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Brussels, 28 January 2008

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PEGASE is the main instrument used by the European Union to deliver support to the Palestinian Authority and to the Palestinian population. It is an open mechanism that seeks to facilitate support from the European Community, EU Member States and other donors wishing to channel aid to the Palestinians.

Mobilising and managing contributions from donor countries has been one of the achievements of the Temporary International Mechanism. PEGASE builds on the experience under the TIM, which attracted contributions from 19 international donors, of which 15 EU Member States, for a total of more or less €200 million.

PEGASE channels aid through five different payment systems, tailored to match the nature of each activity. Donors can contribute to any of these, depending on their priorities and their specific requirements.

PEGASE will make extensive use of the Palestinian Authority Single Treasury Account (STA) while securing a high level of monitoring, control and audit.

Any donor wishing to participate to PEGASE signs an agreement with the PA and the European Commission to define how the donor’s contribution will be managed. The secure monitoring and control systems set up under PEGASE ensure that the funds are used as agreed. The contributing donor is kept informed by PEGASE on progress of the activities of this mechanism through regular contacts and reports.

PEGASE also welcomes experts and officials from EU Member States and international donors wishing to contribute and to join the PEGASE team and to participate in the implementation and control of the different programmes.

In addition to local coordination with EU Member States, PEGASE relies on the existing coordination groups already in place, such as the ad hoc liaison committee’s (AHLC) fora, in liaison with the PA and the Office of the Quartet’s Special Representative.

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