The World Bank West Bank and Gaza Resilient Municipal Services Project (P178723) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 12/23/2022 | Report No: ESRSA02485 Dec 23, 2022 Page 1 of 15 The World Bank West Bank and Gaza Resilient Municipal Services Project (P178723) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) West Bank and Gaza P178723 Project Name West Bank and Gaza Resilient Municipal Services Project Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Urban, Resilience and Investment Project 12/21/2022 2/28/2023 Land Financing Borrower(s) Implementing Agency(ies) Palestine Liberation Municipal Development Organization (For The Lending Fund (MDLF) Benefit of the Palestinian Authority) Public Disclosure Proposed Development Objective To strengthen municipal capacity to deliver accountable, sustainable, inclusive and resilient services to the municipal population in the West Bank and Gaza. Financing (in USD Million) Amount Total Project Cost 83.50 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] The project will consist of four components: Component 1: Performance Based Service Delivery Grant Transfer. Through this component the project will provide participating municipalities with the performance-based grant financing needed to advance in the process of fulfilling their mandated service delivery responsibilities. To participate municipalities will have to first comply with a series of Minimum Conditions (MCs) which are the basic requirements that all participating municipalities should comply with to become eligible to receive the grants tied to the achievement of performance measures. The grants will finance Dec 23, 2022 Page 2 of 15 The World Bank West Bank and Gaza Resilient Municipal Services Project (P178723) municipal infrastructure sub-projects that participating municipalities will identify and prioritize based on their Strategic Development and Investment Plan (SDIPs). Municipalities will identify such sub-projects through a participatory public consultation process and will be limited to the sectors outlined in the legal framework. It will finance the transfer of two cycles of bi-annual grants and investments, the first of which will occur during the first year of project implementation and the second two years later. These will be composed of two sub grants, the first of which will be based on an evaluation of municipal needs, the second will be performance based, where the allocation will be determined by a formula that considers the achievement of Performance Measures (PMs). This is a similar approach to the one taken as part of the MDP project series, but with a significant stronger focus on the performance of municipalities Component 2. Capacity Development. This component will provide capacity development support to municipalities and national level institutions, namely, the MDLF and the MoLG. The MDLF will prepare a Capacity Development Plan at the start of the project in consultation with all stakeholders, which will provide a detailed description of the priorities, activities and their inter-linkages for this component. Component 3. Natural hazard and Climate Change Resilience (competitive): The component will cover technical assistance as well as offer financing of small-scale physical works supporting municipalities’ effort to reduce natural hazard and climate change related risks in support of the PA’s efforts to climate change and reduction of all forms of environmental pollution. More specifically this component will cover: Subcomponent 3.1. Participatory natural hazard and climate change risk assessment. Building on the recent urban hydrological and climatological risk research, as part of the first cycle of grants to be distributed, the project will Public Disclosure support the development of a detailed participatory risk assessment for hydrological and climatological risks in select major urban areas of the WB&G. Gender equality and integration will be ensured through these capacity development initiatives, as too will be the focus on vulnerable groups. These will ultimately lead to municipal hazard reduction plans which will propose a series of small-scale risk mitigation interventions within a subset of preferred activities, which include energy efficient building rehabilitation, rooftop solar energy, SWM (Slurry management) urban nature-based solutions like green roofs, green corridors, urban farming, urban parks and forests, among other urban heat and flood management works. Subcomponent 3.2. Natural hazard and climate change adaptation structural works. It will subsequently finance climate change mitigation and adaptation works as part of the second cycle of activities. The selected municipalities will be responsible for implementing the infrastructure projects identified, under the MDLF’s oversight and supervision. Support will be provided to prepare plans and designs for such prevention measures and plans for the management, operation and maintenance of each structural measure built. Municipalities are encouraged to propose investments of larger scale targeting more than one municipality to reap economies of scale and consolidate service delivery (building on the success of implementing joint projects as part of the LGSIP). Component 4: Project implementation support and management. This component will finance the functioning of the teams that are part of the MDLF supporting the implementation of the project. It will finance the management costs of the MDLF as well as the required goods and consultant services (local technical infrastructure supervision) needed for the effective monitoring and evaluation, social and environmental safeguards management, procurement, outreach and communications for the project. Dec 23, 2022 Page 3 of 15 The World Bank West Bank and Gaza Resilient Municipal Services Project (P178723) D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] The Project interventions will cover the entire area of the West Bank and Gaza Strip (WB&G), which is characterized by a variation in topography and altitude. The WB&G covers an area of 6,020 sq. km and is composed of two physically and politically separated land masses. WB&G are comprised of 16 governorates including 159 municipalities among other local government units, 278 village councils, and 73 Joint Service Councils (JSCs). The Palestinian economy has experienced modest growth, but progress in other socioeconomic indicators has been slow. Existing economic and social challenges on trade movement and access, recurrent hostilities, internal divide, and falling aid inflows, were exacerbated as a result of COVID 19 related policy interventions. Furthermore, unemployment is significant as rates reached 27.8% nationally, 17% in the West Bank and about 51% in the Gaza Strip. The Palestinian territories are exposed to a range of natural hazards risks that will probably increase due to climate change in the coming decades, affecting municipal infrastructure and service delivery to people living in urban areas. The situation is made more complex due to the political and institutional constraints faced by municipalities. The PA developed the Municipal Development Program (MDP), with funding from the World Bank and key donors, as the centerpiece of government support to the municipal sector. The MDP project series was initiated in 2009 to support local development in the country with specific focus on improving capacities of municipalities to provide better services to Palestinian citizens and enable financial stability of municipalities in the long term. The MDP Public Disclosure includes financing by the Palestinian government and several development partners (DPs). Building on the success and lessons of the MDP project series, the WB&G Resilient Local Government and Municipal Services Project (RLGMSP, the Project, nationally called the MDP-4) is the next iteration in the series of Municipal Development Projects (MDP-1, MDP-2, and MDP-3) and, will continue to support municipalities to successfully deliver their service delivery mandates. The Project will also support central level reform required to create an enabling environment for improving municipal financial sustainability and accountability. Sub-projects under the Project will include (but are not limited to) the construction/rehabilitation of roads rehabilitation, street lighting, public buildings, public parks, and water and sewage as part of the project eligible list. Most municipal infrastructure sub-projects will be constructed on municipal or public land that is not used or occupied as per the approved municipal master plan, and in the case of road sub-projects along the right of way (ROW) of existing roads. Some sub-projects might be implemented in rural areas of low population density that are included in the masterplan. Policy reform activities are also anticipated under Component 2. Specific locations for natural hazard and climate risk resilience sub-projects (Component 3) will be determined by the selected municipalities. Finally, sub-project implementation in the Gaza Strip might be affected due to delay in entry of goods and materials into the Gaza Strip, and recurrent hostilities. D. 2. Borrower’s Institutional Capacity The Ministry of Local Government (MoLG) is responsible for increasing the territorial administration under the PA’s autonomous control. It has a leading role in developing sector policies, approving program interventions, budgets, and providing oversight of the work of the Local Government Units (LGUs). The Municipal Development and Lending Fund (MDLF) was established in 2005 to implement the PA’s national development policies in the local government sector. The Ministry of Finance (MoF) and MoLG will work with MDLF to coordinate policy reforms implemented under the Project (Component 2). Dec 23, 2022 Page 4 of 15 The World Bank West Bank and Gaza Resilient Municipal Services Project (P178723) MDLF will be responsible for the overall management of the Project, and this will be MDLF’s first project under the World Bank’s Environmental and Social Framework (ESF). Qualified environmental and social (E&S) personnel in MDLF’s West Bank and Gaza offices have led Project preparation. With the support of a group of independent environmental and social consultants, this E&S team will assist municipalities in ensuring compliance with E&S risk management requirements (in accordance with ESF), and also build their capacity. The related project, MDP-3 which is an ongoing operation implemented under the Bank's safeguards policies, has consistently been rated satisfactory for E&S safeguards performance and is in compliance with the Bank’s safeguards. MDLF prepared an Environmental and Social Management Framework (ESMF), Land Acquisition and Livelihood Policy Framework (LALF), Grievance Mechanism (GM) Manual, and site-specific Environmental and Social Management Plans (ESMPs) for MDP-3. Stakeholder consultations, including with women and vulnerable groups, were held during the development of Strategic Development Plans, and sub-project identification and implementation. Labor health and safety measures and stakeholder engagement was further strengthened at the time of MDP-3 Additional Financing (AF) for Covid-19 response where health and safety, traffic management, labor management and working conditions requirements, and a Stakeholder Engagement Plan (SEP) consistent with ESS10, were included in the project ESMF and implemented. The project GM was also enhanced and implemented and remains functional during MDP-3. MDLF is also the first implementing agency in WB&G to pilot Geo-enabling Supervision and Monitoring (GEMS) Tool for remote monitoring of the E&S safeguards for a number of sub-projects