West Bank and Gaza CEP Quarterly Reports 1 & 2: 1 October 2008 – 31 March 2009

foreign policy objectives towards a viable, democratic Palestinian state living in peace and security with Israel and her neighbors. The program provides a flexible grants program focused on visibly improving the quality of life for Palestinians in the West Bank and Gaza. CEP II is a follow-on program to CEP I, initiated in January 2008, and builds upon interventions undertaken from June 2005 until December 2007 under USAID's Office of Transition Initiatives (OTI) to bolster prospects for peace in the region. An important addition to the new program is the capacity building component, which did not exist under OTI or CEP I. CEP II will identify 10 institutions, including public and semi-public offices as well as nongovernmental organizations (NGOs), working in different sectors as long-term partners to help them improve their structure, efficiency, and service provision capacity. The program started in October 2008 with two strategic objectives aimed at promoting stability and democratic reform in the Palestinian Territory. However, recognizing the critical role of humanitarian assistance to the people in the Gaza Strip after the Israeli "Cast Lead" military operation that started on December 28, 2008, CEP II has added two new strategic objectives for the current phase of program implementation. The four objectives of CEP II are: 1) Support initiatives and processes that support a democratic, peaceful, and prosperous Palestinian state; 2) Strengthen reform-minded Palestinian leaders and institutions in support of improved service provision and increased responsiveness to citizen needs; 3) Supply basic humanitarian commodities to disadvantaged groups, to preserve hope and moderation among impoverished populations; and 4) Distribute food and relief items directly or through work and training, to preserve hope and moderation among impoverished populations. The program complements other activities of the USAID/West Bank and Gaza Mission, and targets critical, time-sensitive initiatives consistent with the Mission's transformational development goals and U.S. foreign policy objectives. CEP II has a budget of $19,999,969 and aims to support a democratic, peaceful, and prosperous Palestinian state through a range of interventions, including capacity building, grants, and humanitarian assistance. The program's capacity building component is a key aspect of CEP II, aiming to improve the structure, efficiency, and service provision capacity of 10 identified institutions. This component did not exist under OTI or CEP I, and is a new addition to the program. The capacity building component is expected to play a critical role in supporting the program's objectives and promoting stability and democratic reform in the Palestinian Territory. CEP II's strategic objectives are aligned with the program's overall goal of supporting a democratic, peaceful, and prosperous Palestinian state. The program's interventions are designed to promote stability and democratic reform, strengthen reform-minded Palestinian leaders and institutions, supply basic humanitarian commodities, and distribute food and relief items. The program's budget and interventions are aimed at supporting critical, time-sensitive initiatives consistent with the USAID/West Bank and Gaza Mission's transformational development goals and U.S. foreign policy objectives.