Following are statistics gathered from various sources that give a current and wide-ranging picture of the economic growth in the West Bank, of a process of amelioration which Israel has undertaken to support efforts to build and rehabilitate the Palestinian economy, of frameworks for dialogue and cooperation between us and the Palestinians, and of projects that have garnered the support of international community with the goal of rehabilitating the West Bank economy.

A: Israel’s Steps:

1. Transfer of Tax Funds:

Since the transfer of collected tax funds resumed in June 2007 (as per a Cabinet decision), funds are transferred at the beginning of every month into a bank account controlled by Salaam Fayyad.
The total transferred between June 2007 and September 2008 is approximately 6.5 billion NIS, of which 2 billion NIS were taxes collected prior to the resumption of the transfer system, i.e. from January 2006 through June 2007. Deduction of liabilities occurs per the Palestinian Authority’s liabilities to Israeli hospitals, the Israel Electric Company, and for water and sanitation services.
A glance at the chart of transfers from June 2007 until the present shows a general increase, which reflects the rise in economic activities in areas administered by the Palestinian Authority. It is not possible to separate between the statistics for the West Bank and those from the Gaza Strip.
For the month of September, NIS 226.5 was transferred (following the deduction of liabilities owed the Israel Electric Company). These funds were transferred earlier than the usual date, as per the Palestinians’ request, in honor of Id al-Fitr. For the month of October, NIS 206 million was transferred (after deducting for electricity and sewage).

2. Renewal of the Joint Economic Committee (JEC:

The JEC is a bilateral Israeli-Palestinian committee which was established by the Paris Protocol. The Committee’s goal is to follow the implementation of the Protocol and advance economic relations between Israel and the Palestinian Authority.
The Committee’s activities were halted in 2000 and renewed at the beginning of 2008. Since then, the Committee has met several times on a regular basis.
The Israeli side is headed by the Director General of the Finance Ministry Yarom Ariav and the Palestinian side was headed by Fayyad himself and is now headed by Fayyad advisor Dr. Karim Nashashibi.
The most recent meeting took place on 17 September.

3. Renewal of the Joint Legal Committee:

A bilateral Israeli-Palestinian Committee that was established by the Interim Agreements. It operated prior to 2000. Its activity was recently renewed, and the first meeting took place last August, with a new meeting scheduled for the near future. The Israeli side is headed by the Director General of the Justice Ministry Moshe Shilo, while the Palestinian side is headed by Ali Abu Diak of the Palestinian Justice Ministry. Topics of cooperation and building capabilities in the legal field, as well as discussion of solving ongoing legal issues are dealt with within the framework of the Committee.

4. Renewal of the Joint Liaison Committee

Recently, we instituted the renewal of a system that had existed previously under the umbrella of the donor nations. The system is mean to serve as a professional and local forum for coordinating the efforts of donor nations on the ground and, from our perspective, will allow Israel greater involvement in various projects to build capabilities and creation of an economic infrastructure. The Norwegian Foreign Minister announced the reinstatement of the system at the last donors meeting. The first preparatory meeting prior to the convening of the JLC (with the involvement of Israel, the PA, and relevant international bodies) took place in Israel on 13 November, headed by the Norwegians.

5. Removal of Roadblocks and Barriers:

During the recent months, either 132 (IDF) or 113 (COGAT) roadblocks were removed throughout the West Bank. The differences in number derive from differing classification of certain barriers.

Seven main roadblocks have been operating as “Normally Open,” meaning that free passage is allowed, except at times of an elevated threat level: Rimonim (31 March, between Ramallah and Jericho), 408 (28 April, between Nablus and the Jenin area), Beit HaArava (13 May), Kevashim (18 May, between Hebron and the Yata and Tamoon villages), Bir Naballah (21 August), Route 35 Bypass Junction (Hebron), and Shavei Shomron (09 August).

Route 35 from the Hazayit interchange (connecting Hebron and the Tarqumiyyah crossing) is open during the day (5:00-20:00) for truck traffic. A truck can now leave Hebron and travel uninterrupted on the main, direct road to Tarqumiyyah.

The hours of operation at roadblocks in the Jenin sector (Reihan and Gilboa) have been extended until 22:00 and until midnight when coordinated.

Efforts have been made to upgrade and reduce traffic at the Hawwara (Nablus), Tsir Lil (Ramallah), Wadi Nar (near Maale Adumim), and Taisir (leading to the valley). Furthermore, improvements have been made to the “Rachel Passage” (between Bethlehem and Israel) including a lane for humanitarian traffic, a shoulder for tourists, and additional biometric scanners to speed processing at the checkpoint. Biometric systems have been installed in the checkpoints around Jerusalem (Atarot, Rachel (as noted), and Zeitim). Work has been completed at Tsir Lil and Taisir, and is nearing completion at Hawwara and Wadi Nar. Work has not yet been completed at the Rachel Passage.

