JEDDAH, 25 December — The Islamic Development Bank (IDB) signed agreements yesterday to provide the Palestinian Authority with $24 million in grants and loans for essential services, a bank statement said.
Ten million dollars were provided as grants, including eight million from the Al-Quds Intifadah Fund, which was set up along with the Al-Aqsa Fund by Arab states in 2000 to back the Palestinian uprising. The remaining $14 million are soft loans for up to 25 years with five-year grace periods, the IDB statement added.
The aid was for development projects, the Health Ministry and electricity and water projects, as well as Palestinian industry and exports.
The IDB said that so far, $444 million have been paid to the Palestinian Authority by the two Funds.
Arab states pledged a total of $1 billion to the two funds during their October summit last year, but the sums committed so far have reached $693 million.
The Al-Quds Intifada Fund was to support the families of Palestinians killed or wounded during the uprising against Israel that began in September 2000, and the Al-Aqsa Fund to preserve the Islamic character of Jerusalem and support the Palestinian economy.
Both funds were entrusted to the Jeddah-based IDB after some donors baulked at transferring the money directly to the Authority, citing a lack of transparency in its management of public funds.
