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USAID/West Bank and Gaza 

Operational Plan 

FY 2006 

June 12, 2006 
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Please Note: 

The attached RESULTS INFORMATION is from the FY 2006 Operational Plan and was assembled 

and analyzed by the country or USAID operating unit identified on the cover page. 

The Operational Plan is a "pre-decisional" USAID document and does not reflect results stemming 

from formal USAID review(s) of this document. 

Related document information can be obtained from: 

USAID Development Experience Clearinghouse 

8403 Colesville Road, Suite 210 

Silver Spring, MD 20910 

Telephone: (301) 562-0641 

Fax: (301) 588-7787 

Email: docorder@dec.cdie.org 

Internet: http://www.dec.org 

Portions released on or after July 1, 2006 
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Program Performance Summary FY 2005: Fiscal year 2005 has been an historic year of enormous 

changes in the conflict between Israelis and Palestinians. At the beginning of the year, Chairman Arafat 

was still in uncontested power, the second Intifada - which started in 2001 - continued to rage, Prime 

Minister Sharon’s unilateral Gaza disengagement plan was in doubt, and Palestinians remained inside 

borders controlled by Israel. By the end of the year, conventional analysts had been proven wrong in a 

number of areas. Yasser Arafat had passed from the scene, replaced by a freely and fairly elected 

President Mahmoud Abbas, there had been three rounds of free and fair municipal elections and one 

presidential election; the Intifada had sputtered to a close, and Israel had withdrawn its forces and 

settlements from Gaza and four Northern West Bank settlements. Early in FY 2006 the Palestinians 

gained control of the Rafah crossing from Gaza to Egypt (with significant technical help by USAID), an 

historical event. The 1.3 million Palestinians living Gaza as a result of the 1967 war found the political 

scene changed. Nonetheless, the conflict and mutual mistrust continues, along with the tight internal 

closures and severe internal border crossing restrictions. The security scene is manifested by cycles of 

sporadic terrorist acts and Israeli military incursions, interspersed with longer periods of calm. Mitigating 

and resolving this conflict remains one of the U.S. Government’s top foreign policy objectives, as laid out 

in the joint State-USAID strategic plan. 

USAID has been a critical player in the U.S. response to a rapidly evolving situation and changing political 

agenda. The bywords for the West Bank and Gaza Mission this year have been “flexibility” and “rapid 

response” to immediate foreign policy opportunities. Fortuitously, early in FY 2004, the Mission began 

development of its new strategic plan, which identified what would be required to establish a functional 

Palestinian state, including the transition from an authoritarian government to a more democratic one. 

U.S. foreign policy objective in this region (“two states, living side by side in peace and security”) was 

moved forward when USAID was able to respond quickly to the change in government that came with the 

election of President Abbas in January, 2005. Because of obstacles implementing programs during the 

Intifada, the Mission had a backlog of some $132 million of prior year Wye Supplemental obligations that 

USAID was able to immediately reprogram to respond to emerging U.S. political priorities. Forty-one 

million dollars went into a “Rapid Response Program” that was implemented in the first ninety days of 

President Abbas’s term demonstrating U.S. support to his new government. Some of the key 

accomplishments of this program were generating close to half a million person days of critical 

employment through local infrastructure activities improving family incomes; renovating /constructing over 

700 educational facilities benefiting over 6,000 Palestinian children; and 6,000 loans totaling 

approximately $9 million made to women entrepreneurs improving family incomes. When President Bush 

announced a $20 million cash transfer in early FY 2005, USAID was able to reprogram its funds within 

days, and to provide the Palestinian Authority (PA) with funds to meet urgent utility bills owed to Israel, 

averting a fiscal collapse immediately prior to the January 2005 Presidential elections. This was repeated 

again in mid FY 2005 when President Bush authorized a second cash transfer for $50 million to the PA 

for Gaza reconstruction requiring USAID to rapidly reprogram Wye resources to maintain support for ongoing USAID activities. 

Simultaneously with the implementation of the Rapid Response Plan, USAID recognized that additional 

resources were required if the needs of an emergent democracy were to be met. Working closely with the 

State Department, National Security Council, and Congress, USAID spearheaded a request for a 

supplemental appropriation of $200 million that would be used to address Palestinians' critical needs. 

Some of the most important initiatives started were improving border crossing movement of people and 

goods; job creation; restoring exports to support revitalization of the economy; constructing major water 

and wastewater facilities; and supporting democracy and security reform. The injection of additional 

resources into many of our activities have allowed them to exceed their targets. 

Recognizing that the Mission required additional "rapid reaction" capability to meet the needs of the first 

Palestinian political transition, support was recruited from the Office of Transition Initiatives. In 2005, $9 

million was reprogrammed and transferred to OTI enabling OTI to award a number of grants for 

immediate and critical support to the PA to enhance their communication and outreach program. To 

further increase Palestinians' awareness of the substantial assistance Americans provide to the 

Palestinian people, USAID launched an aggressive public outreach program. Concerned that only 5% of 

Palestinians knew of U.S. assistance being provided by USAID, we conducted a media campaign in the 
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Palestinian press during April and May. By the end of the campaign, research results demonstrated that 

50% believed the American people contribute to Palestinian development. Sixty-one percent of those 

polled also said that their perception of the United States had changed directly as a result of the 

campaign. 

But by far, the activities of which the Mission is most proud are those crucial interventions (with the 

American Embassy in Tel Aviv and the Consulate General in Jerusalem) that allowed key political 

agreements to be reached. Certainly, the transfer of greenhouses from Israeli settlers would not have 

happened without consistent USAID support which ranged from engaging constructively with the settlers 

and politicians, surveying the assets, and providing marketing and equipment assistance in making them 

operational. Similarly, while Secretary Rice’s intervention was required to complete the agreement to 

open the Rafah crossing, it was built in part on the good will that USAID has established, and has been 

implemented by USAID's working behind the scenes to make sure that all technical equipment, multiparty coordination, and data-sharing impediments could be put in place. Implementation of this 

agreement should serve as a precedent for future agreements and cooperation between Palestinian and 

Israeli officials (including third party roles) and an opportunity to move to the next level focusing on 

investments and development. Special Envoy James Wolfensohn’s and Security Advisor General Ward’s 

involvement in close collaboration with USAID in advancing the peace process together cannot be 

overstated. 

