Tony Blair has met Palestinian Prime Minister Salam Fayyad and Israeli Minister of Defence Ehud Barak for the second time to discuss measures to revive the Palestinian economy and raise local living standards.

The meeting comes ahead of the Paris donor conference, to be held on 17th December, where Prime Minister Fayyad will present a three-year reform and development programme reflecting the Palestinian Authority vision for an independent Palestinian State.

During their meeting. Mr Blair, Mr Fayyad and Mr Barak noted the progress made in the implementation of the economic projects announced last month, although Mr Blair stressed that “continued progress in these projects requires the commitment of both sides to work together in solving the critical matters”.

He encouraged both Israelis and Palestinians to make the most of existing mechanisms, such as sectoral joint technical committees, between Israeli and Palestinian ministries to discuss day-to-day cooperation and build confidence between the two parties to further the economic development of the region.

During their trilateral meeting, the three men noted progress in a number of areas:

The materials needed to complete the first part of the North Gaza Emergency Sewage Treatment project have been given clearance by the Israeli authorities. This project will benefit the citizens of northern Gaza and will avoid a potential humanitarian and environmental catastrophe in the Beit Lahia area. In phase two, the Palestinian Water Authority will reissue the tender for private companies to start the construction work.

In the framework of the ‘Corridor for Peace and Prosperity’ further discussions have taken place between Israel, Jordan, the Palestinian Authority and Japan to remove difficulties to developing the agri-business sector in the Jordan Valley; and in particular make arrangements to facilitate exports to Jordan.

Field work is progressing to develop the Tarqumiya industrial zone in the area of Hebron with the support of the Turkish government. Progress is made to determine the actual location of the industrial park and detailed preparations by the private sector are ongoing for the development of the site.

On the Jenin industrial estate the detailed design of the industrial park is being done by the private sector after which the Palestinian Authority will be able to finalise the necessary preparations for the site. The German government has indicated an interest in supporting the development of the site infrastructure.
 
Tourism and occupancy figures in Bethlehem have increased significantly over the last months, although numbers remain low. Bilateral meetings between Palestinians and Israelis are ongoing to find practical solutions to revive the tourism sector before and after the upcoming Christmas period. This includes improving access to Bethlehem for tourists and facilitation of access for Palestinian tourist guides.

Mr Blair, Mr Barak and Mr Fayyad also expressed their support for the Municipal Development and Lending Fund that offers support to municipalities in order to deliver critical services, such as water and sanitation, electricity and road rehabilitation, to their populations. The Fund will finance recreational facilities for young people and families, such as playgrounds, urban green spaces and sports facilities. At the Paris Conference donors will be asked to meet funding requirements of $25 million for emergency projects and $79 million for development projects. The recreational facilities component will require an additional 3-year investment of $50 million. Several donor countries have already indicated an interest to support the MDLF in Paris.

The Facility for New Market Development will support Palestinian export of goods and services to Arab countries, Europe and North America by sharing the risk of investments in a restricted movement and access regime. It will support service providers such as logistics companies, hotels, tourism agencies, agri-businesses and industrial enterprises.The United Kingdom and the World Bank will provide initial funding for the Facility and additional funding will be sought at the Paris Conference.

Israel and the Palestinian Authority announced their intention to facilitate the construction of large-scale Palestinian housing projects, which will create thousands of housing units and offer major employment opportunities. The Palestinian private sector, in cooperation with the International Finance Corporation, is developing mortgage facilities to allow these projects to advance. The Palestinian Authority will request the international community to fund related infrastructure work at the Paris Conference.

Read more:

Blair reveals key projects for the Palestinian economy

Palestinian economic projects hailed as 'strong beginning'

Blair announces moves to give impetus to Palestinian economy

Picture copyright: Reuters