West-Bank-and-Gaza-Solid-Waste-Management-Project ...

Official Use

Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No: PAD3545

INTERNATIONAL DEVELOPMENT ASSOCIATION

PROJECT PAPER

ON A PROPOSED RESTRUCTURING

AND A

PROPOSED ADDITIONAL GRANT IN THE AMOUNT OF US$2.0 MILLION

FROM THE GLOBAL PARTNERSHIP FOR RESULTS-BASED APPROACHES (GPRBA)

AND A

PROPOSED ADDITONAL GRANT IN THE AMOUNT OF US$1.25 MILLION

FROM THE PARTNERSHIP FOR INFRASTRUCTURE DEVELOPMENT – MULTI-DONOR TRUST FUND (PID-MDTF)

TO THE

THE PALESTINE LIBERATION ORGANIZATION (FOR THE BENEFIT OF THE PALESTINIAN AUTHORITY)

FOR A

GAZA SOLID WASTE MANAGEMENT PROJECT

August 28, 2020

Urban, Resilience, and Land Global Practice

Middle East and North Africa Region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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Official Use

CURRENCY EQUIVALENTS (Exchange Rate Effective June 30, 2020)

Currency Unit = Israeli New Sheqalim (ILS)

US$1 = ILS 3.45

FISCAL YEAR

January 1 – December 31

ABBREVIATIONS AND ACRONYMS

AF Additional Financing

ARAP Abbreviated Resettlement Action Plan

CPF Country Partnership Framework

COVID-19 Corona Virus Disease 2019

DA Designated Account

EQA Environmental Quality Authority

ESIA Environmental and Social Impact Assessment

ESMP Environmental and Social Management Plan

FM Financial Management

GPRBA Global Partnership for Results-Based Approaches

GRM Grievance Redress Mechanism

GSWMP Gaza Solid Waste Management Project

IFR Interim Financial Report

ILS Israeli New Sheqalim

IP Implementation Progress

IVA Independent Verification Agent

JSC Joint Services Council

JSC-KRM Joint Services Council for Khan Younis, Rafah, and Middle Area

MDLF Municipal Development and Lending Fund

MOF Ministry of Finance

MOLG Ministry of Local Government

MSW Municipal Solid Waste

MWP Medical Waste Producer

NGO Nongovernmental Organization

O&M Operations and Maintenance

OBA Output-Based Aid

PA Palestinian Authority

PDO Project Development Objective

PID-MDTF Partnership for Infrastructure Development – Multi-Donor Trust Fund

PDSU Project Development and Safeguards Unit

PPSD Project Procurement Strategy for Development

RBF Results-Based Financing

RF Results Framework

SOPs Standard Operating Procedures

Official Use

SWM Solid Waste Management

TA Technical Assistance

TFGWB Trust Fund for Gaza and West Bank

TOU Technical Operations Unit

WWTP Wastewater Treatment Plant

Regional Vice President: Ferid Belhaj

Country Director: Kanthan Shankar

Regional Director: Ayat Soliman

Practice Manager: Jaafar Sadok Friaa

Task Team Leaders: John Morton; Phoram Shah

The World Bank ADDITIONAL FINANCE :GAZA SOLID WASTE MANAGEMENT PROJECT (P171328)

Page 1 of 65

BASIC INFORMATION – PARENT (Gaza Solid Waste Management Project - P121648)

Country Product Line Team Leader(s)

West Bank and Gaza Special Financing John Morton

Project ID Financing Instrument Resp CC Req CC Practice Area (Lead)

P121648 Investment Project Financing

SMNUR (9352) MNC04 (5562) Urban, Resilience and Land

Implementing Agency: Municipal Development and Lending Fund ADD_FIN_TBL1

Is this a regionally tagged project?

No

Bank/IFC Collaboration

No

Approval Date Closing Date Expected Guarantee Expiration Date

Original Environmental Assessment Category

Current EA Category

31-Mar-2014 30-Nov-2020 Full Assessment (A) Full Assessment (A)

Financing & Implementation Modalities Parent

[ ] Multiphase Programmatic Approach [MPA] [ ] Contingent Emergency Response Component (CERC)

[ ] Series of Projects (SOP) [ ] Fragile State(s)

[ ] Performance-Based Conditions (PBCs) [ ] Small State(s)

[ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country

[ ] Project-Based Guarantee [ ] Conflict

[ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster

[ ] Alternate Procurement Arrangements (APA) [ ] Hands-on, Enhanced Implementation Support (HEIS)


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Development Objective(s) The objective of this project is to improve solid waste management services in the Gaza Strip.

Ratings (from Parent ISR) RATING_DRAFT_NO

Implementation Latest ISR

05-Dec-2017 18-Jun-2018 02-Oct-2018 04-Apr-2019 08-Oct-2019 01-Apr-2020

Progress towards

achievement of

PDO MS

MS

MS

MS

S

S

Overall

Implementation

Progress (IP) MU

MU

MS

MS

S

S

Overall

Safeguards

Rating MS

MS

MS

MS

MS

MS

Overall Risk H

H

H

H

H

H

BASIC INFORMATION – ADDITIONAL FINANCING (ADDITIONAL FINANCE :GAZA SOLID WASTE MANAGEMENT PROJECT - P171328) ADDFIN_TABLE

Project ID Project Name Additional Financing Type Urgent Need or Capacity Constraints

P171328 ADDITIONAL FINANCE :GAZA SOLID WASTE MANAGEMENT PROJECT

Cost Overrun/Financing Gap, Restructuring, Scale Up

No

Financing instrument Product line Approval Date

Investment Project Financing

Recipient Executed Activities

28-Aug-2020

Projected Date of Full Disbursement

Bank/IFC Collaboration Joint Level

31-Oct-2022 Yes Joint Project - involving co financing with IFC (loan, equity, budget, other) or staffing


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Is this a regionally tagged project?

No

Financing & Implementation Modalities Child

[ ] Series of Projects (SOP) [✓] Fragile State(s)

[ ] Performance-Based Conditions (PBCs) [ ] Small State(s)

[ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country

[ ] Project-Based Guarantee [✓] Conflict

[ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster

[ ] Alternate Procurement Arrangements (APA) [ ] Hands-on, Enhanced Implementation Support (HEIS)

[ ] Contingent Emergency Response Component (CERC)

Disbursement Summary (from Parent ISR)

Source of Funds Net

Commitments Total Disbursed Remaining Balance Disbursed

Grants 10.00 8.83 1.17

88 %

PROJECT FINANCING DATA – ADDITIONAL FINANCING (ADDITIONAL FINANCE :GAZA SOLID WASTE MANAGEMENT PROJECT - P171328)

PROJECT FINANCING DATA (US$, Millions)

SUMMARY-NewFi n1

SUMMARY (Total Financing)

Current Financing Proposed Additional

Financing Total Proposed

Financing

Total Project Cost 29.35 3.25 32.60

Total Financing 29.35 3.25 32.60

Financing Gap 0.00 0.00 0.00

DETAILSNewFinEnh1- Additional Financing

Non-World Bank Group Financing


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Trust Funds 3.25

Global Partnership on Output-based Aid 2.00

Partnership for Intrastructure Development MDTF 1.25

COMPLIANCE

Policy

Does the project depart from the CPF in content or in other significant respects?

[ ] Yes [ ✔ ] No

Does the project require any other Policy waiver(s)?

[ ] Yes [ ✔ ] No

INSTITUTIONAL DATA

Practice Area (Lead)

Urban, Resilience and Land

Contributing Practice Areas

PROJECT TEAM

Bank Staff

Name Role Specialization Unit

John Morton Team Leader (ADM Responsible)

Sr. Urban Enviroment Specialist

SAEU2

Phoram Shah Team Leader Urban Specialist SMNUR

Ala' Abd Minem Mohammad Turshan

Procurement Specialist (ADM Responsible)

Procurement EMNRU

Riham Hussein Financial Management Specialist (ADM Responsible)

Financial Management EMNGU

Amal Nabil Faltas Bastorous

Social Specialist (ADM Responsible)

Social Safeguards SMNSO

Shafick Hoossein Environmental Specialist (ADM Responsible)

Enviromental Specialist SMNEN


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Rumana Kemer Abubeker Team Member Project Development Specialist

SMNUR

Thao Phuong Tuong Team Member Project Assistant SMNUR

Victoria Ahlonkoba Bruce-Goga

Team Member Project Assistant SMNUR

Extended Team

Name Title Organization Location

The World Bank ADDITIONAL FINANCE: GAZA SOLID WASTE MANAGEMENT PROJECT (P171328)

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WEST BANK AND GAZA

ADDITIONAL FINANCE: GAZA SOLID WASTE MANAGEMENT PROJECT

TABLE OF CONTENTS

I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING ....................................................7

II. DESCRIPTION OF ADDITIONAL FINANCING ................................................................................ 14

III. KEY RISKS ................................................................................................................................. 19

IV. APPRAISAL SUMMARY .............................................................................................................. 21

V. WORLD BANK GRIEVANCE REDRESS .......................................................................................... 29

VI. SUMMARY TABLE OF CHANGES ................................................................................................. 30

VII. DETAILED CHANGE(S) ................................................................................................................ 30

VIII. RESULTS FRAMEWORK AND MONITORING ................................................................................ 37

ANNEX 1: RESULTS BASED OUTCOMES, TARGETS AND INDICATORS FOR GPRBA FUNDED ACTIVITIES . 53

ANNEX 2: RESULTS BASED PAYMENTS FOR GPRBA FUNDED ACTIVITIES ............................................. 57

ANNEX 3: SUMMARY OF GENDER ACTION PLAN ............................................................................... 61

ANNEX 4: CLIMATE CHANGE AND VULNERABILITY ............................................................................ 64


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I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING

A. Introduction

1. This Project Paper seeks the approval of the Regional Vice President to provide additional financing (AF) in the form of grants in the amount of US$2.00 million from the Global Partnership for Results-Based Approaches (GPRBA) 1 and US$1.25 million from the Partnership for Infrastructure Development Multi-Donor Trust Fund (PID-MDTF)2 to the Palestinian Authority (PA) for the Gaza Solid Waste Management Project (GSWMP3, P121648). The grant from GPRBA would finance, in exchange for improved service management and quality, payments that would be used to support operational costs associated with the new infrastructure and services (the new landfill, upgraded transfer stations, collection equipment, and medical waste treatment) built recently through the GSWMP or through other donor support. In doing so, the grant will: (a) allow the service provider—the Joint Services Council for Khan Younis, Rafah, and Middle Area (the JSC-KRM)—to deliver quality solid waste services; (b) strengthen the operational and financial capacity of the JSC-KRM and member municipalities; (c) help ensure the project’s operational and financial sustainability, hence amplifying the project’s long-term impact; and (d) contribute to the development of operational standards for their landfill that could be applied across the West Bank and Gaza. The grant from the PID-MDTF would provide AF for the parent GSWMP project activities to fill a financing gap due to cost overruns as a result of increased costs of infrastructure and temporary increases in costs of operational expenditures in the context of the current COVID-19 pandemic.

2. The AF will be accompanied by the parent project restructuring that includes: (a) triggering of the Pest Management Operational Policy (OP 4.09); (b) a closing date4 extension from November 30, 2020 to June 30, 2022 which cumulatively exceeds two years from the original closing date (November 30, 2019); (c) modifications of the results framework (RF) to include additional result indicators related to GPRBA-supported activity, citizen engagement, and gender, and change of the end target date; (d) reallocation of the funds among disbursement categories and among project components; and (e) revisions to the Project Development Objective (PDO) to correctly reflect the wording as stated in the original grant agreement. Implementation schedule will be also adjusted in accordance with the proposed extension of

1 The US$2 million GPRBA funding is contributed from two different trust fund sources, a multi-donor trust fund and from the International Finance Cooperation (IFC) trust fund window. The two funding sources have different closing dates hence two separate grant agreements with different closing dates for each grant have been prepared. The GPRBA MDTF funding will close by June 30, 2021 and the IFC funding will close by June 30, 2022. The closing date for the GSWMP will be June 30, 2022 to accommodate the latter closing date and implementation schedule. 2 The Project Appraisal Document of the parent Gaza Solid Waste Management Project indicated a contribution from the Government of Sweden.

Through this additional financing, the World Bank Managed PID-MDTF, to which the Government of Sweden is a donor, will be used to activate the Government of Sweden contribution to the project activities. The contribution indicated in the Project Appraisal Document (US$0.64 million) of the parent GSWMP project was increased through this AF to a total of US$1.25 million. This was done to account for the higher than anticipated costs of solid waste infrastructure and COVID 19 related expenses. 3 The GSWMP was approved on March 2014 and the project has been effective since July 2014. The project was financed by the World Bank and

other development partners for the total amount of US$35.95 million. With updated co-financing amounts and using current exchange rates the current total project financing that have been activated is US$29.43 million, of which US$10 million is from the World Bank-administered Trust Fund for Gaza and West Bank (TFGWB). The project development objective (PDO) of GSWMP is to improve solid waste management services in the Gaza Strip through provision of more efficient, environmentally and socially sound waste management systems. 4 AF closing date for PID-MDTF and GPRBA (IFC portion) is also June 30, 2022; GPRBA (MDTF) closing date is June 30, 2021.


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the closing date. New subcomponents financed by the GPRBA grant will be added through the amendment to the original grant as part of Component 4 but won’t be financed by the original grant.

3. No changes would be made to the existing implementation arrangements. The Municipal Development and Lending Fund (MDLF) would continue to be fully responsible for all project implementation, safeguards, fiduciary, monitoring, and reporting arrangements, while the JSC-KRM would be responsible for operating the landfill and the two transfer stations.

