Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) GZ-Water Sector Capacity Building (P117443) MIDDLE EAST AND NORTH AFRICA | West Bank and Gaza | Water Global Practice | Special Financing | Investment Project Financing | FY 2011 | Seq No: 14 | ARCHIVED on 22-Dec-2017 | ISR30908 | Implementing Agencies: Ministry of Finance, Palestinian Water Authority Key Dates Key Project Dates Bank Approval Date:31-Mar-2011 Effectiveness Date:29-Jul-2011 Planned Mid Term Review Date:28-Jan-2013 Actual Mid-Term Review Date:22-Apr-2013 Original Closing Date:31-Dec-2015 Revised Closing Date:31-Dec-2017 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project’s development objective is to strengthen the capacity of the PWA to more effectively plan, monitor, and regulate water sector development in the West Bank and Gaza. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Name Technical Planning and Advisory Team (TPAT):(Cost $4.90 M) Supplementary Studies and Training:(Cost $0.30 M) Project Management:(Cost $0.80 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  High  High 12/22/2017 Public Disclosure Copy Page 1 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) Implementation Status and Key Decisions 1 . The Project is rated moderately satisfactory in achieving the project development objective and in the implementation progress. Despite the reform process and the restructuring of the water sector moved slowly, nevertheless, it has achieved some substantial progress (water law, policies, strategic plans, sector technical tools and procedures, etc.) and further improvement is foreseeable (remaining bylaws are in the final process for approval). The new water law; a Project major outcome, stated new water sector structure; at the national level, (i) the Palestinian Water Authority (PWA) will be responsible for policy making, planning and following up on the sector restructuring and development, (ii) the Water Sector Regulatory Council (WSRC) will monitor and regulate the service provider performance, (iii) the Water National Company that is to be established will provide bulk water supply (iv) at the local level, the water utilities and the water user associations to be established will provide domestic water supply and water for irrigation respectively. 2 . PWA has developed several outputs (policies, strategies, plans, bylaws, regulations, working procedures, etc.) . Water Sector policies and strategies are available for the first time in the sector and will provide guidance towards effective water resources management, sector development and efficient water supply services. The Project supported the local capacity of the PWA as the policymaking and sector planning body in developing the sector policies, strategies, plans, and relevant training was provided. Nevertheless, the PWA needs to effectively mobilize its staff towards achieving clearly defined development objectives to attain the desired new sector structure, while being engaged in emergency response and projects implementation for the sector needs. 3 . On the other hand, the WSRC is progressing towards becoming an independent regulator as it has: a) recruited needed staff; developed internal bylaws and regulations, and produced four monitoring reports for the years 2013 to 2016. The WSRC developed through a World Bank support its water data base and is linked with World Bank Water IBNET. However, the WSRC institutional status will remain unsustainable if the approval of the licensing bylaw (formulating the income source for the WSRC) is not granted. The licensing bylaw, once approved, should authorize the payment of licensing fees to the WSRC by the service providers. The bylaw has been finalized and is being forwarded by the PWA to the (CoM) for approval. The WSRC is still dependent on development partners funding for its operational costs. 4 . To complete the water sector restructuring process, the PWA shall establish the National Water Company (NWC), they have completed the road map that suggested the way forward. The PWA’s strategic approach is to resolve some of the problems at the bulk water supply level to pave the road for the NWC and address some of the challenges including pricing related issues with the Israeli Bulk Company (Mekorot); water thefts in Area C (under Israeli Authority control); internal regulations regarding staff, assets valuation and accounting and financial statements. A draft bylaw has been developed and need to be sent for the Cabinet of Ministers approval. 5 . At the Local level, PWA has developed a road map to establish the Water Regional Utilities (WRUs) and pilot areas for regional water utilities have been identified. The World Bank’s upcoming operation will support the establishment of water utilities at the local level, building on one of the road map scenarios by establishing independent water utilities for selected main municipalities. In parallel, the PWA has developed and finalized a bylaw for the utilities establishment, which is ready for the CoM approval. 1. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  High  High Macroeconomic  --  High  High Sector Strategies and Policies  --  Substantial  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial 12/22/2017 Public Disclosure Copy Page 2 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) Fiduciary  --  Substantial  Substantial Environment and Social  --  Low  Moderate Stakeholders  --  Substantial  Substantial Other  --  --  -- Overall  --  High  High Results Project Development Objective Indicators PHINDPDOTBL  Sector Reform Planning Document developed, Updated yearly approved yearly by PWA and COMSC (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Jan-2011 28-Apr-2017 02-Nov-2017 31-Dec-2017 PHINDPDOTBL  Water law is updated and consulted with stakeholders and approved by responsible Authorities (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Jan-2011 28-Apr-2017 02-Nov-2017 31-Dec-2017 PHINDPDOTBL  Water Sector Policy and Strategy approved by PWA (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Jan-2011 28-Apr-2017 02-Nov-2017 31-Dec-2017 PHINDPDOTBL  WSRC is strengthened and Functional (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Not available WSRC has been WSRC has been WSRC 12/22/2017 Public Disclosure Copy Page 3 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) established, staffed, established, staffed, established, strategy strategy developed. staffed, underdevelopment. strategies, and bylaws approved and under implementation Date 24-Jun-2015 28-Apr-2017 02-Nov-2017 31-Dec-2017 PHINDPDOTBL  Monitoring Reports on Service Providers performance are developed and published annually (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Three Reports were Annual report is Annual report is Value None finalized for 2013, 2014 developed and developed and disclosed and 2015 disclosed Date 03-Mar-2011 28-Apr-2017 02-Nov-2017 31-Dec-2017 Overall Comments Intermediate Results Indicators PHINDIRITBL  Quarterly Status Memoranda on Sector Reform produced (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Jan-2011 28-Apr-2017 02-Nov-2017 31-Dec-2017 12/22/2017 Public Disclosure Copy Page 4 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) PHINDIRITBL New PWA organizational structured established and the redeployed staff implement its functions based on the developed job descriptions (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Done, but still needs Done, but still needs the Value No the Cabinet of Cabinet of Ministers Yes Ministers endorsement. endorsement. Date 01-May-2011 28-Apr-2017 02-Nov-2017 31-Dec-2016 PHINDIRITBL  Technical regulations, guidelines, standards, are reviewed/ updated/, developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.00 14.00 14.00 Date 01-May-2011 02-May-2017 02-Nov-2017 31-Dec-2017 PHINDIRITBL  Water Regulatory Council establishment action Plan and Bylaw developed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes (partially) Yes Yes Date 01-Jan-2011 28-Apr-2017 28-Apr-2017 31-Dec-2017 PHINDIRITBL  National Water Company Bylaw developed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No, Road map Value No No, still in draft developed and bylaw in Yes draft Date 01-Jan-2011 28-Apr-2016 02-Nov-2017 31-Dec-2017 12/22/2017 Public Disclosure Copy Page 5 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) PHINDIRITBL  Regional Water Utilities Bylaw developed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Yes. Approved by the PWA and forwarded to Value No No, still in draft Yes the cabinet of Ministers for approval Date 01-Jan-2011 28-Apr-2017 02-Nov-2017 31-Dec-2017 PHINDIRITBL  Strategies produced and consulted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 10.00 9.00 Date 01-Apr-2011 28-Apr-2017 02-Nov-2017 31-Dec-2017 PHINDIRITBL  Plans and planning support tools developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13.00 16.00 16.00 Date 01-May-2011 28-Apr-2017 02-Nov-2017 31-Dec-2015 PHINDIRITBL  Relevant Studies conducted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 3.00 Date 01-May-2011 01-Nov-2016 02-Nov-2017 31-Dec-2015 12/22/2017 Public Disclosure Copy Page 6 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) PHINDIRITBL  WSRC strategy and implementation plan developed and implemented (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 03-Mar-2011 28-Apr-2017 02-Nov-2017 30-Jun-2017 PHINDIRITBL  WSRC Information system created and maintained (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 03-Mar-2011 28-Apr-2017 02-Nov-2017 30-Jun-2017 PHINDIRITBL  WSRC Technical regulations, guidelines, standards, and systems are reviewed/ updated/, developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 11.00 11.00 Date 03-Mar-2011 28-Apr-2017 02-Nov-2017 30-Jun-2017 PHINDIRITBL  PWA’s improved capacities are effectively applied as measured by (i) 85 Staff Trained; Among which 18 females, and (ii) 14 TrainingCourses conducted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 95.00 95.00 85.00 Date 01-Jan-2011 28-Apr-2017 02-Nov-2017 31-Dec-2017 Overall Comments 12/22/2017 Public Disclosure Copy Page 7 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P117443 TF-15756 Effective USD 3.00 3.00 0.00 2.16 0.84 72% P153889 TF-19350 Closed USD 2.00 0.00 2.00 0.00 0.00 100% P117443 TF-99491 Effective USD 3.00 3.00 0.00 3.00 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P117443 TF-15756 Effective 05-Feb-2014 18-Feb-2014 02-Jun-2014 31-Dec-2015 31-Dec-2017 P153889 TF-19350 Closed 02-Jul-2015 02-Jul-2015 08-Jul-2015 31-Dec-2017 30-Oct-2015 P117443 TF-99491 Effective 03-May-2011 03-May-2011 29-Jul-2011 31-Jul-2014 31-Dec-2017 Cumulative Disbursements Restructuring History There has been no restructuring to date. 12/22/2017 Public Disclosure Copy Page 8 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report GZ-Water Sector Capacity Building (P117443) Related Project(s) P153889- Water Sector Capacity Building Project Additional Financing 12/22/2017 Public Disclosure Copy Page 9 of 9