Palestinian Territories

country map section Palestinian Territories

Country map section Palestinian Territories. Source: KfW

Country Information

Meeting Basic Needs 

Nearly 40 years of Middle East diplomacy have failed to bring peace to the Palestinian Territories (PT) and Israel. In the PT, particularly in the Gaza Strip, the situation for the population has significantly worsened in recent years. On behalf of the German Government, KfW Entwicklungsbank is actively helping to improve the living conditions of the people in the PT, and it is also supporting a dialogue surrounding technical matters and projects between the Israeli and the Palestinian side. more


Priority Areas of Cooperation:

Focussing on Water and the Economy

German Development Cooperation with the Palestinian Territories (PT) focuses on improving water supply, sanitation and solid waste disposal as well as on promoting sustainable economic development and good governance. In these areas it is perceived as an important partner of the Palestinian National Authority and other international donors. The primary objective of German Development Cooperation is to support the needy population, to foster economic and social development and to sustainably conserve the natural resources of the PT. Measures aimed at sustainable economic development are particularly designed to strengthen business structures and to secure jobs and income. Because of the difficult political and economic conditions in the Palestinian Territories, the implementation of individual programmes requires considerable effort and often involves long delays. more


Projects and Programmes:

Water is a source of conflict

The extreme water poverty in the Palestinian Territories is felt particularly acutely in the urban agglomerations there. The over-utilisation of groundwater resources, rapid population growth, high water system losses and not least the palpable impacts of climate change have placed strong constraints on water supply. In the city of Nablus, some districts have running water on only two days of the week. The population suffer as a result. Since the end of 2007 people in the district of Rafidia have been benefiting from a water loss reduction programme supported by Financial Cooperation (FC) and implemented through KfW Entwicklungsbank. The fact that the measures have been successfully implemented is due above all to the personal commitment of our Palestinian partners. more

Safeguarding Businesses 

The conflict between Palestinians and Israelis in the West Bank and Gaza Strip has had dire social and economic consequences for the Palestinian population. Constant blockades and repeated border closings severely restrict the movement of people and goods. The restrictions on economic activity also increase the rate of unemployment in the Palestinian Territories. Around 18 per cent of the Palestinians in the West Bank and 39 per cent in the Gaza Strip were unemployed in 2009. According to the UNDP, approximately 31 per cent of the Palestinians in the West Bank and 56 per cent in the Gaza Strip now live below the poverty line. The credit guarantee fund EPCGF, which is being financed under German Financial Cooperation (FC), is intended to help prevent the deterioration of market economy structures. more

The joy of learning

KfW Entwicklungsbank has been active in the Palestinian Territories on behalf of the German Government for almost twenty years. The Employment Generation Programme (EGP) offers the working-age population paid jobs, while schools are being renovated or newly built and local companies supply furniture and equipment for classrooms. Overall 81 schools have been built so far and a further 35 schools are currently in the planning or implementation phase. more