Significant accomplishments have been made despite the fact that access to Gaza for USAID, 

contractors, non-governmental organizations (NGO) and international organizations has remained difficult 

and dangerous. During the period, it has often been nearly impossible for ordinary Palestinians to cross 

these borders, and the area between the Israeli and Palestinian checkpoints is often dangerous. For the 

United States Government, movement of U.S. diplomatic vehicles, U.S. diplomats, and non-Gazan 

Foreign Service Nationals, Personal Services Contractors, and U.S.-funded expatriates are currently 

banned by the U.S. Embassy U.S. Consulate General. The donor community has had multiple meetings 

with the Government of Israel concerning these restrictions, but challenges to movement remain. 

Looking forward, much work remains to be done. While the PA made important progress, it still needs to 

take more effective actions against those groups that embrace and carry out violent actions. The PA also 

needs to create more stability and a more reliable security service, curb corruption, and deliver better 

basic human services. During the five rounds of elections this past year, competition between Fatah and 

Hamas has been very high, with Hamas winning control of about a third of all municipalities. There will be 

one more round of local elections expected in March 2006, but observers’ main attention will be on 

parliamentary elections scheduled for January 25, 2006. It is likely that ‘politically extreme’ organizations 

will remain a relevant force both at the municipal level and as a significant opposition party in the 

legislature. The PA is also facing its own fiscal crisis, failing to contain wages and losing budgetary 

control. This caused the PA not to receive a final planned tranche disbursement from the World Bank, 

further exacerbating the PA's current fiscal crisis just prior to upcoming Parliamentary elections. 

Developing a revenue generating strategy and a fiscal stabilization plan, strengthening Palestinian 

security, and implementing appropriate enabling legislation are high priorities that the newly elected 

Palestinian leaders must focus upon. 

Key SO Performance: 

SO 1 Private Sector Development - USAID’s overall performance in private enterprise development 

exceeded its targets, partly due to increased resources being added to the microfinance portfolio. The 

microfinance activities extended more than 6,000 loans totaling over $8.9 million to Palestinian women 

entrepreneurs; supported a local microfinance institution (FATEN) to become more financially 

sustainable; and contributed to disbursement of over $6 million in home improvement loans. The 

Palestinian Enterprise Reform activity facilitated over $12 million in commercial business-to-business 

transactions, exceeding its target. Paltrade, a USAID supported NGO promoting Palestinian Exports, 

also exceeded its targets by $3 million by achieving sales of $30 million in selected sectors. USAID also 

launched the Palestinian Agribusiness Partnership Activity in April 2005 and by September, had 

succeeded with the Quartet Special Envoy able to facilitate the transfer of over 1,000 acres of 

greenhouses in the formerly Israeli occupied area of Gush Katif. The successful transfer of these assets 
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to the PA, which could have been destroyed during Gaza disengagement, sustained 3,000 jobs and will 

generate tens of millions of dollars in export revenues. 

SO 2 Water Resource Development - USAID continued to increase water supplies to the southern West 

Bank by completing the drilling and equipping of three additional major production wells in the Bani Naim 

and Beit Sahur areas of Bethlehem and Hebron. These new wells are producing 2.8 million cubic meters 

of water per year (6850m3/day) and benefit 605,000 Palestinians living in the southern area of the West 

Bank. USAID completed construction of 10 miles of water transmission lines to Bani Naim and Yatta, 

including two large booster pump stations. Construction of this pipeline was completed five months 

ahead of schedule and generated 50,000 person-days of local employment. Once pressure testing of the 

pipeline is completed in FY2006, the pipeline is expected to deliver drinking water to 80,000 Yatta region 

citizens, eliminating their need for water from other sources. With parallel financing from the European 

Union, these production wells will further service 12 more villages where 20,000 people live in southern 

Yatta. USAID recently awarded a contract for the construction of an emergency water pipeline to connect 

the eastern section of Gaza City to the Israeli National Water Carrier distribution network. When this 

pipeline is completed in early January 2006, it will provide up to 5 million cubic meters of drinking water 

per year (13,700 m3/day) to as many as 150,000 residents of Gaza who are currently without any water 

services at all. Local Palestinian construction and engineering firms are carrying out this pipeline's 

construction through which the project is expected to generate 30,000 person-days of local employment. 

SO 3 Building Key Democratic Institutions - USAID worked successfully to support democracy despite 

working in a very volatile and demanding environment. Palestinian elections at all major levels of 

governance - Presidential, parliamentary, and local - dominated the political agenda throughout 2005. 

The fraying of centralized political power under PA Chairman Arafat accelerated after his demise. With 

the election of Mahmoud Abbas to the PA Presidency in January 2005, subsequent municipal democratic 

elections provided an opportunity for Palestinians to renew their political dialogue, chart a new strategic 

course vis-à-vis Israel and the international community, and broaden the political landscape to include 

new actors and participants. USAID assistance for elections at all levels informed and engaged citizens in 

the democratic process, improved the quality of electoral administration, raised the performance of 

democratic candidates (including women), and increased public and international confidence in the 

legitimacy of the political process. To support the administration of Presidential, local, and parliamentary 

elections, USAID provided technical and in-kind assistance through IFES (formerly the International 

Foundation for Electoral Systems) to the Central Elections Commission (CEC) and the Higher 

Commission for Local Elections (HCLE). USAID’s support for the CEC’s media centers during the 

January 2005 Presidential elections enabled the Commission to publicize results and other electionrelated information swiftly and professionally; this, in turn, better informed Palestinian citizenry and 

contributed to generally favorable domestic and international perceptions of the legitimacy of the electoral 

process. USAID support to five Palestinian law schools has resulted in a better instruction and legal 

education for their students, and both law professors and law students are advocates for legal and judicial 

reform. USAID provided specialized training for judges and public prosecutors in the West Bank and 

Gaza in topics ranging from labor law, traffic law, civil and criminal procedures, to ethics and professional 

responsibility. 

