DOCUMEN r SThe World Bank Tel (Office): 02-236-6500 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Fax (Office): 02-236-6543 INTERNATIONAL DEVELOPMENT ASSOCIATION Steen Lau Jorgensen, Country Director sjorgensen@worldbank.org P.O. Box 54842, Jerusalem February 11, 2014 H.E. Dr. ShukryBishara Minister of Finance Palestinian Authority Ramallah Re: GZ- Water Sector Capacity Buildini Project (TF099491) Reallocation, closing date extension and Modification of Performance Monitorin- Indicators notice to the Trust Fund Grant Amareement Excellency: We refer to the Trust Fund Grant Agreement between the Palestine Liberation Organization (for the benefit of the Palestinian Authority) (the Recipient) and the International Development Association, as Administrator of the Trust Fund for Gaza and West Bank (the Administrator) for the above referenced Projectsignedon May 3, 2011 (the Trust Fund Grant Agreement). We also refer to your letter(No MoF/W.B/1 1232/2013) dated October 28, 2013 requesting anamendment of the Trust Fund Grant Agreement. We hereby accede to your request to amend the Trust Fund Grant Agreement (TF099491) as follows: 1. Paragraph A.2 of Section IV of Schedule 2 (reallocation of funds across categories) as of the below table: Category of Expenditure Allocation % of Financin g Current Revised Current Revised Current Revised (US$) Goods, No change 2,200,000 2,390,767 100% 100% consultants' services and training Incremental No change 800,000 609,233 100% 100% Operating Expenses TOTAL 3,000,000 3,000,000 100% 100% 2. Paragraph B2 of Section IV of Schedule 2; the project closing date will be December 31, 2015. RCA 248423. 0 WUI 64145 0 FAX (202) 477-6391 -2- 3. Paragraph A. I Section 11 of Schedule II; the Recipient shall monitor and evaluate implementation of the project in accordance with the Performance Monitoring Indicators in annex I attached to this letter. Except as specifically amended by this Amendment Letter, all provisions of the Trust Fund Grant Agreement remain in full force and effect. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION ZXeen Jorgensen Country Director ACKNOWLEDGED AND CONFIRMED: PALESTINE LIBERATION ORGANIZATION (for the Benefit of the Palestinian Authority) By: Name: A1 . Title: 4%Ay\[ci~c Date: rrLevA \ -3- Cleared with and cc.: Steven N. Schonberger, Sector Manager (MNSWA) Maiada Kassem, Finance Officer (CTRLA) Nikolai Soubbotin (LEGAM) Trust Fund Accounting and Clearance Team (TACT) cc.: Messrs./Mmes. Ahmad, Schonberger, Pollard, Rammal, Abu Hassanein, (MNSSD); Cho, Antar, (MNCO4); Mukherjee, Pugachevsky, Nachazel, Nyajur (MNCA4); Taylor, Tutunji, Jaber (MNAPR); Waly, Mashi (MNAFM); Byam, Hamed Mahmood(MNAOS); Ahuja, Gyllerup, Oyelese (MNADE); Soubbotin (LEGAM); Kassem, Ben Brahim (CTRLA); Tayler, Tutunji, Jaber (MNAPC); Waly, Mashni, Hussein (MNAFM); IRIS Files. ANNEX 1: Results Framework (Performance Monitoring Indicators) PDO Level Results Unit of Baseline Cumulative Target Values** Freque Data Responsibility Indicators* Measure (2011) ncy Source/ for Data Method Collection o 0 ology Progress to date Target Target End of Project (2013) 2014 2015 1. Sector Reform D No Yes Yes Yes Yes Semi- TPAT PWA Yes/No Planning Document annual and PWA developed, Updated progress yearly approved reports yearly by PWA and COMSC 2. Water law is Yes/No No Semi- TPAT PWA updated and No Yes Yes Yes annual and PWA consulted with progress stakeholders and First update of the reports approved by water low is responsible completed Authorities 3. Water Sector Y/ No Yes Yes Yes Semi- Contract PWA Yes/No No Policy and Strategy annual ual approved by PWA deliverab le RCA 248423 LJ WUI 64145 W FAX (202) 477-6391 -5- 4. PWA's improved N b No 20(6 females),4 30 8 females),6 35( 4 Females,4 85( 18 females),14 Semi- TPAT PWA capacities are annual and PWA effectively applied progress as measured by (i) reports 85 Staff Trained; Among which 18 