Palestinian Partnership for Infrastructure Trust Fund

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.

Trust Fund 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: Dec 24, 2019

As of December 31, 2020, a total of US$273.1 million has been pledged to the PID MDTF, which is in its eighth year. Of the pledged amount, US$241.2 million has been paid in. Italy has recently joined the PID MDTF with its vital contribution of EUR 8 million, showing there is still great interest for donors to continue channeling funds through this vehicle. The PID MDTF donors include Australia, Croatia, Denmark, Finland, France, Italy, Netherlands, Norway, Portugal, Sweden, and the United Kingdom.

In response to the global economic downturn and fiscal challenges caused by COVID-19, the World Bank will continue to seek new avenues for fundraising and communicate with potential new donors to join the PID MDTF. Talks are currently under way with the European Union (EU) to join the fund.

PID MDTF Parallel Parent Trust Funds

TF Financial Contributions as of December 31, 2020

Last Updated: Apr 18, 2021

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:

• Component 1: Municipal performance and service delivery finances municipal infrastructure for improved service delivery through a combination of (a) block grants to provide basic funding for eligible municipalities for infrastructure development based on needs and equity and (b) performance grants to provide an incentive for eligible municipalities to improve their performance.
• Component 2: Capacity development to municipalities and Palestinian institutions provides capacity development support to municipalities and apex-level institutions, namely, the MDLF and the MoLG. 
• Component 3: Municipal partnership projects provides technical assistance and project financing to municipalities to (a) engage more effectively with the private sector and (b) work across administrative boundaries to develop joint and/or innovative investments for municipal service delivery and local economic development. Only the TA portion under Subcomponent A will be financed by the Trust Fund for Gaza and West Bank (TFGWB). 
• Component 4: Project implementation support and management costs finances project management.
• Component 5: Emergency labor-intensive Gaza municipal services (financed exclusively by the TFGWB in the amount of US$10 million) finances the costs associated with the scale-up of the project’s support to Gaza municipalities to enable them to expand local services provision though labor-intensive O&M and municipal infrastructure development activities.

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: 

• Component 1: Systematic Land and Property Registration will support the PA and LWSC with their strategic plan to complete SLR over a four-year period through a results-based payments approach and will include support for the enhancement of institutional functions and capacity at the LWSC. Under this component, a GAP will be developed and implemented. 
• Component 2: Institutional Modernization of the PLA will be implemented by the PLA and will aim to build the agency’s technical capacity and support its transformation into a modern, service-oriented organization that provides e-services to the government, businesses, and citizens. Business process re-engineering and automation will streamline the PLA service provision, achieve digital transformation, increase service quality and transparency, and improve service delivery. The component will also support the development of mass valuation models.
• Component 3: Project Management and Outreach will support the project management functions in the PLA and LWSC, including M&E, project coordination, social safeguards, and procurement. The external project audit, the SIA, SMP, and midterm and final project evaluations will be conducted under this component. 

The RERP was approved by the World Bank Group Board of Executive Directors on July 22, 2019.

WATER

Water Security Development Program (WSDP): Gaza Central Desalination Plant (GCDP) – Associated Works and Institutional Development Project, Phase I

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. 

• Component 1: Improved Supply of Bulk Water to the Southern and Middle Governorates of Gaza 
• Component 2: Capacity Building and Performance Improvement of Selected Institutions
• Component 3: Project Management and Implementation Support

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:

• Component 1: Support the continued operation of the North Gaza Wastewater Management Facilities (NGWMF) 
• Component 2: Rehabilitation and upgrade of the NGWMF to improve efficiency, build resiliency, and address emergencies. 
• Component 3: Capacity building for sustainability of wastewater services in northern Gaza 
• Component 4: Project Management and Implementation Support
• Component 5: Contingency Emergency Response Component

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).

Advancing Sustainability in Performance, Infrastructure, and Reliability of Energy Sector in the West Bank and Gaza Multi-Phase Programmatic Approach (ASPIRE MPA)

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:

• Component 1: Improving infrastructure for regional electricity interconnections in the WB&G

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. 

