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Source: World Bank
22 June 2000



News Release No:
2000/441/MNA

World Bank Approves Credit to the Palestinian Authority for the Second Municipal Infrastructure Development Project

WASHINGTON, June 21, 2000--The World Bank's Board of Directors yesterday approved a credit to the Palestinian Authority in the amount of US$7.5 million for the Second Municipal Infrastructure Development Project.

The project, which builds on the on-going initiatives of the First Municipal Infrastructure Development Project, aims to a) improve infrastructural services (roads, water, drainage and sewerage) to and within villages and municipalities in West Bank and Gaza, and preserve existing infrastructure assets; and b) strengthen municipal and central governmental capacity to plan, program, finance, manage and maintain local services. The project is expected to tackle reforms in six new selected municipalities: Jablia, Khan Younis (Gaza) and Tulkarem, Al Tam, Jericho and Taquima (West Bank). Moreover, the project will begin building infrastructure (roads) maintenance programming capacity for the Ministry of Public Works.

The project is expected to benefit the populations in the villages and selected municipalities served. About 400,000 persons in 35 communities in West Bank and Gaza are expected to benefit directly from the project.

The overall project cost is US$26 million. The World Bank's credit of US$7.5 million is drawn from the Trust Fund for Gaza and the West Bank and is on standard IDA (International Development Association) terms with a 40-year maturity, a 10-year grace period, and 0.75 percent service charge. The credit is accompanied by counterpart financing from the Palestinian Authority of US$4.4 million and by co-financing of US$5 million from the Saudi Fund. Additional funding is being sought from other donors.
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