Select Committee on International Development Written Evidence



Supplementary memorandum submitted by the Department for International Development—Letter from Rt Hon Douglas Alexander MP, Secretary of State for International Development following oral evidence on 20 May 2008

  At my recent evidence session on the Occupied Palestinian Territories, I promised to update the Committee following my attendance of the Palestine Investment Conference (PlC) on 21 May. I welcome the positive response from International Development Committee colleagues to the PIC and to UK support for economic growth in this challenging environment. As you know, the Prime Minister took a personal interest in the PIC and places strong emphasis on the role of the economy in the peace process.

  President Abbas opened the PIC. He stressed the importance of the event for the Palestinian economy and a future viable state. He was followed by Prime Minister Fayyad, Tony Blair, a number of Arab and Western ministers and myself. I confirmed the UK's strong support for Palestinian economic development and announced £3 million for a new project to support Palestinian businesses to access new markets and develop new products: the Facility for New Market Development.

  The conference was very well attended by over 2000 people. The majority of investors were from the Gulf region, with the US also well represented. There were about 30 UK delegates. Israel fulfilled its promise to ease entry of conference participants, approving all but a handful of visa applications and smoothing passage through checkpoints. Over 100 Gazan business people were able to attend.

  Investment projects totalling £1 billion were prepared for the conference with DFID support. These have the potential to create 50,000 new jobs, which, as I highlighted during the evidence session, is critical to economic recovery and a sense of hope, particularly amongst young people. 10 investment agreements were signed over the first two days of the PIC for a total of over £700 million, primarily in housing, infrastructure and telecommunications with Arab companies.

  Looking forward, the priority will be to ensure that investments are realised, jobs are indeed created, and that the peace process is strengthened as a result. DFID's Facility for New Market Development will help share the risks for over 300 small and medium enterprise projects and investments. UKTI will follow up on the raised interest among UK investors. More widely, DFID will retain its focus on economic recovery and growth. Our funding to and capacity building for the Palestinian Authority helps ensure the conditions are in place to attract new investment. These conditions include improved public finances, security, and an educated workforce.

  The PIC was a success. But major challenges to economic recovery remain. The lack of progress on movement and access, critical to the flow of goods, workers and the investors themselves, did cast a shadow over the event. Without progress on that area, the economy remains under pressure and more likely to decline than to grow. Annapolis provides the best hope for peace and the improvements in movement and access that would go with that. While ambitious, the Annapolis goal of tangible progress in 2008 can still be achieved. That is why the UK continues to do all it can through its diplomatic efforts and aid programme to support the peace process. We will also continue to support the work of the Quartet Representative, whose efforts helped make the PIC a success.

  I also promised to provide further detail on the United Nations Relief and Works Agency's expenditure and access in Gaza and the review of the Temporary International Mechanism (July 2007). These are enclosed.

Douglas Alexander

Additional information:

Interim Evaluation of the Temporary International Mechanism (TIM), Main Report—http://www.delwbg.ec.europa.eu/en/tim/reports/InterimEvaluationOfTheTIM_JULY2007.pdf

Annexes—http://www.delwbg.ec.europa.eu/en/tim/reports/ANNEXES-InterimEvaluationOfTheTIM_JULY_2007.pdf

Annex A

UNRWA—ADDITIONAL INFORMATION

UNRWA EXPENDITURE 2007
General fund Emergency appealProjects Total
West Bank$77.7m $67.8m$6.1m$151.6
Gaza$150.2m$119.4m $9.5m$279.1


TOTAL TRUCKS AND COMMODITIES DELIVERED TO GAZA THROUGH CROSSING/TERMINALS


Item
  Flour Rice Sugar Oil W/Milk Lentils Medicine General Cargo Total
Tons
Total
Trucks

Month
Tons TrucksTons TrucksTonsTrucks TonsTrucks TonsTrucksTons TrucksTons TrucksTonsTrucks
January4,471248 1,71195269 2651129 1199597 33255 007,703 445
February5,380299 1,391771,250 961247 86600 6120 28,257488
March5,254192 7540 064437465 331297 9215516 6,731291
April2,423135 1,280711,126 6328716 144100 082318 325,586329
May3,220179 00494 2770940 45733321 18153770 775,986377
Totals20,748 1,0534,457 2473,139212 2,275129 1,271911,047 586313 1,263127 34,2631,930


Fuel


Issuing

Total inventory1

Month
Fuel Type Total    Permanent Total Non-
Total
Receiving UNRWAOther UN ADHOCInventory2 Issuing
Orgs
JanuarySolar3312,700 118,88554,53421,152 125,700320,271
Benzene10,000 18,375828208 019,411
FebruarySolar0 96,12535,77824,630 61,350217,883
Benzene0 19,9372,12655 022,118
MarchSolar198,200 103,91531,57025,917 56,350217,752
Benzene20,000 18,8422,511711 022,064
AprilSolar155,000 95,21518,98226,231 63,650204,078
Benzene20,000 17,3272,792896 021,015
MaySolar414,700 115,9312,73444,731 137,500300,896
Benzene57,500 18,7943,2352,049 024,078

1  Inventory: Fuel received for the use of UNRWA's regular programme (Health, Education and Social Services)

2  Non-Inventory: Fuel received for the use of UNRWA's Emergency Appeal programme and which is passed onto other organisations

3  Solar—diesel

2 June 2008





 
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