Palestinian Partnership for Infrastructure Trust Fund

The development objective of the Partnership for Infrastructure Development Multi-Donor Trust Fund (PID MDTF) is to improve the coverage, quality, and sustainability of infrastructure in the WB&G through financial and Technical Assistance (TA) to the PA for infrastructure development, related capacity building, and institutional development in the water, urban development, and energy sectors. The design of the program is intended to support the core principles of sustainability, partnership, client-driven ownership, harmonization, and knowledge building.

The multi-donor programmatic TF aims to improve aid efficiency by consolidation under a single fund using the WB’s standardized set of financial and project management tools and procedures. The TF provides a fiduciary instrument to streamline financing by Development Partners (DPs) of projects and programs defined within the context of the Bank’s Assistance Strategy (AS) for WB&G. As such, the PID is open, programmatic, and multi-donor instrument. The TF co-finances ongoing activities in the water, urban, and energy sectors, and supports both Recipient-executed and Bank-executed activities.  

The TF provides financing for infrastructure projects and programs, and analytical and advisory activities that the WB is supporting in the mentioned sectors. The operations under the TF continues the Bank’s support for the PA’s strategic long-term plans for development and are aligned with the pillars of the WB’s Assistance Strategy FY18-21, namely:  Pillar 1: support to reforms essential to the emergences of private sector activity; Pillar 2: identification, structuring and financing of transactions, and providing mitigation of risks and blended finance essential to their realization; and Pillar 3: address the needs of the vulnerable and strengthen institutions for improved citizen-centered service delivery. 

The key pillar of the WB’s new strategy to “strengthen institutions’ accountability and capability for building public trust” aligns closely with the PA’s National Policy Agenda (NPA) 2017-2022 Reform Pillar, including the policies: Responsive Local Government, Improving Services to Citizens, Strengthening Accountability and Transparency, and Effective and Efficient Public Financial Management.

Last Updated: May 13, 2019

The PID MDTF is comprised of three sectoral windows for Recipient-executed co-financing and TA activities, a window for Recipient-executed project supervision, a window for Bank-executed Analytical and Advisory Services, and a window for Program and TF management. Disbursing funds are established under each of the windows for every discrete activity/ project that the Fund supports. An update on all disbursing funds for projects with commitments for co-financing and a summary description for each can be found in the following and is described in detail in the PID MDTF annual reports.

In 2017 a parallel TF to the PID MDTF main account was established with Parent TF number TF072778 in order to account for the newly applied fee structure.

Trust Fund Management Structure

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[1] The previous PA’s National Development Plans (NDPs) and the current National Policy Agenda.

[2] Draft Assistance Strategy FY 18-21 for West Bank and Gaza, The World Bank Group. 

Last Updated: May 13, 2019

The United Kingdom’s Department for International Development (DFID) joined the PID MDTF in December 2018, bringing the total number of active donors to nine. In addition to DFID, donors contributing to the PID MDTF include the governments of Croatia, Denmark, Finland, France, Netherlands, Norway, Portugal, and Sweden. 

DFID made an initial contribution of GBP18 million (US$23.47 million equivalent) to the PID MDTF. In December 2018, Sweden replenished the trust fund with SEK90 million (US$9.70 million equivalent), and Norway with an amount of NOK73 million (US$8.51 million equivalent). Total new contributions sum up to US$41.68 million equivalent, bringing the total pledges of the PID MDTF to US$186.4 million.

PID MDTF Parallel Parent Trust Funds

TF071898

Approval

June 6, 2012

Activation

July 20, 2012

End of disbursement

December 31, 2022

TF072778

Approval

December 9, 2016

Activation

December 15, 2016

End of disbursement

December 31, 2022

Financial Contributions as of March 31, 2019

March-19

 Pledged to Date - TOTALS

 Contributors:

 Currency

 Pledged 

 Paid in to Date

 Receivables

 Pledge Currency

 US$

 Pledge Currency

 US$

 Pledge Currency 

 US$

Croatia  

 USD

         200,000

$200,000

200,000

200,000

                  -  

                   -  

 Sweden

 SEK

  433,000,000

54,175,694

  433,000,000

54,175,694

                  -  

 

