United Nations involvement in each sector, plus the background and development priorities of each sector. The content of the Strategy Papers was discussed at the second United Nations inter-agency meeting held in Gaza city in June 1995, attended by 24 United Nations organizations. The six papers were finalized by the Special Co-ordinator and issued under the title "Putting Peace to Work - United Nations Strategy and Projects".

The strategies and programme initiatives outlined in the present UNDP Programme Framework reflect and are consistent with United Nations priorities as developed in these Strategy Papers. Those projects that were annexed to the UN Strategy Papers which fit within UNDP's mandate and capacity in the West Bank and Gaza Strip, have been incorporated into the UNDP Programme Framework. The UNDP Programme Framework is thus an integral component of the UN Strategy Papers.


The purpose of this Programme Framework is to present areas of priority attention that will comprise UNDP's programme of support in the West Bank and Gaza Strip over the upcoming three-year period, from 1996-1998. The programme initiatives elaborated within these priority areas of attention are aimed at supporting the peace process by making tangible improvements in the quality of life of the Palestinian people, and promoting longer-term human development strategies, with special emphasis on poverty eradication. The initiatives have been formulated through an extensive consultation process with the Palestinian Authority (PA) to ensure that they fully support overall development objectives and priorities. It is anticipated that many of these activities will also be of interest to bilateral and other donors, and that cooperation and joint partnerships can thus be expanded and strengthened.

UNDP's Programme of Assistance to the Palestinian People (PAPP) has been operational in the West Bank and Gaza Strip since 1980, having been mandated by the UNDP Governing Council to undertake both technical and capital assistance projects. Because until very recently the UN participating and executing agencies were not allowed, as such, into the West Bank and Gaza Strip, all UNDP/PAPP projects have had to be implemented by the UN Office for Project Services (UN/OPS), under the direct execution modality. Due to the situation in the West Bank and Gaza Strip, OPS delegated to the head of the PAPP office in Jerusalem all implementation functions. As a result, the PAPP office combines the whole spectrum of functions of a regular UNDP country office as well as those of an implementing agency. PAPP has now over 100 staff members and consists of three main divisions: Programme, Engineering, and Administration. While no Indicative Planning Figure (IPF) resources could be allocated so far, the Governing Council of UNDP approved increasing SPR (Special Programme Resource) allocations for the UNDP/PAPP Programme for every programming cycle since PAPP's inception in 1980. For the 1992-1996 cycle, $14.8 million of UNDP's SPR resources were fully programmed. UNDP's SPR resources have been generously complemented by bilateral contributions from Japan, Italy, Norway, USA, the Netherlands, Sweden, Finland, Canada and other governments which, in total, have contributed over $80 million to UNDP-implemented activities for the 1992-1996 programming period. A list of ongoing UNDP projects, together with the contributions made by donors for each project is attached as Annex 1. A sectoral breakdown of the ongoing projects is attached as Annex 2. It should be noted that 75% of PAPP's administrative budget is funded through overhead resources generated by the implementation of the programme.

As a result of the lack, until May 1994, of a central Palestinian Authority, PAPP's activities concentrated mostly on supporting the Palestinian civil society (NGOs, grass roots organizations, Chambers of Commerce, and cooperatives). Assistance was also provided to municipalities, mainly through capital investments in social infrastructure such as the construction of water supply schemes, sewerage systems, schools and the upgrading of hospitals. Economic infrastructure projects were also financed and implemented, such as an industrial zone and wholesale market, a citrus processing plant in Gaza, modern irrigation schemes, etc. These projects were complemented by technical assistance to strengthen management capacities. The absence, in general, of the UN Specialized Agencies, coupled with the willingness to rely on local contractors and consultants, determined the present pattern of project implementation.

UNDP's strategies and programme initiatives for the future outlined in this Programme Framework differ, however, in some important respects from the bulk of PAPP's previous activities. The rapidly changing situation in the West Bank and Gaza Strip, and the new circumstances and opportunities brought about by the peace process, have a number of implications for UNDP's activities:

1. UNDP's primary counterpart for its development activities in the West Bank and Gaza Strip is now the Palestinian Authority and its component ministries and central-level institutions (such as the Palestinian Central Bureau of Statistics and the Palestinian Water Authority).

2. The primary aim of UNDP's assistance is to increase the technical and implementation capacities of Palestinian Ministries, municipality and village councils, and Civil Society Organizations, not to substitute for them. Detailed implementation arrangements will be tailored to specific circumstances, recognizing that some Palestinian institutions have matured faster than others, and thus have more immediate implementation capacity. The various implementation functions of programme/project delivery will be shared between UNDP and its counterpart Palestinian institutions accordingly. Due consideration will be given to the need to implement projects rapidly in order to achieve the tangible results that are vital for the success of the peace process. To increase counterpart institutional and human resource capacities, UNDP will focus on providing various sources of technical assistance, including strategic policy advisory services and training, in order to transfer technical and management skills and know-how on a permanent basis, so that the benefits of assistance can be sustained locally. UNDP expects its implementation arrangements in the West Bank and Gaza Strip to gradually evolve towards the full-scale UNDP "National Execution" modality, as Palestinian institutions build-up their implementation and technical capacities.

3. UNDP will continue to facilitate the lead coordination role of the UN Special Co-ordinator in the Occupied Territories. UNDP currently serves as secretariat to six of the twelve Sectoral Working Groups, as delegated by the UN Special Co-ordinator. As such, UNDP's consultations with key institutions, such as the PA ministries, the World Bank, the European Union, and other UN Agencies will continue.

4. While continuing to respond rapidly to immediate and emergency concerns, as UNDP has done in the past with the Employment-Generating Public Works Programme (in response to the severe unemployment problem in Gaza) and with the Start-up Support projects (in response to the urgent needs of the PA ministries), UNDP will also undertake longer-term, more developmental types of initiatives which are essential to lay the foundations for long-term economic and social development in the area.

5. In parallel with the expansion of activities to include more technical assistance and advisory support, UNDP will endeavour to draw upon the array of technical expertise within the specialized UN Agencies. In areas where sufficient Palestinian "implementation" capacity exists, UN Agencies may be called upon to provide specific technical inputs to support project activities. In other cases, where Palestinian implementation capacity may be lacking, UN Agencies may be requested by the Palestinian Authority to take upon a greater extent of project implementation functions.

6. In an effort to maximize available resources, UNDP will utilize to the greatest extent possible cost-effective and innovative "implementation modalities" for the provision of technical assistance. Palestinian expertise will continue to be the back-bone of UNDP's technical assistance programme, drawing upon the large pool of highly qualified and talented Palestinian professionals who can be effectively mobilized, as project managers, advisers, and technical experts. At the request of the Palestinian Authority, UNDP also intends to expand its unique TOKTEN Programme (Transfer of Knowledge Through Expatriate Nationals) which draws specifically upon expatriate Palestinian expertise to provide high-level advisory services and training to Palestinian public and private sector institutions. Other implementation modalities to be utilized include the United Nations Volunteer Programme (UNV) and Technical Cooperation Among Developing Countries (TCDC).

While these areas represent the newer elements of UNDP's future programme, the initiatives for the future also rely heavily on PAPP's comparative advantages that have been built up over time and through its long experience of operations in the West Bank and Gaza Strip. These areas of comparative advantage for UNDP include the following:

1. The Palestinian authorities are beginning the arduous task of formulating a sound development strategy covering a longer period than the current emergency situation. UNDP aims to support broad-based policy dialogue and consultation in order to help develop a common strategy for development that is "locally-sustainable" and "human-based". Sustainable Human Development, an approach to development advocated by UNDP, is a "people-centered" approach aimed at improving the lives and living conditions of the poorest people. Sustainable Human Development recognizes environmentally sustainable, and gender-equitable economic growth as a means for improving the well-being of human beings, and not as an end in itself. It focuses on 1) creating an enabling environment for poverty reduction; 2) environmental regeneration; 3) productive employment and sustainable livelihoods; and 4) social integration and empowerment of women. Sustainable Human Development recognizes that the formulation of development priorities should be an open and participatory process of dialogue amongst all segments of the society including the new Palestinian administration, civil society organizations, and communities. The Sustainable Human Development approach is used as a guiding principle for all of UNDP's programme initiatives, both globally, and in the Palestinian context.

2. The empowerment of women through full participation and capacity development and the creation of an enabling environment for the advancement of women are cornerstones of the Sustainable Human Development approach. Initiatives aimed at both empowering and advancing Palestinian women are included in the present Programme Framework, both within the context of other thematic programme areas, and through the Gender in Development Programme.

3. Throughout the evolving situation in the West Bank and Gaza Strip, because of its neutrality and on-the-ground presence, UNDP has been able to play a key intermediary role in channeling external assistance to the Palestinian people. UNDP will continue to play this intermediary role, especially for donors which can not, at this stage, commit themselves to establishing locally the logistical and technical base necessary to rapidly formulate and implement programmes.