SO 5 Higher Education and Training - USAID also met its education targets. More than 60 individuals 

received Information Technology (IT) training and more than 80% of all scholars who have completed 

graduate studies are now working in the region in their area of specialty. In addition, USAID financed 57 

university scholars through the Presidential Scholars Program, 32 of whom were women. The Academy 

for Education Development concluded a three year short-term training program in IT, providing continuing 

education for 261 IT professionals to keep them up-to-date on evolving market needs. Of the 261 

trainees, 158 participants from the West Bank and Gaza completed the entire certification program and 

job placement services were offered to unemployed participants. Job placement success rates were 

high, with private sector firms hiring 40 of the 58 job-seekers. USAID recently provided financing for a 

total of 750 scholarships for students studying in Vocational Colleges. The program covered two 

semesters of study in a wide range of technical fields. In exchange for scholarships, participants are 

required to engage in 30 hours of community service at educational institutions of their choice. 
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SO 7 Family Health - USAID programs have continued to provide essential support to improve and 

sustain performance in the health system in the West Bank and Gaza. USAID priorities focused on 

improving the quality of maternal and child health and nutrition services while being flexible and 

responsive to the critical humanitarian needs of the Palestinian people. USAID continues to be a main 

donor providing essential technical assistance and commodities, without which Palestinian public and 

non-governmental health and humanitarian assistance organizations would be unable to meet the needs 

of their service populations. USAID helped create a network of 274 local trainers who, in turn, helped 

update the technical knowledge and skills of over 1500 Palestinian health care providers. Seventy-nine 

health facilities, with an estimated service population of 540,000 women and children under age 5 

benefited from assistance and material support to help improve the quality of maternal and child health 

care. USAID procured and distributed $2.2 million of medical equipment, supplies, and pharmaceuticals 

to public and non-governmental health facilities which provide primary health care services. Over 

128,000 Palestinian children completed counseling and rehabilitation sessions to strengthen coping skills 

and increase emotional resiliency in the face on on-going tension and violent conflict. Approximately 

800,000 of the poorest and most vulnerable persons (outside of refugee camps) benefited from food 

distribution programs supported by USAID. 

 

SO 8 Community Services - Another area in which USAID performance exceed expectations is in its 

Community Services Program, which supported job creation through the Job Opportunities through Basic 

Services Program (JOBS) and the Palestinian Infrastructure for Needed Employment program (PINE). 

Both projects created critical employment opportunities and met basic infrastructure needs. JOBS and 

PINE used local labor and materials, generating 310,644 person-days of employment, and 

constructed/renovated more than 1,210,000 square feet of school playgrounds, 745 toilet units, 48 water 

catchments, 16 kindergartens, and nearly 9,000,000 square feet of school fences, retaining walls, 

shades, and sidewalks. In total, project implementers estimate that JOBS and PINE benefited a minimum 

of 80,000 Palestinians across the West Bank and Gaza through employment, improved schools, parks, 

and water and sanitation infrastructure. 

Gender: Gender concerns are integrated into USAID’s activities discussed in the AR which promote and 

expand women’s participation in the electoral process, access to lending facilities, recipients of 

scholarships and training, and major beneficiaries from improved social and economic infrastructure 

improving their livelihoods. 
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FY 2006 Program 

SO: 294-001 Expanded Private Sector Economic Opportunities 

Improve Private Sector Competitiveness 

Increase Trade and Investment 

Increase Trade and Investment: 

Strengthen The Financial Services Sector & Increase Access to Capital 

FY 2006 Program 

SO: 294-009 Program Support Objective 

Program Support 

Program Support Objective (PSO) ($7,789,000 ESF; $3,177,000 ESF Prior Year Unobligated) 

The PSO is expected to manage $5 million in support of other USAID objectives. This support includes 

$720,000 for Public Outreach activities, $2,885,000 for staff salaries in essential support offices such as 

Financial Management, the Office of Assistance and Acquisition, and the Program Office. Five million 

dollars also includes nearly $1,184,000 in meeting Mission program overhead requirements, such as 

ICASS and office rental, as well as security contract and vehicle replacement. USAID Public Outreach 

Office will continue to produce billboard, radio, and television ads, but will shift its attention in FY 2006 

from increasing the Palestinian public's general awareness of USAID objectives to marketing specific 

program successes and the benefits that real program beneficiaries now enjoy from US foreign 

assistance. USAID will also increase community-based outreach efforts by engaging in activities, such as 

town hall meetings and community events, and expanding the Good Will Ambassador program. A former 

Israeli-Arab football star will continue to teach the highly successful “coaching for coaches” courses this 

year. This program has generated a significant amount of positive press for USAID in the West Bank and 

Gaza. USAID will also search for a female Good Will Ambassador in order to more effectively reach the 

female Palestinian population. In addition, USAID plans to improve its main website, including the Arabic 

website, and begin production of video materials, including video news releases for distribution to the 

Arab media. 

In order to provide essential support for increased security costs, staffing increases, office space and 

other related expenses and to provide better monitoring of USAID activities, including two cash transfers 

made to the Palestinian Authority, the PSO will transfer up to $2 million to USAID/West Bank and Gaza's 

operating expense account to cover increased expenses related to strengthening program management 

and oversight. This was authorized in FY 2006 legislation allowing USAID/West Bank and Gaza mission 

to convert $2 million in program funding to meet necessary administrative expenses. In addition, the PSO 

will transfer one million dollars to the Office of Inspector General to finance USAID/West Bank Gaza 

audits in FY 2006. An additional data assessment will also be conducted to ensure and strengthen the 

operational integrity of USAID's GIS system. 

