28 April 2026
Selected excerpts from the Terms of Reference:
1. Introduction, Context & Rationale
Following more than two years of the escalation in Gaza Strip, a ceasefire agreement was signed on October 10, 2025. This ceasefire has opened a critical window for the realization of the hopes and ambitions of the Palestinian people, in Gaza, to lead a life in peace, security and dignity. Security Council Resolution (2025) 2803 offers a transitional administrative and security framework to consolidate the ceasefire and advance lasting peace and recovery in the Gaza Strip. To this end, the UN and its partners are committed to swiftly build upon and expand their current focus in Gaza ¨C from life-saving humanitarian assistance to increased early recovery activities that help create conditions for expanded aid flows, restoring hope and building much needed stability for investment and reconstruction, including restoration of livelihoods and economic activity, access to essential services, housing and social protection and strengthening governance, institutional capacity and protection systems. The UN is committed to roll out high- and quick-impact programming that integrates protection principles while tangibly and swiftly improving living conditions. This will set the stage for Palestinian-led recovery, as a contribution to Security Council resolution (2025) 2803, the US 20-Point Plan, the Arab Islamic Plan for Gaza reconstruction, the associated State of Palestine -led implementation plan, and the New York Declaration.
The Horizon Fund will provide a coordinated framework for recovery, with a primary focus on Gaza. It will support early recovery and resilience-building efforts, including restoration of critical infrastructure, economic revitalization, livelihood recovery, and governance strengthening to promote social cohesion and stability. The Fund aligns with UN development frameworks and Palestinian national priorities, serving as a platform for strategic donor coordination and collective impact. It will operate through three funding windows: (i) Early Recovery; (ii) Emergency Support for SMEs and Investment Generation; and (iii) Reform Agenda, Institutional Development, and Governance. By consolidating donor resources under a transparent, unified mechanism, the Fund will enhance inter-agency coordination, reduce duplication, and optimize the use of limited resources. Leveraging the UN¡¯s operational presence across the oPt, the Fund will scale up recovery, strengthen institutional capacity, and mobilize private-sector and civil society engagement. Through joint programming, it will maximize technical expertise, share risks among donors, and improve service delivery, governance reform, and community resilience¡ªensuring recovery efforts are coherent, impactful, and sustainable.
The Âé¶¹APP General Assembly Resolution 72/729, adopted in 2018 aims to better position the Âé¶¹APP development system (UNDS) to address the full range of human rights, peacebuilding, humanitarian, and development challenges and opportunities. It also aims to align its functions and capacities with the 2030 Agenda to be more strategic, accountable, transparent, collaborative, efficient, effective, and results oriented. The Resolution promotes the use of pooled funding mechanisms to ensure an impactful contribution at country level and shape the country-based programming, aligned with the Cooperation Framework. This Multi-Partner Trust Fund (MPTF) aims to finance actions that provide catalytic support to the Cooperation Framework priorities aligned with the National Policy Framework and Sustainable Development Goals (SDGs). Following the Resolution, a Funding Compact was agreed between Member States and the UN to implement the interdependent nature of the reform. Regarding pooled funding, Member States committed to double the level of resources channelled through inter-agency pooled funds and agency specific thematic funds. In addition, the UN agreed to common management features, namely, well-articulated strategy, including innovation features where relevant, clear theories of change, solid Results-Based Management systems, well-functioning governance bodies supported by effective secretariats, quality assurance on issues of Âé¶¹APP norms and values; risk management systems and strategies; operational effectiveness/reporting/visibility/transparency standards; and planning and funding for joint and system wide evaluations that meet UN Evaluation Group (UNEG) norms and standards.
2. Functions of the Horizon Fund:
The Horizon Fundis designed to serve as the cornerstone of a coordinated, transparent, and impactful recovery effort¡ªtransforming fragmented responses into a unified mechanism that accelerates reconstruction, resilience, and sustainable development. Acting as a central platform, the Fund will coordinate, consolidate, and strategically allocate resources for early and medium-term recovery across the occupied Palestinian territory, with a primary focus on Gaza Recovery and Reconstruction. It will strengthen alignment and coordination among stakeholders, promote coherence by fostering synergies across UN agencies, government institutions, and partners, and reduce duplication through pooled financing that complements agency-specific funding. By consolidating resources, the Fund will minimize fragmentation, create complementarities with other funding streams, and serve as the principal investment vehicle for recovery. Strategic resource allocation will be guided by an inclusive and transparent governance structure, ensuring evidence-based decisions and broad stakeholder participation. The Fund will broaden the financial base by attracting contributions from traditional and emerging donors, including non-resident partners, while providing consolidated reporting for accountability and visibility. Its flexible design will allow adaptation to evolving needs, new thematic areas, and additional participating organizations, while leveraging innovative financing instruments¡ªsuch as blended finance and privatesector engagement¡ªto accelerate delivery and scale up recovery efforts. By pooling resources and channeling them through joint programming, the Fund will place local communities at the center of recovery, incentivize locally led strategies, and ensure interventions are tailored to the unique conditions of Gaza and the wider oPt. This approach transforms funding from a fragmented process into a strategic enabler of collective impact, delivering transparent, accountable, and high-value results for Palestinians while reinforcing national ownership and resilience.