under the MDP-3 AF. The GEMS Tool provided MDLF with timely reports that allowed immediate response for E&S compliance during sub- project implementation. Public Disclosure Under the RLGMSP/MDP-4 Project, municipalities will be responsible for implementing the infrastructure projects that are financed from their individual basic and performance-based grants allocated from the project (Component 1). Implementation will be under the MDLF’s supervision and supported by Local Technical Consultants (LTCs). During MDP-3 implementation, the E&S safeguards capacity of municipalities was developed through formal training, orientation sessions, and on-job training, and included preparation of ESMPs and compliance with E&S safeguards. According to MDLF’s assessment of municipalities’ capacity, the understanding of and capacity to implement E&S safeguards requirements varies across municipalities. Furthermore, while the understanding of the Bank’s E&S safeguards policies has been enhanced during MDP-3, MDLF (staff and consultants) and the municipalities have limited knowledge of the ESF and capacity enhancement will be required in this regard. Under the Project, MDLF will continue engaging their E&S staff and consultants – 2 environmental specialists and 2 social specialists currently employed to support MDP-3 implementation in both West Bank and Gaza offices, and 4 environmental and 4 social consultants – to support municipalities during sub-project preparation and implementation. MDLF will also organize ESF capacity building activities at the early stage of project implementation to build the capacity of MDLF E&S staff, consultants and technical teams, and the municipalities so that sub-projects are implemented in compliance with ESF requirements. Requirements for further capacity building are included in the Project Environmental and Social Commitment Plan (ESCP; further discussion under ESS1) and the ESMF. Finally, MDLF E&S staff has benefitted from World Bank ESF trainings held in May and June 2022, and the Bank’s E&S team will continue to provide further capacity building support, as required, during project implementation. II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS Dec 23, 2022 Page 5 of 15 The World Bank West Bank and Gaza Resilient Municipal Services Project (P178723) A. Environmental and Social Risk Classification (ESRC) Substantial Environmental Risk Rating Substantial The project is expected to have positive impacts improving the service delivery at the municipal level, enhancing municipal capacity, and natural hazard and climate risk resilience. Similar to MDP-3, municipalities are eligible to receive grants to implement a wide range of potential sub-projects in different infrastructure sectors, the details and specific locations of such investments are yet to be identified. The project is expected to have risks and impacts associated with the provision of infrastructure sector selected by municipalities as sub-projects under Components 1 but not limited to the construction/rehabilitation of roads, street lighting, public buildings, public parks, water and sewage as part of eligible list, might be expected under the performance based grants, and operational activities in Gaza Strip. Component 3 is associated with provision of small-scale physical works including energy-efficient building rehabilitation, rooftop solar energy, Slurry management, urban nature-based solutions like green roofs, green corridors, urban parks, among other urban heat and flood management works, and also climate change mitigation and adaptation related civil works. Component 2 will support MDLF for institutional capacity development of MoLG and municipalities, including packages to promote social accountability, preparation of pre-investment studies, and enhance financial management and credit worthiness, that may include the supply of computers and minor civil works for renovation and refurbishment, in addition to promoting policy reforms. The project activities will have adverse environmental risks and impacts which are mainly related to civil works activities under the different components and the infrastructure sectors, such as dust and noise emissions, interruptions to public services and infrastructure, road and traffic safety risk, and non-hazardous waste generation. Pollution and health risk due improper hazardous waste management may result from leakage from supplied oil and fuel, improper disposal and Public Disclosure management of wastewater and slurry, in addition to the e-waste resulting the end of life of electronic equipment’s. OHS risks related to works in different sectors and scales, as well the OHS risks related the operations activities in the Gaza Strip including waste collection, maintenance activities, and to the risk of UXO during excavation at shelled sites in the Gaza Strip. The emission of dust, odors, and vehicle exhaust due to waste collection and transportation activities. Climate change mitigation and adaptation works targeting more than one municipality under component 3 are expected to cause impact on biodiversity conservation depending on the sub-project location and scale. Supplies not expected to have adverse impact on the energy and resources efficiency. The sub-projects are expected to be implemented in urban areas and not expected to affect cultural heritage resources, other than find of uncovered resources. The risks of activities that will be identified under the CERC will be assessed upon identification according to an exclusion list for high and substantial activities in the ESMF. The environmental risk is also due to the client’s limited capacity in implementing the Bank’s ESF. While MDLF has adequate environmental and social personnel, who received ESF fundamentals training, and has a good track record of compliance with the Operational Policies implementing