4. The safeguards policies triggered for the parent operation are Environmental Assessment (OP4.01) and Involuntary Resettlement (OP4.12). In addition to OP4.01 and OP4.12, the AF triggers Pest Management (OP4.09) given the need for pesticides in landfill operations. The Environmental and Social Impact Assessment (ESIA)5 prepared for the parent project has been updated that covers more explicitly the operations phase. A Pest Management Plan has been added to the updated ESIA. No land acquisition is required for the activities to be financed under this proposed AF.

B. Background

Project Background (GSWMP - Parent Project)

5. Designed with the main objective of improving solid waste management services in the Gaza Strip through provision of more efficient, environmentally and socially sound waste management systems, the GSWMP has been under implementation since 2014. The US$29.43 million project funded by the World Bank and other development partners6 is being implemented in Southern Gaza, which covers about 64 percent of the Gaza Strip’s total geographic area. At project completion, the new sanitary landfill and transfer stations supported under the project are expected to serve over 900,000 residents (about 46 percent of the population of Gaza) in three southern governorates in Gaza: Khan Younis, Rafah, and Middle Area.

6. The project includes the construction of environmentally sound sanitary infrastructure facilities and improves the capacity of solid waste management institutions in Southern Gaza. It is organized under four main components: (a) Solid Waste Transfer and Disposal Facilities (Component 1); (b) Institutional Strengthening (Component 2); (c) Primary Collection and Resource Recovery (Component 3); and (d) Project Management (Component 4). The design of the project ensures the key infrastructure investments supported under Component 1 are complemented by a comprehensive institutional strengthening and capacity-building program (Component 2) and studies that focused on the optimization of primary collection and resource recovery (Component 3) aimed at improving service provision at the different stages of solid waste management service chain.

Status of Implementation of the Parent Project

5 The executive summary of the updated ESIA in Arabic as well as the full document in English were disclosed in-country on May 4, 2020 and on the World Bank’s external website on May 19, 2020. 6 Includes French Development Agency, the European Union, Islamic Development Bank, Government of Sweden and UNDP. At the time of the parent project approval in 2014, the expected financing envelope, that included contingencies was US$35.95 million. The current financing amount adjusted for the actual donor and borrower contributions and an updated exchange rate (for EU-AFD portion financed in Euros) is US$29.43 million. Note that the Government of Sweden Funding is not included in this total number, as it is being activated as part of this AF through the Partnership for Infrastructure Development multi-donor trust fund (PID-MDTF).


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7. Despite initial delays and fragile context of Gaza, the project’s implementation stayed on track toward achieving its objectives. While the project experienced major implementation delays and challenges7 in the initial years, implementation improved following a midterm review and subsequent project restructuring. The project restructuring in 2018 helped address major implementation hurdles and included removing the excavated soil to an alternative location; addressing issues of scattered waste and illegal dumping through the provision of fencing around the landfill construction site; creating a designated cell for disposing incoming waste in the interim period before the landfill was constructed; and ensuring the safety and restoring the livelihood of the waste pickers at the dump site through successful retraining and job placement.

8. The overall implementation progress (IP) and the progress towards achievement of the PDO have improved in the last two years, and both are currently rated Satisfactory8. US$8.83 million (88 percent) has been disbursed out of US$10 million financed by the TFGWB. Progress and results achieved under each component are as follows:

• The key infrastructure investments supported under Component 1 have been successfully completed. The project supported construction of the sanitary waste management landfill—the Sofa landfill at Al-Fukhari—which went into operation in August 2019.

• Other supporting infrastructure investments including the Sofa Access Road and transfer stations have been completed. A new transfer station was built at Rafah to provide a means to transfer the waste to larger trucks for more cost-effective transfer to the landfill. The Khan Younis transfer station has been rehabilitated and will function as a medical waste treatment facility.

• Improved standard operating procedures (SOPs) for managing the landfill and transfer stations are being developed for adoption by the JSC-KRM. An international firm has been retained for ‘professionalization’ including developing the SOPs and providing capacity enhancement support and training to the JSC-KRM staff for the first year of operation.

• Closure plans for the Dier Al Balah landfill and Al-Fukhari (Sofa) dumpsite have been developed. The Deir al Balah landfill (in operation since 1997 and reached capacity in 2018) and the Al-Fukhari dumpsite were major sources of environmental problems (smoke, odor from leachate, and spread of flies) and posed safety issues (slope instability) in the project area before the GSWMP. Implementation of the closure plan for these sites is expected to be completed by the project closing date.

• All environmental and social safeguards measures have been successfully implemented. The Abbreviated Resettlement Action Plans (ARAPs) prepared for landowners and individual waste pickers have been successfully delivered to project-affected people. The livelihood

7 Challenges included: (a) execution of the contract for the landfill and delays in land acquisition for storing the excavated soil, (b) problems with lack of space for storing the incoming waste while the landfill was under construction, (c) scattered waste and problems with illegal dumping/dumpsites, and (d) ensuring of the safety and income of the waste pickers at the dump site and defining the contractual and institutional arrangements for the operational phase. 8 Both implementation progress and progress towards achievement of the PDO had been rated Moderately Satisfactory since October 2018 and were upgraded to Satisfactory in October 2019.


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restoration program that targeted 16 waste pickers has been successful in providing improved sustainable livelihood opportunity.

• Project components related to technical assistance (TA) that include institutional strengthening (Component 2) and optimization of primary collection resource recovery (Component 3) are largely completed.

Assessment of Implementing Agency

9. The performance of, and collaboration between, MDLF (the Project Implementation Unit) and the JSC-KRM (facility operator) have been satisfactory. Qualified professionals have been recruited competitively and transparently from the Gaza Strip, who are fully committed not only to the goals of this project but also to the overall mission of the JSC-KRM. Moreover, the MDLF staff have acquired substantial knowledge of the World Bank safeguards policies, especially OP 4.01 and 4.12. Monitoring and reporting on compliance with the measures delineated in the Environmental and Social Management Plan (ESMP) has been satisfactory, as has the implementation of the Grievance Redress Mechanism (GRM) and ARAP.

C. Rationale for AF and Parent Project Restructuring

10. While the GSWMP succeeded in establishing environmentally sound solid waste management systems and modernized infrastructure, the improved systems have resulted in increased operational costs. With the effectiveness of the new sanitary landfill and transfer stations, the JSC-KRM’s operational cost for delivering improved disposal services has nearly doubled. Currently the JSC-KRM’s revenue for operating these upgraded facilities largely relies on fees charged to participating municipalities that have been updated to respond to increased costs of the new transfer station and final disposal services. According to the 2020 JSC-KRM financial analysis, only about 50 percent of the total bills charged by the JSC-KRM are collected. In addition, the JSC-KRM is tasked with providing container upkeep, equipment, and truck maintenance services—currently lacking—in the area where the JSC-KRM operates. The municipalities currently do not have adequate capacity to simultaneously pay for the JSC-KRM’s upgraded transfer station and disposal services. Without external assistance to meet the revenue gap, the JSC-KRM will not be able to fully finance these services.

11. Further compounding the issue are the costs and practices for proper medical waste management. While the JSC-KRM is mandated to provide medical waste treatment and disposal, the medical waste producers (hospitals, clinics, and nongovernmental organizations-NGOs) are responsible for the proper sorting and separation of medical waste at the source and pay fees to the JSC-KRM for treatment and final disposal. The medical waste producers do not carry out proper separation of waste due to lack of capacity and resources for frequent monitoring and lack of enforcement of proper handling of waste. The risk of mixing domestic waste with medical waste exposes the JSC-KRM employees to health risks. Conversely, placing solid waste with contaminated medical waste increases costs for medical waste treatment significantly. In addition, the costs of medical waste treatment undertaken by the JSC-KRM are high and can be reduced through adoption of lower cost technology and use of solar generators.

12. Underpinning the modernization of solid waste infrastructure and service delivery, there is also a greater need for establishing operational standards for landfills. Although there have been several investment projects focused on the construction of sanitary landfills and associated facilities in the West


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Bank and Gaza (mostly in the West Bank), the sector still suffers from lack of established landfill operational standards, for instance, on landfill leachate management and odor, which is a pervasive problem in almost all landfills constructed in West Bank and Gaza in the last two decades. The parent project (GSWMP) is addressing this issue in Gaza by establishing a practical and sustainable operational standard for the newly constructed landfill. This is being achieved through the international professionalization contractor hired by the project to provide TA and capacity strengthening support to the JSC-KRM who will develop Standard Operating Procedures and provide management and administrative training to the JSC-KRM staff.

13. To address the aforementioned operational needs, the MOLG requested the World Bank for additional financial assistance. An implementation support mission conducted in June 2019 confirmed the financial need for this assistance in the amount of US$2 million. The AF will provide financing to help the JSC-KRM operate and support cost recovery for the upgraded transfer station and disposal services of the JSC-KRM as well as the newly expanded container maintenance and medical waste services for the first two years of operation. The grant assistance is expected to allow the JSC-KRM sufficient time and incentives to improve its service quality and increase tariff and collection rate to reach reasonable levels of cost recovery (from the current baseline of 50 percent to 70 percent9), ensuring the operational and financial sustainability of the project. In addition, the need for AF in the amount of US$1.25 was identified as needed in order to provide a means of including the Government of Sweden financing in the parent project and to cover financing gaps due to increased costs.

14. A portion of the AF is provided through the Global Partnership for Results-Based Approaches (GPRBA), formerly known as Global Program for Output-Based Aid (GPOBA), which piloted the Output-Based Aid approach. A distinctive feature of the approach is that outputs are defined as closely to the desired outcome or impact and it ties the disbursement of public funding in the form of “subsidies” or more broadly “results-based payments” to the service provider for the achievement of clearly specified results that directly support improved basic services. It explicitly links this the financing to the achievement of agreed outputs, by making payments against independently verified and reported results rather than against expenditures on goods, services or works10.

15. The approach is modelled after previous output-based aid programs in solid waste (West Bank, Nepal and Jamaica for example11) and supports results in two areas: (a) improvement in solid waste service delivery; and (b) strengthening of the financial sustainability. By providing payments for verified financial and service results, it is expected to incentivize the JSC-KRM to improve service delivery and operational performance. The scheme also offers gradual phasing out of the results-based payments that have been successfully demonstrated in several output-based aid projects mentioned above.

16. More specifically, using Investment Project Financing (IPF) instrument, the grant will provide results-based payments for improvements in quality of the following services:

(a) Disposal service (landfill)

9 Based on the experiences of West Bank and Gaza Output-Based Aid solid waste project. 10 See Guide for Effective RBF strategies for more information http://www.gpoba.org/sites/gpoba/files/publication/downloads/2019-04/Guide_for_Effective_RBF_Strategies1.pdf 11 See Results-Based Financing for Municipal Solid Waste for more information. https://www.worldbank.org/en/topic/urbandevelopment/publication/results-based-financing-for-municipal-solid-waste

http://www.gpoba.org/sites/gpoba/files/publication/downloads/2019-04/Guide_for_Effective_RBF_Strategies1.pdf



http://documents.worldbank.org/curated/en/2014/07/20328140/results-based-financing-municipal-solid-waste-vol-2-2-main-report

https://www.worldbank.org/en/topic/urbandevelopment/publication/results-based-financing-for-municipal-solid-waste


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(b) Transfer station services (secondary collection services)

(c) Medical waste treatment services

(d) Secondary collection services (container upkeep and truck maintenance).

17. In addition to these JSC-KRM services, the grant will support improvement of fee collection and reduction of costs to support the JSC-KRM’s cost recovery. The total amount of the AF provided through the GPRBA is US$2 million.

18. Additional funds are also being provided to activate the Government of Sweden co-financing channeled through the PID-MDTF, accounting for cost overrun. The World Bank-administered PID-MDTF will be used to channel the Government of Sweden contribution to the project activities. The additional US$1.25 million also responds to higher than anticipated costs for the infrastructure and increased operational costs due to the COVID-19 pandemic.

19. The AF is preferred over other financing mechanisms as it: (a) complements the operational management support of professionalization contract put in place for improved management of the landfill and transfer stations under the GSWMP; (b) enhances the project’s impact and results achieved under the original project; (c) expands and reinforces proper medical waste management practices; (d) capitalizes on MDLF’s proven implementation arrangements and satisfactory results under the ongoing GSWMP; (e) saves the time and cost associated with new project preparation while maintaining the momentum of the results achieved to date; and (f) strengthens the continuity of ongoing JSC-KRM capacity-building support under Component 4.

20. The AF is further justified given the parent project’s satisfactory implementation performance and results achieved while being implemented in a challenging context. The strong commitment from the PA and MOLG combined with exceptional implementation performance of MDLF (the implementing agency) and dedication of the JSC-KRM (facility operators) further justify the proposed AF. The AF complies with the Bank Policy and Directive on IPF, to the extent that (i) both progress with implementation and towards the achievement of the PDO have been rated Moderately Satisfactory or better for the past 12 months; and (ii) all key legal covenants including audit and financial management reporting requirements have been complied with. There are no overdue audit reports.

21. Alignment with the World Bank Assistance Strategy. The AF is in line with the priorities laid out in the World Bank Group’s Assistance Strategy for the West Bank and Gaza FY2018–2021 (Report no.115201-GZ ) discussed by the Board of Executive Directors on December 5, 2017, which acknowledged significant investment needs at the municipal level to improve critical public services provision, including solid waste. To that end, the AF will support completion of the infrastructure under the project and support its operation, thereby creating an incentive to improve waste services and cost recovery and make the operation financially sustainable.

