West Bank/Gaza

FY 2001 Program Description and Activity Data Sheets

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FY 2001 Program In FY 2001, USAID intends to finance: lending for small and microenterprises, support for Palestinian business organizations, development of infrastructure at two industrial estates, technical assistance to strengthen the Palestinian Industrial and Free Zone Authority, higher education training, road construction, and policy initiatives to improve the legal and regulatory framework; (S0 1) development of new water supplies for household consumption and village water distribution systems, testing and improving the quality of potable water, repairing and installing transmission/distribution and waste/storm water systems, and promotion of more efficient allocation of all water resources (potable and non-potable) for domestic and commercial uses; (SO 2) enhancement of citizens' capacity to participate in and influence the governing process through support for local civil society organizations, and development of democratic institutions (the legislature, judiciary and local government entities) to better meet the needs of Palestinians in a transparent and efficient manner; (SO 3) improvements in maternal child health care services provision; (SO 7) increased and improved community services responding directly to a range of priority service needs as defined by Palestinian communities; (SO 8) and selected development needs. (SpO 2) ACTIVITY DATA SHEET PROGRAM: West Bank and Gaza TITLE AND NUMBER: Expanded Economic Opportunities, 294-001 STATUS: Continuing PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $159,025,000 ESF PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $10,731,000 ESF INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2004 Summary: The Palestinian economy is characterized by high and fluctuating levels of unemployment and under-employment; limited access to labor markets in Israel; unreliable passage for manufactured inputs and final products, especially in times of border closures; limited regional trade; low productivity; constraints to credit, particularly for microenterprises; and an undefined legal and regulatory framework that undermines investor confidence. USAID's program addresses these issues, focusing on the private sector as the key to long-term stability and growth in the West Bank and Gaza. The goal of USAID's program is to increase the efficiency, profitability, and transparency of the Palestinian commercial sector and increase the availability of capital to small and micro-enterprises. USAID'S program helps increase sales of Palestinian firms by strengthening select industry associations and providing firm-level assistance. Microenterprises have better access to financial services as a result of USAID's provision of loan capital to NGO micro-lenders and training to commercial banks in micro-lending methodologies. The Palestinian economy benefits from increased commercial transparency and the adoption of internationally-accepted standards, which result in more efficient financial transactions. USAID is building on high levels of Palestinian entrepreneurship and existing comparative advantages in specific industry segments to enhance economic opportunities for Palestinians and provide tangible results to increase support for the peace process. Key Results: USAID's private sector program aims to achieve the following results: (1) increased small and micro-enterprise access to financial services, (2) increased access to markets by the industrial and service sectors, and (3) economic regulatory institutions are operating effectively. Performance and Prospects: To improve the access of small and micro-enterprises to financial services, USAID has provided technical assistance to participating banks and funded working capital loans for micro-enterprises. A formal financial sector micro-credit mechanism began in FY 1998 with loan capital of $6 million provided by participating banks; USAID provided financing for technical support and a small percentage of start-up costs. Loans have averaged $2,000 each. To date, the banks have disbursed approximately $10 million of their own funds in loan capital to micro-borrowers. This activity expanded from four to eight branches in FY 1999. In FY 2000, two new banks will be added and the number of branches will expand from eight to twelve. Participating banks will provide an additional $6 million in loan capital. In addition, the bank-based program will be extended to reach lower loan value customers, which will increase competition, lower interest rates, improve the level of financial services available, and ensure a sustainable source of micro-credit. Since FY 1997, USAID has financed approximately 19,000 micro-loans (valued at $7 million) through United Nations (UN) and private voluntary organizations (PVO) intermediaries. Through a grant to Save the Children, USAID supports a local micro-credit non-governmental organization (NGO) in lending directly to micro-borrowers. USAID's PVO programming focuses on poorer segments of the borrower population (generally women) and provides loans ranging between $300 and $1,000. In FY 2000 and FY 2001, the Mission may fund new activities, or further support on-going ones, as a result of a micro-lending demand study undertaken in 1999. Since 1994, USAID has assisted Palestinian firms to access foreign and domestic markets by improving marketing practices, management and productivity. By the end of USAID's first phase of support in late 1999, the business skills of 3,200 Palestinian managers were upgraded and more than twenty leading Palestinian firms were assisted in becoming certified in internal export standard (ISO) 9000 or other relevant international export standards. Second phase assistance has begun to strengthen key industry associations, such as marble and stone, information technology, and tourism, which are linked to increasing private sector-led, export-oriented growth. Support will