The development objective of the Partnership for Infrastructure Development in the West Bank and Gaza Multi-Donor Trust Fund (PID MDTF) is to improve the coverage, quality, and sustainability of infrastructure in the West Bank and Gaza (WB&G) through financial and technical assistance (TA) to the Palestinian Authority (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 Trust Fund (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 Advisory Services and Analytics (ASA) activities that the World Bank is supporting in the mentioned sectors.
The operations under the TF continue the World Bank’s support for the PA’s strategic long-term plans for development [1] and are aligned with the pillars of the World Bank’s AS FY18-21, that is, (a) setting the conditions for increased private sector investments and job creation, (b) setting up a Private Sector Enhancement Facility to realize private sector investments, and (c) addressing the needs of the vulnerable and strengthening institutions for improved citizen-centered service delivery. [2]
The third pillar of the World Bank’s four-year strategy aligns closely with the PA’s National Policy Agenda (NPA) 2017–2022 Reform Pillar, including the following 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. The World Bank’s AS and the PA’s NPA underpin the MDTF’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 MDTF 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.
[1] The previous National Development Plans (NDPs) and the current NPA of the PA.
[2] Assistance Strategy FY 18–21 for West Bank and Gaza, The World Bank Group.
Last Updated: Dec 24, 2019
The PID MDTF predominantly provides co-financing to investment operations implemented by the PA. A small share of the available funding is being allocated for TA and analytical work implemented by the World Bank to underpin and strengthen the ongoing sector policy dialogue. The TF structure reflects these priorities.
The main fund (‘Trustee Fund’[1]) comprises three sectoral windows for co-financing and TA activities in the water, energy, and urban development sectors (‘parent funds’). Disbursing ‘child funds’ are established for each discrete activity supported under the sector windows. The World Bank signs Grant Agreements (GAs) with the PA for the financing provided through the child funds and supervises disbursements along with implementation progress (IP) for these individual activities. In addition, the PID MDTF comprises a window for the World Bank supervision of recipient-executed projects and a window for program and TF management.
PID MDTF Management Structure
Note: MoFP = Ministry of Finance and Planning
[1] The two trustee level funds—a parent fund (TF071898) and a parallel fund (TF072778)—are being referred to as one “Trustee Fund” since together they make up the PID MDTF program.
Last Updated: Apr 10, 2022
As of June 30, 2022, a total of US$300.6 million has been pledged to the PID MDTF. Total donor pledges during FY22 were around US$20.9 million from the Netherlands (US$2.5 million), France (EUR 10 million), and Sweden (SEK 75 million). The PID MDTF is currently supported by 10 development partners (DPs)—Australia, Denmark, France, Finland, Italy, the Netherlands, Norway, Portugal, Sweden, and the United Kingdom. Of the pledged amount, US$274.4 million has been paid in.
Discussions are still ongoing with the European Union (EU), which has expressed interest, in principle, to join the PID MDTF.
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, 2027 |
TF Financial Contributions as of June 30, 2022
June 2022 |
Pledged to Date - Totals (in millions) |
||||||
Development Partners |
Currency |
Pledged |
Paid in to Date |
Receivables |
|||
Pledge Currency |
USD |
Pledge Currency |
USD |
Pledge Currency |
USD |
||
Croatia |
USD |
0.2 |
0.2 |
0.2 |
0.2 |
0.0 |
0.0 |
Sweden |
SEK |
703.0 |
83.8 |
628.0 |
76.5 |
75.0 |
7.3 |
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 |
13.5 |
15.0 |
9.5 |
10.8 |
4.0 |
4.2 |
Netherlands |
USD |
16.6 |
16.6 |
16.6 |
16.6 |
0.0 |
0.0 |
Norway |
NOK |
400.0 |
46.2 |
321.6 |
38.3 |
78.4 |
7.9 |
Portugal |
EUR |
0.2 |
0.2 |
0.2 |
0.2 |
0.0 |
0.0 |
United Kingdom |
GBP |
38.0 |
49.3 |
32.3 |
42.4 |
5.7 |
6.9 |
Australia |
AUD |
10.0 |
6.8 |
10.0 |
6.8 |
0.0 |
0.0 |
Italy |
EUR |
8.0 |
9.5 |
8.0 |
9.5 |
0.0 |
0.0 |
USD Totals |
— |
300.6 |
— |
274.4 |
— |
26.2 |
Last Updated: Aug 01, 2022
URBAN DEVELOPMENT
Third Municipal Development Project (MDP-3)
Project Development Objective: To enhance 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:
Local Governance and Services Improvement Program (LGSIP)
Project Development Objective: To strengthen the local government financing system and improve local service delivery in program villages.
