THE WEST BANK AND GAZA PARTNERSHIP FOR INFRASTRUCTURE DEVELOPMENT MULTI-DONOR TRUST FUND (PID MDTF) TF071898, TF072778 SEMI-ANNUAL REPORT FY21 REPORTING PERIOD: JULY 1, 2020 TO DECEMBER 31, 2020 THE WEST BANK AND GAZA PARTNERSHIP FOR INFRASTRUCTURE DEVELOPMENT MULTI-DONOR TRUST FUND (PID MDTF) TF071898, TF072778 SEMI-ANNUAL REPORT FY21 REPORTING PERIOD: JULY 1, 2020 TO DECEMBER 31, 2020 Following a decision at the 2018 Oversight Group Annual Meeting, the reporting period for the PID MDTF Semi-annual Report covers the first half of the World Bank Group fiscal year, July 1 to December 31. Information is sometimes given in this report on developments that took place after December 31, 2020. This is merely for the sake of completeness and should not be construed as an extension of the reporting period. PID MDTF Semi-annual Report FY21 Contents 1. Summary 10 1.1. Key Results and Updates 10 1.2. PID MDTF Financial Data 14 1.3. Cross-cutting Themes 15 1.3.1. Gender 15 1.3.2. Citizen Engagement 17 1.3.3. Climate and Resilience 19 2. Sector Reviews 39 2.1. Water Sector 39 2.1.1. Sector Context 39 2.1.2. Progress by Activities 42 2.2. Urban Sector 47 2.2.1. Sector Context 47 2.2.2. Progress by Activities 50 2.3. Energy Sector 59 2.3.1. Sector Context 59 2.3.2. Progress by Activities 61 3. World Bank-executed TA 65 4. Program Management and Project Supervision 74 4.1. Program Management and Administration (PM&A) Window 74 4.2. Project Supervision Window 74 03 PID MDTF Semi-annual Report FY21 List of Tables Table 1: Summary of Results Matrix of Active Projects 20 Table 2: Ongoing Project Highlights 22 Table 3: PID MDTF Parallel Parent Trust Funds (TFs) 28 Table 4: TF Financial Contributions as of December 31, 2020 (Pledged and Received) 28 Table 5: PID MDTF Child TFs as of December 31, 2020 29 Table 6: PID MDTF Commitments and Allocations as of December 31, 2020 34 Table 7: Allocations and Funding Needs (US$, millions) 35 Table 8: Climate Co-Benefits in PID MDTF Co-financed Active Project Portfolio (US$, millions) 38 Table 9: Strategic Technical and Policy Studies 40 Table 10: Water Sector - Key Project Ratings 41 Table 11: Urban Sector - Key Project Ratings 48 Table 12: Energy Sector - Key Project Ratings 59 List of Annexes ANNEX 1: PID MDTF Results Matrix as of December 31, 2020 75 ANNEX 2: TF Financial Contributions as of December 31, 2020 (Pledged and Received) 79 ANNEX 3: Unaudited Trust Fund Financial Reports:TF071898, TF072778 80 04 PID MDTF Semi-annual Report FY21 The Partnership for Infrastructure Development Multi-Donor Trust Fund (PID MDTF) Semi- annual Report is prepared by the World Bank as the administrator of the trust fund. The team wishes to recognize the contributions of the task teams from all the sectors working on projects co-financed by the PID MDTF. A special note of recognition and acknowledgment to the government counterparts and development partners for their cooperation and contributions during the life of the trust fund, which have ensured the achievements of the PID MDTF program. 05 PID MDTF Semi-annual Report FY21 Abbreviations and Acronyms ACIG Annual Capital Investment Gains AF Additional Financing AFD Agence Française de Développement (French Development Agency) ASA Advisory Services and Analytics BWSU Bulk Water Supply Unit CE Citizen Engagement CMWU Coastal Municipalities Water Utility COGAT Coordination of Government Activities in the Territories DISCO Distribution Company DLI Disbursement-Linked Indicator DP Development Partner E&S Environmental and Social ESMF Environmental and Social Management Framework GA Grant Agreement GAP Gender Action Plan GCDP Gaza Central Desalination Program GEDCO Gaza Electricity Distribution Company GPRBA Global Partnership for Results-Based Approaches GRM Grievance Redress Mechanism HV High Voltage IEC Israel Electric Corporation IP Implementation Progress IPP Independent Power Producer ISR Implementation Status and Results Report IVA Independent Verification Agent JSC Joint Service Council JSC-KRM Joint Service Council for Khan Younis, Rafah, and Middle Area KfW Kreditanstalt für Wiederaufbau (German Development Bank) LALAPF Land Acquisition and Livelihood Policy Framework LG Local Government 06 PID MDTF Semi-annual Report FY21 LGPMAS Local Government Performance Monitoring and Assessment System LGU Local Government Unit LIPW Labor Intensive Public Works LSAPS Liquidity Support Account and Payment System LV Low Voltage LWSC Land and Water Settlement Commission MCM Million Cubic Meters MDLF Municipal Development and Lending Fund MDTF Multi-Donor Trust Fund MENA Middle East and North Africa MIS Management Information System MoF Ministry of Finance MoLG Ministry of Local Government MPA Multi-phase Programmatic Approach MTR Midterm Review MV Medium Voltage NGWMF North Gaza Wastewater Management Facilities O&M Operation and Maintenance PA Palestinian Authority PDO Project Development Objective PENRA Palestinian Energy and National Resources Authority PETL Palestinian Electricity Transmission Company Ltd. PIC Project Implementation Consultant PID Partnership for Infrastructure Development PIU Project Implementation Unit PLA Palestinian Land Authority PM&A Program Management and Administration PMIS Project Management Information System PMO Prime Minister’s Office PMSU Project Management Support Unit 07 PID MDTF Semi-annual Report FY21 PMU Project Management Unit PPE Personal Protective Equipment PV Photovoltaic PWA Palestinian Water Authority QC Quarantine Center RF Results Framework RPP Revenue Protection Program RWU Regional Water Unit SCADA Supervisory Control and Data Acquisition SDP Strategic Development Plan SIA Social Impact Assessment SLR Systematic Land Registration SMEs Small and Medium Enterprises SMP Social Management Plan SOP Standard Operating Procedure STLV Short-term Low Volume TA Technical Assistance TF Trust Fund TFGWB Trust Fund for Gaza and West Bank ToR Terms of Reference TPS Terminal Pumping Station UNDP United Nations Development Programme VC Village Council WASH Water Supply, Sanitation, and Hygiene WB&G West Bank and Gaza WSRC Water Sector Regulatory Council WHO World Health Organization WWTP Wastewater Treatment Plant 08 PID MDTF Semi-annual Report FY21 Project Acronyms Acronym Project Name Project Number Advancing Sustainability in Performance, Infrastructure, and ASPIRE MPA Reliability of Energy Sector in the West Bank and Gaza Multi- P170928 phase Programmatic Approach Water Security Development - Gaza Central Desalination AWP-I P168739 Program - Associated Works Phase I Project West Bank and Gaza Electricity Sector Performance ESPIP P148600 Improvement Project GSWMP Gaza Solid Waste Management Project P121648 HRWMP-I Hebron Regional Wastewater Management Project - Phase I P117449 LGSIP Local Governance and Services Improvement Program P148896 MDP-2 Second Municipal Development Project P127163 MDP-3 Third Municipal Development Project P159258 NGEST Northern Gaza Emergency Sewage Treatment Project P074595 RERP Real Estate Registration Project P168576 WMS Project Wastewater Management Sustainability Project P172578 09 PID MDTF Semi-annual Report FY21 1. Summary 1.1. Key Results and Updates The ongoing activities co-financed by the Partnership for Infrastructure Development Multi- Donor Trust Fund (PID MDTF) are on track to achieve their Project Development Objectives (PDOs) even in the midst of COVID-19.1 Implementation Status and Results Reports (ISRs) were prepared and published during the reporting period for eight operations that are currently under implementation: (a) Water Security Development - Gaza Central Desalination Program - Associated Works Phase I Project (AWP-I); (b) Wastewater Management and Sustainability (WMS) Project; (c) Third Municipal Development Project (MDP-3); (d) Local Governance and Services Improvement Program (LGSIP); (e) Gaza Solid Waste Management Project (GSWMP); (f) Real Estate Registration Project (RERP); (g) West Bank and Gaza (WB&G) Electricity Sector Performance Improvement Project (ESPIP); and (h) Advancing Sustainability in Performance, Infrastructure, and Reliability of Energy Sector in the WB&G Multi-phase Programmatic Approach (ASPIRE MPA). Five activities are evaluated to be making satisfactory progress toward achieving their PDOs and producing satisfactory outcomes in the implementation phase. The PDO and IP ratings for the MDP-3 and RERP are downgraded to Moderately Satisfactory due to the overall delays and challenges caused by the COVID-19 pandemic. The ESPIP is rated Satisfactory and Moderately Satisfactory for its PDO and IP ratings, respectively. A detailed summary and explanation of ISR ratings are included in Section 2. Water. After AWP-I achieved effectiveness on April 26, 2020, the project has advanced satisfactorily. Based on the February 2021 virtual water portfolio mission, as well as close iterations between the World Bank team and the Palestinian Authority (PA) in the interim, implementation of the AWP-I’s components is advancing in line with its PDO, although some components have faced minor delays due to COVID-related impacts. Procurement of packages under Component 1 (Improved Supply of Bulk Water to the Southern and Middle Governorates of Gaza) is moving forward as scheduled with the exception of connection works in the middle area covered by the project. Under Component 2 (Capacity Building and Performance Improvements of Selected Institutions), in close coordination with Palestinian Water Authority (PWA), key activities have continued to advance in support of the reform efforts defined by the 2014 Water Law, as illustrated by the cabinet decision to form the National Water Company in November 2020. The WMS Project achieved effectiveness for implementation in September 2020, after Board approval of the project in June 2020. For Component 1 (Support for the continued operation of the North Gaza Wastewater Management Facilities [NGWMF]), coordination between PWA, the World Bank, and the donor community helped successfully resolve a blockage of fuel entry into Gaza, which had caused interruption of power supply to the NGWMF in September 2020. Moreover, under Component 3 (Capacity building for sustainability of wastewater services), PWA and the World Bank agreed on the steps necessary for the Coastal Municipalities Water Utility 1 Based on the World Bank rating scale, the five active operations—AWP-I, WMS Project, GSWMP, LGSIP, and ASPIRE MPA—are rated Satisfactory in terms of Progress toward Achievement of PDO and Overall Implementation Progress (IP) categories. MDP-3 and RERP have been downgraded to Moderately Satisfactory in terms of the PDO and IP ratings. ESPIP is rated Satisfactory for the PDO rating and Moderately Satisfactory for IP. 10 PID MDTF Semi-annual Report FY21 (CMWU) to complete its fiduciary requirements. The terms of reference (ToR) for the twinning arrangement/expert support for the operation and maintenance (O&M) of the NGWMF have also been prepared. Since February 2020, the NGWMF treatment facilities have adequately and successfully serviced the four north Gaza municipalities, benefitting a total population of 368,000. Urban and local government. The MDP-3 continues to show progress toward achieving the PDO, despite implementation challenges posed by COVID-19. In particular, the MDP-3 has made significant progress on the emergency labor-intensive municipal services in Gaza, generating approximately 2,700 jobs out of the 5,000 end target. To bolster the municipal response to COVID-19, the MDP-3 was officially restructured with supplementary grant funding to support service delivery and create jobs that alleviate the social and economic hardship caused by the pandemic.2 For the LGSIP, the World Bank team carried out a virtual implementation support mission between November 9 and 12, 2020. The LGSIP has fully achieved the targets for three out of four main PDO indicators. For example, in FY20, 76.4 percent of village councils (VCs) received transparent and predictable Annual Capital Grants—exceeding the target for the corresponding PDO-level indicator (70%). As of November 9, 2020, the LGSIP benefited a total of 466,704 people—surpassing the end target of 350,000—by improving local service delivery in beneficiary villages. In an immediate response to COVID-19, the World Bank and the Ministry of Local Government (MoLG) agreed to allow eligible VCs to use up to 25 percent of their annual capital investment gains (ACIG) allocation for 2019 and 2020 to cover expenses that combat the spread of the pandemic. Solid waste management. Most GSWMP activities related to the construction of sanitary facilities and infrastructure (landfill, access road, and transfer stations) have been successfully completed. The original target, which was aimed at disposing of 80 percent of waste generated in the project area at the sanitary landfill, has been surpassed: currently 94 percent (about 677 tons/day) of the municipal waste is being disposed of at Sofa sanitary landfill. The landfill is currently serving an estimated beneficiary population of 921,400 in the three southern Gaza governorates (Khan Younis, Rafah, and Middle area). The target of reaching a 60 percent of cost recovery rate (relative to a baseline rate of 15%) has also been achieved. Moreover, with the approval of the GSWMP Additional Financing (AF) in September 2020, the GSWMP is now providing COVID-19 mitigation support to the efforts of the Joint Service Council (JSC) in this area. This support has enabled the JSC to (a) carry out additional secondary collection and create new routes at the height of the pandemic, (b) collect and dispose of solid waste from the quarantine centers (QCs), and (c) provide personal protective equipment (PPE) and safety trainings for staff (also from QCs). Land. Implementation of planned activities under the RERP has progressed since the virtual mission in July 2020, although travel restrictions and lockdowns brought on by COVID-19 continue to affect the implementation process and disbursement rates. Since March 2020, 12 contracts have been signed under the project for an amount of more than US$300,000, and the procurement process—including for the Project Management Information System (PMIS)/ Workflow Management System—is under way. Systematic land registration (SLR) activities 2 The MDP-3 has received additional grants from the World Bank (Trust Fund for Gaza and West Bank [TFGWB] and PID MDTF), Kreditanstalt für Wiederaufbau (KfW), and Agence Française de Développement (AFD) in the amount of US$25 million, EUR13 million, and EUR10.5 million, respectively. 11 PID MDTF Semi-annual Report FY21 have continued in areas which have not been badly affected by COVID-19, with about 140,000 parcels completed in 2019 and 2020, and 9,000 parcels completed in 2021, as reported by the Land and Water Settlement Commission (LWSC) during the mission. Energy. ESPIP has maintained an encouraging dynamic in the activities of all the components, despite the delays caused by restrictions and distancing imposed by COVID-19. To ensure ongoing implementation support, the task team is working more closely with the Project Management Unit (PMU) through biweekly and regular update meetings. A virtual implementation support mission was held during November 16–19, 2020. The Palestinian Energy and National Resources Authority (PENRA) continues to report repayment of nearly 100 percent of the bills issued for the electricity provided by the Palestinian Electricity Transmission Company Ltd. (PETL). Moreover, for the Gaza rooftop solar photovoltaic (PV) systems initiative, the procurement process for about 84 solar PV systems was concluded and, to date, 7 systems have been installed and are in operation. The ASPIRE MPA became effective on September 25, 2020, and implementation is progressing well in spite of challenges, including COVID-related ones. The PETL and Israel Electric Corporation (IEC) interim arrangement was signed in November 2020 to enable the energization of all four high-voltage (HV) substations across the West Bank, and the prioritization of 43 connection points by the PETL. Moreover, the Tarqumiya substation in Hebron has been successfully rehabilitated, and the process for identifying grid enhancement needs regarding rooftop and small-scale solar PV systems was established by PENRA. World Bank-executed technical assistance (TA). The World Bank-executed TA activities have been designed to leverage and complement all infrastructure investments in the WB&G in the World Bank program. Not only does the World Bank-executed TA window further strengthen the impacts of recipient-executed activities co-financed by the PID MDTF, but it also underpins the PA’s own policies and programs, the World Bank Development Policy Grants, and non-PID donors’ parallel financing. During FY21, five World Bank-executed TA activities remained ongoing: (a) Programmatic TA: Towards Water Security for the Palestinians (hereafter ‘Water Security TA’), (b) Palestinian Local Government Sector Reform Support (hereafter ‘LG Sector TA’), (c) Support to the Palestinian Land Sector Reform (hereafter ‘Land Sector TA’), (d) West Bank & Gaza Energy Sector Programmatic Technical Assistance (hereafter ‘Energy Sector TA’), and (e) Sustained Service Delivery through Improved O&M of Infrastructure in the WB&G (hereafter ‘Analytical Work on Sustainability of Infrastructure’). · Water Security TA. This Advisory Services and Analytics (ASA) has been instrumental in supporting the PWA and other water sector stakeholders in conducting critical dialogues and analysis necessary to improve the performance of sector institutions as well as timely support for emerging challenges, including COVID-19. The TA provided continued support for implementation of capacity-building activities under the AWP-I and WMS Project, including the creation of the Bulk Water Supply Unit (BWSU) and transformation of the CMWU into a Regional Water Unit (RWU). Moreover, it delivered numerous workshops with the PWA to develop a plan for citizen engagement (CE) in Hebron so as to allow the PA to secure an agreement with the local community. · LG Sector TA. The World Bank provided advice to the PA for the lending function’s activation at the Municipal Development and Lending Fund (MDLF). The TA produced and shared a report, which provides key considerations for the development of a lending program, with the MDLF and its Board of Directors. Additionally, a draft 12 PID MDTF Semi-annual Report FY21 concept note has been developed for a Local Government Performance Monitoring and Assessment System (LGPMAS), which could serve as the basis for a performance-based intergovernmental fiscal transfer system in the WB&G. · Land Sector TA. A draft report to analyze property taxation and formulate options to revise the tax structure was completed. Draft findings were prepared as well for the study on state land management and associated policies and legislation. Additionally, the ASA provides ongoing TA to the Palestinian Land Authority (PLA) and LWSC in the areas of IT, valuation, and gender, as well as detailed feedback and guidance on the development of the Gender Action Plan (GAP) under the RERP. · Energy Sector TA. The ASA continues to support ESPIP and its AF in preparing technical specifications for the bidding process to support the Revenue Protection Program (RPP). This support includes the development of the Management Information System (MIS) and the solar rooftop initiative for households, small and medium enterprises (SMEs), and health facilities. Furthermore, the TA continues to support the operation of the ASPIRE MPA, specifically in the conceptual design of the liquidity support account to enable private sector investments in solar independent power producers (IPPs). · Analytical Work on Sustainability of Infrastructure. This ASA has carried out data collection and preliminary analyses through a collaboration among the practice areas of Urban, Resilience, and Land (as lead) and Energy & Extractives, Governance, and Water. Even though COVID-19 has affected the implementation timing and approach of the ASA, the team continues to make a concerted effort to conduct in-person consultations with stakeholders to secure additional data and validation of the analyses’ results. The PID MDTF Results Matrix for eight active projects has been updated with current progress information against baseline and project targets. A summary of the results matrix is in Table 1, while the detailed Results Framework (RF) is included in Annex I. Table 2 summarizes key development outcomes and impact on final beneficiaries. 