Input:
**PAD DATA SHEET**

_West Bank and Gaza_

_GZ-Integrated Cities and Urban Development Project (P150991)_

**PROJECT APPRAISAL DOCUMENT**

_MIDDLE EAST AND NORTH AFRICA_

_0000009352_

Report No.: PAD1696

|Basic Information|Col2|Col3|Col4|
|---|---|---|---|
|Project ID|Project ID|EA Category|Team Leader(s)|
|P150991|P150991|B - Partial Assessment|Noriko Oe|
|Lending Instrument|Lending Instrument|Fragile and/or Capacity Constraints [  ]|Fragile and/or Capacity Constraints [  ]|
|Investment Project Financing|Investment Project Financing|Financial Intermediaries [  ]|Financial Intermediaries [  ]|
|||Series of Projects [  ]|Series of Projects [  ]|
|Project Implementation Start Date|Project Implementation Start Date|Project Implementation End Date|Project Implementation End Date|
|15-Dec-2015|15-Dec-2015|01-Dec-2020|01-Dec-2020|
|Expected Effectiveness Date
Expected Closing Date|Expected Effectiveness Date
Expected Closing Date|Expected Effectiveness Date
Expected Closing Date|Expected Effectiveness Date
Expected Closing Date|
|01-Nov-2016
30-Jun-2021|01-Nov-2016
30-Jun-2021|01-Nov-2016
30-Jun-2021|01-Nov-2016
30-Jun-2021|
|Joint IFC

|Joint IFC

|Joint IFC

|Joint IFC

|
|No

|No

|No

|No

|
|Practice
Manager/Manager
Senior Global Practice
Director
Country Director
Regional Vice President|Practice
Manager/Manager
Senior Global Practice
Director
Country Director
Regional Vice President|Practice
Manager/Manager
Senior Global Practice
Director
Country Director
Regional Vice President|Practice
Manager/Manager
Senior Global Practice
Director
Country Director
Regional Vice President|
|Ayat Soliman
Ede Jorge Ijjasz-Vasquez Marina Wes
Hafez M. H. Ghanem|Ayat Soliman
Ede Jorge Ijjasz-Vasquez Marina Wes
Hafez M. H. Ghanem|Ayat Soliman
Ede Jorge Ijjasz-Vasquez Marina Wes
Hafez M. H. Ghanem|Ayat Soliman
Ede Jorge Ijjasz-Vasquez Marina Wes
Hafez M. H. Ghanem|
|Borrower: PALESTINE LIBERATION ORGANIZATION (FOR THE BENEFIT OF THE
PALESTINIAN AUTHORITY)|Borrower: PALESTINE LIBERATION ORGANIZATION (FOR THE BENEFIT OF THE
PALESTINIAN AUTHORITY)|Borrower: PALESTINE LIBERATION ORGANIZATION (FOR THE BENEFIT OF THE
PALESTINIAN AUTHORITY)|Borrower: PALESTINE LIBERATION ORGANIZATION (FOR THE BENEFIT OF THE
PALESTINIAN AUTHORITY)|
|Responsible Agency: Municipal Development Lending Fund (MDLF)|Responsible Agency: Municipal Development Lending Fund (MDLF)|Responsible Agency: Municipal Development Lending Fund (MDLF)|Responsible Agency: Municipal Development Lending Fund (MDLF)|
|Contact:
Tawfiq Budeiri
 Title:
Managing Director|Contact:
Tawfiq Budeiri
 Title:
Managing Director|Contact:
Tawfiq Budeiri
 Title:
Managing Director|Contact:
Tawfiq Budeiri
 Title:
Managing Director|
|Telephone No.: 02-2966610
 Email: tbdeiri@mdlf.org.ps|Telephone No.: 02-2966610
 Email: tbdeiri@mdlf.org.ps|Telephone No.: 02-2966610
 Email: tbdeiri@mdlf.org.ps|Telephone No.: 02-2966610
 Email: tbdeiri@mdlf.org.ps|
|Responsible Agency: Ministry of Local Government|Responsible Agency: Ministry of Local Government|Responsible Agency: Ministry of Local Government|Responsible Agency: Ministry of Local Government|
|Contact:
Mohammad Jabarin
 Title:
Deputy Minister|Contact:
Mohammad Jabarin
 Title:
Deputy Minister|Contact:
Mohammad Jabarin
 Title:
Deputy Minister|Contact:
Mohammad Jabarin
 Title:
Deputy Minister|
|Telephone No.: 02-2401455
 Email: mohjabarin@yahoo.com|Telephone No.: 02-2401455
 Email: mohjabarin@yahoo.com|Telephone No.: 02-2401455
 Email: mohjabarin@yahoo.com|Telephone No.: 02-2401455
 Email: mohjabarin@yahoo.com|
|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|
|[  ]
Loan|[  ]
IDA Grant|[  ]
Guarantee|[  ]
Guarantee|
|[  ]
Credit|[  ]
Grant|[ X ]
Other|[ X ]
Other|


Input:
|Total Project Cost:|Col2|Col3|5.00|Col5|Col6|Col7|Col8|Total Bank Financing:|Col10|Col11|Col12|Col13|0.00|Col15|Col16|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Financing Gap:|Financing Gap:|Financing Gap:|0.00|0.00|0.00|0.00|0.00|||||||||
|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|
|Borrower|Borrower|Borrower|Borrower|Borrower|Borrower|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|Special Financing|Special Financing|Special Financing|Special Financing|Special Financing|Special Financing|5.00|5.00|5.00|5.00|5.00|5.00|5.00|5.00|5.00|5.00|
|Total|Total|Total|Total|Total|Total|5.00|5.00|5.00|5.00|5.00|5.00|5.00|5.00|5.00|5.00|
|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|
|Fiscal
Year|2017|2018|2018|2019|2020|2020|2021|2021|0000|0000|0000|0000|0000|0000|0000|
|Annual|0.50|1.00|1.00|1.50|1.75|1.75|0.25|0.25|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|Cumulati
ve|0.50|1.50|1.50|3.00|4.75|4.75|5.00|5.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|
|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|
|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|
|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|
|||||||||||||||||
|**Proposed Development Objective(s)**|**Proposed Development Objective(s)**|**Proposed Development Objective(s)**|**Proposed Development Objective(s)**|**Proposed Development Objective(s)**|**Proposed Development Objective(s)**|**Proposed Development Objective(s)**|**Proposed Development Objective(s)**|**Proposed Development Objective(s)**|**Proposed Development Objective(s)**|**Proposed Development Objective(s)**|**Proposed Development Objective(s)**|**Proposed Development Objective(s)**|**Proposed Development Objective(s)**|**Proposed Development Objective(s)**|**Proposed Development Objective(s)**|
|The proposed PDO is to enhance the capacity of participating urban areas to plan for sustainable urban
growth.|The proposed PDO is to enhance the capacity of participating urban areas to plan for sustainable urban
growth.|The proposed PDO is to enhance the capacity of participating urban areas to plan for sustainable urban
growth.|The proposed PDO is to enhance the capacity of participating urban areas to plan for sustainable urban
growth.|The proposed PDO is to enhance the capacity of participating urban areas to plan for sustainable urban
growth.|The proposed PDO is to enhance the capacity of participating urban areas to plan for sustainable urban
growth.|The proposed PDO is to enhance the capacity of participating urban areas to plan for sustainable urban
growth.|The proposed PDO is to enhance the capacity of participating urban areas to plan for sustainable urban
growth.|The proposed PDO is to enhance the capacity of participating urban areas to plan for sustainable urban
growth.|The proposed PDO is to enhance the capacity of participating urban areas to plan for sustainable urban
growth.|The proposed PDO is to enhance the capacity of participating urban areas to plan for sustainable urban
growth.|The proposed PDO is to enhance the capacity of participating urban areas to plan for sustainable urban
growth.|The proposed PDO is to enhance the capacity of participating urban areas to plan for sustainable urban
growth.|The proposed PDO is to enhance the capacity of participating urban areas to plan for sustainable urban
growth.|The proposed PDO is to enhance the capacity of participating urban areas to plan for sustainable urban
growth.|The proposed PDO is to enhance the capacity of participating urban areas to plan for sustainable urban
growth.|
|**Components**|**Components**|**Components**|**Components**|**Components**|**Components**|**Components**|**Components**|**Components**|**Components**|**Components**|**Components**|**Components**|**Components**|**Components**|**Components**|
|**Component Name**|**Component Name**|**Component Name**|**Component Name**|**Component Name**|**Component Name**|**Component Name**|**Component Name**|**Component Name**|**Component Name**|**Cost (USD Millions)**|**Cost (USD Millions)**|**Cost (USD Millions)**|**Cost (USD Millions)**|**Cost (USD Millions)**|**Cost (USD Millions)**|
|Component No. 1: Planning for Sustainable Urban Growth|Component No. 1: Planning for Sustainable Urban Growth|Component No. 1: Planning for Sustainable Urban Growth|Component No. 1: Planning for Sustainable Urban Growth|Component No. 1: Planning for Sustainable Urban Growth|Component No. 1: Planning for Sustainable Urban Growth|Component No. 1: Planning for Sustainable Urban Growth|Component No. 1: Planning for Sustainable Urban Growth|Component No. 1: Planning for Sustainable Urban Growth|Component No. 1: Planning for Sustainable Urban Growth|4.55|4.55|4.55|4.55|4.55|4.55|
|Component No. 2: Project Implementation Support and
Management Cost|Component No. 2: Project Implementation Support and
Management Cost|Component No. 2: Project Implementation Support and
Management Cost|Component No. 2: Project Implementation Support and
Management Cost|Component No. 2: Project Implementation Support and
Management Cost|Component No. 2: Project Implementation Support and
Management Cost|Component No. 2: Project Implementation Support and
Management Cost|Component No. 2: Project Implementation Support and
Management Cost|Component No. 2: Project Implementation Support and
Management Cost|Component No. 2: Project Implementation Support and
Management Cost|0.45|0.45|0.45|0.45|0.45|0.45|
|**Systematic Operations Risk- Rating Tool (SORT)**|**Systematic Operations Risk- Rating Tool (SORT)**|**Systematic Operations Risk- Rating Tool (SORT)**|**Systematic Operations Risk- Rating Tool (SORT)**|**Systematic Operations Risk- Rating Tool (SORT)**|**Systematic Operations Risk- Rating Tool (SORT)**|**Systematic Operations Risk- Rating Tool (SORT)**|**Systematic Operations Risk- Rating Tool (SORT)**|**Systematic Operations Risk- Rating Tool (SORT)**|**Systematic Operations Risk- Rating Tool (SORT)**|**Systematic Operations Risk- Rating Tool (SORT)**|**Systematic Operations Risk- Rating Tool (SORT)**|**Systematic Operations Risk- Rating Tool (SORT)**|**Systematic Operations Risk- Rating Tool (SORT)**|**Systematic Operations Risk- Rating Tool (SORT)**|**Systematic Operations Risk- Rating Tool (SORT)**|
|**Risk Category**|**Risk Category**|**Risk Category**|**Risk Category**|**Risk Category**|**Risk Category**|**Risk Category**|**Risk Category**|**Risk Category**|**Risk Category**|**Risk Category**|**Risk Category**|**Risk Category**|**Rating**|**Rating**|**Rating**|
|1. Political and Governance|1. Political and Governance|1. Political and Governance|1. Political and Governance|1. Political and Governance|1. Political and Governance|1. Political and Governance|1. Political and Governance|1. Political and Governance|1. Political and Governance|1. Political and Governance|1. Political and Governance|1. Political and Governance|Substantial|Substantial|Substantial|
|2. Macroeconomic|2. Macroeconomic|2. Macroeconomic|2. Macroeconomic|2. Macroeconomic|2. Macroeconomic|2. Macroeconomic|2. Macroeconomic|2. Macroeconomic|2. Macroeconomic|2. Macroeconomic|2. Macroeconomic|2. Macroeconomic|High|High|High|
|3. Sector Strategies and Policies|3. Sector Strategies and Policies|3. Sector Strategies and Policies|3. Sector Strategies and Policies|3. Sector Strategies and Policies|3. Sector Strategies and Policies|3. Sector Strategies and Policies|3. Sector Strategies and Policies|3. Sector Strategies and Policies|3. Sector Strategies and Policies|3. Sector Strategies and Policies|3. Sector Strategies and Policies|3. Sector Strategies and Policies|Substantial|Substantial|Substantial|
|4. Technical Design of Project or Program|4. Technical Design of Project or Program|4. Technical Design of Project or Program|4. Technical Design of Project or Program|4. Technical Design of Project or Program|4. Technical Design of Project or Program|4. Technical Design of Project or Program|4. Technical Design of Project or Program|4. Technical Design of Project or Program|4. Technical Design of Project or Program|4. Technical Design of Project or Program|4. Technical Design of Project or Program|4. Technical Design of Project or Program|Moderate|Moderate|Moderate|
|5. Institutional Capacity for Implementation and Sustainability|5. Institutional Capacity for Implementation and Sustainability|5. Institutional Capacity for Implementation and Sustainability|5. Institutional Capacity for Implementation and Sustainability|5. Institutional Capacity for Implementation and Sustainability|5. Institutional Capacity for Implementation and Sustainability|5. Institutional Capacity for Implementation and Sustainability|5. Institutional Capacity for Implementation and Sustainability|5. Institutional Capacity for Implementation and Sustainability|5. Institutional Capacity for Implementation and Sustainability|5. Institutional Capacity for Implementation and Sustainability|5. Institutional Capacity for Implementation and Sustainability|5. Institutional Capacity for Implementation and Sustainability|Substantial|Substantial|Substantial|
|6. Fiduciary|6. Fiduciary|6. Fiduciary|6. Fiduciary|6. Fiduciary|6. Fiduciary|6. Fiduciary|6. Fiduciary|6. Fiduciary|6. Fiduciary|6. Fiduciary|6. Fiduciary|6. Fiduciary|Substantial|Substantial|Substantial|
|7. Environment and Social|7. Environment and Social|7. Environment and Social|7. Environment and Social|7. Environment and Social|7. Environment and Social|7. Environment and Social|7. Environment and Social|7. Environment and Social|7. Environment and Social|7. Environment and Social|7. Environment and Social|7. Environment and Social|Moderate|Moderate|Moderate|