also be provided in the areas of agribusiness and trade harmonization. In December 1999, Paltrade, a Palestinian trade organization supported by USAID, hosted the first Palestinian trade fair in Israel. The fair attracted thousands of buyers and generated more than $14 million in sales. Paltrade continues to play an advocacy role for the Palestinian private sector by hosting trade dialogue conferences to positively impact commercial policies. USAID may provide additional support to Paltrade in FY 2000. In addition, USAID technical assistance and infrastructure financing has made it possible to establish a border industrial estate in Gaza. The Gaza Industrial Estate (GIE) provides greater access to foreign markets for firms located there. Since its opening in early 1999, seventeen manufacturers, employing one thousand workers (50% female) have generated $5 million in export sales. Second phase GIE construction will begin in 2000 with 20 new tenants already signed on. In FY 2000 and FY 2001 USAID will support additional assistance to the Palestinian Industrial and Free Zone Authority (PIFZA) to help build capacity to promote, regulate, and maintain industrial zones. Also, in FY 2000 and FY 2001, USAID will fund feasibility studies to support the development of future estate sites. Beginning in 1996, USAID provided assistance to develop the commercial legal and regulatory framework in the West Bank and Gaza. Assistance to date has resulted in an overall legal and regulatory framework for industrial zone development and operation, and completion of a draft accounting law consistent with international accounting standards. In late 1999, USAID initiated a program to facilitate the adoption of internationally acceptable accounting and auditing standards. Groundwork has been laid in the development of private sector accounting and auditing governing and oversight bodies. In FY 2000 and FY 2001, USAID will continue to support the adoption of internationally accepted accounting and auditing standards by assisting in their development, promulgation, and integration into daily business practices. Assistance over FY 2000 and FY 2001 will help establish private accounting and auditing organizations, professional licensing requirements, and a process for peer review. Support to the Palestinian Monetary Authority (PMA) (Central Bank) has promoted the adoption of internationally recognized bank supervision standards to ensure regulatory compliance. USAID assistance has helped clarify the role of the PMA in the supervision of non-Palestinian banks operating in the West Bank and Gaza and strengthened its capacity to identify "problem" banks through the development of a bank supervision manual. In FY 2000 and FY 2001, incremental funding will support on-going assistance emphasizing skills upgrading for PMA staff and improving on-site and off-site inspection procedures. Starting in FY 2000, USAID will help create a regulatory body to oversee the transparent development and operation of a capital market. Assistance will be provided to monitor trading on the Palestinian Securities Exchange, enforce professional standards, and train brokerage and regulatory staff. USAID will fund on-going assistance in this area in FY 2001. Possible Adjustments to Plans/Wye Funding: In FY 2000 - FY 2001, up to $100 million in Wye supplemental funds may be used to construct a connector road between Nablus and Jenin - two main centers of commerce in the West Bank. In addition, to address the low number of skilled managers in key business sectors, up to $30 million in Wye funds will support U.S.-based master degree education for qualified Palestinians. Further, up to $20 million from the Wye funding package will support the development of off-site infrastructure (water and electricity connections, compact sewerage treatment plant) and limited on-site infrastructure (multi-tenant workspace and training facility) at a high technology industrial estate in the West Bank town of Tulkarm, as well as container-storage and common bonded warehouse facilities at the GIE. Other Donor Programs: Between 1994 and 1999, USAID provided approximately $70 million in assistance to support increased economic growth in the West Bank and Gaza. The European Union and the UK have funded programs providing loans to small businesses, excluding microenterprises. Along with USAID, the World Bank is providing assistance related to industrial zone development. The World Bank has begun implementation of an initiative focused on improving the private sector legal framework and commercial regulations and tracks the status of key commercial legislation. Principal Contractors, Grantees, or Agencies: USAID is implementing activities through U.S. firms (Development Alternatives International, The Services Group, Metcalf & Eddy, The Barents Group, Deloitte Touche Tomatsu, and Chemonics), U.S. NGOs (the Save the Children Federation), a Palestinian NGO (Paltrade), and the Palestinian private sector (local banks). Selected Performance Measures: Baseline Actual (1999) Target (2000) Target (2001) Value of total sales in assisted firms $69 M (1995) $101 M $104 M $108 M Ind. Estate production shipments $0 (1996) $5 M $15 M $16 M Regulatory agencies strengthened 0 (1999) 0 1 2 No. of trainees in U.S. on masters program 0 (1999) N/A 20 40 NOTE: The FY 2001 obligation plan for this SO totals $143,731,000 in ESF, composed of $10,731,000 in FY 2001 NOA and $133,000,000 in Wye funds. U.S. Finance Table (Microsoft Excel) ACTIVITY DATA SHEET PROGRAM: West Bank and Gaza TITLE AND NUMBER: Greater Access to and More Effective Use of Scarce Water Resources, 294-002 STATUS: Continuing PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $90,875,000 ESF PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $60,875,000 ESF INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2005 Summary: The goal of USAID's water sector strategic objective is to increase the quantity and improve the quality of water available to Palestinians in