The World Bank Implementation Status & Results Report GZ-Third Municipal Development Project (P159258) GZ-Third Municipal Development Project (P159258) MIDDLE EAST AND NORTH AFRICA | West Bank and Gaza | Social, Urban, Rural and Resilience Global Practice Global Practice | Special Financing | Investment Project Financing | FY 2018 | Seq No: 3 | ARCHIVED on 25-Jan-2019 | ISR35658 | Implementing Agencies: Municipal Development Lending Fund (MDLF), Palestine Liberation Organization (For The Benefit of the Palestinian Authority) Key Dates Key Project Dates Bank Approval Date: 21-Jul-2017 Effectiveness Date: 14-Dec-2017 Planned Mid Term Review Date: 24-Feb-2020 Actual Mid-Term Review Date: -- Original Closing Date: 28-Feb-2022 Revised Closing Date: 28-Feb-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) is to enhance the institutional capacity of municipalities in the West Bank and Gaza for more accountable and sustainable service delivery. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Municipal Performance and Service Delivery:(Cost $29954255.00 M) Capacity Development:(Cost $1063830.00 M) Municipal Partnership Projects:(Cost $930000.00 M) Project Implementation Support and Management Cost:(Cost $4051915.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Bank jointly with other Financing Partners (FPs) conducted an Implementation Support mission during November 12 to December 3, 2018 to review implementation performance and discuss preparations for implementation of the proposed Third Municipal Development Project (MDP3) Additional Financing (AF). The mission assessed the overall progress of MDP3 as Satisfactory in terms of both the Project Development Objective (PDO) and implementation progress. The current project focus is on making Palestinian municipalities credit-worthy, i.e., financially sustainable and able to access the credit market for municipal project financing. The Municipal Development and Lending Fund (MDLF) is encouraged to further align the capacity building packages with the creditworthiness thrust of the project. 1/25/2019 Page 1 of 7 The World Bank Implementation Status & Results Report GZ-Third Municipal Development Project (P159258) The French Development Agency (AFD) and the European Union (EU) have committed to augment the project financing by EUR10 million each. The Additional Financing will address expected project financing gap due to additional per capita investment allocation (to account for population increase) and increased demand for capacity building support after the USAID-supported and MDP3-aligned training activities wind down mid-2019. The MDLF will update the project financial plans to account for activities that will be supported by the Additional Financing to MDP3. Finally, as the project has completed the first year of implementation, MDLF is encouraged to pay close attention to the project’s Results Framework and start generating and analyzing data on project accomplishments. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic High High High Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary High Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other -- Low Low Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Strengthened municipal institutions IN00621843 ►Number of municipalities that move up one rank in the performance assessment system (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 01-Sep-2017 03-Jan-2018 03-Jan-2018 28-Feb-2022 The PDO indicator will measure number of municipalities that move up one rank in performance. The Comments: ranking system has 10 ranks based on 4 categories (D, C, B and A) with 21 KPIs from D to A++. Accountable and responsive service delivery IN00621852 1/25/2019 Page 2 of 7 The World Bank Implementation Status & Results Report GZ-Third Municipal Development Project (P159258) ►People provided with improved urban living conditions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 500,000.00 Date 01-Sep-2017 03-Jan-2018 03-Jan-2018 28-Feb-2022 The Corporate Result indicator (CRI) measures the cumulative number of people living in urban areas that have been provided with access to improved services, housing, tenure, neighborhoods, public spaces, Comments: parks, resilience, and/or urban environmental conditions, through the direct interventions of operations supported by the World Bank. Its a new CRI and will added to the WB Portal. Target of 500.000 will be IN00621853 reviewed in 2019. Female beneficiaries (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 250,000.00 Date 01-Sep-2017 03-Jan-2018 03-Jan-2018 28-Feb-2022 IN00621814 ►Municipalities with public disclosure of executed budget and executed SDIP (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 01-Sep-2017 03-Jan-2018 03-Jan-2018 28-Feb-2022 The disclosure will take place on social media platform, (Facebook), municipal bulletin board, MoLG's Comments: homepage and/or other platform. From year three (2019) the readable format from MoLG will be used, once endorsed by MoLG. Financially sustainable municipalities IN00621815 ►Number of municipalities with operational and enterprise surplus and no increase in arrears (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 40.00 40.00 40.00 80.00 Date 01-Sep-2017 03-Jan-2018 03-Jan-2018 28-Feb-2022 This indicators will measure municipalities that have surplus in their operational and enterprise account Comments: and no increase in arrears from last year. Municipalities that fulfill this criteria have not increased net debt to suppliers of water and electricity. Baseline will be updated in June 2017. Intermediate