Input:
|8. Stakeholders|Col2|Col3|Col4|Moderate|Col6|Col7|Col8|
|---|---|---|---|---|---|---|---|
|9. Other|9. Other|9. Other|9. Other|||||
|**OVERALL**|**OVERALL**|**OVERALL**|**OVERALL**|Substantial|Substantial|Substantial|Substantial|
|**Compliance**|**Compliance**|**Compliance**|**Compliance**|**Compliance**|**Compliance**|**Compliance**|**Compliance**|
|**Policy**|**Policy**|**Policy**|**Policy**|**Policy**|**Policy**|**Policy**|**Policy**|
|Does the project depart from the CAS in content or in other significant
respects?|Does the project depart from the CAS in content or in other significant
respects?|Does the project depart from the CAS in content or in other significant
respects?|Does the project depart from the CAS in content or in other significant
respects?|Does the project depart from the CAS in content or in other significant
respects?|Yes [  ]
No [ X ]|Yes [  ]
No [ X ]|Yes [  ]
No [ X ]|
|Does the project require any waivers of Bank policies?
Yes [  ]
No [ X ]|Does the project require any waivers of Bank policies?
Yes [  ]
No [ X ]|Does the project require any waivers of Bank policies?
Yes [  ]
No [ X ]|Does the project require any waivers of Bank policies?
Yes [  ]
No [ X ]|Does the project require any waivers of Bank policies?
Yes [  ]
No [ X ]|Does the project require any waivers of Bank policies?
Yes [  ]
No [ X ]|Does the project require any waivers of Bank policies?
Yes [  ]
No [ X ]|Does the project require any waivers of Bank policies?
Yes [  ]
No [ X ]|
|Have these been approved by Bank management?|Have these been approved by Bank management?|Have these been approved by Bank management?|Have these been approved by Bank management?|Have these been approved by Bank management?|Yes [  ]
No [  ]|Yes [  ]
No [  ]|Yes [  ]
No [  ]|
|Is approval for any policy waiver sought from the Board?|Is approval for any policy waiver sought from the Board?|Is approval for any policy waiver sought from the Board?|Is approval for any policy waiver sought from the Board?|Is approval for any policy waiver sought from the Board?|Yes [  ]
No [ X ]|Yes [  ]
No [ X ]|Yes [  ]
No [ X ]|
|Does the project meet the Regional criteria for readiness for implementation?|Does the project meet the Regional criteria for readiness for implementation?|Does the project meet the Regional criteria for readiness for implementation?|Does the project meet the Regional criteria for readiness for implementation?|Does the project meet the Regional criteria for readiness for implementation?|Yes [ X ]
No [  ]|Yes [ X ]
No [  ]|Yes [ X ]
No [  ]|
|**Safeguard Policies Triggered by the Project**
**Yes**
**No**|**Safeguard Policies Triggered by the Project**
**Yes**
**No**|**Safeguard Policies Triggered by the Project**
**Yes**
**No**|**Safeguard Policies Triggered by the Project**
**Yes**
**No**|**Safeguard Policies Triggered by the Project**
**Yes**
**No**|**Safeguard Policies Triggered by the Project**
**Yes**
**No**|**Safeguard Policies Triggered by the Project**
**Yes**
**No**|**Safeguard Policies Triggered by the Project**
**Yes**
**No**|
|Environmental Assessment OP/BP 4.01|Environmental Assessment OP/BP 4.01|Environmental Assessment OP/BP 4.01|**X**|**X**|**X**|**X**||
|Natural Habitats OP/BP 4.04|Natural Habitats OP/BP 4.04|Natural Habitats OP/BP 4.04|||||**X**|
|Forests OP/BP 4.36|Forests OP/BP 4.36|Forests OP/BP 4.36|||||**X**|
|Pest Management OP 4.09|Pest Management OP 4.09|Pest Management OP 4.09|||||**X**|
|Physical Cultural Resources OP/BP 4.11|Physical Cultural Resources OP/BP 4.11|Physical Cultural Resources OP/BP 4.11|||||**X**|
|Indigenous Peoples OP/BP 4.10|Indigenous Peoples OP/BP 4.10|Indigenous Peoples OP/BP 4.10|||||**X**|
|Involuntary Resettlement OP/BP 4.12|Involuntary Resettlement OP/BP 4.12|Involuntary Resettlement OP/BP 4.12|||||**X**|
|Safety of Dams OP/BP 4.37|Safety of Dams OP/BP 4.37|Safety of Dams OP/BP 4.37|||||**X**|
|Projects on International Waterways OP/BP 7.50|Projects on International Waterways OP/BP 7.50|Projects on International Waterways OP/BP 7.50|||||**X**|
|Projects in Disputed Areas OP/BP 7.60|Projects in Disputed Areas OP/BP 7.60|Projects in Disputed Areas OP/BP 7.60|||||**X**|
|**Legal Covenants**|**Legal Covenants**|**Legal Covenants**|**Legal Covenants**|**Legal Covenants**|**Legal Covenants**|**Legal Covenants**|**Legal Covenants**|
|**Name**|**Recurrent**|**Due Date**|**Due Date**|**Due Date**|**Due Date**|**Frequency**|**Frequency**|
|Additional Remedies (Article 4.01 of the
Grant Agreement)||||||||
|**Description of Covenant**|**Description of Covenant**|**Description of Covenant**|**Description of Covenant**|**Description of Covenant**|**Description of Covenant**|**Description of Covenant**|**Description of Covenant**|
|The Additional Events of Suspension referred to in Section 4.02 (k) of the Standard Conditions consist
of the following:
(a)
The Recipient has taken or permitted to be taken any action which would prevent or interfere
with the performance by the Project Implementing Entity of its obligations under the Project Agreement.
(b)
The Project Implementing Entity has failed to perform any obligation under the Project
Agreement.
(c)
IBRD or IDA has declared the Project Implementing Entity ineligible to receive proceeds of any
financing made by IBRD or IDA, or otherwise to participate in the preparation or implementation of any
project financed in whole or in part by IBRD or IDA (including as administrator of funds provided by|The Additional Events of Suspension referred to in Section 4.02 (k) of the Standard Conditions consist
of the following:
(a)
The Recipient has taken or permitted to be taken any action which would prevent or interfere
with the performance by the Project Implementing Entity of its obligations under the Project Agreement.
(b)
The Project Implementing Entity has failed to perform any obligation under the Project
Agreement.
(c)
IBRD or IDA has declared the Project Implementing Entity ineligible to receive proceeds of any
financing made by IBRD or IDA, or otherwise to participate in the preparation or implementation of any
project financed in whole or in part by IBRD or IDA (including as administrator of funds provided by|The Additional Events of Suspension referred to in Section 4.02 (k) of the Standard Conditions consist
of the following:
(a)
The Recipient has taken or permitted to be taken any action which would prevent or interfere
with the performance by the Project Implementing Entity of its obligations under the Project Agreement.
(b)
The Project Implementing Entity has failed to perform any obligation under the Project
Agreement.
(c)
IBRD or IDA has declared the Project Implementing Entity ineligible to receive proceeds of any
financing made by IBRD or IDA, or otherwise to participate in the preparation or implementation of any
project financed in whole or in part by IBRD or IDA (including as administrator of funds provided by|The Additional Events of Suspension referred to in Section 4.02 (k) of the Standard Conditions consist
of the following:
(a)
The Recipient has taken or permitted to be taken any action which would prevent or interfere
with the performance by the Project Implementing Entity of its obligations under the Project Agreement.
(b)
The Project Implementing Entity has failed to perform any obligation under the Project
Agreement.
(c)
IBRD or IDA has declared the Project Implementing Entity ineligible to receive proceeds of any
financing made by IBRD or IDA, or otherwise to participate in the preparation or implementation of any
project financed in whole or in part by IBRD or IDA (including as administrator of funds provided by|The Additional Events of Suspension referred to in Section 4.02 (k) of the Standard Conditions consist
of the following:
(a)
The Recipient has taken or permitted to be taken any action which would prevent or interfere
with the performance by the Project Implementing Entity of its obligations under the Project Agreement.
(b)
The Project Implementing Entity has failed to perform any obligation under the Project
Agreement.
(c)
IBRD or IDA has declared the Project Implementing Entity ineligible to receive proceeds of any
financing made by IBRD or IDA, or otherwise to participate in the preparation or implementation of any
project financed in whole or in part by IBRD or IDA (including as administrator of funds provided by|The Additional Events of Suspension referred to in Section 4.02 (k) of the Standard Conditions consist
of the following:
(a)
The Recipient has taken or permitted to be taken any action which would prevent or interfere
with the performance by the Project Implementing Entity of its obligations under the Project Agreement.
(b)
The Project Implementing Entity has failed to perform any obligation under the Project
Agreement.
(c)
IBRD or IDA has declared the Project Implementing Entity ineligible to receive proceeds of any
financing made by IBRD or IDA, or otherwise to participate in the preparation or implementation of any
project financed in whole or in part by IBRD or IDA (including as administrator of funds provided by|The Additional Events of Suspension referred to in Section 4.02 (k) of the Standard Conditions consist
of the following:
(a)
The Recipient has taken or permitted to be taken any action which would prevent or interfere
with the performance by the Project Implementing Entity of its obligations under the Project Agreement.
(b)
The Project Implementing Entity has failed to perform any obligation under the Project
Agreement.
(c)
IBRD or IDA has declared the Project Implementing Entity ineligible to receive proceeds of any
financing made by IBRD or IDA, or otherwise to participate in the preparation or implementation of any
project financed in whole or in part by IBRD or IDA (including as administrator of funds provided by|The Additional Events of Suspension referred to in Section 4.02 (k) of the Standard Conditions consist
of the following:
(a)
The Recipient has taken or permitted to be taken any action which would prevent or interfere
with the performance by the Project Implementing Entity of its obligations under the Project Agreement.
(b)
The Project Implementing Entity has failed to perform any obligation under the Project
Agreement.
(c)
IBRD or IDA has declared the Project Implementing Entity ineligible to receive proceeds of any
financing made by IBRD or IDA, or otherwise to participate in the preparation or implementation of any
project financed in whole or in part by IBRD or IDA (including as administrator of funds provided by|


