PEGASE

PEGASE is the European Union’s Mechanism created to support the Palestinian people. Launched on February 1st 2008, PEGASE replaces an earlier EU mechanism, the Temporary International Mechanism (TIM). The programs that are financed through PEGASE are designed to support the three year Palestinian Reform and Development Plan (PRDP), which was presented by the Palestinian Authority Prime Minister, Dr. Salam Fayyad, at the Paris Donor Conference of 17 December 2007.

What kind of support?

The EU provides two key types of support through PEGASE:

  • First, the EU is providing direct financial assistance to the Palestinian Authority, to help it to deliver public services throughout the occupied Palestinian territory. EU funds therefore go towards the salaries of civil servants and pensioners, helping to ensure that vital services – such as schools and hospitals – can keep operating. Funds are also provided to the more vulnerable Palestinian families, through a social allowances scheme which is coordinated with the Palestinian Ministry of Foreign Affairs. Finally, EU funds help to ensure that the people of Gaza have electricity, by purchasing the fuel that is needed to run the only Gaza power plant.
  • Secondly, through PEGASE, the EU aims at shifting away from short-term, emergency assistance to a sustainable Palestinian development process, widening the range of activities supported in the West Bank, Gaza and East Jerusalem. The EU is supporting major infrastructure development projects that will deliver concrete benefits to Palestinians in areas such as better water and sanitation, safer schools, safer electricity networks and better roads. In addition, the EU funds a wide range of projects that support the priorities of the Palestinian authority in areas such as judicial reform, support to the Palestinian civilian police, enhancing the health and education systems and improving public financial management. EU funds also support the PA’s efforts to create an environment that is more business-friendly and more supportive of trade.

Other EU’s contributions in the Palestinian territories

The EU’s support to Palestinians through the PEGASE mechanism is complemented by EU programs devoted to Palestinian refugees, through UNRWA and non-State actors including international NGOs, as well as the humanitarian and food aid programs of ECHO. Finally, the EU provides direct support to local civil society organizations in the fields of human rights, democracy-building, youth, gender, media and culture. PEGASE is a mechanism which is open to all donors, including those outside the European Union, and international organizations.

The creation of PEGASE: an answer to specific contexts and steps

In June 2006, European member States and the European Commission established the Temporary International Mechanism (TIM), to provide direct assistance to the Palestinian people.  The TIM was set up because the European Union did not want to deal with the Hamas-led government. The EU, as the main donor to the Palestinian people, set up the TIM to be able to continue to address the basic social needs of the Palestinian population and focus on delivering aid to the poorest Palestinians, while bypassing the Hamas-led government.

Following the establishment of a new interim government in 2007, under the leadership of Prime Minister Salam Fayyad, the EU renewed contacts, cooperation, and assistance to the Palestinian Authority. Since then, the TIM was gradually adapted to work more closely with the Palestinian administration.

On 17 December 2007, France co-hosted a major conference for international donors, at which over $7.7 billion of assistance was pledged. The European Union (Member States and European Commission) alone pledged a total of $3.4 billion to be committed over the next three years (2008 – 2010).

Donors

Mobilising and managing contributions from donor countries was one of the achievements of the Temporary International Mechanism (TIM). PEGASE builds on the experience under the TIM, which attracted contributions from 19 international donors, of which 15 EU Member States, for a total of more or less €200 million.

Since it was launched in February 2008, the PEGASE mechanism has disbursed (at 31 January 2009) €409.2 million in direct financial support. It has also managed over €131 million in financing from 14 Member States of the EU of which 78% was disbursed in the same twelve month period. It has thus managed total commitments of financing from the EU and other donors of over €551 million. All of its programmes benefit both the Gaza population and the population of the West Bank.

PEGASE channels aid through five different payment systems, tailored to match the nature of each activity. Donors can contribute to any of these, depending on their priorities and their specific requirements.

PEGASE makes extensive use of the Palestinian Authority Single Treasury Account (STA) while securing a high level of monitoring, control and audit.

Any donor wishing to participate to PEGASE signs an agreement with the PA and the European Commission to define how the donor’s contribution will be managed. The secure monitoring and control systems set up under PEGASE ensure that the funds are used as agreed. The contributing donor is kept informed by PEGASE on progress of the activities of this mechanism through regular contacts and reports.

During a new donors conference in Sharm-el-Sheikh in March 2009 aimed at the reconstruction of the Gaza strip, Benita Ferrero-Waldner said, « PEGASE is quick, effective, efficient and in compliance with the highest international standards of monitoring and control. In Sharm-el-Sheikh, I will reiterate our offer to all donors to use PEGASE to channel their assistance to the people in Gaza. »

In Gaza, PEGASE is currently used for the provision of fuel for production of electricity, for the payment of social allowances to 24,000 vulnerable families, as well as the salaries of over 28,000 civil servants and pensioners. Since its establishment in January 2008, PEGASE has allowed the delivery of over €550 million (€421 million Community funds; €130 million from other donors) assistance to the Palestinians.