13 PID MDTF Semi-annual Report FY21 1.2. PID MDTF Financial Data Pledges. By December 31, 2020, a total of US$273.1 million had been pledged to the PID MDTF, which is currently supported by 11 development partners (DPs)—Australia, Croatia, Denmark, France, Finland, Italy, the Netherlands, Norway, Portugal, Sweden, and the United Kingdom.3 On February 25, 2021, Italy joined the PID MDTF with an amount of EUR 8 million, equivalent to US$9.6 million. See Table 4 for the distribution of pledges as of December 31, 2020, by DP. Discussions are ongoing with the European Union which has expressed interest, in principle, to join the PID MDTF. Commitments. As of December 31, 2020, funding in the amount of US$223.6 million has been committed: (a) US$215.6 million to recipient-executed activities implemented through the PA, (b) US$6.7 million to World Bank-executed activities for analytical work and TA, and (c) US$1.2 million to Program Management and Administration (PM&A). Ten grant agreements (GAs) are active under TF071898 (including PM&A) and eight GAs under TF072778.4 Disbursements have reached US$107.4 million, equivalent to 47.8 percent of the total commitments (see Table 5). In the reporting period, PM&A commitments have been increased from US$0.7 million to US$1.2 million—0.44 percent of the total pledged amount—with disbursements through December 31, 2020, at US$0.7 million. Allocations. In the urban sector, an allocation of US$10 million was made to the MDP-3 AF for COVID-19 Municipal Response.5 In addition, US$0.2 million has been allocated to the WB&G Energy Sector Programmatic TA to ensure continuity of analytical work and TA for the energy sector after the current TA’s closure in December 2021. With this allocation, total PID MDTF co-financing of World Bank-executed TA is forecast to reach US$6.8 million— 2.5 percent of the pledged amount in the PID MDTF. It should also be noted that the leverage factor of total pledge funds for the PID MDTF—the ratio of all investment financing to TA/analytics financing—is 76:1. An allocation of US$700,000 for project supervision—which was made in FY20 and has not yet been mobilized because of COVID travel restrictions—is still needed and relevant for FY21 and beyond, as COVID restrictions subside. Such allocation will allow the World Bank project team to address the current bottled-up demand for enhanced supervision and implementation support in the cross-cutting areas, including gender, CE, and climate and resilience. Total allocations have reached US$17.2 million, as shown in Table 6. Detailed funding allocations and the remaining needs for the proposed and ongoing activities co-financed by the PID MDTF are presented in Table 7. 3 Croatia is currently in the process of finalizing its withdrawal from the PID MDTF. 4 Under TF071898, one GA for the GSWMP in the amount of US$750,000 was dropped, and instead a new GA for the GSWMP AF was approved in August 2020 to include the dropped amount of US$750,000 committed for the closure of the two dumpsites and an additional US$500,000 for incremental and COVID-related costs. 5 Under TF072778, AF for COVID-19 Municipal Response in the amount of US$10 million was approved on February 15, 2021. 14 PID MDTF Semi-annual Report FY21 1.3. Cross-cutting Themes In line with the World Bank Group’s Assistance Strategy for the West Bank and Gaza FY22–25, the activities co-financed by the PID MDTF place a much-enhanced focus on cross-cutting priorities. Among the World Bank’s cross-cutting initiatives, most relevant to the PID MDTF portfolio are (a) addressing and narrowing gender gaps, (b) promoting citizen engagement, and (c) strengthening resilience to climate change. 1.3.1. Gender The PID MDTF seeks entry points in the interventions throughout the implementation of the operations to address and narrow gender gaps with full support from DPs. As noted in the previous reporting period between July 1, 2019 and June 30, 2020, the World Bank hired a regional gender consultant to support PID task teams and government counterparts in the implementation of project-level gender activities across the PID sectors. Between January and June 2020, consultations were held with project teams to identify needs and types of resources that could prove useful to the government in their efforts to carry out gender activities. The objective was to lay the foundation for specific needs of projects, and a local consultant was hired to provide support on the ground, as described in the previous reporting period. In the first six months of FY21, gender support provided to the active projects depended on where the projects stood with overall implementation and client demand. Given the delays with COVID-19, support was limited but meaningful where specific activities were being planned. This section focuses on the specific implementation support and resulting outcomes during July 1–December 31, 2020. Additionally, targeted support was provided to ensure PID projects undergoing preparation would be considered gender-tagged. Targeted gender support to the MDP-3 AF, provided in coordination with a local gender consultant on the ground, included the following: · Systematic review of subproject investment data and job figures across municipalities to analyze distribution of workers, by gender. · Continuous discussions with the MDLF in Ramallah and Gaza to follow up on metrics and nudge participation levels of women, depending on municipality status. · Virtual focus group consultation with the MDLF in Gaza and select partner municipalities on September 15, 2020, to understand challenges and local solutions adopted. Municipalities included Gaza, Khan Younes, Jabalia, Rafah, Al Nusairat, Bani Suhila, Al Zahra, Al Braij, and Al Naser. Outcomes/outputs of the activities: · Female job creation. Female jobs increased from 292 in May/June to 756 in October out of 5,298 available jobs, meeting the planned 750 project target. · Improving future approach in the sector based on lessons learned. Drawing from the experience of the MDP-3 AF, the AF for COVID-19 Response, which was prepared with the benefit of the gender support initiative, ultimately adopted a dual-front approach to deepen the support on gender equality: The first front focused on continued 15 PID MDTF Semi-annual Report FY21 encouragement of municipalities to recruit women across subprojects in the Labor Intensive Public Works (LIPW) component; this proved to be an effective way of meeting female targets in the MDP-3 AF. The second front introduced a mechanism to prioritize subprojects that can achieve specific benefits to women. The latter includes innovative actions, such as the earmarking of 10 percent of grant allocation to each municipality for subprojects that bring specific benefits to women (such as health and education buildings). The key interventions also incorporated women’s needs and priorities in the design of subprojects (for example, day care centers that are located in areas deemed accessible by women). Incentivizing municipalities to focus on subproject activities that respond to women’s needs—for example, rehabilitation of childcare facilities—helps close the widening vulnerabilities exacerbated by the pandemic. The project will also explore, for the first time in the World Bank’s Middle East and North Africa (MENA) regional program, the possibility of carrying out a women’s safety audit to ensure that subproject designs take concerns surrounding safety into consideration. · Analytical products and prospects for new data collection. Summary analysis of the distribution of female workers and plans for qualitative work to understand their experience in the LIPW component (carried out in March 2021). Targeted gender support to the RERP included the following activities: · Sector specific expertise. The PID MDTF gender team adjusted the strategy by incorporating sector-specific expertise for projects that required a more nuanced approach to closing gender gaps. As such, the RERP received on-demand cross-support from a Senior Social Development Specialist/Gender and Land Specialist in the Urban, Disaster Risk Management, Resilience and Land Global Practice in coordination with the PID MDTF regional gender consultant overseeing gender in the PID portfolio. · Guidance to teams, as needed, in their supervision of the procurement of firms applying for the development of GAP, including a quality assessment of the final detailed proposal by the winning firm. (In the first months of 2021, gender support was also provided for the inception report submitted by the firm hired to carry out the GAP, followed by consultations to provide guidance on the sampling methodology, thematic focus areas, and overall scope.) · Discussions under way to organize the second session in the Land Administration & Gender Capacity-Building Webinar Series. As noted in the previous report, the objective of the new webinar series is to increase the breadth and depth of understanding of gender issues and women’s rights to housing, land, and property within the project institutions. The first session took place in October 2020. Outcomes/outputs of the activities: · Participation of the staff from the PLA and LWSC in the first webinar. The webinar had a total of 15 participants. · A presentation on the gender status in the PLA and LWSC was given by the gender focal points of the PLA and LWSC. The presentation provided detailed information on the monitoring and evaluation tracking of registered landowners by gender as well as information on the distribution of female employees in their respective government agencies. Additionally, the presenters discussed outcomes of activities engaging female employees of the LWSC and PLA to raise their awareness on settlement works and 16 PID MDTF Semi-annual Report FY21 ensuring their involvement in training courses. · World Bank presentation on the Introduction to Women’s Land Rights, with examples from the international context and policy pathways, presented by the Senior Social Development Specialist/Gender and Land Specialist, Urban, Disaster Risk Management, Resilience and Land Global Practice. Targeted gender support to PID projects approved in late FY20/early FY21 included the WMS Project and GSWMP AF. As highlighted in the FY20 reporting period, both are gender tagged and each includes a fully articulated gender theory of change with targeted activities for women. In terms of gender implementation support, this is yet to be fully under way due to delays on the ground: · On the WMS Project, discussions with the PWA in coordination with the task team are planned for the second half of FY21. The objective of the discussions is to learn more about the outcomes of the planned needs assessment and professional development training of women in the government agency. Implementation support will likely focus on ensuring that the government has the support it needs to carry this out. · With regard to the GSWMP AF, discussions with the task team revealed that female representation in leadership, one of the key objectives of the project’s GAP, has in fact materialized though the specifics are yet to be discussed in a meeting with the MDLF. COVID-19 has created a number of limitations and delayed a number of activities. A meeting with the MDLF is expected in the second half of FY21 and will follow up on the leadership and awareness campaign dimensions of the gender aspects of the project. 1.3.2. Citizen Engagement In line with the 2014 Strategic Framework for Mainstreaming Citizen Engagement (CE) in World Bank Group Operations, the PID MDTF’s co-financed projects continue to support advancing the PA CE agenda across the portfolio to improve governance, institutional development, and close collaboration with citizens. Participatory CE and feedback mechanisms are already in place in the operations co-financed by the PID MDTF; they will continue to be incorporated into all future PID MDTF engagements in the WB&G. Water Sector The World Bank has prepared an overall framework to build CE both nationally and in selected locations in the WB&G. The team has helped form a Water Youth Committee, which has been actively engaged with the PWA and facilitated the first ‘Water Innovation Challenge’ in the water sector. Building on this work, the World Bank will continue to support building institutional capacity for CE and youth mainstreaming, at the national water sector policy level as well as in the World Bank’s water operations—including the AWP-I and WMS Project. The AWP-I and WMS Project will continue to foster accountable institutions that deliver citizen-centric quality services and utilize the innovations and capacities of youth to support building sustainable institutions for the water sector. 17 PID MDTF Semi-annual Report FY21 · The AWP-I continues to bolster CE—including among women and vulnerable groups— and government accountability. In particular, although there are substantial challenges in the water distribution network—including a culture of non-payment—the project seeks to promote a greater citizen-oriented approach through (a) pilots that will inform the World Bank Group’s water sector strategy and (b) a participatory approach to support infrastructure and institutional reform of bulk water supply in Gaza. · The WMS Project will use CE activities to improve the willingness to pay of customers through direct engagement with municipalities, the CMWU, PWA, and citizens, particularly through Component 3 (Capacity building for sustainability of wastewater services). CE results will be measured by the intermediate indicators ‘Number of beneficiary workshops conducted to raise awareness of the NGWMF operations’ and ‘Annual satisfaction surveys published and discussed in participatory manner’. Urban Sector · The GSWMP will continue to focus on CE and raising awareness about solid waste management—particularly among women—contributing to an enhanced social contract among citizens, local authorities, and service providers. A comprehensive CE and awareness raising program has been implemented to (a) enhance the public acceptance of the project and (b) raise awareness about the functions of different components and the operators’ commitments to comply with the environmental and social management plan. · The RERP’s CE activities will promote active stakeholder and citizen participation to help complete the SLR process. The project will support the development of public awareness campaigns to further inform people and communities in the project areas regarding the SLR process and options available to them to voice their concerns by means of a project-specific grievance redress mechanism (GRM). The project will also finance customer surveys to monitor customer satisfaction with registration services and with the public outreach of the process. Survey results will influence further capacity-building efforts at the PLA and LWSC, which will present key results indicator for CE with the results of such beneficiary surveys on their websites. Energy Sector · Within the duration of the ASPIRE MPA, PENRA will conduct a baseline beneficiary survey, followed by periodic tracer surveys and an end survey, to seek feedback on benefits and services provided by the program. When implementing the activities of the MPA phases, ongoing citizens’ feedback will be considered and PENRA will publish the results of the beneficiary surveys on its website, as a key results indicator for CE. A CE strategy will be developed to maintain continuous engagement and communication with beneficiaries and citizens, with the purpose of building trust and a strengthened social contract. In addition, when implementing the activities of the MPA phases, ongoing citizens’ feedback will be considered and PENRA will publish the results of such beneficiary surveys on its website, as a key results indicator for CE. 18 PID MDTF Semi-annual Report FY21 1.3.3. Climate and Resilience The PID MDTF’s co-financed projects support and facilitate priority measures for climate adaptation and mitigation, aligned with the World Bank Group’s new Climate Change Action Plan and the PA’s climate mitigation and adaptation efforts laid out in the PA’s National Adaptation Plan to Climate Change (2016). Support for the infrastructure sectors—via water resources management and resilient urban infrastructure as well as boosting renewables in the energy mix—will continue to be prioritized to generate more climate co-benefits and boost resilience. In particular, the PID MDTF will continue to take sustained action across its portfolio to increase the portion of its financing that qualifies as climate co-benefits. Among the new projects approved in FY20, climate co-benefits of the AWP-I and ASPIRE MPA are estimated at approximately 96 percent and 70 percent of the overall project costs, respectively. Climate co-benefits in the active portfolio are given in Table 8. · The AWP-I will address a vulnerable situation in which climate changes—including rising temperatures and drought—are already apparent and will likely accelerate during the years to come. In particular, the packages under Component 1 (Improved Supply of Bulk Water to the Southern and Middle Governorates of Gaza) will increase the resilience to extreme heat and drought through (a) the diversification of water sources, (b) investments in water and wastewater infrastructure, (c) better management and O&M of water and wastewater resources, and (d) improvements in the quality of water and water services. These measures will enhance the beneficiaries’ resilience to climate- change-exacerbated droughts and rising temperatures. The World Bank’s Operations Monitoring and Analysis team estimated that 96 percent of the AWP-I’s financing would be climate co-benefits. · The WMS Project is financing both adaptation and mitigation measures to cope with climate change effects. Adaptation measures include (a) replenishing the coastal aquifer with good quality water in infiltration ponds; (b) enabling reuse of recovered water in agriculture; and (c) increasing resilience to stormwater flood risks and sewage overflows. Furthermore, the project is taking mitigation measures to reduce greenhouse gas emissions by rehabilitating a biogas generation capacity of 800 kW. This measure will reduce the NGWMF’s dependency on external sources of power supply (mostly diesel fueled) by 38 percent. The total climate co-benefits for the WMS Project are estimated at 100 percent, in the amount of US$13 million. · The RERP is putting in place climate change adaption measures—including document digitization and future rollout of e-services—which will support afforestation, reforestation, and biosphere conservation efforts in the West Bank and the countries from where it imports paper. More specifically, the Palestinian Geodetic Reference Framework will help generate land-related geospatial data and information that is needed for incorporating climate change adaptation in land-use planning, as requested in the National Climate Change Adaptation Strategy.6 The RERP has climate co-benefits of nearly 70 percent of the overall RERP project cost. · The ASPIRE MPA will support the energy sector in moving toward renewable energy by enabling private sector engagement, interconnection of solar photovoltaic installations, and metering of solar photovoltaic and renewable energy installations. The ASPIRE MPA has about 70 percent in climate co-benefits in the first US$63 million phase. 6 UNDP (United Nations Development Programme). 