Total expenditures have totaled NIS 8.5 million for upgrading the checkpoints.

Currently, the upgrading of Beit Iba (western exit from Nablus) is in progress and the upgrade of the Einav checkpoint (Tul Karm) is planned.

6. Employment in Israel:

The allocation of work permits in Israel and settlements is stable at 51,000 workers. Since January 2008, the number of workers has risen from 43,000 to almost 49,000 due to the need for workers in agriculture, building, and Jewish industrial areas in the West Bank.

Approximately 9,700 businessmen from the West Bank have received entry permits into Israel; in other words, the number has remained steady.

Until the matter of a fee for a worker’s entrance to Israel is resolved, 1000 workers in the housing industry have been granted work permits without charge.

An agreement was reached to provide 5000 workers with permits to remain in Israel overnight (out of 23,000 Palestinian workers in Israel). To date, 2,564 have been distributed.

7. Checkpoints and Documentation:

Raising the number of documented senior businesspeople from 1,000 to 1,500. The documentation allows passage through the checkpoints including multiple entries into Israel. To date, 1100 Palestinian businesspeople have received this documentation.

Approval has been granted to move 150 agricultural and public transportation vehicles from the Northern West bank to the Jordan Valley.

Approval has been granted for Israeli Arabs to enter the Jenin area, without charge and seven days a week, in order to energize the city’s retail sector.

Hours have been expanded at the Allenby Crossing, which serves goods transported from the West Bank to Jordan. The crossing is open from the early morning hours until 20:00 (rather than 18:00)

8. Approval of Building Plans in Area C:

Building in Area C requires the completion of a statutory process. There are currently 14 outlines in the middle of the approval process, in addition to 13 approved in 2005-6. This matter concerns 27 Palestinian villages in Area C where illegal building deviated from the village boundaries. Expansion of the village territory will allow a reserve of land for future building and will legalize heretofore illegal structures.

9. Assistance in Developing Security Capabilities (Civilian Police):

As per General Dayton’s request, communications equipment and 148 vehicles have been transferred

A mechanism has been implemented to allow rapid coordination between the IDF and Palestinians.

Israel has agreed to open 20 Palestinian police stations (of which 4 will be in Jenin). To date, 18 have been opened.

Israeli approval has been given for the deployment of 700 Palestinian policemen. To date, 250 officers have been deployed in addition to the 578 permanently deployed in the Jenin area.

10. New Industrial Zones:

International efforts exist to build four industrial zones in the West Bank: In the Jenin area (Germany),  Jericho (Japan), and south of Bethlehem (France).

In Jenin—With German cooperation. The plans for the industrial park are in the process of receiving Palestinian approval. We are waiting for a document characterizing the sewage waste and for a suggestion of the Germans’ solutions to the problem of waste.

In Jericho—an agro-industrial complex under Japanese aegis. A feasibility study prepared by the Japanese International Cooperation Agency (JICA) will be released at the end of November of this year. This year, several four party meetings took place (Israel-PA-Jordan-Japan), including on the ministerial level. Work on preparing the infrastructure for the park will begin in 2009 with aid from the United Nations Development Programme (UNDP), while the Palestinians complete the necessary statutory processes, which they believe could be finished at the end of 2009. They estimate that the industrial area will begin production in 2010.
In an effort to promote investment in the project, three seminars took place this month before an audience of professional Arabs and Palestinians: Ramallah (06 November), Amman (11 November), and Dubai (13 November).

At the four-party talks in Jerusalem that took place in April, Israel initiated four workshops through the end of the year 2008, through MASHAV and the Agriculture Ministry. These workshops were aimed at training farmers and professional elements who will be involved in the future operation of the park. To date, the workshops have not taken place. In order to develop a supporting infrastructure, the Japanese have been in contact with the Mekorot Company and the Jordanian Electric Company.

In Bethlehem—A French initiative to build a small industrial zone that will, at first, remove the heavily-polluting stone industry from the confines of the city. Plans call for the area to be used for small businesses, local artwork, and textiles. The project is now in the stages of preparing a plan and feasibility and environmental studies undertaken by the French and the Palestinians.

11. Building Towns and Neighborhoods:

There are two main building plans:

1) Building the city of “Rawwabi” for 40,000 people near Ramallah. The project was initiated by Bashar al-Masri and is currently in the planning stages between al-Masri and the PA.

2) An initiative of private entrepreneurs to build a neighborhood in A-Sira A-Shamaliyya is advancing.

12. World Bank Sewage Treatment Plant Project in Gaza:

The first stage of the project has been completed. Israel assisted by permitting the crossings to open on a special basis for entry of the equipment necessary to finish the project. Israeli security has even approved the entry of equipment necessary for the next stage of the project so that the World Bank can proceed in soliciting bids for the second stage, in which the treatment plant will be built. The second stage will begin in April 2009.

