Palestinian Grant Leveraging Facility (PGLF)

The Portland Trust recommended that a consortium of major donors establish a Palestinian Grant Leveraging Facility, specifically to enable substantial private sector investments that generate significant development benefits. The PGLF would pool together donor funds to be used as grants to cover part of the development cost of large scale private sector projects, which would help lower risk and attract major private investment. In particular, it is proposed that financial support from the facility is made available to overcome obstacles and market failures inherent to the nature of large-scale projects in Palestine. Some of these are related to the lack of adequate infrastructure and other enabling factors typically dependent on governmental support. For example, with off-site infrastructure typically averaging 15% of the total (private) project cost, $150m of aid used in this way could attract close to $1bn in private sector investment.