FY 2007 Program 

SO: 294-009 Program Support Objective 

Program Support 

Program Support Objective (PSO) ($5,635,000 ESF) 

FY 2007 Program Support requirements are expected to be similar to those necessary during FY 2006. 

USAID will continue assisting with the expediting border crossing documents as well as international 
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customs clearance. USAID will also continue to expand existing public outreach activities in FY 2007. In 

order to ensure that messages are appropriate and that outreach efforts are reaching the full range of 

Palestinian citizens, USAID will continually evaluate this program though focus groups and public opinion 

surveys. USAID will then adjust its outreach program based on these results. 

FY 2006 Program 

SO: 294-010 Promote Economic Stability 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness: ($4,544,000 ESF; $1,306,000 ESF Prior Year Unobligated). 

The new Palestinian Enterprise Development (PED) activity will provide technical assistance and grant 

support to Palestinian business associations, chambers of commerce, and trade and industry 

associations to improve their business services and institutional sustainability. PED will conduct: 1) a 

baseline survey of six industries, 2) an assessment of six private sector support institutions, 3) a 

diagnostic survey of the legal and regulatory environment addressing critical regulatory gaps and policy 

reforms required to improve business development and investments, and 4) finalize a business 

development services (BDS) strategy. This BDS strategy should define key service areas for growth and 

development, and new employment opportunities. In order to improve competitiveness within key 

business sectors, PED will be implemented using an industrial cluster approach integrating key business 

services and manufacturing firms. USAID will also support an assessment and a lessons learned study 

from the Palestine Information and Communication Technology Incubator activity. Principal contractor: 

Development Alternatives Inc. (DAI) and TBD. 

Increase Trade and Investment 

Increase Trade and Investment ($6,900,000 ESF; $6,000,000 ESF Prior Year Unobligated). The 

Palestinian Agribusiness Partnership Activity (PAPA) will provide TA and training to the Palestinian 

Economic Development Cooperation (PEDCO) staff in areas which further enhance greenhouse 

management. PAPA will provide training in the packing and transporting of agricultural products from 

Gaza and the West Bank to external markets in order to sustain and create new jobs. PAPA will also 

provide grant support and critical consulting services to approximately six to ten partners in the West 

Bank and Gaza agricultural sector. TA will be provided on product certification and labeling for regional 

high value niche export markets. USAID will provide resource support to Special Envoy Jim Wolfenhson 

team to support continue work in supporting the peace process and economic reconstruction efforts. 

USAID will provide resources to the Office of Technical Assistance (OTA), Department of Treasury for 

technical and training assistance to the Ministry of Finance to establish a financial intelligent unit and 

support fiscal/budgetary management training. USAID will provide resources to the Overseas Private 

Investment Corporation (OPIC) to establish a loan guarantee program to encourage greater flows of 

capital to support economy recovery and employment creation. USAID will provide resources to the U.S. 

Custom and Border Protection Agency (CBPA) to perform an assessment to examine the current 

border/custom environment, assess the flow of goods and people across selected border crossings, 

technology being used, and recommend measures to improve PA customs' management. Principal 

contractor: Carana Corporation, OPIC, CBPA. 

Strengthen The Financial Services Sector & Increase Access to Capital 

Strengthen The Financial Services Sector & Increase Access to Capital: ($3,000,000 ESF; $6,250,000 

ESF Prior Year Unobligated). The Support for Economic Institutions and Reform activity will strengthen 

the Palestinian Authority's (PA) external audit function and provide focused assistance to the PA in fiscal 

policy, budget, and asset management. Technical assistance and computer equipment and software will 

be provided to the Financial Follow-up Unit (FFU) in the Palestinian Monetary Authority to combat antimoney laundering activities. Training assistance will be provided to the FFU staff and other Palestinian 

officials working with audit, budgetary and related fiscal policy issues. USAID will assess the microfinance 
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sector to identify new areas where USAID’s support can be expanded to increase access to finance by 

low incomes families. Principle contractors: TBD. 

FY 2007 Program 

SO: 294-010 Promote Economic Stability 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($6,520,000 ESF). Through the PED activity, technical 

assistance will be provided to Palestinian business leaders and other key stakeholders working on 

industry cluster development in key sectors of the economy. USAID will continue to provide financial 

support to private sector pioneer institutions through PED such as Paltrade, Palestinian Federation of 

Industries and Chambers of Commerce to continue their service support to local business firms. 

Increase Trade and Investment 

Increase Trade and Investment ($16,930,000 ESF). The PAPA activity will continue to provide technical 

and training assistance and grant support to the agribusiness sector in the West Bank and Gaza to 

enhance agricultural production and marketing of high value market produce to regional and global 

markets. Technical assistance will focus on reducing transaction costs for the transportation and 

marketing of high value commodities. TA will assist PEDCO and other agribusinesses improve product 

certification and labeling to penetrate high value niche markets that increase agricultural exports from the 

West Bank and Gaza to regional markets. 

Strengthen The Financial Services Sector & Increase Access to Capital 

Strengthen The Financial Services Sector & Increase Access to Capital ($2,500,000 ESF). USAID will 

launch a new activity that will strengthen financial markets and expand micro enterprise and small 

business access to financial resources to increase their productivity and expand employment and income 

generation opportunities. Also, this new activity will address the micro financial and small business policy 

and regulatory environment, and strengthen local financial institutions' capacity to expand their service to 

new businesses and micro enterprises. Principle contractor: TBD. 