22. Strategic relevance. This project will contribute to the World Bank Group’s twin goals of eradicating extreme poverty and boosting shared prosperity in a sustainable manner. The Gaza Strip is characterized by high population growth and high population density, coupled with very high incidence


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of poverty12. Solid waste management is an urgent challenge for Gaza due to its high population density and failure to manage this sector poses a health risk to the citizens of Gaza, and inadequate sanitation is a major contributing factor to the persistence of poverty here and worldwide13. By improving solid waste management in Gaza, the project will avoid the disproportional impact that uncollected and untreated solid waste has on the urban poor. The project will also make participating municipalities more resilient to flooding, by reducing blockages of drainage systems due to solid waste. These activities are expected to provide a high overall rate of economic return, by providing significant environmental and public health benefits and improved livability.

23. The project is also aligned with the World Bank Group’s Middle East and North Africa (MENA) enlarged strategy (March 2019). It contributes to one of key pillars--renewing the social contract - by promoting more accountable, efficient and inclusive service delivery. This will be done thorough incentivizing improvements in the delivery of solid waste services and cost recovery, including improving financial standing of the service provider – Joint service councils. The project will also continue to focus on citizen engagement and raising awareness about solid waste management, particularly among women, contributing to the enhanced social contract among citizens, local authorities and the service providers. The project will also contribute to another pillar of MENA regional strategy on resilience to climate shocks by reducing flooding risk with proper management of solid waste.

24. Link with PA National and Sector Strategy. The PA has identified solid waste management as one of its key developmental priorities, and the current GSWMP is a key component of this strategy. The strategic objectives adopted by the National Strategy for Solid Waste Management14 (2017–2022) directly support the proposed project activities as laid out in its priority objectives and associated policies: (a) effective and environmentally safe management of solid waste services; (b) attaining financial sustainability and efficient solid waste services and activities; and (c) principles and mechanisms suitable for managing medical, hazardous, and special wastes.

Parent Project Restructuring

25. Given the satisfactory performance of the GSWMP, the proposed changes include reallocating funds among disbursement categories and among project components, adding project indicators, and extending the closing date as well as the implementation schedule. Adjustments in the safeguards (triggering the Pest Management Policy), revision of the PDO (to ensure consistency with the original legal agreement) and the additions of the missing legal covenants15 are also proposed. New sub-components financed by the GPRBA grant will be added through the amendment of the original grant but won’t be financed by the original grant. All requirements of Bank Policy and Bank Directive on IPF for closing date extension have been met: (a) the PDO remains achievable; (b) the performance of the Recipient remains satisfactory; (c) the World Bank and the Recipient agree on actions that will be undertaken to complete

12 Poverty headcount rate (percent of population who lives with less than $1.25 a day with Purchasing Power Parity) in Gaza localities ranged from 28.14 percent to 66.21 percent in the middle and south area where the new project is targeted. The middle and south area of Gaza is worse off than the northern area with the average governorate poverty headcount rate at 40 percent (Deir Al-Balah, Khan Younes, Rafah). Source: Data and analysis from: Seeing Is Believing – Poverty in the Palestinian Territories-, 2013, World Bank, P128645. 13 World Development Report 2014, Risk and Opportunity – Managing Risk for Development, page 55. 14 National Strategy for Solid Waste Management in Palestine (2017–2022), August 2017. 15 There are no changes to the legal covenants of the parent project. The restructuring merely constitutes the addition of these missing covenants to the online project portal and under section VII of this Project Paper.


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the project on time; (d) the project is not subject to suspension of disbursements; and (e) there are no outstanding audit reports and the audit reports are satisfactory to the World Bank.

II. DESCRIPTION OF ADDITIONAL FINANCING

26. The proposed AF has two sources of financing: US$2 million from GPRBA, and US$1.25 million from Partnership for Infrastructure Development Multi-Donor Trust Fund (PID-MDTF). The total AF amount of US$3.25 million will cover scaling up and cost overrun of existing activities, including: i) support to operations of JSC through results-based financing mechanism, ii) additional expenditure incurred due to COVID-19 - both operating costs and consumables such as personal protective equipment and disinfectants, and iii) cost escalation for solid waste infrastructure. The table below shows the financing by component.

27. The AF through the GPRBA grant will provide financing to support the JSC-KRM in responding to increased operational costs, through results-based payments to the infrastructure investment supported under the GSWMP. These results-based payments are provided on a temporary basis to offset the increased operational costs while incentivizing the JSC-KRM to improve its service quality and delivery. The US$2 million AF from the GPRBA supports two key outcomes: (a) improvement in solid waste service delivery; and (b) strengthening of the financial sustainability of the JSC-KRM by supporting cost recovery. The scaled-up 16 activities supported by this AF are accommodated under Component 4 (Project Management17). It is proposed to add the following two subcomponents under Component 4, in addition to providing additional funding for project audit to monitor GPRBA-related activities and MDLF management fee. The scaled-up activities and their description are detailed in the following paragraphs:

• Sub-component 4 (6): the provision of results-based payments to MDLF to support service delivery by JSC-KRM related to landfill, transfer station services, medical waste treatment, and container upkeep and maintenance; and

• Sub-component 4 (7): the carrying out of the independent monitoring and verification of service delivery performance of the JSC-KRM.

28. The AF through PID-MDTF will provide financing to account for higher than anticipated costs for the infrastructure (under Component 1), goods and services (under Component 2) and increased operational costs (under Component 4) anticipated due to the COVID-19 pandemic. It will provide funding for existing activities and it will not finance any new components or activities. It will be managed under the same institutional, financial management and procurement arrangements as the parent project. It will provide funding for following existing activities:

16 The scaled-up activities will benefit over 900,000 people in the three southern Gaza governorates (Khan Younis, Rafah and Middle Area). 17 Component 4: Project management and implementation support through financing of: (a) MDLF management fee; (b) expenses associated with the establishment of the PDSU; (c) project related audit; (d) operating and maintenance costs of the Al-Fukhari landfill and transfer stations; and (e) consultants’ services for monitoring of compliance with the ESMP and for conducting Beneficiaries Satisfaction Assessments.


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• Component 1: (1) construction of new sanitary landfill in Al-Fukhari (Sofa); (2) rehabilitation of access road to the landfill and transfer stations; and (3) sanitary closure of dumpsites in the project service area.

• Sub-component 2 (1): provision of goods, consultants’ services, and training, and financing of technical operations unit (TOU) incremental operating costs to improve the technical and administrative capacity of the JSC-KRM and TOU with regard to operation and maintenance of Al-Fukhari landfill and transfer stations, management of solid waste collection system as well as addressing environmental and social aspects associated with the project activities.

• Subcomponent 4 (1): Municipal Development and Lending Fund (MDLF) management fee.

• Subcomponent 4 (3): project-related audit.

• Subcomponent 4 (4): operating and maintenance cost of the Al-Fukhari landfill and transfer stations.

Table 1. Current and Revised Cost by Component in World Bank Trust Fund Agreements (US$ million)

Component GSWMP TFGWB

(Original)

GSWMP TFGWB

(Reallocation)

Proposed AF Financing (GPRBA)

Proposed AF Financing

(PID-MDTF)

Total Revised

Financing

Component 1: Solid Waste Transfer and Disposal Facilities

6.84 7.69 0.00 0.89 8.58

Component 2: Institutional Strengthening 0.88 0.70 0.00 0.02 0.72

Component 3: Primary Collection and Resource Recovery

0.04 0.04 0.00 0.00 0.04

Component 4: Project Management 2.23 1.57 2.00 0.34 3.91

Total 10.00 10.00 2.00 1.25 13.25

Table 2. World Bank and Co-Financing Partners’ Share of GSWMP Investments with proposed AF and Reallocation (US$ million)

Component World Bank

TFGWB

Counterpart Funding

AFD and EU UNDP IsDB Proposed AF Financing

GPRBA

Proposed AF

Financing PID-MDTF

Total Financing

Component 1: 7.69 2.35 12.26 0.20 0.50 0.00 0.89 23.89

Component 2: 0.70 - 0.68 - - - 0.02 1.40

Component 3: 0.04 - 2.16 - - - - 2.20

Component 4: 1.57 - 1.20 - - 2.00 0.34 5.11

Total 10.0 2.35 16.30 0.20 0.50 2.00 1.25 32.60


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Detailed Description of Results-based Payments provided through the GPRBA Grant:

29. Expected Outcomes. Two key outcomes are expected under the GPRBA grant activities: (a) service improvement; and (b) support to cost recovery. Each of the outcomes will be measured through the achievement of predefined performance targets that will be independently monitored and verified to trigger the results-based payments.

(a) Outcome 1: Service improvement. Improvements in the delivery of solid waste services is the first key outcome. The GPRBA grant will provide support to the JSC-KRM on a transitional basis to cover the costs of service delivery and improved management of the new landfill and transfer stations using upgraded operational standards and procedures. The results-based payments for service improvement outcomes will be provided based on meeting the following performance targets: (i) improved landfill services; (ii) improved transfer station service; (iii) improved container upkeep and truck maintenance service (secondary collection services); and (iv) improvement in medical waste services. Details on the indicators and the associated targets are elaborated in Annex 1.

(b) Outcome 2: Supporting cost recovery. Increased fee collection and targeted reduction of service costs, both designed to support the financial standing of the JSC-KRM, comprises the second key outcome targeted by the GPRBA grant. To continue delivering improved solid waste services and properly manage the sanitary facilities, the JSC-KRM needs to reach a reasonable level of fee collection through increased billing and collection of fees from the municipalities and MWPs. Additionally, the costs of medical waste treatment can be reduced to increase the viability of that service.

30. Targets. Performance targets related to the two outcomes (service improvements and cost recovery) will be periodically monitored and evaluated by an Independent Verification Agent (IVA) to trigger results-based payments. Details on the indicators and the associated targets are elaborated in Annex 1.

Mechanism for Independent Verification

31. The GPRBA grant will be subject to independent verification to assess the performance for each outcome and its associated targets. IVA will review the progress semiannually and evaluate the achievements against the agreed target for the indicators identified earlier. Verification and acceptance of the report by the World Bank will trigger the transfer of the corresponding results-based payment to the JSC-KRM through MDLF.

Result-based Payments

32. Performance assessment scorecards will be used by the IVA to assess the JSC-KRM’s performance. Each service or activity (disposal, transfer station, medical waste, container upkeep and truck maintenance, and administration) has been assigned a maximum amount that can be paid for the indicators under that service. The amount is based on projected gaps in financing by service. The results-based payments that would be paid in each reporting period is based the proportion of pre-agreed performance targets for each service met or exceeded during that reporting period as verified by IVA. For


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example, if all indicators for a given service are met for a given period, 100 percent of the maximum payment assigned to that service would be paid; while if half the indicators are met, 50 percent would be paid. The maximum payments and allocated payments per indicator are provided in Annex 4. The payments would be made to MDLF, who would procure, purchase and provide in-kind operational support to the JSC-KRM for a pre-agreed list of potential expenditure items (for details, see sections on Financial Management and Disbursement).

33. Description of activities funded through PID-MDTF. The activities funded through PID-MDTF will account for impacts of ongoing COVID-19 pandemic and costs increases for infrastructure constructed through financing under the GSWMP. The JSC-KRM and municipalities are at the forefront of the emergency response to the COVID-19 crisis, given their mandates in terms of essential local public service delivery and the associated costs are expected to have a significant impact on their budgets. An increase in municipal solid waste generation is expected during the stay-at-home period. Additional collection services have also been added to quarantine centers which will require the JSC-KRM to deploy more trucks for frequent pickup and serve additional routes. In addition, with the expected increase in medical waste treatment, the JSC-KRM’s operational cost for this service is expected to increase. The additional expenditure, both operating costs and consumables such as personal protective equipment and disinfectants, will be covered under the parent project’s Component 4, with the increased costs financed through the AF from the PID-MDTF. In addition, it will also fund higher than anticipated cost of infrastructure under the GSWMP Component 1 and costs of goods and services under Component 2 (1).

Proposed Restructuring of the Parent Project

34. The proposed restructuring is to extend the closing date of the original grant from November 30, 2019 to June 30, 2022 to accommodate for the completion of the remaining activities and to align with the completion of GPRBA and PID-MDTF supported activities; and to reallocate US$0.84 million from components 2 and 4 to component 1, due to higher cost incurred for the closure of the dumpsite under Component 1 and to reflect the anticipated disbursement of the remaining grant more accurately. This will involve reallocation between disbursement categories: reallocating US$666,896 from category 3 (operating and maintenance costs of Al-Fukhari landfill and transfer stations) and US$934 from category 2 (MDLF management fee) to category 1 (goods, works, non-consulting services, and consultants’ services and TOU incremental operating costs under the project). New sub-components financed by the GPRBA grant will be added through the amendment of the original grant but won’t be financed by the original grant.

35. The PDO will also be revised to ensure consistent wording with the grant agreement as stated at the time of the parent project approval in 2014. A new safeguards policy for Pest Management (OP 4.09) will be triggered due to the need for pesticides in landfill operations, and the safeguards operational policy for Environmental Assessment (OP 4.01) and Involuntary Resettlement (OP 4.12) will continue to be triggered.

