H E WORLD T BA NK GR OU I NG FOR THE P K AL OR E P W ST IN IAN PEOPLE THE WORLD BANK GROUP WEST BANK AND GAZA Portfolio Snapshot April 2018 Abraham Path project 10 Finance for job project 12 Table of Contents Finance for job II project 14 Gaza Electricity network rehabilitation project 16 Health system resiliency strengthening project 18 Hebron regional wastewater management project 20 Who We Are I The World Bank Group as a Global Institution 01 Local governance and services improvement program 22 The World Bank’s Engagement I West Bank and Gaza 04 North Gaza emergency sewage treatment project 24 Analytical and Advisory Work 06 Second municipal development project 26 Project Snapshots 08 Third municipal development project 28 Integrated cities and urban development project 30 Education to work project 32 Cash transfer project 34 Social protection enhancement project 36 Teacher education improvement project 38 Electricity sector performance improvement project 40 Gaza solid waste management project 42 Output – based aid solid waste management project 44 Gaza sustainable water program 46 WHO WE ARE The World Bank Group as a Global Institution T he International Bank for Reconstruction and Development (IBRD) was founded in 1944 to help rebuild countries devastated by Headquartered in Washington, DC, the World Bank works like a cooperative made up of 189 member countries— or shareholders—who are represented by a Board of World War II. Since then, it has expanded from Governors, the ultimate policy makers at the World a single institution to a closely associated group Bank. Specific duties are delegated to a 25-member of five development institutions working to end board of Executive Directors, who work on site at the poverty around the world. In addition to the Bank. With more than 10,000 employees in more than IBRD, which operates in middle-income countries, 120 offices worldwide, the World Bank operates under the World Bank Group includes the International the day-to-day leadership and direction of the president, Development Association (IDA), which supports management, and senior staff. the poorest countries through interest-free or very low interest credits and grants; the International Finance Corporation (IFC), which provides loans, equity and advisory services to stimulate private sector investment in developing countries; the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for the Settlement of Investment Disputes (ICSID). References to the “World Bank” typically mean the IBRD and IDA. 01 WHO WE ARE The World Bank Group as a Global Institution Since 2013, the World Bank has redoubled its efforts at achieving two overarching goals: • Ending extreme poverty by reducing the share of the global population living on less than $1.90 per day to 3 percent by 2030; and • Promoting shared prosperity by increasing the income growth of the bottom 40 percent of the population of every country in a sustainable manner. With capital currently totaling over $250 billion, the World Bank is a vital source of financial and technical assistance to developing countries around the world. Low-interest loans, zero and lowinterest credits, and grants support a wide array of investments in education, health, public administration, infrastructure, urban and social development, financial and private sector development, agriculture, and environmental and natural resource management. These investments are underpinned and complemented by cutting-edge analytical and advisory services, leveraging the World Bank Group’s global knowledge and country-level expertise. In fiscal 2016, the World Bank Group’s global commitments grew to $64.2 billion in loans, grants, equity investments, and guarantees supporting partner countries and private businesses. 03 WEST BANK & GAZA The World Bank’s Engagement T he Bank has assisted the Palestinians since the Oslo Accords of the early 1990s – continuing to lay the foundation of a future Palestinian state so that it A sustainable growth path for the Palestinian economy depends on a domestic private sector that can compete in regional and global markets and increase its export of goods and services. Thus,  the World Bank Group’s assistance can deliver services to the people. We do this with our strategy for 2018-21 is focused on creating a conducive environment for private grants (financed from the World Bank’s own income and investment in the productive sectors of the economy. Increased investment can supplemented by Trust Funds contributed by donors) in enhance the capacity of the economy, inspire entrepreneurial effort, and generate water and sanitation, municipal, education and social the jobs that are needed—especially for the large number of unemployed youth protection sectors and from the convening influence of our and women. This is built on the World Bank Group’s maximizing finance for analytical products, examining contemporary debatable development approach. Beyond efforts to support the private sector, a strong issues through the lens of economic development. focus on shared prosperity is critical for renewing the social contract via better (public) service provisions and social protection. The three pillars of the A half million people have relief from the immediate threat assistance strategy are: of flooding and backflows of raw sewage in the communities surrounding the North Gaza Emergency Sewage Treatment 1. Setting the conditions for increased private investments and Plant. More than six thousand students, half of whom are job creation. women, have completed job placement programs financed by the Education to Work Transition Project. Eight start- 2. Private Sector Enhancement Facility to realize private ups in the areas of technology and programming have been investments. supported by the Finance for Jobs project. The Second 3. Addressing the needs of the vulnerable and strengthening Municipal Development Project reports that 90 percent of institutions for improved citizen-centered service delivery. municipalities recording at least a 20 percent reduction in processing time for selected services in citizen service centers. Along with offering a range of advisory services, the International Finance Corporation (IFC) continues to support both existing and new clients in the Palestinian private sector. The Multi-Lateral Guarantee Agency (MIGA) has underwritten a number of projects in the power, agribusiness, and manufacturing sectors. 