The Hindu : U.S. fulfils aid promise to P.A.

Online edition of India's National Newspaper
Thursday, Jul 17, 2003

International

International

U.S. fulfils aid promise to P.A.

JERUSALEM july 16. The United States on Wednesday handed over $20 millions to the Palestinian Authority, the first time it has given money directly to the administration chaired by Yasser Arafat, U.S. and Palestinian officials said.

The money, part of a multimillion-dollar package of aid to Palestinian communities, is for repairing and then maintaining roads, public buildings and power, water and sewage lines damaged in almost three years of fighting with Israel.

The payment, pledged during a recent visit by the National Security Adviser, Condaleezza Rice, is to go into an official account administered by the Palestinian Finance Minister, Salam Fayad, a former World Bank official charged with introducing controls to the authority's previously murky finances. ``We're happy with Fayad, we think he's done a good job and he has our full support,'' a U.S. official said on condition of anonymity.

Jihad al Wazir, Assistant Deputy Minister of Planning, confirmed that this was the first direct transfer of U.S. aid money to the Palestinian Authority. Another $30 millions in aid is being channelled through local and international non-governmental organisations.

Until now, the United States has bypassed Mr. Arafat and the Palestinian Authority, funnelling aid to Palestinians through the United Nations and other organisations.

Ms. Rice was in the region to push for implementation of a U.S.-sponsored ``road map'' plan for West Asia peace.

In the first stage of the peace plan, violence is to cease and Israel is to withdraw its troops from Palestinian areas reoccupied during the current conflict.Also, Israel is to halt construction of settlements in the West Bank, and the Palestinians must dismantle violent groups.

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