FY 2006 Program 

SO: 294-011 Promote Democratic Reform 

Strengthen Civil Society 

Strengthen Civil Society ($5,800,000 ESF). USAID will launch a new civil society activity, which will 

support Palestinian domestic efforts to promote democratic reform through non-governmental oversight 

and advocacy at the national and local levels. USAID will initiate a major new media and communications 

program with two primary components: a thrust to improve the PA’s capabilities to communicate reform 

messages and priorities to the Palestinian people; and improve the professional capabilities of Palestinian 

media. Principal Contractor: TBD 

Strengthen the Justice Sector 

Strengthen the Justice Sector ($19,728,000 ESF; $2,592,000 ESF Prior Year Unobligated). USAID will 

assist the Ministry of Justice (MOJ) implement a strategic plan for justice sector development. To improve 

communication capabilities, assistance will be used to network the Ministry’s three separate offices using 

Information Technology equipment and software. USAID will build capabilities in the area of court 

administration. Specifically, USAID assistance will focus on reengineering the notification process by 

introducing modern mechanisms for delivering summons and other court documents, training court 
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processors, and improving professional skills. USAID will support the Ministry of Interior and the MOJ to 

improve the judicial enforcement environment by improving the security of courthouses and offices of the 

public prosecution. USAID will provide training and equipment for individuals charged with executing court 

decisions, and will work with administrative enforcement units to develop new systems for judicial 

enforcement. 

USAID will support an internships program and improve the institutional capacity of the Palestinian Bar 

Association (PBA) by introducing a bar exam, and ensuring that the necessary legislation changes are 

implemented. USAID will support new sectors of the legal community towards broader involvement in 

rule of law development; the Continuing Legal Education (CLE) activity. USAID will continue supporting 

civil society alliances and initiatives to promote an independent, effective judiciary. USAID will support 

exchange programs between Palestinian and international law professors and support a program to 

improve the skills of legal professionals 

USAID will continue to provide specialized high-level training for judges and public prosecutors in topics 

ranging from election appeals, corruption, land law, intellectual property to juvenile justice and office 

management. The activity will implement a judicial exchange program between Palestinian judges and 

those from neighboring countries to exchange experience and best practices. USAID will continue its 

support for security sector reform and community police. USAID plans to provide an initial $8 million 

through a 632(a) transfer to the State Department to support non-lethal training, construction, and 

equipment to enhance PA security and reform. An additional $10 million can be made available via 

632(a) transfer to the State Department for this purpose provided that FY 2003 - FY 2006 deobligated 

funds are returned to USAID/West Bank and Gaza. USAID will strengthen civilian management and 

oversight of the security sector by improving the institutional capacity of the Ministry of Interior. USAID will 

support activities in municipalities which increase public confidence in the performance of the civil police. 

USAID will provide resources to the Office of Transitional Initiatives to support community based 

reconciliation activities, media and press, and support the peace process including public campaigns and 

security. Principal Contractor: TBD 

Strengthen the Legislative Function/Legal Framework 

Strengthen the Legislative Function/Legal Framework ($4,622,000 ESF; $138,000 ESF Prior Year 

Unobligated). USAID will continue to strengthen the PLC and the legislative community, involving civil 

society and media organizations more broadly, and expanding the executive branch's capacity to 

formulate policy and propose legislation. USAID will launch a new multi-year program to strengthen and 

build the capacities of democratic political parties to function more effectively in the post-electoral 

environment. Principal Contractor: Development Alternatives Inc., and TBD 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government & Decentralization ($7,000,000 ESF). USAID’s local government 

program will assist the Ministry of Local Government (MoLG) and other PA institutions develop and 

implement a common agenda for local government reform. USAID will strengthen planning processes 

between Palestinian central and local authorities. At the local level, USAID will implement local 

government infrastructure and capacity-building activities in at least 50 communities in the West Bank 

and Gaza, improving the quality of governance and service delivery. USAID will target medium sized 

municipalities and joint services councils to be selected according to specific criteria approved by USAID. 

Principle contractor: Community Habitat Finance (CHF), and TBD. 

FY 2007 Program 

SO: 294-011 Promote Democratic Reform 

Strengthen Civil Society 
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Strengthen Civil Society ($6,000,000 ESF). USAID will continue its programs launched in FY06 to 

support Palestinian civil society development and the media and communications effort. 

Strengthen the Justice Sector 

Strengthen the Justice Sector ($6,917,000 ESF). USAID will continue its support for the Ministry of 

Justice by assisting in the development of operations manuals, ensuring the automation of all MOJ 

offices, and providing support for the implemention of new management systems. USAID will also 

support PBA efforts to implement the bar exam, finance the law faculty exchange program, and assist 

with civil society-professional coalitions for judicial reform. Principle contractor: TBD 

Strengthen the Legislative Function/Legal Framework 

Strengthen the Legislative Function/Legal Framework ($2,033,000 ESF). USAID will continue to support 

the legislative process, including institutional strengthening support to the PLC. Additionally, USAID will 

maintain its support for the democratic political party development program. 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government & Decentralization ($10,550,000 ESF). USAID will support the 

MOLG and other ministries’ efforts to amend the enabling environment for local governance and support 

efforts to implement its strategy to consolidate local government units. USAID will support local 

governance reform and improve service delivery efforts in approximately 50 municipalities. Principle 

contractor: TBD 

FY 2006 Program 

SO: 294-012 Improved Performance in the Health System 

Address Other Health Vulnerabilities 

Address Other Health Vulnerabilities ($1,052,000 ESF; $1,720,000 ESF Prior Year Unobligated). 

USAID will strengthen the effectiveness and transparency of Palestinian governance in the health sector 

by providing technical assistance and support to improve local capacity to plan, finance, implement, and 

improve the quality of key public health and clinical services. Technical assistance needs include health 

policy and strategic planning, health care financing, health security, health data and census information, 

and/or epidemiologic management of diseases such as avian flu. USAID will provide computers, 

equipment, and other supplies to the Palestinian Central Bureau of Statistics to support health census 

and data analysis. Principle grantee: TBD. 