04 05 in fully understanding the reasons behind inequities in basic services and what is driving Palestinian local government Analytical and performance. The study included a household survey that is representative at the level of individual local governments, Advisory Work T he World Bank Group’s analytical and advisory work has remained a core part of its strategy. Recent reports have been playing an important role in highlighting looking at access, quality, and reliability of local services for the first time from the ‘demand side’ of the Palestinian citizen. critical constraints to improving the Palestinian economic performance. Prospects for Growth and Jobs in the Palestinian Economy - While recognizing the critical importance of a political Economic monitoring report to the March 2018 Ad Hoc settlement, the report argues that measures over the Liaison Committee (AHLC), a policy-level meeting for medium term, within the frame of existing agreements, development assistance to the Palestinian people. The can create new areas of economic activity, attract private report explores the nature of the rapid decline of the socio- investment, generate jobs and significantly improve living economic conditions in Gaza and identifies what is needed standards. The report uses an economic model over a ten- to unlock sustainable growth. While additional cash inflows year time frame to estimate the impact on the Palestinian and infrastructure projects are urgently needed to bring economy of addressing the different constraints. relief from the difficult living conditions, a lasting recovery depends on reviving the Gaza economy through access to Unlocking the Trade Potential of the Palestinian Economy external markets and expansion of commercial activities. - The Palestinian economy is severely hampered by trade- related restrictions, high logistics costs, cumbersome Securing Energy for Development in West Bank and procedures and institutional inefficiencies. This note Gaza - The report lays out a vision of improved energy highlights the distorted trade patterns that have emerged security in the Palestinian territories based on expanding because of these restrictions and proposes both immediate and diversifying power supply and prioritizing actions options, and longer-term trade policy reforms that could, to achieve financial sustainability as a pre-condition for help overcome existing dysfunctions and improve trade- energy security. The report provides a sequenced road map related economic outcomes in the Palestinian economy. of actions to improve the current situation of the energy sector and meet the development requirements of the Enhancing Job Opportunities for Skilled Women - While related sectors. limited job opportunities affect everybody, a striking feature of the labor market in the Palestinian territories The Local Government Performance Assessment – Very is the significantly higher rate of unemployment among little information has been available regarding citizen skilled women relative to skilled men. The study analyzes satisfaction and the results of local services provided by the reasons behind the higher unemployment rate among villages and municipalities. Service providers and policy skilled women and provides policy options to enhance the makers were unable to assess and compare local service economic opportunities. outcomes across the Palestinian territories, leaving a gap 06 07 Project Snapshots 08 ABRAHAM PATH: ECONOMIC DEVELOPMENT ACROSS FRAGILE COMMUNITIES ABRAHAM PATH: ECONOMIC DEVELOPMENT ACROSS FRAGILE DEVELOPMENT OBJECTIVES Approved Effective Closing COMMUNITIES The project aims to contribute to job creation and income January 22, 2014 January 23, 2014 June 30, 2018 generation for marginalized rural communities along the With the abundant religious, cultural and historical Abraham Path in the West Bank, with a particular focus on sites, coupled with the Palestinian hospitality and women and youth, and to capture lessons from piloting job adequate infrastructure, Palestine offers a great creation through experiential tourism that could be applied in IDA Grant (US$ million) opportunity for tourism attraction. However, due other Fragile and Conflict-Affected Situations (FCS). Total Allocation Disbursed to both political and economic constraints, the Palestinian Tourism industry is not developed fully 3.32 3.02 RESULTS across the value chain resulting in some leakages of tourism revenue. Furthermore, the Palestinian • Under its training and institutional capacity building hotel industry does not fully benefit from incoming activities to Bethlehem University and partner tourism, since on average tourists stay less than a NGOs, the project supported the: (i) graduation of 18 day in Palestinian cities. trainees including 2 women from the Trekking Guide Training at the Bethlehem University; (ii) training Key Government Partners Experiential tourism however, extends a unique of 58 partner NGOs’ staff on income generation prospect for diversifying the nature of tourism in strategies, management and fiduciary systems; and Ministry of Tourism Palestine, since it can attract thousands of travelers (iii) 82 local wilderness guides have been trained of who seek challenges and rewards of adventure in Abraham’s Path Initiative which 33 guides are certified natural surroundings. • Project created 137 jobs in communities along the Masar Ibrahim The Walking Trail offered by the Abraham Path Abraham Path, of which 35% and 57% are occupied Bethlehem University (Masar Ibrahim) – the longest in Palestine – presents by youth and women respectively. In addition, 61 itself as an outlet to maximize the economic impact local youth groups are engaged in the project of experiential tourism in rural communities. • 55 local councils/associations have signed Key Development Partners partnership agreements with the Abraham Path. USAID While, number of operators that run tours on Abraham Path has reached 8 AFD • The number of walkers on the path continues to rise (6335 in December 2017). 10 11 FINANCE FOR JOBS PROJECT FINANCE FOR JOBS PROJECT DEVELOPMENT OBJECTIVES Approved Effective Closing Private investment and private sector activity remain frail, concentrated mainly in low productivity Finance for Jobs aims to test the effectiveness of selected December 18, 2015 November 30, 2016 July 31, 2020 sub sectors with weak employment growth. The financial interventions. volatile political situation along with the continued restrictions on movement, access, and trade further weaken the sector. RESULTS IDA Grant (US$ million) • Testing of Entrepreneurship Ecosystem Matching Total Allocation Disbursed Private investment has averaged only 15 percent of GDP over the past seven years, while foreign direct Grants: The PIA has progressed in testing this 5 1.79 investment has averaged only 1 percent of GDP. instrument by launching it in the market and Gross capital formation as a percentage of GDP has awarding the first EE-MG to an early stage fund in dropped dramatically from 35 percent in 2000 to support of eight startups. less than 15 percent in 2012. • Capacity building to prepare for testing the Development Impact Bond and Investment Co- The Finance for Jobs is the first of a Series of Financing Facility in F4J II. Key Government Partners Projects with an overall objective of mobilizing private investment