Exchange of Notes Concerning a Non-Project Grant Aid to the Palestinian Authority

October 29, 2008

  1. The Government of Japan has decided to extend non-project grant aid equivalent to 1.1 billion yen to the Palestinian Authority.  Notes were exchanged between Mr. Tetsushi Kondo, Head, Representative Office of Japan to the Palestinian Authority, and Dr. Salam Fayyad, Prime Minister/Minister of Finance of the Palestinian Authority on October 29 (Wed) in Ramallah in the West Bank of the Palestinian territories.
  2. The gist of the non-project grant aid is as follows:  
  3. (1) Content

     This grant aid is expected to contribute to the promotion of efforts which the Palestinian Authority has been making in order to improve the economic structure and alleviate the economic difficulties in the Palestinian territories.  The fund provided by the grant aid will be used to purchase necessary materials in the territories.  

    (2) Necessity

     (a) The economic situation in the Palestinian territories which is occupied by Israel has been extremely severe since September 2000 as shown in a serious decrease of the employment opportunities for the Palestinians, which was caused by continued Israeli restrictions on the movement of Palestinians and access as well as by the destruction of the various social and economic infrastructures due to the repeated military activities.   

     (b) The Government of Japan has decided to extend this grant aid, recognizing that the Palestinian Authority’s continued efforts to improve the living conditions of the Palestinian people even in this situation will support to promote the Middle East peace process.

    (3) Effects

     This grant aid is expected to ease the serious financial condition of the Palestinian Authority in some way and to contribute to the continuation of the social services needed by the Palestinian people.  In addition, as the Palestinian Authority is now making efforts to improve the public security by cracking down on extremists in its territories with a view to realizing peace through negotiations, the grant aid is also expected to support the Palestinian Authority from the sidelines to continue such peace efforts.