the West Bank and Gaza. Availability of water for household consumption, agricultural production and industrial development in the West Bank and Gaza is the lowest in the region and constitutes a major obstacle to sustainable economic growth and development for Palestinian populations. Water is also a key issue in the ongoing permanent status negotiations between Israel and the Palestinians. In many parts of the West Bank and Gaza, the existing water supply system can only provide for average daily consumption of less than 50 liters per capita. By comparison, the World Health Organization (WHO) has established a minimum per capita standard of 100 liters per day for small rural households. Effective long-term resolution of the water shortage problem in the West Bank and Gaza will require a combination of rapid development of new water sources and implementation of more effective and efficient water distribution and management systems. Achieving even the minimum per capita standard for Palestinian populations in the West Bank and Gaza is a daunting development challenge with significant implications for prospects of long-term economic growth and stability in the region. Key Results: Activities funded under this SO contribute to achievement of three intermediate results: (1) increased water supply from conventional sources, (2) integrated management of water resources, and (3) implementation of market-oriented allocation mechanisms. Performance and Prospects: Implementation of this SO is planned in three overlapping phases over a period of 5-10 years. The first phase began in 1996 after the signing of the Oslo agreement and will be largely completed by 2000. In the West Bank, Phase I activities have focussed on increasing production from groundwater sources, augmenting the capacity of water transmission and distribution systems, and improving understanding and management of the principal aquifers. In Gaza, Phase I activities have focused on protecting the fragile coastal aquifer, instituting emergency measures to address specific problems, and developing a comprehensive long term water resources management initiative. Despite substantial delays and cost overruns due to difficulties in obtaining drilling permits and other authorizations from the Government of Israel, overall performance of this SO has been at or above expectations. Through the end of 1999, major accomplishments in the West Bank include: construction and commissioning of four new large-scale production wells with a combined annual capacity of 8.5 million cubic meters of water; installation of new bulk water transmission mains; and construction of reservoirs and booster stations to handle 87 million cubic meters of water. More than 300,000 residents of the Bethlehem-Hebron areas have directly benefited from USAID funded water production and delivery assistance. In addition, USAID funded the development of village water systems in the Jenin area, bringing running water to villages for the first time. In Gaza, significant accomplishments under this SO include development of a USAID funded master plan to guide sustainable development and integrated management of the fragile coastal aquifer system, doubling of the capacity of the Gaza City Wastewater Treatment Plant to 32,000 cubic meters/day, expansion and upgrading of the Sheikh Radwan Stormwater Reservoir, and establishment of a storm water infiltration basin site and construction of a new public park on the site. USAID-funded activities have provided improved services for more than 325,000 residents in and around Gaza City. Prospects for continued success under this SO remain excellent. A second generation of USAID funded activities to increase water supplies from conventional sources began in FY 1999. In the West Bank, surveying, modeling, and design work have been completed for construction and commissioning of up to ten additional new production well sites (including two new production wells near Bethlehem) and associated storage and transmission systems, village distribution networks and monitoring wells to provide between 15 and 20 million additional cubic meters of water per year. Full-scale construction of new well systems will begin in 2000. To promote integrated water management practices, USAID began implementation in Gaza in FY 1998 of a new Coastal Aquifer Management Program (CAMP) to reestablish the aquifer as a sustainable source of safe drinking water. In FY 2000 and FY 2001, CAMP will support development of innovative systems related to well system management, aquifer protection, non-conventional water supply (e.g., desalination), recharge of aquifers, and reuse of treated wastewater. In FY 2000, USAID will also begin development and implementation of a similar integrated aquifer protection program for the West Bank, including interventions related to industrial waste management and wastewater treatment facilities in Hebron, and rural integrated waste (solid and water) management systems. Further, in FY 2001, USAID will assist municipalities to strengthen their institutional capacity and improve the level of services and maintenance which they provide in water-related areas. To establish market-oriented allocation mechanisms, USAID is enhancing the capacity of Palestinian organizations to develop plans and enact policies and regulations that reflect the economic, social, health and environmental implications of water use; establish appropriate tariff structures; and collect/re-invest revenues. These efforts are to some extent incorporated into the activities cited above. In addition, in FY 2000, USAID will initiate specific activities to improve the operations and maintenance capacity and administrative and planning systems of municipalities and utilities. Possible Adjustments to Plans/Wye Funding: Approximately $30 million of Wye funding will be used to augment USAID's water resources program. Funds will be used to implement village water distribution activities to provide access to clean, potable water to