Middle East Peace Quartet envoy Tony Blair has announced a number of industrial and business projects designed to revitalise the Palestinian economy.
The projects include a sewage treatment plant in the Gaza Strip, an industrial park in Jericho and an industrial zone in Hebron.
Mr Blair's announcement has come a week before a Middle East peace conference due to be held in the United States.
The former British Prime Minister has said that politics will never succeed without the hope of economic prosperity.
Mr Blair says the projects have been designed with the aim of creating local jobs.
Israel has previously cited security concerns for blocking business initiatives and for restricting the movement of goods around the Palestinian territories.
In other news, Israel says it will release 450 Palestinians being held in Israeli jails in what it says is a goodwill gesture before next month's peace conference. © 2007 Australian Broadcasting Corporation
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