36. End target date of the PDO/intermediate results indicators will be changed to align with the

proposed closing date (June 30, 2022), and new intermediate results indicators will be introduced to

monitor the success of the results-based payment scheme supported by the AF and to incorporate

indicators responding to corporate priorities on gender and citizen engagement into the project:


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Figure 1: New Intermediate Results Indicators in the Results Framework for the Gaza Solid Waste Management

Project

Results-Based Financing Related Indicators:

• Adoption of the improved protocols and procedures as defined in the Standard Operating Procedures for

all JSC-KRM services.

• Results-based payments received for achieving service improvement related targets (% of planned

payments)

• Results-based payments received for achieving cost recovery related targets (% of planned payments)

Gender Related indicators:

• Female project beneficiaries aware of solid waste management practices (% of total)

• Increased participation and role of women in the decision-making in the JSC-KRM through formation of a “women's committee”

Citizen Engagement Related Indicators:

• Percentage of grievances that have been responded in a timely manner (2 days for urgent matters; 5 days for other matters).

• Improved citizens satisfaction with the JSC-KRM performance (% satisfied based on survey).

37. The implementation schedule has also been revised in accordance with the proposed closing date.

The updated disbursement estimates to reflect the extended closing date are included in section VII.

Detailed Changes.

Climate and Disaster Risks

38. The Palestinian Climate Change Adaptation Strategy report indicates that “the Intergovernmental Panel on Climate Change predicts that, for the southern and eastern Mediterranean, warming over the 21st century will be larger than global annual mean warming – between 2.2-5.1°C. Annual precipitation rates are likely to fall in the eastern Mediterranean – decreasing 10 percent by 2020 and 20 percent by 2050 – with an increased risk of summer drought.” In addition, it is expected that levels of the Mediterranean Sea will rise. Some regional studies predict 30–100 cm of sea level rise for the Mediterranean by 2100, with serious implications for Gaza. With respect to the likelihood of changes to patterns of extreme weather events and drought, the United Nations Development Programme reports that regional climate models indicate a tendency toward more extreme events in the future. This includes a higher number of yearly days of high temperature (daily maximum temperatures above 30°C). Among these impacts, more frequent and intense flooding would likely affect secondary collection and transport services by temporarily interrupting certain transport corridors, thus causing temporary gaps in service or rerouting of collection and transport of waste.


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Climate Change Adaptation Co-benefits

39. Vulnerability context. Groundwater is the main source of fresh water in Gaza Strip. Leachate generated from the unregulated landfills and clandestine dumpsites pollute the aquifer and pose risks to the health and safety of the local population and puts pressure on the already scarce water resources in the Gaza Strip. These water resources are expected to become sparser in the coming years, due to the combined impacts from climate change and population growth. With the population growth and corresponding increase in waste generation, protection of groundwater is crucial for the preservation and restoration of natural aquifers.

40. Vulnerable population. There is a significant population in Gaza that is low-income and/or unemployed. The entire Gaza Strip is susceptible to food shortages, creating significant populations that are vulnerable to malnutrition. These populations including predominantly children and pregnant women are particularly vulnerable to the impacts of pollutants in drinking water.

41. Climate vulnerability context. Aquifer replenishment rate is slowing down due to climate change and reduced precipitation, while demand for water is increasing, expecting to double by 2050. Climate change will be affecting Israel and Egypt in a similar manner, which makes the prospect of increased water import from those countries less likely. The high-volume demand, current state of technology, and budget deficit in Gaza make sole reliance on desalination challenging. Therefore, water supply in Gaza will likely to continue to rely on groundwater wells, desalinated water, and imported water. Concerted efforts in waste management and wastewater management is an essential element of country’s climate change adaptation strategy to ensure groundwater resources are protected as part of the broader strategy to provide water for the Gaza Strip into the future.

42. Statement of intent and the link between project activities and climate change adaptation. This project intends to contribute to climate change adaptation efforts by minimizing the pollution of groundwater and provide the population with water of acceptable quality. This will be achieved by successful implementation of all project components: elimination of illegal waste dumpsites, operation of the new landfills with a liner and leachate treatment and improving secondary collection.

III. KEY RISKS

43. The overall risk rating for the project is high. The key risks, which may impair the effective implementation of the project, are: (a) continued political and governance risks associated with implementing this AF in a highly fragile environment; (b) project risk associated with unforeseen implementation delays; (c) underperformance of the JSC-KRM in meeting the specified performance targets and/or inability of the JSC-KRM to reach the desired cost recovery threshold in the proposed project implementation period; (d) institutional capacity for implementation and sustainability risk associated with inadequate capacity at the municipalities level to pay for disposal of their waste; and (e) environmental and social risks associated with sustaining the compliance with the measures stipulated in the updated ESIA. The risk rating under “other” category has been changed from moderate to low given the land acquisition for landfill has been completed and is no longer considered a risk. The risks rated high or substantial and the mitigation measures are detailed below.


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44. Political and governance risk rating continues to be high. On the political front, the peace process remains vulnerable and the domestic political situation remains unsettled. As part of risk mitigation, political and security developments are monitored routinely by the World Bank Group to remain alert to any situation that may require adjustments to its operation. Additionally, the World Bank Group maintains a strong relationship with donor partners and countries, who continue to play a constructive role in the development process.

45. Macroeconomic risk rating continues to be high. On the fiscal side, the PA’s liquidity crunch that extended over six months in 2019, has had an impact on consumption and investment patterns and negatively affected economic activity resulting in very low growth in 2019. The fiscal stress had been gradually easing before the COVID-19 outbreak. During the pandemic, demands for public spending have increased, while public revenues have greatly diminished. This likely fiscal strain that will ensue means significant risks to the sustainability of the macroeconomic and fiscal framework. This may affect the project with regard to the ability of the municipalities to meet payment targets for fees charged for solid waste services. This is mitigated by delaying the fee collection targets for the first year in anticipation of the impacts of COVID-19 pandemic and realistic targets for increases in the following year.

46. Institutional capacity for implementation and sustainability risk rating continues to be high. While the capacity of the JSC-KRM has improved as a result of the project, the complexity and financial demands of operating an upgraded solid waste system presents a challenge and risk for project implementation. To mitigate this risk, MDLF and the JSC-KRM will continue to maintain qualified staff and specialists. Similarly, the MOLG will sustain communication with the municipalities to ensure compliance with the National Strategy for Solid Waste Management and enforce/penalize noncomplying municipalities through the means available within the Local Government Law. To mitigate the sustainability risk, TA will be provided through the parent project to address broader structural and affordability issues of municipalities. The TA will cover 17 participating municipalities and will include: (a) detail assessment of cost per municipality, (b) review options for reducing cost and increasing revenue, and (c) propose recommendations for capacity-building activities.

47. Fiduciary risk rating changed from high to substantial. At the time of the parent grant approval in 2014, the capacity of MDLF to carry out effective internal audit, the geographic disconnects between MDLF (Ramallah) and implementation partners in Gaza Strip and the complexity of the environment in Gaza Strip were anticipated to result in challenges in financial management (FM) coordination and communication that could cause delays. Since 2014, MDLF has acquired substantial knowledge of the World Bank fiduciary policies and requirements as well as project management experience, including hiring an independent external auditor to carry out effective audits, and were able to meet the World Bank’s procurement and implementation requirements successfully. The perceived risk of coordination and decision-making among the various entities in different geographic locations were also managed without causing significant delays in project procurement and implementation. For these reasons, the fiduciary risk is downgraded from high to substantial.

48. Environmental and social risk rating changed from high to substantial. MDLF and the JSC-KRM will maintain qualified environmental and social specialists to oversee compliance with the updated ESIA. The World Bank will conduct semi-annual site visits to ensure compliance. The risks related to operating the different solid waste management facilities including, but not limited to, the health and safety of the workers and the surrounding communities have been assessed as substantial. The risk has been


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downgraded from high to substantial due to the significantly increased capacity of the client and their increased experience and track record in managing environmental and social risks.

49. Stakeholder risk rating continues to be high. The JSC-KRM, its constituent municipalities, the medical waste producers and the MDLF are the key institutional stakeholders in the project. These groups have demonstrated good coordination in service delivery and payment arrangements, which will be reinforced by project sub-agreements for the AF. Other stakeholders include the consumers of the JSC-KRM services and the neighboring populations of the facilities, both of which will benefit from the project. Given the experience in the West Bank with neighboring communities of landfills, the risk related to these stakeholders is substantial and the project has incorporated explicit outcomes in terms of service quality and engagement through a complaints system and communication program to mitigate this risk.

IV. APPRAISAL SUMMARY

A. Economic and Financial Analysis

50. While the economic and financial analyses carried out for the parent project remain valid, additional analysis was undertaken for the activities covered under the AF. The economic analysis considers the environmental, social, and health costs and benefits accrued from managing the landfill and transfer stations sanitarily (using upgraded standards) and providing improved services.

Economic Analysis

51. While it is often difficult to monetarily quantify the economic benefits accrued from improved solid waste management services—as is the case in most environment sector projects—the environmental, health, and social benefits accrued from the activities supported under this AF are quite significant.

52. Environmental benefits. The improved operational standards reinforced for the sanitary landfill and transfer station management will yield significant environmental benefits as they will mitigate the impacts of poor disposal including fires, smell, litter, and groundwater contamination. Of particular importance in the West Bank and Gaza is the management of leachate which has affected communities in West Bank. The operational arrangement being considered by the JSC-KRM for the collection and treatment of leachate generated from the landfill at the neighboring wastewater treatment plant (WWTP) includes an agreement with the WWTP for leachate treatment.

53. Some of the lessons learned from earlier World Bank-funded solid waste infrastructure operations in West Bank (Hebron and Jenin Governorates) indicate that having a solid Operations and Maintenance (O&M) plan is quite critical post the completion of sanitary infrastructures. As demonstrated in the Hebron/Jenin solid waste project cases where the World Bank carried out a post-completion report (201818) in response to various issues and complaints received (infiltration of leachate into groundwater, odor, smog, and other consequential health complications from insects on nearby communities, and so on), the sanitary facilities fell in disarray, as the post-construction phase did not include sufficient SOPs,

18 A due diligence assessment report was prepared in 2018 by the World Bank in response to complaints received from surrounding communities in Jenin related to issues associated with the landfill constructed with the funding support of World Bank grant.


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O&M funding, and technical management support. Fixing these issues after project completion is not only costly but also complicated, given the limitation of available land in the West Bank and Gaza to construct new landfills and the capacity constraints faced by the municipalities and local government to tackle the situation once these issues materialize.

54. These issues are even more pronounced and unaffordable in Gaza, where groundwater is scarce and desalination is expensive, availability of land is very limited, and the local governments are significantly constrained. The alternative of allowing the facilities to be operated without standards and with insufficient funding could prove to be quite expensive and the consequences on the environment and basic human needs would be significant.

55. This AF considered the lessons learned from the West Bank operations when planning the operational support. This is evidenced by the operational arrangement being considered by the JSC-KRM for the collection and treatment of leachate generated from the landfill at the neighboring WWTP. The agreement sought with the WWTP for leachate treatment—a pervasive environmental problem in almost all sanitary projects in the West Bank and Gaza—is of critical environmental importance as it protects leachate from infiltrating the groundwater and contaminating the surrounding aquifers and reduces the risk of severe odor affecting the surrounding community. Moreover, the AF will adopt improved SOPs for the sanitary landfill and transfer station, currently being developed with the support of an international professionalization contractor. The upgraded SOP will include detailed operation protocols and procedures for each JSC service, internationally accepted practices including for leachate management, medical waste treatment and disposal which will ensure longer-term/sustainable environmental benefits.

56. Health benefits. Proper medical waste separation and treatment supported under the project has significant public health implication and benefits, as it ensures the safety and well-being of waste management workers and the general public from being exposed to infectious and hazardous diseases. The benefits acquired from proper handling of hazardous medical waste far outweigh the additional financial investments incurred by the JSC-KRM to provide these public health services. These risks may increase significantly if a COVID-19 outbreak occurs and the project would help mitigate this risk.

57. Socioeconomic benefits. Sanitary landfills ensure the improved level of occupational safety19 for different types of workers through an improved working environment amenable to their health and safety. Waste-related labor force will be trained and gainfully employed in an improved working environment. Other social benefits that are difficult to quantify include cleanliness of the surrounding environment related to secondary collection including the elimination of open dumping and burning of waste and the aesthetic value of improved cleanliness, the sense of pride in one’s neighborhood, and increased property values.

58. Economic benefits. Proper landfill management through daily compaction of waste, combined with recycling activities, would also lengthen the life span of the landfill, provide economic benefits, and yield a positive economic return on the project investment. Similarly, the transfer stations save on costs of collection for both the JSC-KRM and municipalities.

19 Uncontrolled disposal of hazardous/infectious medical waste as well as manual on-site treatment and disposal by informal workers result in important increases of all the health risks and the negative environmental impacts. The occupational safety of waste scavengers, particularly at dumpsites, is very poor.


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Financial Analysis

59. The JSC-KRM would need to significantly improve its bill collection rate from participating municipalities from the current value of 50 percent to greater than 70 percent by the end of the project. Given Gaza’s widespread incidence of poverty coupled with the municipalities’ challenges in service delivery and collection capacity, the application of full cost recovery for the upgraded services is unfeasible, and some level of external support is required.

60. The JSC-KRM’s cost of improved service delivery and the revenues collected were estimated to arrive at the results-based payment required over the two-year period (table 3).