Input:
|another financier), as a result of (i) a determination by IBRD or IDA that the Project Implementing
Entity has engaged in fraudulent, corrupt, coercive or collusive practices in connection with the use of
the proceeds of any financing made by IBRD or IDA; and/or (ii) a declaration by another financier that
the Project Implementing Entity is ineligible to receive proceeds of financings made by such financier or
otherwise to participate in the preparation or implementation of any project financed in whole or in part
by such financier as a result of a determination by such financier that the Project Implementing Entity
has engaged in fraudulent, corrupt, coercive or collusive practices in connection with the use of the
proceeds of a financing made by such financier.
(d) As a result of events which have occurred after the date of this Agreement, an extraordinary
situation has arisen which makes it improbable that the Project Implementing Entity will be able to
perform its obligations under the Project Agreement.
(e) The Project Implementing Entity’s Legislation has been amended, suspended, abrogated,
repealed or waived so as to affect materially and adversely the ability of the Project Implementing Entity
to perform any of its obligations under the Project Agreement.
(f) Event prior to Effectiveness. The World Bank has determined after the Effective Date referred to
in Section 5.03 of this Agreement that prior to such date but after the date of this Agreement, an event
has occurred which would have entitled the World Bank to suspend the Recipient's right to make
withdrawals from the Grant Account if this Agreement had been effective on the date such event
occurred.|Col2|Col3|Col4|Col5|Col6|
|---|---|---|---|---|---|
|**Conditions**|**Conditions**|**Conditions**|**Conditions**|**Conditions**|**Conditions**|
|**Source Of Fund**|**Name**|**Name**|**Name**|**Type**|**Type**|
||Effectiveness condition as per article 5.1 (a,b)|Effectiveness condition as per article 5.1 (a,b)|Effectiveness condition as per article 5.1 (a,b)|Effectiveness|Effectiveness|
|**Description of Condition**|**Description of Condition**|**Description of Condition**|**Description of Condition**|**Description of Condition**|**Description of Condition**|
|(a) The execution and delivery of this Agreement on behalf of the Recipient and of the Project
Agreement on behalf of the Project Implementing Entity have been duly authorized or ratified by all
necessary governmental and corporate action
(b) The Subsidiary Agreement referred to in Section I.A of Schedule 2 to this Agreement has been
executed on behalf of the Recipient and the PA.|(a) The execution and delivery of this Agreement on behalf of the Recipient and of the Project
Agreement on behalf of the Project Implementing Entity have been duly authorized or ratified by all
necessary governmental and corporate action
(b) The Subsidiary Agreement referred to in Section I.A of Schedule 2 to this Agreement has been
executed on behalf of the Recipient and the PA.|(a) The execution and delivery of this Agreement on behalf of the Recipient and of the Project
Agreement on behalf of the Project Implementing Entity have been duly authorized or ratified by all
necessary governmental and corporate action
(b) The Subsidiary Agreement referred to in Section I.A of Schedule 2 to this Agreement has been
executed on behalf of the Recipient and the PA.|(a) The execution and delivery of this Agreement on behalf of the Recipient and of the Project
Agreement on behalf of the Project Implementing Entity have been duly authorized or ratified by all
necessary governmental and corporate action
(b) The Subsidiary Agreement referred to in Section I.A of Schedule 2 to this Agreement has been
executed on behalf of the Recipient and the PA.|(a) The execution and delivery of this Agreement on behalf of the Recipient and of the Project
Agreement on behalf of the Project Implementing Entity have been duly authorized or ratified by all
necessary governmental and corporate action
(b) The Subsidiary Agreement referred to in Section I.A of Schedule 2 to this Agreement has been
executed on behalf of the Recipient and the PA.|(a) The execution and delivery of this Agreement on behalf of the Recipient and of the Project
Agreement on behalf of the Project Implementing Entity have been duly authorized or ratified by all
necessary governmental and corporate action
(b) The Subsidiary Agreement referred to in Section I.A of Schedule 2 to this Agreement has been
executed on behalf of the Recipient and the PA.|
|**Source Of Fund**|**Name**|**Name**|**Name**|**Type**|**Type**|
||Effectiveness condition as per article 5.1 (c,d)|Effectiveness condition as per article 5.1 (c,d)|Effectiveness condition as per article 5.1 (c,d)|Effectiveness|Effectiveness|
|**Description of Condition**|**Description of Condition**|**Description of Condition**|**Description of Condition**|**Description of Condition**|**Description of Condition**|
|(c) The On-Granting Agreement referred to in Section I.A of Schedule 2 to this Agreement has been
executed on behalf of the Palestinian Authority and the Project Implementing Entity.
(d) The Recipient has adopted a Project Operational Manual in form and substance satisfactory to the
World Bank.|(c) The On-Granting Agreement referred to in Section I.A of Schedule 2 to this Agreement has been
executed on behalf of the Palestinian Authority and the Project Implementing Entity.
(d) The Recipient has adopted a Project Operational Manual in form and substance satisfactory to the
World Bank.|(c) The On-Granting Agreement referred to in Section I.A of Schedule 2 to this Agreement has been
executed on behalf of the Palestinian Authority and the Project Implementing Entity.
(d) The Recipient has adopted a Project Operational Manual in form and substance satisfactory to the
World Bank.|(c) The On-Granting Agreement referred to in Section I.A of Schedule 2 to this Agreement has been
executed on behalf of the Palestinian Authority and the Project Implementing Entity.
(d) The Recipient has adopted a Project Operational Manual in form and substance satisfactory to the
World Bank.|(c) The On-Granting Agreement referred to in Section I.A of Schedule 2 to this Agreement has been
executed on behalf of the Palestinian Authority and the Project Implementing Entity.
(d) The Recipient has adopted a Project Operational Manual in form and substance satisfactory to the
World Bank.|(c) The On-Granting Agreement referred to in Section I.A of Schedule 2 to this Agreement has been
executed on behalf of the Palestinian Authority and the Project Implementing Entity.
(d) The Recipient has adopted a Project Operational Manual in form and substance satisfactory to the
World Bank.|
|**Team Composition**|**Team Composition**|**Team Composition**|**Team Composition**|**Team Composition**|**Team Composition**|
|**Bank Staff**|**Bank Staff**|**Bank Staff**|**Bank Staff**|**Bank Staff**|**Bank Staff**|
|**Name**|**Role**|**Title**|**Specialization**|**Specialization**|**Unit**|
|Noriko Oe|Team Leader
(ADM
Responsible)|Urban Specialist|||GSU11|
|Lina Fathallah Rajoub|Procurement
Specialist (ADM|Senior Procurement
Specialist|Procurement|Procurement|GGO05|