3. Programmatic Scope and Theory of Change:
The strategic goal is to contribute to inclusive early recovery and reconstruction for Palestinians in the Gaza Strip.
The UN¡¯s support will be nested within the Early Recovery Approach and Action Plan, designed for UN joint programming, emergency support for SMEs and investment generation, and the Government of Palestine reform agenda, institutional development, governance and social protection. The vision is to move from the focus of ¡®saving lives¡¯ to ¡®securing and sustaining lives¡¯, restoring a sense of normalcy in the Gaza Strip, and rebuilding social cohesion.
The objectives are to lay the foundations for early recovery, reconstruction, and sustainable development in the medium term.
The approach is to implement urgent measures starting in Q4 2025 for an initial period of three years, within the Early Recovery Approach and Action Plan as well as the UNSDCF. These actions would maximize the impact of humanitarian (lifesaving) assistance and recovery and reconstruction. This would help strengthen the capacity of the Palestinian Government in terms of reform, institutional development, and social protection.
The overarching guiding principles are: (1) State of Palestine leadership & ownership; (2) alignment with the Ceasefire Agreement and the Early Recovery Approach and Action Plan; (3) leaving no one behind, especially the most-conflict impacted and vulnerable; (4) HDP nexus Alignment; (5) transparency and accountability.
The programme design principles are: (1) integrated with the State of Palestine governorates but also through the one-UN and area-based approach; (2) reliant on coordination with the Government of Palestine and Line Ministries; (3) leveraging the UN¡¯s as well as NGO/CSOs operational presence; (4) catalyst for UN/multilateral coherence, coordination, and collaboration (¡®triple C¡¯); (5) gender inclusive and responsive; (6) conflict-sensitive, centered on ¡®doing no harm¡¯, and (7) joint programming shall be the default modality for the fund, ensuring complementarity, balanced participation, and the effective use of UN comparative advantages.
The fund shall adopt a comparative advantage¨Cbased approach to implementation, ensuring that agencies contribute according to their distinct mandates and operational strengths, particularly in infrastructure, procurement, governance, social protection, livelihoods, and service delivery.
The geographic focus is primarily on the Gaza Strip, with a potential extension to East Jerusalem and the West Bank.
The target population groups applying the principle of leaving no one behind, would be women and children, persons with disabilities (PwDs), victims and survivors of gender-based violence (GBV), returning internally displaced persons (IDPs). The likely target population could reach approximately 2 million people.
A gender marker will be integrated into the Horizon Fund to set targets for allocations to programmes serving women and girls, and to monitor the share of allocations serving women and girls. A minimum of 15% of project resources will be allocated for gender equality and the empowerment of women.
The Theory of Change is predicated on sustained commitment by the Government of Israel and Hamas and other armed groups, to uphold and implement the ceasefire agreement, the absence of major destabilizing developments in the short term, and the availability of security and access conditions necessary for timely and effective implementation. Within this enabling environment, if the State of Palestine , the Âé¶¹APP, and international and national partners work in a coordinated, transparent, and mutually accountable manner to rapidly identify, prioritize, resource, and implement critical interventions that deliver: the following three outcomes: (1) People live safely with sustainable livelihoods; (2) A stable and sustainable Palestinian economy; (3) Strengthened Palestinian leadership and institutional ownership. Collectively, these short-term results will contribute to medium- and long-term outcomes of greater political stability across the State of Palestine and renewed progress toward peaceful, inclusive, and sustainable development, placing the State of Palestine firmly on a trajectory of recovery, resilience, and long-term growth.
Document Type: Document, Memorandum, Terms of reference
Document Sources: Âé¶¹APP Special Coordinator for the Middle East Peace Process (UNSCO)
Country: Palestine (State of)
Subject: Assistance, Development, Economic issues, Funding needs, Reconstruction, Recovery
Publication Date: 28/04/2026
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