PA calls for private backing

02 February 2006
The Palestinian Authority (PA) is hoping to attract $5,000 million of funds from the private sector with a new investment plan. The plan will be completed by the beginning of March and presented to potential investors at the Palestinian Development & Investment Conference in Bethlehem and Gaza in April. Ernst & Young is the consultant. 'The main objective is to attract investors from the Gulf, the Palestinian diaspora, Europe, the US and South America,' National Economy Minister Mazen Sinokrot told MEED on 21 January in Abu Dhabi at the beginning of an international roadshow to promote the scheme. 'We are receiving an excellent message from investors. Palestine is a country in the making. There's been interest from the UAE, Saudi Arabia, the US, Jordan and Palestinians abroad,' Sinokrot said. 'This conference will come at the right time, following the Palestinian Legislative Council and Israeli elections.'

The PA is hoping to draw private investment into infrastructure projects, agriculture, IT, housing and industrial parks. It also plans to privatise the management of border terminals and ports, including Yasser Arafat International Airport in Gaza, for which Sinokrot said repair work would start soon. Cement and petroleum industries will also be privatised. OPEC, the World Bank, the Islamic Investment Bank, the European Investment Bank and the Palestinian Investment Fund will back a $250 million Investment Security Fund, which will offer insurance to investors against any deterioration in the security situation.

Sinokrot said the PA is also ready to submit its mid-term economic plan outlining 2006-07 to international donors for infrastructure projects, capacity building and budget support. 'We hope donors come forward. Our needs are enormous,' he said.

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