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EU and PA launch €22 million programme for private sector reconstruction in Gaza

21-07-2010

The EU and the Palestinian Authority have officially launched the €22 million ‘Private Sector Reconstruction in Gaza’ (PSRG) programme. This programme, established by the Palestinian Authority, is the first large-scale initiative in support of the private sector in the Gaza Strip. The launch took place during EU High Representative Catherine Ashton’s trip to the Gaza Strip.
 
The EU has contributed €4.8 million, as the first instalment to the programme, out of a total package of  €22 million. The PA established the PSRG programme in the aftermath of Operation Cast Lead, in order to revitalize the businesses affected by the fighting. The ultimate objective is to regenerate the economic activity in the Gaza Strip and provide for sustainable livelihoods for its people.
 
The project, with the support of the EU, targets businesses that need to restore any damaged assets necessary for production. Funded items include machinery, office furniture and equipment as well as building and business premise material.
 
Visiting two companies out of 203 beneficiary private sector enterprises in Gaza, Catherine Ashton said of the programme: “The EU is not only issuing statements but rather doing something practical on the ground to stimulate the business activity in the Gaza Strip. With my visit to the beneficiary businesses I want to stress the importance of the recovery of the private sector of Gaza and the revival of its economy.”
 
Her words were echoed by the European Union Representative, Mr. Christian Berger:  “The Private Sector Reconstruction in Gaza programme aims to stimulate economic activity in the Gaza Strip by enabling enterprises to resume economic activities and to enable the people of Gaza to emerge from aid dependency. This action will directly contribute towards providing new employment and will help to secure a source of income for currently unemployed and vulnerable workers.”
 
During her visit, Catherine Ashton also signed an agreement for an EU contribution of €2 million to support the UNRWA (The United Nations Relief and Works Agency for Palestine Refugees in the Near East) Summer Games – the largest ever youth initiative in Gaza, and to support UNRWA’s Enterprise Resource Planning.
 
Since 2007, the EU has provided total assistance to the Palestinian people, including civil society organisations and refugees, that average at more than €500 million annually. (ENPI Info Centre)
 
 
Summer Games press release