Palestinian Authority (PA) Prime Minister Salam Fayyad has signed a deal with the World Bank to finance three projects in the Hamas-run Gaza region, according to Reuters News Agency. The deal signals closer relations between Hamas and Fatah, which was ousted from the leadership in Gaza by the rival terrorist party last June.

Half of the $29 million agreement for the infrastructures projects is earmarked for Gaza despite vows by Prime Minister Ehud Olmert that he would stop negotiating with Abbas if he were to work with Hamas. 

Fayyad said at the signing of the agreement that the projects for Gaza are conditioned on Israel's "lifting the siege imposed on Gaza... [and] reopening the border crossings."Fayyad said at the signing of the agreement that the projects for Gaza are conditioned on Israel's "lifting the siege imposed on Gaza... [and] reopening the border crossings."



He also said that 40 percent of the $7.7 pledged last year by international donors will end up in Gaza. In addition to money that the PA receives from Europe, the Olmert administration sends it millions of dollars in tax revenues collected for the PA every month, with the "understanding" that the funds stay out of Hamas's coffers. However, the PA has used part of the funds to pay some of Hamas's Gaza employees.

Fayyad's condition puts additional pressure on Israel to open up the Gaza crossings for wider shipments of goods despite rocket attacks and mortar shelling on four different occasions last week. Defense Minister Ehud Barak ordered last Wednesday that the crossings be closed, but he re-opened them on Sunday despite more ceasefire violations on Friday. The government did not explain the change in policy.

The attacks before the Sabbath were aimed at the Nahal Oz fuel depot, which pumps diesel fuel for Gaza' single electricity generator. A terrorist attack at the fuel depot earlier this year killed two Israeli civilian workers.