Input:
|Col1|Col2|Responsible)|Col4|Col5|Col6|Col7|Col8|Col9|Col10|
|---|---|---|---|---|---|---|---|---|---|
|Nadi Yosef Mashni|Nadi Yosef Mashni|Financial
Management
Specialist|Financial
Management
Specialist|Financial
Management
Specialist|Financial
Management
Specialist|Financial
Management
Specialist|||GGO23|
|Andrianirina Michel Eric
Ranjeva|Andrianirina Michel Eric
Ranjeva|Team Member|Team Member|Finance Officer|Finance Officer|Finance Officer|||WFALA|
|Bjorn Philipp|Bjorn Philipp|Team Member|Team Member|Program Leader|Program Leader|Program Leader|||MNC04|
|Chandan Deuskar|Chandan Deuskar|Team Member|Team Member|Consultant|Consultant|Consultant|||GSU10|
|Dania Mosa|Dania Mosa|Safeguards
Specialist|Safeguards
Specialist|Consultant|Consultant|Consultant|Social Safeguard|Social Safeguard|GEN07|
|Ellen Hamilton|Ellen Hamilton|Team Member|Team Member|Lead Urban
Specialist|Lead Urban
Specialist|Lead Urban
Specialist|||GSU11|
|Hana Salah|Hana Salah|Safeguards
Specialist|Safeguards
Specialist|Consultant|Consultant|Consultant|Social Safeguard|Social Safeguard|GSU04|
|Maha Muhammad Bali|Maha Muhammad Bali|Team Member|Team Member|Senior Program
Assistant|Senior Program
Assistant|Senior Program
Assistant|||MNCGZ|
|Mei Wang|Mei Wang|Counsel|Counsel|Senior Counsel|Senior Counsel|Senior Counsel|||LEGAM|
|Mohammad Nadeem|Mohammad Nadeem|Counsel|Counsel|Legal Analyst|Legal Analyst|Legal Analyst|||LEGAM|
|Rafeef Abdel Razek|Rafeef Abdel Razek|Team Member|Team Member|Operations Officer|Operations Officer|Operations Officer|||MNC04|
|Ruxandra Costache|Ruxandra Costache|Team Member|Team Member|Senior Counsel|Senior Counsel|Senior Counsel|||LEGLE|
|Sophie Hans-Moevi|Sophie Hans-Moevi|Team Member|Team Member|Sr Program Asst.|Sr Program Asst.|Sr Program Asst.|||AFSEC|
|Tracy Hart|Tracy Hart|Safeguards
Specialist|Safeguards
Specialist|Senior
Environmental
Specialist|Senior
Environmental
Specialist|Senior
Environmental
Specialist|||GEN05|
|Zeyad Abu-Hassanein|Zeyad Abu-Hassanein|Safeguards
Specialist|Safeguards
Specialist|Senior
Environmental
Specialist|Senior
Environmental
Specialist|Senior
Environmental
Specialist|Environmental
Safeguard|Environmental
Safeguard|GEN05|
|**Extended Team**|**Extended Team**|**Extended Team**|**Extended Team**|**Extended Team**|**Extended Team**|**Extended Team**|**Extended Team**|**Extended Team**|**Extended Team**|
|**Name**|**Name**|**Title**|**Title**|**Title**|**Office Phone**|**Office Phone**|**Office Phone**|**Location**|**Location**|
|||||||||||
|**Locations**|**Locations**|**Locations**|**Locations**|**Locations**|**Locations**|**Locations**|**Locations**|**Locations**|**Locations**|
|**Country**|**First**
**Administrative**
**Division**|**First**
**Administrative**
**Division**|**Location**|**Location**|**Location**|**Planned**|**Actual**|**Comments**|**Comments**|
|West Bank
and Gaza|Gaza Strip|Gaza Strip|Gaza|Gaza|Gaza|**X**||Gaza City|Gaza City|
|West Bank
and Gaza|West Bank|West Bank|Ramallah|Ramallah|Ramallah|**X**||Ramallah Area|Ramallah Area|
|West Bank|West Bank|West Bank|Nablus|Nablus|Nablus|**X**||Nablus Area|Nablus Area|

x


Input:
I. **STRATEGIC CONTEXT**

**A.** **Country Context**

1. The Palestinian economy has begun to recover from the 2014 recession which resulted
from the latest war in Gaza. The economy is estimated to have grown by 3.5 percent in 2015,
in real terms. Reconstruction efforts provided a boost to the Gaza economy where real Gross
Domestic Product growth amounted to 6.8 percent in 2015, mainly driven by the
construction, wholesale, and retail trade sectors. Meanwhile, real GDP growth in the West
Bank slowed to 2.5 percent in 2015 – 2.7 percentage points lower than its 2014 level –
mainly due to a significant decline in foreign aid. The unemployment rate in Palestine
remains persistently high with a quarter of the labor force out of work. Given that poverty is
highly correlated with labor market outcomes, it is not surprising that 16 percent of the
Palestinian population lives below the USD 5.50 a day poverty line according to preliminary
estimates by the World Bank. Despite the challenging economic conditions, the PA managed
to reduce the overall fiscal deficit from 12.5 percent in 2014 to 11.4 percent of the GDP in
2015. However, donor aid steeply declined by one-third, resulting in a USD 650 million
financing gap. The PA has resorted to accumulation of arrears and domestic borrowing to
cover the gap.


Input:
urban growth. Building often precedes planning and service delivery, resulting in inefficient
land use and infrastructure development. New “neighborhoods” are built across multiple
administrative borders leading to uneven service delivery, while land connected to existing
public services within central urban locations remains vacant and undeveloped. LGUs are
reticent to address the unused land within central areas, and have limited knowledge of tools
to facilitate efficient land use or to promote smart and compact growth. They are forced to
respond to expanding peripheries and unplanned built-up space with _ad hoc_ service and
infrastructure provision, as well as post-construction, _de facto_ planning within new or
updated master plans. This also results in the already financially beleaguered LGUs
providing costly services to newly-expanded areas or relying on donors or individual citizens
to do so, rather than allowing for densification of under-utilized land. Moreover, the system
of zoning classification for residential areas (type A-D) is not equally applied across LGUs,
nor is it based on defined scientific standards – geographic location, market value of real
estate, available land in relation to population size and growth percentage – when
determining classification type.


Input:
8. The World Bank, in partnership with other Development Partners (DPs), has been
providing institutional, policy, and investment support through an integrated and
programmatic approach to the Palestinian Local Government (LG) sector. The proposed
Integrated Cities and Urban Development (ICUD) project is an integral part of the
programmatic engagement in the Palestinian LG sector consolidating the Bank’s
interventions and providing a structured approach for DPs to align their support. The
Municipal Development Program (MDP), at the center of the Bank’s LG sector support, has
been following a programmatic approach that was complemented by a number of stand-alone
interventions. These include: the Village and Neighborhood Development Project (VNDP) to
support marginalized communities through a Community Driven Development approach; the
Palestinian NGO Project (PNGO) to provide assistance to civil society and basic social
service delivery; Southern Solid Waste Management projects (SSWMP) in the West Bank
and the Gaza Solid Waste Management Project (SWMP) to establish and support the
operation of sanitary landfills; and the Second Land Administration Project (LAP-2) to
improve land administration in a pilot area. Those projects have either already closed
(VNDP); or scheduled to close in the near future (PNGO and SSWMP); or have already been
cancelled because of limited results (LAP-2).

Village and Neighborhood Development Project (VNDP)

Southern Solid Waste Management projects (SSWMP)

Gaza Solid Waste Management Project (SWMP)


Input:
9. In line with the PA’s vision to support the Palestinian LG sector in a comprehensive and
territorially integrated way that addresses the diverse needs of local authorities, these
interventions are now being streamlined into three highly complementary operations with the
vision to converge into one single LG Sector Program in the long-term. The MDP will soon
enter into its third phase currently under design. MDP-3 would put additional emphasis on
financing larger scale capital investments on top of the regular performance-based grant
allocations. The proposed ICUD would be expected to converge with MDP in the medium
term by providing regional growth frameworks in which potential large scale investments can
be identified and funded under MDP-3. Similarly, the Local Governance and Services
Improvement Program (LGSIP) has been developed following the MDP model to serve
village councils (VCs) under which DPs pool their resources under one single program. MDP
will remain the core LG program, onboarding those LGUs that consolidate with the support
of LGSIP to graduate to municipalities and meet the minimum capacity needs of an eligible
MDP municipality. This will allow LGSIP to merge with MDP in the long run.
Complementary to both MDP and LGSIP, the proposed ICUD will work with the LGUs of
the leading urban areas at the metropolitan level, to address their specific constraints in
extending basic services to their rapidly growing population and in facilitating economic
development. The proposed ICUD will strengthen the capacity of these urban areas to plan
for sustainable urban growth, hence enabling them to create the regional economic growth
frameworks under which metropolitan level investments can be substantiated and funded by
the next generation of MDP.


Input:
10. Interventions in the LG sector are complemented by World Bank Group operations
targeting the private sector. The recently approved Finance-for-Jobs (FforJ) Project supports
private sector stakeholders to mobilize private investment financing in high potential sectors
and generate job opportunities for Palestine. IFC has helped to establish a program for
affordable home loans to lower and middle income Palestinians through the Affordable
Mortgage and Loan Corporation (AMAL). However, a gap and emerging need remain to

4

Affordable Mortgage and Loan Corporation (AMAL)


Input:
13. The proposed PDO is to enhance the capacity of participating urban areas to plan for
sustainable urban growth.

5


Input:
15. The population estimate of these urban areas as they currently stand is 1,340,425 [5],
representing 28 percent of the total population of West Bank and Gaza and includes 15
municipalities, 13 VCs, and 6 refugee camps. In these urban areas, the MoLG District
Offices represent the interests of land outside LGU administrative boundaries in the West
Bank. However, the precise number of LGUs that would benefit from the proposed ICUD is
difficult to determine prior to the start of the proposed project. It will be guided by their
commitment to formulate intra-urban area coordination mechanisms and participate in the
proposed project activities through the mechanisms, as well as spatial economic analysis to
be conducted during project implementation.

**C.** **PDO Level Results Indicators**

16. Key performance indicators are: (i) number of urban areas that develop cost-analyzed
scenarios for urban growth and disclose them to the public; and (ii) number of urban areas
whose member LGUs’ plans are aligned to the selected growth scenario at the urban area
level.

---
[5] Based on Palestinian Central Bureau of Statistics predicted populations for 2016.


Input:
3 The urban agglomerations are defined as built-up urban areas extending across existing municipal and village
council boundaries with common labor and housing markets, and were identified through spatial analysis of urban
extent, and in consultation with MoLG and selected LGUs.
4 The Gaza strip is very population dense which makes identifying a clear agglomeration difficult. After
consultations with Gaza City’s Head of Planning and taking into account the different constraints of working across
administrative boundaries, as well as the huge and very dense population in Gaza City proper, it was agreed to focus
this support only on Gaza City. This will enable the authorities to better integrate and utilize forward looking growth
planning in their work, and also would support them in integrating different neighborhoods into the city’s planning.


Input:
III. **PROJECT DESCRIPTION**

**A.** **Project Components**

**Component 1: Planning for Sustainable Urban Growth.**

17. This component strengthens the institutional and technical capacity of participating urban
areas to plan for sustainable urban growth through, _inter alia_, the provision of Technical
Assistance (TA), goods, and training. To ensure a robust process of collaboration between
the urban areas in the participating LGUs and strong ownership and commitment, this
component will first facilitate intra-urban area coordination mechanisms to be operational in
all of the participating urban areas except for Gaza City that is comprised of a single LGU.
Through the intra-urban area coordination mechanisms, the participating urban areas in the
West Bank will be supported to conduct urban growth planning. The objective of capacity
development support for urban growth planning is to enable the areas to respond more
efficiently to the needs of their growing populations and private sector with more sustainably
and well-planned urban spaces and infrastructure.


