BRUSSELS, Sept. 19 (Xinhuanet) -- The European Commission will allocate 280 million euros (340 million US dollars) for Palestinians in the year 2005 with a special package to fund priorities in the aftermath of the Israeli withdrawal from the Gaza Strip, said the commission in a press release on Monday.

    A total of 60 million euros (73 million dollars) will be allocated to help revive the Palestinian economy and create institutions capable of addressing the new responsibilities arising following the Israeli withdrawal, said the commission, theexecutive body of the European Union (EU).

    "These efforts are designed to maintain the momentum created byGaza withdrawal, and ensure that this important event leads on to full implementation of the Road map," said the press release.

    Of the 60-million-euro package, 40 million euros will be used to restore provision of essential services such as water, transport and energy. Another 12 million euros will go to institution building. The money will help Palestinians assume governance responsibilities following the Israeli withdrawal. The rest 8 million euros will be used to support education and health with a particular focus on East Jerusalem, said the press release.

    The news was announced on the eve of a meeting in New York of the Middle East Quartet -- The EU, Russia, the United States and the United Nations.

    Quartet Special Envoy James Wolfensohn has identified six priority areas for action following the Israeli withdrawal from Gaza: border crossings, the West Bank/Gaza link, movement in the West Bank, the air and sea port, demolition of houses in former Jewish settlements, and the greenhouses, which have been abandonedby the settlers.

    In response, the EU promised to help with the construction of the Gaza sea port and the rehabilitation of the airport, includingthe construction of a cargo terminal. It is already providing support to the Palestinian customs authorities, said the press release. Enditem