4. Through its continuous presence in the West Bank and Gaza since 1980, and by directly implementing capital and technical assistance projects using UN/OPS procedures, PAPP has built up a range of "in-house" technical implementation capacities. These "in-house" capacities include: the UNDP Engineering Unit, which currently employs 20 Palestinian engineers who have acquired a unique knowledge of the infrastructural needs of local communities, through close working relationships with municipal authorities and local Palestinian contractors. While actual construction works are carried out by local Palestinian contractors, the engineering division studies new construction proposals, undertakes the design or sub-contracting, prepares tender documents and cost estimates, evaluates bids, drafts contracts, supervises implementation of works, verifies requests for payment and prepares progress reports. UNDP's Programme Unit identifies and formulates projects and is responsible for programme financial management matters. An Administrative and Finance Unit which, through its Procurement Section, undertakes local and international bidding and purchases of equipment, vehicles, and goods. The unit also facilitates logistics and operations of several UN agencies, and missions. These in-house capacities, which rely on locally available resources and locally available expertise, enable UNDP to implement projects rapidly and at greatly reduced cost. These "in-house" implementation capacities will continue to be drawn upon to support all of UNDP's future activities.

5. Through its support projects, UNDP has been able to transfer its "in-house" implementation capacities and know-how to counterpart Palestinian institutions. In particular, UNDP has played a key role in transferring project management, and monitoring procedures to Palestinian institutions, using international standards for contracting, procurement, and financial reporting. Such a transfer of skills has led to increased accountability and transparency and to the enhancement of capacity-building in Palestinian institutions. The success of the PECDAR implemented Employment-Generating Public Works Programme is a prime example of how this knowledge-transfer and capacity-building can lead to a visible increase in "aid-absorptive" capacity, resulting in a substantial increase in donor funding.

The present Programme Framework (1996-1998) is organized within six thematic areas.
- Governance
- Gender in Development
- Support to Agricultural Development
- Private Sector Development
- Employment-Generating Public Works Programme
- Environmental and Social Sector Infrastructure

Within each of these thematic programme areas, overall support strategies and more detailed programme initiatives are presented which will guide PAPP's activities over the next three years. While it is assumed that the reader is already somewhat familiar with the situation in the West Bank and Gaza Strip, the key issues related to each of these thematic areas are nonetheless presented.

The strategies and programme initiatives presented within each of the thematic areas reflect a joint assessment by UNDP and the Palestinian Authority of the top priorities in each sector, taking into account those areas where UNDP's comparative advantages can be most usefully applied. PAPP is, therefore, seeking financial and cost-sharing support from donors to undertake these projects. UNDP's core resources for the next programming period will be utilized to initiate some of the identified projects, in line with further consultations with Palestinian partners and donors.




I.Governance 7
II.Gender in Development14
III.Support to Agricultural Development16
IV.Private Sector Development20
V.Employment-Generating Public Works Programme26
VI.Environmental and Social Sector Infrastructure31


The Palestinian people face for the first time in their history the challenge of constituting their own governance body and public sector apparatus. An efficient public service is one of the primary tools for the Palestinian Authority (PA) to succeed in its long-term capacity-building process and to meet the expectations of the Palestinian people raised by the peace process. In view of the transfer of additional areas of authority to the PA, the administrative and governing challenges facing the PA are enormous. The PA has developed substantively and substantially since its establishment in May 1994. There are functioning ministries on the ground that are making progress in areas such as policy-setting and the delivery of public services. Yet, the PA is still in its initial stages and needs and deserves strong support to meet the broad range of challenges that lie ahead of it.

Throughout 1994-1995, as an initial response to these challenges facing the PA, UNDP has served as the primary implementation mechanism for donor-funded start-up support to PA Ministries and institutions. Through a series of related emergency-support projects, funded entirely by the Government of Japan, UNDP has channeled more than $13 million of procurement assistance and start-up funding to fourteen PA Ministries, the Palestinian Economic Council for Development and Reconstruction (PECDAR), the Palestinian Computer Centre, the Civil Defense Department, Palestinian TV, and the Palestinian Environmental Protection Agency. UNDP has also provided similar start-up support to the Palestinian Central Bureau of Statistics, with funding from the Government of Norway, as well as assisting in establishing computerized information networks between a number of ministries.

UNDP is now following up this initial "emergency" start-up support to the PA by developing a longer-term and more comprehensive programme to support central and local governance capacities. This support programme is based on a two-part strategy for UNDP interventions:

1. At the "upstream" or policy-setting level, through a Public Administration and Policy-Setting Support Programme, and Information and Statistics for Policy-Setting.

2. At the "downstream" or implementation level, through direct support to Local Governing Structures.

The following initiatives are planned by UNDP in the Governance area:

Initiative 1: Total Estimated Cost: $9,700,000
Public Administration Development and Policy-Setting Support Programme
The aim of the Public Administration Development and Policy-Setting Support Programme is to improve the management, policy-setting, and administrative capacities of the Palestinian Public Administration, across all functional and sectoral ministries. The sub-initiatives that follow should be seen as an integrated programme aimed at improving the governance capacities of the Palestinian Authority. UNDP will work in close association with key PA Ministries and institutions concerned, and the several other donors and agencies involved in various aspects of Public Administration and Policy Development, in a coordinated fashion. UNDP has already allocated $250,000 of its core resources towards initiating a support strategy, and is committed to serving in a primary advisory role to the PA in this area. A key role of UNDP will be to help the PA mobilize the required technical assistance and financing for Public Administration Development activities from bilateral and multilateral donors, and UN Agencies.

Sub-Initiative 1a: Estimated Cost: $1,500,000
Public Administration Training Institute
UNDP intends to assist the PA in organizing and implementing public administration training programmes mainly through the establishment of a Public Administration Training Institute, which will serve as a key component towards launching an integrated approach in improving governance capacities. Such an institute is necessary to develop the capacity to assess, at a central level and on a permanent and ongoing basis, the overall needs for training of civil servants, and to match these needs with training opportunities. Training priorities include:

- Inter-ministerial working sessions for senior level PA officials (Director Generals) to promote knowledge about the actual situation of the West Bank and Gaza Strip, and to foster cross-sectoral dialogue and a "team" approach to problem-solving within the PA,
- public sector management training,
- uniform training in administrative and financial procedures, such as personnel management and budgeting.

UNDP's support will be closely coordinated with the ongoing programmes of the Federal Republic of Germany, the United Kingdom, USAID/Amid-East, Norway and other donors and agencies in Public Administration training.

Sub-Initiative 1b: Estimated Cost: $2,000,000
Technical and Advisory Support in Public Administration Development
UNDP intends to provide central level advisory support to the PA institutions responsible for Public Administration Development, particularly the Ministry of Planning and International Cooperation, in the following areas:

- Strengthening the PA's Management Capacity in Public Administration Development. Support will be aimed at assisting the PA to steer and guide from a central level all aspects of the Public Administration Development Programme, on an ongoing and permanent basis. UNDP will assist the PA by providing start-up support to the Department of Institution-Building and Human Resources Development of the Ministry of Planning and International Cooperation; providing Palestinian and international consultants and advisers specialized in issues of public sector management and governance, including legislative issues; and by organizing seminars, conferences and workshops in areas of civil service management.

- Clarification of Ministries Mandates. To improve public sector efficiency and accountability, UNDP will assist the PA to progressively clarify and document the roles, functions, and responsibilities of each ministry, and to better define how ministries should relate to each other, particularly on inter-ministerial or cross-sectoral issues.

- Technical Level Support. UNDP aims to assist the PA in undertaking studies, analyses and technical work in public administration development issues, such as the development of mechanisms to support improvements in management practices; and the development and dissemination of knowledge on sound administrative processes, such as contracting for goods and services, the preparation of operating budgets, and financial management and auditing. UNDP will also support other public and private research institutes and Palestinian academic institutions involved in research and training on public administration issues.

Technical assistance and advisory support for these activities will be provided by UNDP's Management Development and Governance Division (MDGD), and the Public Sector Management Division of the UN Department for Development Support and Management Services (DDSMS), both of which have extensive experience and knowledge in helping countries throughout the world in formulating and implementing Public Administration Development Programmes.

Sub-Initiative 1c: Estimated Cost: $1,800,000
Policy Advisory Support
At this critical juncture in the development of PA institutions, an important aspect in improving the Palestinian Public Administration is in the policy-setting area. In this context, UNDP seeks to provide high-level advisory support to PA ministries, such as:

- Ministry of Planning and International Cooperation. UNDP intends to provide the Ministry with a full-time resident adviser on Organizational Management ($100,000); and advisory support to the newly established Strategic Planning Department to support the undertaking of a 20-year Strategic Plan and a 5-year Detailed Plan ($200,000).

- Ministry of Education. Technical assistance will be provided to help develop capacity within the Ministry to promote a gender-sensitive educational system with emphasis on the equal access of girls to educational opportunities ($175,000).

- Ministry of Social Affairs. Technical assistance and start-up support will be provided to strengthen the unit already established within the Ministry responsible for ensuring effective coordination with women's organizations and provision of services to beneficiaries ($250,000).

- Ministry of Finance. UNDP intends to provide the Ministry with a full-time resident adviser on Taxation Administration and Collection ($150,000).

- Palestinian Monetary Authority (PMA). UNDP intends to provide the PMA with a resident Senior Advisor on Banking Supervision and Regulation ($150,000).

- Ministry of Culture and Arts. UNDP could provide the Ministry of Culture and Arts with a full-time resident expert in cultural preservation, historical site restoration, and handicraft industry development ($150,000).

- Ministry of Health. Technical assistance will be provided to help develop capacity within the Ministry to develop curricula on women's health and training health care providers including counselors ($175,000).

