Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) GZ-Water Sector Capacity Building (P117443) MIDDLE EAST AND NORTH AFRICA | West Bank and Gaza | Water Global Practice | Special Financing | Technical Assistance Loan | FY 2011 | Seq No: 13 | ARCHIVED on 01-Jun-2017 | ISR27986 | Implementing Agencies: Ministry of Finance, Palestinian Water Authority Key Dates Key Project Dates Bank Approval Date:31-Mar-2011 Effectiveness Date:29-Jul-2011 Planned Mid Term Review Date:28-Jan-2013 Actual Mid-Term Review Date:22-Apr-2013 Original Closing Date:31-Dec-2015 Revised Closing Date:31-Dec-2017 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project’s development objective is to strengthen the capacity of the PWA to more effectively plan, monitor, and regulate water sector development in the West Bank and Gaza. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Name Technical Planning and Advisory Team (TPAT):(Cost $4.90 M) Supplementary Studies and Training:(Cost $0.30 M) Project Management:(Cost $0.80 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  High 6/1/2017 Public Disclosure Copy Page 1 of 12 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) Implementation Status and Key Decisions The new water law, which was the main result under the Project, stated new water sector structure, at the national level: (i) Palestinian Water Authority will be responsible for policy making, planning and follow the sector restructuring, (ii) the Water Sector Regulatory Council (WSRC) to monitor and regulate the service provider performance, (iii) the Water National Company to be established to provide bulk water supply, while at the local (service delivery) level, (iv) viable water utilities to provide water for domestic use and (v) the water users associations to provide water for irrigation purposes. Many outputs (policies, strategies, plans, bylaws, regulations, working procedures, etc.) have been developed in drafts or final versions under the project, which are very important for the water sector development and for the PWA institutional capacity. The capacity of PWA as the policymaking and general planning body has been improving because the PWA staff are leading the development and implementation of these policies and plans and training was conducted in this regards. However, the PWA need to redeploy its staff on the new organization structure that should be approved by the Cabinet of Ministers, so the staff would be more proactive and responsive to the sector needs. Furthermore, by completing the water sector structuring at different institutional level, PWA would delegate further the project implementation for these levels to improve their infrastructure and the service delivery. On the other hand, the WSRC is progressing toward being the regulator, where it has recruited most needed staff, developed internal bylaws and regulations, conducted several workshops with the service providers to inform about its mandate and the expected relationship between them and the service providers. It also collected data from main service providers and developed three monitoring reports on their performance for years 2013, 2014 and 2015. The financial sustainability of the WSRC hinges on the approval of the licensing bylaw, which is drafted and need to be approved by the CoM. Lately, PWA, WSRC and the office of the Prime Minister met and agreed to expedite the finalization and approval of the licensing bylaw before the end of 2017. To complete the water sector restructuring process, the PWA shall establish the National Water Company (NWC), they have completed the road map that suggested the way forward. PWA started approaching donors to support the action plan, which starts by improving the ongoing the West bank Water department, which is the bulk water supply institution and then integrated with the NWC that would be established along the way. At the Local level, a road map to establish the water Regional Utilities (WRUs) is being developed and the final draft has been discussed in a workshop attended by stakeholders. The World Bank next operation would support the establishment of viable water utilities at the local level. Following the development of the road maps, PWA shall develop two bylaws for the establishment of the NWC and the WRUs, while the latter is in draft already. 6/1/2017 Public Disclosure Copy Page 2 of 12 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  High  High Macroeconomic  --  High  High Sector Strategies and Policies  --  Moderate  Substantial Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Moderate  Substantial Environment and Social  --  Low  Low Stakeholders  --  Substantial  Substantial Other  --  --  -- Overall  --  Substantial  High Results Project Development Objective Indicators PHINDPDOTBL  Sector Reform Planning Document developed, Updated yearly approved yearly by PWA and COMSC (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/1/2017 Public Disclosure Copy Page 3 of 12 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) Value N Y Y Y Date 01-Jan-2011 01-Nov-2016 28-Apr-2017 31-Dec-2017 PHINDPDOTBL  Water law is updated and consulted with stakeholders and approved by responsible Authorities (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Jan-2011 01-Nov-2016 28-Apr-2017 31-Dec-2017 PHINDPDOTBL  Water Sector Policy and Strategy approved by PWA (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Jan-2011 01-Nov-2016 28-Apr-2017 31-Dec-2017 PHINDPDOTBL  WSRC is strengthened and Functional (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target WSRC established, WSRC has been staffed, established, staffed, strategies, and Value Not available -- strategy bylaws underdevelopment. approved and under implementation Date 24-Jun-2015 01-Nov-2016 28-Apr-2017 31-Dec-2017 Comments - BoD appointed. CEO , procurement and financial staff recruited and other needed staff were appointed, office rented, equipped and furnished. - Organizational Structure and job description developed and submitted to the CoM and approved, strategy is under preparation, communication plan prepared and is under implementation. - No licensing fee from service providers collected so far as the licensing bylaw is not approved by the Cabinet of Ministers yet, therefore 6/1/2017 Public Disclosure Copy Page 4 of 12 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) the institutional sustainability still not achieved. PHINDPDOTBL  Monitoring Reports on Service Providers performance are developed and published annually (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Three Reports were Annual report is TWO Report finalized Value None finalized for 2013, 2014 developed and for 2013 AND 2014 and 2015 disclosed Date 03-Mar-2011 01-Nov-2016 28-Apr-2017 31-Dec-2017 Comments - Service Providers Performance Report for years 2013 was done jointly with the PWA, while the WSRC published the reports for the 2014 and 2015. - Comparative reports of 2013-2014 and 2014-2015 were developed and published. - Key indicators description manual was prepared and distributed to service providers. Overall Comments Intermediate Results Indicators PHINDIRITBL  Quarterly Status Memoranda on Sector Reform produced (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Jan-2011 01-Nov-2016 28-Apr-2017 31-Dec-2017 6/1/2017 Public Disclosure Copy Page 5 of 12 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) PHINDIRITBL New PWA organizational structured established and the redeployed staff implement its functions based on the developed job descriptions (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Done, but still needs Done, but still needs the Value No the Cabinet of Cabinet of Ministers Yes Ministers endorsement. endorsement. Date 01-May-2011 01-Nov-2016 28-Apr-2017 31-Dec-2016 Comments The Organizational structure approval shall pass through long approval process by different government agencies (i.e. PWA as the subject institution, the General Employees Council Committee, The cabinet of minister specialized committee, then the approval from the Cabinet of Ministers). The PWA organizational structure now is at the cabinet of ministers specialized committee. PHINDIRITBL  Technical regulations, guidelines, standards, are reviewed/ updated/, developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.00 12.00 14.00 Date 01-May-2011 31-Aug-2015 02-May-2017 31-Dec-2017 Comments The list of technical regulations, guidelines, and standards: 1. Water Resources (WR) drilling, abstraction. 2. WR and facilities protection. 3. House connection regulations (endorsed)4-Technical Guidelines for the Project Management Unit (PMU) 5-PMU Financial Guidelines 6-Drinking water quality standards 7-PWA regulation on water tariff 8-PWA guidelines produced on Planning & Design 9-PWA guidelines produced on Fin & Adm. 10- Standard Operation Procedure to PWA completed 11- Licensing of services providers Regulation 12-Unified Water & Wastewater Tariff & Connection Services Fees In progress 13-Updated Water & WW Sector Specifications & Design Guidelines 14- Tariff Guideline will be developed as soon as WSRC initiative of this topic is verified 6/1/2017 Public Disclosure Copy Page 6 of 12 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) PHINDIRITBL  Water Regulatory Council establishment action Plan and Bylaw developed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes (partially) Yes (partially) Yes Date 01-Jan-2011 01-Nov-2016 28-Apr-2017 31-Dec-2017 Comments Strategy and Action plan were completed and bylaws were submitted for the Cabinet of Ministers (CoM) approval. Staff started working on the mandate and issued 3 monitoring reports for years 2013, 2014, and 2015. The WSRC didn't yet act in licensing the service providers as the bylaw still needs the approval of the CoM. PHINDIRITBL  National Water Company Bylaw developed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No, still in draft Yes Date 01-Jan-2011 05-Oct-2015 28-Apr-2016 31-Dec-2017 Comments The PWA has almost finalized a road map for the establishment of the National Water Company (NWC). Bylaw is in draft and need to be consulted with stakeholders before it goes to the CoM for approval. PHINDIRITBL  Regional Water Utilities Bylaw developed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No, still in draft Yes Date 01-Jan-2011 01-Nov-2016 28-Apr-2017 31-Dec-2017 Comments The road map study and report were finalized and the bylaw is in draft. The bylaw needs to be consulted with the stakeholders before it goes to the CoM for approval. 