financing in high potential sectors and • Accomplishment so far have paved the path for the Ministry of Finance and Planning generating job opportunities. The project specifically Finance for Jobs II shifting to DIBs and to investing seeks to address the significant constraints on Private sector enterprises in the Investment Co-Financing Facility private investment and the generation of job opportunities. The lack of financing enhancements • 90 percent of quality jobs created by the needed to tackle the market limitations would be entrepreneurs were filled by young people and 44 percent are women. Key Development Partners among the issues to be explored in addition to the mismatch of skills between those demanded by the DFID • Gender sensitive financial tools were introduced private sector and those possessed by the graduates. to capture potential social value of jobs created, including three types of additional social externality Lets Work Partnership returns on: women and more vulnerable beneficiaries; social stability and human capital accumulation. 12 13 FINANCE FOR JOBS PROJECT II FINANCE FOR JOBS PROJECT II DEVELOPMENT OBJECTIVES Approved Effective Closing The private investment needed to fuel job growth and labor demand remains at suboptimal levels Finance for Jobs II aims at testing the effectiveness of December 18, 2015 November 30, 2016 July 31, 2020 with weak employment growth. Private investment selected financial interventions in incentivizing private sector averaged only 15 percent of GDP over the past seven investment and job creation. years, while foreign direct investment averaged only 1 percent of GDP. Most formal enterprises are at the IDA Grant (US$ million) micro or small end of the firm size spectrum and EXPECTED RESULTS Total Allocation Disbursed the skills development sector remains insufficiently • Help mobilize the private capital: the project will 9.5 0 coordinated and linked to the private sector. measure the total private investment incentivized Significant mismatches continue to arise between as a result of: (i) private capital catalyzed for a the training provided by institutions in the West Development Impact Bond (DIB) and (ii) private Bank and Gaza and what the private sector needs. investment co-financed by the private sector under Furthermore, the PA is cognizant of the need to an Investment Co-Financing Facility (ICF). The DIB is foster more private sector participation and move expected to launch in mid-2018. The ICF will launch Key Government Partners away from the public-sector-oriented, supply- with a “first mover” private investment initiative co- driven, and largely donor financed initiatives that financed by the World Bank and IFC in the Gaza Ministry of Finance and Planning have predominated to date. Meanwhile, the private Industrial Estate to install rooftop solar panels on the factories, which is expected to contribute to Private sector enterprises sector is seeking new ways to engage in tackling the national economic challenges – both in shaping and job creation by enabling access to stable and cost- financing solutions. effective electricity. • Help with Job Creation: It is expected that jobs Key Development Partners The F4J II includes a unique combination of key will be created as a result of each of the tested elements: job creation in a fragility, conflict, and DFID financing instruments. violence context; piloting of innovative financial instruments; and public-private sector linkages. State and Peacebuilding Fund 14 15 GAZA ELECTRICITY NETWORK REHABILITATION GAZA ELECTRICITY NETWORK REHABILITATION DEVELOPMENT OBJECTIVES Approved Effective Closing The project seeks to restore and improve basic electricity March 6, 2012 June 18, 2012 March 31, 2019 Electricity and related networks in Gaza have been severely compromised by years of neglect and services in Gaza. destruction due to conflict. At the same time, unmet energy demand in Gaza continues to grow rapidly. Due to these issues, the Palestinian Energy RESULTS IDA Grant (US$ million) Authority decided to increase the capacity of the • 155,000 people in Gaza provided with access to new Total Allocation Disbursed networks and also improve the network’s efficiency, or improved electricity by household connections 23 20 safety, and utilization. • The following reconnections to the grid were To enable this, the Gaza Network Rehabilitation accomplished: (i) 100 community electricity; 60 project was developed to support the investment water pumping stations; (iii) 230 commercial needs of the Gaza Electricity Distribution Company’s consumers; and (iv) 9 hospitals and clinics (GEDCO) and improve its technical, financial, and institutional capacity. Conditions in Gaza then • On the facility improvement façade, the project” (i) Key Government Partners replenished 80% of materials for emergency repairs; deteriorated even further with the onset of the 2014 Palestinian Energy and Natural Resources (ii) constructed/rehabilitated 180 kilometers of hostilities; fuel supplies to the power station were Authority (PENRA) distribution lines; and (iii) constructed/rehabilitated disrupted and a reduction in customer payment 155 transmission lines, which reflected in 28% collections occurred. Gaza Electricity Distribution Company reduction is system electricity loss. (GEDCO) The project is therefore supporting rehabilitation and • 60% re-establishment of tariff collection repair of the electricity network severely affected from the damages caused during this period. • Request for Proposal finalized for an electricity master plan for Gaza Key Development Partners The Islamic Development Bank European Commission 16 17 HEALTH SYSTEM RESILIENCY STRENGTHENING PROJECT HEALTH SYSTEM RESILIENCY STRENGTHENING PROJECT DEVELOPMENT OBJECTIVES Approved Effective Closing The project supports the Palestinian Authority in securing January 21, 2015 February 6, 2015 June 30, 2020 The Palestinian health sector is in pressing need for critical support. Factors such as increasing continuity in healthcare service delivery and building its Outside Medical Referrals (OMRs), pharmaceutical resilience to withstand future surge in demand for effective expenditures, salaries and the prevalence of Non- healthcare coverage. IDA Grant (US$ million) Communicable Diseases (NCDs) coupled with uncertain foreign aid have all contributed to Total Allocation Disbursed undermining the sustainability of the health sector’s RESULTS 8.5 4.03 financing. • In its efforts to mitigate the impact of post 2014 Gaza war, the project supported the hospitals’ The Health System Resiliency Strengthening cleaning services, which resulted in a substantial Project (HSRSP) has been prepared with the vision reduction of the accumulated medical waste and of strengthening the fiscal condition of the health the risk of infection outbreak from 60% to 10%. system and improving equity and fairness