females, and (ii) 14 Training Courses conducted Intermediate Unit of Baseline Cumulative Target Values** Freque Data Responsibility Results Indicators* Measure (2011) ncy Source/ for Data Method Collection ology Progress to date Target Target End of Project (2013) 2014 2015 Quarterly Status ~YsN o N Yes/No No No Yes Yes Yes Quarter TPAT PWA Memoranda on ly and and PWA Sector Reform Semi- progress produced annual reports New restructured ElKy o N Key No No Yes Yes Yes Semi- TPAT PWA PWA established Document annual and PWA and the redeployed progress staff implement its reports functions based on the developed job descriptions Water Regulatory Oi Key No No Yes Yes Yes Semi- TPAT PWA Council Documents annual and PWA establishment progress action Plan and reports Bylaw developed -6- National Water Key No No Yes Yes Yes Semi- TPAT PWA Company Bylaw Documents annual and PWA developed progress reports Regional water Key No No Yes Yes Yes Semi- TPAT PWA Utilities Bylaw Documents annual and PWA developed progress reports Strategies produced O Number 0 0 3 2 5 Semi- Contract PWA and consulted annual ual Strategies Strategies covering - Strategies covering covering: Capacity -Sustainable f c Delivera development, Jutcri,bles -Sustainable NRW, financing, -Sludge disposal Communication, -Non Revenue Watner, n- Capacity development, Water, -Communication -Sludge disposal Technical LINme Number 0 2 4 15 15 Semi- Contract PWA regulations, annual ua guidelines, Technical -Drinking water PWA regulations Technical Guidelines for standards, are Guidelines for quality produced on: 1. WR PMU Delivera reviewed/ PMU, standards drilling, abstraction, PMU Financialles updated/, -PMU Financial -PWA regulation 2. WR and facilities Guidelines deveopedGuielins onwatr taiff protection, 3. WS and Guidelines on water tariff, 4. WW and -Drinking water quality tariff standards -PWA guidelines -PWA regulation on produced on: 1. water tariff Research, Studies, 2. Fin & Adm, 3. PWA regulations Planning & Design, 4 produced on: 1. WR Sanitation facility drilling, abstraction, 2. supervision WR and facilities s u p e r vi si o n _p r o t e c t io n , 3 . W S a n d -7- -WRC regulations tariff, 4. WW and tariff produced on: Licensing of SPs PWA guidelines produced on: 1. -WRC guidelines Research, Studies, 2. produced on: Fin & Fin & Adm, 3. Planning Adm & Design, 4. Sanitation -Standard for WW facility supervision quality produced, -WRC regulations consulted, produced on: Licensing implemented of SPs -WRC guidelines produced on: Fin & Adm -Standard for WW quality produced, consulted, implemented Plans and planning l Numbers 0 2 7 7 7 Semi- Contract PWA support tools annual ual developed -Climate change -Assessment of -Climate change -Climate change mitigation Hydro mitigation measures mitigation measures Delivera measures monitoring produced produced bles produced equipment, and -Evaluation of surface -Evaluation of surface specifications -Evaluation of water and water and groundwater surface water and groundwater surface surface models groundwater -Standard models produced- produced-Assessment surface models Formats and Assessment of Hydro of Hydro monitoring produced Methodology monitoring equipment, and for Planning equipment, and specifications produced produced specifications -Standard Formats and -ToR for Master produced Methodology for Plan N-NE West -Standard Formats Planning produced Bank produced and Methodology for ________________ __________ _______ ______________ ____________ ____________ -ToR - forfr MaterelanP-lan __N- -8- -Water Planning produced NE West Bank Emergency Preparedness R for Master Plan produced Prprdes N-NE West Bank -Water Emergency Plan produced produced Preparedness Plan -Communication Planouice -Water Emergency produced ToPreparedness Plan -Communication Plan produced produced -Communication Plan -Assessment of Hydro produced monitoring equipment, -Asesmen o Hyra and