"Despite the occupation, the Palestinian people have made strong progress in building sound institutions within a stable society, on the way to statehood," the Palestinian Authority declared Thursday.

The report, spanning May 2009-May 2010, cataloged what the PA called successes for the year, citing the construction of 34 new schools and expansion of 23 - 11 new clinics, 44 new housing projects, 16 new roads, and 370,000 newly planted trees among other achievements.

"In marking these milestones on the road to statehood, it is important to emphasise that every achievement by Palestinian society is made in the face of the restrictions and obstacles of Israeli occupation," the PA report stated.

The 13th Government Programme, "Ending the Occupation, Establishing the State," was released in August 2009. It set a two-year timetable for building the institutions of the Palestinian state as a parallel track to continuing efforts to secure that state via peace talks with Israel.

Palestinian officials have, in addition to the accomplishments listed in the report, embarked on a diplomatic program seeking support for a state in 2011. French Foreign Minister Bernard Kouchner said in July that he believed a viable state would exist by 2012.

The release of the report coincides with what officials say is the "half-way point" in the establishment of all the state institutions.

"This report shows our great seriousness in building our state on our way to freedom. We have achieved much and will continue to do so despite the occupation. Building our country means building our children’s future," Prime Minister Salam Fayyad said.