6/1/2017 Public Disclosure Copy Page 7 of 12 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) PHINDIRITBL  Strategies produced and consulted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 10.00 9.00 Date 01-Apr-2011 01-Nov-2016 28-Apr-2017 31-Dec-2017 Comments 1-Strategy of sustainable financing for the water facilities 2-Non Revenue Water Strategy 3-Communication Strategy 4-Sludge disposal Strategy 5-Cappacity development Strategy 6- PWA Strategic Plan (2015 -2017) 7-General Policy for Water Demand Management Concepts and Principals 8-Strategies covering-Public Awareness and civil engagement 9-WSRC Strategic plan was completed 10. Trans boundary water strategy. PHINDIRITBL  Plans and planning support tools developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9.00 13.00 16.00 Date 01-May-2011 01-Nov-2016 28-Apr-2017 31-Dec-2015 Comments Plans and planning tools were developed (more than target) 1 . WSRC communication plan was completed 2 . Surface water and groundwater models produced 3 . Assessment of Hydro monitoring equipment, and specifications produced 4 . Methodology for Planning and Standard Formats produced 5 . Master Plan N-NE West Bank produced 6 . Communication plan produced 7 . PWA Implementation (business) Plan for 2015 8 . PWA Human Resource System 9 . PWA Implementation (business) Plan for 2016 10 . Complains strategy and system is developed at national level 11 . National Water Safety Plan (2012-2032) 12 . PWA implementation (business) plan for 2017. 13 . Climate change mitigation measures In Progress: 14. Water Information System developed and under implementation: There are 2 MIS systems (LIMIS and WDIS) system will be tendered 6/1/2017 Public Disclosure Copy Page 8 of 12 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) very soon. 15. Public Awareness Action Plan in preparation phase 16. Licensing for drilling and abstraction data base system in development phase (internal development by PWA) PHINDIRITBL  Relevant Studies conducted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 3.00 Date 01-May-2011 01-Nov-2016 01-Nov-2016 31-Dec-2015 Comments List of Studies: • Assessment of Acquired Regional Experience on Wastewater Treatment, Reuse and Sludge Management Study • A legal study was completed by the WSRC, • Wastewater and desalination study was completed WSRC PHINDIRITBL  WSRC strategy and implementation plan developed and implemented (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 03-Mar-2011 01-Nov-2016 28-Apr-2017 30-Jun-2017 Comments Strategic plan and other technical regulations and tools were completed by the WSRC. 6/1/2017 Public Disclosure Copy Page 9 of 12 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) PHINDIRITBL  WSRC Information system created and maintained (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 03-Mar-2011 01-Nov-2016 28-Apr-2017 30-Jun-2017 Comments It's in the final stages. It would be operational by June 2017 PHINDIRITBL  WSRC Technical regulations, guidelines, standards, and systems are reviewed/ updated/, developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 11.00 11.00 Date 03-Mar-2011 01-Nov-2016 28-Apr-2017 30-Jun-2017 Comments WSRC has developed several Technical regulations, guidelines, standards, and systems as listed below: Four systems and regulations were produced on (i) administration, (ii) finance, (ii) procurement, (iii) Human Resources (HR), and (iv) internal regulations. Technical regulations and standards were established for: (i) Wastewater monitoring procedures completed, (ii) Water monitoring modules, (iii) Licensing procedures and (iv) individual service providers targets, (v) licensing procedure and (vi) comprehensive reporting toward benchmarking Three activities are under development: (i) incentives, (ii) inspection procedures and (iii) Complaints system PHINDIRITBL  PWA’s improved capacities are effectively applied as measured by (i) 85 Staff Trained; Among which 18 females, and (ii) 14 TrainingCourses conducted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 95.00 85.00 Date 01-Jan-2011 -- 28-Apr-2017 31-Dec-2017 Comments 19 training course (technical, management, financial, etc.) were provided where 95 staff members were trained among those 30 females. 6/1/2017 Public Disclosure Copy Page 10 of 12 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) Overall Comments PWA and the WSRC have developed many of the needed strategies, plans, procedures, systems and tools for the water sector and for their institutions as have been highlighted under the indictors. However, the reform in the water sector still need some important elements to complete, which are: 1. The establishment of the national water company, which this project can produce the bases (bylaw) for next operation to complete. 2. The establishment of water utilities, which of course may take several years, but this project will help in develop the essential tools (the bylaw) for to start the process. 3. The licensing bylaw for the service providers, which will help in the sustainability of the WSRC. 4. More capacity building still needed for the PWA and the WSRC to help them apply the new mandate as described in the new water law. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P117443 TF-15756 Effective USD 3.00 3.00 0.00 1.18 1.82 39% P153889 TF-19350 Closed USD 2.00 0.00 2.00 0.00 0.00 100% P117443 TF-99491 Effective USD 3.00 3.00 0.00 3.00 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P117443 TF-15756 Effective 05-Feb-2014 18-Feb-2014 02-Jun-2014 31-Dec-2015 31-Dec-2017 P153889 TF-19350 Closed 02-Jul-2015 02-Jul-2015 08-Jul-2015 31-Dec-2017 30-Oct-2015 P117443 TF-99491 Effective 03-May-2011 03-May-2011 29-Jul-2011 31-Jul-2014 31-Dec-2017 Cumulative Disbursements 6/1/2017 Public Disclosure Copy Page 11 of 12 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) Restructuring History There has been no restructuring to date. Related Project(s) P153889- Water Sector Capacity Building Project Additional Financing 6/1/2017 Public Disclosure Copy Page 12 of 12