Improve Child Survival, Health & Nutrition 

Improve Child Survival, Health & Nutrition ($2,990,000 ESF; $2,591,000 Prior Year Unobligated). The 

Hanan activity will provide technical assistance, training, equipment, and materials to improve the quality 

of clinical services in child health and nutrition, with an emphasis on better newborn care, improved 

management of childhood illnesses, and birth spacing. The Hadassah activity provides advanced clinical 

training opportunities and continuing education workshops related to pediatric specialties for selected 

Palestinian health care providers. Hadassah will provide advanced pediatric care for eligible Palestinian 

patients from the West Bank and Gaza. The principle grantees: John Snow International (JSI) and 

Hadassah the Women’s Zionist Organization of America. 

Improve Maternal Health & Nutrition 
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Improve Maternal Health & Nutrition ($2,030,000 ESF; $1,680,000 ESF Prior Year Unobligated). The 

Hanan activity will provide TA, training, equipment, supplies, and commodities to improve the quality of 

clinic services in maternal health and nutrition, with an emphasis on timely prenatal care, safe delivery, 

and improved post-partum care. Hanan will support community mobilization activities to help Palestinians 

become more active partners for improving maternal health outcomes. The activity provides technical 

assistance and training to improve clinical management systems which support quality service delivery. 

The principal grantees: JSI and Hadassah the Women’s Zionist Organization of America. 

Protect and Increase Food Security of Vulnerable Populations 

Protect and Increase Food Security of Vulnerable Populations ($1,234,000 ESF; $450,000 ESF Prior 

Year Unobligated). USAID will continue to assist Palestinian institutions in strengthening their policies 

and programs regarding food fortification, micronutrient deficiencies, and other nutritional issues. This 

includes activities such as supplementation support and strengthening national guidelines, national 

awareness campaigns, nutrition data and quality control systems. USAID will continue its support for the 

procurement of essential foodstuffs such as fortified wheat flour and cooking oil benefiting vulnerable nonrefugee and food insecure families. Principle grantees: World Health Organization, World Food Program, 

and the Academy for Educational Development. 

Provide Emergency Assistance 

Provide Emergency Assistance ($4,594,000 ESF). USAID will continue to improve Palestinian capacity 

to meet emergency medical needs. Activities to be supported include training in the rational use of 

medicines and in occupational/physical therapy, technical assistance in health commodity management, 

and the procurement of essential medical equipment, supplies, and pharmaceuticals. USAID will provide 

sub-grants to maintain and strengthen the operational capacity of local rehabilitation and primary health 

care organizations. Principle grantee: CARE. 

FY 2007 Program 

SO: 294-012 Improved Performance in the Health System 

Address Other Health Vulnerabilities 

Address Other Health Vulnerabilities ($2,455,000 ESF). USAID will continue to strengthen Palestinian 

governance in the health sector by providing TA and support to improve local leadership and 

implementation capacity. Principle grantee: TBD. 

Improve Child Survival, Health & Nutrition 

Improve Child Survival, Health & Nutrition ($4,370,000 ESF). USAID support for child health and 

nutrition services will be needed to consolidate progress achieved under the Maram and Hanan activities. 

Support includes TA, procurement of equipment, supplies, and commodities, professional training, and 

community mobilization. Principle grantee: JSI and others TBD. 

Improve Maternal Health & Nutrition 

Improve Maternal Health & Nutrition ($3,085,000 ESF). USAID will provide support for maternal health 

and nutrition services to consolidate progress achieved under the Maram and Hanan activities. Support 

includes TA, procurement of equipment, supplies, and commodities, professional training, and community 

mobilization. Principle grantee: JSI and others TBD. 
13

Protect and Increase Food Security of Vulnerable Populations 

Protect and Increase Food Security of Vulnerable Populations ($2,050,000 ESF). USAID will continue to 

support the procurement of essential foodstuff to benefit vulnerable non-refugee and food insecure 

families. Principle grantee: TBD. 

Provide Emergency Assistance 

Provide Emergency Assistance ($3,040,000 ESF). USAID will address meeting urgent/emergent medical 

needs through activities such as the procurement of essential medical equipment, supplies, and 

pharmaceuticals, plus sub-grants which maintain and strengthen the operational capacity of local 

rehabilitation and primary health care organizations. Principle Grantee: TBD. 

FY 2006 Program 

SO: 294-013 Enhanced Palestinian Human Capital 

Improve Quality of Workforce through Vocational/Technical Education 

Improve Quality of Workforce through Vocational/Technical Education ($9,150,000 ESF; $3,084,000 ESF 

Prior Year Unobligated). USAID will implement a new program in the area of vocational and technical 

education aimed at improving the relevance and quality of vocational and technical training linked to local 

and regional market needs targeted towards youth. USAID technical assistance and support will focus on 

improving the quality of teaching and learning at vocational and technical institutions providing new 

technology and learning approaches to improve the learning environment. Vocational instructors will be 

selected to receive targeted training abroad. USAID will assist the Ministry of Education expand 

vocational enrollment, improve the curriculum to better meet changing market needs, and develop a 

strategy to broaden private sector participation in improving vocational training and employment 

opportunities. Principal grantee: TBD. 

The Palestinian Youth Empowerment Program implemented through USAID’s new Ruwwad activity, aims 

to achieve greater social stability by providing opportunities and empowering youth to become 

constructively engaged in civil society, economic development, and family and community life. Technical 

assistance and resource support working with local NGOs, communities, and the local government to 

enhance the human, social and leadership capacities of at least 5,000 youth leaders aged 14-24, and 

create a sustainable supportive environment for youth development for at least 100,000 young people. 

Key activity interventions include establishing service learning in higher education programs and youth 

recreation programs, working with the private sector to develop internship and apprenticeship programs 

and identifying the development of recreational area projects and secondary school civic service 

programs. Principle grantee: Education Development Center (EDC). 

