Salam Fayyad, the Palestinian Prime Minister of the care taker government, signed an agreement with the World Bank on Tuesday in which 40 million USD will be transferred by the World Bank to the Palestinian Authority.

David Craig, World Bank Director for the West Bank and Gaza said that the grant falls in the framework of Fayyad’s Palestinian Reform and Development Plan (PRDP).

Fayyad, who was appointed by Palestinian President Mahmoud Abbas as prime minister in late June 2007, worked for the World Bank in Washington, DC from 1987 to 1995.

The World Bank said that budget support is a central component of ongoing World Bank efforts to support the Fayyad plan that was originally presented to the international donor community in Paris in December 2007.