Source:

http://ec.europa.eu/external_relations/occupied_palestinian_territory/index_en.htm

PEGASE is the European Union’s Mechanism created to support the Palestinian people. Launched on February 1st 2008, PEGASE replaces an earlier EU mechanism, the Temporary International Mechanism (TIM). The programs that are financed through PEGASE are designed to support the three year Palestinian Reform and Development Plan (PRDP), which was presented by the Palestinian Authority Prime Minister, Dr. Salam Fayyad, at the Paris Donor Conference of 17 December 2007.
What kind of support?
The EU provides two key types of support through PEGASE:
First, the EU is providing direct financial assistance to the Palestinian Authority, to help it to deliver public services throughout the occupied Palestinian territory. EU funds therefore go towards the salaries of civil servants and pensioners, helping to ensure that vital services – such as schools and hospitals – can keep operating. Funds are also provided to the more vulnerable Palestinian families, through a social allowances scheme which is coordinated with the Palestinian Ministry of Foreign Affairs. Finally, EU funds help to ensure that the people of Gaza have electricity, by purchasing the fuel that is needed to run the only Gaza power plant.Secondly, through PEGASE, the EU aims at shifting away from short-term, emergency assistance to a sustainable Palestinian development process, widening the range of activities supported in the West Bank, Gaza and East Jerusalem. The EU is supporting major infrastructure development projects that will deliver concrete benefits to Palestinians in areas such as better water and sanitation, safer schools, safer electricity networks and better roads. In addition, the EU funds a wide range of projects that support the priorities of the Palestinian authority in areas such as judicial reform, support to the Palestinian civilian police, enhancing the health and education systems and improving public financial management. EU funds also support the PA’s efforts to create an environment that is more business-friendly and more supportive of trade.
Other EU’s contributions in the Palestinian territories
The EU’s support to Palestinians through the PEGASE mechanism is complemented by EU programs devoted to Palestinian refugees, through UNRWA and non-State actors including international NGOs, as well as the humanitarian and food aid programs of ECHO. Finally, the EU provides direct support to local civil society organizations in the fields of human rights, democracy-building, youth, gender, media and culture. PEGASE is a mechanism which is open to all donors, including those outside the European Union, and international organizations.
The creation of PEGASE: an answer to specific contexts and steps
In June 2006, European member States and the European Commission established the Temporary International Mechanism (TIM), to provide direct assistance to the Palestinian people.  The TIM was set up because the European Union did not want to deal with the Hamas-led government. The EU, as the main donor to the Palestinian people, set up the TIM to be able to continue to address the basic social needs of the Palestinian population and focus on delivering aid to the poorest Palestinians, while bypassing the Hamas-led government.
Following the establishment of a new interim government in 2007, under the leadership of Prime Minister Salam Fayyad, the EU renewed contacts, cooperation, and assistance to the Palestinian Authority. Since then, the TIM was gradually adapted to work more closely with the Palestinian administration.
On 17 December 2007, France co-hosted a major conference for international donors, at which over $7.7 billion of assistance was pledged. The European Union (Member States and European Commission) alone pledged a total of $3.4 billion to be committed over the next three years (2008 – 2010).
Donors
Mobilising and managing contributions from donor countries was one of the achievements of the Temporary International Mechanism (TIM). PEGASE builds on the experience under the TIM, which attracted contributions from 19 international donors, of which 15 EU Member States, for a total of more or less €200 million.
Since it was launched in February 2008, the PEGASE mechanism has disbursed (at 31 January 2009) €409.2 million in direct financial support. It has also managed over €131 million in financing from 14 Member States of the EU of which 78% was disbursed in the same twelve month period. It has thus managed total commitments of financing from the EU and other donors of over €551 million. All of its programmes benefit both the Gaza population and the population of the West Bank.
PEGASE channels aid through five different payment systems, tailored to match the nature of each activity. Donors can contribute to any of these, depending on their priorities and their specific requirements.
PEGASE makes extensive use of the Palestinian Authority Single Treasury Account (STA) while securing a high level of monitoring, control and audit.
Any donor wishing to participate to PEGASE signs an agreement with the PA and the European Commission to define how the donor’s contribution will be managed. The secure monitoring and control systems set up under PEGASE ensure that the funds are used as agreed. The contributing donor is kept informed by PEGASE on progress of the activities of this mechanism through regular contacts and reports.
During a new donors conference in Sharm-el-Sheikh in March 2009 aimed at the reconstruction of the Gaza strip, Benita Ferrero-Waldner said, « PEGASE is quick, effective, efficient and in compliance with the highest international standards of monitoring and control. In Sharm-el-Sheikh, I will reiterate our offer to all donors to use PEGASE to channel their assistance to the people in Gaza. »
In Gaza, PEGASE is currently used for the provision of fuel for production of electricity, for the payment of social allowances to 24,000 vulnerable families, as well as the salaries of over 28,000 civil servants and pensioners. Since its establishment in January 2008, PEGASE has allowed the delivery of over €550 million (€421 million Community funds; €130 million from other donors) assistance to the Palestinians.

Source:
http://ec.europa.eu/external_relations/occupied_palestinian_territory/index_en.htm