CEP II Year 3 Quarter 3 Report: (1 April – 30 June 2011) REVISED DRAFT

CEP II is implemented by Tetra Tech ARD, a contractor for the United States Agency for International Development (USAID). The program is a three-year initiative that will close out on 29 September 2011. CEP II is a flexible grant-making mechanism that has been able to adapt to the social, economic, and political climate of the West Bank and Gaza. In line with US government transformational developmental objectives, CEP II supports the voices and forces of moderation across the West Bank and Gaza and promotes opportunities for communities to link tangible improvements in their daily lives with positive developments in the Palestinian-Israeli peace process. CEP II works with local and national Palestinian Authority entities and local non-governmental organizations to deliver this assistance. In addition to its work as a USAID democracy and governance program, following an intensive Israeli military campaign in late 2008, CEP II was expanded to help reduce the economic stress of marginalized and vulnerable households through the provision of humanitarian assistance and support early recovery by identifying and creating sustainable economic opportunities. This expansion aimed to address the immediate needs of affected communities while promoting long-term development. The program's activities are focused on three main objectives: promoting democratic governance, supporting economic development, and enhancing humanitarian assistance. CEP II has been able to adapt its approach to respond to changing circumstances in the region, including the ongoing Israeli-Palestinian conflict and the impact of the global economic crisis. In the first quarter of 2011, CEP II continued to support a range of activities aimed at promoting democratic governance, including the provision of grants to local civil society organizations and the implementation of a program to enhance the capacity of Palestinian Authority institutions. The program also continued to provide humanitarian assistance to vulnerable households, including food assistance and cash transfers. CEP II's work in the West Bank and Gaza has been focused on supporting the development of a more inclusive and equitable society. The program has worked with a range of local and national partners to promote democratic governance, support economic development, and enhance humanitarian assistance. Through its activities, CEP II has aimed to contribute to the creation of a more stable and prosperous Palestinian state. In the second quarter of 2011, CEP II continued to implement its activities aimed at promoting democratic governance, supporting economic development, and enhancing humanitarian assistance. The program provided grants to local civil society organizations to support their work in promoting democratic governance and economic development. CEP II also continued to provide humanitarian assistance to vulnerable households, including food assistance and cash transfers. CEP II has supported a range of activities aimed at promoting democratic governance, including the provision of grants to local civil society organizations and the implementation of a program to enhance the capacity of Palestinian Authority institutions. The program has also provided humanitarian assistance to vulnerable households, including food assistance and cash transfers.