$ Report No: RES00244 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF Real Estate Registration Project APPROVED ON 22-Jul-2019 TO Palestine Liberation Organization (for the benefit of the Palestinian Authority) Urban, Resilience and Land Middle East And North Africa Regional Vice President: Ousmane Dione Regional Director: Meskerem Brhane Country Director: Stefan W. Emblad Practice Manager: Catherine Signe Tovey Task Team Leader(s): Giscard Didier Sagashya, Mohamed Nada The World Bank Real Estate Registration Project (P168576) ABBREVIATIONS AND ACRONYMS CD: Country Director FM: Financial Management GPRBA: Global Partnership for Results-Based Approaches IBRD: International Bank for Reconstruction and Development IDA: International Development Association IVA: Independent Verification Agent LWSC: Land and Water Settlement Commission MOF: Ministry of Finance NDP: National Development Plan PDO: Project Development Objective PLA: Palestinian Land Authority PID MDTF: Partnership for Infrastructure Development Multi-Donor Trust Fund PIU: Project Implementation Unit RERP: Real Estate Registration Project SLR: Systematic Land Registration TFGWB: Trust Fund for Gaza and West Bank The World Bank Real Estate Registration Project (P168576) @#&OPS~Doctype~OPS^dynamics@restrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name P168576 Real Estate Registration Project Product/Financing Instrument Geographical Identifier Investment Project Financing (IPF) West Bank and Gaza Approval Date Current Closing Date 22-Jul-2019 30-Nov-2024 Original EA Category Partial Assessment (B) (PAD Approval Package-22 Jul 2019) Organizations Borrower Responsible Agency Palestine Liberation Organization (for the benefit of the Land and Water Settlement Commission (LWSC), Ministry of Palestinian Authority) Finance, Palestine Land Authority (PLA) @#&OPS~Doctype~OPS^dynamics@restrhybridoperationstatus#doctemplate OPERATION STATUS Project Development Objective (DO) Original Development Objective The project development objective is to enhance tenure security and improve real estate registration services. Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Balance % Disbursed i The World Bank Real Estate Registration Project (P168576) IBRD -- -- -- 0 IDA -- -- -- 0 Grants 10.10 9.81 0.29 97.14 Policy Waivers Does this restructuring trigger the need for any policy waiver(s)? No @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate ii The World Bank Real Estate Registration Project (P168576) TABLE OF CONTENTS I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1 II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................2 III. PROPOSED CHANGES ................................................................................................................................................3 IV. DETAILED CHANGE(S) ...............................................................................................................................................3 The World Bank Real Estate Registration Project (P168576) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING The Real Estate Registration Project (RERP) was approved by the World Bank Board of Directors on July 22, 2019, and became effective on March 5, 2020, with financing in the amount of US$12.6 million. The Project Development Objective (PDO) is to enhance tenure security and improve real estate registration services. In alignment with the Palestinian Authorities’ Road Map for Reforming the Palestinian Land Sector and National Development Plan (NDP 2021-23), the project supports the ongoing systematic land registration (SLR) process overseen by Land and Water Settlement Committee (LWSC) in Areas A and B of the West Bank, while also enhancing land and property services and land records management overseen by the Palestinian Land Authority (PLA). The project was restructured in January 2023 based on the government request received on the 4th of July 2022. The restructuring introduced critical changes and adjustments to address several compounded challenges that included, at that time, ineffectual and absentee project management, weak coordination, and collaboration between PLA, LWSC, and the Project Implementation Unit (PIU) staff. Among these changes were: (i) addition of MOF as an implementing agency; (ii) revisions to the targets and scope of select indicators listed in the results framework; (iii) revisions to the payment thresholds for the project’s performance-based conditions, partial cancellation of project financing in the amount of US$2,500,000 under Component 1 and updating disbursement estimates; (iv) reallocation of project financing between the different components; and (v) addition of a new project activity related to digitization of historic land records to support the systematic land registration process under Component 1. A significant shift in the performance of the project was noted after the restructuring as a result of several synergistic actions, which included: (i) activating the project’s Steering Committee and strengthening the coordination between the different stakeholders partaking in the implementation of the project; (ii) developing a detailed and timed-bound action plan for all the project’s components; (iii) hiring a seasoned director for the PIU and recruiting professional and dedicated staff for all vacant positions; (iv) strengthening the monitoring and reporting system and submitting monthly progress reports to the project's Steering Committee and the World Bank task team; and (v) enhancing contract management and hiring of technical experts to support the implementation of the different activities. In October 2023, the project underwent a restructuring to extend the project closing date by 12 months till November 30, 2024, providing needed time for ensuring the achievement of all PDO indicators, the completion of all project activities in a satisfactory manner, and fully disbursing the project’s funds. The extension of the closing date was not accompanied by any change in the project’s