The Palestinian Authority's Wafa news service said Tuesday that PA Prime Minister Salam Fayyad had signed an agreement with the Islamic Development Bank for the repair and improvement of schools in Arab neighborhoods of Jerusalem.
The project will cost $4.5 million, and the Bank will attempt to find lenders to finance the it.
The report quoted Dr. Caud Naji, a top advisor to Fayyad, as saying that the money will be used to improve 30 schools in Jerusalem and in nearby villages.
"Work on the first schools will begin in the next few days,” Naji told the news service, adding that the project was one of many the PA had already sponsored, and was currently planning, in Jerusalem.
Israeli officials had no comment on the report. According to the Oslo Accords, the framework of relations between Israel and the PA, it is illegal for the PA to undertake official government projects in Jerusalem.
Israel has, in the past, attempted to clamp down on official PA activity in the city, such as the closure of the Orient House in 2001, when Israel closed the building down because of its use by the PA for government activity.
The move follows a call by Fayyad earlier this year for the PA to exert sovreignty in eastern Jerusalem.