villages where there is currently no piped water system or where the existing system is inadequate. The focus will be on villages which can be hooked up to transmission lines funded by USAID. Other Donor Programs: Since 1994, the water sector has been the largest recipient of international donor funding for the West Bank and Gaza. Through 1998, total donor support for water projects was approximately $314 million, of which USAID contributed approximately $145 million. USAID is considered the primary donor in the sector, and the U.S.G. has and will continue to play an essential leadership and guidance role. Other major donors in the sector include Germany, Norway, France, the United Kingdom, Japan, Italy and the World Bank. Principal Contractors, Grantees, or Agencies: Camp, Dresser & McKee (CDM), Metcalf & Eddy (M&E), and CH2M Hill are the principal U.S. contractors. U.S. private voluntary organizations (Save the Children Federation and American Near East Refugee Aid) and the United Nations Development Program also play significant roles. Selected Performance Measures: Baseline Actual (1999) Target (2000) Target (2001) Metered per capita daily water consumption in selected areas 71.8 liters (1997) N/A 84 116 (2002) Increased annual potable water supply from new wells developed with USAID assistance 0 million m3 (1995/6) 10 M m3 10 M m3 19 M m3 Cumulative number of new production wells in operation (USAID only) 0 (1995/6) 5 7 11 Cumulative population in areas served by distribution systems improved by USAID 0 (1995/6) 222,000 233,000 242,000 Cumulative population in areas served by transmission systems improved by USAID 0 (1995/6) 313,000 325,000 338,000 Number of brackish/desalination systems established with USAID support 0 (1995/6) 2 3 3 Population of communities served by USAID funded wastewater facilities 0 400,000 416,000 432,000 NOTE: The FY 2001 obligation plan for this SO is $80,875,000 in ESF composed of $60,875,000 in FY 2001 NOA and $20 million in Wye funds. U.S. Finance Table (Microsoft Excel) ACTIVITY DATA SHEET PROGRAM: West Bank and Gaza TITLE AND NUMBER: More Responsive and Accountable Governance, 294-003 STATUS: Continuing PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $43,100,000 ESF PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $16,600,000 ESF INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2003 Summary: The exercise of basic freedoms such as free speech, as well as venues for citizen input into the decision making process, continue to be key issues in the West Bank and Gaza. Through its programs, USAID is responding to critical governance needs and supporting Palestinian efforts to establish a democratic society. USAID supports nascent government structures within the various branches and levels of government, especially those related to constituent representation, rule of law and local government. Support is also provided to civil society organizations that represent citizen concerns before these institutions. Four years after the elections that led to an elected Palestinian Council (PC) and Executive Authority head, the democracy and governance portfolio includes activities that focus on the efficient and effective functioning of PA institutions as well as strengthening representative civil society organizations to constructively interact with these institutions. Additional support to broadcast media will complement ongoing efforts to strengthen the print media, and a new rule of law program will enhance the capacity of the judicial sector to safeguard the rights of Palestinians through due process mechanisms. A second phase local government program will help promote an enabling environment for decentralization. Key Results: Four intermediate results contribute to this objective: (1) increased participation of civil society organizations in public decision-making and government oversight, (2) enhanced legislative capacity, (3) foundation for decentralized local government in place, (4) elements of a more effective judiciary in place. Performance and Prospects: To increase the participation of civil society organizations in public decision-making and government oversight, USAID is: strengthening local non-governmental organizations' management capacity and their capacity to exercise government oversight, policy analysis and advocacy roles; enhancing the skills of, and creating the foundations for, an independent media; and encouraging the dissemination of information to the public. USAID's activities to date have resulted in: widespread town hall meetings allowing constituents to express their concerns to Council, Executive and local government representatives; the appointment of high-level female policy-makers to municipal governments and local councils; stronger independent television stations; support for two USAID-established media resource centers to train journalists and broaden their professional skills; civic education sessions targeting rural populations and women; and successful advocacy for the development of a family rights law which improves the status of women. These programs are conducted through the Department of State's Public Diplomacy Section (formerly the United States Information Agency) and local and international non-governmental organizations, which currently include six local civil society organizations and two international organizations partnered with local groups. In FY 2000 and FY 2001, USAID will broaden its support for civil society organizations that positively impact public decision-making and monitor the executive and legislative branches, and that promote increased civic and political participation of marginalized areas and groups. In addition, USAID will give greater attention to capacity building among civil society organizations. To enhance the capability of the PC to perform the functions of a legislative body, USAID is supporting the development of key administrative systems, increasing the PC's ability to draft and review legislation, enhancing their