Table 3. JSC-KRM Annual Revenue and Cost for Targeted Services (General Cost Model)

JSC-KRM Service Revenue /Cost 2021 2022

Revenue per service category (US$)

Billing rate (%) 55 65

Gate fee revenues charged at Sofa (at year end)/ton 401,733 574,478

Gate fee revenues charged at Rafah transfer station/ton 70,136 91,177

Revenues from charged medical waste management/kg 54,804 64,768

Total revenues charged for services (billed) 526,672 730,423

Fee collection rate (%) 55 65

Total revenue collected 289,670 474,775

Cost per service (US$)

Disposal service (landfill operations) 931,157 1,024,273

Transfer station service (secondary collection services) 127,520 140,272

Medical waste management 49,235 49,235

Container and truck maintenance 63,300 69,451

Administrative cost 20,000 20,000

Total service cost 1,191,213 1,303,232

Shortfall (deficit) −901,543 −828,457

61. Service fees include: (a) a gate fee/tipping fee for disposal services, (b) tipping fee/gate fee for transfer station services, and (c) fees charged by the JSC-KRM for medical waste collection and treatment services.

62. Service costs include: (a) disposal service costs inclusive of O&M and administrative costs (exclusive of salaries) for the sanitary landfill; (b) transfer station service costs comprising O&M and associated administrative expenses (transport from transfer stations to the landfill); (c) medical waste management services costs; and (d) container upkeep and truck/fleet maintenance for secondary collection services. The service costs are expected to increase by about 10 percent annually from the 2020 forecast.

63. The GPRBA grant provide results-based payments intended to fill the financial shortfall incurred due to the higher O&M cost associated with providing the targeted improved solid waste services for the first two years. As results-based payments will be made based on verified results, the service provider (the JSC-KRM) will be incentivized to deliver the outputs as defined in the performance assessment scorecard.


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B. Technical

64. The technical approach relies on the professionalization contract which will assess the JSC-KRM’s procedures and protocols, recommending changes and additional SOPs, and elaborate these procedures. They will be adopted by the JSC-KRM and the contractor will help implement them and achieve the associated results in the first year.

C. Financial Management

65. MDLF will have the overall responsibility for the FM and disbursement of the grant funds. MDLF has in place an adequate computerized financial system and employs qualified financial staff. It also has a satisfactory track record with the World Bank and other donor-funded projects. MDLF will open two new US dollar-denominated Designated Account (DA): one for the GPRBA (both IFC and MDTF parts) and the other for PID-MDTF.

66. The FM assessment for MDLF, which was carried out during the ongoing projects implemented by MDLF including Municipal Development Program 3 and Integrated Cities and Urban Development Project, will be adequate for this AF. The assessment evaluated the institutional capacity of MDLF to implement the FM and disbursement arrangements under World Bank guidelines. The current FM rating for both projects as well as the ongoing GSWMP is Satisfactory.

67. MDLF’s accounting system, Oracle, will be used to account for all project-related transactions, and separate cost centers are established to track project funds by each financier. The accounting system will also be used to generate the quarterly interim financial reports (IFRs). An external auditor will also be appointed based on terms of reference acceptable to the World Bank to audit the project’s financial statements. All audit reports received for the current project had unmodified clean opinions.

68. The financial management and disbursement arrangements for the parent project and the AF provided through the PID-MDTF Trust Fund remain unchanged except that a new DA will be created for the PID-MDTF Trust Fund. The existing FM and disbursement arrangements will also apply to the expenditures on consultant contracts and the MDLF management fee for the AF provide by GPRBA while the results-based payments under the GPRBA grant will have distinct arrangements. In particular, the MDLF will receive and use the results-based payments to pay contactors, suppliers, and service providers directly. The JSC-KRM has finalized a list of all expected expenditures to maintain and support the operation with MDLF. The JSC-KRM categorized the expenditures and will prepare an annual budget based on the categories. Procurement will be done by MDLF according to MDLF procurement guidelines. The JSC-KRM will collect, review, and approve all the supporting documents needed to make the payments and will then send them to the MDLF unit in Gaza, as done in the original project, for their review and approval. Then, the JSC-KRM will send all the payment documents to MDLF in Ramallah for payment.

69. Upon verification of results by the IVA, MDLF will request funds for results-based payments according to the amount allocated per indicator. Figure 1 presents the flow of funds for GPRBA funds and the flow of funds for PID-MDTF will follow the parent project.


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Figure 1. Funds Flow for GPRBA Results Based Payments and IVA contracting

70. The overall FM risk for this AF is Substantial.

Disbursement

71. For the GPRBA grant (for both IFC and MDTF parts) and for PID MDTF, separate World Bank DAs will be opened by the Ministry of Finance (MOF), at the Bank of Palestine (Ramallah), and will be managed by MDLF. The proceeds of the grant will be disbursed in accordance with the World Bank’s disbursements guidelines as it will be outlined in the Disbursement Letter and in accordance with the World Bank Disbursement Guidelines for projects. There will be no advances, and disbursements will be made to MDLF accounts upon receipt of the IVA report with a withdrawal application. The IVA report together with the withdrawal application will be reviewed and approved by the World Bank before it processes the request for disbursement.

72. Retroactive financing is eligible under the GPRBA MDTF grant for consultants’ services to avoid delays in hiring the IVA. Up to an aggregate amount not to exceed US$100,000 may be made for payments made prior to the signature date but on or after January 1, 2020 for eligible expenditure under categories (1) and (2) of the Grant Agreement.

D. Procurement

73. Procurement of services under the AF will continue to be the overall responsibility of MDLF through the Project Development and Safeguards Unit (PDSU) established in Gaza to manage day-to-day implementation of the parent project and ensure adherence to fiduciary and safeguards policies. Procurement for the AF will be carried out in accordance with the ‘World Bank Procurement Regulations for IPF Borrowers’, dated July 2016 and revised November 2017 and August 2018. Furthermore, the ‘Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and


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IDA Credits and Grants’, dated October 15, 2006, and revised in January 2011 and as of July 1, 2016, will apply to the AF.

74. The total value of the procurement under the GPRBA grant is limited to around US$150,000, and it will finance the following consultants’ services: (a) an IVA with the responsibility to verify the service delivery performance of the JSC-KRM; and (b) an external financial auditor.

75. The PID-MDTF will finance the procurement of the following consultants’ services: (i) engineering supervision and contract management for the closure of Deir Al Balah Landfill Project, (ii) engineering supervision and contract management for the closure of Sofa Landfill Project, (iii) technical assistance for the JSC-KRM municipalities, and (iv) detailed design and supervision for Leachate Pre-treatment facility. The PID-MDTF will also finance two new works contracts: (i) the construction of Leachate Pre-treatment facility at Sofa Landfill, and (ii) the construction of a cleaning unit at Sofa Landfill. This grant will also cover the shortage in the budget allocated for the closure of the existing Deir Al Balah Dumpsite contract which is already included in the Procurement Plan of the parent project, given that the procurement process for this contract has not started yet.

76. MDLF-PDSU prepared a simplified Project Procurement Strategy for Development (PPSD) for the AF, which identified the appropriate selection methods for the works and consultants’ services procurement packages, market approach, and the type of review required by the World Bank. Based on the previous experiences and the market analysis carried out in the PPSD, the local market ensures sufficient competition and has enough qualified and experienced contractors and consultants. Therefore, the list of contractors and consultants for these procurements will consist entirely of national contractors and consultants in accordance with the provisions of the World Bank guidance titled ‘Thresholds for Procurement Approaches and Methods by Country’, dated July 1, 2016, and revised August 25, 2016.

77. The PPSD concluded with an updated Procurement Plan for the new procurement activities under the solid waste transfer and disposal facilities component (Component 1), institutional strengthening component (Component 2), and the project management component (Component 4). Project procurement will be handled through the World Bank’s system for Systematic Tracking of Exchanges in Procurement which is currently used by MDLF-PDSU for the ongoing parent project.

78. A procurement risk assessment was carried out during preparation of the AF to evaluate the procurement risks and make recommendations on mitigation measures for efficient procurement under the AF. The overall procurement risk rating for the AF is Moderate. As part of the procurement supervision for the parent project and the AF, the World Bank will continue to carry out two supervision missions per year during which a close follow-up and quality control of procurement/contract management matters will be maintained. A post procurement review for all contracts which are subject to post review will be conducted once a year.

E. Environment and Social Safeguards

Social (including Safeguards)


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79. During the implementation of the parent operation, the JSC-KRM has demonstrated strong commitment to the application of the environmental and social risk management aspects as well as the citizen engagement requirements. This commitment manifested in hiring qualified and high-performing staff, ensuring that systems are in place to manage grievance in a responsive and diligent manner, closely monitoring and supervising the construction-related activities, and introducing good practices to deal with labor-related issues. A comprehensive citizen engagement and awareness-raising program has also been implemented. This program contributed to enhancement of the public acceptance to the project and raised awareness about the functions of different components and the commitments of the operators to comply with the environmental and social management plan.

80. Under the AF, it is expected that the established systems at the JSC-KRM will be utilized in the delivery of the various activities. The support will be extended to the municipalities to ensure that accountable systems are in place to respond to the citizens’ feedbacks and expectations and to build awareness.

81. On the social aspects, the AF is expected to support a number of activities that will build on the positive social outcome of the parent operation. The AF will also create wider opportunities for strengthening the JSC-KRM’s and the municipalities’ accountability to local stakeholders and responding to beneficiaries’ feedback.

82. The preparation of the updated ESIA entailed a range of consultation activities using different modalities (public consultation, semi-structured interview, and focus group discussion). The updated ESIA also covers in more detail the potential social risks and impacts of the operation phase. Labor issues including all the risks related to the operation and the need for introducing solid labor procedures were examined in the updated ESIA. The different project facilities are proximate to the local communities’ residential areas and agriculture land. Accordingly, the facilities need to be carefully managed to avoid negative impacts on the local communities (for example, odor) that may generate dissatisfaction and discontent. Risk to the health and safety of the communities from labor is also examined in the updated ESIA and appropriate mitigation measures were introduced (for example, code of conduct). As per World Bank guidelines, precautionary measures will be taken to mitigate the risk of COVID-19 transmission during project activities, including civil work, operation and stakeholder engagement.

83. The established GRM will continue to operate with further strengthening for the system, particularly through introducing an electronic system that would in turn enhance the response and the feedback to the complainants.

84. No land- or livelihood-related impacts are anticipated from the activities and all the interventions will support the operations of existing facilities and will not require any permanent or temporary land expropriation and will not result in any changes in the jobs or livelihoods of any group. F. Environment (including Safeguards) 85. The main environmental safeguards issue is the potential pollution of groundwater resources from landfill leachate; however, it should be noted that the landfill was designed for ‘zero’ discharge to the groundwater as the cells have been provided with sealing base and under-drainage system for


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collection of leachate and disposal at an on-site evaporation pond, also designed for ‘zero’ discharge. Monitoring wells were also built around the landfill cells to monitor the groundwater quality. The proper handling of the pesticides used at the landfill is a risk that will be managed by ensuring the correct storage, use, and disposal of pesticides at the landfill site. A detailed pest management plan was prepared as part of the updated ESIA and considers these risks as well as the type of pesticide for relevant pests and the roles and responsibility of the various parties. This includes three levels of implementation: (a) pest control with pesticides targeted at certain pests (mainly flies and mosquitoes); (b) pest control measures through mechanical measures such as bait traps and burying solid waste deeper to control vermin (rats), and (c) monitoring of potential sources of pests.

86. The environmental benefits of this project include the improved operational standards reinforced for the sanitary landfill and transfer station waste management. The planned collection and treatment of leachate generated from the JSK-KRM facility at the neighboring WWTP will prevent leachate from infiltrating into groundwater and surrounding aquifers, reducing the incidence of contamination.

87. The environmental risks are further mitigated by compliance with the measures stipulated in the updated ESIA prepared for the project. The executive summary of the updated ESIA in Arabic as well as the full English document were disclosed in-country on May 4, 2020 and on the World Bank’s external website on May 19, 2020. Consultation on the findings of the updated ESIA was conducted on April 9, 2020 and the findings of the consultation were addressed in the final report. MDLF and the JSC-KRM will maintain qualified environmental and social specialists to oversee compliance with the updated ESIA. Similarly, the Environmental Quality Authority (EQA) will ensure regular monitoring and reporting on project activities.

G. Gender 88. As part of a performance assessment survey carried out in 2016, no reported gender differences by the head of the household regarding access and reliability of waste collection services were found nor are there reported differences in time spent in disposing waste. Despite these findings, regional disparity exists, with 10 percent of the Gazan population reporting no service for waste collection (compared to 3 percent in West Bank), and among the people who do have service in Gaza, female headed households are notably less satisfied than male heads of households with the overall quality of service delivery (21 percent compared to 27 percent, respectively). ‘Not enough waste bins’ was reported as the biggest problem by majority of people, with the male heads of the households most likely to take waste to public landfills. 20 In addition, in the project area and across Gaza in general, wide disparities exist in the participation and involvement of women in decision-making that extends beyond issues related to solid waste services. For example, only one in five members of Local Councils are women and even fewer are represented on the Legislative Council (11 percent).21 While there are generally positive views about women’s qualifications in decision-making, studies show that majority of Palestinian men (67 percent) and women (51 percent) believe women are too emotional to be leaders and their primary role is at home. Further, Palestinian women play a limited role in creating awareness and helping to promote sanitary solid

20 About 10 percent of male-headed households take waste to landfills compared to 9 percent of female-headed households in Gaza and 1 percent of households in West Bank. A study in Nablus shows that there are significant gender effects on littering, with women much less likely to litter than men. Al-Khatib, Issam A., Hassan A. Arafat, Raeda Daoud, Hadeel Shwahneh, 2008. 21 PCBS data (2015, 2017), accessed on May 28, 2020:

http://www.pcbs.gov.ps/Portals/_Rainbow/Documents/Gender%20Indicator%20e.htm

http://www.pcbs.gov.ps/Portals/_Rainbow/Documents/Gender%20Indicator%20e.htm


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waste disposal practices (such as littering, randomly using dumpsites, dumping trash outside containers, and recycling practices) in their respective households22.