Input:
18. _Sub-Component 1: Structured capacity development support for urban growth planning_ .
This sub-component will assist in equipping the urban areas with, _inter alia_, the necessary
information, tools, and analysis to achieve four milestones of urban growth planning: (i)
establish and actively maintain intra-urban area coordination mechanisms; (ii) complete
baseline assessment of existing urban extent; (iii) complete exercise to develop cost-analyzed
urban growth scenarios, and to disclose them to the public; and (iv) modify respective
member LGUs’ plans based on the optimum urban growth scenario selected at the urban area
level.


Input:
**Component 2: Project Implementation Support and Management Cost.**

21. This component will finance the training, operating costs, and goods necessary for the
technical oversight and implementation support of the proposed project to be performed by,
_inter alia_, a Technical Supervisor (TS), Local Coordinator (LC) for Bethlehem, Hebron, and
Nablus areas, and the existing Local Coordinator for the Ramallah-Al Bireh-Bitounia (RAB)
Joint Coordination Unit. This component will also finance the management fee of the
Municipal Development and Lending Fund (MDLF) that will manage procurement, finance,
safeguards, and reporting for the proposed project based on technical inputs from the TS.

**B.** **Project Financing**

22. The proposed grant instrument is a Special Financing Grant from the Trust Fund for Gaza
and West Bank (TFGWB), in the amount of USD 5 million. A provision for retroactive
financing in the amount of USD 500,000 (10% of Grant amount) will be provided to the
MDLF to cover necessary financing, e.g. TS salary and initial operating costs.

**Project Costs and Financing**

|Project Components|Project
cost (USD
million)|TFGW
B (USD
million)|%
Financing|
|---|---|---|---|
|1. Planning for Sustainable Urban Growth.
2. Project implementation support and management cost.|4.55
0.45
|4.55
0.45|100
100|
|
** Total Financing Required**|5.0|5.0|100|

**C.** **Lessons Learned and Reflected in the Project Design**


Input:
24. Furthermore, findings from previous Bank support activities, such as TA to support
Public-Private Partnership (PPP) in municipal service delivery and a Housing Sector TA and
background studies prepared for the proposed project, were utilized to focus project activities
on commonly identified public sector generated bottlenecks for private sector-led economic
growth. One of the most prominent bottlenecks identified by the private sector is the lack of
serviced land as well as inefficient and unreliable public infrastructure. These bottlenecks are
one of the negative results of weak urban growth planning capacity, upon which the proposed
project activities will focus. Furthermore, the proposed project will focus on the capacity
development of Palestine’s leading urban areas in light of the fact that they have the largest
potential to serve as the engines of economic growth in Palestine.


Input:
25. The proposed project design also reflects key lessons from Bank supported Urbanization
Reviews (URs), including in the East Asia and Pacific Region [8] and TA operations in Central
America that supported urban planning in a capacity constrained environment similar to
Palestine. [9] Findings from the URs highlight that urban growth spillover from original
administrative boundaries into neighboring jurisdictions, which continue to be administered
separately, has emerged as a significant global challenge. While individual local
governments in urban areas will continue to play an important role in public service delivery,
the URs argue that it is nearly impossible to address issues related to urban transportation,
land and housing markets, infrastructure deficits, or economic development without
addressing the entirety of the urban area. To overcome the metropolitan administrative
fragmentation, the URs recommend a flexible approach, namely establishing functional
coordination mechanisms among local governments that can adapt to urban growth and
evolve with the changing needs of citizens. The proposed project reflects those
recommendations, but also the history of administrative re-organization in Palestine through
proposed intra-urban area coordination mechanisms. Lessons from the successful Bankfinanced Municipal Development Planning support for local governments in Belize
demonstrate the success of joint spatial planning capacity building. Such interventions
succeeded despite severely constrained initial capacity among Belizean local governments,
when they maintained simplicity, built on participatory planning processes, and focused on
core LG functions. The lessons informed the facilitation-based planning process and realistic
milestones and timeline adopted for this proposed project.

---
[8] East Asia’s Changing Urban Landscape – measuring a decade of spatial growth, World Bank Group, 2015.
[9] Municipal Development Project, Belize, P111928.


Input:
urban areas, respectively. As the proposed ICUD aims to develop urban areas’ capacity, all
TA will be participatory in nature, requiring regular technical inputs from the LGUs
throughout project implementation. Since the participating urban areas do not have a legal
body beyond respective LGUs to govern their adjoined built space, the proposed project will
support the areas to establish and maintain active LGU coordination mechanisms to
collectively deliver results. The mechanism will be modeled in line with the intra-municipal
coordination unit that the RAB urban area established to manage connectivity issues and
staffed with a coordinator. The mechanism will be tailored to each urban area based on the
degree of existent collaboration within each, but would not take the form of a legal
administrative body. LGUs’ membership per respective urban area can be adjusted taking
into consideration the specific needs to jointly develop urban growth scenarios and plans.


Input:
27. The joint coordination mechanism will be underpinned by the signing of a MoU by
member LGUs’ councils specifying, _inter alia_, the objective, division of labor, and focal
personnel appointment. The urban areas will receive facilitation support from the proposed
project to finalize the MoU and activate the coordination mechanism. A LC per urban area
would be recruited under the proposed project to facilitate all of project activities at the local
level for the three participating urban areas (Bethlehem, Hebron, and Nablus) that currently
lack intra-urban area coordination mechanisms. Gaza City would receive support from the
TS at the MoLG and MDLF, since no neighboring LGUs would be involved.


Input:
29. MDLF will be responsible for managing procurement, finance, safeguard, and reporting
for the proposed project based on technical inputs from the MoLG and urban areas. MDLF’s
role will include: project fund management; preparation of financial statements; organization
of the project audit; signing and issuance of all procurement notices, advertisements, and all
contracts with suppliers and consultants; environment and social safeguard management;
preparation and update of the Project Operational Manual (POM) based on technical input

10


Input:
from the MoLG; and compilation of results reporting and submission to the Bank. The
MDLF is an independent, quasi-governmental organization, governed by a Board of
Directors (the Board), which is the policy and strategy-setting authority responsible for
monitoring the direction and performance of the Fund. The Board is chaired by the Minister
of Local Government and comprises eleven members that are key stakeholders for
Palestine’s LG sector. The MDLF has demonstrated its capacity to administer donor-funded
projects since its establishment in 2005, including the multi-donor financed MDP-II. MDLF
is staffed with all key positions required to fulfill its fiduciary and safeguard management
roles for this project.

**B.** **Results Monitoring and Evaluation**


Input:
30. MDLF will be responsible for monitoring and evaluation activities under this proposed
project, including the achievement of the PDO, project outcomes, and physical, fiduciary,
and safeguard performance. The monitoring and evaluation activities will also include the
results that are not captured in the results framework, such as semi-annual feedback
collection from project participating urban areas and subsequent fine-tuning of project
activities. A structured assessment of capacity developed through this project is also planned
at the mid-term and end of the project. The MoLG will be responsible for providing technical
input to MDLF, namely all of the technical aspects of procurement, monitoring of progress
towards the PDO, and details of project activities. MDLF has been performing at a
satisfactory level to collect, aggregate, and analyze results achieved by municipalities under
the MDP-II and the MoLG under LGSIP as both programs’ implementing agency. The
MDLF has a robust monitoring and evaluation system that uses a web-based Program
Management Information System (PGMIS) as well as the Financial Management Information
System (FMIS) to automate data aggregation, storage, and presentation as part of a resultsbased Monitoring and Evaluation (M&E) system. The MDLF’s Results-Based Monitoring
Manual (RBMM) has aligned the individual objectives of the various MDLF-implemented
projects and programs with the PA’s NDP strategic objectives. As such, no additional
arrangements or staff are required for the M&E of this project.


Input:
**C.** **Sustainability**

31. At present, there is a gap in metropolitan area urban planning policy, practice, and
methodology in Palestine, and MoLG has indicated interest in developing capacity to
administer, advise on, and implement such practice in Palestine. The Ministry conducted a
study on metropolitan planning in 2007, which led to the establishment of the existing joint
coordination unit for the RAB area. However, MoLG was unable to go beyond this initial
study to mainstream metropolitan planning into government practice or policies. The
proposed ICUD therefore would provide the initial metropolitan/urban area growth planning
framework and local government driven implementation experience for MoLG to guide
metropolitan planning policy development. The MoLG planning unit will technically oversee
the proposed project activities and receive support to improve bottom-up metropolitan
planning. The urban growth planning exercise will also inform necessary reforms in the PA’s
own planning system, in addition to the inputs to developing LGUs urban area plans.

11


Input:
32. At the activity level, the intra-urban area collaboration mechanism, which will be either
established (Nablus and Hebron urban areas) or strengthened (Ramallah and Bethlehem
urban areas) during the early stages of this proposed project, will closely follow the lessons
and model of the RAB coordination unit in order to be sustainable. The proposed project will
facilitate the urban areas to identify the objective and focus for urban growth planning that
reflect the unique urban development challenges existent in each area, and hence ensure that
the planning process is fully owned by urban areas. The TA offered under this proposed
project will complement existing data and analysis, while the responsibility for meeting
respective planning milestones will lie with the urban areas. Parallel to the growth planning
process, the proposed project will support the urban areas to potentially carry out activities
for interim improvements in public space management and services, should they become
evident, to ensure the momentum of planning process and coordination mechanism. With
sustained ownership and achievement of growth planning milestones, it is anticipated that the
coordination mechanism envisioned could be sustained by the LGUs in a similar manner to
the current RAB unit. This unit is financed and hosted by member LGUs on a rotating basis.
Eventually, the savings and efficiency gains offered by the urban growth planning exercise
would motivate urban areas and the MoLG to integrate both coordination units and planning
tools supported by this proposed project into their regular planning and investment
prioritization.


Input:
|Systematic Operations Risk Rating Tool (SORT)|Col2|
|---|---|
|**Risk Category**
**Rating**|**Risk Category**
**Rating**|
|1. Political and Governance|Substantial|
|2. Macroeconomic|High|

12


Input:
etc. Additionally, MDLF, an implementing partner, while possessing a strong track record of
fulfilling fiduciary and safeguard responsibilities of Bank projects in the LGU sector in the
past, has not previously engaged in the area of urban spatial planning. The design of the
proposed project aims to mitigate these concerns by utilizing and strengthening existing
capacity at the MoLG Planning Department, RAB joint coordination unit sustained by three
municipalities in Ramallah urban area, and MoLG district offices in West Bank. The MoLG
Planning Department has supported a joint coordination mechanism in RAB and Bethlehem
urban areas, and facilitated consultative workshops in Nablus and Hebron areas for the same
purpose. In light of the ministry’s shortage of manpower and need to strengthen technical
knowledge on urban growth planning and bottom-up process of conducting the planning, the
proposed project will hire a TS to be based at MoLG Planning Department in Ramallah and
three LCs to be based at three participating urban areas in West Bank to assist MoLG
successfully oversee technical aspects of the proposed project. Gaza City would receive
support from the TS at the MoLG and MDLF, since no neighboring LGUs would be
involved.


