Norway disburses budget support to Palestine

“Norway is disbursing the whole amount of its budget support to Palestine for 2013 now because Palestinian public sector employees urgently need to be paid again,” said Minister of Foreign Affairs Espen Barth Eide. Norway’s support is helping to provide education, health services and security to the Palestinian people.

The budget support provided by Norway, which amounts to USD 43 million, will be used to build and run public institutions in Palestine. These funds are channelled through the World Bank, which ensures that they are used in accordance with the Palestinians’ own development and reform plans, as well as the World Bank’s strict requirements.

Norway chairs the Ad Hoc Liaison Committee (AHLC), which brings together the main donors and coordinates support to the Palestinian Authority. The AHLC will meet again in the middle of March to discuss the financial difficulties that the Palestinians are facing. Donors, the Palestinians and the Israelis must cooperate on effective measures.

“Palestine cannot remain dependent on support from donors for ever. However, a sustainable Palestinian economy cannot be achieved unless progress is made in the political negotiations on ending the occupation and unless the Palestinians gain control of their own resources.

“The current crisis means that it is particularly important that all donors provide substantial contributions in 2013, and I urge all donors to disburse their budget support as early in the year as possible,” said Mr Eide.