skills in reviewing and monitoring the Executive's budget and overall performance, and providing assistance to improve PC responsiveness to its constituents. A U.S. contractor and a U.S. grantee are currently implementing these programs. First phase assistance was completed in September 1999 and helped the PC to establish transparent procedures for record-keeping and tracking constituent inquiries, draft and review key laws, develop a functioning/non-partisan parliamentary research unit for collecting and analyzing background data for new legislation, and review of the executive's annual budget. Second phase assistance, initiated in October 1999, has promoted a series of exposure visits by PC members to the U.S. Congress to observe efficient legislative systems and further develop contacts with U.S. Representatives. FY 2000 and FY 2001 assistance will build on previous results and improve the PC's ability to review and draft legislation, strengthen its review of the Executive's annual budget, and encourage increased interaction between citizens and their representatives. Additional support will be provided to the PC to improve administrative and management systems. Work has begun on a first phase of activities to support decentralized local government. Assistance is being provided to facilitate dialogue between local authorities and the central level on policy issues, develop an action plan to improve local government management, and develop mechanisms to encourage citizen participation in the local government process. In FY 2000 and FY 2001, USAID will support an improved legal environment for local government operations, clarify the roles and responsibilities of the various levels of government, support the development of an advocacy agenda among local governments, encourage the adoption of "best practices" among local governments, and support efforts to improve citizen participation. In October 1999, USAID awarded a contract and grant to implement activities to strengthen the rule of law. In FY 2000 and FY 2001, USAID assistance will increase the capacity of the judiciary by improving court administration. Training will be provided to judges, prosecutors, and staff, and new procedures will be developed and tested. Assistance will also improve the policy framework for judicial reform, including the establishment of a judge' association and focussed technical assistance. USAID will improve legal education in all four Palestinian law schools by helping to enhance faculty development, deploy advanced information technology, and increase course offerings. USAID assistance will also support the strengthening of the legal profession by building the capacity of the Palestinian Bar Association and encouraging the adoption of Alternative Dispute Resolution methods. Possible Adjustments to Plans/Wye Funding: In FY 2000 and FY 2001, up to $30 million in Wye Supplemental funds will be used to expand the rule of law program, including courthouse/judicial facility construction ($15 million) and support, through the U.S. Department of Justice, to improve the prosecutorial functions of the judiciary ($15 million). Other Donor Programs: While several donors support programs in the democracy and governance area, USAID has been a leader in the design and provision of assistance, especially in the area of civil society. The World Bank, United Kingdom, Denmark, European Union, and Australia are supporting initiatives related to legal reform and the justice sector, which complement the areas in which USAID plans to work. The European Union's program of support with the PC has been developed in coordination with USAID. The World Bank, United Nations Development Program and other donors have programs that support the development of local government entities; USAID anticipates working in related policy reform areas. Principal Contractors, Grantees, or Agencies: USAID is implementing this activity through U.S. contractors (Associates in Rural Development, World Learning, and DPK), U.S. non-governmental organizations (primarily the International Republican Institute, Meridian International Center and AMIDEAST) and grants to local non-governmental organizations. USAID is working with the Department of State's Public Diplomacy Section on media activities. Selected Performance Measures: Baseline Actual (1999) Target (2000) Target (2001) Indexed percentage of laws/policies modified by the Palestinian Authority based on input from civil society organizations 43% (1997) 58% 59% 62% Percentage of laws initiated by the Executive Authority that are substantively modified by the Palestinian Council 0 (1996) 90% 90% 90% Number of citizen workshops held by local governments. 0 0 5 10 Annual Executive Authority budget is submitted to the Palestinian Council for review and approval No (1996) Yes Yes Yes Number of lawyers trained by the Palestinian Bar Association in continuing education 0 0 120 120 Number of Palestinian law schools implementing new subjects in curricula 0 (2000) 0 1 3 NOTE: The FY 2001 obligation plan for this SO is $31,600,000 in ESF composed of $16,600,000 in FY 2001 NOA and $15,000,000 in Wye funds. U.S. Finance Table (Microsoft Excel) ACTIVITY DATA SHEET PROGRAM: West Bank and Gaza TITLE AND NUMBER: Improvements in Maternal/Child Health Care Demonstrated, 294-007 STATUS: New PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $22,000,000 ESF PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $6,150,000 ESF INITIAL OBLIGATION: FY 1999 ESTIMATED COMPLETION DATE: FY 2004 Summary: The most serious health problems facing mothers and children in the West Bank and Gaza derive from high fertility with short birth intervals, along with weaknesses in clinical and outreach services. Rates of premature births and low-birth weight babies are very high. Current data indicate that maternity-related complications are the third leading cause of death among Palestinian women of reproductive age. Nutritional problems among mothers and children are common, and are a