Norway pledges NOK 228 million to the Palestinian Authority

Norway will contribute NOK 228 million to a newly established World Bank trust fund for channelling budget support to the Palestinian Authority.

Today Norway signed an agreement with the World Bank under which it will provide NOK 228 million for the Palestinian Reform and Development Plan Trust Fund. This is in line with pledges made by Norway at the Paris Donor Conference in December. The funds will be disbursed in April.

“Norway has actively supported the establishment of a World Bank trust fund to coordinate donor countries’ budget support to the Palestinian Authority. We are pleased that the fund has been established so quickly. It will make its first disbursement to the Palestinian Authority before the next meeting of the Ad Hoc Liaison Committee, the donor coordination forum chaired by Norway, which will be held in London on 2 May,” said Foreign Minister Jonas Gahr Støre.

The World Bank trust fund will monitor the use of the budget support funds and will increase financial predictability for the Palestinian Authority by providing reliable disbursements on a regular basis. The funds will be used to pay the salaries of public employees and maintain basic services such as health care and education. The Palestinian Authority’s opportunities for generating revenues are extremely limited.

An important prerequisite for economic progress in the Palestinian Territory is that Israel eases existing restrictions on the movement of persons, goods and services.