BICOM

According to a report in this morning’s Financial Times, Israel will today set out a series of new economic projects for both the West Bank and Gaza Strip aimed at boosting the Palestinian economy.

Last week, Israel increased the number of work permits granted to West Bank Palestinians to its highest level since 2000 while building materials for private projects were granted entry into the Hamas-held Gaza Strip for the first time in six years, after such materials had been restricted for fear that they would be used by Hamas to strengthen its military capability. According to an unnamed senior Israeli official quoted by the Financial Times, these measures will be followed up today by a package of projects which will be announced by Israel’s Minister for International Relations Yuval Steinitz at the annual Ad Hoc Liaison Committee meeting in New York today, which coordinates international aid for the Palestinians. The meeting will be attended by US Secretary of State John Kerry, European Union foreign policy chief Catherine Ashton and Quartet representative Tony Blair.

The Israeli source said “We hope this [economic initiative] will help to create a better climate in the peace talks,” between Israel and the Palestinian Authority (PA). Several rounds of peace talks have taken place during the past few weeks, although details of the negotiations have been kept quiet in order to prevent potential leaks which could hamper their progress.

Apparently, the new measures will include plans to improve the water supply to Palestinians, including the construction of new pipelines and desalination of water for Gaza. Meanwhile, a new fuel pipeline from either Haifa or Ashdod to Jenin in the West Bank is designed to combat black market fuel sales which cost the PA large losses in revenue. Steinitz will also announce increased cooperation between Israel and the PA on tax matters and an upgrade in the Palestinian cellular network.