 Denmark 

 DKK

  360,000,000

59,814,205

  340,000,000

56,762,238

  20,000,000

3,051,967

 Finland

 Euro

    10,950,000

13,046,739

    10,950,000

13,046,739

                  -  

                   -  

 France

 Euro

      3,500,000

4,390,050

      3,500,000

4,390,050

                  -  

                   -  

 Netherlands

 US$

      4,000,000

4,000,000

      4,000,000

4,000,000

                  -  

                   -  

 Norway

 NOK

  220,017,000

27,134,297

  217,539,264

26,840,921

    2,477,736

293,376

 Portugal

 Euro

         150,000

182,835

         150,000

182,835

                  -  

                   -  

United Kingdom DFID

 GBP

    18,000,000

23,477,564

      2,800,000

3,514,644

  15,200,000

  19,962,920

 US$ Totals:

 

$186,421,383

 

$163,113,120

 

$23,308,263

Last Updated: May 13, 2019

URBAN DEVELOPMENT

Project Development Objective: MDP-3 aims at enhancing the institutional capacity of municipalities in the West Bank and Gaza for more accountable and sustainable service delivery.

MDP-3 will strengthen the capacity of the Municipal Development Lending Fund (MDLF) and Ministry of Local Government (MoLG) to enhance sustainability of the municipal sector. The project is rated as Satisfactory in its progress towards achievement of Project Development Objective and Overall Implementation Progress (IP)

The project has three main components:

- Component 1: Municipal performance and service delivery

Under this component, the project provides basic funding in grants for eligible municipalities for infrastructure development based on needs and equity, and performance grants as an incentive for eligible municipalities to improve their performance. 

- Component 2: Capacity development to municipalities and Palestinian institutions

This component provides capacity development support to municipalities and national level institutions, namely, the MDLF and the MoLG. MDLF will provide (i) basic capacity development support to participating municipalities; and (ii) targeted capacity development support to strengthen creditworthiness of highly performing municipalities based on the criteria identified in the project’s operations manual.

- Component 3: Municipal partnership projects 

This component will provide technical assistance and project financing to municipalities to: (i) engage more effectively with the private sector, and (ii) work across administrative boundaries to develop joint and/or innovative investments for municipal service delivery and local economic development. 

Project Development Objective: LGSIP aims at strengthening the local government financing system and improving local service delivery in the villages targeted by the Program. 

LGSIP would use a Program for Results (PforR) financing instrument to leverage financial incentives to achieve results and mainstream reforms into the PA systems. LGSIP would focus on two results areas to strengthen the (i) local government financing system; and (ii) institutional systems for improved service delivery in villages. Through this new approach LGSIP would achieve a sub-set of results under these two results areas, making Program financing contingent on the achievement of specific Disbursement Linked Indicators (DLIs), which would trigger positive responses on needed reforms in the sector. The Program encompasses three primary activities based on the needs identified by the PA: (a) annual capital grants to village councils for delivering local services reflecting citizens’ priorities; (b) conditional capital grants for incentivizing joint investments in larger scale infrastructure; and (c) Capacity support for strengthening local governance institutions. 

The project is rated as Satisfactory in its progress towards achievement of Project Development Objective and Overall Implementation Progress (IP)

Project Development Objective: GSWMP aims at improving solid waste management services in the Gaza Strip by providing more efficient, environmentally and socially sound waste management systems. 

The GSWMP finances construction of a sanitary landfill in the southern region of the Gaza Strip with the capacity to serve the three southern governorates until the year 2025. This major construction effort is being implemented in phases on an overall area of 472 dunams (47.2 ha.) with immediate land area needed for the first two cells of 10 ha. The new facility will be equipped to operate at a high standard and it will be complemented by a system of solid waste transfer stations in each governorate area in addition to comprehensive capacity building program to improve service provision at the different stages of solid waste management, including the supply of new solid waste collection vehicles to the newly expanded Joint Service Council of the Khan Younis, Rafah and the Middle Governorate (JSC-KRM) and its member municipalities, accompanied by institutional strengthening measures and training. The project also finances studies and investments in recycling and resource recovery to encourage private sector participation citizen engagement through broad public outreach and public awareness activities. 

The project is rated as Moderately Satisfactory in its progress towards achievement of its Project Development Objective and Overall Implementation Progress (IP)

WATER

Currently, there are no ongoing water sector investment operations under implementation with co-financing from the PID MDTF. A series of projects have closed between December 2017 to June 2018: (i) the Water Sector Capacity Building Project (WSCBP); (ii) Water Supply and Sewage Systems Improvement Project (WSSSIP); (iii) North Gaza Emergency Sewage Treatment (NGEST) project; and (iv) the Gaza Sustainable Water Supply Program (GSWSP). All projects closed with a rating of Moderately Satisfactory or Satisfactory. 

