Project profile — Institutional Support to the Office of the Quartet

Under the Office of the Quartet (OQ) 2021-23 Strategy, the OQ ultimately seeks to maintain and build dialogue between the Palestinian Authority (PA) and the Government of Israel to increase Palestinian economic and institutional development and empowerment. To achieve this, each sector has a dedicated outcome with supporting short and medium-term activities to reach these goals, including: • The Palestinian energy sector is affordable, secure and sustainable; • The Palestinian water sector is affordable, secure and sustainable; • Palestinian mobile communications and backhaul networks are upgraded • Justice and security is delivered more effectively and based on democratic principles; and • The fiscal and financial stability of the Palestinian Authority (PA) is enhanced. Over the lifecycle of the project, Canada will support the OQ to develop an interim strategy as well as a longer-term 2024-2026 Strategy, which is anticipated to have similar structure and targets. Given the unique nature of the project, the targets cannot be quantified in numbers. Conversely, the achievement of change will be measure through productive engagement with stakeholders on the various files within the five sectors. Regarding sustainability, the OQ’s role to provide policy and facilitation support to the PA will help ensure that sustainability is built into the necessary files and policy reforms for a strong, stable, PA.

The purpose of this project is to provide institutional support to the Office of the Quartet (OQ). The OQ works to increase Palestinian economic and institutional development empowerment while maintaining close coordination with the Government of Israel to lay the groundwork for a final status agreement between the two parties. The OQ is currently operating under their 2021-2023 Strategic plan which is comprised of sectoral strategies related to five areas of work: (1) energy, (2) water, (3) movement and trade, (4) rule of law, and (5) telecommunications. Canada's contribution of $4.5M over three fiscal years (2023-24 to 2025-26) will contribute to supporting the OQ's mandate under the 2021-2023 Strategy, the development of the 2024-26 Strategy, and the OQ's response to the current crises in Gaza and the West Bank.

Results achieved as of December 2024: Gaza Basic Services: Partial restoration achieved, water supply at ~70% of pre-war levels, limited telecom coverage, and one electricity feeder line powering a desalination plant (16,000 m³/day). Overall progress remains far below needs. Energy Sector: Initiatives to reduce $700M annual electricity import costs; renewable energy permits (300 MW solar) stalled; Gas for Gaza project paused but still viable, promising $80M annual savings and major CO2 reductions. Water Sector: Severe West Bank shortages; OQ supported drilling plans for 22 wells and tariff analysis. Wastewater reuse could yield $65M/year, but Israeli unilateral plans conflict with PA strategy. Governance & Fiscal Stability: Justice and security sectors in Gaza devastated; PA faces $1.86B deficit. OQ reviewed Paris Protocol to address clearance revenue deductions and supported digitalization of court processes. Economic Impact: Trade collapsed, WB-Gaza down 96%, Door-to-Door shipments down 39%. West Bank industry sales fell 29%, with widespread layoffs. OQ launched bridging programs and ABCD initiative to stabilize economy.