Increase Capacity of Higher Education to Contribute to Development 

Increase Capacity of Higher Education to Contribute to Development ($2,600,000 ESF). The Palestinian 

Faculty Development Program (PFDP) activity will provide training and resource support to build the 

capacity of Palestinian higher education institutions through providing opportunities for faculty 

development. PFDP will provide training opportunities to 25 faculty members at Palestinian universities 

to pursue doctoral degrees in the United States. In addition, 45 instructors will have the opportunity to 

upgrade their knowledge in their fields of expertise through short term training and technical assistance at 

selected American universities. Principal grantee: AMIDEAST. 

USAID will support a Global Development Alliance with a Palestinian higher educational institution to 

leverage private resources to support a Sesame Workshop series to serve as a catalyst for positive 

change by promoting children’s sense of their identity and build local capacity to sustain children’s 
14

educational media. 

FY 2007 Program 

SO: 294-013 Enhanced Palestinian Human Capital 

Improve Quality of Workforce through Vocational/Technical Education 

Improve Quality of Workforce through Vocational/Technical Education ($14,561,000 ESF). USAID will 

continue providing technical assist and support for activities aimed at improving the relevancy and quality 

of vocational training. USAID will focus on developing a market oriented curricula, providing equipment 

and technology relevant to meet markets needs and offering new training opportunities for instructors. 

USAID will continue to support the Ruwwad activity and interventions by enabling youth to learn to make 

more constructive and rewarding, employment and recreational opportunities. USAID support will 

continue to build youth leadership skills through local community activities. Principal grantee: EDC. 

Increase Capacity of Higher Education to Contribute to Development 

Increase Capacity of Higher Education to Contribute to Development ($13,089,000 ESF). USAID will 

continue to build capacity in the Ministry of Education, and selected university faculties, providing 

educational resources. USAID will also finance the implementation of a Higher Education Management 

Information System. Additional training opportunities for selected faculty members and professionals to 

study abroad will be identified and supported. Principal contractors: TBD 

 

The Palestinian Faculty Development Program activity will continue to develop faculty skills and technical 

capacities at 11 Palestinian universities by offering scholarships to students wishint to attend American 

universities for graduate degree training and specialized short term training. USAID will support selected 

universities in order to improve the quality of education through a university linkages program. The 

program will develop a model business school at one of the Palestinian universities, and fund selected 

applied research proposals. Principal grantee: AMIDEAST and TBD. 

FY 2006 Program 

SO: 294-014 Greater Access to Better Water Quality and Other Infrastructure Services 

Expand & Improve Access To Economic & Social Infrastructure 

Expand & Improve Access To Economic & Social Infrastructure ($1,100,000 ESF; $12,333,000 ESF Prior 

Year Unobligated). USAID will support a Small Infrastructure Program (SIP) to rehabilitate social and 

economic infrastructure, providing engineering design and construction of roads, schools, health clinics, 

courthouses and other infrastructure throughout the West Bank and Gaza. SIP will focus on the 

construction of the small-scale infrastructure needed to compliment other USAID-funded activities in the 

health, education, democracy, economic growth, and water resource sectors. USAID will provide 

additional resources for the completion of the joint USAID/World Bank “link” connector road feasibility 

study. Principle contractor: American Near East Refugee Aid (ANERA). 

USAID will continue its support for a large-scale rehabilitation of roads program by expanding this 

program to include Gaza as well as additional roads in the West Bank. Principle contractors: Ocean 

Contracting, the Tarifi Group, Saqqa and Khoudary JV, and Saqqa and Khoudary. 

USAID will also provide resources towards developing a Master plan for development of Gaza, in 

collaboration with other donors. 

Improve Access To Clean Water & Sanitation 

Improve Access To Clean Water & Sanitation ($65,867,000 ESF; $13,658,000 ESF Prior Year 
15

Unobligated). USAID will strengthen the operational and maintenance capabilities of water utilities in the 

West Bank by providing technical assistance, training, and replacement parts to bulk water utilities, 

municipalities, and Joint Services Councils. USAID will provide additional resources for the Mereokot 

water carrier in Gaza. Technical assistance will address the operation, maintenance, billing & collection, 

financing, and strategic planning capacity issues in those institutions responsible for the development and 

delivery of water and wastewater services in their service areas. Principle contractor: TBD. 

USAID will also begin the design and construction of a wastewater treatment plant in Hebron, West Bank. 

Requiring several years of design, construction and maintenance training, this facility will treat 15,000 

cubic meters/day (cm/d) of wastewater and provide more than five million cubic meters per year of water 

suitable to be used for agricultural development, benefiting the 400,000 residents of Hebron City. 

Principle contractor: TBD. 

USAID will repair critical water and sanitation systems and procure materials and equipment required for 

immediate repair of water and wastewater systems in the West Bank and Gaza. The Principle 

implementing partner for the design and construction management is Camp, Dresser, and McKee. 

Principle contractor: TBD. 

USAID’s new design-build contract for a Gaza Regional Water Carrier, signed September 2005, is 

planned to begin the summer of 2006. Based on political and security conditions, USAID may or may not 

be able to proceed with the plant's construction. The project is expected to require at least 18 months of 

construction and should be able to deliver up to 150,000 cubic meters of water daily to Gaza residents. 

Implementing partners include Morganti Group and Metcalf & Eddy. USAID also anticipates funding a 

seawater desalination plant to provide water for distribution via the Gaza Regional Water Carrier. Should 

the security and political situation in Gaza improve contracts for a full design and the construction 

management of the desalination plant for Gaza could also be awarded in late FY 2006. This project 

would provide 60,000 cubic meters of drinking water per day to Gaza’s residents. Principle contractor: 

TBD. 

FY 2007 Program 

SO: 294-014 Greater Access to Better Water Quality and Other Infrastructure Services 

Expand & Improve Access To Economic & Social Infrastructure 

Expand & Improve Access To Economic & Social Infrastructure ($5,000,000 ESF). USAID will continue 

support for a Small Infrastructure Program to rehabilitate social and economic infrastructure. Support will 

include engineering design and construction of roads, schools, health clinics, courthouses and urban and 

agricultural infrastructure throughout the West Bank and Gaza. The Small Infrastructure Program will 

specifically target the construction of small-scale infrastructure needed to improve the impact of other 

USAID-funded activities in the health, education, democracy, economic growth, and water resource 

sectors. The principle implementing partner is the American Near East Refugee Aid (ANERA). 