Results Indicators by Components Municipal Performance and Service Delivery IN00621846 ►Number of municipalities completing sub projects within each cycle (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 1/25/2019 Page 3 of 7 The World Bank Implementation Status & Results Report GZ-Third Municipal Development Project (P159258) Value 0.00 0.00 0.00 140.00 Date 01-Sep-2017 03-Jan-2018 03-Jan-2018 28-Feb-2022 The indicator will measure the number of municipalities that complete sub projects within each of the two Comments: budget cycles: 1 January 2018 to 31 December 2019 and 1 January 2020 to 31 December 2021. IN00621845 ►Percentage of investments financed under the project in adequate technical state and used as intended (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 01-Sep-2017 30-Aug-2018 30-Aug-2018 28-Feb-2022 The indicator will measure the percentage of investments with acceptable standard and acceptable usage. Comments: Measured as “adequate state of usability” according to MDLF assessment of 5-6 % of executed projects. The baseline will be update in June 2017. IN00621847 ►% of beneficiaries satisfied with municipal sub projects executed under MDP 3 (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 01-Sep-2017 03-Jan-2018 03-Jan-2018 28-Feb-2022 The indicator will measure the % of beneficiaries that are satisfied with municipal sub-projects. The Comments: baseline will be updated in July 2017. It will be gender disaggregated. IN00621841 ►Number of municipalities graduated to category A (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 5.00 5.00 15.00 Date 01-Sep-2017 03-Jan-2018 03-Jan-2018 28-Feb-2022 The indicator will measure number of municipalities that graduate to category A the highest category in the performance system. It is measured by the project's performance assessment system to measure Comments: municipal performance from category D (the lowest) to A the highest. Baseline will be updated in June 2017. IN00621850 ►Number of municipalities with yearly increase in revenues collected by the municipality (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 50.00 50.00 120.00 Date 01-Sep-2017 03-Jan-2018 03-Jan-2018 28-Feb-2022 The indicator will measure the number of municipalities that increase the revenues collected by the Comments: municipality from year to year. It will not cover revenues collected by Ministry of Finance e.g. property taxation and transportation tax. IN00621844 ►Number of municipalities with functional complaint system (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 22.00 22.00 22.00 100.00 1/25/2019 Page 4 of 7 The World Bank Implementation Status & Results Report GZ-Third Municipal Development Project (P159258) Date 01-Sep-2017 03-Jan-2018 03-Jan-2018 28-Feb-2022 The indicator will measure that a functional municipal complaint system exists in 2021 following National guidelines. Functional municipal complaints system will include ability to produce data on grievances by Comments: type and by level of resolution. For baseline and in 2019 the indicator will only measure that the complaint system exists in Citizen Service Centers. Capacity Development IN00621842 ►Road Map for MDLF as Lending Intermediary consulted with relevant stakeholders (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Sep-2017 03-Jan-2018 03-Jan-2018 28-Feb-2022 A TA is supporting the development of a Road Map for MDLF's transformation into a lending intermediary Comments: for municipal borrowing. The Road Map shall be consulted with relevant stakeholders in a seminar or similar. IN00621849 ►Municipal audit standard developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Sep-2017 03-Jan-2018 03-Jan-2018 28-Feb-2022 Comments: MoLG develops standards for how external municipal audits shall be carried out Municipal Partnership Projects IN00621851 ►Number of municipalities reporting enhanced capacity to engage with private sector for municipal service delivery and/or local economic development (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 25.00 Date 01-Sep-2017 03-Jan-2018 03-Jan-2018 28-Feb-2022 The indicator will measure the number of municipalities that reports enhanced capacity to engage with Comments: private sector for municipal service delivery and/or local economic development following concrete actions/TA from MDP 3. Project Implementation Support and Management Cost IN00621848 ►Percentage of municipalities satisfied with MDLF support (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 75.00 75.00 75.00 95.00 Date 01-Sep-2017 03-Jan-2018 03-Jan-2018 28-Feb-2022 The indicator will measure the number of municipalities that are satisfied with the support received from Comments: MDLF. The baseline will be updated in June 2017. 1/25/2019 Page 5 of 7 The World Bank Implementation Status & Results Report GZ-Third Municipal Development Project (P159258) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P159258 TF-A4800 Effective USD 16.00 16.00 0.00 3.57 12.43 22% P159258 TF-A6154 Effective USD 20.00 20.00 0.00 2.27 17.73 11% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P159258 TF-A4800 Effective 21-Jul-2017 18-Sep-2017 14-Dec-2017 28-Feb-2022 28-Feb-2022 P159258 TF-A6154 Effective 27-Nov-2017 27-Nov-2017 21-Dec-2017 28-Feb-2022 28-Feb-2022 Cumulative Disbursements 1/25/2019 Page 6 of 7 The World Bank Implementation Status & Results Report GZ-Third Municipal Development Project (P159258) Restructuring History There has been no restructuring to date. Related Project(s) P168544-Additional Financing for Emergency Labor-intensive Gaza Municipal Services 1/25/2019 Page 7 of 7