- Ministry of Telecommunication and Post. Through the International Telecommunications Union (ITU), UNDP intends to provide a full-time resident adviser who would help the Ministry define an overall strategy for development of the telecommunications sector and evaluate private sector investment proposals within the telecommunications industry ($150,000).

- Palestinian Civil Aviation Authority. Through a preparatory assistance project to be implemented by the International Civil Aviation Organization (ICAO), UNDP will support the launching of civil aviation activities, including the formulation of a support programme for a Civil Aviation Masterplan and for civil aviation training ($300,000).

This initial list is by no way restrictive, since this type of high-level policy advisory services are essential at this particular juncture in the history of the Palestinian people. Other proposed interventions of this nature are also identified in later thematic areas of the Programme Framework, such as in "Private Sector Development".

Sub-Initiative 1d: Estimated Cost: $300,000
Promoting Gender-Sensitive Legislation
For the first time in Palestinian history, indigenous laws and regulations are being drafted to amend, or replace, the laws previously imposed on the Palestinian people. Yet, little attention has been given to ensure the gender balance of these new laws. Alternative gender-sensitive legislation, based on the United Nations Convention for the Elimination of All Forms of Discrimination Against Women, in the political, criminal, civil, labour and social security spheres, will be drafted to complement and influence the legal system. Consensus-building activities within the relevant ministries, primarily the Ministries of Justice and Labour, will also be undertaken.

Sub-Initiative 1e: Estimated Cost: $2,000,000
Transfer of Knowledge Through Expatriate Nationals (TOKTEN) - Phase 2
As part of its Public Administration Development Programme, UNDP intends to continue the TOKTEN Programme throughout the next two years. This ongoing programme, which is implemented in coordination with the beneficiary Palestinian institutions, sponsors the return of Palestinian expatriates living abroad to provide advisory services, consultancy studies, and training to PA Ministries and private sector institutions. The nature of the individual TOKTEN missions to be undertaken will be determined according to the needs and demands of the PA Ministries. Funds are requested to sponsor additional TOKTEN consultants and their policy advisory and training activities. Total funding already committed by UNDP, through a contribution by the Government of Norway, amounts to $300,000 and is now nearly fully committed and spent.

Sub-Initiative 1f: Estimated Cost: $350,000
Preparation of a Human Development Profile of the West Bank and Gaza Strip (Phase 2)
UNDP's primary vehicle for promoting the Sustainable Human Development approach globally is the Human Development Report, which introduced the concept of human development as enlarging people's choices. UNDP is undertaking the important work of formulating a Human Development Profile of the West Bank and Gaza Strip, which will constitute an entry point for the elaboration of Sustainable Human Development strategies. More importantly, the process of preparing the Human Development Profile constitutes an essential element of the consensus-building dialogue aimed at developing a common vision. Activities to be conducted include policy studies, awareness campaigns, training seminars and workshops to stimulate understanding on crucial issues of relevance to Sustainable Human Development, including measuring the "unremunerated" economic contribution of women; ensuring gender-balance in distribution and access to resources; and analyzing the environmental and social sustainability of economic policies. UNDP has already allocated $90,000 from its core funding in order to launch this process through Palestinian institutions. The first Human Development Profile should be ready by mid-1996.

Sub-Initiative 1g: Estimated Cost: $1,750,000
Information and Statistics for Policy-Setting
This UNDP programme aims at developing capacity at the Palestinian Central Bureau of Statistics (PCBS) to build up an accurate base of economic and social statistics upon which policy-makers can make informed decisions. Support will be provided on three levels:

- Training of PCBS central and field staff workers in statistical procedures to enable them to collect, compile, and publish economic and social statistics, through the establishment of a Statistical Training Centre. The training centre will also be supported to develop the capacity and capability of the statistical units of line ministries and departments.

- Technical advisory support and training will be provided to central and field staff workers at PCBS and line ministries to collect and analyze gender disaggregated data, which is a pre-requisite to the formulation of gender policies ($250,000).

- UNDP will provide direct support to PCBS to enable it to undertake the surveys that are prioritized in the five-year master plan to meet the PA statistical needs. These prioritized surveys include the Population and Housing Census, for which PCBS is already receiving key technical support from the United Nations Population Fund (UNFPA) and the Department of Social Information and Policy Analysis (DESIPA) within the UN Statistical Office. The Labour-Force Surveys, which will provide valuable employment and unemployment information, can also be further supported with the technical expertise of the ILO.

Thus far, UNDP has contributed $660,000 towards support to PCBS, through a contribution from the Government of Norway. An additional amount of $1,750,000 is needed to fund the additional activities listed above.

Initiative 2: Total Estimated Cost: $6,800,000
Support to Local Governing Structures
The second element of UNDP's support to the Public Sector is at the local level to strengthen local governing structures. UNDP aims to support municipality and villages councils by: a) strengthening their management and planning capacities, and b) facilitating the relationship between the PA at the central level and the municipality and village councils, particularly by clarifying and supporting the coordination and advisory role of the Ministry of Local Government. Special emphasis will be placed on assisting those municipalities and villages in autonomous areas to pursue their role of self-rule.

Sub-Initiative 2a: Estimated Cost: $4,000,000
Local Rural Development Programme: Planning at the Local Level (Phase 2)
Funding is sought to continue and expand the activities of the UNDP/UNCDF (UN Capital Development Fund) Local Rural Development Programme (LRDP). LRDP combines a linkage of technical and capital assistance to village councils in rural infrastructure investments with participatory mechanisms for planning and implementing the investment schemes. Based on the favourable experience achieved thus far, the LRDP team of Palestinian professionals will be mostly decentralized to the field level and is ready to expand beyond the current target villages in Jenin District. Total funding already committed by UNDP and UNCDF in the Jenin District amounts to $4.3 million ($1.3 million from UNDP and $3.0 million from UNCDF). The additional funding requested will allow this participatory local development programme to be replicated in two to three other districts where extreme poverty exists in the West Bank (those, in particular, which are going to be granted an "autonomous" status) and Gaza, and to support further rural capital investment activities.

Sub-Initiative 2b: Estimated Cost (total): $1,000,000
Municipality and Village Council Support Programme
UNDP intends to strengthen the management capacities of municipality and village councils in the delivery of services to its constituents by:

a) improving technical, financial, administrative and management skills and capacities through the provision of training and advisory support in strategic and financial planning, project development, and basic physical planning. This training will be closely linked to the ongoing assistance provided by UNDP directly to the water and utility departments of various municipalities, as described further in the sections on Environmental and Social Sector Infrastructure and the Employment-Generating Public Works Programme.

b) facilitating an exchange of experience and expertise between large and relatively advanced Palestinian municipalities (and municipalities abroad) and smaller village and local councils.

Technical assistance and advisory support to undertake these activities would be provided by UNDP's Management Development and Governance Division (MDGD) on governance and administrative issues; and by the UN Centre for Human Settlements (UNCHS/Habitat) on issues related to urban planning and management and human settlement policies.

Sub-Initiative 2c: Estimated Cost: $800,000
Policy Formulation at the Local Level -- Models of Public Sector
UNDP aims to provide assistance to Palestinian institutions in defining the appropriate degree of authority at different levels of the public sector for various administrative functions and tasks, through the following activities:

- Sponsorship of a series of workshops on local governance issues, including the legal, political, financial and administrative aspects of local government management; alternative approaches to public sector organization, such as federalism, regionalism, and municipal autonomy; and standardization of planning methods and mechanisms.

- Assist the Ministry of Local Government to review rules and regulations for a policy on the role of local authorities.

- Assist in designing tax allocation systems among central and local levels.

Sub-Initiative 2d: Estimated Cost: $1,000,000
Community Development Programme in the Gaza Strip
This project is designed to provide technical and financial support to a number of small-scale community-outreach activities organized and implemented through local and community-based organizations, particularly those aimed at the youth of Gaza which form the bulk of the population. The Community Development Programme will be implemented by the United Nations Volunteers (UNV) Programme, combining UNV community-development specialists from the region, and initiating an innovative National Volunteer Programme for Palestinians. The Programme will be formulated in close cooperation with the Ministry of Youth and Sports and UNICEF. Other PA Ministries, such as the Ministry of Local Government, the Ministry of Culture and Arts, and the Ministry of Social Affairs will also be associated.


At this time of new governance and hopes for economic advancement of the area, it is expected that the pace of change will be rapid. Within this fast-moving scenario, it is strategically important to ensure that women and men share equitably the benefits of all development activities.

Community and patriarchal pressure is a major factor that systematically gives women fewer opportunities and less access to education, health care, credit, jobs and power. The worsening of the economic situation can only have a regressive impact on the situation of Palestinian women, since men are the primary income-earners.

An important challenge to the Palestinian society is to forge linkages between past and present traditions and visions for the future, and to seek to build a society based on equal and full partnership between women and men. At a time when the international community is focusing its attention on the United Nations Fourth World Conference on Women (FWCW) and on its message: ACTION FOR EQUALITY, DEVELOPMENT AND PEACE, Palestinian women are assessing their achievements to elaborate a vision for the year 2000 and beyond.

Through its gender approach to sustainable human development, UNDP has a key role to play in assisting the Palestinian society in mainstreaming gender issues into all development policies and legislation and in developing participatory community-based approaches to development.