in the distribution of limited resources. • On the referral strategy and operational level, the Key Government Partners project: (i) completed a referral master plan that Ministry of Health The project focuses on rationalizing OMRs (the main was endorsed by the cabinet in 2016; (ii) is currently reason behind the arrears and deficit), and also finalizing a National Pricing Reference Schedule; (iii) Health Professional Forum supports capacity building at the MOH. assisted in enhancingthe institutional capacity of the Strategic Purchasing Unit in charge of managing referrals through the hiring of core staff such as financial and medical auditors; (iv) conducted Key Development Partners a comprehensive Government Health Insurance Management Information System business analysis; European Union and (v) finalized an action plan for the Universal Italian Cooperation Health Coverage Roadmap. • Project upgraded the quality of medical services USAID provided by governmental hospitals. This was WHO achieved by purchasing medical equipment for two major hospitals in the Southern Governorate DfID in six operating rooms at Alia Public Hospital, and an ultrasound doppler and a sterilizer for Beit Jala Hospital. 18 19 HEBRON REGIONAL WASTEWATER MANAGEMENT PROJECT (PHASE I) HEBRON REGIONAL WASTEWATER MANAGEMENT PROJECT (PHASE I) DEVELOPMENT OBJECTIVES Approved Effective Closing The project seeks to reduce the environmental pollution from April 22, 2015 February 10, 2016 December 31, 2022 In Hebron Governorate, 10,000 CM per day of sewage of Hebron Municipality flows untreated wastewater produced in the Hebron Municipality. to the eastern aquifer and the communities along the sewage stream in Wadi As-Samen, which runs south towards the green line with Israel. While the RESULTS IDA Grant (US$ million) Israel is treating the sewage from Wadi As-Samen, • An access road to the site of the future treatment Total Allocation Disbursed the treatment costs are charged to the Palestinian plant, to the south of Hebron city, has already been 4.5 .85 Authority and the treated effluent does not benefit completed. the Palestinian farmers from using it for agriculture. Parallel financing 4.82 • Construction and operation of the wastewater Based on the Palestinian Authority’s plan, the treatment plant is expected within few months. Hebron Regional Wastewater Management will • Technical Assistance to Hebron Municipality for the erect a wastewater treatment plant to address the environmental challenge. establishment of a water utility, with appropriately Key Government Partners trained staff and adequate wastewater tariff, will start within weeks. Palestinian Authority Hebron Municipality Key Development Partners AFD, USAID, and EC 20 21 LOCAL GOVERNANCE AND SERVICES IMPROVEMENT PROGRAM LOCAL GOVERNANCE AND SERVICES IMPROVEMENT PROGRAM DEVELOPMENT OBJECTIVES Approved Effective Closing The project seeks to strengthen the local government financing November 2, 2015 Not yet December 31, 2020 Strengthening Local Government Units (LGUs) and enabling them to perform as fully functional local system and improve local service delivery in Program Villages. governments accountable to citizens are key priorities for the Palestinian Authority (PA). However, support (US$ Total Disbursed from donors and the PA has largely focused on service RESULTS million) Allocation delivery infrastructure with little attention to issues of IDA Grant 5 2 LGU management, financing and performance. • A number of key reforms in fiscal transfer system were carried out: the annual capital grant allocation Co-financing 13 0 The PA is now emphasizing local infrastructure service formula was approved by the Palestinian Authority, delivery in a more accountable and responsive manner. However, institutional challenges related to sustainable and the timely communication and transfer to financing and accountable service delivery persist. Village Councils (VCs) of the formula-based Annual The PA recognizes that the current financing model is Capital Investment Grants sustained. ad-hoc and requires substantial reforms to render it transparent and predictable. • Program target has been surpassed (75% vs 60%) of Key Government Partners VCs submitting electronically their annual budget to The Local Governance and Services Improvement Ministry of Local Government the Ministry of Local Government on time and their Program (LGSIP) directly supports the PA’s Village budgets disclosed publicly. Support Program outlined in the National Development Municipal Development and Lending Fund Plan 2014-2016 and the sector strategies for developing • 19 (of the target 22) Joint Service Councils have a systematic and transparent funding and capacity Ministry of Finance qualified to obtain LGISP funding for joint projects. development mechanism for improved service delivery in villages. A Program for Results, the LGSIP is helping • The number of people benefiting from improved system changes by leveraging the actions of the Program service delivery in Program villages has already Key Development Partners Action Plan and Disbursement Linked Indicators to trigger needed reforms in the sector. LGSIP is financing reached almost 75% of the project mid-term target. Belgium delivery of local services by Village Councils (including joint projects among VCs), and capacity support. • 139 VCs will complete their Annual Capital Investment Plans this year and 61 VCs will update Denmark their existing ACIPs. Germany Sweden Switzerland 22 23 NORTH GAZA EMERGENCY SEWAGE TREATMENT NORTH GAZA EMERGENCY SEWAGE TREATMENT DEVELOPMENT OBJECTIVES Approved Effective Closing The project aims to mitigate the immediate gathering September 7, 2004 July 31, 2012 June 30, 2018 Due to the ongoing conflict in Gaza, wastewater treatment systems were below standard. Adequate health and environmental safety threats to the communities wastewater treatment and disposal were lacking, surrounding the effluent lake at Beit Lahia Wastewater Treatment Plant; and to provide a satisfactory long-term (US$ million) Total Allocation Disbursed infrastructure was damaged, treated wastewater reuse was not exploited, related laws needed to be solution to the treatment of wastewater for the Northern IDA Grant 44 44 implemented, and collections/tariffs were insufficient Governorate in Gaza. Co-financing 5 3.7 to cover costs of the wastewater treatment system. With this as a backdrop, after the 2003 rainy season, there was a risk of the effluent lake at the RESULTS Beit Lahia Wastewater Treatment Plant overflowing • Wastewater pipeline installed (8 km) and associated Key Government Partners again (as it had in 1989 and 1992). terminal pumping station are constructed to Palestinian Water Authority bring sewage from the Beit Lahia lake to the new Recognizing the immediate and serious threat that WWTP; infiltration basins to infiltrate the treated overflow posed