A new investment operation is currently under preparation, building on the achievements in the sector.  

Project Development Objective: the proposed project would aim at improving quality of water supply services in the project areas; and strengthen the capacity of selected institutions. 

Project Components:

- Component 1: Improved Supply of Water in Gaza 

To address the immediate needs for improved quality of water supply in the project area, this component would fund a system of infrastructure investments that will allow bulk water supplied from various sources (brackish ground water, desalinated water and water purchased from Israel) to be blended to acceptable WHO standards and subsequently conveyed to a system of distribution reservoirs and then on into the retail water distribution network.  

- Component 2: Capacity Building and Performance Improvements of Selected Institutions 

This component is designed primarily to address the urgent needs to improve water supply quality and quantity in Gaza by providing involved institutions with the necessary capacity to ensure basic elements of sustainability of their operations and assets. 

- Component 3:  Project Management and Implementation Support 

The PWA will establish a Project Coordination and Technical Assistance Unit (PCU) to support and coordinate the project implementation and reporting. The PCU would employ, and the project would fund, skilled staff for management, procurement, financial, environment, social and technical tasks with experience in WB operations and/ or the water sector. The PCU would be envisioned to evolve into the future “National Water Company”.

The component would finance operating costs specific to the project. Additionally, this component would support management of material entry to Gaza. 

ENERGY

Project Development Objective:  ESPIP aims at improving operational performance of electricity sector institutions and pilot a new business model for solar energy in Gaza. 

ESPIP has supported the Palestinian Electricity Transmission Company Ltd. (PETL) to 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 on the financial sustainability of the sector. ESPIP is supporting the Palestinian Energy and National Resources Authority (PENRA) in its efforts to roll-out Revenue Protection Programs (RPPs) for the Distribution Companies (DISCOs) and establishing the Gaza Rooftop Solar Revolving Fund.

The project is rated as Satisfactory in its progress towards achievement of its Project Development Objective and Overall Implementation Progress (IP)

Last Updated: May 13, 2019

In response to the Gaza crisis in July-August 2014, the PID MDTF has become an important instrument to provide emergency funding to the key infrastructure and services sectors. Following the cease fire on August 26, 2014, the World Bank Board of Executive Directors has approved Gaza emergency operations in the water, energy, and urban sectors on October 30, 2014 with co-financing from the PID MDTF. Total Gaza emergency reconstruction funds channeled through the PID have reached around USD32 million. While the Gaza response can be accounted as one of the reasons for the increase in contributing DPs and additional TF pledges, it also demonstrates the effectiveness and efficiency of the PID MDTF.

Water Supply & Sewage Systems Improvement Project, including Gaza Emergency Additional Financing (P151032) - Total project value is USD18.1, of which USD8.7M is co-financed by the PID MDTF.  The program development objective is to improve the quality and efficiency of water supply and wastewater service provision in Gaza and assist in restoration of basic water supply and wastewater services through: (i) rehabilitation and reconstruction of existing and damaged water and wastewater systems, and (ii) enhancing the capacity of the Coastal Municipalities Water Utility (CMWU) to sustain water and wastewater services.

Gaza Sustainable Water Supply Program (P150494) The USD2.5M is funded by the PID MDTF. The development objective is to make available to the Palestinian Water Authority studies and key initiatives needed to support the preparation of the Gaza Sustainable Water Supply Program.

Northern Gaza Emergency Sewage Treatment (NGEST) (P074595) - Total project value is USD 55.9 of which USD5M is co-financed by the PID MDTF.  The project objectives are to: (i) mitigate the immediate gathering health and environmental safety threats to the communities surrounding the effluent lake at BLWTP; and (ii) Provide a satisfactory long-term solution to the treatment of wastewater for the Northern Government in Gaza.

Gaza Emergency Response Municipal Development Project Additional Financing (P152523) – Total project value is USD 50.8, of which USD12M is co-financed by the PID MDTF. The Gaza Emergency Response AF was declared effective on January 29, 2015 and the finance costs associated with the scaling-up of project activities to support the emergency response efforts following the damages and service interruptions incurred during the latest conflict. The scale-up provides funding for investment grants to Gaza municipalities to assist restoring critical municipal service provision in Gaza, and are based on the critical needs identified in the damage assessment by the PA.