objective, results, technical scope, safeguards policies or budget, and it was only extension in the project’s duration. As of July 1, 2024, the project has maintained a steady performance. Progress in achieving PDO level indicators is moving in the right direction. For PDO indicator No. (1) related to No. of properties to be registered, the number of titles that have been registered and verified by the latest IVA has reached 161,804 titles (100% of targeted number) compared to 146,783 titles registered by January 2024. PDO indicator No. (2) related to the % of women ownership has reached 31% exceeding the expected target of 30%. Similarly, PDO indicator No. (3) related to reduction in the time for registering a property under the systematic land registration process which was reduced from 10.5 months to 5 months (target is 7.5 months). Page 1 The World Bank Real Estate Registration Project (P168576) PDO indicator No. (4 and 5), related to beneficiaries’ satisfaction, were achieved in the first survey and the second survey, i.e. 89% and 86% respectively superseding the target of 70%. And finally, with PDO indicator No. (6) PLA offices whose properties are digitized have reached 15 offices (exceeding the target of 10 offices). It is worth mentioning that the performance-based conditions have been achieved with fully implementing the Gender Action Plan to enhance women's access to land rights and the last package is currently being disbursed. The overall disbursement of the project has reached 89.98%. The rating related to implementation progress, achievement of PDO indicators and FM is satisfactory because of the steady performance of the PIU, LWSC and the PLA in managing the project, the significant improvement in the disbursement rate, the progress in achieving the PDO indicators and Project FM performance. Currently there are no overdue Interim unaudited financial reports and no overdue project audits. The financial management arrangement of the projects namely financial management organizational and staffing, project accounting and financial reporting arrangements; internal control procedures; planning and budgeting continue to be acceptable to the Bank. II. DESCRIPTION OF PROPOSED CHANGES The Ministry of Finance has submitted to the World Bank a formal request on April 23, 2024, seeking an extension of the project for 4 calendar months. Despite the one-year extension of November 2023, the development of PLA Digital Transformation Strategy delayed starting due to constraints of movement, caused by ongoing conflict since October 7, 2023, to finalize the registration of company, in accordance with Palestinian Laws, that won the contract to conduct that activity. Another delay was added by the coming into power of new government at end of March 2024 that affected the signing of the contract by Ministry of Finance. With the project’s officially closing on November 30, 2024, and despite the significant improvement in the project performance, there is a need to maintain the momentum generated by this project and provide the necessary time to accomplish several crucial tasks, including the completion of a digital transformation strategy for the Palestinian Land Authority, conducting a third customer satisfaction survey to assess LWSC services, finalizing the project evaluation and preparing the recipient completion report, and concluding the audit of the project accounts for the year 2024. This extension will ensure continued success of this project, thus, it is suggested to have an extension of the current project closing date by an additional 4 calendar months, from November 30, 2024, to March 31, 2025, without incurring any additional costs or making changes to the PDO, Results Framework or safeguards policies. It should be noted that the FM, disbursement arrangements and requirements will be extended to cover the new closing date; this includes extending the FM reporting requirements (i.e. IFR and Audit) to cover the new closing date and the new disbursement/Application deadline. Last year's restructuring added a 12-month extension to the project; with the current proposed restructuring, the total months of extension will be 16 months for the entire project (less than 24 months), thus necessitating CD approval only. Page 2 The World Bank Real Estate Registration Project (P168576) It should be noted that the closing date of the Global Partnership for Results-Based Approaches “GPRBA” Grant No. TF0B0358 was June 30, 2024, in respect of the donor end date limitation, while the Trust Fund for Gaza and West Bank “TFGWB” Grant No. TF0B0351 and the Partnership for Infrastructure Development Multi-Donor Trust Fund “PIDMDTF” Grant No. TF0B359 will be extended up to March 31, 2025; and the outstanding undisbursed amount under TFGWB and PID MDTF is $370.32K and $134.31K respectively as of July 1, 2024. @#&OPS~Doctype~OPS^dynamics@restrhybridsummarychanges#doctemplate Summary changes III. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Development Objective No Loan Closing Date Extension Yes Safeguard Policies Triggered No Implementation Schedule Yes ISDS No Loan Cancellations No MFD/PCE No Reallocations No Results No Financial Management No Risks No Procurement No Legal Covenants No Institutional Arrangement No Conditions No Implementation Modalities No Disbursements Estimates No Disbursements Arrangements No DDO No Clients No Appraisal Summary No Components No @#&OPS~Doctype~OPS^dynamics@restrhybriddetailedchanges-disclose#doctemplate IV. DETAILED CHANGE(S) COSTS & FINANCING Private Capital Facilitation Is this an MFD-Enabling Project (MFD-EP)? Page 3 The World Bank Real Estate Registration Project (P168576) Is this project Private Capital Enabling (PCE)? LOANS Loan Closing Original Revised Proposed Proposed Deadline Loan/Credit/Trust Status Closing Closing(s) Closing for Withdrawal Fund Applications TF-B0351-001 Effective 30-Nov-2023 30-Nov-2024 31-Mar-2025 31-Jul-2025 TF-B0358-001 Closed 30-Nov-2023 30-Jun-2024 TF-B0359-001 Effective 30-Nov-2023 30-Nov-2024 31-Mar-2025 31-Jul-2025 Page 4