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Source: World Bank
31 March 1994

March 1994

Volume lI: Technical Assistance Program
The World Bank

Preface - i-ii
I. Executive Summary II. Program Description III. Program Implementation and Management IV. Program Cost and Funding V. Benefits and Risks - 64

On October 1, 1993—following the historic September 13 accord between Israel and the PLO—a donors' conference took place in Washington, D.C. to mobilize international support for economic and social development in the Occupied Territories. Participants in the conference felt strongly that there was an urgent need to deliver tangible benefits to the Palestinian population to reinforce the momentum towards peace. Towards that objective, participants pledged over US$2 billion in financial assistance and asked the World Bank to provide the framework and technical underpinning needed to use such assistance effectively.

Responding to the sense of urgency expressed by the donors, a World Bank mission visited the Occupied Territories from October 11 to November 22, 1993, following a brief visit to Tunisia to confirm the mission's objectives with the Palestinian leadership. In Tunisia, it was agreed that the World Bank mission to the Occupied Territories would seek:
Representatives from Denmark, the European Commission (EC), the European Investment Bank (EIB), Japan, Norway, Switzerland, and the United States Agency for International Development (USAID) participated in the mission. United Nations (UN) agencies—in particular the United Nations Relief and Works Agency (UNRWA), the United Nations Development Programme (UNDP), and the United Nations Children's Emergency Fund (UNICEF)—were also actively involved in mission work. UNDP and UNRWA seconded several experienced staff members from their local offices to the mission. Representatives of other donors were also consulted regularly and were kept abreast of developments. Extensive contacts were maintained with the local and international Non-Governmental Organizations (NG0s) active in the Occupied Territories. The mission also worked closely with a number of visiting delegations, including those from the UN, UNRWA, World Food Program (WFP), International Monetary Fund (IMF), International Labor Organization (ILO), UK, and Sweden.

The mission received excellent cooperation from the Palestinian and Israeli authorities. The Palestinians set up a highly professional and dedicated Counterpart Team to work with the mission. Mission members travelled extensively in both Gaza and the West Bank, meeting a broad spectrum of Palestinians concerned with issues of transition and socioeconomic development. On the Israeli side, the mission had extensive contacts with the Bank of Israel, the Civil Administration in charge of the Occupied Territories, and Israeli Ministries of Finance, Foreign Affairs, and Environment.

This report is based on the findings of the above mission. It relies heavily on descriptions and broad sectoral strategies elaborated in the World Bank study, Developing the Occupied Territories: An Investment In Peace (1993). The report is in two volumes. Volume I of the report describes the main issues affecting the various sectors of the Palestinian economy and presents proposals for investments designed to address those issues. It also describes the external financing requirements of the public sector—including the start-up and transitional expenditures of the new Palestinian administration. Volume II provides a detailed description of the complementary technical assistance package needed to support project preparation and to help with institution building for overall development.

An earlier draft of this report was discussed with the Palestinian and Israeli authorities by a follow-up Bank mission to the Occupied Territories during December 8-12, 1993. That was followed by further discussions at the first Consultative Group meeting for the Occupied Territories held in Paris on December 16, 1993. The draft report has been revised, as appropriate, to reflect comments and suggestions from the Palestinians and the Israelis, and from the Consultative Group.

Because of the many uncertainties affecting the Occupied Territories at this stage, it is important that the investment and technical assistance programs proposed in this report should be treated as indicative rather than as a blue print. To remain relevant and useful, the report will require regular updates in light of the unfolding peace negotiations and the actual implementation experience.

I. Executive Summary

Objectives and Approach

1.1 This report outlines a three-year program of priority technical assistance to help the Palestinian authorities build institutions and enhance their capacity for self-government, design policies and programs for sustainable development in the Occupied Territories (OT), and prepare and implement investments under the proposed Emergency Assistance Program. The report has been designed to give the reader a thorough understanding of the content of and justification for the TA program in the various sectors. Accordingly, it summarizes the medium-term development strategy in each sector, described in greater detail in Volume I; it then describes the TA priorities in each sector that flow from the sector strategy and the recommended sequencing of those activities; and, finally, it highlights, in summary form, the content and cost of each TA activity. Terms of reference for most activities proposed to be initiated in 1994 have been prepared in draft and are available in Project Files maintained at the Palestinian Economic Council for Development and Reconstruction (PECDAR) and at the World Bank.

1.2 Activities included in the TA program have been designed to: 1.3 As the OT have been largely without their own government institutions, policies and programs for the past 27 years, there is a heavy agenda of technical assistance required. In sum, the program amounts to about 100 priority TA activities, phased over the next three-year period, with an estimated aggregate cost of about US$75 million, divided as follows:

Institution Building & Training
Project Preparation and Implementation
Policy Studies
Feasibility Studies

US $27.0 million
    29.7 million
    11.0 million
    8.0 million
US $75.7 million

A sector by sector breakdown of the TA program is provided in Annexes 1, 2, and 3.

Full report:

Complete document in PDF format (Requires Acrobat Reader)

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