Allowances Due to Beneficiaries of Ministry of Social Affairs’ Cash Support Programme

The Palestinian Authority’s (PA) cash support programme has been providing vital assistance to vulnerable families and civil servants, but a new initiative aims to ensure that beneficiaries receive their allowances in a timely manner.

Background

As part of the PA’s efforts to develop a market economy led by the private sector, the European Union (EU) is supporting the creation of a proper environment for Palestinian businesses to flourish. The EU has allocated EUR 10 million for Component 3: Private Sector Arrears, which aims to facilitate the payment of debts owed to private sector businesses.

Benefits of the Programme

According to the PA, the cash support programme has been instrumental in providing relief to Palestinian families and civil servants, raising their purchasing power and ensuring the employment of thousands of workers. The situation has become particularly acute in the health sector.

• Provides vital assistance to vulnerable families and civil servants
• Raises purchasing power and ensures employment for thousands of workers
• Supports the health sector

EU Contribution

The EU’s contribution is expected to be complemented by contributions from other donors, with fluctuations in exchange rates potentially impacting funding needs. Part of the amount may be paid in 2011, subject to the adoption of Amending Budget 6/2011 and the availability of payment credits.

Implementation Issues

The project will be implemented through a financing agreement signed with the PA, with direct centralised management applied for all components. Disbursements will be made by the Commission directly to eligible beneficiaries following eligibility checks and verification procedures.

• Financing agreement signed with the PA
• Direct centralized management for all components
• Eligibility checks and verification procedures

Evaluation and Audit

Financial experts and qualified auditors will work on PEGASE, complemented by Commission and Member States specialists and international or local experts. Advanced monitoring, control, and audit systems are in place for all activities, with donors having full access to corresponding reports.

• Annual ex-post audit of the programme
• Mid-term evaluations every 18 months
• Final evaluation after three years of implementation