LGSIP uses a Program for Results (PforR) financing instrument. It finances activities under the following three subprograms: (a) Delivery of Local Services by Village Councils, (b) Infrastructure Service Delivery through Joint Projects, and (c) Capacity support for strengthening Local Governance Institutions. The Belgian Technical Cooperation, Swiss Agency for Development and Cooperation (SDC), German Development Bank (Kreditanstalt für Wiederaufbau), and the German Agency for International Cooperation (Deutsche Gesellschaft für Internationale Zusammenarbeit) provide parallel financing across these three sub-programs. The LGSIP also supports the government’s program for delivery of local services in Area C communities, through parallel financing from the SDC, Denmark Representative Office, Agence Française de Développement, European Union, and U.K. Department for International Development (DFID) as well as the PA. The PforR segment is co-financed from the World Bank’s TFGWB with a grant amount of US$5 million and from the PID MDTF with the amount of US$13 million.
The project is rated as Satisfactory in its progress towards achievement of Project Development Objective and Overall Implementation Progress (IP).
Gaza Solid Waste Management Project (GSWMP)
Project Development Objective: To improve solid waste management services in the Gaza Strip.
The GSWMP is a comprehensive strategic infrastructure and capacity-building project, with the MDLF managing the southern component of the project covering three of the five governorates in the Gaza Strip, namely the Middle Area, Khan Younis, and Rafah Governorates. The project target constitutes approximately 64 percent of Gaza’s total geographic area and 46 percent of Gaza’s total population (approximately 800,000 people). The three governorates are served by Joint Service Council for Khan Younis, Rafah, and Middle Area (JSC-KRM).
The GSWMP is aimed at improving SWM services in the Gaza Strip through the provision of environmentally and socially sound—as well as efficient—waste disposal schemes. The GSWMP is initiating measures to improve overall SWM systems through supporting a combination of (a) strategic infrastructure investments (including construction of a new landfill, two transfer stations, equipment, access road, closure of the existing dump site, and purchase of land for the new landfill); (b) institutional strengthening and capacity building; and (c) skills and technology development.
The project is rated as Satisfactory in its progress towards achievement of its Project Development Objective and Overall Implementation Progress (IP).
The original project was restructured and additional financing (AF) was approved in August 2020, with an aim to provide funding for higher costs incurred due to improved operational standards of the newly constructed infrastructure as well as for incentivizing improved operational and financial performance of the JSC. The AF is provided through a combination of the Global Partnership for Results Based Approaches (GPRBA) in the amount of US$2 million and US$1.25 from PID MDTF.
PID MDTF Additional Financing: It will provide funding to account for higher than anticipated costs for the infrastructure (under Component 1), goods and services (under Component 2) and increased operational costs (under Component 4) anticipated due to the COVID-19 pandemic.
Real Estate Registration Project (RERP)
Project Development Objective: To enhance tenure security and improve real estate registration services.
These objectives will be achieved through advancing the registration of properties in Areas A and B of the West Bank and will support the ongoing systematic approach, which comprehensively benefits citizens, businesses (including MSMEs), and public entities through real estate registration. Additionally, gender outreach and inclusion have been mainstreamed through the design of the project to ensure that the rights of women and vulnerable groups are protected through (a) their participation in the SLR process and (b) the promotion of their registration rights.
The project components are as follows:
The RERP was approved by the World Bank Group Board of Executive Directors on July 22, 2019.
WATER
Project Development Objective: To improve the quality and quantity of bulk water supplied to the municipalities served in the project areas and to strengthen the capacity of the Palestinian Water Authority.
The AWP-I is part of a coordinated international effort to address chronic poor water quality in Gaza and the substantial increase in domestic demand expected in the medium term. The Gaza Central Desalination Program (GCDP), formulated by PWA with other DPs, covers all of Gaza and comprises two main components: (a) The construction of a desalination plant with initial capacity to produce 55 MCM a year of desalinated water that can be doubled in the future; and (b) “Associated Works,” which include the 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 project comprises three components which will: (i) build the necessary water infrastructure for improved bulk water supply by conveying and blending water from various sources in the southern and middle governorates; (ii) build capacity to improve the performance of selected institutions; and (iii) provide project management and implementation support. The three components are described below.
