The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Local Governance and Services Improvement Program (P148896) MIDDLE EAST AND NORTH AFRICA | West Bank and Gaza | Urban, Resilience and Land Global Practice | Requesting Unit: MNC04 | Responsible Unit: SMNUR Special Financing | Program-for-Results Financing | FY 2016 | Team Leader(s): Christopher T. Pablo Seq No: 9 | ARCHIVED on 28-May-2020 | ISR39970 | Created by: Dana Mohammad Luai M. Almubaied on 12-Dec-2019 | Modified by: Dana Mohammad Luai M. Almubaied on 28-May-2020 Program Development Objectives Program Development Objective (from Program Appraisal Document) The development objective of the proposed program is to strengthen the local government financing system and improve local servicedelivery in Program villages. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status and Key Decisions The Local Governance and Services Improvement Program (LGSIP) continues to show progress in meeting its Project Development Objective. The Program aims to strengthen the local government financing system and improve local service delivery in Program villages. As part of the efforts to help Village Councils (VCs) respond to the emerging needs caused by COVID-19 pandemic, the Ministry of Local Government (MOLG) in consultation with the World Bank, has allowed VCs to use part of their capital grants to cover expenses related to the emergency response. The measures imposed by the Palestinian Government after declaring the state of emergency on March 03, 2020 are causing delays in the implementation of Program activities. The Ministry of Local Government and the Municipal Development and Lending Fund, as the implementing agencies of the Program, are working closely with VCs and Joint Service Councils to resume and expedite the completion of Program activities by closing date. Given the delays experienced so far and upon the request of the client, the Program closing date will be extended until December 31, 2021. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P148896 TF-A1039 Effective USD 5.00 5.00 0.00 4.86 0.14 97% P148896 TF-A4511 Effective USD 13.00 13.00 0.00 6.74 6.26 52% Key Dates (by loan) 5/28/2020 Page 1 of 9 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P148896 TF-A1039 Effective 14-Mar-2016 14-Mar-2016 02-Jun-2016 31-Dec-2020 31-Dec-2020 P148896 TF-A4511 Effective 14-Mar-2017 14-Mar-2017 23-May-2017 31-Dec-2020 31-Dec-2020 Program Action Plan Action Description Decree for disbursement of grant to larger VC bank account issued Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 30-Nov-2015 Completed Completion Measurement Decree issued and transfers are executed to large VCs annually Decree was issued and disbursement of annual capital grants are being transferred from MOLG to large VCs Comments annually. Action Description Development of program Environmental and Social Management Manual (ESSM) Source DLI# Responsibility Timing Timing Value Status Client Due Date 15-Jun-2016 Completed Completion Measurement Comments Action Description Development of the Program Operation Manual Source DLI# Responsibility Timing Timing Value Status Client Due Date 26-May-2016 Completed Completion Measurement Comments Action Description Annual Capital Investment Plans (ACIPs) prepared according to prescribed format Source DLI# Responsibility Timing Timing Value Status Client Due Date 01-Oct-2016 Completed Completion Measurement Comments 5/28/2020 Page 2 of 9 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Action Description Draft proposal prepared for revised LGU functional assignments Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 28-Jan-2020 In Progress Completion Measurement proposal prepared This DLI requires more consultations with government and LGUs. A draft proposal prepared by consultants is under Comments review by the team and will be discussed by end of December 2020. Action Description Establish Program Committee to ensure effective inter-ministerial coordination Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Oct-2015 Completed Completion Measurement Comments Action Description Allocation of the transportation fee to VCs reformed Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 30-Jun-2018 Completed Completion Measurement Transportation Fee reform directive was approved by the Minister of Local Government Comments Action Description Design and implement a comprehensive VC/JSC monitoring system Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Dec-2016 Completed Completion Measurement Comments Action Description Assessment and ranking of JSCs carried out in accordance with Program schedule Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Oct-2016 Completed Completion Measurement 5/28/2020 Page 3 of 9 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Comments Regular training to be provided on FM, procurement, social and environment systems and participatory monitoring Action Description and evaluation focusing on women and youth, at the village council, directorate, and central levels (MDLF and MoLG) Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous In Progress Completion Measurement Comments All VCs to submit their budgets, annual plans, annual financial statements and audit reports to the MoLG on a regular Action Description and timely basis Source DLI# Responsibility Timing Timing Value Status Client Recurrent Yearly In Progress Completion Measurement Comments VCs to prepare annual action plan to address audit findings within a period of six months after the receipt of the audit Action Description report Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement compliance of the requirement (preparation of annual plans) every year Comments Qualified VCs, JSCs, MDLF and MoLG post their procurement and contract award notices on single procurement Action Description portal Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress VCs, JSCs, MDLF and MoLG are posting their procurement and contract award notices as they come on a single Completion Measurement procurement portal. Comments Action Description Procurement complaint handling mechanism and Dispute Review Unit operational 5/28/2020 Page 4 of 9 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous Delayed Completion Measurement Comments Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- High Moderate Macroeconomic -- High Moderate Sector Strategies and Policies -- High Moderate Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and -- Substantial Substantial Sustainability Fiduciary -- Substantial Moderate Environment