89. Actions. To address gender-based gaps in satisfaction levels, active participation and involvement of women in decision-making processes, and lack of awareness in environmental solid waste management practices, the project will implement action plans and targeted strategies that promote active participation and involvement of women in the solid waste service sector. The action plans are expected to help bridge the existing gaps. Summaries of the specific indicators and measures developed to tackle each of the disparities, including the detailed approach, methodology, monitoring, and evaluations arrangements, are presented in Annex 2. Metrics to measure progress made in closing these gaps are also included in the annex.

V. WORLD BANK GRIEVANCE REDRESS

90. Communities and individuals who believe that they are adversely affected by a World Bank

supported project may submit complaints to existing project-level grievance redress mechanisms or the

World Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly

reviewed in order to address project-related concerns. Project affected communities and individuals may

submit their complaint to the World Bank’s independent Inspection Panel which determines whether

harm occurred, or could occur, as a result of World Bank non-compliance with its policies and procedures.

Complaints may be submitted at any time after concerns have been brought directly to the World Bank's

attention, and Bank Management has been given an opportunity to respond. For information on how to

submit complaints to the World Bank’s corporate GRS, please visit

http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service.

For information on how to submit complaints to the World Bank Inspection Panel, please visit

www.inspectionpanel.org.

22 Based on anecdotal evidence. Palestinian women’s formal engagement in solid waste management remains limited. Global trends show that while only few women are represented in landfilling, women are becoming increasingly more active in waste prevention and entering the sector in different stages of their career. Godfrey et al, 2018: Mapping of the Status of Women in the Global Waste Management Sector. International Solid Waste Management Sector, Austria.

http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service

http://www.inspectionpanel.org/


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VI. SUMMARY TABLE OF CHANGES

Changed Not Changed

Project's Development Objectives ✔

Results Framework ✔

Components and Cost ✔

Loan Closing Date(s) ✔

Reallocation between Disbursement Categories ✔

Safeguard Policies Triggered ✔

Legal Covenants ✔

Implementing Agency ✔

Cancellations Proposed ✔

Disbursements Arrangements ✔

EA category ✔

Institutional Arrangements ✔

Financial Management ✔

Procurement ✔

VII. DETAILED CHANGE(S)

PROJECT DEVELOPMENT OBJECTIVE

Current PDO

The objective of this project is to improve solid waste management services in the Gaza Strip.

Proposed New PDO

To improve solid waste management services in the Gaza Strip through provision of more efficient,

environmentally and socially sound waste management systems.


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COMPONENTS

Current Component Name Current Cost (US$, millions)

Action Proposed Component Name

Proposed Cost (US$, millions)


23.00 Revised Component 1: Solid Waste Transfer and Disposal Facilities

23.89

Component 2: Institutional Strengthening

1.40 Revised Component 2: Institutional Strengthening

1.40


2.92 Revised Component 3: Primary Collection and Resource Recovery

2.20

Component 4: Project Management

4.22 Revised Component 4: Project Management

5.11

Contingencies 4.41 Marked for Deletion

Contingencies 0.00

TOTAL 35.95 32.60

LOAN CLOSING DATE(S)

Ln/Cr/Tf Status Original Closing

Current Closing(s)

Proposed Closing

Proposed Deadline for Withdrawal Applications

TF-16835 Effective 30-Nov-2019 30-Nov-2020 30-Jun-2022 30-Oct-2022

REALLOCATION BETWEEN DISBURSEMENT CATEGORIES

Current Allocation Actuals + Committed Proposed Allocation Financing % (Type Total)

Current Proposed REALLOCATION NEW

TF-16835-001 | Currency: USD

iLap Category Sequence No: 1 Current Expenditure Category: Goods, works, consulting services, training and TOU, incremental operating cost

8,075,438.00 6,501,803.08 8,743,268.00 100.00 100.00

iLap Category Sequence No: 2 Current Expenditure Category: DISB - MDLF MGMT FEE

700,000.00 480,735.60 699,066.00 100.00 100.00

iLap Category Sequence No: 3 Current Expenditure Category: DISB - OPR & MAINT COST AL FUKHARI


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1,224,562.00 31,241.94 557,666.00 100.00 100.00

Total 10,000,000.00 7,013,780.62 10,000,000.00 Expected Disbursements (in US$) DISBURSTBL

Fiscal Year Annual Cumulative

2014 0.00 0.00

2015 385,992.60 385,992.60

2016 33,818.43 419,811.03

2017 1,004,303.90 1,424,114.93

2018 1,688,313.85 3,112,428.78

2019 4,451,423.84 7,563,852.62

2020 1,267,723.99 8,831,576.61

2021 2,175,053.39 11,006,630.00

2022 1,583,530.00 12,590,160.00

2023 659,840.00 13,250,000.00

SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)

Risk Category Latest ISR Rating Current Rating

Political and Governance ⚫ High ⚫ High

Macroeconomic ⚫ High ⚫ High

Sector Strategies and Policies ⚫ Moderate ⚫ Moderate

Technical Design of Project or Program ⚫ Moderate ⚫ Moderate

Institutional Capacity for Implementation and Sustainability

⚫ High ⚫ High

Fiduciary ⚫ High ⚫ Substantial

Environment and Social ⚫ High ⚫ Substantial

Stakeholders ⚫ High ⚫ High

Other ⚫ Moderate ⚫ Low

Overall ⚫ High ⚫ High


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Safguard_Table COMPLIANCE

Change in Safeguard Policies Triggered

Yes

Safeguard Policies Triggered Current Proposed

Environmental Assessment OP/BP 4.01

Yes Yes

Performance Standards for Private Sector Activities OP/BP 4.03

No No

Natural Habitats OP/BP 4.04

No No

Forests OP/BP 4.36

No No

Pest Management OP 4.09

No Yes

Physical Cultural Resources OP/BP 4.11

No No

Indigenous Peoples OP/BP 4.10

No No

Involuntary Resettlement OP/BP 4.12

Yes Yes

Safety of Dams OP/BP 4.37

No No

Projects on International Waterways OP/BP 7.50

No No

Projects in Disputed Areas OP/BP 7.60

No No

LEGAL COVENANTS1 LEGAL COVENANTS – Gaza Solid Waste Management Project (P121648)

Loan/Credit/TF Description Status Action LEGAL TBL1 TF-16835 Finance Agreement :Paragraph 5.02 (a) |

Description :The execution and delivery of the Grant Agreement on behalf of the Recipient has been duly authorized or ratified by all necessary governmental

Complied with Marked for Deletion


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actions. | Due Date :24-Jun-2014

TF-16835 Finance Agreement :Paragraph 5.02 (b) | Description :The Project Agreement has been duly authorized or ratified by, and executed on its behalf and is legally binding upon it in accordance with its terms. | Due Date :24-Jun-2014


TF-16835 Finance Agreement :Paragraph 5.02 (c) |

Description :The Subsidiary Agreement has been executed between the Recipient and the Palestinian Authority. | Due Date :24-Jun-2014


TF-16835 Finance Agreement :Paragraph 5.02 (d) |

Description :The On-Granting Agreement has been executed on behalf of the Palestinian Authority and the MDLF. | Due Date :24-Jun-2014


TF-16835 (TF016835) Schedule 2. Section II. A. 1.

Each Project Report shall cover the period of calendar semester, and shall be furnished to the World Bank not later than forty-five (45) days after the end of the period covered by such report.

Complied with New

TF-16835 (TF016835) Schedule 2. Section II. A. 2.

The Completion Report shall be furnished to the World Bank not later than six (6) months after the Closing Date.

Not yet due New

TF-16835 (TF016835) Schedule 2. Section II. B. 2.

The Recipient shall ensure that interim unaudited financial reports for the project are prepared and furnished to the World Bank not later than forty-five days after the end of each calendar semester, covering the semester, in form and substance satisfactory to the World Bank.

Complied with New

TF-16835 (TF016835) Schedule 2. Section II. B. 3.

The audited Financial Statements for each such period shall be furnished to the World Bank not later than six months after end of such period.

Complied with New


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LEGAL COVENANTS2

LEGAL COVENANTS – ADDITIONAL FINANCE :GAZA SOLID WASTE MANAGEMENT PROJECT (P171328)

Sections and Description Schedule 2, Section II, Part A.(TF0B3584, TF0B3583, TF0B34145). The Recipient shall ensure that each Project Report is furnished to the Bank not later than forty-five (45) days after the end of each calendar semester, covering the calendar semester. Schedule 2, Section I, Part E. (TF0B3584, TF0B3583). For the purpose of carrying out Part D (2) of the Project, the Recipient, through the Palestinian Authority, shall cause MDLF to appoint and thereafter maintain at all times during the implementation of the Project, an Independent Verification Agent to verify the service delivery performance of JSC-KRM, in accordance with the provisions of the Project Operational Manual and the Results Based Operational Manual.

Conditions

Type Description Effectiveness (TF0B3582, TF0B3583) Article V: 5.01 (a): The execution and delivery of this

Agreement on behalf of the Recipient have been duly authorized or ratified by all necessary governmental action.

Type Description Effectiveness (TF0B3582, TF0B3583) Article V: 5.01 (b): The Subsidiary Agreement referred to

in Section I.A of Schedule 2 to this Agreement has been executed on behalf of the Recipient and the Palestinian Authority.

Type Description Effectiveness (TF0B3582, TF0B3583) Article V: 5.01 (c): The On-Granting Agreement has been

executed on behalf of the Palestinian Authority and the MDLF. Type Description Effectiveness (TF0B3582, TF0B3583) Article V: 5.01 (d): The Results Based Operational Manual

has been adopted by the Recipient through MDLF in form and substance satisfactory to the Bank.

Type Description Effectiveness (TF0B3584) Article V: 5.01 (a): The execution and delivery of this Agreement on

behalf of the Recipient have been duly authorized or ratified by all necessary governmental action.

Type Description Disbursement (TF0B3582, TF0B3583): Disbursement: Section III B 1(b): Notwithstanding the

provisions of Part A of this Section, no withdrawal shall be made for, under Category (2) unless the SOPs referred to in Section I. D of this Schedule have been adopted by in a manner satisfactory to the Bank; and (ii) the Bank has sent a written notification to the Recipient confirming that it has accepted as satisfactory a Verification Report confirming the achievement of pre-agreed


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targets and associated indicators. Type Description Disbursement (TF0B3582, TF0B3584): Disbursement: Section III B 1(a) Notwithstanding the

provisions of Part A of this Section, no withdrawal shall be made for payments made prior to the Signature Date.

Type Description Effectiveness (TF0B3584) Article V: 5.01 (b): The Subsidiary Agreement referred to in Section

I.A of Schedule 2 to this Agreement has been executed on behalf of the Recipient and the Palestinian Authority.

Type Description Effectiveness (TF0B3584) Article V: 5.01 (c): The On-Granting Agreement has been executed on

behalf of the Palestinian Authority and the MDLF. Type Description Disbursement (TF0B3583): Disbursement: Section III B 1(a) Notwithstanding the provisions of

Part A of this Section, no withdrawal shall be made for payments made prior to the Signature Date, except that withdrawals up to an aggregate amount not to exceed $100,000 may be made for payments made prior to this date but on or after January 1, 2020, for Eligible Expenditures under Categories (1) and (2).


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VIII. RESULTS FRAMEWORK AND MONITORING

Results Framework

COUNTRY: West Bank and Gaza ADDITIONAL FINANCE :GAZA SOLID WASTE MANAGEMENT PROJECT

Project Development Objective(s)

To improve solid waste management services in the Gaza Strip through provision of more efficient, environmentally and socially sound waste management systems.