The project became effective on April 26, 2020 and its implementation is progressing well, despite challenges posed by the COVID-19 pandemic, to respond to an urgent need for improved water supply in Gaza and to the need for the strengthening of the water institutions.
Gaza Wastewater Management and Sustainability Project (WMS) (P172578)
Project Development 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.
The WMS Project is designed to on one hand ensure the continuous operation of the North Gaza Wastewater Treatment Plant (NGWWTP) by financing efficient O&M expenses for four years (excluding electricity which will be financed by the PA) as well as financing some rehabilitation of equipment and civil works of the NGEST system to guarantee performance at design capacity. On the other hand, and running in parallel, the project will finance activities to ensure the sustainability of the O&M in the future. This would include on the technical side financing upgrades to the system to gain resiliency and flexibility of operations, and on the institutional side, financing TA to build capacity for sustainability as well as for designing proper institutional arrangements for the O&M of the WWTP and associated facilities in conjunction with the PWA, the municipalities in the service area, and the Coastal Municipal Water Utility. The project components are as follows:
The project was approved by the World Bank’s Board of Executive Directors on June 10, 2020.
ENERGY
Electricity Sector Performance Improvement Project (ESPIP), including Additional Financing
Project Development 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.
The ESPIP and its Additional Financing (AF) are designed to provide continued support to Palestinian Energy and National Resources Authority (PENRA)’s long‐term vision of strengthening financial and operational sustainability of the electricity sector and diversifying power sources through short‐term measures to enhance the energy sector’s institutional capacity, improve efficiency of the electricity distribution system, and increase availability of rooftop solar PV systems in Gaza. The ESPIP supports institutions and interventions along the Palestinian energy supply chain, covering generation, transmission (PETL), Distribution Companies (DISCOs), and regulation (PERC). Given the fragile and complex nature of operations in the WB&G, the scope of the ESPIP components was designed to allow flexibility to support scale‐up. Building on the current status of electricity sector reforms and institutional development, significant additional efforts are required to achieve sustained improvements. Such efforts include (a) addressing power supply constraints that limit private sector development and job creation, particularly in Gaza, (b) supporting implementation of the Israeli‐Palestinian electricity debt agreement and the interim and long‐term PPAs with Israel, and (c) enabling diversification of power supply and sources. The AF is strengthening ESPIP activities for continued support to development of the energy sector in the WB&G.
The project is rated as Satisfactory in its progress towards achievement of its Project Development Objective and Overall Implementation Progress (IP).
Project Development Objective: To improve operational and financial performance of electricity sector institutions and promote diversification of energy sources.
The ASPIRE MPA is designed to support PENRA in implementing the Electricity Sector Strategy (2017–2023) and National Renewable Energy Policy (2017–2022) while contributing to the realization of PENRA’s 2030 vision, as described in the SED report. This involves achieving greater autonomy and improved performance through (a) advanced transmission and distribution infrastructure, (b) domestic generation through independent power producers (IPPs), and (c) financial and operational sustainability of its institutions. The electricity sector can contribute toward enhancing the performance of the economy, improving fiscal sustainability (including through deficit reduction), and ensuring improved competitiveness through greater service delivery efficiency and enhanced private sector engagement.
Phase I includes the following components and activities:
Activities: (a) Enhancing single-buyer role of PETL through rehabilitation and transfer of IEC inter-connection points; (b) Upgrading existing distribution infrastructure to increase power supply from IEC and utilization among DISCOs; (c) Enabling evacuation of imported energy from Jordan through Jericho to Ramallah to address supply shortages.
Activity: Scale-up of the ongoing Revenue Protection Program (RPP), started under ESPIP, for improved metering and billing systems in West Bank and Gaza.
Activities: (a) Increasing ability of the grid to evacuate rooftop and small-scale solar PV systems; (b) scaling-up the existing revolving fund for rooftop solar PV systems and scaling-up support health facilities; and (c) strengthening sector and PETL creditworthiness to attract private sector as independent power producers by establishing a liquidity support account and payment system.
Activities: (a) Partial cost of PMU staff salaries and cost of related consulting and advisory services to the PMU; (b) design of the PETL liquidity support account; (c) preparation of feasibility studies, environmental impact assessments, etc. for future phases; (d) development of battery waste management approaches in Gaza and; (e) training and capacity building for government and private sector.
The ASPIRE MPA was approved by the World Bank Group Board on April 27, 2020.
Last Updated: Oct 27, 2020
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
Last Updated: Aug 01, 2022
Last Updated: Nov 07, 2022