Press Release

OPEC Fund extends US$2.5 million grant for urgent housing project in Palestine

12/2006 March 14, 2006, Vienna, Austria
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The OPEC Fund for International Development today approved a grant of US$2.5 million to co-finance Phase II of an urgent housing project in Gaza, Palestine. The project, a joint initiative of the OPEC Fund and the Arab Fund for Social and Economic Development (Arab Fund), along with the Palestinian Housing Council (PHC), aims to respond to the critical housing needs brought on by the destruction and damage of thousands of homes in the West Bank and Gaza Strip.

Conditions in Palestine remain severe, with the enforcement of curfews, movement restrictions and closures that hamper all aspects of life. The housing sector is particularly overtaxed, as in addition to the physical destruction, building restrictions have led to overcrowding.

Phase I of the OPEC Fund/Arab Fund project targeted the hardest-hit communities in the West Bank. The second phase of the project will benefit residents in the Gaza Strip, with the Fund grant fully financing the restoration of 630 community houses for the physically handicapped and for needy families. Local communities will also benefit from the creation of job opportunities arising from the civil works component of the scheme.

The initiative will be executed by the PHC, a non-profit institution that was established in 1991 to solve the housing problem in the West Bank and Gaza Strip. Over the years, the Council has become a leading institution in developing the housing sector and providing social housing for those with limited incomes.

The Fund’s grant will be drawn from its Special Grant Account for Palestine. The special account was set up in 2002 with an initial endowment of US$10 million and has subsequently been replenished twice to boost resources to US$40 million. Previous grants have helped national NGOs continue their essential services to Palestinian society, financed the rehabilitation and construction of damaged homes and public buildings as well as the purchase of emergency medical equipment, provided assistance to Palestinian universities and a micro-credit scheme, together with a number of social and capacity-building projects.