Press Release

OPEC Fund extends US$2.5 million grant for housing program for handicapped and poor families in Palestine

103/2005 September 20, 2005, 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 I of an urgent housing program in Palestine. The program is a joint initiative of the OPEC Fund and the Arab Fund for Social and Economic Development and aims to respond to the critical housing needs brought on by the destruction of homes and deteriorating economic conditions in the West Bank and Gaza Strip.

Conditions in Palestine remain severe, with the enforcement of 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. According to an assessment undertaken by the Palestinian Housing Committee, more than 35,000 housing units in the West Bank need to be constructed, while some 2,000 homes require extensive refurbishment.

In response to this crisis, the first phase of the Program will target the hardest-hit communities in the West Bank and be carried out in two components. The OPEC Fund grant will fully finance the restoration of 632 community houses for the physically handicapped and for needy families, while the Arab Fund contribution will provide concessional credit for the construction and refurbishing of 280 housing units to accommodate middle/low income families. Local communities will also benefit from the creation of around 32,650 man/day job opportunities

The initiative will be executed by the Palestinian Housing Council, one of the largest establishments operating in Palestine. Phase II, which will be carried out at a later date, will undertake similar works in the Gaza Strip.

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 finance the rehabilitation and construction of damaged homes and public buildings, the purchase of emergency medical equipment, assistance to Palestinian universities and a micro-credit scheme, together with a number of social and capacity-building projects.