The European Commission proposed a range of new initiatives under the PEGASE mechanism aimed at the recovery and reconstruction of the Gaza Strip. One of these initiatives was the Palestinian Authority (PA) Private Sector Reconstruction in Gaza (PSRG) programme that aims at stimulating economic activity in the Gaza Strip by enabling businesses affected by the Operation “Cast Lead” in the winter of 2008-2009 to resume their economic activity. The programme provides support to businesses that need to restore production machinery, office furniture, office equipment, as well as buildings, facilities and other business premises damaged or destroyed by the conflict. A specific PEGASE Direct Financial Support (DFS) progamme was developed to channel the funds entailing a sophisticated system of audits and verifications. The global objective of this assignment was to evaluate the impact of the PSGR programme in the recovery of the private sector in the Gaza Strip since “Operation Cast Lead”.