Washington, May 10, 2010 – The World Bank Managing Director Juan Jose Daboub signed today an agreement with the Ambassador of Kuwait in Washington H.E. Sheikh Salem Abdullah Al Jaber Al-Sabah to transfer US$50 million to the World Bank-administered multi-donor Trust Fund to support the ongoing Palestinian Reform and Development Program (PRDP). This amount is in addition to the $80 million that the State of Kuwait generously provided to the PRDP trust fund in August 2008.
These resources will help support the urgent budget needs of the Palestinian Authority (PA), providing inter alia support for education, health care and other vital social services for the Palestinian people and for the economic reforms currently underway.
“We are grateful to the State of Kuwait, for their generous contribution in support of the Palestinian Authority’s efforts for a better future for all Palestinians. World Bank is committed to continue the successful management of these funds entrusted to us, which will help the Palestinians advance on the reform path and create strong, efficient institutions, as main pillars of a modern future Palestinian state” said Mr. Daboub.
Ambassador Salem Al-Sabah highlighted the importance of ensuring basic services for the Palestinian people, while creating the basis of a sustainable Palestinian economy, leading to the creation of an independent and viable Palestinian state. He also expressed appreciation for the work of the World Bank in the West Bank and in Gaza.
The World Bank PRDP Trust Fund was established on April 10, 2008, when an agreement was signed between the World Bank and the Palestinian Authority during the 2008 World Bank-IMF Spring Meetings in the World Bank Headquarters. It is a central component of a World Bank effort to support the ongoing Palestinian Reform and Development Plan. The governments of Australia, Canada, Finland, France, Norway, Poland, and the UK have already contributed to this Fund. With the new contribution from Kuwait, the trust fund will reach US$499 million, of which approximately US$409 million have already been disbursed.
In addition, the World Bank has contributed $80 million of its own resources (through two Development Policy Grants) to support the budget of the Palestinian Authority.