Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Second Municipal Development Project (P127163) GZ-Second Municipal Development Project (P127163) MIDDLE EAST AND NORTH AFRICA | West Bank and Gaza | Social, Urban, Rural and Resilience Global Practice Global Practice | Special Financing | Investment Project Financing | FY 2013 | Seq No: 10 | ARCHIVED on 27-Oct-2017 | ISR28182 | Implementing Agencies: Palestine Liberation Organization, Municipal Development and Lending Fund (MDLF) Key Dates Key Project Dates Bank Approval Date:23-May-2013 Effectiveness Date:22-Aug-2013 Planned Mid Term Review Date:30-Nov-2015 Actual Mid-Term Review Date:12-Oct-2015 Original Closing Date:28-Feb-2018 Revised Closing Date:28-Feb-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to improve the Recipient’s municipal management practices for better municipal transparency andservices delivery. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured) The Revised Objective of the Project is to improve the Recipient’s municipal management practices for better municipal transparency and service delivery, and to restore priority municipal services following the conflict in Gaza.” Components Name Municipal Grants for Capital Investments:(Cost $13.45 M) Support to Municipal Innovations and Efficiency:(Cost $0.77 M) Capacity Building for Municipalities and MDLF:(Cost $0.60 M) Project Implementation Support and Management Costs:(Cost $2.08 M) Gaza Municipal Emergency Grants:(Cost $13.95 M) Overall Ratings Name Previous Rating Current Rating 10/27/2017 Public Disclosure Copy Page 1 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Second Municipal Development Project (P127163) Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Moderate  Moderate Implementation Status and Key Decisions This ISR covers the update on the progress of the Second Municipal Development Project (MDP2) based on the last implementation support mission conducted in September 2017. The MDP2 continues to progress toward the achievement of the Project Development Objective (PDO). Municipalities continue to perform well with regards to performance ranking, number of beneficiaries from rehabilitated/established roads, and establishment of municipal service quality standards. Furthermore, the program activities financed by the World Bank and co-/parallel financing partners, amounting to approximately 90% of the total program budget, are also performing well. Specifically, infrastructure investments under component 1 are advancing and are expected to be completed prior to the project closing date, and the target for component 2 has already been achieved. To date, all of the end targets for municipalities’ advancement in performance rankings have been fully met and the capacity development packages under component 2 are on track. In addition, Development Partners (DPs) will closely follow up with Municipal Development and Lending Fund to overcome any delays in the entry of import materials to Gaza that might impede the implementation of projects under component 5. The draft report on the results of the evaluation survey of municipalities' performance during cycle 2 is currently under review by MDLF and will be shared with DPs soon. The survey has successfully established the baseline performance indicator values for the proposed Third Municipal Development Project (MDP3) and updated the infrastructure database to be used as the proxy to calculate the municipal needs under the grant allocation formula of MDP3. The government counterpart contributions to the MDP2 were received, which will enable the project to complete project activities as originally planned. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  High  High Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Low  Low Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Moderate  Moderate Environment and Social  --  Moderate  Moderate Stakeholders  --  Moderate  Moderate Other  --  Moderate  Moderate Overall  --  Moderate  Moderate Results Project Development Objective Indicators 10/27/2017 Public Disclosure Copy Page 2 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Second Municipal Development Project (P127163) PHINDPDOTBL  Number of municipalities that graduate up the performance category in which they are currently classified, by the end of MDP- II (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 80.00 80.00 Date 28-Mar-2013 27-Mar-2017 18-Sep-2017 28-Feb-2018 PHINDPDOTBL  Number of municipalities that graduate to A ranking, by the end of MDP-II (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 2.00 2.00 Date 28-Mar-2013 27-Mar-2017 18-Sep-2017 28-Feb-2018 PHINDPDOTBL  Number of Municipalities that graduate to B ranking (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 54.00 77.00 50.00 Date 28-Mar-2013 27-Mar-2017 18-Sep-2017 28-Feb-2018 PHINDPDOTBL  Affected population in Gaza with access to restored municipal services (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,147,133.00 1,147,133.00 1,000,000.00 Date 15-Oct-2014 27-Mar-2017 18-Sep-2017 28-Feb-2018 PHINDPDOTBL  Percentage of municipalities that apply social accountability measures, specifically, at least two public disclosure mechanisms, bythe end of MDP-II. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 68.00 94.00 81.00 80.00 10/27/2017 Public Disclosure Copy Page 3 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Second Municipal Development Project (P127163) Date 28-Feb-2013 27-Mar-2017 18-Sep-2017 28-Feb-2018 Comments 117 out of 144 municipalities had used at least two disclosure methods. PHINDPDOTBL  Municipalities publically disclosing external audit reports with minimum standards, and with unqualified opinion (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 72.00 76.00 55.00 PHINDPDOTBL  Municipalities publically disclosing participatory SDIP execution and updates. (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 129.00 144.00 100.00 PHINDPDOTBL  Municipalities establishing service quality standards for tracking in Citizen Service Support Centers (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 22.00 22.00 40.00 PHINDPDOTBL  Percentage of investments financed under the Project that are operational and in an adequate state of usability, according to technical audits. (Percentage, Custom) 10/27/2017 Public Disclosure Copy Page 4 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Second Municipal Development Project (P127163) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 93.00 93.00 90.00 Date 28-Feb-2013 27-Mar-2017 18-Sep-2017 28-Feb-2018 PHINDPDOTBL  Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,282,886.00 3,282,886.00 2,000,000.00 Date 28-Mar-2013 27-Mar-2017 18-Sep-2017 28-Feb-2018 PHINDPDOTBL  Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 49.00 49.00 49.00 PHINDPDOTBL  Beneficiaries from roads established/rehabilitated, by the end of MDP-II (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,470,313.00 2,532,851.00 1,200,000.00 Date 28-Mar-2013 27-Mar-2017 18-Sep-2017 28-Feb-2018 Overall Comments Intermediate Results Indicators 10/27/2017 Public Disclosure Copy Page 5 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Second Municipal Development Project (P127163) PHINDIRITBL  Number of people in urban areas provided with access to all-season roads within a 500 meter range under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 863,746.00 863,746.00 260,000.00 Date 28-Mar-2013 27-Mar-2017 18-Sep-2017 28-Feb-2018 PHINDIRITBL  Share of identified priority damages repaired by Gaza municipalities (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 33.00 34.50 30.00 Date 15-Oct-2014 27-Mar-2017 18-Sep-2017 28-Feb-2018 PHINDIRITBL  Roads rehabilitated, by the end of MDP-II (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 349.00 402.00 350.00 Date 28-Mar-2013 27-Mar-2017 18-Sep-2017 28-Feb-2018 PHINDIRITBL  Number of municipalities that have succeeded in piloting one of the following innovative ideas under Component 2 (renewable energy, E-Municipality, and Local Economic Development) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 22.00 25.00 8.00 Date 28-Feb-2013 27-Mar-2017 18-Sep-2017 28-Feb-2018 10/27/2017 Public Disclosure Copy Page 6 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Second Municipal Development Project (P127163) PHINDIRITBL  Direct Beneficiaries from social infrastructure projects implemented in merged municipalities (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 113,731.00 113,731.00 40,000.00 Date 28-Feb-2013 27-Mar-2017 18-Sep-2017 28-Feb-2018 PHINDIRITBL  Number of municipalities that have updated their fixed assets and valuation database (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 122.00 132.00 100.00 Date 28-Feb-2013 27-Mar-2017 18-Sep-2017 28-Feb-2018 PHINDIRITBL  Number of municipalities that have updated their Strategic Development and Investment Plans (SDIPs) through applying participatory approach (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 115.00 125.00 90.00 Date 28-Feb-2013 27-Mar-2017 18-Sep-2017 28-Feb-2018 PHINDIRITBL  Number of municipalities where the Operantions and Maintenance software is rolled out by the end of MDP-II. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 28-Feb-2013 27-Mar-2017 18-Sep-2017 28-Feb-2018 10/27/2017 Public Disclosure Copy Page 7 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Second Municipal Development Project (P127163) PHINDIRITBL  Percentage of municipalities that recorded at least 20% reduction in processing time for at least two of the defined set of services in Citizen Service Centers. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 90.00 90.00 100.00 Date 28-Feb-2013 27-Mar-2017 18-Sep-2017 28-Feb-2018 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P127163 TF-14164 Effective USD 10.00 10.00 0.00 10.00 0.00 100% P127163 TF-16476 Effective USD 25.80 25.80 0.00 25.80 0.00 100% P127163 TF-18184 Effective USD 3.00 3.00 0.00 2.95 0.05 98% P127163 TF-18378 Effective USD 12.00 12.00 0.00 10.99 1.01 92% P127163 TF-A1061 Effective USD 6.90 6.90 0.00 6.88 0.02 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P127163 TF-14164 Effective 07-Jul-2013 07-Jul-2013 22-Aug-2013 28-Feb-2017 28-Feb-2018 P127163 TF-16476 Effective 26-Mar-2014 26-Mar-2014 17-Apr-2014 30-Jun-2017 28-Feb-2018 P127163 TF-18184 Effective 07-Dec-2014 07-Dec-2014 29-Jan-2015 28-Feb-2018 28-Feb-2018 P127163 TF-18378 Effective 07-Dec-2014 07-Dec-2014 29-Jan-2015 28-Feb-2018 28-Feb-2018 P127163 TF-A1061 Effective 14-Apr-2016 14-Apr-2016 26-Oct-2016 28-Feb-2018 28-Feb-2018 Cumulative Disbursements 10/27/2017 Public Disclosure Copy Page 8 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Second Municipal Development Project (P127163) Restructuring History Level 2 Approved on 26-May-2017 Related Project(s) P152523-GZ Emergency Response Second Municipal Development Project AF ,P155268-GZ-Second Municipal Development Project AF 10/27/2017 Public Disclosure Copy Page 9 of 9