RAMALLAH, 25 November 2024 - Germany is a long-standing partner of Palestinian municipalities in both the West Bank and Gaza. Since 2005, German development cooperation provided more than EUR 160 million to the Municipality Development and Lending Fund (MDLF) and its Municipality Development Program (MDP), supporting local infrastructure and the improvement of services to Palestinians.

Today, Germany, through its KfW Development Bank, and the MDLF, represented by its General Manger, Mohammad Ramahi, signed two additional contributions totaling EUR 23 million. The event took place under the auspices of H.E. Dr. Sami Hijjawi, Minister of Local Government, and H.E. Dr. Wael Zakout, Minister of Planning and International Cooperation and in the presence of several Mayors and representatives of the Association of Palestinian Local Authorities (APLA).

German Permanent Representative Oliver Owcza: „The ongoing armed conflict is causing terrible human suffering. It also has dramatic implications for the economy and the fiscal situation of municipalities. Germany therefore increases its support to the Municipality Development and Lending Fund. From my many conversations with local authorities and several visits to cities and villages over the last years I know: Municipalities are the administrative backbone of Palestine. They are close to people’s needs and try their best to provide services even under extreme difficult circumstances. From my own country I know that democratic and efficient municipalities help to build a strong state. We therefore support the PA’s reform agenda and its goal to improve the delivery of social services.“

EUR 18 million of the additional funding goes to the MDP and will support investments in roads, electricity, water, social infrastructure, solid waste management, etc. Priorities are defined by municipalities themselves through their „Strategy Development and Investment Plans“. Funding will also contribute to modernizing municipalities and bringing government services closer to the people.

EUR 5 million goes to the MDLF’s emergency window which was established as a reaction to the ongoing conflict and its devastating impact on local communities and the economy. This funding will help municipalities to cover operating costs and will support cash for work measures addressing the high unemployment rate. Municipalities in Gaza will benefit within the scope possible.