UNDP has been implementing programmes to support women's initiatives through an extensive network of Palestinian institutions and utilizing specialized international expertise where appropriate. Taking into consideration the final Platform for Action prepared for the FWCW and the strategy document prepared for the Arab Region, a framework for action has been formulated by UNDP, in coordination with a number of Palestinian partners. This framework is based on the following strategy:

1) Upstream interventions aimed at building and enlarging constituencies in advocacy, through a series of policy-level initiatives supporting governmental bodies;

2) Downstream interventions to tackle the constraints which hinder women from achieving a life of dignity and security, through initiatives of support focused on poverty eradication.

The focus of UNDP's activities is to elicit discussions and dialogue, as well as to raise awareness among all parties involved, through:

- substantive facilitation work;
- active networking locally, regionally and internationally;
- maximum use of Palestinian expertise, locally and from the diaspora;
- selectively chosen international expertise.

In the spirit of UNDP's goal of "mainstreaming gender", the initiatives aimed at furthering the first element of the support strategy (upstream policy-level initiatives) have been included within their respective thematic programme areas. The initiatives outlined in other chapters of the Programme Framework which are oriented towards mainstreaming gender issues include: policy-level interventions at the Ministries of Education, Health, and Social Affairs, Promoting Gender-Sensitive Legislation, and the collection and analysis of Gender-Disaggregated Data (all in the Governance chapter); policy-level interventions at the Ministry of Agriculture (in Support to Agricultural Development); and increasing Women's Economic and Employment Opportunities (in Private Sector Development). Together these initiatives amount to $2,050,000. The initiatives identified immediately below aim to complement these "upstream" policy-level interventions, through direct support to women and community-based activities aimed at poverty eradication. This integrated approach, whereby both policy and community-based interventions are combined to reinforce each other, aim to attain the common goals of advocacy and improving the quality of life for Palestinian women.

Initiative 1: Estimated Cost: $800,000
Community-Based Training and Awareness
Palestinian rural women have been disadvantaged in receiving access to information. UNDP, through the expansion of on-going outreach projects implemented either by UNDP or civil society organizations, will facilitate the establishment of a network of women's fora to promote information and knowledge-sharing. Issues to be addressed through these community-outreach fora include:

- Enhancement of school enrollment for girls and access to social services including physical and mental health care.

- Counselling and education on HIV/AIDS awareness and prevention.

- Advancement of the legal status of women.

- Skill training in specialized areas to enable Palestinian women to become better leaders, managers, and income-generators.

These community-outreach fora, which will be implemented in close cooperation with UNICEF, UNIFEM, ILO, UNRWA, UNESCO, and any other relevant UN agencies, are intended to raise awareness of women and stimulate community discussions on key issues, so as to expand women's choices in general.

Initiative 2: Estimated Cost: $450,000
Improving the Image of Women in the Media
This project aims to promote the production of gender-sensitive media material through training of media personnel in the Palestinian Broadcasting body, concerned ministries and Civil Society Organizations (CSOs). Activities will also be conducted to increase awareness of the negative representation of women in various forms of media, and encouragement of advocacy activities.


Over the past ten years, the agricultural sector has proven to be the backbone of the Palestinian society and economy, as 60% of the population, particularly women, rely on agriculture for their livelihoods, while agricultural products account for about 25% of Palestinian exports. It is clear that agriculture will continue to play an instrumental role in the future as well. The agricultural sector, however, is subject to a series of barriers and restrictions, such as, very limited water resources, and distorted internal and external marketing channels. In addition, there has been a clear absence of public sector support services to farmers, although numerous NGOs and agricultural cooperatives have been partially filling the void.

The recently established Ministry of Agriculture has not been able as yet to start defining overall goals, policies and strategies for agricultural development, while the sector, as a whole, suffers from lack of donor support. The Ministry of Agriculture, for example, has been one of the least supported by donors in terms of start-up assistance.

UNDP intends to focus its future interventions in agriculture by combining, again, "upstream" interventions aimed at providing start-up cost and technical advice to the newly established Ministry of Agriculture with "downstream" interventions, specifically direct support to farmers, aiming at achieving quick and tangible impacts for agricultural producers.

One of the key elements of success for this sector in the short and medium term is the extent to which informed dialogue and consultation can be rapidly established between the newly established public institutions, agricultural producers, NGOs, and private sector institutions, and the extent to which a unified effort to strengthen and develop the agriculture sector can be achieved. Towards this end, UNDP's upstream interventions will target the initial start-up cost requirements of the Ministry of Agriculture and technical assistance for policy formulation and dialogue.

Technical assistance will assist the Ministry of Agriculture to define its policies and strategies so as to establish an enabling policy environment for agricultural development. A revival of traditional public sector services to the farmers, such as extension and demonstration services, laws and regulations and reliable marketing channels will also be supported through UNDP's interventions. Through this process, UNDP aims to develop capacities within the agricultural institutions, with a view to addressing the main concerns and problems of agricultural producers.

Both upstream and downstream interventions will be executed with a strong focus on marketing issues. UNDP's efforts in pesticide use, adaptive research and extension, fisheries, land renovation and other activities will thus include components to develop domestic and international marketing strategies.

In line with this agricultural support strategy, UNDP aims to undertake the following specific initiatives:

Initiative 1: Estimated Cost: $1,500,000
Start-Up Assistance to the Ministry of Agriculture
The Ministry of Agriculture will be physically equipped and furnished in order to start executing its mandated services. UNDP's Procurement Unit will supervise the procurement of the following goods on the basis of detailed specifications given by the Ministry and as per ministerial procurement procedures:

- office furniture and electronic equipment;
- computers and related items;
- cars and other transportation means.

Initiative 2: Estimated Cost: $900,000
Agricultural Planning, Policies and Strategies
With the technical support of FAO, and through modalities such as TOKTEN and United Nations Volunteers, UNDP will assist in:

- strengthening the institutional capacity of the Ministry of Agriculture;
- enabling the Ministry to define a systematic approach to support of the agricultural sector, including the formulation of agricultural plans and policies in marketing, trade, and credit;
- developing capacity within the Ministry of Agriculture to ensure that women's needs and their key role in agricultural production and marketing are fully incorporated in policy-setting and service-delivery to farmers ($200,000);
- preparing enabling strategies for: gradually transferring out of traditional crops and into high value-added and export-oriented agricultural products (such as flowers and high-value fruits); introducing modern techniques in agricultural production; rain-fed and irrigated agriculture; forestry; the veterinary and livestock sectors; environmental protection; land and water use; and the labor code;
- developing constructive linkages and divisions of responsibility between all of the stakeholders in the agriculture sector, including the Ministry of Agriculture, the farmers, the Agricultural Cooperative Union, and agricultural NGOs.

Supporting technical inputs may be provided by specialized regional agricultural research institutes (ie: ICARDA).

Initiative 3: Estimated Cost: $2,000,000
Agricultural Extension and Demonstration
The project will seek to establish a functional goal-oriented and demand-driven extension service, building up existing extension service channels and establishing new ones where needed. Adaptive research and on-farm demonstration activities will be undertaken. The project will encourage a strong interaction between the identification of appropriate technologies, demonstration and on-farm testing, extension work, the family circumstances of farmers, and marketing realities. The following components are included:

a) Identification of suitable farming technologies for four representative ecological zones for adoption by farmers.
b) On-farm testing and demonstration of:
1. improved genotypes of field crops, vegetables and fruit trees;
2. improved animal husbandry practices and activities undertaken primarily by women (poultry, bee-keeping, on-farm processing, post-harvest marketing);
3. improved management and conservation of soil and water resources.
c) Support to extension networks by addressing staffing needs (including the introduction of women as extension agents), training, extension master planning and organizational structures to disseminate new technologies.
UNDP and FAO will implement the above modules with the Ministry of Agriculture.

Initiative 4: Estimated Cost for Phase 1: $3,500,000
Marketing, Environment and Pesticides
The final step in the agricultural production process, that of marketing, will greatly benefit from a certification programme that is empowered to check produce against local and international standards of pesticide and chemical residues. This certification is a pre-condition for favorable long term export prospects of the sector. UNDP and the Ministry of Agriculture have prepared a programme which includes:

- Export Certification ($800,000) to establish a quality-control procedure for agricultural exports, to be implemented in close coordination with the private sector;
- Development of the Legislative and Regulatory Framework ($350,000) for pesticide imports; pesticide formulation, registration and usage; and marketing and safety requirements;
- Pesticide Quality and Residue Control ($1,800,000) through upgrading and expansion of existing laboratory facilities, and the establishment of inspection services;
- Information, Communication and Education ($450,000) to disseminate technologies and related information on pesticides; and
- Biological Pest Control ($100,000) through introduction of "sterile insect" technologies.

The programme, to be coordinated by the Ministry of Agriculture, will involve the private sector, other PA ministries and new structures which will be established to better monitor and control the use of pesticides. UNDP, FAO and other UN agencies will implement components of the programme.

Initiative 5: Estimated Cost: $400,000
Upgrading the Nuwei'meh Spring and Channels in Jericho
The Nuwei'meh Spring in the Jericho area produces an average of 400 m3 water per day exclusively for irrigation of agricultural lands. Agricultural production in the area is heavily dependent upon its continued operation, yet the channel and spring are currently in very precarious condition. At the request of the Ministry of Agriculture, UNDP would undertake the following works: the main water pipe will be shored up to alleviate the danger of its collapse; a pedestrian foot-bridge will be constructed to eliminate the need for people to walk on the main pipe to get across the valley; and supporting works will be constructed for the valley embankments. In addition, the Nuwei'meh Spring will be cleaned and protected by a surrounding fence, and two kilometers of the main water channel will be cleaned and their walls rehabilitated and upgraded to prevent water loss and leakage. The project will be implemented by UNDP, in cooperation with the residents of the Nuwei'meh Spring area, and will be fully complementary to the activities already being undertaken on the Nuwei'meh network by ANERA. Designs have already been prepared.