and Social -- Moderate Moderate Stakeholders -- Substantial Substantial Other -- -- -- Overall -- High Moderate RiskComments Comments As part of the OPCS SORT rating recalibration exercise, the revised approach has been applied to estimating residual risk to achieving the PDO taking into account the planned, ongoing and completed mitigation measures for the project. While the impact of many of the residual risks are high to substantial, the likelihood of occurrence of any of these negative events is low. As such the ratings have been calibrated and are assessed as such. Results PDO Indicators by Objectives / Outcomes Strengthen local government financing system and improve local service delivery in Program villages. IN00844501 ►PDO indicator 1: VCs receiving transparent and predictable Annual Capital Grants (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 74.50 76.40 70.00 5/28/2020 Page 5 of 9 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Date 16-Sep-2015 16-Apr-2019 15-May-2020 31-Dec-2020 Comments IN00844505 ►PDO indicator 2: Timely communication to VCs of the formula based Annual Capital Investment Grant (ACIG) allocations and timely transfer of ACIGs to eligible VCs (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 16-Sep-2015 16-Apr-2019 15-May-2020 31-Dec-2020 Comments IN00844509 ►PDO indicator 3: People benefiting from improved service delivery in Program villages (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 338,157.00 423,123.00 350,000.00 Date 16-Sep-2015 16-Apr-2019 15-May-2020 31-Dec-2020 Comments IN00844513 ►PDO indicator 4: Beneficiaries that feel Program investments reflected their needs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 16-Sep-2015 20-Sep-2018 15-May-2020 31-Dec-2020 Based on the results of the BIA midterm review. MDLF is yet to commission the BIA for FY20. The target is Comments expected to be achieved by second half of 2021 (upon completion of FY20 Program investments). Intermediate Results Indicators by Results Areas Results area 1: Strengthening local government financing system IN00844502 ►One: Annual Capital Grant Allocation Formula approved by MoLG (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 16-Sep-2015 16-Apr-2019 15-May-2020 31-Dec-2020 Comments IN00844506 ►Two: Steps to improve transparency and predictability of Transportation Fee adopted by MoLG (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 5/28/2020 Page 6 of 9 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) By FY 18, at least 25% of Annual Capital Grants allocation to VCs is disbursed Value Not available Delayed Delayed annually per capita and on time in line with LGSIP Annual Capital Grant Flow Chart. Date 16-Sep-2015 20-Sep-2018 15-May-2020 31-Dec-2020 Achievement of result is yet to be verified by IVA. The IVA report was submitted to the Bank . It is expected Comments to be verified by the Bank before end of June 2020. IN00844510 ►Three: Percentage of VCs submitting their annual budget to MoLG electronically on time and have disclosed budgets publicly (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 74.50 76.40 60.00 Date 16-Sep-2015 16-Apr-2019 15-May-2020 31-Dec-2020 Comments Results area 2: Strengthening institutional systems for improved service delivery IN00844503 ►Four: Percentage of VCs that have initiated implementation of their ACIPs in the same fiscal year (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 77.00 70.00 Date 16-Sep-2015 20-Sep-2018 15-May-2020 31-Dec-2020 Comments IN00844507 ►Five: Cumulative number of joint projects approved (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 21.00 18.00 Date 16-Sep-2015 20-Sep-2018 15-May-2020 31-Dec-2020 Comments IN00844511 ►Six: Number of JSCs qualifying for financing under the Program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 14.00 19.00 27.00 22.00 Date 16-Sep-2015 20-Sep-2018 15-May-2020 31-Dec-2020 Comments IN00844514 5/28/2020 Page 7 of 9 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) ►Seven: Share of vulnerable groups who participated in ACIP consultations (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 29.00 30.00 Date 16-Sep-2015 20-Sep-2018 15-May-2020 31-Dec-2020 Comments IN00844516 ►Eight: Direct beneficiaries (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 338,157.00 423,123.00 350,000.00 Date 16-Sep-2015 16-Apr-2019 15-May-2020 31-Dec-2020 Comments IN00844520 Direct beneficiaries of which female (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 49.00 49.00 50.00 Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 DLI 1: Enabling steps to strengthen local governance by MoLG (Output, 1,800,000.00, 56%) Baseline Actual (Previous) Actual (Current) FY20 Value No Yes Yes -- Date 16-Sep-2015 31-Jul-2017 31-Jul-2017 -- 20-Sep-2018 Comments ►DLI 2 DLI 3: Percentage of VCs meeting the Program eligibility criteria annually (Process, 5,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY20 Value 0.00 74.50 76.40 70.00 Date 16-Sep-2015 31-May-2019 10-Feb-2020 -- DLR 3.4 was confirmed to be achieved for FY20. Comments ►DLI 3 DLI 2: Timely communication to VCs of the formula-based Annual Capital Investment Grant (ACIG) allocations and timely transfer of ACIGs to eligible VCs (Process, 3,200,000.00, 0%) 5/28/2020 Page 8 of 9 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Baseline Actual (Previous) Actual (Current) FY20 Value No Yes Yes Yes Date 16-Sep-2015 31-May-2019 10-Feb-2020 -- Achieved Comments ►DLI 4 DLI 4: Cumulative number of Joint Projects approved (Output, 4,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY20 Value 0.00 10.00 21.00 18.00 Date 16-Sep-2015 20-Sep-2018 10-Feb-2020 -- achieved. Comments ►DLI 5 DLI5: Aggregated expenditure percentage of approved Joint Projects (Process, 1,500,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY20 Value 0.00 0.00 0.00 50.00 Date 16-Sep-2015 20-Sep-2018 10-Feb-2020 -- MDLF is expected to achieve FY20 end target by end of December 2020. Comments ►DLI 6 DLI 6: Steps to improve transparency and predictability in the allocation of Transportation Fee adopted by MoLG (Process, 1,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY20 Value no No No -- Date 20-Jan-2016 20-Sep-2018 20-Sep-2018 -- The verification for achieving DLR 6.2 is currently underway. Comments ►DLI 7 DLI 7: Capacity Building Activities delivered by MoLG based on their Annual Capacity Development Plan (Process, 1,500,000.00, 13%) Baseline Actual (Previous) Actual (Current) FY20 Value No Yes Yes -- Date 16-Sep-2015 31-May-2019 10-Feb-2020 -- Achieved Comments 5/28/2020 Page 9 of 9