2010. Climate Change Adaptation Strategy and Programme of Action for the PA. 19 PID MDTF Semi-annual Report FY21 Table 1: Summary of Results Matrix of Active Projects7 Unit of Results Indicators Baseline Current End Target Measure Improve the quality of bulk water supplied to the Municipalities served in the project areas and support the continuous operation of the NGWMF. Supporting the continuation of wastewater treatment services and strengthening the capacity of wastewater management services in North Gaza Monthly volume of wastewater arriving at the Terminal Pumping Percentage 70 90 90 Station (TPS) that is treated (2020–2024) Average O&M costs of the Amount 277,000 152,600 136,000 NGWMF per month (2020–2024) (US$) Enhance the institutional capacity of local government units and strengthen the local government financing system for more accountable and sustainable service delivery. Improving local service delivery People provided with improved living conditions and access to Number 0 936,129 850,000 improved services (50% of which female beneficiaries) (2015–2022) People benefitting from improved sanitation disposal services in Number 0 921,400 948,000 Gaza (Khan Younis, Rafah, and Middle Gaza) (2014–2022) Enhancing performance of local government sector institutions Municipalities with operational and enterprise surplus and no Number 40 61 70 increase in arrears (2018–2022) VCs receiving transparent and predictable Annual Capital Grants Percentage 0 76.4 70 (2015–2020) Strengthening good governance in the local government sector VCs submitting their annual budget to the MoLG electronically Percentage 10 76.4 60 on time and have disclosed budgets publicly (2015–2020) 7 The more detailed RF—with an update on the current values of key performance indicators—is included in Annex I. 20 PID MDTF Semi-annual Report FY21 Unit of Results Indicators Baseline Current End Target Measure Municipalities with functional Number 22 113 100 complaint system (2017–2022) Enhance tenure security and improve real estate registration services. Improve real estate registration services Time to register property rights under the SLR process reduced Months 7.5 7.5 4.5 (2019–2023) Satisfaction of beneficiaries with respect to real estate registration Percentage 0 0 70 services improved (2019–2023) Enhance institutional capacity of the energy sector, improve efficiency of the distribution system in targeted areas, and pilot a new business model for solar energy service delivery in Gaza. Enhancing performance of electricity sector institutions PETL collection rate (2017–2023) Percentage 0 100 90 Electricity losses per year in West Bank Distribution Companies Percentage 23 21 19 (DISCOs) (2017–2023) Management information systems Number 0 0 6 in operation (2017–2023) Substation operationalized Yes/No No Yes Yes (2019–2024) Strengthening good governance in the energy sector Rate of response to grievances received related to the project Percentage 0 100 100 (2017–2023) 21 PID MDTF Semi-annual Report FY21 Table 2: Ongoing Project Highlights Project Key Developments Beneficiaries Progress • Component 1 is under way, with further development subject to the hiring of project PDO:  implementation consultant (PIC) in charge of tendering key packages. • 16 municipalities • Component 2 is also under way, with in the middle the start-up of analytical work on the and southern establishment of the BWSU. governorates AWP-I • ToRs completed for (a) update of national of Gaza with water sector policy/strategy and (b) estimated development of Master Plan for Bulk Water population of IP:  Supply System and Priority Investments. 870,000 people • Sector reform agenda is advancing as a • PWA result of the government’s November 2020 decision to establish the National Water Company. PDO:  • PWA has made progress in the staffing of the PMU but is experiencing delays in the hiring of key specialists. • PWA has advanced discussions with stakeholders on (a) institutional arrangements for O&M of the NGWMF, (b) establishment of the Regional Water Utility, and (c) approaches for service agreements between the four municipalities and the • 368,000 people CMWU. benefited • An assessment of emergency requirements by improved to ensure the operation of the NGWMF in sanitation services WMS Project emergencies was completed by PWA. in North Gaza. IP:  • Tender documents are under preparation • PWA for (a) the rehabilitation of the NGWMF, (b) • CMWU the construction of the equalization tank and emergency pond, (c) the Supervisory Control and Data Acquisition (SCADA) system, and (d) repair of the biogas balloon for electricity co-generation. • PWA and the World Bank have agreed on the fiduciary process for the CMWU to take over technical oversight for the operation of the NGWMF. • 94 percent of infrastructure subprojects (55% of which are road micro-projects) have • MoLG, MDLF, and MDP-3 been completed, and the majority of the municipalities. PDO:  capacity-building packages delivered under the first cycle of the project. 22 PID MDTF Semi-annual Report FY21 Project Key Developments Beneficiaries Progress • Significant progress was made by the • 1,970,000 people emergency labor-intensive municipal living in urban services initiative in Gaza, with the project areas have been already generating 2,700 jobs (out of the provided with 5,000 end target). access to improved services, including • The MDLF updated and publicly disclosed in housing, tenure, IP:  December 2020 three important framework neighborhoods, mechanisms for citizen participation—the public spaces, Environmental and Social Management parks, resilience, Framework (ESMF), the Land Acquisition and urban and Livelihood Policy Framework (LALAPF), environmental and the GRM manual. conditions. • Over 600 tons/day of waste—constituting PDO:  94 percent of waste generated in 3 governorates—is being disposed of at the sanitary landfill constructed under the project. • Project closed 10 dumpsites in targeted areas, mitigating land contamination. • Through COVID-19 mitigation support, JSCs have been able to create additional secondary collection/routes at the height of the pandemic and serve the collection • 3 Gaza and disposal of solid waste from quarantine governorates centers. • Joint Service • Standard operating procedures (SOPs) were Council for Khan introduced for the Sofa landfill, the transfer Younis, Rafah, and station at Rafah, and the medical waste Middle Area GSWMP management sorting facility at the Khan (JSC-KRM) Younis transfer station. • The Sofa sanitary IP:  • The medical waste treatment facility at landfill operation Khan Younis recently renewed operation has been benefiting with a new microwave-based system, 921,400 people in enhancing treatment capacity and the project area. substantially reducing operational costs. • The project has provided alternative livelihood support to 16 waste-pickers through job retraining and placement. • Despite initial setbacks in fee collection due to the COVID-19 pandemic, the annual bill collection of the JSCs ended up with a modest rebound and a fee collection rate from participating municipalities that reached the targeted 60 percent rate. 23 PID MDTF Semi-annual Report FY21 Project Key Developments Beneficiaries Progress • The program is on track to achieve its PDO, PDO:  having fully achieved the targets for three out of four main PDO indicators. • VCs and JSCs were awarded US$13.4 million in financing from LGSIP for eligible • Beneficiaries investment subprojects covering four of improved investment grant cycles. All subprojects service delivery in for the first and second investment cycles beneficiary villages have been completed. reached 466,704 LGSIP • Responding to a special authorization people—surpassing by the program for 2019/2020 to cover the end target of COVID-related expenses, 10 VCs submitted 350,000. IP:  proposals—worth around US$60,000— • MoLG to cover solid waste collection costs • VCs considered critical for the hygiene of the villages. • A total of 27 joint projects were covered under the program in FY20—significantly surpassing the original end target of 18 projects for the fiscal year. • Initial drafts of the Social Impact PDO:  Assessment (SIA) and the Social Management Plan (SMP) have been produced by a consulting firm contracted by the LWSC. • An inter-ministerial Steering Committee for the project has been formed, and the Committee’s ToR has been finalized. • The ToR has been completed for (a) the development of valuation standards and • LWSC RERP methodologies for mass and single real • PLA IP:  property valuation, (b) the development of regulations for the valuation profession, and (c) the collection of data for valuation pilot project and analysis/modeling. • The independent verification agency to review submitted parcels for verification and reimbursement was hired. • The LWSC began procurement for the PMIS/Workflow Management System. • Support provided for O&M of PET— including IT, testing equipment, and safety ESPIP gear for operation of substations—as well PDO:  as staffing and operational budget for PENRA’s PMU. 24 PID MDTF Semi-annual Report FY21 Project Key Developments Beneficiaries Progress • PENRA continues to report repayment of nearly 100 percent of bills issued for electricity provided by PETL to the two DISCOs in 2017–19. • Bidding processes for the supply of the equipment for upgrading the connection points and the supply of spare parts for HV substations are under way. • PENRA • Reviews by six DISCOs of their customer • PETL databases to identify high-value customers • Palestinian for the RPP were completed. Procurement Electricity IP:  for the RPP covering 16,000 customers Regulatory Council across the WB&G has been concluded. • DISCOs • Procurement for the MIS in the West Bank is under way and the one for the Gaza Strip is expected to be launched during the second semester of 2021. • Procurement was concluded on 84 solar PV systems—of size 2.5 kWp, 3 kWp, and 5 kWp—for the Gaza rooftop solar PV initiative. To date, 7 systems have been installed and are in operation. • PETL-IEC interim arrangement was signed in November 2020, enabling the energization of four HV substations in the West Bank and prioritization of 43 connection points by PETL. • Procurement packages for (a) rehabilitation and transfer of IEC interconnection points in the WB&G, (b) construction of the Jericho-Ramallah transmission line, and (c) installation of medium-voltage (MV) lines • PENRA from Qusin-Sarra Junction to Qusin-Bet • PETL ASPIRE MPA Iba Junction are in preparation and are PDO:  • Hebron and other expected to be launched by mid-2021. municipalities • The rehabilitation of the Tarqumiya substation in Hebron is completed. Procurement packages for the RPP continuation activities will begin in July 2021. • The process for identifying grid enhancement needs regarding rooftop and small-scale solar PV systems was established by PENRA. 25 PID MDTF Semi-annual Report FY21 Project Key Developments Beneficiaries Progress • Five priority hospitals have been selected and environmental and social assessment started with procurement expected to be launched during the second semester of 2021. An agreement still needs to be reached for the site location of Palestinian medical complex. IP:  • A ‘Design Committee’ was established by PENRA, PETL, and Ministry of Finance (MoF) for the Liquidity Support Account and Payment (LSAPS) in November 2020 and is now fully operational. • The TA is supporting the PWA in an ongoing effort to develop data—in collaboration with the Israeli Water Authority—necessary for effective transboundary management of bulk water and wastewater. • PWA • The ASA delivered a number of workshops Water • CMWU with the PWA aimed at developing a CE n.a.a Security TA • Hebron and other plan for Hebron. municipalities • In support of the capacity-building activities of the AWP and WMS Project, the ASA provided technical advice regarding the creation of the BWSU and the transformation of the CMWU into an RWU. • The ASA prepared a technical report and provided follow-up advice to the MoLG and MDLF on how to begin to activate a lending program in the MDLF for creditworthy municipalities. The MoLG has since indicated the desire to begin to carry out • PA lending on a pilot basis. LG Sector TA • MoLG and MDLF n.a. • Agreement was reached with the MoLG to collaborate on establishing a sustainable • LGUs performance monitoring system of local government units (LGUs) that could ultimately become the basis of a performance-based intergovernmental fiscal transfer system in the WB&G. 26 PID MDTF Semi-annual Report FY21 Project Key Developments Beneficiaries Progress • Draft report completed for analysis of property taxation and preparation of options for revising the tax structure. • Draft findings completed for a study on • PA state land management and associated Land Sector • LWSC policies and legislation. n.a. TA • PLA • Ongoing TA provided to the PLA and LWSC in the areas of IT, valuation, and gender. • Ongoing detailed feedback and guidance provided on the development of the GAP under the RERP. • The TA continues to support ESPIP and its AF in unforeseen technical assessments and the preparation of technical specifications for the bidding • PENRA process to support the RPP— including the • PETL Energy Sector development of MIS and the solar rooftop • DISCOs initiative. n.a. TA • Gaza Electricity • The TA supported the development of Distribution the new operation ASPIRE MPA in the Company (GEDCO) conceptual design of the liquidity support account to enable private sector investment in Solar IPPs. • Implementation of the ASA is advancing, • PA Analytical particularly in carrying out data collection • MoLG, MDLF, and Work on and preliminary analyses. LGUs Sustainability • Primary data collection, especially n.a. of • MoF consultations and field assessments at Infrastructure the local government level, is particularly • Ministry of Public challenging. Works PDO: Progress toward Achievement of PDO; IP: Overall Implementation Progress Key  Satisfactory or Highly Satisfactory;  Moderately Satisfactory;  Moderately Unsatisfactory/Unsatisfactory Note: a. Progress of the PDO and IP of World Bank-executed ASAs are not formally rated. 27 PID MDTF Semi-annual Report FY21 Table 3: PID MDTF Parallel Parent Trust Funds (TFs) Approval June 6, 2012 TF071898 Activation July 20, 2012 End of disbursement December 31, 2022 Approval December 9, 2016 TF072778 Activation December 15, 2016 End of disbursement December 31, 2027 Table 4: TF Financial Contributions as of December 31, 2020 (Pledged and Received) December 2020 Pledged to Date - Totals (in millions) Pledged Paid-in to Date Receivables Contributors Currency Pledge Pledge Pledge USD USD USD Currency Currency Currency Croatia USD 0.2 0.2 0.2 0.2 0.0 0.0 Sweden SEK 628.0 76.7 588.0 71.9 40.0 4.8 Denmark DKK 360.0 60.0 360.0 60.0 0.0 0.0 Finland EUR 11.0 13.0 11.0 13.0 0.0 0.0 France EUR 3.5 4.4 3.5 4.4 0.0 0.0 Netherlands USD 14.1 14.1 10.2 10.2 3.9 3.9 Norway NOK 400.0 47.4 291.2 34.8 108.8 12.7 Portugal EUR 0.2 0.2 0.2 0.2 0.0 0.0 United Kingdom GBP 38.0 50.3 30.3 39.7 7.7 10.6 Australia AUD 10.0 6.8 10.0 6.8 0.0 0.0 USD Totals — 273.1 — 241.2 — 31.9 Note: For reporting, total financials will be presented jointly. However, disaggregated information by TF number and Unaudited Trust Fund Financial Reports can be found, respectively, in Annexes 2 and 3 of this report. 28 PID MDTF Semi-annual Report FY21 Table 5: PID MDTF Child TFs as of December 31, 2020 Grant Project Grant Grant Amount Grant Legal Project Disbursements Grant Name Execution Approval Effectiveness Closing (after any Number Status ID (US$) Date Date Date canceled funds) (US$) TF071898 SECOND MUNICIPAL Recipient Legally TF016476 DEVELOPMENT P127163 26-Mar-14 17-Apr-14 28-Feb-18 25,799,060 25,799,060 Executed closed PROJECT SOUTHERN WEST BANK SOLID WASTE MANAGEMENT Recipient Legally TF018376 PROJECT P154102 11-May-15 15-Jun-15 30-Jun-16 1,500,000 1,500,000 Executed closed ADDITIONAL FINANCING GAZA SOLID WASTE Recipient TF018377 MANAGEMENT Dropped P121648 24-Oct-14 9-Jul-14 30-Nov-20 750,000 0 Executed PROJECT GZ EMERGENCY Recipient Legally TF018378 RESPONSE AF MDP- P127163 7-Dec-14 29-Jan-15 28-Feb-18 11,999,001 11,999,001 Executed closed 2 SECOND MUNICIPAL DEVELOPMENT Recipient Legally TF0A1061 PROJECT - P127163 14-Apr-16 26-Oct-16 28-Feb-18 6,899,293 6,899,293 Executed closed ADDITIONAL FINANCING LOCAL GOVERNANCE AND SERVICES Recipient TF0A4511 Active P148896 14-Mar-17 14-Mar-17 31-Dec-20 13,000,000 11,499,999 IMPROVEMENT Executed PROGRAM 29 PID MDTF Semi-annual Report FY21 Grant Project Grant Grant Amount Grant Legal Project Disbursements Grant Name Execution Approval Effectiveness Closing (after any Number Status ID (US$) Date Date Date canceled funds) (US$) MDP-3 ADDITIONAL FINANCING FOR Recipient TF0B0101 EMERGENCY LABOR- Active P159258 2-May-19 17-Jun-19 28-Feb-22 5,000,000 2,863,038 Executed INTENSIVE GAZA MUNICIPAL SERVICES ADDITIONAL FINANCE: GAZA Recipient TF0B3584 SOLID WASTE Active P121648 28-Aug-20 05-Nov-20 30-Jun-22 1,250,000 0 Executed MANAGEMENT RBF PROJECT NGEST SOLAR Bank Legally TF017221 POWER FEASIBILITY P149853 14-Apr-14 19-Aug-14 31-Mar-16 149,832 149,832 Executed closed STUDY LOCAL GOVERNMENT Bank TF0A3599 Active P161279 3-Oct-16 12-Oct-16 31-Dec-20 1,300,000 914,367 SECTOR REFORM ASA Executed WEST BANK & GAZA ENERGY SECTOR Bank TF0A4202 PROGRAMMATIC Active P162545 1-Jan-17 3-May-17 30-Jun-21 2,000,000 1,553,895 Executed TECHNICAL ASSISTANCE PROJECT Recipient Legally TF0A2807 PREPARATION P148600 9-Jun-16 1-Aug-16 31-Dec-18 0 0 Executed closed GRANT FOR ESPIP WEST BANK AND GAZA ELECTRICITY SECTOR Recipient TF0A5078 Active P148600 15-Aug-17 16-Jan-18 30-Jun-22 7,000,000 3,566,393 PERFORMANCE Executed IMPROVEMENT RPOJECT 30 PID MDTF Semi-annual Report FY21 Grant Project Grant Grant Amount Grant Legal Project Disbursements Grant Name Execution Approval Effectiveness Closing (after any Number Status ID (US$) Date Date Date canceled funds) (US$) Recipient TF0A9136 ESPIP AF Active P148600 15-Jan-19 11-Jun-19 30-Jun-22 7,000,000 606,148 Executed PID MDTF Bank TF014530 PROGRAM AND TF Active P130100 18-Jun-12 2-Apr-13 31-Dec-22 700,000 676,477 Executed MANAGEMENT FUND PID MDTF PROGRAM Bank TF0B3943 MANAGEMENT AND Active P130100 31-Aug-20 11-Sep-20 31-Aug-22 500,000 24,507 Executed ADMINISTRATION GAZA SUSTAINABLE WATER SUPPLY Recipient Legally TF017186 P150494 12-Oct-15 5-Jan-16 31-May-18 2,398,161 2,398,161 PROGRAM: Executed closed ADDITIONAL WORKS WATER SECTOR Recipient Legally TF015756 CAPACITY BUILDING P117443 5-Feb-14 2-Jun-15 31-Dec-17 2,852,452 2,852,452 Executed closed CO-FINANCING FUND THIRD ADDITIONAL FINANCING FOR THE NORTH GAZA Recipient Legally TF016501 P074595 8-May-14 18-Nov-14 30-Jun-18 5,000,000 5,000,000 EMERGENCY Executed closed SEWAGE TREATMENT PROJECT GAZA EMERGENCY WATER SUPPLY AND SEWAGE SYSTEMS Recipient Legally TF018268 IMPROVEMENT P101289 3-Dec-14 26-Jan-15 31-Dec-17 8,239,352 8,239,352 Executed closed PROJECT ADDITIONAL FINANCING 31 PID MDTF Semi-annual Report FY21 Grant Project Grant Grant Amount Grant Legal Project Disbursements Grant Name Execution Approval Effectiveness Closing (after any Number Status ID (US$) Date Date Date canceled funds) (US$) WATER SECTOR Recipient Legally TF019350 CAPACITY BUILDING P153889 24-Jun-15 08-Jul-15 30-Oct-15 0 0 Executed closed FUND WATER SECURITY Bank TF0A7564 TECHNICAL Active P167309 1-May-18 2-May-18 31-Jan-21 900,000 390,126 Executed ASSISTANCE Subtotal   103,487,151 86,932,102 TF072778 SUPPORT TO THE Bank TF0A4947 PALESTINIAN LAND Active P163872 24-Apr-17 22-Jun-17 30-Nov-23 2,000,000 891,702 Executed SECTOR REFORM MUNICIPAL DEVELOPMENT Recipient TF0A6154 Active P159258 21-Jul-17 14-Dec-17 28-Feb-22 20,000,000 15,625,829 PROJECT III - PID Executed MDTF SUPPORT TO THE Bank Legally TF0B0195 PALESTINIAN LAND P163872 24-Apr-17 22-Jun-17 31-May-21 0 0 Executed closed SECTOR II WEST BANK AND GAZA REAL ESTATE Recipient TF0B0359 Active P168576 22-Jul-19 05-Mar-20 30-Nov-23 3,000,000 100,000 REGISTRATION Executed PROJECT (RERP) WATER SECURITY DEVELOPMENT - Recipient TF0B2334 GAZA CENTRAL Active P168739 10-Feb-20 26-Apr-20 31-Dec-24 42,000,000 2,000,000 Executed DESALINATION PROGRAM 32 PID MDTF Semi-annual Report FY21 Grant Project Grant Grant Amount Grant Legal Project Disbursements Grant Name Execution Approval Effectiveness Closing (after any Number Status ID (US$) Date Date Date canceled funds) (US$) GAZA WASTEWATER MANAGEMENT Recipient TF0B2694 Active P172578 10-Jun-20 22-Sep-20 30-Jun-24 3,700,000 300,000 SUSTAINABILITY Executed PROJECT SUSTAINED SERVICE DELIVERY THROUGH IMPROVED O&M OF Bank TF0B2962 Active P173131 15-Feb-20 15-Apr-20 30-Sep-21 400,000 66,202 INFRASTRUCTURE Executed IN WEST BANK AND GAZA PID MDTF ASPIRE Recipient TF0B3015 MPA PHASE 1 Active P170928 27-Apr-20 25-Sep-20 31-Dec-24 49,000,000 1,500,000 Executed P170928 WB&G SUPPORT TO THE Bank Legally TF0B4273 PALESTINIAN LAND P163872 24-Apr-17 19-Oct-20 30-Nov-23 500,000 0 Executed closed SECTOR III Subtotal 120,100,000 20,483,734 Totals combining TF071898 and TF072778  223,587,151 107,415,836 33 PID MDTF Semi-annual Report FY21 Table 6: PID MDTF Commitments and Allocations as of December 31, 2020 Commitments and Allocations (US$) Pledged 273,095,377 PID MDTF Commitments Commitments to Closed Activities Water sector 18,489,965 Urban sector 46,197,353 Energy sector 0 World Bank-executed TA 149,832 Subtotal closed 64,837,151 Commitments to Active Activities Water sector 45,700,000 Urban sector 42,250,000 Energy sector 63,000,000 World Bank-executed TA 6,600,000 PM&A (up to 3%) 1,200,000 Subtotal active 158,750,000 Total Committed 223,587,151 PID MDTF Allocations Unqualified Donor Contributions with Preferencing 13,640,450 Water Sector 13,640,450 AF for COVID-19 Municipal Response under MDP-3 10,000,000 Urban Sector  10,000,000 Water Security TA 650,000 Energy Sector TA 200,000 World Bank-executed TA  850,000 Project supervision 700,000 PM&A (up to 3%) 6,292,861 Additional Costs 6,992,861 34 PID MDTF Semi-annual Report FY21 Total Allocated 31,483,311 TF Fee (5–2%) [Committed] TF Fee 7,354,877 [Allocated] TF Fee 400,000 Total TF Fee 7,754,877 Total Unallocated  10,270,039a Note: a. Under World Bank Trust Fund rules, qualified pledges are not available for commitment to new Recipient-executed operations or Bank-executed ASA. A pledge is considered qualified when the Administration Agreement or Supplemental Agreement contains language that conditions actual payment of pledged amounts to parliamentary approval, budgetary appropriation, or the like. Many donors include such qualifications in their pledges and for this reason – although qualified pledges are included in receivables – they cannot be committed to any activity until either they are fully paid in or the relevant parliamentary approval or budgetary appropriation is confirmed. Hence, the US$10.27 million figure for unallocated pledges in Table 6 needs to be taken with a grain of salt, as these funds are not actually available for new commitments. Table 7: Allocations and Funding Needs (US$, millions) Allocated Funding Remaining Funding Needs Proposed Activity TFGWB PID Other (Financing Gap) AWP (Project cost for south and 15.00 42.00 60.00 middle governorates = 117) WMS Project 10.00 3.70 0.00 10.5 - Wastewater Treatment Future O&M of the Hebron Plant (WWTP) operation, Wastewater Treatment 0.00 0.00 0.00 supervision, and support over 5 Plant years along with required TA 80 - PWA requested support for (a) service providers to move up the performance ladder, (b) separation of water service provision from other municipal Water Security services, (c) clustering of service Development Program 15.00 0.00 0.00 providers to achieve economies MPA - building on AWP of scale, (d) establishment of the National Water Company, and (e) infrastructure development. All these activities will be part of an MPA that builds on the AWP. 35 PID MDTF Semi-annual Report FY21 Allocated Funding Remaining Funding Needs Proposed Activity TFGWB PID Other (Financing Gap) Water allocation and 40.00 45.70 60.00 90.50 financing gap RERP 5.00 3.00 4.60 0.00 Land ASA 0.00 2.00 0.15 3.0 - Supplemental financing for the construction of a transfer station in the Middle Area governorate that was eliminated at the Midterm Review (MTR) due to GSWMP - AF 10.00 1.25 2.00 budget limitations; additional O&M funding for the JSC’s secondary collection and municipalities’ service quality and financial sustainability improvements. 