Initiative 6: Estimated Cost: $500,000
Project Development Fund for Improved Water-Use in Agriculture
The fund will finance technical feasibility studies to enable high priority projects in the area of improved water use in agriculture to be launched quickly. The projects will be submitted to potential donors for funding consideration. The following areas will be considered:

- improved irrigation techniques;
- enhanced use of spring water, in selected catchment areas of the West Bank;
- dry-land farming opportunities in marginal areas (Hebron);
- watershed management and water-harvesting techniques in West Bank valleys;
- construction of small earth dams.
FAO's Investment Centre is ideally suited to undertake studies of this type.

Initiative 7: Estimated Cost: $300,000
Pilot Introduction of Duckweed Based Waste-water Treatment
The project aims at establishing demonstration facilities utilizing "lemnaceane" (duck-weed) ponds in selected areas of the West Bank and Gaza Strip, in conjunction with sewage treatment facilities. Successful demonstrations in Bangladesh and Peru have shown that duck-weed waste-water treatment ponds remove, by bio-accumulation, as much as 99% of the nutrients and dissolved solids contained in waste-water. They also produce a valuable, protein-rich bio-mass as a byproduct that can be used as the sole feed input for fresh-water fisheries and as partial input for poultry feed. The production of proteins ranges from 8 to 18 tons per hectare per year compared to, for example, 1.2 tons per crop of soybeans. The pilot project will result in recommendations on whether the technology can successfully be applied in the West Bank and Gaza Strip. The TCDC (Technical Cooperation Among Developing Countries) modality could be utilized to implement this pilot project.

Initiative 8: Estimated Cost: $1,500,000
Land Improvement Programme
At present, only about 27% of the West Bank land is cultivated, 94% of which is through rain-fed agriculture. Particularly on the western slopes of the mountainous areas around Ramallah and Hebron, the potential for mobilization of additional land for agriculture is promising. This project would aim at developing new agricultural lands by the rehabilitation of abandoned lands; the utilization of suitable unused lands through water-harvesting techniques from run-offs or springs; and the improvement of degraded soils, through terracing, water-harvesting and village road construction. A revolving fund would allow farmers to contribute to the improvement of their own lands. The project will be implemented by UNDP and FAO, through the Ministry of Agriculture.


The private sector is, by far, the primary engine for growth in the Palestinian economy, accounting for up to 85% of GDP. However, the sector suffers from the vulnerability of the economy as a result of having one quarter of the labor force dependent on employment in Israel and abroad; dependence on one major trading partner (85% of trade exports is conducted with Israel); and a concentration of investments (85%) in construction, primarily housing, due to a still inhibitive investment environment.

With the proceeding of the peace process, regional markets have started opening up with increasing competition and challenges placed on the Palestinian economy. In this context, the private sector is seen by the PA, donor countries and agencies, as the main engine for economic growth, employment generation and technological progress. The successful activation of the private sector requires the PA to: formulate policies aimed at encouraging a re-orientation from a situation of dependency on imports to "export-orientation" in high value-added areas; to expand the industrial base which currently accounts for only 8% of Gross Domestic Product; and to establish an enabling environment that can attract necessary local and foreign investment. Consequently, capacity-development of public and semi-public institutions, in planning, policy-setting, decision making and implementation, is one of the priority areas for development assistance in the West Bank and Gaza Strip.

The World Bank has recently formulated a strategy for the development of the private sector, which indeed gives primary importance to institution- and capacity-development. Other elements of the World Bank strategy include infrastructure development (mainly the establishment of border, regional and municipal industrial zones) combined with private sector management of infrastructure projects; and development of financial services. UNDP's future initiatives in support of the private sector are formulated to complement the strategy adopted by the World Bank to create a suitable environment for private sector growth.

UNDP will offer its support and assistance to develop the Palestinian private sector through both "up-stream" interventions, addressing the start-up costs, institutional and human resource capacity-development needs of public and semi-public institutions, and "down-stream" investment interventions to strengthen business support services and support to small business development. UNDP will utilize the technical expertise of specialized UN agencies, many of which have particular expertise in industry, tourism, trade, investment promotion, and other components of the private sector, in the formulation and implementation of technical assistance projects, as well as UNDP's Division for Science, Technology and the Private Sector.

Upstream interventions will focus on providing policy advisory services and capacity-developing support to PA Ministries, such as the Ministry of Economy, Trade and Industry, and the Ministry of Tourism and Antiquities. UNDP will also support the establishment of a Small Business Council to formulate and oversee an overall strategy for promotion of the small business sector.

The implementation of downstream initiatives will include supporting the enhancement of women's economic and employment opportunities; undertaking strategic studies to trigger follow-up investment from the private sector in industrial sectors; and strengthening small-scale and micro-enterprises, which have the highest potential to strengthen and widen the economic base, to create employment opportunities, and to more fully absorb women and excluded and vulnerable groups into mainstream economic activities.

The following specific initiatives in support of Private Sector Development are proposed by UNDP:

Initiative 1: Total Estimated Cost: $2,500,000
Start-up Support and Policy Advisory Services
Utilizing the diverse technical expertise within the UN System, UNDP aims to provide key organizational and technical advisory support to the public and semi-public institutions involved in promoting private sector growth. Such policy advisory services and support would include the following sub-initiatives:

Sub-Initiative 1a: Estimated Cost: $950,000
Support to the Ministry of Economy, Trade and Industry
- Support in the formulation of industrial policies and regulations, utilizing the technical expertise of the United Nations Industrial Development Organization (UNIDO).
- Support to Palestinian export promotion centres in the formulation of export-oriented trade policies utilizing the technical expertise of the United Nations Conference on Trade and Development (UNCTAD), and the International Trade Centre (ITC).
- Basic start-up funding and advisory support to the Ministry to establish a Department of Standards and Quality Control, including the equipping of a testing laboratory, as well as advisory services to establish this regulatory institute. The Department would be responsible for administering the system for standards and quality control in the industrial sector. Technical assistance would be provided through UNIDO.

Sub-Initiative 1b: Estimated Cost: $1,250,000
Support to the Ministry of Tourism and Antiquities
Technical assistance will be provided by the World Tourism Organization (WTO) to assist the Ministry of Tourism and Antiquities to formulate an "action plan" for development of the tourism industry (giving emphasis to the domestic market as a first priority and to sub-regional initiatives with Jordan, for example). Additional support from WTO would be aimed at strengthening the financial management, policy-setting, planning, and legislation and regulation-drafting capacities of the Ministry.

Sub-Initiative 1c: Estimated Cost: $300,000
Start-up Support to the Small Business Council
Start-up funding would be provided to this new organization, as well as advisory support from the International Labour Organization (ILO), to enable it to coordinate initiatives in the small enterprise sector, and develop a coherent strategy for small enterprise promotion and a well-structured programme of support which ensures that the regulatory and legislative environment is supportive of enterprise growth. The SBC would be composed of representatives of the PA and the public and private sectors, involving participants from financial, training, technical and scientific institutions who are engaged in one form or another in programmes to support the small business sector.

Initiative 2: Estimated Cost: $700,000
Increasing Women's Economic and Employment Opportunities
Palestinian women have been hindered from receiving equal access to tangible means for participating in the economic sector, such as business training and credit. UNDP aims to increase women's contribution to the economic sector by:

(1) Establishing a Project Development Fund to concretely identify pre-investment opportunities for non-conventional, entrepreneurial projects for women ($100,000);

(2) Providing business advisory services to present and potential women entrepreneurs ($300,000).

(3) Providing business skill training to increase women's employment opportunities in private sector areas, such as in the tourism and textile industries. One such training programme would be to improve professional office skills, such as a secretarial-training programme in coordination with the ILO. ($300,000).

Initiative 3: Total Estimated Cost: $1,750,000
Investment-Promotion in Industrial Sectors
The industrial base in the West Bank and Gaza Strip needs to be enhanced. Currently the Industrial sector accounts for only 8% of GDP (compared to 49% for the Services sector; 28% for Agriculture; and 15% for Construction). Through the following sub-initiatives, UNDP aims to assist in the undertaking of selected strategic and feasibility studies to trigger follow-up investments from the private sector in key industrial areas.

Sub-Initiative 3a: Estimated Cost: $600,000
Studies for the Implementation of Regional and Municipal Industrial Zones
UNDP will participate in a series of activities aimed at facilitating the establishment of regional and municipal industrial zones, in close coordination with the Ministry of Economy, Trade, and Industry, and the World Bank. These activities will include: undertaking feasibility studies (through full sponsorship or cost-sharing), for the establishment, construction, organization, and management of specific regional and municipal industrial zones; marketing studies for specific product categories especially high value-added products; sponsorship of investment-promotion forums aimed at attracting private sector interest to the regional and municipal industrial zones.

