WASHINGTON The World Bank on Friday approved a $10 million loan to the West Bank and Gaza to help municipalities deliver better health and education to the region's poor.

The loan, part of an Integrated Community Development Project aimed at reducing poverty and supporting emergency interventions in the strife-torn region, also aims to help local authorities manage road and water supply projects.

About half of the Palestinian population lives below the poverty line, with less than $2 a day.

With three-quarters of the region's inhabitants living in rural areas, the project also aims to finance about 100 community initiatives using local workers and materials to stimulate local economies.

The ICDP will at a later stage, also establish a number of "telecenters" in some communities, that will give residents access to the Internet as well as computer training, Reuters reported.