10 - Envisioned as the initial phase of the World Bank’s support to the LG Sector, LGSP will sustain the support to the National Village Support Program (with funding from the ongoing LGSIP), thus expanding reforms in the intergovernmental fiscal transfer system and finance community-level service projects Local Government Support by VCs and JSCs. The proposed Program (LGSP), MPA 0.00 2.00 0.00 LGSP is a follow-up operation Phase 1 to LGSIP, and the allocated funding has been rolled into this program. The programmatic ASA on Local Government Sector Reform (P161279) is exploring reform of different aspects of the intergovernmental fiscal transfers and will thus feed into the design of this proposed operation. Implementation of the resulting operation is expected in FY23. LGSIP - Phase I 5.00 13.00 44.00a 5 - Revolving fund in the MDLF for a pilot lending program for select municipalities. The ongoing MDP-3 MDP-3 26.00 25.00 ~100.00b is currently supporting analytical work on the legal, institutional, and operational framework for lending to LGUs. 36 PID MDTF Semi-annual Report FY21 Allocated Funding Remaining Funding Needs Proposed Activity TFGWB PID Other (Financing Gap) Sustainability of 0.00 0.40 0.00 Infrastructure - O&M ASA Urban allocation and 46.00 46.65 ~150.75 18.00 financing gap 15 - Support for solar PV rooftop and Energy Efficiency in the WB&G, including storage technology and battery waste management 45 - In the West Bank, for priority HV/MV/low-voltage (LV) infrastructure, including substations; improvements to distribution system; and scale-up of revenue protection program ASPIRE MPA 14.00 49.00 0.00 35 - In Gaza, for implementation of HV/MV/LV priority infrastructure, including substations; improvements to distribution system; and scale-up of revenue protection program 12 - Support for sector improvements, including tariff and regulatory reforms and operational measures 30 - PETL liquidity support facility for IPPs Energy allocation and 14.00 49.00 0.00 137.00c financing gap Total funding needs 245.50 Note: a. Parallel financing. b. Parallel financing in the amount of EUR 84.5 million. c. ASPIRE MPA—which outlines a US$200 million funding envelope—will be implemented over eight years. The US$137 million identified in financing needs is for phases II–IV of MPA (2020–2028), based on activities identified in the program framework, while US$49 million is for Phase I. The funding already allocated from the TFGWB and PID MDTF is only for Phase I. Specific funding needs for each future phase will be defined in due course and presented in future PID MDTF meetings. 37 PID MDTF Semi-annual Report FY21 Table 8: Climate Co-Benefits in PID MDTF Co-financed Active Project Portfolio (US$, millions)8 Total PID MDTF Operational Total PID MDTF Total as Sector Climate Climate Projects Commitment Commitment Percentage Co-Benefits Co-Benefits FY20 Approved AWP-I Water 57.0 54.7 42.0 40.3 96.0 (P168739) WMS Project Water 13.0 13.0 3.7 3.7 100.0 (P172578) RERP Urban 12.6 8.7 3.0 2.1 68.6 (P168576) ASPIRE Energy 63.0 43.3 49.0 33.7 68.7 (P170928) FY19 Approved ESPIP AF Energy 12.0 3.6 7.0 2.1 29.8 (P167914) FY18 Approved ESPIP Energy 11.0 7.3 7.0 4.7 66.7 (P148600) Total 168.6 130.6 111.7 86.6 77.5 8 The World Bank’s Operations Monitoring and Analysis team assesses climate co-benefits systematically for all new projects approved by the Board. 38 PID MDTF Semi-annual Report FY21 2. Sector Reviews The following section highlights key achievements and main issues faced by the activities co-financed by the PID MDTF, as well as upcoming priorities for each of the three sectors. 2.1. Water Sector 2.1.1. Sector Context The WB&G is a water-scarce lower-middle-income territory with a relatively water-dependent economy—made worse by its vulnerable geopolitical setting. Ensuring water security—adequate water resources that are well managed and water services that are sustainable, efficient, and equitable—is a priority and a central tenet of the 2014 Water Law. However, water security is under threat, particularly in Gaza. There is inadequate and unreliable access to potable water in Gaza and the West Bank. In Gaza, residents’ access to improved drinking water has plummeted from a near total piped coverage two decades ago to 1 percent today, leaving most citizens reliant on more expensive and unregulated water tankers for domestic use. On the institutional side, the accountability of service providers is unresolved among the PWA, the MoLG, and the Water Sector Regulatory Council (WSRC). The sector, moreover, is heavily donor dependent, with donors financing 76 percent of capital investment but having difficulty in leveraging this support to bring about much-needed sector reform. This resultsin a gradual decline in efficiency and sustainability of services. Lessons learned from the World Bank’s recently closed projects, coupled with analysis extracted from the 2018 Water Supply, Sanitation, and Hygiene (WASH) Poverty Diagnostic, provided the impetus for a dialogue reset and a refocus on the operationalization of the Water Law and the Water Sector Strategic Development Plan (SDP) 2017−2022, and the 2017 road maps developed by the PWA. The engagement strategy of the World Bank in the water sector is delivered in four parallel tracks, each targeted to a different set of counterpart actors. The first focuses on decision-makers and teams responsible for project preparation and implementation, while the second targets leaders and experts who address technical water issues. The third group is focused on actors responsible for the most sensitive policy issues, while the fourth and final group focuses on coordination with the donor community for improved project delivery and sector performance. This four-track approach allows for a practical consideration to timing for decision-making and consultation processes across different constituencies while considering at the same time the comparative advantages of donors based on experience, track record, and potential synergies. The water sector interventions co-financed by the PID MDTF play a key role in addressing the challenges in the sector. The AWP supports bulk infrastructure investments to address urgent water quantity and quality needs in Gaza by blending fresh water from Mekorot (Israeli bulk supplier), desalinated water from short-term low volume (STLV) desalination plants, and brackish groundwater to achieve the World Health Organization (WHO) standard for potable water. This blended water will subsequently be supplied to residents in the service area through the water distribution network. The WMS Project sustains the Northern Gaza wastewater treatment scheme, to mitigate adverse environmental and public health impacts on surrounding communities. It also 39 PID MDTF Semi-annual Report FY21 improves managerial capacity and financial resilience of wastewater treatment services across the Gaza strip, helping them ultimately achieve sustained service delivery. An active programmatic TA complements these operations and supports the PWA and other water sector stakeholders in conducting critical dialogue and analyses necessary to improve the performance of sector institutions. Table 9 provides an overview of the strategic technical and policy studies that are supported by the World Bank, and Table 10 summarizes key water project ratings for the current reporting period. Table 9: Strategic Technical and Policy Studies Project Responsible Task Name Status Territory DPs ID Agency Water Policy Update P168739 Tendering WB&G PWA AFD, European Commission, Netherlands, PID, and multiple donors Establish Bulk Water P168739 ToR review Gaza PWA, National Water European Supply Gaza Company, Prime Commission, Minister’s Office KfW, (PMO) Netherlands National Service P168739 Conception WB&G PWA, WSRC, Netherlands Providers Program municipalities, service providers Water Master Plan P168739 Tendering West PWA Multiple donors in WB Bank Transboundary P167309 Assessment West PWA Netherlands, wastewater under way Bank Office of (and Israeli Water Quartet, UNDP Authority) Road Map for CMWU P168739 Tendering Gaza PWA, CMWU AFD to RWU CMWU revenue P168739 Not started Gaza CMWU generation yet Transfer NGEST P172578 Ongoing Gaza PWA, CMWU KfW PWA to CMWU Twinning NGEST P172578 ToR Gaza PWA, CMWU AFD CMWU completed Administrative P168739 ToR review PWA, National KfW transfer bulk water Water Company, assets municipalities Financial model P167309 Conception WB&G PWA Citizen engagement P167309 Ongoing WB&G PWA AFD Disaster risk P167309 Conception Gaza PWA management 40 PID MDTF Semi-annual Report FY21 Table 10: Water Sector - Key Project Ratings Previous Rating Current Rating AWP Progress toward Achievement of PDO Satisfactory Satisfactory Overall Implementation Progress Satisfactory Satisfactory Financial Management Satisfactory Satisfactory Project Management Satisfactory Satisfactory Procurement Satisfactory Moderately Satisfactorya Monitoring and Evaluation Satisfactory Satisfactory WMS Project Progress toward Achievement of PDO Satisfactory Satisfactory Overall Implementation Progress Satisfactory Satisfactory Financial Management Satisfactory Satisfactoryb Project Management Satisfactory Satisfactoryb Procurement Satisfactory Satisfactory Monitoring and Evaluation Satisfactory Satisfactory Note: a. Procurement performance is lowered to Moderately Satisfactory due to the delays in the hiring of the PIC, which also delays other packages. Despite the procurement delays, the efforts that the PWA is exerting to put interim arrangements in place while pushing for longer-term solutions give reason for cautious optimism that these issues will be resolved in the near term. b. Given that the procurement specialist has already been hired and ToR for the financial specialist has been submitted, ratings for procurement and financial management remain satisfactory. Although there were delays in the hiring of key PMU positions, all ToRs for PMU staffing have been submitted for World Bank clearance and the PWA continues to demonstrate satisfactory overall management of the project. 41 PID MDTF Semi-annual Report FY21 2.1.2 Progress by Activities AWP (P168739) Duration: 5 years Board Approval Date: February 10, 2020 Project Closing Date: December 31, 2024 Total Grant Financing: US$117 milliona PID MDTF Grant Amount: US$42 million Approval: March 3, 2020 TFGWB Grant Amount: US$15 million Approval: March 18, 2020 Status: Active Objective: To improve the quality and quantity of bulk water supplied to the municipalities served in the project areas and strengthen the capacity of the Palestinian Water Authority. Note: a. Including US$57 million from PID MDTF and TFGWB and US$60 million in parallel funding from Kuwait. Background Water from the coastal aquifer in Gaza is extracted at three times the safe yield; the aquifer is contaminated due to inefficient wastewater treatment, and salinity is increasing due to sea water intrusion. This leaves 97 percent of Gazans relying on unregulated private water tankers and small-scale informal desalination plants for drinking water. In the West Bank, there is also a need to further advance investments in bulk water supply and conveyance and to develop an integrated bulk water supply master plan. Responding to the need, the AWP is part of a coordinated international effort to address chronic poor water quality in Gaza and the significant increase in domestic demand expected in the medium term. The PWA, in partnership with the European Commission, the European Investment Bank, the Union for the Mediterranean, the Islamic Development Bank, and the World Bank, formulated the Gaza Central Desalination Program (GCDP). The GCDP covers all Gaza and comprises two main components: (a) construction of a desalination plant with initial capacity to produce 55 million cubic meters (MCM) a year of desalinated water that can be doubled in the future and (b) construction of a north-south water carrier, including storage reservoirs to convey and properly blend the desalinated water with groundwater sources to achieve water supply meeting WHO guidelines for potable water. The latter component is referred to as ‘Associated Works’. Securing the required funding and implementing the GCDP will take several years, leaving the water situation in Gaza, particularly in the southern and middle governorates, in urgent need of improvement. In this context, the international community supported the construction of two STLVs, which produce 4.7 MCM per year as interim measures to alleviate the needs for fresh water. In addition, the PWA has negotiated the purchase of an additional 5 MCM per year of fresh water from Mekorot for the middle and southern governorates of Gaza for a total of 10 MCM. 42 PID MDTF Semi-annual Report FY21 The project is contributing toward enhancing the capacity of water sector institutions and reforms outlined in the 2014 Water Law. This includes institutional strengthening activities aimed at the establishment of a small unit to manage bulk water supply operations in Gaza— thus laying the groundwork for the future establishment of the National Water Company, which is mandated by the Water Law to manage and operate bulk water throughout the WB&G. The project also lays the foundation for enhancing the performance of service providers by supporting the design and piloting of a national services improvement program, which will serve to guide all future interventions aimed at improving municipal water and sanitation service delivery. The project will further enhance the reform efforts outlined in the 2014 Water Law. Key Results After effectiveness was declared on April 26, 2020, the project has progressed with key ToRs developed and cleared. The project has faced minor delays—including staffing of key positions in the Project Management Support Unit (PMSU) as well as procurement of the PIC—but is otherwise progressing. · Progress under Component 1 (Improved Supply of Bulk Water to the Southern and Middle Governorates of Gaza) is dependent on the PIC being contracted for tendering of the key packages, a process currently under way.  · Under Component 2 (Capacity Building and Performance Improvement of Selected Institutions), progress is also evident with deeper analysis of certain areas (establishment of the BWSU) under way. · Two important sets of ToRs have been developed: (a) for implementation of the activities under Subcomponent 2.3 (Priority investment planning for bulk water supply in the West Bank) for the update of the national water sector policy and strategy and (b) for the development of the Master Plan for the Bulk Water Supply System and Priority Investments. · Important progress has been observed as well on the reform agenda of the sector with the government’s decision in November 2020 to establish the National Water Company. Main Issues While the project is progressing, it has nevertheless been handicapped by serious challenges outside the sector, including (a) Overall political and fiscal issues; (b) COVID-19 impacts, including the closure of the PWA offices and staff being ill and unable to work; (c) A ‘cap’ of salaries (effectively a salary reduction) by the PA, resulting in three staff members (the procurement, financial management, and safeguards specialists) resigning from the project. The PWA has put in place interim measures to have the tasks performed by other qualified PWA staff; and (d) Unclear progress on the reform agenda including positive decisions being taken but slow implementation of the decisions. 43 PID MDTF Semi-annual Report FY21 In spite of the above, the project is moving in the right direction and measures are largely in place to address the immediate shortcomings. These are serious challenges but the PWA—with the backing of the World Bank—is working to overcome them. Upcoming Priorities The World Bank is working hard to move forward according to plan in close coordination with the PWA to manage the challenges (COVID-19 and others) that are affecting the project. Close dialogue is foreseen in the following areas: · Getting a fully staffed PMSU in place for the project, including close dialogue with PA and the PWA on the issue of the salary cap · Working closely with the PWA in finding ways to cover for certain competencies and positions which may be hard to fill. Through these measures, the PWA should be able to advance procurement processes of key tendering packages. Additional Information To access all project information including Project Appraisal Documents, Implementation Completion and Results Reports, and ISRs, please refer to the following link: https://projects. worldbank.org/en/projects-operations/project-detail/P168739. 