Sub-Initiative 3b: Estimated Cost: $1,000,000
Masterplan Study for High-technology Industries
UNDP will support the Ministry of Planning and International Cooperation to undertake a masterplan study (including needs-surveys, market potentials, and feasibility studies) for the promotion and establishment of high-technology industries in the West Bank and Gaza Strip. The model of India would be used as an example, in areas such as computer software, electronics, printed circuit boards, and telecommunications.

Sub-Initiative 3c: Estimated Cost: $150,000
Support to Development Resource Center - Industrial Reports (Phase 2)
UNDP aims to continue its support to the Development Resource Center in Gaza through the provision of technical assistance (utilizing the senior-level voluntary UNISTAR modality) and materials to analyze and publish industrial sub-sector reports which will concentrate initially on Metal Working, Plastics Processing, Food Processing, Textiles and Garment production. The analysis reports will identify gaps in existing lines of production, investment levels, and technical skills of the Palestinian industrial work force, and will identify further technical assistance needs of the manufacturing subsectors.

Initiative 4: Total Estimated Cost: $3,250,000
Support to Business Development
Through the following sub-initiatives, UNDP will undertake selected interventions in key areas to support business development.

Sub-Initiative 4a: Estimated Cost: $1,200,000
Technology and Business Incubators
The aim of this project, to be implemented with technical support of the United Nations Economic and Social Commission for Western Asia (ESCWA), is to establish two Technology and Business Incubators, one in the West Bank to be based in Nablus (in association with Al-Najjah University), and one in Gaza (in association with the Development Resource Center), as a practical model for stimulating the creation and growth of technology-oriented small and medium enterprises. The function of the incubators is: to support research in innovative products that increase value-added and export returns; to promote development of specific sub-sectors with significant marketing and employment-generating potential; and to stimulate technological innovation and the commercialization of scientific research results. The goal of the incubators is to stimulate the injection of domestic and foreign capital and investment, and to spur technology transfer (especially through expatriate Palestinians), in "high-potential" sub-sectors such as software development, micro-electronics and environment-related technologies.

A further application of the Technology and Business Incubator model would be to extend it to the Regional and Municipal Industrial Zones, to ensure that business advisory services and technology transfer support are available within the zones and to link enterprises within the industrial zones with small and medium-scale enterprises outside the zones. An additional $600,000 would be required for each incubator to be established.

Sub-Initiative 4b: Estimated Outstanding Funding Needs: $1,400,000
Small-Enterprise Promotion
This project, to be implemented with the technical support of the International Labour Organization (ILO), seeks to complement small-business sector support at the policy-setting level (through the Small Business Council), with direct assistance at the small and micro-enterprise level. The project will establish the capacity for small enterprise promotion both at the Federation of Chambers of Commerce, Industry and Agriculture and at five local chapters of the Chambers of Commerce, Industry and Agriculture. At the chapter level, five Small Enterprise Development Units (SEDUS) will assist in the identification of business opportunities; practical training on basic management skills; the preparation of a business plan; referral to organizations providing technological advice and credit; and follow-up business advisory services. Activities will also be conducted through the SEDUs that specifically target women entrepreneurs (see the section on Gender in Development). The total budget for the project is $2.3 million. The ILO has recently received a $900,000 contribution from the Government of Italy for project activities, and thus the outstanding funding needs are now $1.4 million.

Sub-Initiative 4c: Estimated Cost: $300,000
Export Development and Promotion of High-Value Horticultural
Products (Preparatory Assistance Phase)
This project, to be implemented with the technical support of the International Trade Centre (ITC), aims at diversifying markets of horticultural products in the Gaza Strip through improvement of post-harvest handling techniques, quality upgrading, and export marketing of these products to regional and international markets. The project is made up of two main components, upgrading of production, and marketing development. Activities would consist of investigation and decision on the products and beneficiaries under the full-scale project, designing an initial export development plan, establishment of an institutional infrastructure, and installing the trade information service network. The primary Palestinian counterpart institution will be determined as part of the finalization of project formulation.

Sub-Initiative 4d: Estimated Cost: $150,000
Garment Industry Support Facility
The aim of this project, to be implemented with the technical support of the United Nations Industrial Development Organization (UNIDO), is to strengthen the Garment Industry Association in Gaza, one of the most important manufacturing associations, which consists of a large number of small workshops. The project aims at addressing the major problems faced by the sector; procurement of industrial inputs, upgrading of design capacity, maintenance of sewing machines, improving quality control, standardization procedures, and marketing know-how. The project will be implemented in association with the Ministry of Economy, Trade, and Industry.

Sub-Initiative 4e: Estimated Cost for UNDP: $200,000
Support to "Bethlehem 2000"
This project aims to assist the Ministry of Tourism and Antiquities and Bethlehem Municipality in their efforts to launch and implement Bethlehem 2000. Technical support would be provided by UNDP and UNESCO. The project aims at maximizing local profits from tourism and generate employment, especially for small businesses in tourism services and the craft industry, and comprehensive planning for what will be a major world-wide tourist event in the year 2000. The occasion can be used to improve tourism infrastructure, promote cultural activities, plan the rehabilitation of archeological sites and develop local capacity to implement similar promotional events in tourism on a continuing basis. The Palestinian private sector, in addition to UNDP's and UNESCO's inputs, should participate actively in the funding of this project.


Unemployment in Gaza is one of the primary concerns of the Palestinian authorities. Due to the inability of the local economy to generate a sufficient number of jobs, the highly regulated and rationed availability of employment opportunities in Israel, and the frequent border closures, the number of unemployed workers in Gaza is presently estimated at 70,000-80,000, out of a total work force of 160,000-180,000 people. Many others are seriously under-employed in low paying and low productivity jobs. Poverty, already widespread, has increased further. According to recent estimates by the World Bank, nearly one third of Gaza's families have incomes below the poverty line of $470 per year, while the standard of living is believed to have decreased by over 60% over the recent months. To compound this unemployment problem, infrastructure in the Gaza Strip is in a serious state of decay. This applies to roads, markets, hospitals and clinics, schools, public buildings, water and sanitation facilities, housing, and electric power networks. A major part of the infrastructure needs rehabilitation and improvement to serve as a basis for future economic and social development.

To begin dealing with these problems of unemployment and lack of adequate infrastructure, the Palestinian Authority, with the support of UNDP and a group of international donors, launched in August 1994, a large-scale emergency programme aimed at infrastructure rehabilitation and environmental improvement throughout the Gaza Strip which relied to the maximum extent possible on labor-intensive methods for the purpose of alleviating unemployment. The first phase of the Programme, which is being implemented by PECDAR's Programme Management Unit (PMU) in Gaza, with support from UNDP, focused on basic infrastructural works which could be implemented immediately and had a high labour content.

All activities undertaken are coordinated through the Sectoral Working Group on Employment Generation. Active participation in the Sectoral Working Group by all participants has resulted in the identification, and prioritization of rapidly implementable project proposals amounting to over $60 million, all designed to generate immediate employment opportunities.

Under the first-phase of the Employment-Generating Public Works Programme, UNDP received funding for the following activities which are co-implemented with PECDAR: (1) The Gaza Clean-Up Project; funded through a $5 million contribution by the Government of Japan, and completed in December 1994; (2) The Parks and Neighborhood Re-Transformation Project funded by Norway with a grant of $3 million (on-going) for which the UN Special Co-ordinator played a key fund-raising role; (3) The Employment-Intensive Tiling and Paving Programme for Gaza City for which Japan has contributed $5 million, and which was launched in December 1994; (4) Paving and tiling of roads and sidewalks for which the USA has contributed $4 million and Sweden $1 million; and (5) Rehabilitation of Social Infrastructure funded by Sweden for $2 million.

As the first phase of the programme was being implemented, it became increasingly clear that in order to improve local employment opportunities in the Gaza Strip and address the serious deterioration in the standards of living of the population, the large-scale public works programme would have to be continued and expanded to an even larger scale and for a longer duration.

A strategy for this "second-generation" of the Employment-Generating Public Works Programme has thus been designed, and the strategy is presently being pursued through an initial series of labour-based public works for which donors are starting to provide funds. The strategy for the "second-generation" of public works contains the following elements:

1. To increase the technical and implementation capacities of all of the implementing Palestinian institutions, including PECDAR's Programme Management Unit, the Ministry of Housing and Public Works, the technical departments of concerned line Ministries and municipality and village councils.

2. To create a large number of jobs in the short-run, the strategy advocates increased and more effective use of labour-intensive infrastructure construction techniques, rehabilitation and maintenance methods by increasing the labour-intensity of individual projects.

3. The strategy aims to ensure that infrastructure improvements will be properly maintained after construction so that they will constitute lasting improvements with permanent benefits for the population of the Gaza Strip.

4. The identification and prioritization of labour-intensive projects is being done through a consultative process between the Palestinian Authority, local governing structures, UN Agencies and donors. Active community participation in the selection and formulation of projects tends to give more weight to smaller works, and utilization of small contractors who use relatively more labour than big contractors.

5. The strategy incorporates maintenance and operation works to a greater extent than in the first-generation of the programme. Municipality and village councils are responsible for maintenance of streets, storm drainage, sewerage and water networks, and removal of solid waste. Initially donors may have to (partially) fund maintenance, provided a schedule is agreed for the gradual take over of the funding responsibility by the appropriate authority.