contributing factor to health problems; greater than 40% of women of childbearing age have some degree of anemia. Only 50% of pregnant mothers receive adequate antenatal care and only 12% of mothers receive postpartum care. At the same time, some of the highest population growth rates in the world -- 4.1% for Gaza and 3.6% for the West Bank - pose major impediments to economic development and social stability, and mitigate the achievement of donor and Palestinian development goals. Studies suggest a strong unmet demand for modern family planning methods. Under USAID's Special Objective 2, "Selected Development Needs Met," USAID initiated its pilot health activity by funding two U.S. PVOs in FY 1999 to upgrade clinical and outreach services in order to improve maternal/child health and increase the use of modern contraceptive methods. Research to test the effectiveness of alternate health education and service delivery approaches is also being supported. In FY 2000, USAID will begin full-scale, multi-year assistance to strengthen on-going activities as well as expand into areas which will positively impact the health of mothers and children. Key Results: Four results are necessary for the success of this activity: (1) improvements in the health of mothers and children; (2) effective promotion of birth spacing; (3) increased use of modern contraceptives; and (4) research findings which document the effectiveness of various health education and service delivery interventions. Performance and Prospects: In FY 1999, USAID initiated a pilot health activity and awarded grants with a total estimated value of $3.4 million to two U.S. private voluntary organizations to implement programs in the northern and southern West Bank and in Gaza. These PVOs partnered with five Palestinian NGOs that have historically played an important role in delivering health care in their communities. USAID assistance will begin to upgrade the quality of antenatal and postpartum services for mothers and their children and make improved family planning services available at about 30 clinics. The approach taken defines the mother and the newborn as a unit for the delivery of services during the antenatal and postnatal periods, when both are most vulnerable to unfavorable health outcomes. This pilot program will test a basic model of intervention -- a standard package of services -- and several more specific health education and service delivery approaches, to determine whether they will be effective in improving health-giving practices by health providers, and health-seeking behavior by families. It is anticipated that clinic visits by pregnant women, and by mothers with their babies, will increase dramatically. Pilot activities will build upon NGO-based health care efforts already on the ground and the strong presence and good track record of Palestinian NGOs in providing community health services. In addition, local NGO programs will be strengthened with appropriate systems, clinic refurbishment, staff training, and management and logistics support. In FY 2000 and FY 2001, USAID will expand current programs to add additional clinic sites. The expansion will also help to improve hospital maternity services. The results of operations research undertaken as part of the pilot health activity will inform this expansion. The population funds will be used to co-fund research on how best to communicate information and education on family planning, especially to young families. In addition, it will provide training to manage family planning programs in clinics, development of management information systems for the family planning program and adapting the physical layout in clinics for effecting implementing a family planning effort. The balance of ESF (not designated for population activities) will also address specific, cross-cutting health priorities that affect the health of mothers and children, among them: nutrition interventions; the use of media and other information channels to spread information about ways to promote good health; improving the use and management of pharmaceuticals. In addition, training will upgrade the skills of public health practitioners at all levels. Possible Adjustments to Plans/Wye Supplemental Funding: Wye funds will be used to expand the pilot health program to reach more women and children as discussed above. Other Donor Programs: Other donor governments and institutions are involved in the health sector, but their efforts tend to be directed at national health policy issues and broad-scale strengthening of the Palestinian Authority Ministry of Health. The Government of Japan and the European Union, the two largest donors in this area, primarily fund equipment and construction of health care facilities. None are working on a concerted, integrated basis on primary health care problems. Principal Contractors, Grantees or Agencies: U.S. PVOs (The Population Council and CARE) and Palestinian NGOs have formed a partnership to implement the pilot health program. The expanded program will be implemented by a U.S. contractor, which will work with a range of U.S. and local groups. U.S. contractors and grantees with the relevant expertise will implement additional elements of the program. Selected Performance Measures: Baseline Actual (1999) Target (2000) Target (2001) Birth intervals of women who receive care at USAID-supported facilities. 18 months 18 mos. 20 mos. 22 mos. Incidence of maternal anemia in women who receive care at USAID-supported facilities. 40% 40% 37% 35% Percent of women receiving post-partum care at USAID-supported facilities. 12% 12% 15% 25% Use of modern contraceptives by women of reproductive age receiving care at USAID-supported facilities. 