the three phases of the MDP, as MDLF integrated certain ESF principles to implement the AF. RLGMSP, will be the first phase to be fully implemented under the ESF. Municipalities responsible to implement the sub- projects under MDLF management are not familiar with the ESF. Considering the above and given the activities wide geographical scope and limited capacities in implementing the ESF the environmental risk is rated Substantial. Social Risk Rating Substantial The project is expected to have a number of social benefits including (but not limited to) providing support to municipalities for local service provision and infrastructure development, technical assistance/capacity building also including for participatory planning and social accountability, and increased climate resilience. However, certain risks have been identified that will need to be mitigated as required. The main social risks include : i) land acquisition and Dec 23, 2022 Page 6 of 15 The World Bank West Bank and Gaza Resilient Municipal Services Project (P178723) temporary restrictions to land use: while the project will not involve large scale private land acquisition or physical resettlement, there may be potential risks, under Component 1, associated with some small-scale land taking for the expansion of ROW, if required, for rehabilitation and maintenance of water networks, and construction and rehabilitation of roads. Similarly, while activities including construction and rehabilitation of public facilities (e.g. schools, clinics, public centers, solid waste facilities etc.) are generally implemented on public land, some private land taking may be needed in cases where public land is not available. Final determination of land needs will be done during subproject preparation. There is also a potential risk of temporary restriction to land use and consequent negative impacts during construction on small enterprises (e.g. shops, kiosks) particularly in commercial areas. Risks will be assessed during subproject preparation, and mitigation measures proportionate to the risk level will be included in site-specific instruments based on the project’s Land Acquisition and Livelihood Framework (LALF) (further discussion under ESS5). ii) Risks related to labor use and OHS: no large-scale labor influx or construction of large labor camps will be required under the project. The project also includes small to medium scale rehabilitation and construction and climate change mitigation and adaptation works targeting more than one municipality that will be spread across locations in the West Bank and Gaza, and it is planned that local labor will be employed for and to meet the needs of construction activities. A determination of the scale and relevant mitigation measures in this regard will be made during subproject preparation. Labor management risks such as, OHS, working terms and conditions, and minimum age will need to be mitigated (further discussion under ESS2). iii) community health and safety: the project also entails impacts pertaining to community health and safety, particularly associated with COVID-19 and other communicable diseases and road safety (further discussion under ESS4). iv) social exclusion: additional risks include potential exclusion from or inequitable provision of project benefits (e.g. improved services, enhanced social accountability measures) and/or lack of meaningful engagement during preparation and implementation with women Public Disclosure and marginalized groups (e.g. persons with disabilities, women headed households, youth, the poor, people living in Area C, communities in Access Restricted Areas (ARAs) and relatively rural/remote locations, communities more vulnerable to impacts of climate change etc.). The risk will be mitigated through participatory measures incorporated in the project design and the development and implementation of the Project SEP. The GM for MDP-3 will be used for MDP-4 (further discussion under ESS10). Based on the above and given the wide geographical scope of the activities and limited capacity of the municipalities and MDLF in implementing the Bank’s ESF, the social risk rating is Substantial. B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: The environmental impacts related to the construction and operation and maintenance of sub-projects in different infrastructure sectors and scales are expected to include dust and noise emissions, interruptions to public services and infrastructure, road and traffic safety risk, and non-hazardous waste generation. Pollution and health risk related to improper hazardous waste management may result from leakage from supplied oil and fuel, e-waste material from the end of life of computers, and improper disposal and management of wastewater and slurry. OHS risks related to civil works, waste collection, maintenance activities under operational activities , and unexploded ordinances (UXO) during excavation at previously shelled sites in the Gaza Strip. The emission of dust, bio-aerosols, odors, and vehicle exhaust due to waste collection and transportation activities, noise, and vibration from the operation of waste Dec 23, 2022 Page 7 of 15 The World Bank West Bank and Gaza Resilient Municipal Services Project (P178723) processing equipment. Climate change mitigation and adaptation works targeting more than one municipality under Component 3 are expected to cause impact on biodiversity conservation depending on the sub-project spatial location and the scale of interventions. The supply of equipment and vehicles is limited and not expected to have adverse impact on energy and resources efficiency. Key social issues under ESS1 relate to inequitable distribution or potential exclusion of marginalized groups from project benefits; lack of meaningful engagement and consultation particularly with women, youth and vulnerable categories (e.g. women