6. In order to link the short-term emergency rehabilitation works with long-term investment needs that generate sustainable and continued employment and create an "enabling environment" for private sector investment, the labour-intensive approach should also be applied to non-emergency projects as far as possible and without jeopardizing quality of works and cost-effectiveness.

7. The strategy incorporates the creation of a flexible rolling programme under which another set of projects will be identified and designed while one set is under implementation. Such a pipeline will permit continuation of the Programme without interruption as additional funds become available.

8. The program strategy advocates the close involvement of the target municipality and village councils in all activities to be undertaken, together with assistance designed to help them develop institutional capacity to take increasing responsibility for infrastructure development and maintenance in their communities.

9. The strategy seeks to extend the programme into rural areas of the Gaza Strip, to ensure that the entire population benefits and not only urban residents.

A "third-generation" of the Employment-Generating Public Works Programme is being finalized, which focuses on extending the Programme to the new geographical areas of autonomy expected to be gained soon by the PA throughout the West Bank. This third generation focuses in particular on improving the operation and maintenance capacities of the local governing structures.

The overall approach of all of the programmes proposed in this sector is clearly "bottom-up", starting "downstream" and progressively, while implementing programmes, stage by stage, from the prioritization to the formulation and implementation phases, building up capacities and responsibilities at the different levels.

In line with this strategy for support, the following initiatives within the Employment-Generating Public Works area have been identified:

Initiative 1: Outstanding Programme Funding Needs: $28,000,000
Expansion of Employment-Generating Public Works Activities
Funds are needed to implement specific projects which have been incorporated into the first and second generations of the Employment-Generating Public Works Programme. For the second-generation, emphasis is placed on moving beyond "clean-up" and short-term emergency projects to more substantial developmental activities, such as paving of streets with concrete blocks; improvement of village and secondary rural roads; maintenance of infrastructure; secondary and tertiary drainage and sewerage systems rehabilitation; tree-planting and rehabilitation of parks; construction of simple buildings such as schools, health clinics and public markets. The "second-generation" of activities relies on co-implementation by PECDAR's Programme Management Unit, the Ministry of Housing and Public Works, and the technical departments of line ministries and municipality councils. In addition, ILO technical expertise will be sought for an initial amount of $200,000 to provide advice to the Employment Sectoral Working Group and to the PA on labour-intensive methods and management, and to formulate an Employment Plan.

The Employment Sectoral Working Group, in close association with the co-implementing Palestinian institutions, has identified a series of priority projects which have not yet been funded and which can start implementation within the next three months (see the attached table at the end of this section). UNDP is seeking $28 million to undertake the specific projects listed in the table, which cover both the West Bank and Gaza Strip.

Initiative 2: Estimated Cost: $2,000,000
Support to Implementation Capacity
To support the Employment-Generating Public Works Programme into its "second" and "third-generation" of activities, UNDP aims to strengthen the implementation capacity of the Palestinian co-implementing institutions, including PECDAR's Programme Management Unit, the Ministry of Housing and Public Works, participating municipality and village councils, and the technical departments of the line ministries. Training and assistance will be provided in the following areas:

1) financial and operational monitoring (including auditing) and reporting services;
2) contracting procedures including identification of sub-contractors, screening contracts to ensure that they conform to established project criteria, preparation of tender documents, and bidding procedures;
3) procurement services, including purchase, importation and delivery of any equipment, tools and materials that are needed;
4) identification of external consultants, if needed, and formulation of their Terms of Reference and contracts.

This support will be provided through technical advisory services from UNDP's large Engineering Unit, and for the village and municipal councils by UNDP's Local Rural Development Programme team, which currently operates in Jenin District, in assessing priority investment needs at the micro-regional level and identifying co-financing mechanisms to undertake infrastructure works.

Initiative 3: Estimated Cost: $1,000,000
Preparation of a "Rolling Programme"
UNDP seeks to support the work and outputs of the Sectoral Working Group on Employment by conducting feasibility studies for:

- upgrading sewage treatment plants;
- extension and rehabilitation of water and sewage networks;
- improvement of feeder roads;
- rehabilitation of irrigation systems;
- social sector infrastructure construction programme.

These feasibility studies would be used to formulate and prioritize a "Rolling Programme" of Employment-Generating Public Works projects for the West Bank in particular, which have not yet been included within the Emergency Rehabilitation Programme currently under implementation. The aim of conducting the feasibility studies is to enable rapid follow-up implementation of the infrastructure works.

Initiative 4: Estimated Cost: $500,000
Training of Small Contractors
UNDP and ILO seek to train small contractors in labour-based works and techniques, using light equipment and contracting procedures, so as to increase the pool of participants in the infrastructure schemes and to "privatize" as much of the implementation components as possible.

Labour Intensive ProjectsBudget in US$Total Person Working Days% Labour Value
(1) Rehabilitation of Social Sector Infrastructure (West Bank) 3 million 55,000 27%
(2) Rehabilitation of Parks, Playgrounds and Youth Facilities (West Bank) 2 million 40,000 30%
(3) Jericho Water Supply &
Irrigation Rehabilitation (West Bank)
3 million
3 million
120,000 30%
(4) Rehabilitation of Small Scale Infrastructure in Municipalities in Gaza Strip 2 million 35,000 27%
(5) Rehabilitation of Small Scale Infrastructure in Municipalities in the West Bank 4 million 50,000 20%
(6) Small Scale Rural Water and Sewage Projects
Gaza and
West Bank

2.5 million
2.5 million
(7) Labour Intensive Public Works (roads)
Gaza and
West Bank
3 million
3 million
$28 million 475,000

UNDP's strategy for support in Environmental and Social Sector Infrastructure cuts across several different sectors. Although UNDP's support will differ according to the specific needs of each of these infrastructure "sub-sectors", there are several elements that are common to all of UNDP's infrastructure support programmes. These commonalities include:

1. Among the enormous needs for infrastructure investment, the most urgent need is to rehabilitate and maintain essential and high-priority existing physical infrastructural facilities, while simultaneously developing sustainable capacity within Palestinian institutions to manage, and operate such facilities. Thus, capital assistance and technical assistance will be combined into packages of infrastructure support. Due to severe unemployment and underemployment problems throughout the West Bank and Gaza Strip, priority will be given to infrastructural works that contain a high labour content.

2. It is essential to develop capacities within Palestinian institutions in the following areas:

a) management of cost-recovery systems through user-fees complemented by gradually-decreasing "subsidized" running costs;

b) mobilization of co-financing resources from the beneficiary institution(s) to complement capital and technical assistance programmes by covering the running costs of rehabilitated infrastructure. The aim is to improve both the effectiveness of investments and the efficiency of service provision, and to improve the means of delivering infrastructure services.

3. Service will be the goal and the measure of infrastructure development projects. Training will be provided to improve the performance of infrastructure services financed through UNDP. New concepts of management and service delivery will be introduced on an experimental basis, such as:

a) competitive bidding procedures to introduce private sector commercial management and financing of public infrastructures

b) full community/stakeholder involvement through community participation meetings at the time of identification and design of infrastructure projects as well as in their operation and maintenance so that the facilities are responsive to the needs of the users and to ensure that users will pay for the services, if they are provided efficiently.

c) policies and regulations that ensure managerial and financial autonomy of infrastructure service providers to safeguard the interests of the poor, improve environmental conditions and support private sector involvement in the provision of infrastructure services. Best practice standards will be encouraged in infrastructure sub-sectors.

4. Technical assistance projects to develop the institutional and human resource capacities of the implementing departments of line ministries, local utilities, municipalities and village councils involved in infrastructure planning and investments will be identified and formulated. An example of this new type of intervention is the Water Resources Action Programme (WRAP), where UNDP is providing technical assistance and advisory support to develop the capacity of local water utilities, and the recently established Palestinian Water Authority (PWA) in all aspects of water resources management. Upstream and downstream interventions are combined through undertaking water resource assessments, hydrological monitoring and data archiving, technical studies, pilot demonstrations of water use and reuse, community awareness campaigns, training of Palestinian experts and coordination of programmes in the water and sanitation sectors to facilitate policy-dialogue and to help the Palestinian Water Authority achieve an overall policy on water resources issues.

5. By selecting and undertaking infrastructure projects with a high labour content capable of being implemented by local and small contractors, in priority areas such as water and sanitation as well as health and education, UNDP will be assisting in strengthening the essential "material" and "physical" base upon which Sustainable Human Development strategies can be initiated.

6. To develop local implementation mechanisms and structures capable of translating strategies into actions, training will be targeted to the water departments of municipality and village councils in all aspects of project identification, design and implementation. Particular focus on technical issues such as water leakage detection, maintenance and operation of water and sewerage networks, cost recovery mechanisms, and solid waste disposal will be built into all of UNDP's infrastructure projects relating to the environment. Implementation of infrastructure projects will be done in close cooperation with beneficiary counterparts and by sub-contracting private Palestinian contractors.

In line with these strategies for support in Environmental and Social Sector Infrastructure, UNDP aims to undertake the following initiatives:

Initiative 1: Total Estimated Cost: $500,000
Project Development Fund
One of the key constraints to mobilizing donor funding in the infrastructure area, as in the Employment Generation Programmes, is the lack of practical and project-specific feasibility and/or pre-feasibility studies. The establishment of the Project Development Fund would be used to undertake these studies in order to promote the rapid launching of follow-up infrastructural investment projects. The Fund would be targeted towards high priority projects of the Palestinian authorities, but which have not been included within the World Bank/PECDAR Emergency Rehabilitation Programme, or other donor funded projects currently under implementation. Feasibility studies are required in numerous capital and technical assistance projects, to assess the technical, economic and financial feasibility of the proposed works. Selected feasibility studies would be undertaken by UNDP and other UN Technical Assistance Agencies for priority projects emanating from the local communities and the concerned Palestinian line ministries.

