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Palestine Investment Conference Set for May 21-23 in Bethlehem

By Merle D. Kellerhals Jr.

A gathering of political and business leaders at the Palestine Investment Conference in Bethlehem is aimed at spurring investor interest in the Palestinian Territories by showcasing business opportunities and projects ready to be launched, says Deputy U.S. Treasury Secretary Robert Kimmitt.

"The Palestinian Authority will educate and inform investors about the local business climate and demonstrate the growing potential for profitable businesses in the Palestinian Territories," Kimmitt said at a briefing May 20. Kimmitt will lead a U.S. delegation of political and business leaders to the conference.

The investment conference, being held in Bethlehem May 21-23, is part of the intensive Middle East peace initiative launched at the 2007 Annapolis Conference to reach an agreement for the creation of a Palestinian state living side by side in peace with Israel. It has been a significant focus of President Bush and Secretary of State Condoleezza Rice to improve the economic prospects for the Palestinian people, Kimmitt said. A parallel goal is to help the political process being negotiated between the Israelis and Palestinians.

A significant U.S. goal is to reach an agreement by the end of Bush's final year in office that will outline the creation of a Palestinian state, though there are core issues to be resolved.

Kimmitt said the conference has attracted widespread participation from the public and private sectors, including Middle East Quartet envoy Tony Blair, French Foreign Minister Bernard Kouchner and executives from such companies as Intel, Cisco and Merrill Lynch.

"Over the next three days, we aim to, first, showcase Palestinian Prime Minister [Salam] Fayyad's excellent economic management, as demonstrated through the timely implementation of his Palestinian reform and development plan," Kimmitt said. "Second, highlight the U.S. government's commitment to catalyzing private-sector growth in the West Bank."

In addition, Kimmitt said the United States is providing economic and development assistance to the private sector through four programs:

. An Overseas Private Investment Corporation (OPIC) $500 million lending facility to help Palestinians buy much-needed housing.

. Initiatives launched by the U.S. Commerce Department and the Trade and Development Agency to promote U.S.-Palestinian business links and improve Internet accessibility in the West Bank.

. A U.S.-Palestinian public-private partnership to develop several quick-impact projects to promote job creation in the West Bank.

. The Middle East Investment Initiative, a $228 million loan-guarantee facility for small- and medium-size enterprises, backed partly by OPIC and created in conjunction with the private Aspen Institute.

Kimmitt said the question of transportation of goods and services and access to cities within the West Bank is crucial to economic development and prosperity for the Palestinian Territories. He said security concerns often have presented problems, but certainly more needs to be resolved to foster the economic growth this conference is trying to achieve.

"Our view is that there has to be an integrated approach to these questions of movement and access that looks at three issues - security, movement and access, and, third, potential for economic prospects," he said. "And what we're trying to do is to come up with concrete steps that can move all three together in an integrated fashion."

Source: U.S. Department of State