The European Investment Bank (EIB) is to lend $38 million to the Palestinian Authority to upgrade and rehabilitate the electricity distribution system in the central and southern areas of the West Bank which includes the Bethlehem region.

The funds from the EIB are being made available for up to 20 years. They will be used by the Jerusalem District Electricity Corporation Ltd (JDECO), a private company responsible for electricity supply in East Jerusalem and the central area of the West Bank.

The upgrading project is expected to cost a total of $78 million. It has been developed with the support of the World Bank and Italy, and is expected to improve the quality of supply to 1.4 million Palestinians.