• Component 2: Improving sustainability of service delivery in WB&G DISCOs

Activity: Scale-up of the ongoing Revenue Protection Program (RPP), started under ESPIP, for improved metering and billing systems in West Bank and Gaza. 

• Component 3: Enabling Private Sector Engagement in Renewable Energy in the WB&G

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.    

• Component 4: Technical Assistance, Capacity Building and Project Management

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: Apr 18, 2021

• February 25, 2021: Italy joined the PID MDTF with an amount of EUR 8 million, equivalent to US$9.6 million. This is Italy’s first contribution to the fund with its preference to provide support to the Palestinian water and sanitation sector. Italy sent a strong signal of support to the Palestinian people for the development of its infrastructure at these difficult times of COVID crisis and fiscal stress. This funding will be critical to Gaza’s recovery and future development as it targets a vital sector of safe water and reliable water supplies.
• June 10, 2020: The Gaza Wastewater Management and Sustainability Project (WMS) received approval from the World Bank Group Board of Executive Directors. The WMS project is designed to support the continuation of wastewater treatment services in North Gaza and strengthen the water institutions’ capacity to efficiently manage wastewater services. The total financing for the WMS project is US$13.7 million, which is financed by the TFGWB in the amount of US$10 million, with co-financing from the PID MDTF in the amount of US$3.7 million.
• April 27, 2020: The World Bank Group Board of Executive Directors approved the West Bank & Gaza: Advancing Sustainability in Performance, Infrastructure & Reliability in the Energy Sector Multi-Phase Programmatic Approach (ASPIRE MPA) Phase I, which is the first MPA both in MENA and in a Fragility, Conflict, Violence (FCV) setting in the World Bank. The new project will improve operational and financial performance of electricity sector institutions and promote diversification of energy sources in the West Bank and Gaza. The total financing for the ASPIRE MPA Phase I is US$63 million, which is financed by the Trust Fund for Gaza and the West Bank (TFGWB) in the amount of US$14 million, with co-financing from the PID MDTF in the amount of US$49 million.
• February 10, 2020: The World Bank Group Board of Executive Directors approved the Water Security Development – Gaza Central Desalination Plant – Associated Works Phase I Project (AWP-I) to improve the quality and quantity of bulk water supplied to the municipalities served in the project areas and strengthen the capacity of the Palestinian Water Authority. The total financing for the AWP-I is US$117 million, which is financed by the TFGWB in the amount of US$15 million, with co-financing from the PID MDTF for US$42 million and US$60 million from the Kuwait Fund for Arab Economic Development. 
• December 13, 2019: Sweden made an additional contribution of SEK 195 million, equivalent to US$20.7 million, to the PID MDTF. The contribution will support the activities co-financed by the PID MDTF in the water and sanitation, urban development, and energy sectors. 
• December 5, 2019: Norway contributed an additional NOK 180 million, equivalent to US$20.0 million. The funds will support the Palestinian energy sector through the proposed West Bank & Gaza: Advancing Sustainability in Performance, Infrastructure & Reliability in the Energy Sector Multi-Phase Programmatic Approach.
• November 28, 2019: An additional contribution of GBP 20 million, equivalent to US$26 million, was made by the United Kingdom. The contribution will support the Palestinian energy sector, primarily through financing to the proposed West Bank & Gaza: Advancing Sustainability in Performance, Infrastructure & Reliability in the Energy Sector Multi-Phase Programmatic Approach.
•  November 4, 2019: The Netherlands made an additional contribution of US$10.1 million to the PID MDTF. This contribution came with the intention to materialize the Dutch pledge made at the Gaza Conference, which took place in March 2018 to finance the Water Security Development Program (WSDP): Gaza Central Desalination Plant (GCDP) – Associated Works and Institutional Development Project. 
• July 22, 2019: The World Bank Group Board of Executive Directors approved the Real Estate Registration Project (RERP) to enhance tenure security and improve real estate registration services. The total financing for the four-year RERP is US$12.6 million, which is financed by the Trust Fund for Gaza and West Bank in the amount of US$5 million, with co-financing from the World Bank TF Global Partnership for Results Based Approaches for US$4.6 million and US$3 million from the PID MDTF. 
• 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. 

• 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.

• 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.

• 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.

• 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.

• 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: Apr 18, 2021