This paper presents the framework for the development of the
transportation sector in the Palestinian territories. These territories, which
are evolving towards being an independent state, after the Israeli withdrawal
from Gaza Strip and parts of the northern West Bank in August 2005, are
considered to represent an economy in transition. The paper considers a
medium-term developmental framework, which covers the various components of the
multimodal physical transportation system, as well as the institutional
infrastructure. The needs have been identified based on a diagnostic study of
the conditions of the transportation system in the West Bank and Gaza Strip.
The transportation infrastructure suffered for about 28 years of occupation
since 1967, as well as for the past five years during the current crisis. The
recent and expected considerable changes on the ground require reformulation of
the transportation sector development strategies. The paper presents a
suggested outline for a five-year development program for the maintenance,
rehabilitation, and development of the road, air, and sea transportation
infrastructure. The program also identifies actions to support the development
of public and freight transportation systems. It includes as well recommended
policy changes to the current institutional, regulatory, and financial
frameworks. Finally, the program estimates funding requirements for development
of the physical infrastructure and technical assistance. The required capital
investment and recurrent expenditure sum to slightly above one billion US
dollars. The output can be used to facilitate approaching the international
community for anticipated intervention responding to the sectoral needs.
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