MEMO/08/50
Brussels, 28 January 2008
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INSTITUTION BUILDING PEGASE activities and projects in this sector are open to all contributors. PEGASE will build on the ongoing EC institution building portfolio.
The European Commission attaches great importance to helping improve Palestinian public financial management. A major three-year €4m project to support the Ministry of Finance's Internal Audit and Internal Control departments was re-started on 20 May 2007. The first key objective of the re-launched project was to provide refresher training in internal audit in Ramallah in July for West Bank staff. Subsequently the project team agreed and disseminated a new vision and structure for the internal control departments. A review of the internal controls at the Ministries of Health and Public Works was undertaken to identify specific recommendations for the internal control organisation model for ministries. The Ministry of Finance has requested enhanced activities under the programme and the European Commission has offered to reorient the programme in 2008 to support the newly created office of the Accountant General. A basic three-month induction programme for the West Bank staff of the external audit institute – the Financial and Administrative Control Bureau – was undertaken July-September. PEGASE will build upon these activities.
A related objective of our ongoing activities is to enhance the PA's revenue base. We are currently supporting roll-out in Palestinian Customs of the ASYCUDA – Automated System for Customs Data – system. This two-year programme of €2.7m was signed on 6 August 2007. In December the core project team attended training sessions in Geneva. The project will ensure automation of all Palestinian customs operations and risk management functions, including at international border and domestic crossings. Separately we have undertaken a needs assessment for PA customs management. We are also preparing to roll-out a bespoke computerisation system for the Palestinian Tax Administration.
Regulation of the Palestinian banking sector has been remarkably effective in spite of the difficult environment, and we have undertaken initial work to develop a new management information system for the Palestine Monetary Authority to be provided under PEGASE.
We have also continued to improve small businesses' access to capital through the European-Palestinian Credit Guarantee Fund. By the end of 2007, 208 guarantees had been issued for loans totalling $5.6m to businesses employing 1,112 people. In addition 220 bankers have been trained since its inception in the six partner banks through which we work.
Other support to the private sector has included our ongoing support to the Palestinian Shippers' Council (PSC), established with our funding. Providing information and advice on import and export procedures affecting Palestinian shippers, in the last nine months its membership has risen to some 350 shippers from both the West Bank and Gaza. We also launched a new €400,000 project with PalTrade and the PSC in December 2007 to research trade facilitation options for the Palestinian economy and mobilise the Palestinian, Jordanian and Egyptian private sector on a trade facilitation agenda for Palestinian trade routes.
We attach critical importance to helping promote a society based on the rule of law. Our "Empowering the Palestinian Judiciary" programme addresses key needs of the judicial system through specific training programmes for judges and court administrators. To complement institutional support and the development of a permanent professional training system, the project is also assisting the development of a case law database with Bir Zeit University. This work will continue under PEGASE.
We have also continued our support to the Central Elections Commission (CEC) and have supported the CEC's operational activities throughout 2007, remaining the largest donor to this organization. This allowed the CEC to undertake its voter registration update. Over 60,000 new voters were registered, over 75% of them being under 22 years old.
