JEDDAH, 14 May  — The United Nations Development Fund and the Islamic Development Bank yesterday signed a memorandum of understanding for UNDP cooperation in the construction and rehabilitation of education and health projects worth $7 million in the Palestinian territories. The projects will be financed from the $1 billion Al-Aqsa Fund which was approved by Arab leaders last year to support the Palestinian Intifada. IDB President Ahmad Muhammad Ali, and UNDP special representative in the Palestinian Authority areas, Timothy Rothermel, signed the agreement here. The IDB is administering the Al-Aqsa Fund and the Intifada Fund.