1.1 1994 - 2000 Performance

By the end of the second quarter of the year 2000, the donors committed US$ 4,601 millions (80.2 % of the cumulative pledges) to specific projects. However, cumulative disbursements at US$3,070 millions were about 66.7% of total committed funds and 54% of total pledged funds.

Yearly performance: The average of yearly total commitments for the period from 1994 to June 2000 was US$708 million, and the average yearly total disbursement for the said period was US$472 million.

[Figures = * 1000 USD]

1.1.1  Sectors Profiles

The Palestinian Development Plan, in general terms, identifies four main sectors for socio-economic development, developing the human and physical resources of the country and in more directed assistance to the private economy. These sectors are 1- Infrastructure and Natural Recourses Management 2- Institutional Capacity Building 3- Human Resources and Social Development 4- Productive Sector Development.

For the period from 1994-2000 to disbursed funds, the infrastructure development and natural resources management received US$ 1,055 million ( 34.3% of the total Disb.). A sum of US$ 858 million (27.9% of the total Disb.) was spent on human and social development. Institutional Building total disbursement was US$ 797million (25.9% of the total Disb.) and Productive Sector Development was US$ 299 million (9.7% of the total Disb.).

[Amount = * 1000 USD]

1.1.2  Individual Sub-Sectors Profiles.

For the period from 1994 to June 2000, donors have committed US$ 4,601 million to all development sub-sectors, out of which US$ 3,069 million were disbursed. The bulk of assistance was disbursed to the following subsectors :- 1- Institution Building US$ 566 million (18.4 % of the total Disb.), 2- Water and sanitaion US$ 428 million (13.9 % of the total Disb.), 3- Education US$ 347 million (11.3 % of the total Disb.), 4- Health US$ 251 million ( 8.1 % of the total Disb.) and 5- Infrastructure US$ 217 million (7 % of the total Disb.).

(Figures = *1000 US$)

1994-2000: The largest part of assistance was committed to the following five sub-sectors:- 1- Water & Sanitation US$825 million (17.9% of total comm.), 2- Institution Building US$656 million (14.2% of total comm.), 3-Education US$ 450 million (9.7% of total comm.), 4- Infrastructure US$ 366 million (7.9% of total comm.) and 5- Health US$ 359 million (7.8% of total comm.).

1.1.3 Individual Categories profile.

For the period from 1994 to June 2000, donors have committed US$ 4,601 million to all development categories. Over 60 % of total committed assistance was dedicated to Public Investment US$ 1,854 million(40.3% of total comm.) and Technical Assistance US$ 1,015 million(22% of total comm.).

The other three leading categories are:- 1- Budgetary Assistance US$ 500 million(10.8% of total comm.),2- Equipment US$ 410 million(8.9% of total comm.),and 3- Various US$ 301 million(7% of total comm.).

(Figures = 1000 US$)

The greater part (more than 50 per cent)of total disbursed assistance, were distributed on the following three categories:

1- Public Investment 1,148 million (37.4 % of total disb.)
2- Technical Assistance 561 million(18.2 % of total disb.)
3- Budgetary Assistance 475 million (15.4% of total disb.)

1.1.4 Type of Donation (LOANS & GRANTS)

1994-2000: Overall, approximately 82.2% of assistance committed is in the form of grants, with the remainder 17.8 % as consessional loans or guarantees. As of June 2000, $183 million of donor funds had been actually disbursed; of these disbursements, 21.8% ($40.3 M) were in the form grants, 78.2% ($142.7 M) loans.

1.1.5 Recipients (PNA and NGOs)

As of June 2000, 92.4% of the total donor committed assistance had been allocated to the PNAand the rest 7.4% were committed to the NGOs.
NGOs have actually recived US$ 349 million (80.2 % of its committed funds), where as the PNA have actually received US$ 2,788 million (90.8 %).

ANNEX 1

1.3 Definitions of Terms

1.3.1 Definitions of Donations Terms

Pledge:
It is an initial indication of Donors’ intention to provide financial Aid for Specified period. The announcements of Donors’ Pledges, normally, take place in the Consultative Group (CG) meetings and these pledges are not allocated to any specific program or project.

Commitment:
The total Donors’ financial obligations; funding that are allocated to specific program and/or project based on signed protocols, memoranda and agreements between the PNA and the donor country or agencies.

Disbursement:
The total amount of previously committed funds transferred (paid out) from donor’s headquarters to the implementing agencies or directly to the beneficiaries.

1.3.2 Definitions of Sub-Sectors

Agriculture:
Fishery, forestry, livestock, and agriculture production. Excludes food Processing

Children & Youth:
Projects that related to children & Youth

Democracy Development:
Legislative development and electoral activities.

Detainees / Returnees:
Training and rehabilitation programs.

Education:
Educational programs development, and schools construction.

Energy:
Projects related to electricity and power.

Environment:
Environmental laws, policies, and resources and projects, excludes solid waste.

Health:
Health care, clinics, hospitals and medical equipment.

Housing:
Housing projects, credits, mortgage facilities.

Human Rights & Civil Society:
Fortifying human rights, professional and civil society development.

Humanitarian Aid:
In kind assistance for humanitarian needs, for example, food and medical aid.

Industrial Development:
Assistance to the industrial sector development, Textiles, wood, and handicrafts.

Institution Building:
All institutional support and development, technical assistance (that is exclusive of being a project component), equipment supply, human resource management, and training and institutional scholarships. Excludes projects outside institutions.

Legal Affairs:
Judicial reforms, legal infrastructure development, harmonization of law, legal & regulatory frameworks, and arbitration.

Multiple Sectors:
Includes projects that relate to more than one sector, for example, World Bank ERP, MIDP or EHRP.

Police:
Technical assistance, equipment, and budget support for the Palestinian Authority Police.

Private Sector Development:
All kinds of support to industries, private business, small - scale enterprise development such as those through local banks. Excludes textile development, wood, and handicrafts.

Telecommunications:
Assistance given to promote the Telecommunication systems.

Tourism & Cultural Resources:
Touristic sites development and renovation , preservation and renovation of historical sights, and culture.

Transportation:
Harbor, airport, roads, and future train station.

Undefined:
Includes money that is not allocated to a specific sector.

Water and Sanitation:
All projects related to drinking water supply, wastewater treatment and sewerage systems.

Women:
All projects related to women and gender awareness development.

1.3.3 Categories Definitions

Employment Generation (EMG):
Funds allocated to create jobs for the Palestinian labor market through different employment generation programmes.

Equipment (EQ):
Funds allocated to purchasing equipment for the use of the PNA investment programmes and to assist the PNA in building their institution.

In Kind (IK):
Materials, Medicine, Food… etc. given as donations.

Private Sector Support (PSS):
Funds in the form of credit facilities used to support the private sector development.

Public Investment (PI):
All investments related to projects designated to be for Public; non-profitable projects outside the domain of private sector and NGO’s.

Technical Assistance (TA):
All training programmes for the development sectors and the foreign consultants activities are funded under this category.

Budgetary Assistance (BA):
Assistance given to the PNA’s budget such as Holst Funds contributions.

Various (VAR):
Funds allocated to NGO’s and/or to more than one of the pre-stated categories.

Abbreviations and Acronyms