Input:
39. _Procurement_ . The “Substantial” risk rating is based on the following: (i) MoLG’s
capacity to handle procurement for the TA, particularly the selection of consultants, and
management of consultants’ contracts requires strengthening; (ii) MDLF’s specific technical
expertise in metropolitan growth planning is weak as it has no prior experience on such
activities to be able to sufficiently control the quality of the TA themselves; and (iii) the lack
of proper coordination and interaction between MoLG and MDLF may cause procurement
and project implementation delays. Further deterioration of the Palestine’s political context
and the market situation may limit competition and discourage participation by qualified
international consultants. The corresponding mitigation measures are: (i) a Technical
Supervisor at MoLG and LCs in each participating urban area in West Bank except for
Ramallah area will be financed under the proposed project; (ii) the project implementation
structure and the detailed responsibilities and coordination mechanism of the various entities
shall be clearly defined in the POM, to be approved by the Bank prior to effectiveness; and
(iii) the project procurement plan shall be jointly drafted by MDLF and MoLG, ensuring an
adequate and realistic sequencing and prioritization of actions. The procurement plan has
been drafted and is currently under the Bank task team’s review.


Input:
the safeguards agent, MDLF, who has good experience with implementing ESMFs and is
familiar with Bank safeguards policies from previous and ongoing operations. The
environmental safeguards risk rating is “Moderate” due to the unknown impacts which might
result from future implementation of these TA packages.


Input:
41. The social risk is “Low". As the proposed ICUD only finances studies, training, and
goods, and there will be no land acquisition financed as part of this proposed project or added
at a later stage to this proposed project, the World Bank (WB) Policy on Involuntary
Resettlement, OP 4.12, will not apply to the proposed ICUD. This proposed project will not
recommend, endorse, or facilitate future pipeline investments that are on private land as well
as municipally owned land that has squatters/ users of the land for livelihoods. This is due to
the delays that would be incurred for the implementation of investments if OP 4.12 were
triggered. Additionally, because studies might lead to expropriation beyond the time of
World Bank involvement, Recommended Resettlement Policy Framework (RPF) Contents
were prepared and attached as an Annex to the ESMF manual to provide guidance on any
potential involuntary land acquisition after the lifetime of this proposed project.

VI. **APPRAISAL SUMMARY**

**A.** **Economic and Financial Analysis**


Input:
43. The World Bank’s added value to support this proposed project is evident based on the
Bank’s integrated and comprehensive LG sector support as well as its catalytic role for DPs
to come into the sector (e.g. MDP, LGSIP). The Bank also is in a position to contribute to the
in-depth knowledge developed through a series of previous TA, on the topic of PPPs in
municipal service and affordable housing unit provision in the West Bank. As this proposed
project sets out to address new challenges for Palestine’s LG sector, such as planning for
sustainable urban growth in major urban areas, the Bank is also well positioned to provide its
international experience from similar non-Palestinian projects.

15


Input:
45. Additionally, findings and recommendations from previous Bank-executed TA [10] were
utilized to identify common public sector-produced obstacles for PPPs seen in the examples
of affordable housing unit provision and municipal service delivery. While analyzing
different types of public-private collaborations, the analytical work indicated that the main
public-sector posed obstacles for greater private sector participation in urban development
stems from the lack of LGU capacity to anchor and rationalize public investment in a
coherent spatial planning framework that covers urban areas as a whole.

46. Further consultations with private sector stakeholders, namely Chambers of Commerce
and the IFC, confirmed that strengthening LGUs’ spatial planning capacity would be critical
to facilitate private sector-led economic growth. While public sector-posed obstacles are
wide-ranged, the private sector identified the shortage of land and sites connected to reliable
public services as well as inefficient and unreliable connectivity infrastructure among the
main obstacles to growth. Weak rationalization of public investment due to the LGUs’ lack
of coherent spatial planning capabilities, coupled with chronically limited public funds for
investment, lead to such deficiencies. Accordingly, the proposed project would focus to
develop urban spatial management capabilities in Palestine’s leading urban areas.

**C.** **Financial Management**

---
[10] Housing Sector TA, P128982, PPP in Municipal Service Delivery TA, P143782


Input:
47. A Financial Management capacity assessment for MDLF was carried out as part of the
appraisal of the ongoing MDP II, and was updated for this proposed project. Taking into
account the aforementioned risks and mitigation measures, the overall financial management
risk is assessed as “Moderate”. The implementation of the FM arrangements and the related
risk mitigation measures proposed in Annex 3 would satisfy WB OP10 minimum
requirements. The overall responsibility for the implementation of FM and disbursement
arrangements will rest with MDLF which will act as the Bank's counterpart for all FM
aspects of the proposed project. MDLF has a track record of managing the FM arrangements
of WB funds. The grant funds will be deposited through a US Dollar Designated Account
(DA) opened and managed by the MDLF. The proposed project’s financial statements will be


Input:
49. The overall responsibility for the implementation of the proposed project procurement
will rest with MDLF, which would act as the main counterpart to the Bank for all
procurement aspects of the project. In particular, all procurement notices and advertisements
and all contracts with suppliers and consultants will be issued and signed by MDLF. In
consultation with participating urban areas, MoLG will take the lead on all technical aspects
of the procurement process and will be responsible for contract management including the
review and approval of consultants’ deliverables and the receipt/inspection and acceptance of
goods, and for advising MDLF on the release of funds to the consultant/supplier in
accordance with the signed contract. During appraisal, a procurement plan (PP) for the first
18 months of the project implementation was prepared and agreed with the Bank. It specifies
the procurement packages/consultancy assignments, estimated cost, methods and schedule.
The PP will be updated at least annually or as needed to reflect actual project implementation
needs.


Input:
livelihoods. This is due to the delays that would be incurred for the implementation of
investments if OP 4.12 were triggered. To screen for these exclusions for potential pipeline
investments, as part of the studies, the proposed project will rely on the POM, which will
include a rigorous downstream investment screening process. Given that studies financed
under this project may lead to expropriation beyond the time of World Bank involvement,
RPF (Resettlement Policy Framework) Contents were prepared and attached as an Annex to
the ESMF. It provides guidelines on any potential involuntary land acquisition after the
lifetime of this proposed project. Additionally, the POM will include guidance on
documentation of power of choice in cases of willing-seller willing-buyer and voluntary land
donation (VLD). The MDLF has gained solid experience in rigorous sub-project screening
and ensuring the correct documentation for VLD during its implementation of the WB
financed MDP and MDP-II.


Input:
52. So as not to duplicate efforts, the proposed project will rely on the current Citizen
Engagement approaches developed and implemented by MDP-II (i.e. participatory
consultations, Grievance Redressal Mechanism). The proposed ICUD will apply the MDP-II
Grievance Redressal Mechanism, which is designed to be accessible to communities,
document complaints/ responses in a log, and provide timely responses to communities.

**F.** **Environment (including Safeguards)**

53. The proposed project would finance TA, trainings, and goods to facilitate urban growth
planning in five participating urban areas. The open menu of capacity building activities is
demand-driven tailored to the specific needs of individual urban areas. Discussions with the
client indicated the outputs may include urban development/spatial/strategic development
studies, which might propose some land use adjustments in the participating urban areas,
and/or detailed studies of joint interest, such as traffic flow. The studies are expected to
inform the client’s pipeline investments in forthcoming operations.


Input:
|Col1|Col2|Cumulative Target Values|Col4|Col5|Col6|Col7|Col8|Col9|Col10|Col11|Col12|
|---|---|---|---|---|---|---|---|---|---|---|---|
|Indicator Name|Baseline|YR1|YR2|YR3|YR4|YR5|YR6|YR7|YR8|YR9|End
Target|
|Number of participating urban areas that establish
and actively maintain an intra-urban area
coordination mechanism for the life of the project.|1|3|4|4|4||||||4|
|Urban Growth Planning roadmap prepared for all
participating urban areas (Yes/No)|No|No|Yes|Yes|Yes||||||Yes|
|Number of urban areas that complete baseline
assessments of existing urban extent.|0|0|3|5|5||||||5|

**Indicator Description**

**Project Development Objective Indicators**

|Indicator Name|Description (indicator definition etc.)|Frequency|Data Source / Methodology|Responsibility
for Data
Collection|
|---|---|---|---|---|
|Number of urban areas that develop
cost-analyzed scenarios for urban
growth and disclose them to the
public.|Scenarios for urban growth will include
population growth and associated land,
services, and infrastructure needs forecasts,
as well as cost-analyzed options for
infrastructure and service extensions based
on
different
growth
patterns
and
expansion/infill locations. The scenarios
will be disclosed to the public to ensure
citizen feedback. The duration of disclosure|

Annual|Disclosed
summaries
and
documents
themselves
for
public
viewing
(website,
signboard, town hall meetings,
etc.). Project progress reports
on
activities
undertaken
to
develop the scenarios.|

Participating
Urban Areas,
MoLG|

21


Input:
|Col1|will be determined based on the national
regulation related to urban plans and
recorded in the POM prior to the
commencement of scenario exercise.|Col3|Col4|Col5|
|---|---|---|---|---|
|Number
of
urban
areas
whose
member LGUs’ plans are aligned to
the selected growth scenario at the
urban area level.|

Measures the urban area-member LGUs’
capacity and commitment to implement the
vision and growth scenario developed
through Urban Growth Planning exercise.
The urban growth planning exercise will
identify and decide on the space where the
urban areas’ population growth could be
accommodated. Where the space will
geographically overlap with existing LGU
boundaries is not known at this stage (it may
run across all member LGUs’ boundaries, or
be contained in only one or a few member
LGU boundaries). Once the space is
determined, the LGUs which include the
space in its boundaries will need to adjust
their plans accordingly, while other member
LGUs may/may not adjust their plans based
on the indirect impact of such space to be
planned and developed in the same urban
area. When all of the necessary adjustments
for the identified space are completed,
which might or might not involve all of
member LGUs, this indicator will be
considered as being met.|

Annual|Review of,_inter alia_, land use
plan (“Master Plan), Strategic
Development and Investment
Plan, sectoral plans, by urban
area-member LGUs in reference
to the urban growth scenario
chosen.|

Participating
Urban Areas,
MoLG|
|Direct project beneficiaries|The direct beneficiaries will be urban
planners and other relevant LGU staff who
will be implementing urban growth planning
exercise. The target number of staff to be
trained cannot be estimated at this stage, as|

Annual|Project progress reports|Participating
Urban Areas,
MoLG|


Input:
|Intermediate Results Indicators|Col2|Col3|Col4|Col5|
|---|---|---|---|---|
|Indicator Name|Description (indicator definition etc.)|Frequency|Data Source / Methodology|Responsibility
for Data
Collection|
|Number of participating urban areas
that establish and actively maintain
an intra-urban area coordination
mechanism for the life of the project.|

