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

December 27, 2010

  1. The Government of Japan has decided to extend Non-Project Grant Aid of 1 billion JPY (1,000,000,000YEN) to the Palestinian Interim Self-Government Authority (hereinafter referred to as “the Palestinian Authority”). Notes to this effect were exchanged on December 27 (Mon.) (the same day at local time) in Ramallah in the West Bank, between Mr. Hideaki Yamamoto, Deputy Representative of Japan to the Palestinian Authority, and H.E. Dr. Salam Fayyad, Prime Minister/Minister of Finance, Palestinian Authority.

  2. This grant aid aims at promotion of the economic and social development efforts by the Palestinian Authority, and the grant will be used for the purchase of necessary commodities in the Palestinian territories.

  3. The Palestinian economy remains in a serious condition, particularly due to a considerable decrease of employment opportunities for Palestinians as well as destructions of various social and economic infrastructure in the repeated collisions in the Palestinian territories since September 2000. In order to promote the Middle East peace process under these circumstances, it is imperative to work for the stability and the improvement of the Palestinian society and its civil life by supporting the efforts of the Palestinian Authority for social and economic development.

  4. Through this aid, it is expected that the serious financial conditions of the Palestinian Authority will be improved. Furthermore, Japan will be continuously making active efforts to promote political dialogues, confidence-building measures and the “Corridor for Peace and Prosperity” initiative in addition to providing assistance to the Palestinians toward the realization of co-existence and co-prosperity of Israelis and Palestinians through the two-state solution.

(Reference) The Palestinian territories cover a land area of 6,020 square kilometers and has a population of approximately 3.76 million people (2005). Its Gross National Income (GNI) per capita is about 1,230 USD (2006).