The UK has so far contributed£9 million to the Temporary International Mechanism (TIM). Three million pounds was provided in August 2006 for the purchase of health supplies, £3 million was paid in allowances to the poorest PA workers in November 2006 and £3 million was provided for essential operating, maintenance and repair costs for water, sanitation and electricity services in November 2006. Substantial funding through the TIM has also been provided by the European Community and EU member states. Other Quartet members have not yet contributed.
In total, approximately £117 million in EU funding is expected to be disbursed through the TIM by the end of 2006. Monthly expenditure through the TIM for the period between July and October 2006 was as follows:
Non-salary recurrent costs Emergency relief Social allowances Total July — 0.625 — 0.625 August — 0.625 4.3 4.925 September — 6.125 31.7 37.825 October 2.6 0.625 19.2 22.425
So far Israel has not paid outstanding Palestinian clearance revenues through the Temporary International Mechanism (TIM). According to International Monetary Fund reporting Israel has used some clearance revenues to pay Palestinian utility bills owed to Israeli state companies. We understand that this was agreed to by the Palestinian authorities. Israel has also offered to use the Palestinian clearance revenues to procure health supplies. However, we understand that this was not accepted by the Palestinian presidency, as it objected to Israel dictating how its revenues were spent.
The Quartet (the EU, US, UN and Russia) agreed on 20 September to continue and expand the Temporary International Mechanism (TIM) in the light of the continuing needs of the Palestinian people.
Total EU funding through the Temporary International Mechanism (TIM) now significantly exceeds levels of previous direct assistance to the Palestinian Authority. Total budgetary aid to the Palestinian Authority in 2005 was around £65 million. Aid for Palestinian basic needs through the TIM will reach around £117 million this year.
The TIM is making a real impact in mitigating the humanitarian situation. Largely because of increased aid levels, the World Bank has revised its 2006 GDP forecast from a decline of 26 per cent. to a decline of9 per cent. Without the TIM and other aid, notably from Arab donors, the situation for Palestinians would be far worse than it is now.
The Quartet, in its statement of20 September, extended the Temporary International Mechanism (TIM) until the end of 2006. Should a Palestinian Government with a platform based onthe Quartet's principles be formed, the EU and other donors are likely to seek to resume financial assistance as soon as possible. In the meantime the humanitarian case for direct assistance to the Palestinian people remains and there is a need for mechanisms to deliver this, such as the TIM. A decision on whether further to extend the TIM is likely before the end of the year.