Initiative 2: Total Estimated Cost: $11,850,000
Water and Sanitation Sector Support

Sub-Initiative 2a: Estimated Cost: $1,750,000
Water Resources Action Programme (Phase 2)
UNDP will extend its support through the Water Resources Action Programme (WRAP), with the primary aim of strengthening the capacity of the newly established Palestinian Water Authority (PWA) to address the priority issues facing the key water sector. More specifically, UNDP aims to support the following initiatives:

- Central level advisory and technical support to the PWA to: formulate water legislation, water allocation policies and sound negotiation positions with regard to the equitable allocation of shared water resources; continue the community awareness campaign, initiated in 1994 under the auspices of WRAP; and produce informational documents on issues related to the water sector ($350,000).

- District and inter-district masterplan studies in the water and sanitation sectors, in conjunction with the PWA ($500,000).

- Support to the Palestinian Hydrology Bureau to monitor and maintain a water resources data base in order to ensure the development of efficient management options ($400,000).

- Support to district and local water authorities to establish effective water tariffs to ensure cost recovery ($250,000).

- Support to local governing structures in their efforts to identify appropriate technologies to be used for sewage treatment and to demonstrate the various possibilities for re-use of treated effluent ($250,000).

Sub-Initiative 2b: Estimated Cost: $2,000,000
Rehabilitation of the Rafah Water Network and Reservoirs (Phase 2)
The city of Rafah in the Gaza Strip has been plagued with water shortages as the rapidly expanding population has strained the present infrastructure system beyond capacity. The objective of this project is to provide the 100,000 people in Rafah with a more reliable and plentiful water supply. Under Phase 1 of the project, currently under implementation, two reservoirs are being constructed. The existing municipal water network is also being extended to population areas currently not served at all by piped water. USAID has provided $1.4 million to UNDP to construct the two reservoirs and the network extension. UNDP is seeking a further $2.0 million in order to implement Phase II of the project through which the existing network can be rehabilitated and upgraded through the replacement of the old asbestos cement pipes with steel pipes.

Sub-Initiative 2c: Estimated Cost: $4,000,000
Rehabilitation of Khan Younis Water Supply and Distribution System
The aim of this project is to rehabilitate and upgrade the water supply network and the water distribution system of Khan Younis in the Gaza Strip. 90% of the main lines are asbestos cement, and need to be replaced. The water wells and reservoirs need rehabilitation, as do the pumps. $750,000 has already been secured from Japan for UNDP to initiate the rehabilitation works. A further amount of $4 million would allow for completion of the renovation and upgrading.

Sub-initiative 2d: Estimated Cost: $4,100,000
Extending Water Supply Systems in the Rural Areas of the West Bank
The success of previous projects implemented by UNDP in 37 Palestinian villages and the persisting need for clean water supply in other areas are the reasons for UNDP's intention to extend its activities in order to reach 25 more villages which have already been identified and costed. This project will also be combined with a training programme for local water utilities, and will be tied into the ongoing water awareness campaign managed by UNDP and WRAP.

Initiative 3: Total Estimated Cost: $10,000,000
Support to Social Sector Infrastructure

Sub-Initiative 3a: Estimated Cost: $5,000,000
Hospital Upgrading Programme
The health sector is characterized by a fairly well developed primary and secondary health care system, which has long been supported by UNRWA and a range of Palestinian and international NGOs; and very underdeveloped and inadequate tertiary health care facilities, due to the fact that the large scale investments necessary to support the tertiary health care system were generally ignored during the occupation period. Funds are thus requested to help fill this void in assistance by undertaking construction work at two hospitals:

- Construction of a Northern Wing at the Princess Alia Hospital in Hebron which will provide an additional 60 beds, operating theaters, and a fully-equipped emergency unit for $3,000,000.

- Construction of a Maternity Wing at the King Hussein Hospital in Beit Jala, which will include operating theaters and maternity wards for $2,000,000

Sub-Initiative 3b: Estimated Cost: $5,000,000
School Construction in the West Bank and Gaza Strip
The objective of this project is to construct, either as new facilities or as additions to existing facilities, 160 classrooms in the West Bank and Gaza Strip. The sites have been selected on the basis of the most urgent needs and with special attention to meeting the particular need for girls schools, and for students living in rural areas. The schools will be constructed by UNDP, using local contractors, in coordination with the Ministry of Education, municipalities, village councils, and UNRWA.

Initiative 4: Total Estimated Cost: $600,000
Renewable Energy Technologies and Energy-Saving Initiatives
UNDP, in close coordination with relevant Palestinian ministries and institutions, will support expanded application of existing renewable energy technologies, such as wind energy, bio-gas, and composting, as well as support the introduction of new applications. Initiatives in energy-saving and energy efficiency will also be supported through the project. The Palestinian Energy and Research Centre, a leading Palestinian institution in this field, is presently working on initiatives to define Palestinian thermal regulations for buildings and thermal characteristics of building materials. Another initiative to be supported is the establishment of a pilot plant for the manufacturing of insulation material (rock wool) through utilizing existing raw materials. The project will also support the participation of Palestinians in subregional initiatives in renewable energy resources. The aim of UNDP's involvement is to help the Palestinian Authority develop a comprehensive strategy in the energy sector, by demonstrating the practicability and viability of alternative energy technologies and energy-saving efforts.

Initiative 5: Total Estimated Cost: $3,000,000
Low-Cost Housing (Phase 1)
This project, to be implemented with technical support from the UN Centre for Human Settlements (UNCHS/Habitat), aims at assisting the Ministry of Housing to formulate policies on the construction and financing of low-cost housing. Funds would also be utilized to initiate a pilot demonstration project to construct a low-cost housing development in the Gaza Strip, making maximum use of locally available resources and raw materials, for up to 200 households.


The strategies and programme initiatives which have been presented reflect a joint assessment by UNDP and the Palestinian Authority of the top priorities in each sector, taking into account those areas where UNDP's comparative advantages in promoting Sustainable Human Development and utilizing local implementation capacities can be most usefully applied. They furthermore endeavour to reflect a realistic view of what is achievable and readily-implementable in each sector, as well as an attempt to narrow down the practically unlimited range of development needs in the West Bank and Gaza Strip to those specific projects that will provide the most tangible and visible results to the Palestinian people.

In addition to the sectoral projects already presented, UNDP intends to assist the Palestinian Authority in three other broad-based initiatives:

- To facilitate the "disenclavement" of the West Bank and Gaza Strip from its history of relative isolation, UNDP will support the incorporation of Palestinian participants into ongoing regional and sub-regional programmes of UNDP and other UN Agencies. Such support is aimed at promoting the integration of the West Bank and Gaza Strip and its people into the broader economic and social networks of the Mediterranean and Middle-Eastern regions.

- UNDP aims to support the Regional Peace Process by facilitating joint cooperation on key technical issues, similar to the ongoing trilateral initiative between the Government of Israel, the Government of Jordan, and the Palestinian Authority on Combating Desertification. UNDP's network of Country Offices throughout the region can be particularly useful in organizing such efforts.

- UNDP intends to support, at a technical level, Palestinian participation in regional and international conferences, economic summits and negotiations. UNDP can provide technical advisors on a short-term basis, who can analyze the technical aspects of negotiation positions and their economic and social consequences.

In addition, UNDP either has formulated or is in the process of formulating many other projects within the six thematic programme areas, in line with emerging needs and based on continuing dialogue with our Palestinian counterparts in the PA, in municipal and village councils and in the civil society. Donors may be interested in cooperating with UNDP in many of these "soft-pipeline" areas as well, many of which have a longer-term implementation time-frame than the initiatives presented in detail in this Programme Framework.

It should be emphasized that while UNDP does have the technical and implementation capacities to undertake all of the proposed initiatives (either through its own resources or through those of the UN System), UNDP does not have the financial resources necessary to undertake all of these project initiatives in their entirety ($94 million over the 1996-1998 period; see Annex 3). UNDP, however, will be able to contribute its own seed-money through its limited core resources to launch selected strategic initiatives, and to finalize the formulation of other initiatives, in close coordination with Palestinian counterparts, in order to enable and further attract multi-bi donor contributions.


Annex 1 Ongoing UNDP/PAPP Projects in 1995

Annex 2 Summary Highlights of Ongoing UNDP/PAPP Projects

Annex 3 Initiatives for Future Programme Activities
(Summary of Funding Needs)


(Table on ongoing-projects (as of 1995))


Summary Highlights of Ongoing UNDP/PAPP Projects

Total Value of Ongoing UNDP/PAPP Projects: $78.0 million

Bilateral Donor Contributions: $71.0 million
UNDP's Core Resources: $3.6 million
UN Agencies' Contributions: $3.4 million

1994 Actual Expenditures $22 million
1995 Expected Expenditures $34 million

Expenditures are cash disbursements plus unliquidated obligations. Unliquidated obligations are payments due on purchase orders and contracts.


(Table from Quatro-Pro on list of projects to be funded)

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