IZDEHAR or Palestine Prosperity Investment Development - PPID is a US$ 100 million investment vehicle for development-oriented investment opportunities in Palestine. It provides a pool of readily available risk capital for project construction and operation. IZDEHAR will work in a complementary manner as a deal catalyst, identifying and developing infrastructure projects from their earliest concept phase to an investment-ready phase, it will assemble all financing needs and will bear the risks of construction and operation. IZDEHAR’s long term vision is to develop a pipeline of $1.1 Billion Investment Projects in Palestine
The initiative comes at a particularly crucial time for Palestine as Western Donors continue to halt donations and the Palestinian Authority lack of finances. The fund will focus on essential infrastructure needs, including Energy, Industrial Zones, Waste Management, Education, Health, Religious Tourism, Technology, Agriculture and Affordable Housing.
PPID’s unique model comes at a particularly critical time for Palestine and the region as Western Donor continue to halt donations and the Palestinian Authority continues to struggle in overcoming its longstanding fiscal deficits, the Private Sector needs to step-in and work on rebuilding the foundational elements necessary for economic development. Current levels of private investment in the Palestinian Territories are not sufficient to fuel meaningful Economic Growth and create sustainable employment opportunities. The inadequacy of private investment is particularly significant in the infrastructure sector and other strategic projects that tend to have large capital requirements and longer horizons for returns, thus bearing a higher risk profile. This is exacerbated in Palestine where the political situation remains highly volatile.
Moreover, Infrastructure investment in Palestine is critical to economic productivity and it was estimated that Palestine needs $0.5-1 billion per year for the next 20 years to meet its infrastructure development needs. Without additional large-scale interventions beyond those currently planned, these needs will not be met. But if they are left unaddressed, Palestine’s infrastructure deficit will result in a continuation of stunted economic development with dire social consequences that will impact State-Building and its progress. Therefore, Private sector initiatives are needed to alleviate the infrastructure deficit in Palestine via the use of De-risking instruments to channel investment.
PPID identifies and develops large-scale commercially viable projects from the idea stage until financial closure, aiming to reduce the risk inherent in these projects by strategically structuring their financial and legal formations. Projects are selected based on their potential to help build the foundation and the infrastructure for an independent state with strong viable economy, and create long term professional employment opportunities across a variety of disciplines and sectors such as Energy, Industrial Zones, Waste Management, Education, Health, ICT and Affordable Housing.
The mission of PPID is to drive investment in Palestine and develop the Private Sector by upgrading its investment scope and providing seed capital.
Together, our Efforts aim to alleviate the financing deficit in Palestine and create a pool of risk capital available for high impact mega projects.