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Ramallah – As part of the government's efforts to mobilize support for local government units (LGUs) and enhance the quality of services provided to our people, the Palestinian government, represented by Dr. Wael Zaqout, Minister of Planning and International Cooperation, alongside Dr. Sami Hajjawi, Minister of Local Government and Chairman of the Municipal Development and Lending Fund (MDLF), signed two key agreements with the German government, represented by Mr. Oliver Owcza. These agreements, facilitated through the German Development Bank (KfW), amount to a total of 23 million euros in support for Palestinian LGUs.
Under the first agreement, 12 million euros of the 18-million-euro total will be allocated to support Phase IV of the Municipal Development Program (MDP4). This national reform and development program, which began in 2009, focuses on improving municipal services and infrastructure in Palestinian cities and municipalities. The remaining 6 million euros will be allocated to support the Village Councils Project for the first time, which aims to enhance the capacity of local councils in villages with populations of over 4,000 people to provide better services to citizens. Both programs will be executed through the MDLF, ensuring that projects are implemented efficiently and effectively, in alignment with the needs of municipalities and local communities.
The second agreement, worth 5 million euros, will provide emergency financial support to Palestinian municipalities to cover operational costs and ensure continuity of services to citizens. Additionally, this emergency fund will create temporary job opportunities, particularly in light of rising unemployment rates. This initiative will also be managed by the MDLF.
In his remarks, Minister Zaqout expressed gratitude to the German government for its continued support, emphasizing that this grant will significantly contribute to comprehensive local development, improve service delivery, and strengthen the resilience of Palestinian communities in these challenging times. He also called for continued collaboration with international partners to ensure the sustainability of development projects in Palestine.
Minister Hajjawi praised the strategic partnership with the Federal Republic of Germany, facilitated through KfW and the German Agency for International Cooperation (GIZ), describing it as a model of cooperation that strengthens governance and reform in the local government sector. He underscored the role of Palestinian municipalities in providing essential services and driving local development.
Mr. Owcza, representing the German government, reiterated Germany's support for the MDLF, highlighting the importance of the Fund’s role in delivering services to citizens and contributing to building a strong Palestinian state. He reaffirmed Germany's commitment to supporting the Palestinian government's reform agenda aimed at improving social service delivery.
These agreements are part of Germany's ongoing commitment to support the Palestinian government in multiple sectors and reflect the deep cooperation between the Palestinian and German governments.