headed households, persons with disabilities, the poor, people living in Area C, ARAs and rural/remote locations, communities more susceptible to climate change etc.) Currently, no information is available regarding ‘associated facilities’ (as defined under the ESF). If an associated facility will be identified under any sub-project, once the exact sub-project details are finalized the associated facilities will be carried out in accordance with the applicable requirements of the project ESCP and relevant Environmental and Social Standards (ESSs), including, inter alia, the ESIA, ESMP. All impacts and risks will be addressed through relevant instruments (including but not limited to the ESMF, site- specific Environmental and Social Impact Assessments/Environmental and Social Management Plans/OR Environmental and Social Management Checklists (ESIAs/ESMPs/OR E&S Management Checklists), Stakeholder Engagement Plan (SEP)) to ensure that they are eliminated/reduced to acceptable levels. While the eligible sector is identified, the sub-projects and their exact locations and design details have not yet been Public Disclosure identified. Hence, MDLF updated the MDP-3 ESMF and will be used for the Project. The ESMF has been reviewed and cleared by the Bank and disclosed on 23 December, 2022. The ESMF specifies the rules and procedures for Environmental and Social Assessment of the proposed sub-projects, including exclusion criteria for subprojects and CERC activities, and guidelines for environmental and social screening identifying screening the impacts on biodiversity and physical cultural heritage, the United Nations Mine Action Service (UNMAS) unexploded ordinances (UXO) pre-screening and assessment for relevant projects in the Gaza Strip. The ESMF provides templates for ESMPs and E&S Management Checklists, actions to address OHS risks related to construction works including risks related to COVID-19, and resource efficiency and pollution prevention management measures throughout the project lifecycle consistent with WBG Environmental Health and Safety Guidelines (EHSG)s and Good International Industry Practices (GIIP). The ESMF also provides GBV/SEA/SH risk mitigation measures, proportionate to “low” risk”, that will be included as required in the site-specific subproject ESIAs/ESMPs, E&S Management Checklists and implemented. Additionally, the ESMF has identified the ESF capacity building activities for the MDLF, MoLG and the municipalities. The ESMF also provides guidance on the type of site-specific ESF instrument that will need to be prepared and the corresponding review and clearance and disclosure requirements, based on the outcome of site-specific environmental and social screenings. Hence, in the case of substantial risk sub-projects MDLF will prepare the environmental and social instruments including but not limited to ESIAs/ESMPs which will be reviewed and cleared and publicly disclosed. For low and moderate risk sub-projects, MDLF will be responsible for preparation and disclosure of the E&S instruments i.e ESMP or E&S Management Checklist or simple E&S mitigation measures. The Dec 23, 2022 Page 8 of 15 The World Bank West Bank and Gaza Resilient Municipal Services Project (P178723) Project Operational Manual (POM) will provide details of the review and clearance process for each environmental and social risk management instrument. The Bank will conduct a post review of the project's compliance with environmental and social risk management requirements. To fulfill the post review requirements, MDLF will conduct a standalone annual E&S audit for the Project, consistent with the relevant ESSs. The E&S audit findings and Corrective Action Plan (CAP, if any) will be reviewed and cleared by the Bank and implemented throughout the project. Finally, MDLF has prepared an ESCP for the project which will be included in the legal agreement between the Bank and the Palestine Liberation Organization (for the benefit of the Palestinian Authority). The ESCP covers, among other actions maintaining E&S staff, implementation of the project ESMF, preparation and implementation of site-specific ESIAs/ESMPs/E&S Management Checklists, implementation of the project Labor Management Procedures (LMP), implementation of the project Land Acquisition and Livelihood Framework (LALF), preparation and implementation of site-specific Land Acquisition and Livelihood Plans (LALPs), and the implementation of the project SEP and any other relevant ESF instruments. The ESCP was cleared by the Bank, and publicly disclosed in country on 22 December, 2022, and on the Bank website by appraisal. ESS10 Stakeholder Engagement and Information Disclosure Project affected parties include (but are not limited to) 159 municipalities in West Bank and Gaza, and people living in the project areas of influence such as direct project beneficiaries, community members and other parties that may be Public Disclosure directly impacted by project activities such as landowners, land users and non-titled land users (if any). Other interested parties include (but are not limited to) institutional actors such as MDLF, MOLG, Palestinian Land Authority, Ministry of Education, Ministry of Health, Ministry of Public Works, Palestinian Water Authority, Palestinian Environmental Quality Authority and other regulatory agencies at the national and local levels, Non- Governmental Organizations (NGOs) and Community Based Organizations (CBOs) providing social services, and the local media. Disadvantaged and vulnerable groups include (but are not restricted to) people living in remote locations, the poor, women headed households, persons with disabilities, youth, people living in Area C, and people living in ARAs both in Gaza and West Bank, etc. A SEP has been prepared for the project, and MDLF has built on the stakeholder engagement experience under MDP- 3 