Feasibility Study for Solar Power Supply - NGEST (P149853) – The USD0.15M is funded by the PID MDTF. The objective of the study is to assist PENRA and PWA in identifying the optimal and most feasible power source option to supply the North Gaza Emergency Sewage Treat (NGEST) project throughout its life-cycle. This TA reviews options for power generation that have already been considered.

However, given that these options remain infeasible and impracticable in the short term, the TA provides an assessment of the feasibility of solar energy as the main power source for operating at least Phase 1 of the NGEST project. The study also considers options to provide backup power to cover the intermittency of solar energy, including diesel generators and connection to the grid.

For further information on the disbursement progress of funding pledged at the “Cairo Conference on Palestine - Reconstructing Gaza” please refer to Reconstructing Gaza – Donor Pledges.

Last Updated: Dec 21, 2015

The PID MDTF is currently supported by the following donors:

 

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Denmark
Netherlands Netherlands
Norway Norway
France France
Finland Finland
Sweden Sweden
Croatia Croatia
Portugal Portugal

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UK-DFID

 

 

Last Updated: May 13, 2019

  • January 15, 2019: The World Bank Executive Directors, approved Additional Financing in the amount of US$12 million to scale-up ongoing efforts to enhance the operational performance of key Palestinian energy sector institutions, and pilot a new business model for solar energy in Gaza. This Additional Financing will top-up the available resources of the ongoing Electricity Sector Performance Improvement Project (ESPIP), bringing it up to US$23 million. 
  • December 20, 2018: Norway and Sweden contributed an additional total amount of US$18.2 million to the PID MDTF. The funds contributed by the Swedish International Development Cooperation Agency (SIDA) of SEK 90 million, equivalent to US$ 9.7 million, and the Norway Ministry of Foreign Affairs of NOK 73 million, equivalent to US$ 8.5 million, will support the Palestinian Authority implementing sector reforms and improving the quality and sustainability of infrastructure in water, energy and local government services provided to the Palestinian citizens. 
  • December 10, 2018: The United Kingdom joined the Palestinian Partnership for Infrastructure Development with an amount of up to £18 million, equivalent to US$ 23 million. This is the United Kingdom’s first contribution to the fund that will support reforms and investments to achieve improved access to safe drinking water in Gaza, better performance of the Palestinian electricity sector, and a new business model for solar energy in Gaza. 
  • On December 2017, an additional US$7.7 million were contributed this month by the Governments of Sweden (US$3.9 million) and Norway (US$3.8 million) to the support Palestinian infrastructure development. The funds will support the water and energy programs under the Partnership for Infrastructure Development (PID), a multi-donor trust fund administered by the World Bank.
  • On November 13, 2017, a national dissemination workshop took place to discuss the main findings of the World Bank report, the Local Government Performance Assessment (LGPA). The study analyzes the performance of Palestinian local authorities to better inform government interventions and policies for the improvement of service delivery. The study included a household survey looking at access, quality, and reliability of local services for the first time from the ‘demand side’ of the Palestinian citizen. The study was supported by Denmark and USAID with co-financing from the PID MDTF and the PRDP TF.
  • On November 9, 2017, a joint World Bank/PENRA workshop was held to discuss ‘Securing Energy for Development’. The Palestinian territories face significant energy security challenges, already severe in Gaza, but also emerging in the West Bank. With electricity demand projected to grow at an average annual rate of around 3.5 percent for the coming years, energy shortages can be expected to deteriorate unless new supply options are found. The World Bank examines how a secure energy future can be achieved and argues that the key is financial independence in the sector. The study was financed by the Norwegian Government and the Energy Sector Management Assistance Program (ESMAP) Trust Fund.
  • On July 27, 2017, the World Bank approved the new Electricity Sector Performance Improvement Project. With US$ 4 million from the World Bank and 7US$ million from the Partnership for Infrastructure Development Trust Fund, the Project will strengthen the capacity of key energy sector institutions, improve the efficiency and service quality of the electricity distribution system, and pilot a new business model for solar energy in Gaza. The project will contribute to strengthening the financial sustainability of the sector, and to create a conducive environment for private sector investment in power generation.
  • On July 21, 2017, The World Bank approved the Third Municipal Development Project that will be funded by US$16 million from the World Bank and US$20 million donor co-financing from the Partnership for Infrastructure Development Trust Fund. The new project will build on the success of previous projects and will scale up its operations to improve municipal performance and service delivery. It will also explore joint investments with the private sector to ensure the sustainability of municipal services. 

Last Updated: May 13, 2019







Contact: Bjorn Philipp