both as a health problem for the Key Development Partners wastewater back into the aquifer are constructed people in the surrounding area and environmental and maintained. The European Investment Bank concerns, the Palestinian Water Authority initiated French Development Agency temporary emergency procedures to prevent the • New WWTP is constructed and a 2-year operations overflow. and maintenance contract has started to gradually Government of Belgium enable Palestinian stakeholders to take over the The NGEST project was developed as an emergency The European Commission operation of the WWTP. response to mitigate the impact of this crisis in the • Once fully operational (planned for May 2018), The Swedish International northern part of Gaza. It also provides longer term Development Agency solutions by operating a new wastewater treatment 550,000 people will benefit from wastewater facility with improved effluent quality standards. treatment interventions, and the effluent lake will Denmark be drained and no longer a threat to the surrounding Finland communities at Beit-Lahia. The Netherlands Portugal Croatia 24 25 SECOND MUNICIPAL DEVELOPMENT PROJECT SECOND MUNICIPAL DEVELOPMENT PROJECT DEVELOPMENT OBJECTIVES Approved Effective Closing The project seeks to improve municipal management practices March 23, 2013 August 22, 2013 February 28, 2018 The Palestinian population is largely urban with 74 % living in 134 municipalities. Although the for better service delivery and municipal transparency, and Palestinian Authority (PA) and municipalities to restore priority municipal services following the conflict in made significant progress in local service delivery, Gaza. The PDO builds on the first project but also introduces (US$ million) Total Allocation Disbursed municipal governments continue to face challenges a focus on service delivery, which is a sector level goal of the PA’s multiphase MDP. The PDO was revised to reflect the IDA Grant 13 13 with the coverage and the quality of municipal services. Budgets cut, poor management, and a emergency response additional financing after the conflict in Co-financing 44.70 44.67 culture of non-payment among users create financial Gaza in 2014. difficulties to improve services. In 2009, the PA developed the Municipal Development Program which was supported by seven donors including the RESULTS Bank through the multiphase Municipal Development Key Government Partners • Established a performance ranking system that Project (MDP). rewards transparency and good governance, and a Ministry of Finance fiscal transfer system that also coordinates donor MDP2, completed in February 2018, aimed to Ministry of Local government support. strengthen local government through greater fiscal Local Governance Units and administrative autonomy. It supported the • 80 municipalities graduated up the performance Municipal Development and Lending Fund which was ladder, with 132 municipalities updating their fixed Key Development Partners created in 2005 to address financing and capacity assets, 81% of municipalities set up east two public building needs of municipalities. The project helped disclosure mechanisms, and 90% of municipalities Belgium (BTC) improve municipal management and governance recording at least 20% reduction in processing time Denmark (DANIDA) practices, and contributed to better coverage and for at least two of the defined set of services. improved quality of services. European Commission (EC) • 2.5 million beneficiaries from public parks France (AFD) established and some 400 kms of road constructed and rehabilitated. Germany (GTZ) • 125 municipalities annually updating their Strategic Netherlands (VNG) Development and Investment Plans. Sweden (SIDA) • 25 municipalities piloting projects including those Switzerland (SDC) on renewable energy, E-municipality, and Local Economic Development. 26 27 THIRD MUNICIPAL DEVELOPMENT PROJECT THIRD MUNICIPAL DEVELOPMENT PROJECT DEVELOPMENT OBJECTIVES Approved Effective Closing The project aims to enhance the institutional capacity July 21, 2017 December 14, 2017 February 28, 2022 Local Government Units (LGUs) are critical for the delivery of key infrastructure and basic of municipalities in the West Bank and Gaza for more services. Yet they struggle to meet their assigned accountable and sustainable service delivery. functions due to sub-optimal revenue potential, (US$ million) Total Allocation Disbursed weak budgetary practices, and administrative fragmentation. Most municipalities provide fewer RESULTS IDA Grant 16 0 than 12 of the 27 prescribed services specified • Strengthened municipal institutions through the Co-financing 20 0 by the Local Government Act of 1997. Municipal provision of block and performance based grants capital investment expenditures remain small and insufficient to meet the critical needs for • Accountable and responsive service delivery through service extensions and economic development in the public disclosure of executed budget and Key Government Partners rapidly growing municipalities. The low municipal executed SDIP Ministry of Finance, financial and institutional capacity is also limiting • Financially sustainable municipalities with Ministry of Local government, the potential to mobilize private capital for urban operational and enterprise surplus and no increase infrastructure. Local Governance Units in arrears The Municipal Development Project series is helping • Citizen engagement throughout the life cycle of Key Development Partners municipalities address these challenges. The recently sub-projects. launched third MDP aims to consolidate and scale Belgium (BTC) up past gains under MDP 1 and MDP 2 in municipal • Strengthened linkages with the private sector Denmark (DANIDA) performance and accountability enhancement. by enhancing the capacities of municipalities to MDP3 will also strengthen the enabling environment partner with the private sector in municipal service European Commission (EC) at the central level and municipal partnerships with delivery and local economic development. France (AFD) the private sector to improve the efficiency and • Municipalities being able to mobilize private sector Germany (GTZ) sustainability of municipal services. the MDP will resources to finance local service delivery. continue to serve as a model for an eventual fiscal Netherlands (VNG) transfer system for the PA. Sweden (SIDA) Switzerland (SDC) 28 29 INTEGRATED CITIES AND URBAN DEVELOPMENT INTEGRATED CITIES AND URBAN DEVELOPMENT DEVELOPMENT OBJECTIVES Approved Effective Closing The project aims to enhance the capacity of participating September 21, 2016 December 5, 2016 June 30, 2021 Current urban planning in Palestine is subject to weak methodologies, disjointed approaches, and a urban areas to plan for sustainable urban growth. lack of forward-thinking elements. Local Governance Units (LGUs) have insufficient