for this purpose. The SEP includes a comprehensive identification of various categories of stakeholders and a methodology for information sharing and disclosure and for ongoing consultation with all stakeholders, including marginalized groups, to ensure that all stakeholders are engaged throughout the project. The SEP also includes details of the project GM. A GM was established for MDP3 and a GM manual was prepared and approved in 2020, and municipalities were informed about the GM during orientation workshops conducted by MDLF. The GM also ensured that all complaints are recorded, addressed and the resolution is reported to complainants. The complaints manual was also updated to include complaint filing measures for potential GBV/SEA/SH related complaints. The GM is functioning adequately and in 2021,103 complaints were submitted to municipalities of which 89 (86%) were resolved while no action was required for the remaining 14 (14%) complaints as they were not related to the project. This GM will also be used for MDP-4 and the lessons learned from MDP-3 GM functioning – e.g. need for better record keeping of local level complaints received/resolved through societal/informal grievance resolution Dec 23, 2022 Page 9 of 15 The World Bank West Bank and Gaza Resilient Municipal Services Project (P178723) mechanisms (e.g. elected councilors, notables etc.); targeted outreach to improve use of GM by women etc. – will be incorporated. MDLF conducted a public consultation meeting on November 01, 2022 for the SEP and other ESF instruments and a summary of the consultation has been reflected in the SEP. Briefly, around 75 participants representing different institutions joined the virtual discussion including representatives of municipalities in West Bank (i.e. Ramallah, Bethlehem) and Gaza (i.e Beit Lahia), relevant ministries (i.e MoLG, Ministry of Labor, PENRA, Ministry of Health), civil society organizations working with people with disabilities, women organizations (e.g.. General Union of Palestinian Women), Palestinian Union of Contractors and Engineering Consultancy Firms. The MDLF informed the participants about the project activities and anticipated E&S risks and mitigation measures. Key aspects of the project’s E&S instruments were also shared with the participants. The MDLF highlighted the importance of engaging stakeholders during the project cycle and introduced the various consultation activities and communication tools, also for women and marginalized groups, included in the SEP. The MDLF also informed participants about the mechanisms for information disclosure, to update communities about the project progress, and to receive feedback from citizens. During the discussion, representatives of municipalities expressed their concerns about the resources required for LALF provisions and requested further guidance, as required, for LALF implementation. Similarly, the contractor’s union highlighted that the project needs to take into consideration the additional cost for implementing the ESMF and the LMP provisions. MDLF also explained the features of the Project GMs (for beneficiaries and workers) to participants and shared relevant details. The SEP will be reviewed and cleared by the Bank and publicly disclosed by project appraisal (23 December 2022) and a commitment to implement the SEP throughout the Project is included in the ESCP. Public Disclosure The SEP is a ‘living’ document and hence, may be updated periodically during project implementation. The ESCP also includes the condition for updating the SEP, as required, during project implementation. Finally, stakeholder consultation meetings under the SEP will be conducted in line with the national restrictions regarding public gatherings for COVID-19 (as and if these are in place) and the World Bank’s guidance note on “Public Consultations and Stakeholder Engagement in World Bank-supported operations when there are constraints on conducting public meetings” and this guidance is include in the SEP. B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions The project activities involve direct workers (MDLF and municipality staff assigned to the project); contracted workers engaged in construction (hired by contractors and subcontractors) and consultancy services (e.g. for preparation of E&S documents); and primary supply workers (i.e workers of suppliers who, on an ongoing basis, provide directly goods or materials essential for the core functions of the project). The Project will not involve community workers. An assessment of project workers is included in the Project Labor Management Procedures (LMP) and further assessment will be done during the preparation of site-specific ESIAs/ESMPs/E&S Management Checklists. Large labor camps are not anticipated for the project. The project involves a range of civil work activities such as for construction/rehabilitation of roads, sidewalks, public facilities (e.g. buildings, parks etc.), water, wastewater, Dec 23, 2022 Page 10 of 15 The World Bank West Bank and Gaza Resilient Municipal Services Project (P178723) drainage and electricity networks, solid waste management infrastructure, and installation of solar photovoltaic equipment (rooftop or field) etc. across the West Bank and Gaza. Therefore, there are labor management issues such as (but not limited to) OHS, working terms and conditions, and equal opportunity. Risk of forced labor related to primary supply workers is anticipated for solar energy sub-projects when photovoltaic (PV) panels are considered essential for the specific sub-project component (without which the sub-project or component will not be viable). Risks of child are not anticipated under the project. The risk of SEA/SH is "low". Workers’ GM, in accordance with the requirements of ESS2, will be established by MDLF and municipalities for direct and any contracted workers