specifications -Asersmeo rocy ce monitoringproduced equipment, and specifications produced Relevant Studies Nubr 012 33 Numbero0municationatus, conducted- -Assessment of sustoinability -Assessment of AcuiedReioalan trifAcquired Regional Acquired Regional Experience on system Experience on Experience n Wastewateruipmemettaano Wastewater Wastewater Treatment, Treatment, Reuse road map ind and Sludge Gaza prepared Tat , Ruse Mneteo nd Slude Management Trans Management Study coduteuNmbry boNry Stuy Mngm tSud -NWtatus,3 S t-NRW status sustainability and tariff sustainability and system implementation AcquiredapRigionaa tariff system riec on implementation road prepared mop in Gaza - Trans boundary water Treatment,ReusaroadnmapzinSRuse anylug prepared u n tu M eTrans boundary water Study -9- Results Framework Project Development Objective Indicators Indicator Name Description (indicator definition, etc.) 1. Sector Reform Planning Document developed, Updated yearly This is a reform planning document, which explains the reform process in the sector and specify main areas that approved yearly by PWA and COMSC need reform including timeframe. This include action plan. Both are updated yearly. 2. Water law is updated and consulted with stakeholders and approved by The legal document which governs the water sector and regulates different water interventions. This needs to be responsible Authorities endorsed by the Cabinet and approved by the president 3. Water Sector Policy and Strategy approved by PWA The Water Sector Policy and Strategy is a document(s) which explain the main principles which the water sector will adopt in managing and regulating the water sector activities including the water resource, water supply and wastewater. It also spills out the main actions that are to be followed to develop the sector. 4. PWA's improved capacities are effectively applied as measured by (i) 85 Includes number of PWA trained staff and number of training courses they attended to gain relevant knowledge Staff Trained; Among which 18 females, and (ii) 14 Training Courses and experience, which shall appear in increasing application of the developments and tools conducted Intermediate Results Indicators Indicator Name Description (indicator definition, etc.) 1. Quarterly Status Memoranda on Sector Reform produced Document presenting the progress according to the Reform Plan Document per quarter 2. New restructured PWA established and the redeployed staff implement New organization structure with functions and staff for PWA is developed their functions based on the developed job descriptions 3. Water Regulatory Council establishment action Plan and Bylaw Legal documents and regulations (bylaws and guidelines) that describe the main functions, duties and developed responsibility of the WRC -10- 4. National Water Company Bylaw developed Legal documents include the regulations that describe the main functions, duties and responsibility of the NWC and guide its main due diligence. 5. Regional Water Utilities Bylaw developed Legal documents include the regulations that describe the main functions, duties and responsibility of the RWU's and guide their main due diligence 6. Strategies produced and consulted Main guiding documents (policies and strategies) that are necessary to effectively plan, monitor and regulate the water sector 7. Technical regulations, guidelines, standards, are reviewed/ updated!, Main (14) technical guiding documents such as (guidelines and standards) that are necessary to effectively plan, developed monitor and regulate the water sector 8. Plans and planning support tools developed Set (7) of Planning tools and documents which will help PWA to manage effectively the Water Sector and be able to respond to future needs and un expected emergencies 9. Relevant Studies conducted Technical Studies (3) that are needed to support PWA in developing Policies, strategies, and plans