2009 Direct Financial Support
PEGASE: Direct Financial Support to the Palestinian Government Sustaining Palestinian institutions
Ensuring regular salary payments
Dr. Mohamed Abu Al Sebah, 40, is a psychiatrist, and head of department at the Gaza Psychiatric Hospital, where he has worked since 1996. A father of four, his main source of income is his salary from the hospital. Dr. Mohamed receives his salary regularly, thanks to the Civil Servants and Pensioners (CSP) programme that is funded by the EU through PEGASE. This was not the case prior to the launch of the programme as Dr. Mohammed explained, “Two years ago, I never knew when I would be paid. My The European Union’s (EU) PEGASE Providing support to the salary was paid irregularly and Direct Financial Support programmes Palestinian Authority rarely in full. Now I receive my full provide financial assistance to the Civil service wages and pensions salary on time.” Palestinian Authority (PA) to cover account for nearly half the PA’s annual its recurrent costs such as civil expenditure. The PEGASE mechanism employee salaries and pensions, provides the Ministry of Finance social expenditure, private sector with financial support to pay the arrears and essential public services. salaries of over 78,000 civil servants The difficult socio-economic situation and pensioners, such as doctors and has meant that the PA operates teachers. In 2008, the EU’s monthly with a large budgetary deficit and contributions to the PA averaged depends on international aid to cover €21.25 million, representing more operating costs and to deliver basic than 25 per cent of the total wage bill services. These programmes help of PA employees and 45 per cent of the PA achieve the objectives of the the civilian bill. Financial contributions Palestinian Reform and Development from the Netherlands allocated Plan (PRDP) by working towards through PEGASE also support the fiscal sustainability and efficient salaries of the Palestinian Civil Police, public services. In 2008, a total of who make up ten per cent of PA €551 million was allocated to these active employees. programmes, including €421 million of direct EU support and €130 million of support from EU Member States. Direct Financial Support
A lifeline for vulnerable families
Maysoon Shaalan, 38, is a divorced mother of seven children. She has had no contact with her husband since she was pregnant with her youngest child, Baraa, now four years old. Maysoon and her family live in a dilapidated and damp apartment in Dehaishe refugee camp in Bethlehem. Their only furniture consists of a few plastic chairs and thin mattresses. The Helping the most vulnerable Project, to help maintain and improve family rely on Maysoon’s mother’s the quality of Palestinian public meagre salary as a cleaner and an Through PEGASE, the EU provides services in education, health and the EU-funded allowance of 1,000 NIS direct financial support to over 48,000 social sectors across the West Bank every three months for their daily poor and vulnerable Palestinian and the Gaza Strip. This project funds needs. They also receive regular families who depend on financial aid essential maintenance works of water, food parcels from the Ministry for their livelihoods. Families receive sanitation and electricity services of Social Affairs, but the family their EU-funded family allowances and covers operating costs for the struggle to get by. Maysoon said, every three months through the Ministries of Education and Higher “My life is very hard. I really hope Ministry of Social Affairs cash support Education, Health and Social Affairs. that my family continues to receive programme and a network of 42 banks. this EU support as we have so In 2008, the EU allocated €33 million Eliminating government debt to many problems. It helps me pay under this Aid to Vulnerable Palestinian business the school bills for my children and Families programme. Over half of these to buy them clothes. I want my families live in Gaza strip. The PA’s past financial difficulties children to get the best education meant that it was unable to pay so that they can have a better life Ensuring essential public services many of its private sector suppliers than me.” and partners. In 2008, the PEGASE The EU assists the PA to deliver mechanism allocated €24.3 million essential public services to for arrears payments to small Palestinians, a priority in the PRDP. In and medium sized private sector 2008, a €95.8 million EU contribution companies. This funding is a valuable provided fuel deliveries to the cash injection for the Palestinian Gaza Power Plant, the sole facility economy benefiting nearly 650 producing electricity in the Gaza businesses and thousands of Strip. The plant generates around 30 employees. It helped the PA to get rid per cent of the power consumed by of most of its debt to business and to the Gaza Strip’s 1.4 million residents, restore private sector confidence. supplying electricity for households, schools, hospitals and businesses.
The EU has contributed €20 million to a World-Bank led multi-donor trust fund, the Emergency Services Support
European Commission Technical Assistance Office for the West Bank and Gaza Strip P. O. Box 22207, Mount of Olives, Jerusalem Tel: +972 2 541 5888 Email: [email protected] Fax: +972 2 541 5848 2009 www.delwbg.ec.europa.eu