Infrastructure

Infrastructure is of obvious large importance to economic development. Years of Israeli occupation left the infrastructure of the WB and GS in a deplorable situation. Estimated expenditures on infrastructure during 1967 to 1993 were $20 to $30 million, which is less that 1% of the GDP and much below the average of 4% usually spent on infrastructure in developing countries.

Communications

Communications were totally managed by the Israeli Bezek company until 1997. In January 1997, the Palestinian Telecommunications Company took over all communication services in the WB and GS excluding Jerusalem.

Until then, the communications sector could be said to be in a deteriorating state; the total number of phone lines was 80 thousand, that is an average of 3.3 telephone lines for each 100 people. This ratio is significantly below that one of neighbouring countries, as the following table indicates.

Table 33: Communications Sector in Palestinian Territories and Surrounding Countries

Country/ Territories

Paved Roads

(m/100 persons)

Phones

(number/100 persons)

Number of homes connected to sanitary sewer system

Electricity (Kw/100 persons)

Jordan

170

7

100

25

Palestinian Territories

80

3.3

37.4

13.1

Israel

266

37.1

100

82

Syria

180

4.1

36

30

Source: Hijjeh

Energy

The total volume of electricity consumed in the WB is 890 MW/h. Electrical services reach 92.5% of the population. 97% of consumed electricity is generated through the Israeli Electrical Company. 14% of village inhabitants operate their own electric generators for limited hours. The Gaza Strip consumes 464 MW/h that are purchased from the Israeli Electrical Company. The average annual consumption of electricity per capita is approximately 13.1 kW/h, which is significantly less than that in neighbouring areas.

Water and waste water collection

Statistics indicate that up until June 1997, 86.3% of Palestinian households were connected to water networks (97.7% in the GS and 81.04% in the WB). The per capita average water consumption reaches 100m3 per year, which again is significantly lower than that in neighbouring countries. Per-capita water consumption in Israel, for example, reached 500m3, and in Jordan 140m3.

Most drinking water networks are old with of 40% to 50% water loss. 20% of houses are not connected to water networks, and more than 16% of Palestinian households suffer from water shortages.

As for wastewater collection, statistics show only 28.7% of WB residences and 42% of GS residences are connected to sewerage networks.