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. 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 water, urban development, and energy sectors. The operations in 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 proposed ASFY18-21, i.e., to (i) stimulate an environment for dynamic and inclusive private sector growth for job creation; and (ii) strengthen institutions’ accountability and capability for building public trust.

The key pillar of the WB’s new four-year 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.

The AS also aligns with the NPA Pillar, Sustainable Development, including the specific objectives of Building Palestine’s Future Economy, and Meeting the Basic Needs of Our Communities. (For specific policy interventions PID MDTF targets and supports within the NPA please refer to Annex 1).

The WB’s AS and the PA’s NPA underpin the TF’s operations, and the development investment agenda allows for the donors and PA to link pledges to concrete projects and priorities identified in the NPA. The TF provides a mechanism to pool funds, based on a collective longer term view of broader economic and governance fundamentals, coordinating donor assistance and avoiding fragmentation. 

Last Updated: Dec 03, 2018

Below the level of the Trustee fund, the PID MDTF is comprised of non-disbursing “parent” funds for sectoral co-financing and TA activities, a window for Recipient-executed project supervision, and a window for Program and TF management. Disbursing “child” funds are established as required for each discrete activity/ project that the Fund supports. The current structure of the PID MDTF, including disbursing TFs for projects with commitments for co-financing and summary descriptions for each, can be found on the TF website and described in detail subsequently 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: Oct 12, 2017

By August 31, 2017, a total of US$137.76 million had been pledged to the PID MDTF, which is in its fifth year. The active donors for the TF remain unchanged and include the governments of Croatia, Denmark, Finland, France, Netherlands, Norway, Portugal and Sweden. No additional partners joined during the reporting period. Of the contributed amount, US$104.37 million has been paid-in. Total donor pledges for the period September 1, 2016 - August 31, 2017 amounted to approximately US$30.34 million equivalent, from: Norway in the amounts of NOK15 million (US$1.92 million equivalent) pledged in November 2016 and NOK27 million (US$3.5 million equivalent) pledged in August 2017; Finland in the amount of EUR2.3 million (US$2.7 million equivalent) pledged in January 2017; and Denmark in the amount of DKK140 million (US$22.2 million equivalent) pledged in June 2017. Of the additional pledges, US$4.17 million has been paid-in.

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

 

TF Financial Contributions as of August 31, 2017 (Pledged & Received)

Aug-2017

 Financial Contributions to date

 Contributors:

 Currency

 Pledged 

 Paid-In to date

 Receivables

 Pledge Currency

 US$

 Pledge Currency

 US$

 Pledge Currency 

 US$

Croatia

 US$

200,000

$200,000

 200,000

$200,000

-

-

Sida

 SEK

310,000,000

$40,659,234

250,000,000

$33,124,196

 60,000,000

$7,535,038

Denmark

 DKK

360,000,000

$60,320,432

220,000,000

$37,926,345

140,000,000

$22,394,088

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

115,000,000

$14,963,293

 88,000,000

$11,500,423

 27,000,000

$3,462,871

Portugal

 Euro

 150,000

$182,835

 150,000

$182,835

 -  

 -  

 US$ Totals:

N/A

$137,762,584

N/A

$104,370,588

N/A

$33,391,997

Last Updated: Oct 12, 2017

URBAN DEVELOPMENT

Second Municipal Development Project: The development objective is to improve municipal management practices for better service delivery and municipal transparency.

GZ Emergency Response AF MDP-2: The development objective 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.

Southern West Bank Solid Waste Management Project- AF: The original and essentially unchanged development objective is to improve solid waste disposal services for the communities and businesses of Palestinian municipalities and joint services councils in the Bethlehem and Hebron governorates through provision of an efficient socially acceptable and environmentally friendly mechanism, including (i) strengthening the joint services council administrative and technical capabilities for a cost-effective management of waste disposal services; (ii) improving the waste disposal services through provision of a sanitary landfill facility and related infrastructure; and (iii) carrying out a public awareness campaign for promoting waste minimization, resource recovery and cost recovery for financial viability. 

Gaza Solid Waste Management Project: The development objective of the project is to improve solid waste management services in the Gaza Strip and provide more efficient, environmentally and socially sound waste Management systems. 

WATER

Gaza Sustainable Water Supply Program - Additional Works: The development objective is to assist the Palestinian Water Authority to make the Gaza Sustainable Water Supply Program possible through the production of key studies, tender documents and institutional strengthening.

The World Bank is not intending to use the grant to finance any goods or works for either the desalination plant or the associated works. The grant is currently under preparation, with a tentative approval date of April 2015.

Water Sector Capacity Building Co-Financing Fund: The development objective is to is to strengthen the capacity of the PWA to more effectively plan, monitor, and regulate water sector development in the West Bank and Gaza.

The development objective is revised to reflect the establishment of the Water Sector Regulatory Council (WSRC), which will be responsible for monitoring and regulating of the water and wastewater sector, while PWA will continue to be responsible for developing the sector and formulating relevant policies to develop strategic plans including the completion of the water sector reform process.

Additional financing for the project is underway, and the concept note review meeting was held on March 9, 2015. The grant amount is US$2.0 million. The team is revisiting the project development objective and the project indicators to reflect the recent changes in the water sector.

Third Additional Financing for the North Gaza Emergency Sewage Treatment Project: The development objectives are to mitigate the health and environmental safety threats to the communities surrounding the effluent lake at Beit Lahia to provide a satisfactory long-term solution to the treatment of wastewater for the Northern Governorate in Gaza.

Gaza Emergency Water Supply and Sewage Systems Improvement Project Additional Financing: The development objective is to improve the quality and efficiency of water supply and wastewater service provision in Gaza and to 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. 

ENERGY

NGEST Solar Power Feasibility Study: The development objective of this study is to assist PENRA and PWA to identify the most optimal and feasible power supply option to NGEST throughout its life-cycle. This technical assistance will assess the feasibility of solar energy as the main source of electrical power for NGEST and present a number of scenarios for backup to cover the non-continuous nature of solar energy supply. These backup scenarios will likely include options such as battery storage, small diesel generation, electricity imports from Israel and/or Egypt, and other potential renewable energy resources. This assessment will take into consideration technical and political constraints as well as resource insecurity in Gaza. 

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:

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

 

 

 

 

 

 

 

 

  • 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: Dec 20, 2017







Contact: Bjorn Philipp