engaged by them, and by contractors for construction workers. MDLF has prepared the project LMP and this will be reviewed and cleared by the Bank and disclosed by appraisal (23 December 2022). The LMP covers the assessment of potential labor related risks; an overview of labor regulations, policies and procedures; an assessment of and a plan to prevent GBV/SEA and SH proportionate to the level of risk (low); assessment of occupational health and safety, contract terms and conditions; working age regulations; details of the workers’ GM; and other requirements of ESS2. Site-specific labor management requirements will be prepared as part of site-specific ESIAs/ESMPs/E&S Management Checklists and will be available before the commencement of work at any of the sites. The works contracts will include specific provisions for OHS measures, prevention of child labor and GBV/SEA, CoC in local language, availability of the workers’ GM, and working conditions, following the general following the general World Bank Guidelines on Environmental Health and Safety (EHS Guidelines) and the more specific sector relevant Occupational Public Disclosure Health and Safety guidelines relevant to the sectors guidelines. The MDLF will implement a CoC for their direct and contracted project workers. The MDLF will also request municipalities, contractors and primary suppliers to implement the CoC for their workers in line with the LMP and will ensure that all workers understand and sign the CoC at the time of employment /engagement in the Project. LMP requirements will be incorporated into the procurement documents of contractors and suppliers. Suppliers will be monitored to ensure compliance with the LMP provisions in their respective contracts. Finally, in addition to the program workers identified above, some MDLF and/or municipality staff may also work in connection (full-time or part-time) with the project without being formally transferred to the project. Labor conditions as per as ESS2 will not apply to such workers, and they will remain subject to the terms and conditions of their employment with MDLF or the municipality, except for OHS, provisions of ESS2 related to protection in the work force (i.e. regarding child labor, minimum age and forced labor), and the provisions for SEA/SH (signing of CoC). ESS3 Resource Efficiency and Pollution Prevention and Management This standard remains relevant. The ESMF addressed the potential risks and impacts associated with sub-projects construction include pollution risk related to the hazardous and non-hazardous waste generation and improper management including construction waste, oil, fuel, e-waste, and battery waste associated with solar PV. As well as pollution resulted from waste collection and transportation activities, the construction and operation of slurry management. These risks and mitigation measures required for each waste category will be further elaborated in Dec 23, 2022 Page 11 of 15 The World Bank West Bank and Gaza Resilient Municipal Services Project (P178723) site-specific ESIAs/ESMPs, adapting the mitigation hierarchy, and following the WBG Environmental, Health and Safety Guidelines and Good International Industry Practices (GIIP). On the other hand, the procurement of equipment and vehicles under the project will not be expected to increase energy demand, however the technical specifications for such activities should apply energy efficient specifications. ESS4 Community Health and Safety This standard is relevant. The safety of communities living and working in areas where civil works will be implemented (under Components 1 and 3), will be assessed and measures to mitigate any identified construction related risks will be included in the site-specific ESIAs/ESMPs/E&S Management Checklists. The Project is not anticipated to engage with security personnel. Wherever construction activities require route detours, safety measures to minimize the impact of construction activities and any related increase in traffic on nearby communities and road users, and measure to ensure road and traffic safety and prevent potential road accidents will be put in place and enforced in accordance with acceptable norms and as per the World Bank’s EHS guidelines. Additional community health and safety risks are related to the transmission of COVID-19 (during any future surge in infections) and potential exposure to communicable diseases from project workers; and risks associated with potential SEA/SH. MDLF prepared (as part of the project ESMF) community health and safety management measures that include measures to minimize community exposure to communicable diseases; and provisions (e.g. workers’ CoC, effective monitoring, regular training and awareness raising for workers and communities) to prevent and respond to SEA/SH or GBV proportionate to the level of risk. The project GM also includes special tools for handling and addressing Public Disclosure GBV/SEA/SH cases, including strengthening referral pathways within the GM. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement This standard is relevant. No large scale private land acquisition or physical resettlement is anticipated under the project. However, there may be potential risks (under Component 1) associated with some small-scale private land taking for the expansion of ROW, for rehabilitation and maintenance of water networks, and construction and rehabilitation of roads. Similarly, while activities including construction and rehabilitation of public facilities (e.g. schools, clinics, public centers, solid waste facilities etc.) are generally implemented on public land, some private land taking may be needed in cases where public land is not available. Identified thematic interventions under Component 3 (related to climate change), for example renewable energy, green buildings, green public spaces etc., may also entail some private land taking. Final determination of land needs will be done during subproject preparation. There is also a potential risk of temporary restriction to land use and consequent negative impacts during construction on small enterprises (e.g. shops, kiosks) particularly in commercial areas and such risks will also be assessed and mitigated, as required, during subproject preparation and implementation. Under MDP-3, municipalities met small-scale private land needs for some sub-projects (e.g. Surif Rehabilitation of internal roads, Bureij development and paving of Al Salah Street in Gaza) through Voluntary Land Donation (VLD) or willing-buyer/willing-seller agreements. In such cases, it was ensured that the World Bank specifications for VLD (e.g. for eligibility, consultation and grievance redress, documentation etc.) and requirements for willing-buyer/willing- seller agreements were met. These cases did not involve any physical resettlement or livelihood impacts. Measures Dec 23, 2022 Page 12 of 15 The World Bank West Bank and Gaza Resilient Municipal Services Project (P178723) to address land and livelihood impacts (in accordance with OP.4.12), including the procedures for VLD and willing- buyer/willing-seller cases, were included in the MDP-3 LALF. Under this project municipalities, in collaboration (as required) with MDLF, MoLG and the Palestinian Land Authority (PLA), will be responsible for requisite private land taking including through land acquisition, VLD or willing- buyer/willing-seller arrangements. The MDP-3 LALPF has been updated, in accordance with the requirements of the project and ESS5, and will be used as a LALF for the project. The LALF has been consulted on, and will be reviewed and cleared by the Bank and publicly disclosed by project appraisal (23 December 2022). During project implementation and once the technical designs and locations of interventions are available, site-specific LALPs (if required) will be prepared, consulted on, reviewed and cleared and publicly disclosed. The Project Operational Manual (POM) will provide the details of the review and clearance process for the LALPs. LALPs will be implemented before commencement of construction and a commitment to prepare and implement LALPs during project implementation is included in the project ESCP. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources ESS6 is considered relevant. The project activities under Component 1 are anticipated to be implemented within the urban and semi-urban areas identified in the town masterplan that are not expected to have biodiversity conservation value but is expected to have potential risk of cutting of some trees associated to road expansion and construction sub-projects. The climate mitigation and adaptation activities under Component 3 are expected to be located in areas of potential biodiversity value or cause impact on biodiversity. The ESMF has identified exclusion of Public Disclosure activities that may generate significant impact on biodiversity conservation. Further risk of biodiversity will be assessed under the site-specific ESIAs/ESMPs where the mitigation hierarchy approach will be applied as needed. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities This standard is not relevant to the proposed project. There are no Indigenous Peoples/Sub-Saharan Historically Underserved Traditional Local Communities in the Palestinian Territories. ESS8 Cultural Heritage This standard is considered relevant given the national scope of the project activities, while the towns/cities masterplans identify the location of the physical cultural resource designated by the Ministry of Antiques and Tourism, the masterplans do not identify uncovered resources and nontangible resources. The screening process under ESMF excludes any sub-project that will include rehabilitation of Cultural Heritage resources, and any activity that may cause significant impacts on tangible or intangible cultural heritage resources. Furthermore, the ESMF document provide the Chance Find approach as a mitigation measure for potential findings, where the Chance Find Procedures will be part of the specific ESIA/ESMP, and the E&S Management Checklists for all sub-project works contracts that involve excavation, movement of earth, flooding, or changes to the physical environment activities. ESS9 Financial Intermediaries This standard is not relevant as there are no financial intermediaries involved in this project. Dec 23, 2022 Page 13 of 15 The World Bank West Bank and Gaza Resilient Municipal Services Project (P178723) C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No B.3. Reliance on Borrower’s policy, legal and institutional framework, relevant to the Project risks and impacts Is this project being prepared for use of Borrower Framework? No Areas where “Use of Borrower Framework” is being considered: Use of the Borrower Framework is not being considered for this project. IV. CONTACT POINTS World Bank Public Disclosure Contact: Haji Huseynov Title: Senior Infrastructure Specialist Telephone No: +1-202-473-8143 Email: hhuseynov@worldbank.org Contact: Dana Mohammad Luai M. Title: Urban Development Specialist Almubaied Telephone No: 5366+6520 Email: dalmubaied@worldbank.org Borrower/Client/Recipient Borrower: Palestine Liberation Organization (For The Benefit of the Palestinian Authority) Implementing Agency(ies) Implementing Agency: Municipal Development Lending Fund (MDLF) V. FOR MORE INFORMATION CONTACT Dec 23, 2022 Page 14 of 15 The World Bank West Bank and Gaza Resilient Municipal Services Project (P178723) The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VI. APPROVAL Task Team Leader(s): Dana Mohammad Luai M. Almubaied, Haji Huseynov Practice Manager (ENR/Social) Senait Nigiru Assefa Cleared on 23-Dec-2022 at 06:13:3 GMT-05:00 Public Disclosure Dec 23, 2022 Page 15 of 15