resources, tools, and knowledge and at the same time are overwhelmed RESULTS IDA Grant (US$ million) by existing demands for services. They are unable • All the ICUD beneficiary urban areas have established Total Allocation Disbursed to efficiently and effectively utilize their limited intra-urban area coordination mechanisms to available space, nor to forecast for future needs and 5.0 0.52 carry out project activities for joint planning and manage overall urban growth. development. Building often precedes planning and service delivery, • Training workshops for urban areas on the utilization resulting in inefficient land use and infrastructure of urban growth scenarios. development. Traffic congestion, mobility constraints and insufficient infrastructure among LGUs plague all • Demand-based capacity development plans have Key Government Partners been jointly developed and initial procurement is urban areas. Urban connectivity issues are affecting The Ministry of Local Government, the underway for all 5 urban areas. the access to livelihoods, social development, and Municipal Development and Lending Fund, the impeding much-needed economic growth. • A workshop conducted for the newly elected mayors Ministry of Finance and Planning. to orient and integrated them into the planning In line with the PA’s vision to support the Palestinian project. local government sector in a comprehensive and territorially integrated way that addresses the diverse • Launch of the urban growth scenario modeling and needs of local authorities, ICUD will strengthen the training for urban areas by an international expert capacity of the urban areas to plan for sustainable firm in April 2018. urban growth. The project will support them to create the integrated regional spatial, social economic growth frameworks under which metropolitan level investments can be substantiated and funded. 30 31 EDUCATION TO WORK TRANSITION EDUCATION TO WORK TRANSITION DEVELOPMENT OBJECTIVES Approved Effective Closing Equipping the workforce with job-relevant skills is a The project aims to improve education to work transition of key priority and challenge. Palestine has experienced May 15, 2012 July 31, 2012 January 31, 2022 young Palestinians attending participating tertiary education a doubling of students every 15 years and despite institutions (TEIs) through partnerships between TEIs and the labor force becoming more educated, educational the private sector’s employers and capacity enhancement of attainment is low relative to comparator countries. the Ministry of Education and Higher Education. IDA Grant (US$ million) Labor force participation is also low largely due to low female participation and high unemployment, RESULTS Total Allocation Disbursed particularly among highly skilled women. One of • Reduction in unemployment rate for participating 11.5 7.2 the objectives of the PA’s Education Development TEIs by 10%. Strategic Plan 2008-2012 (EDSP) was to move from focusing on access to education towards quality of • 11,720 people are using the graduate tracking portal education for all. The education system, however, • 72% of the subprojects now jointly design study has been focusing mainly on achieving traditional Key Government Partners programs between participating TEIs and employers. cognitive skills while mismatches remain in the This led to 94% of the subprojects are making work supply of skills relative to their demand. Ministry of Education and Higher practicums available to students Education; Tertiary Education Institutes The Education to Work Transition project (E2WTP) • 6380 students including 49% female, are benefiting was created to tackle this issue. The main component directly from projects by completing job placement of E2WTP is the Quality Improvement Fund (QIF) programs and are supported in their final year which aims at developing and implementing Key Development Partners research project employment oriented education programs in GTZ, partnership with the private sector. • 20 out of 33 subprojects already completed. They were awarded to 21 Tertiary Education Institutes BTC partnering with private sector. EU • After establishing partnerships with TEIs, employers of at least nine different economic sectors regularly provide skill practice places to participating students • The study programs, syllabus and teaching methods of at least 16 TEIs (26 programs) have been redesigned with full involvement of the private sector. 32 33 CASH TRANSFER PROJECT CASH TRANSFER PROJECT Historically, the social assistance sector lacked DEVELOPMENT OBJECTIVES Approved Effective Closing donor coordination and effective poverty-targeting The project aims to mitigate the impact of the continued April 28, 2011 May 23, 2011 June 30, 2018 mechanism. In addition, the limited institutional socio-economic crisis on a subset of the extremely poor and capacity of the Ministry of Social Development most vulnerable households and to support the Palestinian (MoSD) prevented it from dramatically reforming Authority’s efforts to continue reforms of the Cash Transfer the Social Safety Net (SSN) and from managing Program (CTP). IDA Grant (US$ million) an advanced large-scale cash assistance program. Further, there was no national strategy or action RESULTS Total Allocation Disbursed plan to inform and guide social protection initiatives. • Quarterly cash benefits reached approximately, 20.0 20.0 115,000 poor households (44% of which are female- To address some of these limitations hampering headed households), which covers more than half the effective functioning of the sector, the World of the poorest quintile. The project is also devoting Bank promoted deep policy reforms in 2004. This two-thirds of its resources to the extreme poor. resulted in a dramatic shift in SSN policy which About two third of CTP beneficiaries reside in Gaza included: (1) an emphasis on assisting the extremely Strip and one third in the West Bank. Beneficiaries Key Government Partners poor households as a priority; and (2) a reliance on are distributed as follows: 54% in cities; 20% in a poverty targeting formula, rather than categorical refugee camps and 26% in rural areas. 53% of CTP Ministry of Social Development, measures, for selecting the poor households. beneficiaries have refugee status. Ministry of Finance and Planning In 2010, the EU funded Special Hardship Cases • The project effectively engages citizens through a Program and the World Bank funded Social Safety well-functioning Grievance and Redress Handling Net Reform Project were merged into one program Mechanism. Key Development Partners – called the Cash Transfer Project (CTP). CTP • Beneficiary councils and joint planning groups has become the largest social assistance program, were established by MoSD as part of the outreach European Union providing needed support to the extremely poor and campaign. Consultation meetings with local vulnerable poor Palestinian households, including communities, civil society organizations and various female-headed households, the elderly, and persons stakeholders held. This mechanism combined with with disabilities and chronic illnesses. Administered the GIS use promoted a more participatory and by MoSD, the CTP is now the PA’s main instrument to transparent beneficiaries’ selection process and combat the high rates of poverty and unemployment built trust among citizens and key stakeholders. in West Bank and Gaza. • MoSD plans to revise the Proxy Means Test (PMT) formula based on the most recent Palestinian Expenditure Consumption Survey and Palestinian Central Bureau of Statistics data to further improve 34 the model. 