Select Committee on International Development Ninth Special Report


Annex: Response by the Office of the Quartet Representative


General comments:

  • The Quartet Representative is focused on the implementation of the package of measures he announced on 13 May 2008. In addition, the QR has continued to work hard in support of developing the Palestinian economy and institutions, which has included efforts and lobbying to ensure that donors honour their commitments to disburse budget support pledges to the PA. His efforts towards Gaza extend well beyond the North Gaza sewage project, to include working to maintain Gaza's entire water and sanitation network, and the successful lobbying of the Israeli government to allow much needed new currency into Gaza and the exchange of old currency so that 400,000 civil servants and their dependants could receive salary, pension and safety net payments. The QR has also successfully lobbied on behalf of Gaza students to be allowed to travel abroad to take up their scholarships and has pushed for more goods to be allowed into Gaza. He has also begun to raise funds internationally to support public education in the West Bank and in Gaza and to improve the learning environment of over a million students.
  • On the projects front, the QR's strategy has been to identify opportunities to strengthen existing efforts from donors and to ensure the projects receive all the necessary clearances and can come into effect quickly, rather than to set up parallel initiatives for project development to the ones already in existence (in the PRDP and in the Berlin Conference outcome document.)
  • Efforts to support the rule of law and to follow up on the Berlin conference have been coupled with a renewed focus on Jenin, coupling rule of law activities there with economic projects. This is intended to create successful precedents for Israel's removal of movement and access restrictions instituted since 2000, matched with a marked improvement in security delivery by the PA, and 'peace and security dividends' to the Palestinian population resulting from greater access, investment and donor support.
  • Response to paragraph 63 (projects manifesting the occupation and legitimising it): The international community at large has chosen not to compromise the well-being of the Palestinian population, and has therefore sought to ensure that well-being at the same time as pushing for an environment that supports peaceful negotiations to the creation of a peaceful, viable, and democratic Palestinian state and an end of the Israeli occupation.

Update on progress of the removal of checkpoints, the creation of the Jenin Industrial Park and the North Gaza sewage project (paragraph 66 of the report):

1)  Removal of checkpoints: Shavei Shomron, the main checkpoint connecting Nablus to Jenin was opened in mid-August and remains open on a daily basis between the hours of 06:00-18:00. This follows the removal of the Kvasim checkpoint on 18 May, as well as the removal of the Asira A Shamaliya checkpoint near Nablus and the Rimonim checkpoint before that. The QR continues to press for easing West Bank access and movement, including the removal of other checkpoints and granting of permits as agreed in the May 13 package.

2)  Jalameh Industrial Park: Progress is being made with good cooperation between PA-GOI, the donors, and the developer. Questions over power and water supply remain, but these are in the process of being addressed. The issue of the access road has already been resolved. The primary PA agency responsible for this industrial estate is the Palestinian Industrial Estate and Free Zones Authority (PIEFZA). The Ministry of National Economy, which chairs PIEFZA, is the key ministry. The private developer for the site is the North Industrial Investment Company. Germany, through KfW, is financing and executing off-site infrastructure, and the European Investment Bank and the World Bank are involved in all power issues. The Israeli Ministry of Defence has agreed to reduce the distance from the barrier to 350m (from 500m). Issues that remain to be resolved include the design and height of the surrounding fence, the height of the industrial buildings, criteria for products, equipment and workers allowed to go in and out during the construction period and the type of security checks required during the construction period. As soon as the list of industries allowed to produce inside the park and the list of products to go in and out have been agreed, the presentations for the road-show will be prepared for attracting potential investors.

3)  North Gaza Sewage Project: Good progress has been made. Phase One of the project will be completed once the last 70 trucks of pipes are allowed into Gaza by the Israeli authorities. The Israelis are working hard to let these in as Phase One should be completed before the start of the rainy season. Once this is done, Phase One will be completed one month after that. Israel has provided the security clearance for all goods for Phase One, and needs to co-ordinate the transfer of goods from Ashdod to Gaza.

Report on other areas of progress:

  • Wataniya telecommunications company: On 28 July, the Palestinian Authority and the Government of Israel signed a Frequency Allocation Agreement that enables Wataniya, the second mobile telephone operator in Palestine, to begin operations. The Wataniya deal was one of the cornerstones of the May 13 package agreed upon by the Quartet Representative and the Israeli government. As a result of the frequency allocation, Wataniya will begin procurement of the equipment to begin operations by the beginning of 2009. This deal will contribute to the overall growth of the Palestinian economy. It will involve an injection of funds to the PA of over $354 million in licence fees, with an immediate transfer of $80-100 million, which has crucially helped Prime Minister Fayyad cover the August salary payments. Secondly, Wataniya will invest more than $700 million in the Palestinian Authority over 10 years, create 750 jobs for Palestinians and generate 1,500-2,000 indirect jobs.
  • Palestinian workers: a further 1000 permits have been granted for 1000 Palestinian olive harvesters to work in Israel.



 
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