The World Bank Implementation Status & Results Report GZ-Third Municipal Development Project (P159258) GZ-Third Municipal Development Project (P159258) MIDDLE EAST AND NORTH AFRICA | West Bank and Gaza | Urban, Resilience and Land Global Practice | Special Financing | Investment Project Financing | FY 2018 | Seq No: 5 | ARCHIVED on 20-Feb-2020 | ISR40441 | Implementing Agencies: Municipal Development Lending Fund (MDLF), Palestine Liberation Organization (For The Benefit of the Palestinian Authority) Key Dates Key Project Dates Bank Approval Date: 21-Jul-2017 Effectiveness Date: 14-Dec-2017 Planned Mid Term Review Date: 24-Feb-2020 Actual Mid-Term Review Date: 19-Jan-2020 Original Closing Date: 28-Feb-2022 Revised Closing Date: 28-Feb-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) is to enhance the institutional capacity of municipalities in the West Bank and Gaza for more accountable and sustainable service delivery. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Municipal Performance and Service Delivery Capacity Development Municipal Partnership Projects Project Implementation Support and Management Cost Emergency Labor-intensive Gaza Municipal Services Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions At mid-term, the project is highly relevant to the current development priorities of the Palestinian Authority (PA). It supports the operationalization of Pillar 3 of the Palestinian National Policy Agenda 2017-2022, which lays out the set of reforms needed to develop responsive local governments, improve services to citizens, strengthen accountability and transparency, and ensure effective and efficient management of available resources. The project continues to be on track in meeting its Project Development Objective (PDO) of enhancing the institutional capacity of municipalities in West Bank and Gaza for more accountable and sustained service delivery. Based on the 2019 Municipal Ranking Survey, 61 municipalities have moved up one rank in the performance assessment system, exceeding the Mid Term Review (MTR) target of 50 municipalities. Moreover, a total of 2/20/2020 Page 1 of 8 The World Bank Implementation Status & Results Report GZ-Third Municipal Development Project (P159258) 298 subprojects are now completed and are already providing benefits to the residents in participating municipalities. The 2019 Beneficiary Survey results revealed that 85% of the beneficiaries are satisfied with the subprojects executed under the Third Municipal Development Project (MDP3). The mission will continue to monitor progress in the program interventions to enable more participating municipalities to move up the ranking, as well as to work with the Municipal Development and Lending Fund (MDLF) to improve choice of subprojects by municipalities and therefore create greater MDP3 impact to the communities. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic High High High Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary High Substantial Substantial Environment and Social Moderate Substantial Moderate Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Strengthened municipal institutions IN00799902 ►Number of municipalities that move up one rank in the performance assessment system (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 61.00 100.00 Date 01-Sep-2017 17-Jul-2019 20-Jan-2020 28-Feb-2022 The PDO indicator measures number of municipalities that move up one rank in performance. The ranking system has 10 ranks based on 4 categories (D, C, B and A) with 21 KPIs from D to A++. Comments: The project exceeded its mid-term target of 50 municipalities. The mission expects that the end-of-project target will be reached under current project design. 2/20/2020 Page 2 of 8 The World Bank Implementation Status & Results Report GZ-Third Municipal Development Project (P159258) Accountable and responsive service delivery IN00799903 ►People provided with improved urban living conditions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,969,461.00 1,969,461.00 500,000.00 Date 01-Sep-2017 17-Jul-2019 20-Jan-2020 28-Feb-2022 The Corporate Result indicator (CRI) measures the cumulative number of people living in urban areas that have been provided with access to improved services, housing, tenure, neighborhoods, public spaces, parks, resilience, and/or urban environmental conditions, through the direct interventions of operations supported by the World Bank. Its a new CRI and will added to the WB Portal. Target of 500.000 will be Comments: reviewed in 2019. The figure needs to be adjusted to take into account the proposed revisions in the methodology for counting beneficiaries that were agreed during the Mid-term Review. The value will be provided in the next ISR. The mission expects that the end-of-project target will be reached under current project design. IN00799905 Female beneficiaries (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 955,189.00 250,000.00 Date 01-Sep-2017 17-Jul-2019 20-Jan-2020 28-Feb-2022 IN00799926 ►Municipalities with public disclosure of executed budget and executed SDIP (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 140.00 