35 SOCIAL PROTECTION ENHANCEMENT PROJECT SOCIAL PROTECTION ENHANCEMENT PROJECT DEVELOPMENT OBJECTIVES Approved Effective Closing The Project seeks to establish a single targeting and referral July 27, 2017 October 10, 2017 March 21, 2023 Political shocks and episodes of conflict frequently erode welfare gains and increase the risk of the system to provide cash benefits and services to poor and vulnerable falling below the poverty line, particularly vulnerable households. in Gaza. Vulnerability is a major area of concern with IDA Grant (US$ million) regard to women who very often are exposed to household violence. RESULTS Total Allocation Disbursed • The project will address multi-dimensional poverty 15 2 Through its new Social Development Sector Strategy and to promote productive inclusion by introducing (SDSS), the PA aims at improving the protection of an innovative case management system to provide the poor and their access to economic opportunities. services to the extreme poor. Under this new strategic vision, social policies aim to protect the poor and the vulnerable and also help • In the short-term, the project will increase food them grow, become independent and contribute to consumption (quantity and quality of meals). economic development. Key Government Partners • In the medium/long-term: the project will promote the protection and growth of human capital of Ministry of Social Development Through building up on the previous Cash Transfer Project that provided cash assistance to poor targeted children from extreme-poor households, Ministry of Finance and Planning households, the Social Protection Enhancement complemented by support services identified Project (SPEP) will support the implementation of through the CMS. It will also aim at mitigating high the SDSS. rates of violence against women and girls through prevention counseling and referral services during home visits. 36 37 TEACHER EDUCATION IMPROVEMENT PROJECT TEACHER EDUCATION IMPROVEMENT PROJECT DEVELOPMENT OBJECTIVES Approved Effective Closing To improve the quality of teacher education of class teachers June 24, 2010 October 28, 2010 June 30, 2019 Education is highly valued across the Palestinian teaching in West Bank and Gaza thereby contributing to territories and public spending on education has enhancing student learning in primary schools. increased in real terms in the last decade. However, teacher education programs at the pre-service RESULTS IDA Grant (US$ million) and in-service teacher education as well as the Total Allocation Disbursed • 80 percent of teachers participating in higher continuous professional development levels need education institutions are scoring above 70% in the 8.0 6.4 further improvement. Readiness to Teach instrument. Increasing the ratio The Palestinian Authority’s Teacher Education of qualified teachers from 62% to 80% Strategy found that teacher education programs • Primary education degree programs for new were outdated and over-theoretical, with insufficient teachers were redesigned to focus on adequate Key Government Partners focus on the practicalities of actual teaching, practicum training. inadequate teaching practice arrangements, Ministry of Education and Higher Education; and program delivery methods that helped to • 2,011 under-qualified teachers have been trained Local Universities: perpetuate rather than prevent the continuation of to upgrade their teaching skills thus bringing their outdated, teacher-centered, transmission-oriented, qualifications to an equivalent of a professional UK Canterbury Christ Church University methodologies on the part of teachers and student certification. Around 260 classroom teachers were governmental, teachers. trained to be mentors. In 2010 the World Bank Teacher Education • The Project created and implemented an up-to-date UNRWA and private schools in the West Bank Improvement Project stepped in, targeting 1st practicum template in the West Bank and Gaza to and Gaza through 4th grade classrooms, with a focus on better train new classroom teachers. collaboration with well-known local universities. Key Development Partners • The participating universities completed the design Additional financing was added to the project in of the practicum manual that was used by 293 the Joint Financing Partners, January 2016 to develop new core curricula and graduates increase the level of pre-service teacher development UNESCO, • 70 participating schools (45 in West Bank and 25 in Gaza) received teaching materials, including USAID, technology that facilitated teachers´ development. AmidEast • Teachers created communities of practice, which had positive impact on their behavior, attitudes and expectation. 38 39 ELECTRICITY SECTOR PERFORMANCE IMPROVEMENT PROJECT ELECTRICITY SECTOR PERFORMANCE IMPROVEMENT PROJECT DEVELOPMENT OBJECTIVES Approved Effective Closing Project Development Objective is to enhance institutional July 27, 2017 January 16, 2018 June 20, 2022 In the last two decades, electricity sector reform process has improved and consolidated the energy capacity of the energy sector, improve efficiency of the sector from a fragmented municipal based system distribution system in targeted areas, and pilot a new business to a more efficient single buyer model in West Bank model for solar energy service delivery in Gaza. (US$ million) Total Allocation Disbursed & Gaza. IDA Grant 4 0 As continuation of the reform progress, further efforts RESULTS Co-financing 7 7 are required to achieve improvements in revenue • 90% collection rate (revenue compared with billed management, address power supply constraints, and amount) by PETL from DISCOs (now 0%) ensure a creditworthy and sustainable electricity sector in Palestine. • Electricity losses reduced by 4% due to enhanced capacity and; implementation of revenue protection To address these issues, the Electricity Sector program (covering 13,200 large consumers) and an Performance Improvement project was designed and improved management information systems (MIS) Key Government Partners became effective on January 16, 2018. in the 5 Distribution Companies in West Bank PENRA, PETL, PERC, DISCOs • 800 rooftop solar PV systems installed by households (including 100 by women headed households) and 250 solar PV systems installed by SMEs in Gaza, Key Development Partners through the revolving fund. The Royal Government of Norway through the PID MDTF 40 41 GAZA SOLID WASTE MANAGEMENT PROJECT GAZA SOLID WASTE MANAGEMENT PROJECT DEVELOPMENT OBJECTIVES Approved Effective Closing To improve solid waste management services in the Gaza March 31, 2014 July 9, 2014 November 30, 2019 The generation and managed disposal of solid waste in the Palestinian Territories is a well-recognized Strip. development concern given the volume of waste generated. Gaza in particular faces technical, environmental, social, institutional and financial RESULTS IDA Grant (US$ million) challenges to handle this volume, due to restricted • The Al Fukhari dumpsite has stopped operation and Total Allocation Disbursed access (border closures). works to stabilize the dumpsite have begun. 