The United Nations Office for Project Services (UNOPS)
Modernizing trade infrastructure and improving the movement of goods through the State of Palestine
UNOPS, in partnership with the Palestinian Ministry of National Economy, and the European Union, has launched the EU4Commerce project to upgrade commercial crossings for the State of Palestine.
High transaction costs and long delays at crossings currently create severe bottlenecks for local businesses, making it difficult for Palestinian exporters and importers to trade efficiently.
To help make trade faster, more predictable, and less expensive for Palestinian exporters and importers, the €8.5 million EU4Commerce initiative will provide practical, technical solutions to upgrade commercial crossing infrastructure, streamline logistics and lower cross-border transaction costs for local businesses.
The project will be implemented over 36 months in two phases. Phase one focuses on feasibility and planning, with localized technical and economic assessments to design optimal, demand-driven operational frameworks. Phase two focuses on infrastructure development, which includes the anticipated establishment of a modern Trade Logistics Centre in Jericho.
By shifting customs procedures, inspections, container sealing and cold-chain storage upstream to an anticipated logistical trade facility in Jericho, the project aims to transform the King Hussein Bridge from a bottleneck into an efficient transit gateway.
"This project is demand-driven, technically sound and focused entirely on practical solutions," said Karuna Herrmann, Director of the UNOPS Jerusalem Office.
Success means more efficient procedures, lower costs and improved opportunities for businesses to grow, contributing step-by-step to a more resilient economy.
Against the 2026 baseline, the initiative is expected to deliver significant long-term benefits:
A 30 per cent reduction in border clearance times and cross-border transaction costs for local businesses.
Enhanced preservation of goods through improved cold-chain storage infrastructure, directly benefiting agricultural sectors like olive oil, dates and fresh herbs.
Increased market access to make Palestinian products more competitive in both regional and global markets.
“This project comes at a critical stage that requires strengthening the Palestinian economy's resilience and its ability to adapt to increasing challenges, foremost among them being those related to trade, transport and logistics,” said the Minister of National Economy Mohammad Al Amour.
“Because trade is the artery of the national economy and a primary driver of growth, investment and job creation, developing logistics infrastructure has become a national and strategic priority in order to facilitate the private sector trade movements,” he added.
The EU Ambassador Alexandre Stutzmann said: “The launch of the EU4Commerce project is a leap toward revitalizing trade, driving sustainable economic growth and creating much-needed jobs right here in Palestine.”
The project establishes a transparent governance framework and serves as a scalable model designed to attract further donor investments and long-term economic partnerships.
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