44 PID MDTF Semi-annual Report FY21 Gaza Wastewater Management and Sustainability Project (P172578) Duration: 4 years Board Approval Date: June 10, 2020 Expected Closing Date: May 21, 2024 Total Grant Financing: US$13.7 million PID MDTF Grant Amount: US$3.7 million Approval: April 22, 2020 TFGWB Grant Amount: US$10 million Approval: April 27, 2020 Status: Active Objective: (a) To support the continuation of wastewater treatment services in North Gaza and (b) to strengthen the capacity of the water institutions to efficiently manage wastewater services. Background The Wastewater Management Sustainability (WMS) Project is supporting the uninterrupted operation of the North Gaza Wastewater Management Facilities (NGWMF) to benefit 368,000 residents in North Gaza, while protecting people and communities from the risk of devastating floods of untreated wastewater. The treated effluent will be used to replenish the coastal aquifer of Gaza for reuse in agriculture. The project addresses the urgent need to finance efficient O&M expenses for four years, as well as minor rehabilitation to guarantee performance at design capacity, and high priority measures to gain resilience and flexibility to mitigate flood risks and reduce vulnerability to man-made hazards, political conflicts and climate change. At the same time, the project is financing TA to strengthen the capacity of the CMWU as a regional water utility of the PWA, in close coordination with the international donor community, which is supporting similar wastewater treatment facilities in central and south Gaza. Key Results The project was approved on June 10, 2020 and was declared effective on September 22, 2020, and its implementation is advancing satisfactorily, despite various challenges faced during this reporting period. Key results include: · PWA is working to hire of key specialists that conform the PMU. This is progressing with delays. · PWA with the support of the World Bank and relevant stakeholders are advancing discussions on institutional arrangements of the NGWMF O&M, establishment of the Regional Water Utility, as well as the approach for the preparation and signing of the service agreements between the four municipalities and the CMWU. These are a key to ensure the future sustainability of the NGWMF. · Under Component 3 (Capacity building for sustainability of wastewater services), the PWA and the World Bank have agreed on the steps for the CMWU to complete the 45 PID MDTF Semi-annual Report FY21 fiduciary requirements before it can take the technical oversight for the operation of the NGWMF. The ToRs for the twinning arrangement/expert support for the O&M of the NGWMF (under Component 3) have also been prepared. · Under Component 2 (Rehabilitation and upgrade of the NGWMF to improve efficiency, build resiliency and address emergencies), the PWA is in the process of preparing the tender documents for the rehabilitation of the NGWMF and the construction of the equalization tank and emergency pond, including the one for the SCADA system. The contract for the reparation of the biogas balloon for electricity co-generation is under preparation. Supporting Component 1 (Support the continued operation of the NGWMF), coordination between the PWA, the World Bank and the donor community contributed to successfully manage a recent blockage of fuel entry into Gaza which caused interruption of power supply to the NGWMF. An assessment of emergency requirements to ensure the operation of the NGWMF in the case of emergencies has been prepared by the PWA. Main Issues The operation of the NGWMF has encountered several challenges during this reporting period due to: · Shortage of fuel imports to Gaza due to the recent restrictions imposed by Government of Israel have caused electricity shortages and reduced hours of operation of the NGWMF. · High water consumption in the summer months of August has increased the wastewater flow arriving at the TPS, leading to malfunction of one of the three working pump which have since been repaired. Delays in covering operational expenses including salary payments to the O&M teams due to the liquidity problems facing the PA. Upcoming Priorities The World Bank and PWA team are working closely to overcome current challenges (COVID-19, liquidity issues, operational challenges, and so on). The following are upcoming priorities. · Getting a fully staffed PMSU in place for the project, including close dialogue with PA and PWA on the issue of the salary cap. · Continue high-level discussions and reach agreements on key institutional activities under Component 3 (Capacity building for sustainability of wastewater services). · Advance tendering and implementation of contracts under Component 2 (Rehabilitation and upgrade of the NGWMF to improve efficiency, build resiliency and address emergencies). 46 PID MDTF Semi-annual Report FY21 2.2. Urban Sector 2.2.1. Sector Context The PID MDTF’s co-financing continues to be instrumental in developing a channel for Palestinian local authorities to perform critical service delivery functions despite the persistent political, socioeconomic, and financial constraints. This has become especially timely and necessary due to the additional pressures the COVID pandemic has brought on LGUs who, as key providers of basic services to citizens, are playing a central role in the emergency response to the pandemic. The LGUs are currently facing an increasing fiscal and financial crisis due to the pandemic. The economic downturn from the pandemic has severely affected the already limited revenue streams of LGUs, contributing to increased debt and new arrears on their part. During this reporting period, an AF with co-financing from PID MDTF has been prepared for MDP-3, to support the COVID response at the LGU level, maintain services in the face of the growing financial crises, and create temporary jobs as a short-term boost to the economy. Although the PA briefly resumed operations in mid-June 2020 after three months of total closure, the state of emergency remains in place and shelter-in-place modalities continue to be used as needed for different periods, resulting in sporadic shifts in functionality and varying productivity levels at the government agencies and LGUs. This has resulted in delays for some projects. The World Bank task teams are working closely with the implementing ministries and agencies to maintain progress and deliver activities where possible. Project implementation is proceeding at moderately satisfactory levels in terms of achieving PDOs. Key project ratings for the current reporting period are summarized in Table 11. The PA is taking preparatory measures to develop a sustainable subnational lending framework and future lending function for the MDLF. The World Bank will continue supporting the MDLF to develop an appropriate lending model, aimed at hastening the introduction of municipal credit and creation of a sustainable financing regime for LGUs. Strengthening of JSCs will remain a high priority. With support from the PID MDTF, engagement on the reform agenda during this period continues focusing on state land management and property tax reform. Land asset management and increased revenue sources will be needed more by the PA to facilitate development efforts going forward. Co-financing from the PID MDTF is supporting solid waste management in Gaza by investing in critical infrastructure and building up the institutional capacity of the JSC-KRM area governorate in the area of improved service delivery and cost recovery. In addition, funding from the PID MDTF provided much needed COVID-19 mitigation support, by enabling the JSC to accommodate additional collection routes at the height of the pandemic, provide collection and disposal services from the quarantine centers, and fund PPE and safe waste handling training for the JSC staff. 47 PID MDTF Semi-annual Report FY21 Table 11: Urban Sector - Key Project Ratings Previous Rating Current Rating MDP-3 Progress toward Achievement of PDO Satisfactory Moderately Satisfactorya Overall Implementation Progress Satisfactory Moderately Satisfactoryb Financial Management Satisfactory Satisfactory Project Management Satisfactory Satisfactory Counterpart Funding Satisfactory Moderately Satisfactoryc Procurement Satisfactory Satisfactory Monitoring and Evaluation Satisfactory Satisfactory GSWMP Progress toward Achievement of PDO Satisfactory Satisfactory Overall Implementation Progress Satisfactory Satisfactory Financial Management Satisfactory Satisfactory Project Management Satisfactory Satisfactory Counterpart Funding Moderately Satisfactory Moderately Satisfactory Procurement Satisfactory Satisfactory Monitoring and Evaluation Moderately Satisfactory Moderately Satisfactory LGSIP Progress toward Achievement of PDO Satisfactory Satisfactory Overall Implementation Progress Satisfactory Satisfactory Technical Satisfactory Satisfactory Fiduciary Systems Satisfactory Satisfactory Environmental and Social (E&S) Systems Satisfactory Moderately Satisfactoryd Disbursement-linked Indicators (DLIs) Moderately Satisfactory Satisfactorye Monitoring and Evaluation Satisfactory Satisfactory 48 PID MDTF Semi-annual Report FY21 RERP Progress toward Achievement of PDO Satisfactory Moderately Satisfactoryf Overall Implementation Progress Satisfactory Moderately Satisfactory Financial Management Satisfactory Moderately Satisfactoryg Project Management Satisfactory Moderately Satisfactoryh Procurement Satisfactory Satisfactory Monitoring and Evaluation Satisfactory Satisfactory Note: a. Overall, Implementation Progress was found to be Satisfactory, as the MDLF ensured completion of project activities under state of emergency restrictions imposed since March 2020. Disbursement from World Bank financing is on track. As of August 17, 2020, the project disbursed US$35.23 million, which represents 69 percent of total World Bank project financing. However, the COVID-19 global pandemic is adversely affecting the ability of municipalities to raise revenues to support local service delivery and will thus put the project at risk of fully meeting its PDO. PDO indicators 1 and 4, which directly relate with financial performance, will unlikely be met. Thus, the PDO rating is downgraded to Moderately Satisfactory. b. The team downgrades Implementation Progress to Moderately Satisfactory. The downgrade is due to the unlikely achievement of PDO indicators by the original closing date of February 28, 2022. With the extension of project closing date and the revisions to the RF brought about by the recently approved AF, these ratings will be reviewed at the next supervision mission. c. No progress has been reported on counterpart funding since the MTR in January 2020. So far, the PA has disbursed EUR 2.27 million of its counterpart funds (54% of total commitment for Cycle 1). As a result, the rating for counterpart funding is downgraded to Moderately Satisfactory. The team hopes that the financial situation in the PA will improve in the coming months to enable the PA to provide the committed counterpart contribution to complete project activities. d. The mission has identified a few shortcomings in the social risk management tools, mainly consultations and GRM. The mission also identified limited capacity to perform and monitor the implementation of the social requirements. Thus, the E&S systems’ rating was downgraded to Moderately Satisfactory. e. The DLI rating was upgraded to Satisfactory given that all DLIs were achieved. On November 23, the MDLF submitted the independent verification agent (IVA) for the achievement of the only lagging DLI under the program. Upon verification of the IVA report, all DLIs under the program can be considered fully achieved. f. All key project ratings have been downgraded to Moderately Satisfactory to reflect the overall delays caused by office closures and restrictions related to the ongoing pandemic, challenges in identifying eligible properties for DLI disbursement and retroactive financing for 2019–2020, and delays in financial management reporting. These delays are not significant, and, overall, the project remains on track to reach the development objectives, but this will be reconfirmed once the strategy for first registration of eligible land and properties is prepared and presented by the LWSC. The team is also actively supporting the PLA and LWSC to complete activity ToRs and technical specifications to hasten procurement and contract signing. g. Financial management has been downgraded to Moderately Unsatisfactory due to (a) staffing issues caused by the departure of the previous financial management specialist and the protracted time it took to recruit a new one and (b) overdue interim financial reports for year-end 2020 that have still not been submitted. h. The project management rating has been downgraded to Moderately Satisfactory due to (a) low disbursements, (b) some delays in project implementation, and (c) vacancies in the PMU that were only recently filled. 49 PID MDTF Semi-annual Report FY21 2.2.2. Progress by Activities MDP-3 (P159258) Duration: 5.5 years Board Approval Date: July 21, 2017 Project Closing Date: February 28, 2023a Total Grant Financing: US$76 million TFGWB Financing: US$16 million Approval: July 21, 2017 TFGWB Additional Financing Grant: US$10 million Approval: May 23, 2019 TFGWB Additional Financing for COVID-19 Response: US$15 million Approval: March 5, 2021 PID MDTF Grant Amount: US$20 million Approval: November 27, 2017 PID MDTF Additional Financing Grant: US$5 million Approval: May 23, 2019 PID MDTF Additional Financing for COVID-19 Response: US$10 million Approval: March 5, 2021 Status: Active Objective: To enhance the institutional capacity of municipalities in the West Bank and Gaza for more accountable and sustainable service delivery. Note: a. The MDP’s closing date was extended by one year from February 28, 2022 to February 28, 2023, to reflect its AF to support the municipal response to COVID-19 through grants to municipalities. Key Results The project’s main objective of enhancing the institutional capacity of municipalities in the West Bank and Gaza for more accountable and sustainable service delivery is being pursued through five main components: (a) municipal service delivery through capital investments and operating expenditure (Component 1); (b) institutional capacity of municipalities, MoLG, and MDLF through capacity development activities (Component 2); (c) TA to municipalities to engage more effectively with the private sector and develop joint projects (Component 3); (d) project implementation support (Component 4); and (e) expansion of local service delivery in Gaza municipalities through labor-intensive O&M and development activities (Component 5). The project implementation progress was found satisfactory during the joint implementation support mission that was carried out virtually in August 2020. The MDLF intensified its efforts to quickly adapt and overcome the physical restrictions and constraints caused by the global pandemic. · Nearly 94 percent of the infrastructure subprojects have been completed and the majority of the capacity-building packages have been delivered under the first cycle of the project. The project continues to be dominated by roads micro-subprojects (55% of the total number of subprojects and 73% of the total subproject costs) followed by public facilities9 (10% of the total number of subprojects and 10% of the total subproject costs). · Significant progress was made by the emergency labor-intensive municipal services in Gaza (Component 5), with the project already generating around 2,700 jobs out of 9 Public facilities include municipal buildings, libraries, community centers, and public parks. 50 PID MDTF Semi-annual Report FY21 the 5,000 end target. The MDLF completed appraisal of all subprojects and reported completion of 15 percent of Component 5 activities (US$1.39 million) while another 21 percent is currently under implementation. · The MDLF, in close collaboration with the World Bank, updated and publicly disclosed in December 2020 the ESMF, the LALAPF, and the GRM manual to address the COVID-19 related risks, stakeholder engagement process, labor behavioral conditions and grievance, gender-based violence and sexual exploitation and abuse/sexual harassment-related complaints. The public consultation procedures were also updated in response to the COVID-19 situation. Main Issues · The COVID-19 global pandemic is adversely affecting the ability of municipalities to raise revenues to support local service delivery and is putting the project at risk of fully meeting its PDO. Two out of four main PDO indicators that directly relate to financial performance will unlikely be met: PDO indicator 1 (number of municipalities that move up one rank in the performance assessment system - end target of 100 municipalities) and PDO indicator 4 (number of municipalities with operational and enterprise surplus and no increase in arrears - end target of 80 municipalities). Given the obstacles and constraints imposed by the pandemic, the MDLF is proposing to revise the end targets for a number of indicators in the RF and extend the project closing date to allow for completion of project activities. A restructuring is currently under way to extend the project closing date and revise the RF. · Given the restrictions on large gatherings due to the pandemic, the format of capacity development packages—requiring classroom training and hands-on technical support— will need to be adjusted to ensure compliance with social distancing requirements. Such packages include the training and coaching of newly established municipalities as well as peer learning, exchange visits, and workshops. Upcoming Priorities · The World Bank (TFGWB and PID MDTF), KfW, and AFD committed to providing additional funds to MDP-3—in the amount of US$25 million, EUR 13 million, and EUR 10.5 million, respectively—to support the municipal response to COVID-19. The AF will support sustaining basic service delivery and creating jobs through LIPW to alleviate the social and economic hardship caused by the pandemic. The project is restructured after World Bank approval of the AF. The Project Operations Manual will also be updated as a result of the adjustments to the project brought about by the AF, including extension of project closing date by another year, to February 28, 2023. · The MoLG reiterated its intent to initiate lending by the MDLF to municipalities and sought the support of the World Bank to decide on steps to take in this regard. The World Bank will work with the MDLF and the Ministry on a plan for the MDLF to deliver a pilot lending program. · The MDLF committed to piloting the Geo-enabling Supervision and Monitoring (GEMS) Tool for remote monitoring of the E&S safeguards for a number of subprojects to be supported through the COVID-19 municipal response. 51 PID MDTF Semi-annual Report FY21 GSWMP (P121648) Duration: 8 years Board Approval Date: March 31, 2014 Additional Financing Approval Date: August 28, 2020 Revised Project Closing Date: June 30, 2022 Total Grant Financing: US$13.25 million PID MDTF Grant Amount: US$1.25 milliona Approval: August 28, 2020 TFGWB Grant Amount: US$10 million Approval: March 5, 2014 GPRBA Grant Amount: US$2 million Approval: August 28, 2020 Status: Active Objective: To improve solid waste management services in the Gaza Strip. Note: a. Including US$0.75 million PID MDTF fund originally committed for the closure of the two dumpsites under the GSWMP and an additional US$0.5 million recently approved in August 2020 for incremental and COVID-related costs. Key Results Since the operationalization of the Sofa landfill in August 2019, over 94 percent of waste generated in the three governorates (Khan Younis, Rafah, and Middle area) is being disposed of at the landfill. This has greatly reduced the proliferation of dumpsites and illegal waste dumping/burning, and resulted in significant improvements in the health, environment, and esthetic appearance for over 900,000 beneficiary population in the project area. The ancillary facilities supported under the GSWMP that included landfill access road, waste transfer station, and medical waste treatment centers have also improved JSC-KRM’s service delivery and the overall solid waste management systems, sanitary facilities, and infrastructures built under the project. The operations of these modernized/upgraded infrastructures are also being supported by providing critical support to the JSC-staff through the development of SOPs and protocols for each solid waste service domain. In addition, targeted trainings are provided to the JSC staff on day-to-day landfill and transfer station service delivery management, facility operation, and administrative management. The key results are summarized as follows: · Over 600 tons/day of waste is being disposed of at the sanitary landfill. This constitutes about 94 percent of waste generated in the three governorates. · The project has managed to close 10 dumpsites in targeted areas, mitigating contamination of land and significantly improving public and environmental health for the beneficiary population in these areas. · The project is providing COVID-19 mitigation support to the JSC operation, primarily through the PID MDTF AF approved in August 2020. This has enabled the JSC to (a) create additional secondary collection services and routes at the height of the pandemic, (b) provide collection and disposal services from the QCs, and (c) provide PPE and safety trainings for staff on proper waste collection procedures from QCs. 52 PID MDTF Semi-annual Report FY21 · The project has introduced internationally accepted SOPs and protocols for the Sofa landfill, the transfer station at Rafah, and the medical waste management sorting facility at Khan Younis transfer station. The new SOPs have been under implementation since July 2020 and were formally adopted/endorsed by the Joint Services Council Committee in September 2020. · The Rafah transfer station constructed under the project has been handling transfer of waste since it become operational in late 2019, resulting in improved living conditions and cleanliness for the local populations around the transfer station and surrounding sites. · The medical waste treatment facility at Khan Younis managed by the JSC recently resumed operation, replacing the outdated autoclave treatment system by installing a new microwave-based system. This has enhanced treatment capacity and is expected to result in substantial operational cost savings for the JSC in the long run. · The project has provided alternative livelihood support to 16 waste-pickers through job retraining and placement. · While fee collection was affected during the initial outbreak of COVID-19, the annual bill collection of the JSC has had a modest rebound such that the current fee collection rate from participating municipalities has reached the targeted 60 percent. Main Issues · While the project managed to contain contaminated lands in the project areas by closing 10 dumpsites, the planned closure of the 2 large dumpsites (over 10 ha) at Deir Al Balah and Sofa Al Fukari has been significantly delayed. This implementation delay is mainly attributed to design complexities and intricacies due to the steep profile and size of the dumpsites, particularly for the Deir Al Balah dumpsite, which required the acquisition of additional adjacent land to reprofile the steep slopes as well as design adjustments for the final closure plan. However, there has been progress in recent months. Land acquisition by the government has been completed, all E&S safeguard instrumentation and requirements have been fulfilled, and the closure plans are scheduled to be implemented starting April 2021. · Leachate treatment system installation is in the final stages of design and will be implemented in the coming months. The final negotiations/discussions are under way with the neighboring WWTP facility to channel leachate generated from the landfill to be treated at the WWTP. · The global COVID-19 pandemic has also contributed to the delay in the implementation and completion of some of the communications and outreach-related activities—due largely to limitations imposed by the pandemic for in-person gathering and direct engagement with citizens. These include addressing solid waste service complaints from citizens through the GRM system and increasing participation and outreach to women and citizens. JSC-KRM is diversifying and strengthening its mode of communication and feedback mechanisms through the exploration of alternative communication channels. 53 PID MDTF Semi-annual Report FY21 Upcoming Priorities In the remaining project implementation period, the main priorities for the project will be the following: · Expedite implementation of dumpsite closures. This will require close contract supervision and coordination support from DPs and Coordination of Government Activities in the Territories (COGAT) both to facilitate the import of necessary material and equipment as well as security clearances for site access during implementation of the closure plans. · Facilitate installation of the physical leachate treatment infrastructure at the landfill and ensure adherence to the agreed pretreatment standards for disposal at the WWTP. · Monitor implementation of SOPs for the various JSC-KRM service functions and processes, and ensure that the results-based indicators/key performance indicators are fully achieved for eligibility of results-based payments. · Strengthen financial management systems (and financial sustainability) of JSC-KRM and the participating municipalities through targeted TA aimed at improving JSC- KRM’s fee collection rate and capacity. · Strengthen JSC-KRM’s communication and outreach programs, including (a) revamping of the GRM system, (b) increased inclusion and participation of women in solid waste service provisions and (c) raising of citizen awareness and engagement with regard to project activities. 54 PID MDTF Semi-annual Report FY21 LGSIP (P148896) Duration: 5 years Board Approval Date: November 2, 2015 Project Closing Date: December 31, 2021 Total Grant Financing: US$18 million PID MDTF Grant Amount: US$13 million Approval: March 13, 2017 TFGWB Grant Amount: US$5 million Approval: September 2, 2015 PID MDTF AF Grant Amount: US$2 million (proposed) Status: Active Objective: To strengthen the local government financing system and improve local service delivery in program villages. Key Results In its final year of implementation, the LGSIP has fully achieved all the DLIs. The Program’s grants of US$18 million were fully disbursed and transferred to the MoF. The Program was restructured in August 2020 to extend the closing date by one year from December 31, 2020 to December 31, 2021. The extension of the closing date will allow more time to satisfactorily complete both the subprojects for eligible VCs and joint projects through JSCs, thus achieving the intended outcomes. · The Program is on track to achieve its PDO. The Program has fully achieved the targets for three out of four main PDO indicators. · The MoLG continues to provide administrative and technical oversight to VCs and JSCs for the implementation of investments of those eligible VCs under the Program. Four investment grant cycles, worth US$13.4 million, have been covered under LGSIP. All investment subprojects for the first and second investment cycles were completed. The MoLG is following up with VCs and JSCs to complete the subprojects for the remaining two cycles. · In an immediate response to the pandemic, the MoLG and the World Bank agreed to allow eligible VCs to use up to 25 percent of their ACIG allocation for 2019/20 to cover urgent expenses to combat the spread of COVID-19. Ten VCs submitted proposals worth around US$60,000 to cover the costs of solid waste collection and dumping that are critical for the sanitation and public hygiene of the villages. · The end target of approving 18 cumulative joint projects in FY20 has been surpassed with 27 joint projects covered under the Program. The joint projects are in various stages of implementation and are expected to be completed by the Program closing date. 55 PID MDTF Semi-annual Report FY21 Main Issues · The MoF is yet to transfer the PA contribution to the Program in the amount of US$2 million to fully cover the funding requirements of eligible VCs. Upcoming Priorities · Prepare verification of LGSIP grant proceeds and carry out the Implementation Completion and Results Report (ICR) mission. · The MoLG reiterated its request for the World Bank to sustain its support to VCs after the completion of LGSIP (that is, December 2021). This request will be considered in the development of any future wave of support to the LGUs arising from the new Assistance Strategy FY22–25. 56 PID MDTF Semi-annual Report FY21 RERP (P168576) Duration: 4 years Board Approval Date: July 22, 2019 Project Closing Date: November 30, 2023 Total Grant Financing: US$12.6 million PID MDTF Grant Amount: US$3 million Approval: May 14, 2019 TFGWB Grant Amount: US$5 million Approval: May 13, 2019 GPRBA Grant Amount: US$4.6 million Approval: May 14, 2019 Status: Active Objective: To enhance tenure security and improve real estate registration services. Key Results Although the PA briefly resumed operations in mid-June 2020 after three months of total closure, the state of emergency remains in place and shelter-in-place modalities continue to be used as needed for different periods, resulting in sporadic shifts in functionality at the land agencies and varying productivity levels. This has resulted in project delays—particularly in the fulfillment of the Legal Covenants (see paragraph below) and the processing of procurement packages. Although the RERP remains on track to reach its development objectives, the protraction of the pandemic is expected to have an impact on the speed at which planned consultancies and works, especially settlement activities, can be mobilized, as travel restrictions within and from outside the West Bank continue. The task team is working with the PLA and LWSC to address this issue and find alternative ways to deliver activities where possible, as follows: · A consulting firm has been contracted by the LWSC and has produced initial drafts of the SIA and the SMP. · An inter-ministerial Steering Committee for the project has been formed, and the Committee’s ToR has been finalized. The first meeting was held on February 16, 2021. · The ToR for the activity under Subcomponent 2.3 (Property Valuation) has been completed, and this will include (a) the development of valuation standards and methodologies for mass and single real property valuation, (b) the development of regulations for the valuation profession, and (c) the collection of data for valuation pilot project and analysis/modeling. · The independent verification agency responsible for reviewing submitted parcels for verification and reimbursement was successfully hired. · The LWSC began procurement for the joint PMIS/Workflow Management System. Main Issues · There is a lag in disbursement and financing for the project. The LWSC needs to submit eligible parcels for retroactive financing for 2019 and early 2020 and financing for the 57 PID MDTF Semi-annual Report FY21 remainder of 2020 to process DLI disbursements under Subcomponent 1.1 (Systematic Land Registration). To hasten the identification of eligible properties, the LWSC—with support from the project—has hired two survey engineers to manually review the completed parcels and assess eligibility for financing. · The capacity for implementation at both agencies remains low. The team has been boosting this capacity through support from the parallel Support to the Palestinian Land Sector ASA/TA. · The Project Implementation Unit (PIU) has just recently completed filling its positions, and the staff will need to begin to hasten progress on project activities, which have been slow. · Development of the GAP has been delayed due to COVID-19 but is now ongoing. Upcoming Priorities · Complete the SIA and SMP for the project. · Complete the GAP and agree on the follow-up activities to be launched by the LWSC and PLA with support from the project. · The PLA/LWSC to send draft capacity-building and training plan to the World Bank for review and no objection. · Complete procurement of the firm to develop the PMIS and automated business processes in SLR for the LWSC. · Complete the ToR for the development of the National Geodetic Referencing Framework. · Launch procurement for the digitization of real estate records (that is, property titles and applications). · Launch procurement for the technical review of existing information systems and preparation of the PLA digital transformation strategy assessing the necessary improvements of the existing IT system. 58 PID MDTF Semi-annual Report FY21 2.3. Energy Sector 2.3.1. Sector Context The energy sector remains central to the interventions supported under the PID MDTF. However, the sector also remains under a severe level of stress, with insufficient power supply to meet the growing demand in Gaza and growing shortages in the West Bank, further affected and restricted by COVID-19. However, the PA is keen on advancing its commitments to energy reforms and improvements. Although significant achievements have been made to enhance the financial performance of electricity distribution companies (DISCOs) in the West Bank, institutional reforms and infrastructure investments will need to continue to achieve energy security for the WB&G. With support from the PID MDTF, the Palestinian energy sector continues to implement critical institutional reform measures. ESPIP has helped the PETL play a key role in the ongoing restructuring of the sector. Since its effectiveness, ESPIP is focusing on improving the efficiency and service quality of the electricity distribution system and the financial sustainability of the sector. ESPIP is supporting PENRA in its efforts to roll out Revenue Protection Programs (RPPs), establish the Management Information System (MIS) for the DISCOs, and implement the Gaza Rooftop Solar Revolving Fund, as well as the installation of solar systems in selected schools and clinics. In addition, the Energy Sector Programmatic TA’s consultancy services have supported preparation and implementation of key activities financed under ESPIP, including technical specifications for the bidding process to support RPPs and the MIS. The TA is also playing a central role in advancing the logistical execution of the Gaza rooftop solar initiative for households, SMEs, and health facilities. The projects continue satisfactory progress toward achieving the PDO. Key project ratings for the reporting period are summarized in Table 12. Table 12: Energy Sector - Key Project Ratings Previous Rating Current Rating ESPIP and AF Progress toward achievement of PDO Satisfactory Satisfactory Overall Implementation Progress Moderately Satisfactory Moderately Satisfactory Financial Management Satisfactory Satisfactory Project Management Satisfactory Satisfactory Procurement Moderately Satisfactory Moderately Satisfactory Monitoring and Evaluation Satisfactory Satisfactory 59 PID MDTF Semi-annual Report FY21 Previous Rating Current Rating ASPIRE MPA Progress toward achievement of PDO Satisfactory Satisfactory Overall Implementation Progress Satisfactory Satisfactory Financial Management Satisfactory Satisfactory Project Management Satisfactory Satisfactory Procurement Satisfactory Satisfactory Monitoring and Evaluation Satisfactory Satisfactory 60 PID MDTF Semi-annual Report FY21 2.3.2. Progress by Activities ESPIP (P148600) and ESPIP AF (P167914) Duration: 6 years Board Approval Date: July 27, 2017 Project Closing Date: December 20, 2023 Total Grant Financing: US$23 million PID MDTF Grant Amount: US$7 million Approval: May 12, 2017 PID MDTF AF Grant Amount: US$7 million Approval: January 14, 2019 TFGWB Grant Amount: US$4 million Approval: May 10, 2017 TFGWB AF Grant Amount: US$5 million Approval: November 14, 2018 Status: Active Objective: To enhance the energy sector’s institutional capacity, improve efficiency of the electricity distribution system and pilot a new business model for solar energy service delivery in Gaza. Key Results The project provided support to O&M of the Palestinian Energy Transmission Company Ltd. (PETL) and to the staffing and operational budget for PENRA’s PMU under the PID MDTF. The IT, testing equipment, and safety gear procured through the project are being utilized to support the operation of PETL substations. PENRA continues to report repayment of nearly 100 percent of the bills issued for the electricity provided by the PETL to the two DISCOs in 2017–19. The bidding processes for the supply of the equipment for upgrading the connection points and the supply of spare parts for HV substations are ongoing. Each of the six DISCOs across the WB&G completed an extensive review of their (a) customer database to identify high-value customers for the RPP and (b) existing MIS to identify priority needs. The procurement process for RPP, covering approximately 16,000 customers across the WB&G, has been concluded, and smart meter deployment took place in January 2021. The procurement process for the MIS in West Bank is under way and the one for Gaza expected to be launched during the second semester of 2021. The Gaza rooftop solar PV systems initiative was formally launched in October 2018 with the signing of the PENRA-GEDCO agreement. The initiative includes Bank of Palestine and Quds Bank as participating banks. The procurement process for about 84 solar PV systems of size 2.5 kWp, 3 kWp, and 5 kWp was concluded and, to date, 7 systems have been installed and are in operation. More beneficiaries have already been identified by PENRA and the GEDCO, and they continue to undertake outreach through workshops, information material, and radio advertisements to invite and increase beneficiaries for the next stages. 61 PID MDTF Semi-annual Report FY21 Main Issues · Complexity in managing the MIS that will be upgraded or installed in the DISCOs. · Challenges in selecting beneficiaries with salaried employment for solar PV systems, due to the continuing economic crisis in Gaza. · COVID-19 impacts and restrictions—especially lockdowns—which affect the response capacity of counterpart institutions as well as the implementation of activities in the field. · Challenges from continuing strikes due to non-payment of staff salaries. Upcoming Priorities To increase the pace of implementation, particularly regarding procurement and deployment of · The MIS across all six DISCOs in the WB&G; and · Solar rooftop PV system in schools and health clinics. 62 PID MDTF Semi-annual Report FY21 ASPIRE MPA (P170928) Duration: 8 years Board Approval Date: April 24, 2020 Program Closing Date: June 30, 2028 Total Grant Financing: US$63 million for Phase I PID MDTF Grant Amount: Phase I: US$49 million Approval: June 8, 2020 TFGWB Grant Amount: Phase I: US$14 million Approval: June 9, 2020 Status: Active Objective: To improve operational and financial performance of electricity sector institutions and promote diversification of energy sources. Key Results In November 2020, the PETL-IEC interim arrangement was signed, enabling the energization of all four HV substations across the West Bank and the prioritization of 43 connection points by the PETL. The procurement packages for (a) the different goods and materials required for the rehabilitation and transfer of IEC interconnection points in the WB&G, (b) the construction of the Jericho-Ramallah transmission line, and (c) the MV lines from Qusin-Sarra Junction to Qusin-Bet Iba Junction are currently being prepared for installation and are expected to be launched by mid-2021. The rehabilitation of the Tarqumiya substation in Hebron is completed. Procurement packages for the RPP continuation activities will begin in July 2021, well ahead of the planned start in FY23, to anticipate any potential delays that could surface as experienced during the implementation of such activities under ESPIP and its COVID-19 delays. The process for identifying grid enhancement needs regarding rooftop and small-scale solar PV systems was established by PENRA. Regarding the Revolving Fund for different types of beneficiaries, the following was agreed: (a) only two kits will be proposed under the pilot for the micro, small, and medium enterprises and residentials in the WB&G and (b) a new strategy will be developed, discussed, and approved for the subsidized systems in the West Bank, based on lessons learned from the ESPIP pilot. Five priority hospitals have been selected and environmental and social assessment started, with procurement expected to be launched during the second semester of 2021. An agreement still needs to be reached for the site location of the Palestinian medical complex. A ‘Design Committee’ was established by PENRA, PETL, and MoF for the Liquidity Support Account and Payment System (LSAPS) in November 2020. This committee is fully operational, with the support of one international expert consultant. The Liquidity Support Account operations manual is being prepared and is expected to be submitted for approval by June 2021. 63 PID MDTF Semi-annual Report FY21 Main Issues · Delay in issuance of permit from the Israeli Civil Administration. · COVID-19 impacts and restrictions from lockdowns, which affect the response capacity of counterpart institutions and the implementation of activities in the field. · Challenges from continuing strikes due to non-payment of staff salaries. Upcoming Priorities · Approval of the Liquidity Support Account operations manual. · Issuance of permit from the Israeli Civil Administration to advance procurement packages for the MV lines and substations. 64 PID MDTF Semi-annual Report FY21 3. World Bank-executed TA The PID MDTF has extended its World Bank-executed TA through five active channels: (a) Water Security TA, (b) LG Sector TA, (c) Land Sector TA, (d) Energy Sector TA, and (e) Analytical Work on Sustainability of Infrastructure. An update on each of these engagements is given in the following section. Programmatic Technical Assistance: Towards Water Security for the Palestinians (P167309) Duration: 3 years World Bank Management Concept Approval Date: June 27, 2019 Completion Date: December 29, 2022 Total Grant Financing: US$1.15 million PID MDTF Grant Financing: US$0.9 million Other Grant Financing: US$0.125 million MENA Region-wide TA MDTF - Parallel (TF072755): US$0.05 million World Bank Budget: US$0.075 million Status: Active Objective: To strengthen the operational and financial performance of the water and wastewater sector institutions in the West Bank and Gaza in support of the Water Law. Background The World Bank has identified—including through the 2018 WASH Poverty Diagnostic— that there are persistent gaps in institutional capacity and incentives, underlying financial vulnerabilities, and political realities that are limiting the full implementation of the 2014 Water Law and the SDP, meriting further analytical support and TA. Toward this end, the World Bank is supporting the operationalization of the 2014 Water Law and SDP through the Hebron Regional Waste Management Project - Phase I (HRWMP-I) and the AWP and WMS Project. HRWMP-I is critical to establishing basic wastewater services for Hebron City and improves environmental protection by reducing discharge of untreated sewage and making treated effluent available for agricultural purposes. AWP-I supports bulk infrastructure investments to address urgent water quantity and quality needs in Gaza by blending fresh water from Mekorot (Israeli bulk supplier), desalinated water from STLV desalination plants, and brackish groundwater to achieve the WHO standard for potable water. This blended water will subsequently be supplied to residents in the service area of Central and Southern Gaza through the water distribution network. The WMS Project ensures the sustainable operation of the Northern Gaza wastewater treatment scheme to mitigate adverse environmental and public health impacts on surrounding communities. It also improves managerial capacity and financial resilience of wastewater treatment services in the Gaza strip, with a view to ultimately achieving sustained service delivery. The Programmatic TA complements these operations and supports the PWA and other water sector stakeholders in conducting critical dialogues and analyses necessary to improve the performance of sector 65 PID MDTF Semi-annual Report FY21 institutions in (a) development of the data, capacity, and agreements necessary for effective transboundary management of bulk water and wastewater and (b) development of the data, capacity, agreements, and frameworks for improved operational and financial performance. Key Results The Water Security TA has been supporting the PWA in conducting dialogues and analysis necessary to improve the performance of the sector institutions as well as just-in-time support for emerging challenges such as COVID-19. More specifically, during the reporting period, the ASA achieved the following: · Support of the PWA in the development of data necessary for effective transboundary management of bulk water and wastewater. This included data from the Israeli Water Authority that was essential to understand the current situation and future plans. The work is still in progress. · Support of the PWA in building institutional capacity for CE and youth mainstreaming. The ASA delivered many workshops with the PWA on developing a plan for CE in Hebron, especially now that the government has managed to secure an agreement with the local community. · Continued support of the PWA in the implementation of capacity-building activities under the AWP and WMS Project—particularly in the creation of the BWSU and the transformation of the CMWU into an RWU. Upcoming priorities Going forward, the ASA will continue active engagement with multiple stakeholders around the following issues: · Lay the foundations for deepened transboundary water and wastewater engagement through (a) improved cooperation on water resources and (b) transboundary wastewater. · Continue capacity building of the PWA in the area of CE, building on the success of the CE efforts that supported the PWA in its dealings with community complaints under the HRWMP. · Support implementation of the 2014 Water Law and the November 2, 2020, Cabinet decision on the establishment of the National Water Company, and provide the foundation for a long-term engagement to support their implementation. 66 PID MDTF Semi-annual Report FY21 Palestinian Local Government Sector Reform Support (P161279) Duration: 4 years GA Date: October 3, 2016 Completion Date: June 30, 2021 Total Grant Financing: US$0.7 million PID MDTF Grant Amount: US$0.7 million Status: Active Objective: To strengthen the capacity of the MoLG and other agencies with core mandates in the LG sector, to refine and implement on-going LG sector reforms. Background The LG Sector Strategy (2017–2022) sets out a comprehensive set of policies toward achieving the PA vision for the sector, “good local governance, which is capable of achieving sustainable development with active community participation.” These include (a) setting up an effective legislative and regulatory framework, (b) improving LG performance, (c) enabling LGs to be financially stable and sustainable, (d) promoting local economic development, and (e) broadening citizen participation in LG decision-making and program implementation. This ASA provides advisory services and analytical support in these core reform areas. It aims to complement the larger LG Sector operations (especially MDP-3 and LGSIP) by providing the PA with responsive ongoing advice and analysis on critical reform-related tasks identified while implementing the LG Sector Strategy. Key Results Significant progress is currently being made on two fronts: (a) developing municipal credit and (b) improving LG performance monitoring. Other areas of focus, including on improvements to the intergovernmental fiscal transfer system (for example, rationalization of revenue and functional assignments) and devolution of property tax administration, are currently being dealt with largely through internal brainstorming sessions while awaiting an opportune time for more fully reengaging local and national counterpart institutions that are currently caught up in crisis mode responding to the pandemic and its accompanying fiscal stresses. Specific achievements by the ASA in recent months include the following: · Just-in-time advice to the PA on the activation of the lending function at the MDLF. The MoLG has indicated its desire to see the MDLF carry out lending to creditworthy municipalities on a pilot basis. An earlier study by the MDLF proposed an action plan and the World Bank, through this ASA, provided insights on how the lending can be initiated. A report was shared with the MDLF and its Board of Directors with key considerations for the development of an MDLF lending program. · Agreement with the MoLG to collaborate on establishing a sustainable performance monitoring system of LGUs. A draft concept note has been developed for a Local 67 PID MDTF Semi-annual Report FY21 Government Performance Monitoring and Assessment System (LGPMAS) that could ultimately become the basis for a performance-based intergovernmental fiscal transfer system in the WB&G. Upcoming Priorities · Support to the PA in identifying measures to improve fiscal sustainability of LGUs will be intensified. Analytical pieces on possible automatic appropriation for LGUs in the national budget will be prepared, building on work earlier supported by the ASA on functional and revenue assignment, devolution of property tax administration, and net lending. · A road map for strengthening LGU performance monitoring will be developed and consulted with the MoLG for potential implementation during the next FY. 68 PID MDTF Semi-annual Report FY21 Support to the Palestinian Land Sector Reform (P163872) Duration: 6.5 years GA Date: May 1, 2017 Completion Date: November 30, 2023 Total Grant Financing: US$2.15 million PID MDTF FY17 Grant Amount: US$0.7 million PID MDTF FY19 Replenishment Amount: US$0.8 million PID MDTF FY21 Replenishment Amount: US$0.5 million Global Tax Program MDTF Grant Amount: US$0.15 million Status: Active Objective: To (a) assess and quantify the economic, fiscal and social impact of a weak land administration system and of restrictions on access to land in the Palestinian territories and (b) assist the PA to refine and implement key policy, regulatory, and legal aspects of the Government Road Map for Reforming the Palestinian Land Sector (Road Map). Background In 2017, the PMO completed the draft Road Map to demonstrate the seriousness of the PA to implement short- and long-term land sector reforms. The Road Map was approved by the Cabinet in September 2017. It outlines a comprehensive, multiphase, multi-stakeholder approach to reforming the land sector, including the specific policy, legal, and institutional reforms. This ASA is composed of two correlated tasks: (a) a study on the potential economic, fiscal, and social benefits from reforming the land sector and (b) TA support to the PA in the implementation of key elements of the Road Map. The ASA was replenished with an additional US$0.8 million in 2019 and the closing date was extended. The additional funds will augment the ongoing TA activities of the ASA and support early implementation of the Real Estate Registration Project (RERP). The activities will include (a) design of a PMIS for the LWSC, (b) TA to support the continued reform of the legal framework as outlined under Pillar II of the Road Map, (c) policy development for property valuation and taxation, (d) policy development for state property management, and (e) continued TA support for finalization of the Geospatial Information Management Action Plan. Key Results Progress toward the development objective of the ASA remains Satisfactory. Another US$500,000 was added for expanded TA activities. Also, since the last reporting period, the closing date of the ASA was extended to November 30, 2023, which will coincide with the closing date of the RERP (P168576). This will support (a) continuous TA to the RERP’s implementing agencies, the LWSC and the PLA, and (b) capacity strengthening of the RERP’s PIU, particularly in the fields of IT, valuation, and gender. The following deliverables have been completed: 69 PID MDTF Semi-annual Report FY21 · Draft report for analysis of property taxation and preparation of options for revising the tax structure. · Draft findings for the study on state land management and associated policies and legislation. · Ongoing TA to the PLA and LWSC in the areas of IT, valuation, and gender; and · Ongoing detailed feedback and guidance on the development of the GAP under the RERP. Upcoming Priorities · Stakeholder consultations to take place to discuss the findings of the draft analysis and recommendations on property tax reform and state land management. · Finalization of policy reform reports on property tax reform and state land management based on the above-mentioned consultations. · TA to support the production of a gender survey regarding perceptions of women concerning their access and utilization of secure property rights. 70 PID MDTF Semi-annual Report FY21 West Bank & Gaza Energy Sector Programmatic Technical Assistance (P162545) Duration: 5 years GA Date: January 1, 2017 Completion Date: December 31, 2021a Total Grant Financing: US$2 million PID MDTF FY17 Grant Amount: US$1 million PID MDTF FY19 Replenishment Amount: US$1 million Status: Active Objective: To enhance energy sector institutional capacity and efficiency, and piloting models for renewable energy. Note: a. The grant closing date has been extended from June 30 to December 31, 2021. This will allow us to continue to provide technical advisory support to the PENRA/PA. In parallel, the World Bank will prepare the next programmatic ASA and ensure minimal gap between the closing of this ASA and the beginning of the next ASA. Background The programmatic TA provides support to the PA from external consultants and World Bank staff in the following areas of activity (particularly supporting the implementation of ESPIP and the ESPIP AF): (a) supporting PENRA’s ongoing reform, (b) enabling private sector participation, (c) building capacity of sector institutions, and (d) contributing to the start-up of the new multiphase program (ASPIRE MPA). Key Results The TA continues to support ESPIP and the ESPIP AF in newly identified technical assessment needs and the preparation of technical specifications for the bidding process to support the RPP, including the development of the MIS (Component 2) and the solar rooftop initiative for households, SMEs, and health facilities (Component 3). In addition, the TA has supported the development of the new operation ASPIRE, specifically in the conceptual design of the Liquidity Support Account to enable private sector investment in solar IPPs. Upcoming Priorities The programmatic TA will continue to support ESPIP components and start-up of ASPIRE MPA Phase 2. 71 PID MDTF Semi-annual Report FY21 Sustained Service Delivery through Improved O&M of Infrastructure in West Bank and Gaza (P173131) Duration: 18 months GA Date: February 15, 2020 Completion Date: March 15, 2022 Total Grant Financing: US$0.4 million PID MDTF Grant Amount: US$0.4 million Status: Active Objective: To provide support to the PA in maintaining service delivery through the development of action-oriented recommendations to improve infrastructure service sustainability in the WB&G. Background The WB&G has been experiencing severe infrastructure deficits as a result of increasing population and rapid urbanization. The supply of infrastructure has been unable to keep pace with growing demand because of the constrained fiscal capacity of the PA, exacerbated by declining donor aid and, recently, by the standoff with Israel over clearance revenues that Israel collects on behalf of the PA. The infrastructure gap continues to widen as fiscal constraints prevent the PA from carrying out investments to close the gap. While this happens, the existing infrastructure stock of the WB&G continues to deteriorate for various reasons including lack of a clear national policy or strategy on asset management, weak and fragmented institutional arrangements, insufficient to almost no funding provision, and deficient asset management practices, among others. The ASA aims to provide support to the PA in maintaining service delivery through the development of action-oriented recommendations to improve infrastructure service sustainability in the WB&G. The study specifically aims to (a) review the current state of infrastructure asset management in the WB&G; (b) map out and quantify the financing needs for infrastructure asset management; (c) explore opportunities for the PA to enhance infrastructure asset management by defining actions to improve asset practices and boost sustainability of infrastructure and identify possible solutions to generate a sustainable flow of resources; (d) identify and prioritize quick wins and strategic and potential areas for reforms; and (e) initiate serious dialogue with the PA and key stakeholders (including DPs) on the urgency of addressing O&M needs in the infrastructure sectors, spanning governance, institutional, funding, and capacity constraints. Key Results Overall, good progress has been made in implementing the ASA, particularly in carrying out data collection and preliminary analyses. The activities of this ASA are undertaken through a collaboration among the practice areas of Urban, Resilience, and Land (as lead) and Energy & Extractives, Governance, and Water. The COVID-19 pandemic has significantly affected the timing and approach in implementing the ASA activities. The work relies heavily on the use of data, and while most national government 72 PID MDTF Semi-annual Report FY21 partners have been cooperative in providing requested information, there are some agencies that do not have readily available information to share. Primary data collection, especially consultations and field assessments at the local government level, is all the more challenging as this may not be fully facilitated virtually. The team looks forward to conducting some face- to-face consultations with stakeholders to secure additional data and validation of the results of the analyses. Upcoming Priorities · Case studies in water, energy, and municipal infrastructure will be based on strategic review of current state of infrastructure asset management in the WB&G, which will identify ‘quick wins’ and demonstrable results and prioritize actionable areas for reforms. · Diagnostic report will present a consolidation of key results across all case studies, highlighting challenges and opportunities. · Consultation and dissemination: A stakeholder consultation plan is being scoped. The primary PA agencies that will be consulted/engaged with will include the MoLG, MoF, MDLF, and Ministry of Public Works, and LGUs, among others. · Guidance Note on long-term O&M strategy will be based on the case studies and diagnostic report and will focus on major findings and strategic short- and long-term recommendations. · Preliminary Project Concept Note for support to sustaining infrastructure in the WB&G: The preparation of the preliminary concept note will draw from the results of the case studies and the diagnostic report. 73 PID MDTF Semi-annual Report FY21 4. Program Management and Project Supervision 4.1. Program Management and Administration (PM&A) Window The Program and Trust Fund Management Window (hereafter, the TF Management Window) finances a portion of the management and administration costs associated with implementing the PID MDTF that are borne by the sector teams, country management, and central support functions. Up to 3 percent of the total pledged amount—around US$8.2 million as of December 31, 2021—can be allocated to this window from the Trustee Fund. To date, US$1.2 million—0.44 percent of the total pledged amount—has been committed to the TF Management Window, including both a US$700,000 commitment made on March 25, 2013, and an additional commitment of US$500,000 made on August 31, 2020. Approximately US$829,215 has been disbursed as of April 30, 2021. 4.2. Project Supervision Window To date, no supervision costs have been financed through the PID MDTF, despite an express provision having been made for it in the Administrative Agreements since the inception of the program in 2012. Project supervision has been covered exclusively by the World Bank implementation support budgets. As discussed in the FY20 semi-annual Oversight Group meeting, management had planned to allocate US$700,000 to this window during FY21, given the number and complexity of operations co-financed by the PID MDTF, the World Bank’s budgetary limitations, and the need to boost implementation support in specific cross-cutting areas—such as gender, community engagement, and climate co-benefits. The COVID-19 crisis and associated travel restrictions have ended up easing the stress on project supervision budgets in FY21, as mission travel ground to a halt and all business began to be conducted remotely. In view of this, there has been a delay in mobilizing this US$700,000 allocation, but it is still needed and relevant. We hope that the impact of vaccination begins to be felt during the rest of FY21, and we can once more do our work face to face at least in part, rather than only virtually. As these improvements take hold, we expect to add supervision resources to specific projects on the basis of need, by creating associated PID-financed charge codes for the relevant project, under the same project number. 74 PID MDTF Semi-annual Report FY21 ANNEX 1: PID MDTF Results Matrix as of December 31, 2020 Results Matrix - Active Projects Unit of End Result Indicators Baseline Previousa Current Measure Target Improve the quality of bulk water supplied to the Municipalities served in the project areas and support the continuous operation of the North Gaza Wastewater Management Facilities (NGWMF) Strengthening the capacity of the PWA to improve the quality and availability of bulk water The Gaza Bulk Water Supply Unit (BWSU) is established and Yes/No No No No Yes operational (AWP-I) Bulk water supplied by the BWSU to benefiting Volume in m3 0 0 0 30,000,000 municipalities (AWP-I) Bulk water samples meeting the quality standards set by the Percentage 0 0 0 95 WHO for potable water (AWP-I) BWSU bulk water quality report published biannually by PWA Yes/No No No No Yes (AWP-I) National Service Provider Improvement Program is Yes/No No No No Yes designed and approved (AWP-I) Supporting the continuation of wastewater treatment services and strengthening the capacity of wastewater management services in North Gaza. Monthly volume of wastewater arriving at the TPS that is Percentage 70 70 90 90 treated (WMS Project) Average O&M costs of the Amount NGWMF per month (WMS 277,000 277,0000 152,600 136,000 Project) (US$) Enhance the institutional capacity of Local Government Units and strengthen the local government financing system for more accountable and sustainable service delivery Improving local service delivery 75 PID MDTF Semi-annual Report FY21 Results Matrix - Active Projects Unit of End Result Indicators Baseline Previousa Current Measure Target People provided with improved living conditions and access to improved services (50% of which Number 0 892,548 936,129 850,000 female beneficiaries) (MDP-3 and LGSIP)b People benefitting from improved solid waste disposal services in Number 0 917,000 921,400 948,000 Gaza (Khan Younis, Rafah, and Middle Gaza) (GSWMP) Enhancing performance of local government sector institutions Municipalities that move up one rank in the performance Number 0 61 61 80 assessment system (MDP-3) Municipalities with operational and enterprise surplus and no Number 40 61 61 70c increase in arrears (MDP-3) VCs receiving transparent and predictable Annual Capital Percentage 0 76.40 76.40 70 Grants (LGSIP) Strengthening good governance in the local government sector Municipalities with public disclosure of executed budget and executed Strategic Number 0 140 140 100 Development and Investment Plans (MDP-3) Beneficiaries that feel Program investments reflected their Percentage 0 74 74 75 needsd (LGSIP) Beneficiaries satisfied with municipal subprojects executed Percentage 0 85 85 80 under MDP-3 (MDP-3) VCs submitting their annual budget to the MoLG electronically Percentage 10 76.4 76.4 60 on time and have disclosed budgets publicly (LGSIP) 76 PID MDTF Semi-annual Report FY21 Results Matrix - Active Projects Unit of End Result Indicators Baseline Previousa Current Measure Target Municipalities with functional Number 22 113 113 100 complaint system (MDP-3) Emergency COVID-19 Municipal Response Direct beneficiaries under the Emergency COVID-19 response Number 0 — 0 200,000 (MDP-3) Beneficiaries satisfied with the impact achieved under the Percentage 0 — 0 70 Emergency COVID-19 response (MDP-3) Paid working days created through the labor-intensive public works (LIPW) interventions Number 0 — 0 522,500 supported under the Emergency COVID-19 response (MDP-3) Municipalities that prepared crisis management and resilience Number 0 — 0 20 plans (MDP-3) Funds under Contingency Emergency Response Component Percentage 0 — 0 10 allocated toward subprojects that will benefit women (MDP-3) Enhance tenure security and improve real estate registration services Enhancing tenure security Properties in target areas with final ownership rights registered Number 0 0 0 350,000 (RERP) Improve real estate registration services Time to register property rights under the SLR process reduced Months 7.5 7.5 7.5 4.5 (RERP) Satisfaction of beneficiaries with respect to real estate Percentage 0 0 0 70 registration services improved (RERP) 77 PID MDTF Semi-annual Report FY21 Results Matrix - Active Projects Unit of End Result Indicators Baseline Previousa Current Measure Target Enhance institutional capacity of the energy sector, improve efficiency of the distribution system in targeted areas, and pilot a new business model for solar energy service delivery in Gaza Enhancing operational performance of electricity sector institutions Electricity losses per year in West Bank Distribution Percentage 23 23 21 19 Companies (DISCOs) (ASPIRE MPA Phase1) DISCOs with fully operational Management Information Number 0 0 0 6 Systems (ESPIP) Rate of response to grievances received related to the project Percentage 0 100 100 100 (all energy projects) Substation operationalized Yes/No No No Yes Yes (ASPIRE MPA Phase 1) Improving financial performance of electricity sector institutions Palestinian Electricity Transmission Company Ltd. Percentage 0 100 100 90 collection rate (ESPIP) Audits completed by Palestinian Electricity Regulatory Council Number 0 0 0 2 (ESPIP) Diversifying energy sources Total installed rooftop solar PV Number 0 0 7 800 systems in Gaza (ESPIP) Note: a. The results in the Previous column indicate the ones reported in the 2020 PID MDTF Annual Report (July 1, 2019 to June 30, 2020). b. MDP 500,000 + LGSIP 350,000. c. The end target was scaled down from 80 to 70 as part of the second restructuring that was approved on March 5, 2021. New data will be generated from performance assessment by MDLF at the end of the second cycle that is currently under implementation. 78 PID MDTF Semi-annual Report FY21 ANNEX 2: TF Financial Contributions as of December 31, 2020 (Pledged and Received) December 2020 Pledged to Date - TF071898 (in millions) Pledged Paid In to date Receivables Contributors Currency Pledge Paid-in Pledge USD USD USD Currency Currency Currency Croatia USD 0.2 0.2 0.2 0.2 0.0 0.0 Sweden SEK 310.0 40.3 310.0 40.3 0.0 0.0 Denmark DKK 220.0 37.9 220.0 37.9 0.0 0.0 Finland EUR 8.7 10.6 8.7 10.6 0.0 0.0 France EUR 3.5 4.4 3.5 4.4 0.0 0.0 Netherlands USD 4.0 4.0 4.0 4.0 0.0 0.0 Norway NOK 73.0 9.8 73.0 9.8 0.0 0.0 Portugal EUR 0.2 0.2 0.2 0.2 0.0 0.0 USD Totals: 107.3 107.3 0.0 December 2020 Pledged to Date - TF072778 (in millions) Pledged Paid In to date Receivables Contributors Currency Pledge Paid-in Pledge USD USD USD Currency Currency Currency Croatia USD 0.0 0.0 0.0 0.0 0.0 0.0 Sweden SEK 318.0 36.4 278.0 31.6 40.0 4.8 Denmark DKK 140.0 22.0 140.0 22.0 0.0 0.0 Finland EUR 2.3 2.4 2.3 2.4 0.0 0.0 France EUR 0.0 0.0 0.0 0.0 0.0 0.0 Netherlands USD 10.1 10.1 6.2 6.2 3.9 3.9 Norway NOK 327.0 37.7 218.2 25.0 108.8 12.7 Portugal EUR 0.0 0.0 0.0 0.0 0.0 0.0 United GBP 38.0 50.3 30.3 39.7 7.7 10.6 Kingdom Australia AUD 10.0 6.8 10.0 6.8 0.0 0.0 USD Totals: 165.8 133.9 31.9 79 PID MDTF Semi-annual Report FY21 ANNEX 3: Unaudited Trust Fund Financial Reports:TF071898, TF072778 WORLD BANK GROUP Partnership for Infrastructure Development in the West Bank and Gaza Multi Donor Trust Fund (WORLD BANK REFERENCE 71898) - Multi Donor Fund UNAUDITED TRUST FUNDS FINANCIAL REPORT Expressed in United States Dollars 07/01/2020 06/04/2012 to (date of inception) to 12/31/2020 12/31/2020 Receipts (Note 1) Cash Contributions 0.00 107,343,830.46 Investment Income (Note 5) 47,451.12 3,549,585.25 Transfers within Hierarchy 0.00 6,512,849.48 Contributions via Transfers 0.00 (6,512,849.48) Total Receipts 47,451.12 110,893,415.71 Disbursements (Note 1) Project Disbursements Disbursements to Grantee (379,525.56) (83,222,896.98) Direct costs Disbursed by WBG Staff Costs (Incl. Benefits) (Note 6) (293,279.89) (1,830,829.65) STC/STT Costs (112,191.79) (876,489.71) Total Personnel Costs (405,471.68) (2,707,319.36) Travel expenses 0.00 (269,685.71) Media workshop (450.00) (13,372.36) Contractual services (29,990.00) (29,990.00) Other direct costs 0.00 (561.41) Total Direct Costs Disbursed by WBG (435,911.68) (3,020,928.84) Total Project Disbursements (815,437.24) (86,243,825.82) Non-Project Disbursements Administrative fees and expenses(Note 3) (34,723.75) (2,847,860.74) Total Non-Project Disbursements (34,723.75) (2,847,860.74) Total Disbursements (850,160.99) (89,091,686.56) Excess of receipts over disbursements / (disbursements over receipts) (802,709.87) 21,801,729.15 Fund Balance Beginning of period 22,604,439.02 0.00 End of period 21,801,729.15 21,801,729.15 Fund balance consists of Share in pooled cash and investments 21,801,729.15 Undisbursed Commitments as of 04/19/2021 (Note 4) 14,510,111.15 Page 1 of 5 TF504001 80 PID MDTF Semi-annual Report FY21 WORLD BANK GROUP Partnership for Infrastructure Development in the West Bank and Gaza Multi Donor Trust Fund (WORLD BANK REFERENCE 71898) - Multi Donor Fund UNAUDITED TRUST FUNDS FINANCIAL REPORT Status Beneficiary VPU/Div TF Hierarchy TTL Name Active WEST BANK& GAZA MNCA4 Trustee Account Mr Ivo G.P. Imparato Contribution details by Donor 07/01/2020 06/04/2012 Donor Currency to (date of inception) to 12/31/2020 12/31/2020 CROATIA MINISTRY OF FOREIGN AND EUROPEAN AFFAIRS USD 0.00 200,000.00 DANISH MINISTRY OF FOREIGN AFFAIRS (DANIDA) DKK 0.00 220,000,000.00 FINLAND - MINISTRY FOR FOREIGN AFFAIRS EUR 0.00 8,650,000.00 FRANCE - AGENCE FRANCAISE DE DEVELOPPEMENT EUR 0.00 3,500,000.00 NETHERLANDS-MINISTER OF FOREIGN AFFAIRS USD 0.00 4,000,000.00 NORWAY - MINISTRY OF FOREIGN AFFAIRS NOK 0.00 73,000,000.00 PORTUGAL - MINISTRY OF FOREIGN AFFAIRS EUR 0.00 150,000.00 SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION SEK 0.00 310,000,000.00 AGENCY (SIDA) Contribution paid-in details by Donor 07/01/2020 06/04/2012 06/04/2012 Donor Currency to (date of inception) (date of inception) 12/31/2020 to to 12/31/2020 12/31/2020 In USD Equivalent CROATIA MINISTRY OF FOREIGN AND USD 0.00 200,000.00 200,000.00 EUROPEAN AFFAIRS DANISH MINISTRY OF FOREIGN DKK 0.00 220,000,000.00 37,926,344.64 AFFAIRS (DANIDA) FINLAND - MINISTRY FOR FOREIGN EUR 0.00 8,650,000.00 10,600,228.95 AFFAIRS FRANCE - AGENCE FRANCAISE DE EUR 0.00 3,500,000.00 4,390,050.00 DEVELOPPEMENT NETHERLANDS-MINISTER OF FOREIGN USD 0.00 4,000,000.00 4,000,000.00 AFFAIRS NORWAY - MINISTRY OF FOREIGN NOK 0.00 73,000,000.00 9,772,212.86 AFFAIRS PORTUGAL - MINISTRY OF FOREIGN USD 0.00 182,835.00 182,835.00 AFFAIRS SWEDISH INTERNATIONAL SEK 0.00 310,000,000.00 40,272,159.01 DEVELOPMENT COOPERATION AGENCY (SIDA) Page 2 of 5 TF504001 81 PID MDTF Semi-annual Report FY21 WORLD BANK GROUP Partnership for Infrastructure Development in the West Bank and Gaza Multi Donor Trust Fund (WORLD BANK REFERENCE 71898) - Multi Donor Fund UNAUDITED TRUST FUNDS FINANCIAL REPORT Disbursement details by Grant 07/01/2020 06/04/2012 Grant Grant Name Executed Currenc Grant Amount to (date of inception) By y 12/31/2020 to 12/31/2020 TF014530 PID MDTF Program and Bank USD 700,000.00 10,216.30 676,476.68 TF Management Fund TF015756 Water Sector Capacity Recipient USD 2,852,451.80 0.00 2,852,451.80 Building co-financing fund TF016476 Second Municipal Recipient USD 25,799,059.71 0.00 25,799,059.71 Development project TF016501 Third Additional Recipient USD 5,000,000.00 0.00 5,000,000.00 Financing for the North Gaza Emergency Sewage Treatment Project TF017186 Gaza Sustainable Water Recipient USD 2,398,161.00 0.00 2,398,161.00 Supply Program : Additional Works TF017221 NGEST Solar Power Bank USD 149,832.36 0.00 149,832.36 Feasibility Study TF018268 Gaza Emergency Water Recipient USD 8,239,352.30 0.00 8,239,352.30 Supply and Sewage Systems Improvement Project Additional Financing TF018376 Southern West Bank Recipient USD 1,500,000.00 0.00 1,500,000.00 Solid Waste Management Project TF018378 GZ Emergency Recipient USD 11,999,000.59 0.00 11,999,000.59 Response AF MDP-2 TF019350 Water Sector Capacity Recipient USD 0.00 0.00 0.00 Building Fund TF0A1061 Second Municipal Recipient USD 6,899,292.76 0.00 6,899,292.76 Development Project - Additional Financing TF0A2807 Project Preparation Recipient USD 0.00 0.00 0.00 Grant for ESPIP TF0A3599 Local Government Bank USD 1,300,000.00 64,416.57 916,919.03 Sector Reform ASA TF0A4202 West Bank & Gaza Bank USD 2,000,000.00 161,032.79 1,557,946.92 Energy Sector Programmatic Technical Assistance TF0A4511 Local Governance and Recipient USD 13,000,000.00 0.00 11,499,999.33 Page 3 of 5 TF504001 82 PID MDTF Semi-annual Report FY21 WORLD BANK GROUP Partnership for Infrastructure Development in the West Bank and Gaza Multi Donor Trust Fund (WORLD BANK REFERENCE 71898) - Multi Donor Fund UNAUDITED TRUST FUNDS FINANCIAL REPORT Disbursement details by Grant 07/01/2020 06/04/2012 Grant Grant Name Executed Currenc Grant Amount to (date of inception) By y 12/31/2020 to 12/31/2020 Services Improvement Program (LGSIP) TF0A5078 West Bank Gaza Elec. Recipient USD 7,000,000.00 273,377.29 3,566,393.20 Sector Performance Improvement-ESPIP- P148600-PID MDTF TF0A7564 Water Security Bank USD 900,000.00 210,462.32 396,230.53 Technical Assistance TF0A9136 West Bank Gaza Elec. Recipient USD 7,000,000.00 106,148.27 606,148.27 Sector Performance Improvement-ESPIP- P148600-PID-MDTF- Additional Financing TF0B0101 MDP-3 Additional Recipient USD 5,000,000.00 0.00 2,863,038.02 Financing for Emergency Labor-intensive Gaza Municipal Services TF0B3584 Additional Finance: Recipient USD 1,250,000.00 0.00 0.00 Gaza Solid Waste Management RBF Project TF0B3943 PID MDTF PROGRAM Bank USD 500,000.00 24,507.45 24,507.45 MANAGEMENT AND ADMINISTRATION Notes: 1. This statement is prepared on the modified cash basis of accounting 2. Other costs (where applicable) represent all disbursements incurred prior to July 2000. 3. Administrative fees are generally collected from the trust fund in the same month in which contributions are received, however for administrative purposes, collection of fees may occur in the month following receipt of the contribution. 4. Amounts committed relate to the amounts yet to be disbursed for active and pending recipient executed grant agreements and the undisbursed balance of bank executed trust funds. 5. Investment income of this trust fund is credited to TF071898 ( Partnership for Infrastructure Development in the West Bank and Gaza Multi Donor Trust Fund ) in accordance with administration agreement(s) and hence forms part of the fund balance of this trust fund. 6. Where applicable, amounts displayed against "staff costs (including benefits)","Extended Term Consultants/Temporary costs (ETC/ETT)" costs & "Short Term Consultants/Temporary Costs (STC/STT)" costs include Page 4 of 5 TF504001 83 PID MDTF Semi-annual Report FY21 WORLD BANK GROUP Partnership for Infrastructure Development in the West Bank and Gaza Multi Donor Trust Fund (WORLD BANK REFERENCE 71898) - Multi Donor Fund UNAUDITED TRUST FUNDS FINANCIAL REPORT Notes: charges to cover the cost of benefits and general communication facilities and IT costs unless otherwise specified in the Administration Agreement for the Trust Fund. Page 5 of 5 TF504001 84 PID MDTF Semi-annual Report FY21 WORLD BANK GROUP Partnership for Infrastructure Development in the West Bank and Gaza Multi Donor Trust Fund - Parallel of TF071898 (WORLD BANK REFERENCE 72778) - Multi Donor Fund UNAUDITED TRUST FUNDS FINANCIAL REPORT Expressed in United States Dollars 07/01/2020 12/09/2016 to (date of inception) to 12/31/2020 12/31/2020 Receipts (Note 1) Cash Contributions 23,986,003.13 133,884,713.67 Investment Income (Note 5) 199,759.91 3,072,980.23 Total Receipts 24,185,763.04 136,957,693.90 Disbursements (Note 1) Project Disbursements Disbursements to Grantee (1,800,000.00) (19,525,829.46) Direct costs Disbursed by WBG Staff Costs (Incl. Benefits) (Note 6) (130,493.58) (604,048.99) ETC/ETT Costs (7,190.92) (10,505.56) STC/STT Costs (12,752.98) (243,870.87) Total Personnel Costs (150,437.48) (858,425.42) Travel expenses 0.00 (101,783.54) Media workshop 0.00 (3,466.43) Other direct costs 0.00 (1,386.38) Total Direct Costs Disbursed by WBG (150,437.48) (965,061.77) Total Project Disbursements (1,950,437.48) (20,490,891.23) Non-Project Disbursements Administrative fees and expenses(Note 3) (2,108,000.00) (5,207,999.96) Total Non-Project Disbursements (2,108,000.00) (5,207,999.96) Total Disbursements (4,058,437.48) (25,698,891.19) Excess of receipts over disbursements / (disbursements over receipts) 20,127,325.56 111,258,802.71 Fund Balance Beginning of period 91,131,477.15 0.00 End of period 111,258,802.72 111,258,802.72 Fund balance consists of Share in pooled cash and investments 111,258,802.72 Undisbursed Commitments as of 04/19/2021 (Note 4) 109,860,366.72 Page 1 of 4 TF504001 85 PID MDTF Semi-annual Report FY21 WORLD BANK GROUP Partnership for Infrastructure Development in the West Bank and Gaza Multi Donor Trust Fund - Parallel of TF071898 (WORLD BANK REFERENCE 72778) - Multi Donor Fund UNAUDITED TRUST FUNDS FINANCIAL REPORT Status Beneficiary VPU/Div TF Hierarchy TTL Name Active WEST BANK& GAZA MNCA4 Trustee Account Mr Ivo G.P. Imparato Contribution details by Donor 07/01/2020 12/09/2016 Donor Currency to (date of inception) to 12/31/2020 12/31/2020 AUSTRALIA-DEPARTMENT OF FOREIGN AFFAIRS AND AUD 0.00 10,000,000.00 TRADE DANISH MINISTRY OF FOREIGN AFFAIRS (DANIDA) DKK 0.00 140,000,000.00 FINLAND - MINISTRY FOR FOREIGN AFFAIRS EUR 0.00 2,300,000.00 NETHERLANDS-MINISTER OF FOREIGN AFFAIRS USD 0.00 10,100,000.00 NORWAY - MINISTRY OF FOREIGN AFFAIRS NOK 0.00 327,017,000.00 SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION SEK 0.00 318,000,000.00 AGENCY (SIDA) UNITED KINGDOM - FOREIGN, COMMONWEALTH AND GBP 0.00 38,000,000.00 DEVELOPMENT OFFICE Contribution paid-in details by Donor 07/01/2020 12/09/2016 12/09/2016 Donor Currency to (date of inception) (date of inception) 12/31/2020 to to 12/31/2020 12/31/2020 In USD Equivalent AUSTRALIA-DEPARTMENT OF FOREIGN AUD 0.00 10,000,000.00 6,834,000.00 AFFAIRS AND TRADE DANISH MINISTRY OF FOREIGN DKK 20,000,000.00 140,000,000.00 22,024,668.49 AFFAIRS (DANIDA) FINLAND - MINISTRY FOR FOREIGN EUR 0.00 2,300,000.00 2,446,510.00 AFFAIRS NETHERLANDS-MINISTER OF FOREIGN USD 3,300,000.00 6,200,000.00 6,200,000.00 AFFAIRS NORWAY - MINISTRY OF FOREIGN NOK 11,222,000.00 218,239,000.00 25,011,301.78 AFFAIRS SWEDISH INTERNATIONAL SEK 90,000,000.00 278,000,000.00 31,620,214.40 DEVELOPMENT COOPERATION AGENCY (SIDA) UNITED KINGDOM - FOREIGN, GBP 4,000,000.00 30,300,000.00 39,748,019.00 COMMONWEALTH AND DEVELOPMENT OFFICE Page 2 of 4 TF504001 86 PID MDTF Semi-annual Report FY21 WORLD BANK GROUP Partnership for Infrastructure Development in the West Bank and Gaza Multi Donor Trust Fund - Parallel of TF071898 (WORLD BANK REFERENCE 72778) - Multi Donor Fund UNAUDITED TRUST FUNDS FINANCIAL REPORT Disbursement details by Grant 07/01/2020 12/09/2016 Grant Grant Name Executed Currenc Grant Amount to (date of inception) By y 12/31/2020 to 12/31/2020 TF0A4947 Support to the Bank USD 2,000,000.00 78,820.10 893,444.39 Palestinian Land Sector TF0A6154 Municipal Development Recipient USD 20,000,000.00 0.00 15,625,829.46 Project III - PID MDTF TF0B0195 Support to the Bank USD 0.00 0.00 0.00 Palestinian Land Sector II TF0B0359 West Bank and Gaza Recipient USD 3,000,000.00 0.00 100,000.00 Real Estate Registration Project TF0B2334 Water Security Recipient USD 42,000,000.00 0.00 2,000,000.00 Development - Gaza Central Desalination Program TF0B2694 Gaza Wastewater Recipient USD 3,700,000.00 300,000.00 300,000.00 Management Sustainability Project TF0B2962 Sustained Service Bank USD 400,000.00 71,617.38 71,617.38 Delivery through Improved O&M of Infrastructure in West Bank and Gaza TF0B3015 PID-MDTF ASPIRE Recipient USD 49,000,000.00 1,500,000.00 1,500,000.00 MPA Phase 1 P170928 WB&G TF0B4273 Support to the Bank USD 500,000.00 0.00 0.00 Palestinian Land Sector III Notes: 1. This statement is prepared on the modified cash basis of accounting 2. Other costs (where applicable) represent all disbursements incurred prior to July 2000. 3.Administrative fees are generally collected from the trust fund when commitment is made to recipient. 4. Amounts committed relate to the amounts yet to be disbursed for active and pending recipient executed grant agreements and the undisbursed balance of bank executed trust funds. 5. Investment income of this trust fund is credited to TF072778 ( Partnership for Infrastructure Development in the West Bank and Gaza Multi Donor Trust Fund - Parallel of TF071898 ) in accordance with administration agreement(s) and hence forms part of the fund balance of this trust fund. 6. Where applicable, amounts displayed against "staff costs (including benefits)","Extended Term Page 3 of 4 TF504001 87 PID MDTF Semi-annual Report FY21 WORLD BANK GROUP Partnership for Infrastructure Development in the West Bank and Gaza Multi Donor Trust Fund - Parallel of TF071898 (WORLD BANK REFERENCE 72778) - Multi Donor Fund UNAUDITED TRUST FUNDS FINANCIAL REPORT Notes: Consultants/Temporary costs (ETC/ETT)" costs & "Short Term Consultants/Temporary Costs (STC/STT)" costs include charges to cover the cost of benefits and general communication facilities and IT costs unless otherwise specified in the Administration Agreement for the Trust Fund. Page 4 of 4 TF504001 88 THE WORLD BANK GROUP www.worldbank.org/ps