10.75 2.5 The Gaza Solid Waste Management project aims to • 16 waste pickers, including 1 female, have been address these issues by supporting a combination provided with safe exit from the unsanitary of (i) strategic infrastructure investments (including conditions at the old Al-Fukhari dumpsite, after construction of a new landfill, two transfer stations, being provided with temporary jobs in the beneficiary new equipment and an access road, closing the municipalities. The project created 2,200 days of Key Government Partners existing dump site, purchasing land for the new temporary work. Municipal Development and Lending Fund landfill); (ii) institutional strengthening and capacity • A short-term disposal cell has been constructed building and; (iii) skills and technology development. The Joint Services Council for Solid Waste Management for Khan Younis, Rafah, and Middle Area. Key Development Partners European Commission French Agency for Development Islamic Development Bank/UNRWA, Government of Sweden (through the PID MDTF), UNDP 42 43 OUTPUT-BASED AID PILOT SOLID WASTE MANAGEMENT OUTPUT-BASED AID PILOT SOLID WASTE MANAGEMENT IN THE WEST DEVELOPMENT OBJECTIVES Approved Effective Closing BANK PROJECT The project aims to improve access to quality and financially February 8, 2013 October 2, 2013 June 30, 2018 sustainable solid waste management services for users in the Unsanitary waste collection and disposal in the southern West Bank. southern West Bank has been a serious public health and environmental hazard, with the poorest IDA Grant (US$ million) governorates of the southern West Bank, Bethlehem RESULTS Total Allocation Disbursed and Hebron, generating approximately 20% of the West Bank’s waste. Prior to the implementation of • 100% local authorities collectively achieved 8.28 8.28 a viable solid waste disposal scheme in the southern acceptable cleanliness of streets, with 100% solid West Bank under a previous project (Southern West waste sanitarily managed. 84 % increase in billing Bank Solid Waste Management Project), disposal to cost ratio has been achieved. Solid Waste of waste at unregulated dumpsites at the edge of Management Tariff and Costing Guideline are towns and villages was very common. developed and enforced. Key Government Partners • Percentage of citizens who have been paying their These actions mainly affected the poorer population. Ministry of Finance solid waste fees reached 76%, and 72% in Hebron In addition to the disposal, it was also necessary to and Bethlehem governorates respectively. Joint Service Council for Hebron and improve waste collection services to achieve the overall integrated goal of the Palestinian Authority’s Bethlehem (JSC-H&B) • Plans for the closure of unsanitary dumpsites Solid Waste Management Strategy. developed. Plans for achieving environmental best Ministry of Local Government practices are produced and continue to be monitored. This pilot Global Partnership for Output Based Aid Ministry of Environmental Affairs (MEnvA). (GPOBA) project focuses on improving upstream • An institutional framework has been established for user service to improve how citizens pay for solid the integrated solid waste management plan. waste disposal. It also provides subsidies to local authorities to enable households to benefit • A Management Information System for monitoring municipal solid waste management performance Key Development Partners from better quality, affordable, sustainable waste collection, transport, and safe disposal. The subsidy has been established. European Union. IFC The World Bank Group. is provided to local authorities that meet minimum targets for achieving five key performance indicators and needs to be used during the first four years of the operation of the Al-Minya landfill - when revenues from user fees are not enough to cover the increased costs of adequate service delivery. 44 45 GAZA SUSTAINABLE WATER PROGRAM GAZA SUSTAINABLE WATER PROGRAM DEVELOPMENT OBJECTIVES Approved Effective Closing The project aims to make available to the Palestinian Water October 12, 2015 January 5, 2016 May 31, 2018 The Gaza Strip is located in an area of extremely scarce renewable water resources. Because of this, Authority studies and key initiatives needed to support the Gaza has experienced an unsustainably high rate preparation of the Gaza Sustainable Water Supply Program. of groundwater extraction that has, in turn, led IDA Grant (US$ million) to lowering the water table level and the gradual intrusion of seawater into the aquifer. Potable RESULTS Total Allocation Disbursed water supply via the piped network is now poor in • Associated Works infrastructure is designed, the 2.5 2.28 terms of both quantity and quality, with most of tender documents are prepared and are now ready the population forced to buy expensive desalinated for bidding as soon as funding is available. water from small producers for potable purposes. • Non-revenue water program designed and ready for The Gaza Sustainable Water Supply Program is implementation as soon as funding is available. supported by a US$2.5 million small grant from Key Government Partners • The Donor Pledging conference for the entire €562.3 the Partnership for Infrastructure Development million Program (i.e., the Gaza Central Desalination Palestinian Water Authority Multi-Donor Trust Fund. This grant is funding the Plant plus the Associated Works; recently updated Associated Works that are conceived to substantially Coastal Municipal Water Utility figures) was held on 20 March 2018 and €456 augment the water transmission, storage, mixing million was pledged. Arab donors, through the and distribution infrastructure for potable water in Islamic Development Bank, have committed to fund the whole of Gaza. 50% of the Program’s cost (included in the €456 Key Development Partners million pledged). The European Investment Bank (EIB) European Commission USAID 46 47 THE WORLD BANK GROUP www.worldbank.org/ps