13. Permit to Start a Second Cellular Company “Watania”

In July 2008, Israel set aside frequencies for the operation of a second cellular company in Palestinian areas. The process of granting approvals and operating licenses are expected to bring the PA $355 million, in addition to the creation of tens of new workplaces.

14. Building 4 Substations for West Bank Electricity Supply

The joint Israeli (Israel Electric Company) and Palestinian project, financed by the European Investment Bank.

The construction is expected to improve the electricity supply in the West bank and permit it to withstand the increasing demands. A detailed planning process has begun on the part of the Palestinians and the Israel Electric Company (which will carry out the project). The Israel Electric Company and the European Investment Bank are in the process of concluding the component of the transmission lines.

15. Jenin Project:

With the intention of concentrating efforts on one area that can serve as a model to other areas, security and economic efforts have been concentrated in on the Jenin area. The security element includes assembling and training a security and police force (Dayton), opening police stations (20 approved, 18 operational to date), transfer of communication and transportation equipment, and building coordination mechanisms with Israeli security forces.

The economic efforts consist of the alleviations and Israeli steps that have been previously detailed, including removal of roadblocks, increased permissions for businesspeople, permission for vehicular travel between the Northern West Bank and the Jordan Valley agricultural areas, analysis of the future infrastructure needs at the Jalameh industrial area, granting 1,000 permits to Palestinian construction workers with a preference for workers from the Jenin region, granting permission for overnight stays in Israel to 431 workers from Jenin (out of about 2,600 such permits granted in total), permission for Israeli Arabs to enter Jenin (an important step that helps commercial activity), permission granted recently for about 1,500 people from Jenin and the surrounding area to work in Northern Israel as olive pickers, and permission for tour busses to enter Jenin, among others.

A list of projects, dubbed “Jenin 2,” was recently assembled, consisting of 37 economic projects at a relatively low cost (about NIS 1.6 million), and capable of immediate implementation. These projects require the approval of donor nations to be implemented. The list has been passed along to the Blair team.

16. Conferences of Businesspeople to Encourage West Bank Investment

A conference of businesspeople, aimed at potential investors, took place in August in Bethlehem in order to encourage them to invest in the Palestinian Authority. Israel praised the meeting and helped the initiative by approving and coordinating the entry of about 700 participants, of whom approximately 50% came from Arab countries, some of which do not have relations with Israel. The conference was seen as a great success and the Israeli assistance was met with thanks and recognition from the Palestinians and the international community.

A conference of investors took place last week in Nablus, along similar lines though on a smaller scale, meant to encourage private-sector investment in the Northern Samaria region. The conference included prayers at the Temple Mount, study sessions for investors, and tours at projects and financial businesses in the Northern Samaria region. Abu Mazen and Salaam Fayyad both appeared at the conference. In order to ensure that participants’ entry and movement would proceed as needed, a joint Israeli-Palestinian operations center was established that operated throughout the conference. 160 Arab businesspeople took part (3 Saudis, 5 from the UAE and Bahrain, 2 Egyptians, and 129 Jordanians) as well as businesspeople, mostly of Arab extraction, who came from the USA, Canada, France, Sweden, and Britain; 40 Arab Israeli businesspeople, and about 1,000 Palestinians from the West Bank.

A conference to attract West Bank investors will take place in mid-December in London. The Israeli ambassador will be invited to take part in the opening event and the participation of a number of Israeli firms is possible.

B: Economic Goals—Indicators that Point to Growth in the West Bank:

Growth in transit of goods through West Bank checkpoints:

Growth of 66% from second half 2007 to first half 2008

Growth in transit of goods through Allenby crossing:

Growth of 23% from first half 2007 to first half 2008

Growth in number of Palestinian workers in Israel and settlements:

Comparing August 2008 to May 2006, the number of Palestinians employed in Israel rose from 24,200 to 51,000 (of whom 24,000 work in Jewish settlements in the West Bank

Lower unemployment rates in the West bank:

From 19% in the first quarter of 2008 to 16.3% in the second quarter.

The most dramatic drops were in the Northern West Bank, in Jenin and Tubas:

Jenin: 25.7% in the first quarter to 18.4% in the second quarter (28.4% decline)

Tubas: 23.6% in the first quarter to 12.9% in the second quarter (45.3% decline)

Tourism

The Palestinian Bureau of Statistics published materials showing that the tourism industry at the end of the second quarter of 2008 shows “unprecedented” growth.

Statistics from the ten months of 2008 show impressive growth in the number of tourists in comparison to the number last year.

Bethlehem showed growth of 87%, while Jericho’s tourist numbers grew 42%.