34% 34% 37% 40% NOTE: The FY 2001 obligation plan for this SO is $16,150,000 in ESF composed of $6,150,000 in FY 2001 NOA and $10 million in Wye funds. U.S. Finance Table (Microsoft Excel) ACTIVITY DATA SHEET PROGRAM: West Bank and Gaza TITLE AND NUMBER: Improved Community Services, 294-008 STATUS: Continuing PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $70,000,000 ESF PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $5,644,000 ESF INITIAL OBLIGATION: FY 1999 ESTIMATED COMPLETION DATE: FY 2003 Summary: The goal of this Strategic Objective is to contribute to tangible and meaningful improvements in the quality of life of Palestinian populations throughout the West Bank and Gaza. USAID and other analyses indicate that the gap between the supply and demand for basic community services and infrastructure has been growing for several years and constitutes a source of increasing disaffection and frustration among Palestinians. Major new investments are needed to upgrade and maintain basic water, health, social and municipal services in numerous villages and small to medium-sized municipalities. Further, given the current shortage of managerial capacity and financial resources within the Palestinian Authority to deal effectively with community and municipal level needs, the gap is expected to worsen before it begins to improve. Failure over the short-term to meet ordinary Palestinians' expectations of substantive improvements in their day-to-day lives could jeopardize popular support for the peace process, undermine the authority of the PA to achieve consensus, and impede broader economic and democratic development efforts. USAID resources under this SO will be used to respond to the immediate and short-term needs to expand access and improve the quality of basic community infrastructure and services in areas throughout the West Bank and Gaza. Priority is given to meeting needs in under-served and disadvantaged rural and urban communities, including refugee camps. All activities funded under this SO emphasize the importance of broad community involvement in the process of identifying, developing and implementing specific projects for funding. Key Results: Programs funded under this SO contribute to achievement of two results: (1) improved quality of basic community services (e.g., youth counseling, support for the handicapped, public health, water, sanitation, recreation, and youth development); and (2) upgraded community infrastructure (e.g. schools, clinics, day care centers, rural roads, and markets). Performance and Prospects: Implementation began as planned in FY 1999 with the launch of the Community and Rural Services Program. In FY 1999, USAID awarded grants with a total estimated value of $20.0 million to five U.S. private voluntary organizations (PVOs) competitively selected to implement projects in communities throughout the West Bank and Gaza. U.S. PVOs have historically played an important role in supporting Palestinian non-governmental efforts to serve their communities, and each of the U.S. PVOs participating in the Community and Rural Services Program has extensive operational experience and knowledge of social, economic, and political conditions in the West Bank and Gaza. The first phase of the programs will directly or indirectly benefit up to 500,000 people. Activities are geographically concentrated in areas of greatest need including the north of the West Bank around Jenin, the Jordan Valley, the Hebron District, and middle and southern Gaza. During the next three years, funds will be used to: renovate and upgrade public school facilities; expand and equip community clinics; repair and improve market access roads; upgrade and increase access to electrical grids and water networks; improve community sanitation facilities and services; increase access to social services such a pre-schools and community centers; provide educational, recreational and economic opportunities for some 64,000 disadvantaged Palestinian youth (including over 5,000 disabled youth); renovate market places; develop and expand community centers and public libraries; improve road signage; upgrade existing wells; improve maintenance of public areas; improve solid waste collection and management; and develop more efficient water management practices. A Village Services Program will begin in FY 2000 as a follow-on to the current Community and Rural Services Program, with additional funds to be provided in FY 2001. The Village Services Program will enable USAID to reach more communities that still lack many basic services. It will differ from its predecessor in that it will work in clusters of villages to encourage economies of scale and foster greater cooperation at the local level for operations and maintenance. This program will be complemented, in FY 2001, by a Municipal Services Program, which will be directed toward the infrastructure needs of larger communities and medium-sized municipalities. Infrastructure work is expected to include road rehabilitation; water, wastewater and sanitation improvements; and upgrading of schools and municipal buildings. The program will be closely coordinated with USAID/West Bank and Gaza's separate program to improve local government management under its democracy/governance SO. Recognizing that almost 50% of the population is under the age of 15, a separate Youth Services Program, to begin in FY 2000, will focus directly on the needs of this group, to provide a variety of activities to enhance the recreational, educational and training opportunities for young people. Possible Adjustments to Plans/Wye Funding: In FY 2000 and FY 2001, the scope and benefits of activities under this SO will be enlarged significantly using Wye Supplemental funds. Activities undertaken under the former Special Objective (SPO), "Selected Development Needs Addressed," have been upgraded to the level of a strategic objective to be renamed Improved Community Services. Total additional funding for this SO will be approximately $70.0 million. During implementation, the community services (294-008), village water (294-002) and maternal and child health (294-007) programs will coordinate their planning and operations to target the same communities, i.e., towns and villages, whenever appropriate. Other Donor Programs: The World Bank (with two projects totaling $51 million and $15 million) and the United Nation Development Program (UNDP) (with one project totaling $24 million) are the principal other donors providing direct assistance for village and municipal services and infrastructure development in the West Bank and Gaza. Many donors have selectively supported smaller public sector and NGO community development projects. Principal Contractors, Grantees or Agencies: Five U.S. private voluntary organizations are the direct grantees under this SO at present: Catholic Relief Services (CRS), the YMCA, Cooperative Housing Foundation (CHF), Save the Children (SCF), and America Near East Relief Aid (ANERA). Each of these U.S. grantees is working in partnership with one or more Palestinian NGOs. Palestinian NGO partners include the Palestinian Agricultural Relief Committees, the Palestinian Hydrology Group, the Patients' Friends Society, the Union of Palestinian Medical Relief Committees, the General Union of Disabled Palestinians, and the Palestinian Sports Federation of the Disabled. Selected Performance Measures: Baseline (1998) Actual (1999) Target (2000) Target (2001) Number of communities participating in program 0 0 100 250 Cumulative population in villages benefiting from improved services. 0 0 250,000 700,000 Number of children benefiting from public primary and secondary schools upgraded by USAID funded programs 0 0 2,000 4,000 Number of Palestinian youths participating in USAID funded counseling, recreation, and career development training. 0 0 20,000 100,000 Measures listed below include preliminary targets for the expanded program, which will be revised as individual programs are funded. 0 0 2,000 5,000 Number of handicapped youth benefiting from facilities funded by USAID grantees. ** ** 375 750 NOTE: The FY 2001 obligation plan for this SO is $40,644,000 in ESF composed of $5,644,000 in FY 2001 NOA and $35,000,000 in Wye funds. U.S. Finance Table (Microsoft Excel) ACTIVITY DATA SHEET PROGRAM: West Bank and Gaza TITLE AND NUMBER: Selected Development Needs Addressed, 294-005 STATUS: Continuing PROPOSED FY 2000 OBLIGATION AND FUNDING SOURCE: $100,000,000 ESF PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: -0- INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2002 Summary: Since 1996, this Special Objective has comprised a series of short-term activities, primarily those related to housing, strengthening of local institutions and emergency employment generation, which were initiated prior to the establishment of the USAID/West Bank and Gaza Strategy. These activities were completed by FY 1998. In late FY 1999, USAID funded two development needs under this objective: 1) community service delivery and 2) maternal-child health. In FY 2000, Strategic Objectives were established to accommodate expanded levels of programming in each of these areas. Descriptions of the community service and health activities are provided in separate activity data sheets. In FY 2000 and FY 2001, up to $100 million may be provided under this objective to facilitate implementation of the Wye River Memorandum. Assistance will support developmental and political goals consistent with USAID and Department of State strategies with special focus on steps to facilitate movement of goods and people across borders. Activities may include: support for people-to-people programming, funding for facilities and equipment for sea port operations, the procurement of cargo scanners to improve the flow of goods produced at the Gaza Industrial Estate, and other security equipment and storage facilities for the airport or for border crossings Key Results: Results of people-to-people activities will be reported by the Department of State's Public Diplomacy Bureau. USAID's support for various cross-border facilities and equipment will result in improved trade. Palestinian businesses, which rely on the import of raw materials or the export of finished products, can experience long delays due to Israeli procedures that currently regulate the flow of Palestinian trade. A well-functioning Palestinian sea and airport would facilitate exports and encourage private sector-led growth, by reducing transit time, decreasing shipment costs, and creating a more favorable trade environment which will attract foreign direct investment. Possible Adjustments to Plans/Wye Funding: None. Other Donor Programs: The Governments of France and Holland, along with the European Investment Bank, have pledged to fund the construction of offshore infrastructure required for the Gaza Sea Port. USAID assistance may complement this assistance by providing on-shore facilities to ensure the safety and efficiency of the port, and enhance its ability to handle increased volumes of trade. Completed in 1998, the Gaza Airport operates regularly scheduled commercial flights to Jordan, Morocco, and Egypt. Additional assistance is required to further develop the commercial potential of the airport's cargo facility. Principle Contractors, Grantees, or Agencies: Please see Community Service and Health Activity Data Sheets for data on these areas. The Department of State's Public Diplomacy Bureau will implement people-to-people activities. Funding will be transferred from USAID's operating year budget to the Department of State. U.S. contractors will supply the required services and commodities for upgrading the airport and seaport and provision of security-related infrastructure or equipment. Selected Performance Measures: Please see Community Services and Health Activity Data Sheets for further information. For assistance to the airport and seaport, performance measures will be developed prior to initiation of assistance. The Department of State's Public Diplomacy Bureau will develop indicators for, and report on, people-to-people activities. The FY 2001 obligation plan for this SO is $50,000,000 in ESF all composed of Wye funds. U.S. Finance Table (Microsoft Excel)

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