Measures the ownership and capacity of
participating urban area-member LGUs to
collaborate
in
achieving
the
project
objectives.|

Semi-
Annual|Memorandum of Understanding
to formulate the establishment
of joint coordination units,
minutes of coordination
meetings, as part of progress
reports.|Participating
Urban Areas,
MoLG|
|Urban Growth Planning roadmap|The roadmap will include following steps:|Annual|Review
of
Urban
Growth|Participating|

23


Input:
**Annex 2: Detailed Project Description**

**COUNTRY: West Bank and Gaza**

**Project Name: GZ-Integrated Cities and Urban Development Project (P150991)**

**A.** **Project Components**

**Component 1: Planning for Sustainable Urban Growth.**

1. This component strengthens the institutional and technical capacity of participating urban
areas and analytical underpinning of current urban planning practice to plan for sustainable
urban growth through provision of, _inter alia_, TA, goods, and training. To ensure strong
ownership and commitment by the participating urban areas and robust processes of
collaboration among the LGUs comprising the urban areas, this component will first
facilitate intra-urban area coordination mechanisms to be in place and operational for all
participating urban areas except for Gaza City that is comprised of a single LGU. New
coordination mechanisms will be established in the Nablus urban area and the Hebron urban
area. For the urban areas that already have developed intra-urban area coordination
mechanisms among LGUs, namely the Ramallah urban area and recently the Bethlehem
urban area, the proposed project will strengthen the existing joint planning and coordination
mechanism and promote flexible membership based on technical needs to conduct urban
growth planning exercise [11] . The intra-urban area coordination mechanisms will be required
to demonstrate effectiveness by signing a Memorandum of Understanding (MoU) by member
LGUs and periodic submission of proof of their active operations to MoLG and MDLF.
Further details on the format of MoUs as well as the definition of such proof are to be
specified in the POM.

---
[11] Bethlehem’s joint coordination mechanism has just been newly established and is not fully functional yet, nor is it


Input:
2. Through the intra-urban area coordination mechanisms, the participating urban areas will
be supported to conduct urban growth planning. The objective of capacity development
support for urban growth planning is to enable the urban areas to respond more efficiently to
the needs of their growing population and private sector with more sustainably and wellplanned urban spaces and infrastructure.

3. _Sub-Component 1: Structured capacity development support for urban growth planning._
This sub-component will assist equipping the urban areas with, _inter alia_, the necessary
information, tools, and analysis to achieve four milestones of urban growth planning: (i)
establish and actively maintain intra-urban area coordination mechanisms; (ii) complete
baseline assessment of existing urban extent; (iii) complete exercise to develop cost-analyzed
urban growth scenarios, and to disclose them to the public; and (iv) modify respective
member LGUs’ plans based on the optimum urban growth scenario selected at the urban area
level.

4. To achieve Milestone (i), the urban areas of West Bank will receive facilitation support
from LCs and the TS of the proposed project to fine-tune and sign a MoU that underpins the


Input:
establishment of intra-urban area coordination mechanism. MoUs shall at minimum specify,
_inter alia_, objective, division of labor, and focal personnel appointment. The MoU will be
designed based on previous local and international experience and lessons learned of existing
mechanisms, anticipated focus area of urban growth planning in the area, as well as technical
input from the TS and LCs, such as the analysis of existent built-up areas and infrastructure
network. Further, the urban areas will be supported to identify the rationale and objective of
urban growth planning and draw a roadmap per area for the planning exercise through intraurban area workshops.

5. To achieve Milestone (ii), the urban areas will be supported to establish the necessary
spatial baseline information on the following: population; local and regional economic sector
and labor force; intra-urban area mobility patterns; infrastructure connections (e.g. water,
waste water, electricity, roads, transportation, and solid waste collection); under-utilized or
vacant land; and public/environment/ecological spaces. Population and economic growth and
associated spatial needs will be forecasted next. The economic growth forecast will be based
upon the analysis of local and regional economic growth trends, employment composition,
the productivity and location of private sector activities, and likely growth trajectory.


Input:
6. Based on the established urban growth baselines, forecasts, and available public
resources (e.g. buildable land), the urban areas will be further supported in Milestone (iii) to
identify the cost of needed infrastructure, service delivery investment, and maintenance, per
growth pattern and location. The cost-analyzed growth scenarios will be publicized to their
citizens, and in Milestone (iv) spatial, sectoral (e.g. waste water network), and investment
plans at individual LGU level will be adjusted and/or the development of new expansion area
plans based on the chosen growth scenario and vision.

7. As the adjustment of individual LGU level plans is completed, the relevant LGU will be
supported to identify priority investments in the areas identified through the urban growth
planning exercise to accommodate imminent growth. Furthermore, the relevant LGUs will be
supported to improve the identified investment-specific transactions to attract funding from
DPs and private sector to implement the investment. Such transaction support will include
development of advanced methodologies for economic and financial analysis from basic
analysis to life-cycle costing, business plan designs, and pre-feasibility study.


Input:
introduction of parking meters on main streets to facilitate better customer access to private
businesses.

9. _Sub-Component 3: Demand-driven customized support for urban growth planning for_
_Gaza urban area: Gaza City._ This sub-component will provide Gaza City with, _inter alia_,
TA, goods, and training, to conduct interim activities to improve urban space management
and services over the course of the proposed project. In the same manner as sub-component
2, the support will be demand-driven and will be provided only if Gaza City steadily meets
urban growth planning milestones. Such support may include but not be limited to specific
TA, such as conducting joint-neighborhood public space cleaning campaigns.

**Component 2: Project Implementation Support and Management Cost.**

10. This component will finance training, operating costs, and goods necessary for the
technical oversight and implementation support of the proposed project to be performed by,
_inter alia_, TS, LCs, and existing Coordinator for the RAB Joint Coordination Unit. This
component will also finance the management fee of the MDLF that will manage
procurement, finance, safeguards, and reporting for the proposed project based on technical
inputs from the TS.

27


Input:
**Annex 3: Implementation Arrangements**

**COUNTRY: West Bank and Gaza**

**Project Name: GZ-Integrated Cities and Urban Development Project (P150991)**

**A.** **Project Institutional and Implementation Arrangements**

_Project administration mechanisms_

1. LGUs that comprise of the proposed project participating urban areas and commit to
maintaining intra-urban area coordination mechanisms will be the principal recipient of, _inter_
_alia_, TA, goods, and trainings provided through this proposed project. The urban areas are
responsible for identifying project financed activities to achieve the PDO. They will also lead
project activities at the local level with technical oversight and facilitation support from
Technical Supervisor as well as Local Coordinators who are to be recruited under the
proposed project and based at MoLG and urban areas respectively. As this proposed project
aims at developing the urban areas’ capacity, all of the TA will be participatory in their
nature, requiring regular technical inputs from the LGUs (e.g. existing spatial population
data) over the course of the proposed project cycle. As the participating urban areas do not
have a legal body beyond respective LGUs to govern their conjoined built space, the
proposed project will support the areas to establish and maintain active coordination
mechanisms for the LGUs to collectively deliver results areas. The mechanism will be
modeled on the intra-urban area coordination committee (Joint Coordination Unit) that the
RAB urban area established to manage intra-municipal area connectivity issues with a
designated coordinator position. A similar model has recently been established for the
Bethlehem urban area, although it is not fully functional nor staffed yet. Neither mechanism
at this time is entirely urban area-wide, however there is interest from the LGUs to revisit the
composition to better cover the spatial extent of the their urban areas.


Input:
2. The remaining urban areas do not have a similar mechanism. Therefore, the intra-urban
area coordination mechanism under this proposed project will be tailored to each urban area
based on the degree of collaboration existent and have flexible membership, while reflecting
technical considerations for effective urban growth planning. Lessons from the existing
RAB joint coordination unit will be taken into consideration as well. The coordination
mechanism will not take the form of a legal administrative body.


Input:
4. The technical oversight of the proposed project activities will be carried out by the MoLG
in close consultation with the urban areas. The MoLG has the legal mandate for local
government affairs and is in charge of overall policy setting and coordination. Accordingly,
the MoLG will technically oversee the implementation of Component 1. The MoLG, through
TS and LCs, will provide facilitation support to assist the proposed project’s participating
urban areas to identify, _inter alia_, needed TA activities, goods, and trainings. The MoLG
district office will represent the land outside of LGU boundaries in the respective urban area
of West Bank. In consultation with the urban areas, MoLG will prepare the technical content
of ToRs and Expression of Interests (EoIs), conduct technical quality control, and provide
technical approval of the delivered outputs. MoLG will also be responsible for advising the
fiduciary agent of this proposed project, MDLF, for payment release in a timely manner, and
reporting technical aspects of proposed project activity results to the MDLF to be
consolidated into proposed project progress reports. To assist MoLG to fulfill these
functions, a TS will be selected by MoLG and contracted by MDLF from the proposed
project budget. The TS will be placed in the MoLG Planning Department to oversee
technical activities at the local level and fulfill relevant central level coordination, reporting,
and other activities important to support overall technical supervision by the Ministry.


Input:
5. MDLF will be responsible for managing procurement, finance, safeguard, and reporting
for the proposed project, based on technical inputs from the MoLG. MDLF’s role will
include the proposed project fund management; preparation of financial statements;
organization of the proposed project audit; signing and issuance of all procurement notices,
advertisements, and all contracts with suppliers and consultants; environment and social
safeguard management; preparing and updating the POM based on technical input from the
MoLG; and compiling results reporting and submission to the Bank. MDLF is an
independent, semi-governmental organization, governed by a Board of Directors (the Board)
which is the policy and strategy-setting authority responsible for monitoring the direction and
performance of the Fund. The Board Chairman is the Minister of Local Government and its
eleven members consist of representatives of Public Sector entities (Ministry of Finance,
Ministry of Public Works and Housing, and Ministry of National Economy), civil society
(Engineers Association, Banking Association, Association of Palestinian Local Authorities,
Women's Association) and two mayors. The MDLF has demonstrated its capacity to
administer donor-funded projects since its establishment in 2005, including the multi-donor
financed MDP-II that is a repeater of MDP-I. MDLF is staffed with all key positions required
to fulfill its fiduciary and safeguard management roles for this proposed project.


Input:
9. Budgeting: In consultation with LGUs, MDLF will maintain a consolidated proposed
project budget and a detailed disbursement plans. The budget will separately identify
activities to be financed under the proposed project. The budget for each semester will reflect
expenditure on the proposed project activities. The budget will also include detailed cash
projections (based on six months cash projections).

10. A provision for retroactive financing in the amount of USD 500,000 (10% of Grant
amount) will be provided to the MDLF to cover necessary financing for the technical
advisor’s salary and initial operating costs.