100.00 Date 01-Sep-2017 17-Jul-2019 20-Jan-2020 28-Feb-2022 The disclosure will take place on social media platform, (Facebook), municipal bulletin board, MoLG's homepage and/or other platform. From year three (2019) the readable format from MoLG will be used, once endorsed by MoLG. Comments: The project exceeded its mid-term target of 50 municipalities. The mission expects that the end-of-project target will be reached under current project design. Financially sustainable municipalities IN00799904 ►Number of municipalities with operational and enterprise surplus and no increase in arrears (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 40.00 50.00 61.00 80.00 Date 01-Sep-2017 17-Jul-2019 20-Jan-2020 28-Feb-2022 This indicators will measure municipalities that have surplus in their operational and enterprise account Comments: and no increase in arrears from last year. Municipalities that fulfill this criteria have not increased net debt to suppliers of water and electricity. Baseline will be updated in June 2017. 2/20/2020 Page 3 of 8 The World Bank Implementation Status & Results Report GZ-Third Municipal Development Project (P159258) The project achieved its mid-term target of 60 municipalities. The mission expects that the end-of-project target will be reached under current project design. Intermediate Results Indicators by Components Municipal Performance and Service Delivery IN00799927 ►Number of municipalities completing sub projects within each cycle (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 108.00 140.00 Date 01-Sep-2017 17-Jul-2019 20-Jan-2020 28-Feb-2022 The indicator will measure the number of municipalities that complete sub projects within each of the two budget cycles: 1 January 2018 to 31 December 2019 and 1 January 2020 to 31 December 2021. Comments: The project exceeded its mid-term target of 100 municipalities. IN00799932 ►Percentage of investments financed under the project in adequate technical state and used as intended (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 85.00 80.00 Date 01-Sep-2017 17-Jul-2019 20-Jan-2020 28-Feb-2022 The indicator will measure the percentage of investments with acceptable standard and acceptable usage. Measured as “adequate state of usability” according to MDLF assessment of 5-6 % of executed projects. Comments: The baseline will be update in June 2017. The project achieved its mid-term target of 80%. IN00799935 ►% of beneficiaries satisfied with municipal sub projects executed under MDP 3 (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 85.00 80.00 Date 01-Sep-2017 17-Jul-2019 20-Jan-2020 28-Feb-2022 The indicator will measure the % of beneficiaries that are satisfied with municipal sub-projects. The baseline will be updated in July 2017. It will be gender disaggregated. Comments: The project exceeded its mid-term target of 70%. IN00799936 ►Number of municipalities graduated to category A (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 6.00 16.00 15.00 Date 01-Sep-2017 17-Jul-2019 20-Jan-2020 28-Feb-2022 2/20/2020 Page 4 of 8 The World Bank Implementation Status & Results Report GZ-Third Municipal Development Project (P159258) The indicator will measure number of municipalities that graduate to category A the highest category in the performance system. It is measured by the project's performance assessment system to measure municipal performance from category D (the lowest) to A the highest. Baseline will be updated in June Comments: 2017. The project exceeded its mid-term target of 10 municipalities IN00799938 ►Number of municipalities with yearly increase in revenues collected by the municipality (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 50.00 126.00 120.00 Date 01-Sep-2017 17-Jul-2019 20-Jan-2020 28-Feb-2022 The indicator will measure the number of municipalities that increase the revenues collected by the municipality from year to year. It will not cover revenues collected by Ministry of Finance e.g. property Comments: taxation and transportation tax. The project exceeded its mid-term target of 85 municipalities. IN00799940 ►Number of municipalities with functional complaint system (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 22.00 22.00 113.00 100.00 Date 01-Sep-2017 17-Jul-2019 20-Jan-2020 28-Feb-2022 The indicator will measure that a functional municipal complaint system exists in 2021 following National guidelines. Functional municipal complaints system will include ability to produce data on grievances by type and by level of resolution. For baseline and in 2019 the indicator will only measure that the complaint Comments: system exists in Citizen Service Centers. The project exceeded its mid-term target of 44 municipalities. Capacity Development IN00799928 ►Road Map for MDLF as Lending Intermediary consulted with relevant stakeholders (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Sep-2017 17-Jul-2019 20-Jan-2020 28-Feb-2022 A TA is supporting the development of a Road Map for MDLF's transformation into a lending intermediary for municipal borrowing. The Road Map shall be consulted with relevant stakeholders in a seminar or similar. A TA is supporting the development of a Road Map for MDLF's transformation into a lending intermediary Comments: for municipal borrowing. A draft report was prepared and shared with Development Partners. MDLF will conduct a series of stakeholder consultation workshop to discuss the draft Roadmap, after which the target is expected to be achieved. IN00799933 ►Municipal audit standard developed (Yes/No, Custom) 2/20/2020 Page 5 of 8 The World Bank Implementation Status & Results Report GZ-Third Municipal Development Project (P159258) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 01-Sep-2017 17-Jul-2019 20-Jan-2020 28-Feb-2022 MoLG develops standards for how external municipal audits shall be carried out. Comments: This activity was carried out by GIZ through a project directly supporting MoLG. Municipal Partnership Projects IN00799929 ►Number of municipalities reporting enhanced capacity to engage with private sector for municipal service delivery and/or local economic development (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 25.00 Date 01-Sep-2017 17-Jul-2019 20-Jan-2020 28-Feb-2022 The indicator will measure the number of municipalities that reports enhanced capacity to engage with private sector for municipal service delivery and/or local economic development following concrete actions/TA from MDP 3. Consultancy services for the provision of assistance to municipalities in developing local economic development plans is ongoing. The PPP Diagnostic Study is already completed. The study revealed that Comments: there are structural weaknesses and gaps in the enabling environment for PPP at the central and local government level. MDLF will conduct a detailed review the activities and expected outputs of Component 3 to assess if the planned activities will result in addressing these gaps and therefore make the project interventions relevant and useful. Project Implementation Support and Management Cost IN00799930 ►Percentage of municipalities satisfied with MDLF support (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 75.00 75.00 89.00 95.00 Date 01-Sep-2017 17-Jul-2019 20-Jan-2020 28-Feb-2022 The indicator will measure the number of municipalities that are satisfied with the support received from MDLF. The baseline will be updated in June 2017. Comments: The project achieved its mid-term target of 85%. Emergency Labor-intensive Gaza Municipal Services IN00799931 ►Number of subprojects completed by Gaza municipalities under the Additional Financing (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 17-Apr-2019 17-Jul-2019 20-Jan-2020 28-Feb-2022 2/20/2020 Page 6 of 8 The World Bank Implementation Status & Results Report GZ-Third Municipal Development Project (P159258) The component supporting this indicator was added through AF/restructuring in September 2019. There is no progress reported yet for this new indicator. However, the implementation of activities is on track. MDLF and the 25 Gaza municipalities are already in the advanced preparation phase. The municipalities Comments: have already prepared O&M plans and have identified 270 O&M subprojects for implementation and likewise selected 170 development subprojects from their SDIP. MDLF is currently appraising 52% of the total number of subprojects. IN00799934 ►Number of temporary jobs created in Gaza by the Additional Financing (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5,000.00 Date 17-Apr-2019 17-Jul-2019 20-Jan-2020 28-Feb-2022 The MDLF-Gaza generated a total of 170 development subprojects and 270 O&M subprojects under Component 5. These subprojects are expected to generate 5,000 jobs based on the computed Comments: labor inputs. Around 52% of the subprojects are currently under appraisal. IN00799937 Female beneficiaries (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 750.00 Date 17-Apr-2019 17-Jul-2019 20-Jan-2020 28-Feb-2022 IN00799939 ►Number of Gaza municipalities successfully implementing an O&M activity (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 25.00 Date 17-Apr-2019 17-Jul-2019 20-Jan-2020 28-Feb-2022 The municipalities have already prepared O&M plans and have identified 270 O&M subprojects for Comments: implementation. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P159258 TF-A4800 Effective USD 16.00 16.00 0.00 8.00 8.00 50% P159258 TF-A6154 Effective USD 20.00 20.00 0.00 11.04 8.96 55% P159258 TF-A8699 Effective USD 10.00 10.00 0.00 0.00 10.00 0% 2/20/2020 Page 7 of 8 The World Bank Implementation Status & Results Report GZ-Third Municipal Development Project (P159258) P159258 TF-B0101 Effective USD 5.00 5.00 0.00 0.00 5.00 0% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P159258 TF-A4800 Effective 21-Jul-2017 18-Sep-2017 14-Dec-2017 28-Feb-2022 28-Feb-2022 P159258 TF-A6154 Effective 27-Nov-2017 27-Nov-2017 21-Dec-2017 28-Feb-2022 28-Feb-2022 P159258 TF-A8699 Effective 23-May-2019 17-Jun-2019 02-Sep-2019 28-Feb-2022 28-Feb-2022 P159258 TF-B0101 Effective 23-May-2019 17-Jun-2019 02-Sep-2019 28-Feb-2022 28-Feb-2022 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) P168544-Additional Financing for the Third Municipal Development Project 2/20/2020 Page 8 of 8