Project Development Objective Indicators by Objectives/ Outcomes

RESULT_FRAME_TBL_ PD O

Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6 7

Improve solid waste management services in the Gaza Strip through more efficient solid waste systems

Percentage increase in fees collected annually within the JSC towards cost recovery (Percentage)

0.00 0.00 0.00 0.00 15.00 30.00 60.00 60.00 60.00

Action: This indicator has been Revised

Improve solid waste management in the Gaza Strip through more environmentally sound SW systems

Contaminated land managed or dump-sites closed under the project (Hectare(Ha))

0.00 0.00 0.00 0.00 0.00 10.00 10.00 10.00 10.00



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RESULT_FRAME_TBL_ PD O


1 2 3 4 5 6 7

Solid Waste collected from the targeted populations, disposed in a new sanitary landfill developed under the project (Percentage)

0.00 0.00 0.00 0.00 0.00 80.00 80.00 80.00 80.00


Improve solid waste management in the Gaza Strip through more socially sound SW systems

Wastepickers whose lives depend on the existing SW context integrated into inclusion programs (Number)

0.00 16.00 16.00 16.00 16.00 16.00 16.00 16.00 16.00


Direct project beneficiaries (number) (Number)

0.00 19,715.00 114,245.00 143,101.00 896,000.00 948,000.00 948,000.00 948,000.00 948,000.00


Female beneficiaries (Percentage)

0.00 49.00 49.00 49.00 49.00 49.00 49.00 49.00 49.00



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PDO Table SPACE

Intermediate Results Indicators by Components

RESULT_FRAME_TBL_ IO


1 2 3 4 5 6 7


Two transfer stations in targeted area are constructed and are fully equipped and operational by the end of the project (Number)

0.00 0.00 0.00 0.00 2.00 2.00 2.00 2.00 2.00


Closure of existing dumpsites at Sofa and Dier el Balah (Yes/No)

No No No Yes Yes Yes Yes Yes Yes


Interim cell is constructed in a sanitary manner to accommodate incoming MSW from target area during the construction of the new Sanitary landfill (Yes/No)

No No No No Yes Yes Yes Yes Yes

Action: This indicator


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1 2 3 4 5 6 7

has been Revised

Sanitary Landfill in the Southern Gaza Strip (Sofa/Al-Fukhari) is constructed and operational (Yes/No)



Industrial and municipal waste disposal capacity created under the project (Metric ton)

0.00 0.00 0.00 0.00 350,000.00 350,000.00 350,000.00 2,490,000.00 2,350,000.00


Temporary jobs created (person-day) under the various activities of Component 1 (Number)

0.00 10,000.00 20,000.00 30,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00


Component 2: Institutional Strengthening

Intended beneficiaries aware of project info. and project investments (%) (Percentage)

0.00 0.00 20.00 30.00 30.00 35.00 40.00 45.00 50.00


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1 2 3 4 5 6 7


% of female project beneficiaries aware of solid waste management practices (Percentage)

0.00 0.00 0.00 35.00 40.00 40.00 45.00 45.00 50.00

Action: This indicator is New

Increased the participation and role of women in decision making of the JSC-KRM through formation of a “women's committee” (Yes/No)

No No No No No No No Yes Yes


Training days provided to the Technical Operations Unit and other JSC-KRM staff and Board members as part of the targeted capacity building activities financed under Component 2 (Number)

0.00 0.00 0.00 130.00 130.00 140.00 140.00 145.00 150.00



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1 2 3 4 5 6 7

Service contracts are signed with member municipalities and UNRWA (Number)

0.00 1.00 3.00 3.00 3.00 18.00 18.00 18.00 18.00


New JSC Bylaw is approved and operational plans are defined (Yes/No)



Percentage of grievances that have been responded in a timely manner (Percentage)

0.00 0.00 0.00 50.00 50.00 60.00 70.00 80.00 90.00


Rationale:

Indicator for Citizen Engagement

Improved citizens satisfaction with JSC-KRM performance (Text)

to be measured (% satisfied)

to be determined (% satisfied)

to be determined (% satisfied)



JSC has assumed agreed responsibilities No Yes Yes Yes Yes Yes Yes Yes Yes


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1 2 3 4 5 6 7

for management of the upgraded transfer and disposal services (Yes/No)


A strategy plan for the elimination of random dumping in the targeted area is created by end of the project (Yes/No)



A strategy plan for optimizing waste recovery in the targeted area is created by the end of the project (Yes/No)



A strategy plan for optimization of primary collection and transportation of solid waste in the targeted areas is created by the end of the project (Yes/No)



Page 44 of 65



1 2 3 4 5 6 7


Component 4: Project Management

Interim IFRs and Progress Reports are submitted to Financing Partners in a timely and satisfactory manner (Yes/No)

No Yes Yes Yes Yes Yes Yes Yes Yes


MDLF-PDSU maintains adequate staffing for project management, environmental and social safeguards and fiduciary staff throughout the life of the Project (Yes/No)

No Yes Yes Yes Yes Yes Yes Yes Yes


Results based payments received for achieving service improvement related targets (Percentage)

0.00 0.00 0.00 0.00 0.00 0.00 80.00 80.00 80.00



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1 2 3 4 5 6 7

Results based payments received for achieving cost recovery related related targets (Percentage)

0.00 0.00 0.00 0.00 0.00 0.00 80.00 80.00 80.00


Adoption of the improved protocols and procedures as defined in the Standard operating procedures s for all JSC services (Yes/No)

No No No No No No Yes Yes Yes


IO Table SPACE

Monitoring & Evaluation Plan: PDO Indicators Mapped

Indicator Name Definition/Description Frequency Datasource Methodology for Data Collection

Responsibility for Data Collection

Percentage increase in fees collected annually within the JSC towards cost recovery

The indicator measures increase in annually collected fee by JSC towards cost-recovery.

Annual

JSC

IVA verification and JSC reporting

IVA

Contaminated land managed or dump-sites closed under the project

This indicator measures hectares of land managed or dumpsites closed. This

Annual

MDLF and JSC

JSC reports

MDLF


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indicates environmentally sound practices for solid waste management.

Solid Waste collected from the targeted populations, disposed in a new sanitary landfill developed under the project

The indicator measures percentage of solid waste collected and disposed in new sanitary landfill.

Annual

JSC

JSC reporting

MDLF and JSC

Wastepickers whose lives depend on the existing SW context integrated into inclusion programs

The indicator measures number of waste-pickers integrated in existing inclusion programs.

Annual

MDLF

MDLF Reports

MDLF

Direct project beneficiaries (number)

Direct beneficiaries are people or groups who directly derive benefits from an intervention (i.e., children who benefit from an immunization program; families that have a new piped water connection). Please note that this indicator requires supplemental information. Supplemental Value: Female beneficiaries (percentage). Based on the assessment and definition of direct project beneficiaries, specify what proportion of the direct project beneficiaries are female. This indicator is

Annual

MDLF-PDSU Reporting Beneficiary Assessments PCBS Statistics

Annually


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calculated as a percentage.

Female beneficiaries

Based on the assessment and definition of direct project beneficiaries, specify what percentage of the beneficiaries are female.

ME PDO Table SPACE

Monitoring & Evaluation Plan: Intermediate Results Indicators Mapped

Indicator Name Definition/Description Frequency Datasource Methodology for Data Collection

Responsibility for Data Collection

Two transfer stations in targeted area are constructed and are fully equipped and operational by the end of the project

It indicates construction and operation of transfer stations.

Annual

Construction Supervision Consultants Construction implementation plans Disbursement Plans Observation/field visits MDLF-PDSU Reporting

Consultants reports and MDLF-PDSU Reporting

MDLF-PDSU

Closure of existing dumpsites at Sofa and Dier el Balah

The dumpsite closure designs and post-closure plans are being finalized.

Annual

JSC and MDLF

Supervision reports

MDLF


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Interim cell is constructed in a sanitary manner to accommodate incoming MSW from target area during the construction of the new Sanitary landfill

This indicates construction of interim cell in a sanitary manner.

Annual

MDLF-PDSU and contractors supervision reports

Contractor and MDLF reporting

MDLF-PDSU

Sanitary Landfill in the Southern Gaza Strip (Sofa/Al-Fukhari) is constructed and operational

1 cell of 10 years capacity, reception area, recycling and composting plant, and leachate pond constructed and operational by the end of project.

Annual

Construction Supervision Consultants and plans Observation/field visits MDLF-PDSU Reporting

Construction and Supervision Reports

MDLF-PDSU

Industrial and municipal waste disposal capacity created under the project

This indicator measures the municipal or industrial solid waste disposal capacity created as a result of the project. The baseline for this indicator is zero.

Annual

Construction Supervision Consultants Construction implementation plans Observation/field visits

Construction and supervision reports

MDLF-PDSU

Temporary jobs created (person-day) under the various activities of Component 1

The indicator measures temporary jobs created under component 1.

Monthly/Semi-Annual

Construction Supervision Consultants and plans Workers attendance sheets

Construction and supervision reports, MDLF and JSC reports

Monthly/ Semi-annually


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Intended beneficiaries aware of project info. and project investments (%)

This indicator intends to measure the effectiveness of consultation and communication mechanisms in terms of ensuring that information about the project and project supported investments have been communicated effectively.

Semi-Annual

JSC and MDLF

Survey and Attendance

JSC and MDLF

% of female project beneficiaries aware of solid waste management practices

The indicator will measure awareness of female beneficiaries for solid waste management practices.

Semi-annual

JSC-KRM communications program monitoring and surveys

Survey and attendance.

JSC-KRM

Increased the participation and role of women in decision making of the JSC-KRM through formation of a “women's committee”

The indicator will measure participation of women in decision making of the JSC-KRM through formation of a “women's committee”.

Annual

Approval documents of JSC-KRM

JSC-KRM reports.

JSC-KRM

Training days provided to the Technical Operations Unit and other JSC-KRM staff and Board members as part of the targeted capacity building activities financed under Component 2

The indicator measures capacity building efforts under component 2.

Semi-annual

MDLF-PDSU JSC-KRM TOU Financing Partners

Training and Capacity building plan Training evaluation reports

MDLF-PDSU

Service contracts are signed with member municipalities and UNRWA

The indicator measures coordination between municipalities and UNRWA.

On-going

municipalities and MDLF reports

service contracts records.

MDLF


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New JSC Bylaw is approved and operational plans are defined

This indicates appropriate management and operation of JSCs by putting in place new bylaw.

Semi-annual

JSC

JSC reporting

JSC

Percentage of grievances that have been responded in a timely manner

Timely manner: 2 days for urgent matters; 5 days for other matters.

ongoing and constant monitoring

Grievance Redress System of JSC-KRM

Reporting on GRM by JSC-KRM

JSC-KRM

Improved citizens satisfaction with JSC-KRM performance

To be measured annually (based on survey).

Annual

Survey

Annual Survey will be conducted.

JSC-KRM

JSC has assumed agreed responsibilities for management of the upgraded transfer and disposal services

The indicates that the responsibility of upgraded services - transfer station and disposal services have been assumed by the JSC.

Annual

JSC and MDLF

Reports

MDLF-PDSU

A strategy plan for the elimination of random dumping in the targeted area is created by end of the project

This indicates that a strategy plan for the elimination of random dumping in the targeted area is created by end of the project.

One-time

MDLF and JSC

MDLF/JSC Reporting

MDLF

A strategy plan for optimizing waste recovery in the targeted area is created by the end of the project

This indicates that a strategy plan for optimizing waste recovery in the targeted area is created by the end of the project.

Annual

MDLF

MDLF Reporting

MDLF

A strategy plan for optimization of primary collection and transportation of solid waste in the targeted areas is

This indicates that a strategy plan for optimization of primary

Semi-annual

Verification as part of the Financing

Financing Partners Semi-annual Supervision/Monitoring

MDLF-PDSU


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created by the end of the project collection and transportation of solid waste in the targeted areas is created by the end of the project.

Partners Supervision/Monitoring Missions

Missions MDLF-PDSU

Interim IFRs and Progress Reports are submitted to Financing Partners in a timely and satisfactory manner

This indicates submission of IFRs in a timely and satisfactory manner.

Semi Annual

Financing Partners’ supervision and verification

Financing Partners Verification

Financing Partners

MDLF-PDSU maintains adequate staffing for project management, environmental and social safeguards and fiduciary staff throughout the life of the Project

This indicates that MDLF (the implementing agency) is maintaining adequate staffing for various functions of the project.

Semi annual

MDLF-PDSU

MDLF reporting

MDLF-PDSU

Results based payments received for achieving service improvement related targets

This indicator measures the percentage (out of a maximum of 100%) of the planned results based payments for meeting service related indicators that are paid.

Semi-annual

JSC-KRM and IVA reports

Various methodology (details are included in project operation manual)

Independent Verification Agent (IVA)

Results based payments received for achieving cost recovery related related targets

This indicator measures the percentage (out of a maximum of 100%) of the planned results based payments for meeting cost recovery indicators that are paid.

Semi-annual

JSC-KRM and IVA reporting

Semi annual Disbursement records /transactions that takes place after each IVA verification period.

Independent Verification Agent (IVA)

Adoption of the improved protocols and procedures as defined in the Standard

The upgraded Standard Operating Procedures will

Semi-annual

JSC-KRM (Professionaliz

JSC approval documents

JSC-KRM and IVA


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operating procedures s for all JSC services implemented across all JSC services.

ation Contractor)

ME IO Table SPACE


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Annex 1: Results Based Outcomes, Targets and Indicators for GPRBA Funded Activities

A. Outcomes and Targets

1. Outcome 1 – Service Improvement: Improvements in the delivery of solid waste services is the first key outcome supported by the results-based payments. The GPRBA grant will be primarily provided to the JSC-KRM on a transitional basis to cover the costs of service delivery and improved management of the new landfill and transfer stations using upgraded operational standards and procedures. The results-based payments for service improvements outcomes will be provided based on meeting the following performance targets:

• Target (1) Improved Landfill Services: The JSC-KRM’s performance at the landfill will be measured thorough (i) leachate flow generated at the landfill treated at the WWTP in compliance with agreed requirements (compliance with prespecified leachate quantity/diluting level accepted by WWTP; (ii) proper daily soil coverage (quantity, depth and frequency of soil cover); (iii) environmental monitoring and reporting (regular reports publishing); and (iv) Regular cleaning of areas surrounding the landfill, access roads and adjacent communities.

• Target (2) Improved Transfer Station Service: This target gauges the proper upkeep and management of the newly constructed transfer station at Rafah. Targets considered include (i) the maximum time collected waste is stored at the transfer station before landfill disposal; and (ii) organization and improvement in cleanliness of transfer station facilities.

• Target (3) Improved Container upkeep and Truck Maintenance Service (Secondary collection services): These improvements will be measured through daily observations by the JSC-KRM and regular reports will be prepared. This will be a dual responsibility between the JSC-KRM and participating municipalities. Target indicators to be monitored include: (i) overfilled containers in urban/populated areas; (ii) broken/unrepaired containers; (iii) regular status reports generated by the JSC-KRM related to the overall conditions of containers (fill level, container cleanness, and cleanliness of surrounding area) and shared with participating municipalities; and (iv) cleanliness and operational/functional conditions of fleets/trucks used by the JSC-KRM for secondary collection.