Improve Access To Clean Water & Sanitation 

Improve Access To Clean Water & Sanitation ($45,265,000 ESF). USAID will support the design of a 

wastewater treatment plant which will serve the Bethlehem and East Jerusalem regions and anticipates 

awarding a contract for construction in FY 2007. USAID will also continue its support for the construction 

of a wastewater treatment plant in Hebron. Technical assistance, training, as well as construction of a 

treated wastewater distribution system will be provided to support the reuse in agricultural irrigation. 

Technical assistance and infrastructure development in support of agricultural use of treated wastewater 

will be developed and supported jointly by USAID’s programs for water resources development and 

agribusiness development. Implementing partners are TDB. 
16

Results Framework 

294-001 Expanded Private Sector Economic Opportunities 

Program Title: Private Sector Development 

 IR1.1: Increased Value of Housing Loans 

 IR1.2: Increased Exports Directly Attributable to USAID Interventions 

 IR1.3: Effective Operations of Selected Economic Regulatory Institutions 

294-002 Greater Access To and More Effective Use of Scarce Water Resources 

Program Title: Water Resources Development 

 IR2.1: Major Water and Sanitation facilities constructed 

 IR2.2: Local Water and Sanitation Infrastructure Restored and Upgraded 

294-003 Maintaining and Strengthening Key Institutions of a Modern, Inclusive Palestinian 

Democracy 

Program Title: Democracy and Governance 

 IR3.1: Strengthen Civil Society 

 IR3.2: Strengthen Democratic National Governance Institutions 

 IR3.3: Improve Justice Sector/Legal Framework 

 IR3.5: More Genuine and Competitive Political Processes 

294-005 Increased Access To Higher Education and Training 

Program Title: Higher Education and Training 

 IR5.01: Improved Willingness and Capacity of Palestinian Citizens to Contribute to Development Needs 

 IR5.02: Palestinian Higher Education Institutions Identify, Adapt and Meet Changing Development 

Needs of Society 

294-007 Improved and Sustained Performance in the Health Sector 

Program Title: Family Health 

 IR7.01: Improved Quality of Maternal and Child Health and Nutrition 

 IR7.02: Improved Behavior Related to Maternal and Child Health, Nutrition and Well-Being 

 IR7.03: Improved Capacity to Meet Health, Nutrition and Psycho-Social Needs Arising Out of the Crisis 

294-008 Improved Community Services 

Program Title: Community Services Program 

 IR8.1: Improve Quality of Education 

 IR8.2: Expand and Improve Access to Economic and Social Infrastructure 

 IR8.3: Enhanced Provision of Humanitarian and Emergency Assistance 

294-009 Program Support Objective 

Program Title: Program Support Objective 

294-010 Promote Economic Stability 

Program Title: Promote Economic Stability 

 IR 10.1 IR 10.1: Improved Access to Markets and Financial ServicesImproved Access to Markets and 

Financial ServicesImproved Access to Markets and Financial Services 

 IR 10.2: Improved Economic Environment 

 IR 10.3: Private Sector Output and Employment Increased 

 IR 10.4: Improved Movement of Goods 
17

294-011 Promote Democratic Reform 

Program Title: Building Democratic Institutions 

 IR 11.1: Governance Institutions ImprovedGovernance Institutions Improved 

 IR 11.1.1: Strengthened CSO/LGU Role on Public Policy Making Strengthened CSO/LGU Role on 

Public Policy Making 

 IR 11.1.2: More Genuine and Competitive Political Processes in Local ElectionsMore Genuine and 

Competitive Political Processes in Local Elections 

 IR 11.2: More Effective Legislative ProcessMore Effective Legislative ProcessMore Effective Legislative 

Process 

 IR 11.2.1: Strengthened CSO Role on Public Policy Making Strengthened CSO Role on Public Policy 

Making Strengthened CSO Role on Public Policy Making 

 IR 11.3: Increased Adherence to and Respect for the Rule of Law 

 IR 11.3.1: Strengthened CSO Role on Legal Public Policy Making Strengthened CSO Role on Legal 

Public Policy Making 

 IR 11.3.2: Security Reform Process AdvancedSecurity Reform Process Advanced 

 IR 12.2.2: More Genuine and Competitive Political Processes in Parliamentary ElectionsMore Genuine 

and Competitive Political Processes in Parliamentary ElectionsMore Genuine and Competitive Political 

Processes in Parliamentary ElectionsMore Genuine and Competi 

294-012 Improved Performance in the Health System 

Program Title: Improved Performance in the Health System 

 IR 12.1: Improved Capacity of Health System to Deliver Quality Services 

 IR 12.2: Enhanced Behaviors Supporting Maternal and Child Health and Nutrition 

 IR 12.3: Increased Access to Nutritional Foods 

294-013 Enhanced Palestinian Human Capital 

Program Title: Enhancing Palestinian Human Capital 

 IR 13.1: Demonstrated Participation of Youth in Work, Family Life, & Civil Society 

 IR 13.2: Increased Effectiveness of Higher Education System to Produce Employable & Socially 

Responsible Graduates 

294-014 Greater Access to Better Water Quality and Other Infrastructure Services 

Program Title: Better Water Quality/Infrastructure 

 IR 1: Increase Water Supply 

 IR 1.1: Water Efficiency Gains 

 IR 1.2: Wastewater Treatment Increased 

 IR 2: Strengthen Water Governance Institutions 

 IR 3: Expand Economic and Social Infrastructure 

 IR 3.1: Road Infrastructure Rehabilitated and Reconstructed 

 IR 3.2: Building Expanded or Rehabilitated 

 IR 3.3: Cash Transfer Infrastructure