New support for Palestinian municipalities in their emergency municipal response to the COVID19 crisis


In the presence of His Excellency the Prime Minister, Mohammad Shtayyeh, the Consul General of France in Jerusalem, René Troccaz, the Country Director of the French Agency for Development (AFD), Martin Parent, the Director of German Development Bank (KfW) Office Ramallah, David Kunze, and the Country Director of the World Bank, Kanthan Shankar, signed financing and projects agreements with the Palestinian Minister of Finance, Shukri Bishara, and the Minister of Local Government, M. Majdi Al Saleh, on 1 April 2021, to support the Palestinian response against the COVID19 pandemic at the local level.

The ceremony was attended by the German Deputy Representative, Michael Herold.

The project aims at bridging the financial gap of local government units and helps them keep essential services running, and provide jobs to households whose income has been adversely affected by the COVID-19 crisis. It is co-financed by the French Agency for Development (AFD), the German Development Bank (KfW), and the World Bank, for an overall amount of 44 million euros.

France provides 10.5 million euros, Germany 13 million Euros, and the World Bank 25 million US Dollars. The main objective of this additional financing, implemented by the Municipal Development and Lending Fund (MDLF), is to support Palestinian municipalities to maintain essential services and improve their resilience against the economic slowdown induced by the COVID pandemic 158 municipalities, serving 75% of the population of the West Bank and Gaza, will benefit from the program through the provision of emergency public goods, financing of recurrent expenditures, and labor-intensive public works that will provide employment opportunities in
various sectors, from waste management services to road maintenance. 9 500 short-term jobs
will be created.

Particular focus will be put on providing equal opportunities for men and women, by having women participate actively in the planning process under the Strategic Development and Investment Planning, and by providing dedicated job opportunities to women within the labor-intensive sub-projects.

The Consul General of France in Jerusalem, M. René Troccaz, underlined that “this initiative shows the ambition of France to work alongside European partners and multilateral institutions to support the Palestinian people in the fight against the pandemic and economic crisis”. He also added: “cooperation is key to bring shared solutions benefiting directly the population impacted by the crisis” and
underlined the key role of local government units in this regard.

The Deputy Head of Mission of the German Representative Office, Michael Herold, stressed that “this additional contribution is part of the German government’s efforts to support the Palestinian people in its fight against the COVID-19 pandemic and its negative effects on the economy.” He further said: “Germany has been a long-standing supporter especially for governance at the local level, We are
delighted to have our Palestinian partners as well as key donors such as France and the World Bank on
our side in this endeavor.”

Agence Française de Développement (AFD) Group finances, supports, and accelerates transitions towards a more resilient and sustainable world. Climate, biodiversity, peace, education, urban planning, health, governance, etc: our teams are active in more than 4,000 projects in the field, in the

French overseas departments and some 115 countries, including areas in crisis. We are thus contributing to the commitment of France and the French in favor of the Sustainable Development Goals (SDGs), towards a world in common.

KfW is Germany’s leading promotional bank, wholly owned by the German Government and the federal states. It is one of the major implementing agencies of German development cooperation.

On behalf of the German Federal Government KfW finances investments and advisory services in developing countries, typically with governmental institutions. KfW projects are aimed at sustainable economic development, social infrastructure, and environmental protection.

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