11. Accounting System and Reporting: MDLF maintains an acceptable, Oracle-based,
accounting system. The accounting system is not part of the country systems since MDLF is
a semi-independent government organization. The accounting system is not linked to any
municipality’s accounting system. However, the accounting system is computerized, and is
able to capture the proposed project related transactions. The accounting system is capable to
track and report on the proposed project funds separately by Component, and by each LGU.
Additionally, the system is capable to generate quarterly IFRs, while the DA reconciliation
will be performed manually by means of spreadsheets.


Input:
14. Incremental operating cost: MDLF will control the incremental operating cost incurred
by eligible project staff to be specified in POM following MDLF’s internal control policies
and procedures. Consultants should submit to MDLF travel and transportation prior approval
from MoLG. Also, MDLF will monitor the incremental operating expense as part of the
semiannual financial reporting.

15. Annual External Audit: The Project’s financial statements will be annually audited by a
qualified independent auditor acceptable to the Bank, in accordance with internationally
accepted auditing standards, and ToR acceptable to the Bank. The audit report and
management letter will be submitted by MDLF to the Bank within six months after the end of

31


Input:
16. Funds will be disbursed through a separate segregated DA maintained in United States
Dollars. The proceeds of the Grant will be disbursed in accordance with the Bank's
disbursements guidelines as it will be outlined in the Disbursement letter and in accordance
with the Bank Disbursement Guidelines for projects. The proposed project disbursements
will follow “Report-based disbursements”. The ceiling of the DA, including the initial
advance, will be based on a six-month cash flow projection prepared by the MDLF.
Subsequent disbursements into the DA will be based on the semiannual IFRs. Like MDP II
disbursement arrangements, the Bank’s disbursements will be transferred into the respective
DA based on the audited IFRs; the audited IFRs will provide actual expenditure for the
preceding quarter and cash flow projections for the next six months. The IFRs together with
the withdrawal application will be reviewed and approved by the Bank before the Bank
processes the request for disbursement. In addition, the direct payment method involving
direct payments to contractors for services, as well as special commitments may also be used.
The reimbursement method may be used for expenditures pre-financed using MDLF’s
resources. Reimbursements must be disbursed to an account held and used for purposes
consistent with the terms of the legal agreement. The Disbursement Letter will stipulate the
minimum application value for direct payment, reimbursement and special commitment
procedures as well as detailed procedures to be complied with under these disbursement
arrangements.


Input:
18. As part of the PA public procurement reform program, a new public procurement law and
its implementing regulations consistent with internationally accepted practices, were enacted
and will enter into effect on July 1, 2016. In the meantime, the PA is putting in place a
number of pre-requisite components, including national standard bidding documents for
various types of procurement, a single portal procurement website, a national procurement
manual and a dispute review unit. Those components will be assessed as they become

32


Input:
23. Mitigation measures: To mitigate these risks, a Technical Supervisor at MoLG and Local
Coordinators in participating urban areas will be financed under the proposed project, and the
proposed project implementation structure and the detailed responsibilities of the various
entities shall be clearly defined in the POM, to be approved by the Bank prior to
effectiveness. Based on the list of preliminary TA packages, draft ToRs for key technical
assistance packages to be implemented in the first year shall be prepared by MoLG with the
Bank’s assistance. The proposed project procurement plan shall be jointly drafted by MDLF
and MoLG, ensuring an adequate and realistic sequencing and prioritization of actions.
Procurement packaging will be determined to allow for wide competition, including
encouraging possible association among local and international consultants.

33


Input:
2. **Summary of the Procurement Packages planned during the first 18 months after**

**project effectiveness:**

**Goods:**

|1|2|3|4|5|6|7|8|9|
|---|---|---|---|---|---|---|---|---|
|**Ref.**
**No.**|**Description**|**Estimate**
**d Cost**
**US$**
**(,000)**|**Financier**|**Procurem**
**ent**
**Method**|**No. of**
**lots**|**Domesti**
**c **
**Preferen**
**ce**
**(yes/no)**|**Review**
**by**
**Bank**
**(Prior /**
**Post)**|**Estimated**
**BDs issue**
**date**|
|2.1.1|Supply of
Hardware|**15,000**|**WB**|Shopping|1|N/A|Post|10/01/2016|
|2.1.2|Supply of
Office Furniture|**5,000**|**WB**|Shopping|1|N/A|Post|10/01/2016|
|2.1.3|Supply of
Hardware for
Gaza|**60,000**|**WB**|Shopping|1|N/A|Post|10/01/2016|
||**Total**|**80,000**|||||||

**Non-consulting Services:**

|1|2|3|4|5|6|7|8|9|
|---|---|---|---|---|---|---|---|---|
|**Ref.**
**No.**|**Description**|**Estimated**
**Cost**
**US$ (,000)**|**Financier**|**Procure**
**ment**
**Method**|**No.**
**of**
**lots**|**Domestic**
**Preference**
**(yes/no)**|**Review**
**by Bank**
**(Prior /**
**Post)**|**Estimated**
**BDs issue**
**date**|
|2.2|Supply of Updated
Aerial
Photogrammetric
or Satellite Images|50,000|**WB**|Shopping|1|N/A|Post|04/01/2017|
||**Total**|**50,000**|||||||

**III. Selection of Consultants**

1. **Selection Methods and Prior Review Thresholds** : Selection decisions subject to Prior

Review by Bank as stated in Appendix 1 to the Guidelines Selection and Employment of
Consultants:

|2.|Col2|Col3|Col4|
|---|---|---|---|
|**Category**|**Selection Method**|
**Threshold**|**Prior Review Threshold**|
|||**(USD Equivalent)**|**(USD Equivalent)**|
|**Consulting**
**Services Firms **|
QCBS/QBS|No threshold|All contracts above $500,000|
|**Consulting**
**Services Firms **|
FBS/CQS/LCS|<200,000|None|
|**Consulting**
**Services Firms **|Sole Source|No threshold|All contracts|

35


Input:
|Individuals|IC|No threshold|All contracts above $200,000|
|---|---|---|---|
|**Individuals**|Sole Source|No threshold|All contracts|

3. **Short list comprising entirely of national consultants** : Short list of consultants for

services, estimated to cost less than USD300,000 equivalent per contract, may comprise
entirely of national consultants in accordance with the provisions of paragraph 2.7 of the
Consultant Guidelines.

4. **All Terms of Reference shall be subject to the World Bank’s clearance** .

5. **Consultancy Assignments with Selection Methods and Time Schedule: TBC**

|1|2|3|4|5|6|7|
|---|---|---|---|---|---|---|
|**Ref.**
**No.**
|**Description of**
**Assignment**|**Estimated**
**Cost**
**US$ (,000)**|**Financier**|**Selection**
**Method**|**Review by**
**Bank/AFD**
**(Prior /**
**Post)**|**Estimated**
**RFP/**
**Invitations**
**issue date**|
|1.1.1|Hiring of Technical
Supervisor|**33,600**|**WB**|I.C|Post|09/01/2016|
|1.1.2/1|Hiring of Local
Coordinator-**Bethlehem**
**Urban Area**|**21,600**|**WB**|I.C|Post
|12/01/2016|
|1.1.2/2|Hiring of Local
Coordinator –**Hebron**
**Urban Area**|**21,600**|**WB**|I.C|Post
|12/01/2016|
|1.1.2/3|Hiring of Local
Coordinator –**Nablus**
**Urban Area**|**21,600**|**WB**
|I.C|Post
|12/01/2016|
|1.2|Capacity Development for
LGUs, MDLF and MoLG|**30,000**|**WB **|CQS|Post|12/01/2016|
|1.3|Assessment and
collection of Existing
Urban Growth Data, and
Development of Urban
Growth Planning
Roadmaps in WB & Gaza|**400,000**|**WB**|QCBS|Prior|11/01/2016|
|1.4/2|Assessment and
Collection of Missing
Data and Analysis to
Develop Urban Growth
Footprint in**Gaza City**|**180,000**|**WB**
|QCBS|Post
|03/01/2017|
|1.5|Hiring of Technical GIS
Data Storage Expert|**30,000**|**WB **|I.C|Post|01/01/2017|
||**Total**|**738,400**|||||

_Environmental and Social (including safeguards)_

36


Input:
27. The MDLF will be responsible for monitoring and evaluation activities under this
proposed project, including the achievement of the PDO, project outcomes, and physical,
fiduciary, and safeguard performance. The MoLG will be responsible for providing technical
input to the MDLF, namely all of the technical aspects of procurement, achieved results per
result indicators to monitor progress toward PDO, and details of the proposed project
activities. The monitoring and evaluation activities will also include the results that are not
captured in the results framework, such as semi-annual feedback collection from the
proposed project participating urban areas and subsequent fine-tuning of the proposed project
activities. A structured assessment of capacity developed through this proposed project is
also planned at the mid-term and end of the project. MDLF has been performing at a
satisfactory level to collect, aggregate, and analyze results achieved by municipalities under
the MDP-II and the MoLG under LGSIP as both programs’ implementing agency. The
MDLF has a robust monitoring and evaluation system that uses a web-based Program
Management Information System (PGMIS) as well as the FMIS to automate data
aggregation, storage, and presentation as part of a results-based M&E system. The MDLF’s
Results-Based Monitoring Manual (RBMM) has aligned the individual objectives of the
MDLF-implemented various projects and programs with the PA’s NDP strategic objectives.
As such, no additional arrangements or staff is required for the M&E of this proposed
project.


Input:
**Annex 4: Implementation Support Plan**

**COUNTRY: West Bank & Gaza**

**Proposed Project Name: GZ-Integrated Cities and Urban Development Project (P150991)**

**A.** **Strategy and Approach for Implementation Support**

1. This proposed project intends to use to the largest extent possible the existing Municipal
Development Program Phase II (MDP-II) implementation mechanism through the MDLF to
reinforce an integrated approach to the LG sector by the Bank. For technical aspects of the
proposed project, however, the participating urban areas and MoLG would play a greater role
than the MDP-II to identify and implement activities, while fiduciary, safeguard, and overall
reporting responsibility lie with MDLF.


Input:
3. The ISP is built around semiannual missions (which include visits to participating urban
areas as well as joint meetings with MoLG and MDLF at the central level), monthly video
conference meetings between the Bank team and government, and fiduciary compliance
reviewers. Support from a country based STC or staff will also be provided throughout the
proposed project cycle. An MTR will be conducted after approximately 26 months of
implementation to review performance in depth, based on progress and studies commissioned
for the MTR, and make any necessary adjustments to the proposed project substance and
schedule.

4. The proposed project will require extensive support in the startup and early phases to fill
the knowledge gap among stakeholders, make up for the lack of legal institutions on intraurban area coordination, and advocate for the project’s focus on urban areas and private
sector engagement for growth that have never been systematically pursued. A phased
approach will be vital for the proposed project to take off by quickly producing a few,
tangible analytical outputs in the initial periods that serve as concrete examples of new urban
development approaches supported by this proposed project.

5. The following skills mix and resource needs are estimated: