BICOM

Introduction

• Today(4/2) a joint-statement between Quartet Representative Tony Blair and Israeli Prime Minister Benjamin Netanyahu was released on the latest package of gestures for Gaza, West Bank and East Jerusalem.

What does the joint statement say?

•  The latest package of measures is divided into three parts: Gaza, the West Bank and East Jerusalem:

Gaza

• The most significant measure, with respect to Gaza, is the revival of discussions on the vital projects of ‘Gaza Marine’ gas field, with approval in principle to supply Palestinian offshore gas to Gaza power plants and specific approved projects.
•  An agreement has been reached to provide desalination plants to meet Gaza’s water needs; and approval for a larger permanent desalination plant. Israel has also given full approval for all the sanitation and water treatment plants necessary for Gaza, and has agreed to support the entry of construction materials for the projects to be completed.
• A further twenty named construction projects will be approved and Israel will transfer around 40,000 tons of aggregates from Sufa/Karni into Gaza. There are also further measures to promote exports from Gaza, especially furniture, textiles and agriculture.
• The combination of the above measures should, over time, result in a significant improvement of Gaza’s infrastructure.

West Bank

• In the West Bank there will be an extension of Palestinian Authority security presence in Area B, with an additional seven towns, approved for Palestinian security responsibility. In Area C, there is an agreement between the PA and Israel to fast-track the construction or reconstruction of schools and health clinics. In addition, 5000 Gaza-registered residents of the West Bank will be given WB ID cards, which will allow them to permanently reside in the area.
• Israel and PA Finance Ministries have also agreed to resolve outstanding issues to do with revenue collection.

East Jerusalem

• Israel has agreed to encourage the implementation of all projects that abide by municipal regulations that will improve infrastructure for Palestinians in East Jerusalem for Palestinians including two new housing projects.

What is the significance of this statement?

•  At this time when negotiations are at a stalemate, it is important to rebuild trust between the Israeli and Palestinian leadership. The lack of a direct negotiation process hinders the ability to move toward an agreement, but practical steps like those indicated in this statement are being implemented on the ground.
•  Netanyahu indicated however that the bottom-up process should complement the top-down, political effort and not substitute it.Netanyahu made this point on Wednesday in a speech to the Knesset: “We have gone to great lengths to help the Palestinian economy, not as an alternative to the political peace that we want to negotiate with them, but as a contribution to stability and to help the Palestinian population understand that there is a lot to be gained from peace.” 
• In the last two years Israel has removed at least 140 checkpoints. The removing of checkpoints and easing of access is key to continuation of this growth. World Bank figures indicate that in 2010 the West Bankexperienced high single-digit economic growth rates. As the joint-statement indicates: “over these past two years there has been significant change on the West Bank, as can be seen from the strong economic growth there. This has been due, of course, to the Palestinian Authority’s actions; but also actions of the Government of Israel to facilitate them.”
• Today’s statement also indicates another step that will allow the rehabilitation of Gaza’s infrastructure. Obviously, Hamas represents a significant challenge to improving the quality of life to ordinary Palestinians living in Gaza. However, over the past six months there has been a significant increase in goods entering the strip and in construction work. Additionally, Israel is seeking to minimise Gaza’s dependency on external supplies of basic services like electricity and gas and the proposed projects will allow a degree of self-reliance in these spheres.