• Target (4) Improvement in Medical Waste Services: Proper medical waste collection and treatment constitutes an integral service to be provided by the JSC-KRM under the upgraded system. Service improvements in medical waste management will be measured through: (i) level of source separation for infectious waste (Sorting Index --improvement in medical waste separation); and, (ii) compliance with established medical waste handling procedure as defined in SOP. Medical waste producers (MWPs) such as hospitals, clinics and NGO’s will be responsible for the proper separation of medical waste and this will be measured though ‘quality of separation index’. Hospitals and clinics receiving service from the JSC-KRM will be provided discounts and/or credits on the fees they pay to the JSC-KRM based on the quality of separation of infectious waste and non-infectious medical waste and compliance with procedures for packaging and containment for the JSC-KRM collection.


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2. Outcome 2 – Cost recovery: Improved cost recovery and the financial standing of the JSC-KRM is the second key outcome targeted by the results-based payments. To continue delivering improved solid waste services and properly manage the sanitary facilities, the JSC-KRM need to reach reasonable level of cost recovery through increased billing and collection of fees from the municipalities and MWPs. To that end, the grant will be used to incentivize the JSC-KRM to improve its services quality and delivery by receiving result payments upon demonstrated performance on pre-agreed targets. The target for cost recovery outcome will be measured through the following:

• Target (5) Reducing costs and increased fee collection to support cost recovery: (i) increase in timely payments collected from municipalities by the JSC-KRM for transfer station and waste disposal services; and (ii) cost reduction per kilogram of medical waste treated. The cost reduction in medical waste treatment is expected to be achieved by switching from the current autoclave to microwave medical waste treatment system and installation of Solar Panel for powering the treatment facility which has reduced cost than using electricity and fuel for generator.


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B. Indicators

Table A.1.1 Results Based Financing Indicators

Target indicators to be Monitored Indicative Targets (to be finalized in the operations

manual)

Improved Landfill Services

Indicator 1: % of leachate flow generated at the landfill treated at the WWTP in compliance with agreed requirements (compliance with prespecified leachate quantity/diluting level accepted by WWTP)

100%

Indicator 2: % of days with adequate daily cover, in compliance with SOP 90% of the time

Indicator 3: Environmental monitoring reports regularly produced and made publicly available

Quarterly Reports

Indicator 4: Regular cleaning of areas surrounding the landfill, access roads and adjacent communities

Monthly/bi-weekly (in line with SOP, JSC regular reporting)

Improved Transfer Station Services

Indicator 1: Maximum time collected waste is stored at the transfer station before landfill disposal

No longer than one day

Indicator 2: Organization and improvements of cleanness of transfer station facilities

Photographic Documentation + Records, confirmed by Visual Observation (cleanliness index based on photos~ score – to achieve at least (B) out of (A/B/C/D) Period: over at least a two-week period (define in POM) – random visits

Improved Container upkeep and truck Maintenance Service (secondary collection services)

Indicator 1: % of overfilled containers in urban/ populated areas Less than 20%

Indicator 2: Producing regular reports on conditions around containers and communicate with respective member municipalities

Daily observations by the JSC-KRM are provided in a Monthly Report per each service area. Urgent violations/non-compliance are reported within maximum of 3 days.

Indicator 3: % of containers reported broken/unrepaired Less than 20%

Indicator 4: % of fleet operational Greater than 90%


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Target indicators to be Monitored Indicative Targets (to be finalized in the operations

manual)

Improvement in Medical Waste Services

Indicator 1: Level of source separation for infectious waste (Sorting Index --improvement in medical waste separation) –responsibility of Hospitals/health centers

> 80% infectious medical waste based on representative sampling

Indicator 2: Compliance with established medical waste handling procedure as defined in SOP; Responsibility of the JSC-KRM

YES/NO

Reducing costs and increased fee collection to support cost recovery

Indicator 1: % increase in timely payments received by the JSC-KRM for disposal services from municipalities

Target for cost recovery improvement to start after the first reporting period and target to be set at different threshold for each IVA reporting periods: 1st 6 months = 50% (no change from baseline) 2nd reporting period =60% 3rd reporting period=65% 4th reporting period=70%

Indicator 2: Cost reduction per kg of medical waste treatment Cost per kg treated


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Annex 2: Results Based Payments for GPRBA Funded Activities

Results based payments including the process for allocation, scoring and payment will be outlined in the

operations manual for the project. Below provides an outline for the main elements of that process.

Allocation of Grant per Service Evaluated

The grant allocation for results-based payments considered the JSC-KRM’s expenditure and shortfall

expected in the first two years for its various solid waste services. JSC-KRM’s total expected costs for a set

of eligible expenditures were determined for the targeted services – activities: (i) landfill improvement;

(ii) transfer station management; (iii) secondary collection container upkeep and truck maintenance; (iv)

medical waste management; and (v) administrative cost associated with cost recovery improvements

were assessed to determine the expected budget shortfall. These were used to determine the maximum

results-based payment per reporting period broken down by service or activity.

Calculation of Results Based Payments

Indicative maximum amount that would be paid for meeting the indicators for each service or activity is provided in Table A.2.1 below for each reporting period. The proportion of these maximum results-based payments that would be paid in each reporting period would be based the proportion of pre-agreed performance targets met or exceeded for each service during that reporting period as verified through the IVA.

Table A.2.1. Indicative Maximum Payment per Service by reporting period

1st Semi-annual

Reporting Period

2nd Semi-annual

Reporting Period

3rd Semi-annual

Reporting Period

4th Semi-annual

Reporting Period

Total

Service or activity

July- Dec 2020

Jan - Jun 2021

Jul - Dec 2021

Jan - Jun 2022

(USD) (USD) (USD) (USD)

Disposal Service (landfill operations)

205,250 225,775 248,353 273,188 952,566

Transfer Station Service 59,793 65,772 72,349 79,584 277,498

Container Upkeep and truck Maintenance services

60,814 66,896 73,585 80,944 282,239

Medical Waste Services 11,864 13,051 14,356 15,791 55,062

Administrative (Cost recovery) 35,043 38,547 42,402 46,642 162,634

TOTAL 372,764 410,041 451,045 496,149 1,729,999

In particular, each service has two or more targets and the payment associated with the allocation for a service would be made in proportion with the targets met. Each six-month reporting period, the targets


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for each service will be reported and verified (by the IVA) as being achieved (or exceeded) or not. The amount paid per service would be calculated as the percent of indicators achieved for each service multiplied by the maximum results-based payment per service. The total payment for each reporting period will be determined by adding up all the payments corresponding to targets achieved. The following tables show each target’s associated indicators and the amount of results-based payment paid for each indicator in each evaluation period. These, along with the results of the IVA report, will be used to determine the total payments for each period.

Table A.2.2: Indicative Payments for Target (1) Improved Landfill Services

Indicators % of payment

allocated to

indicator

Payment amount per reporting period (USD)

1st Semi-

annual

Reporting

Period

2nd Semi-

annual

Reporting

Period

3rd Semi-

annual

Reporting

Period

4th Semi-

annual

Reporting

Period

Indicator 1: % of leachate flow generated at the landfill

treated at the WWTP in compliance with agreed

requirements (compliance with prespecified leachate

quantity/diluting level accepted by WWTP)

25% 51,313 56,444 62,088 68,297

Indicator 2: % of days with adequate daily cover, in

compliance with SOP

25%

51,313 56,444 62,088 68,297

Indicator 3: Environmental monitoring reports regularly

produced and made publicly available 25% 51,313 56,444 62,088 68,297

Indicator 4. Regular cleaning of areas surrounding the

landfill, access roads and adjacent communities 25% 51,313 56,444 62,088 68,297

Total 100% 205,250 225,775 248,353 273,188

Table A.2.3: Indicative Payments for Target (2) Improved Transfer Station Service

Indicators Allocation per

Indicator

1st Semi-

annual

Reporting

Period

2nd Semi-

annual

Reporting

Period

3rd Semi-

annual

Reporting

Period

4th Semi-

annual

Reporting

Period

Indicator 1: Maximum time collected waste is stored at the

transfer station before landfill disposal 50% 29,896.5 29,896.5 29,896.5 29,896.5

Indicator 2: Organization and improvements of cleanness of

transfer station facilities 50% 29,896.5 29,896.5 29,896.5 29,896.5


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Total 100% 59,793 65,772 72,349 79,584

Table A.2.4: Indicative Payments for Target (3) (Improved container upkeep and truck maintenance

service (Secondary collection services)


Indicator

1st Semi-

annual

Reporting

Period

2nd Semi-annual Reporting Period

3rd Semi-annual Reporting Period

4th Semi-annual Reporting Period

Indicator 1: % of overfilled containers in urban/ populated areas.

25% 15,203.5 15,203.5 15,203.5 15,203.5

Indicator 2: Producing regular reports on conditions around containers and communicate with respective member municipalities

25% 15,203.5 15,203.5 15,203.5 15,203.5

Indicator 3: % of containers reported broken/unrepaired 25% 15,203.5 15,203.5 15,203.5 15,203.5

Indicator 4: % of fleet operational 25% 15,203.5 15,203.5 15,203.5 15,203.5

Total 100% 60,814 66,896 73,585 80,944

Table A.2.5: Indicative Payments for Target (4) Improvement in Medical Waste Services


Indicator

1st Semi-

annual

Reporting

Period

2nd Semi-

annual

Reporting

Period

3rd Semi-

annual

Reporting

Period

4th Semi-

annual

Reporting

Period

Indicator 1: Level of source separation for infectious waste (Sorting Index --improvement in medical waste separation) –responsibility of Hospitals/health centers

50% 5,932 5,932 5,932 5,932

Indicator 2: Compliance with established medical waste handling procedure as defined in SOP; Responsibility of JSC-KRM 50% 5,932 5,932 5,932 5,932

Total 100% 11,864 13,051 14,356 15,791


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Table A.2.6: Indicative Payments for Target (5) Reducing costs and increased fee collection to support cost recovery

Targets/indicators

Allocation

per Target

1st Semi-

annual

Reporting

Period

2nd Semi-

annual

Reporting

Period

3rd Semi-

annual

Reporting

Period

4th Semi-

annual

Reporting

Period

Indicator 1: % increase in timely payments received by the JSC-KRM for disposal services from municipalities 50% 17,521.5 17,521.5 17,521.5 17,521.5

Indicator 2: Cost reduction per kg of medical waste treatment 50% 17,521.5 17,521.5 17,521.5 17,521.5

Total 100% 35,043 38,547 42,402 46,642


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Annex 3: Summary of Gender Action Plan 1. Service improvement and beneficiary satisfaction: the project will introduce an overall service satisfaction survey for the JSC-KRM related solid waste services that would be completed and disaggregated by Gender. The surveys will be administered in the project area (the three KRM governorates) to random groups as well as women committees and the data will be disaggregated by gender. The survey evaluation will be conducted twice a year and the results will be published on t website. In addition, online tools will be deployed to register feedback and complaints on solid waste service quality and emergencies in their respective communities and their feedback will be duly documented to assess improvements in solid waste service provision improvements.

2. Targeting women in communication programs: to increase women’s participation and involvement in the solid waste sector, the project will actively pursue outreach programs and activities targeted at women through households, schools, NGOs and universities. Stakeholder consultations with universities, for example, will be held to understand student perceptions about the sector and how to break gender stereotypes surrounding women’s role and solutions to engage them. The scope, frequency and timing of these outreaches will be coordinated with the JSC-KRM’s existing communication plan and the indicator will be monitored throughout project implementation. Messages will be targeted to reach women and men, equally, and build on gender-differentiated findings identified during consultations.

3. Raising Awareness and Learning: the role of women, and that of mothers is found to be a critical factor in raising awareness and educating children about sanitary solid waste management and disposal practices. The project, hence, will implement communication and educational trainings tailored for women. To determine the level of awareness and learning about solid waste management best practices among women in the project area, assessments/online sessions will be conducted at the onset of the project which will then be used as a baseline. Particular attention will be paid to the role mothers could play in raising awareness and educating their children in anti-littering/reducing litters, container cleanliness (putting trash inside bins), and general awareness. The progress will be tracked through evaluating the knowledge of the target group’s school aged children and will be linked to the ongoing school program of the JSC-KRM.

4. Formulation of decision-making women committees: to increase the involvement and participation women in the decision-making process, the project will formulate representative women committee who will be regularly consulted by the JSC-KRM to voice women’s’ issues as well as propose service improvements measures and participate in the decision-making process. A designated modality will be established to allow this committee of women representatives to contact the service provider (the JSC-KRM) as needed and offer regular and systematic feedback (e.g. through participation in selected JSC-KRM board meetings) Lessons on similar modalities to engage women and elevate their role across the waste management value chain will be drawn from global good practices.

Detailed Implementation Plan

5. Before launching the activities listed below, the JSC-KRM will provide a training for the public awareness team on gender related issues and the need for increased participation. The public awareness team will take the lead on gender initiatives, such as conducting the surveys and assisting the JSC-KRM in


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carrying out gender related tasks. The team will also be instrumental in facilitating the documentation of the gender actions taken, under the overall guidance and responsibility of the JSC-KRM.

Table A.3.1. Gender Indicators and M&E Arrangement

Indicator Actions Frequency/Implementatio

n period Responsibility

Indicator 1. Bridging the solid waste service satisfaction gap between male and female headed households

Conducting surveys for random groups of women and men in the project area (Khan Younis, Rafah and Middle Governorate areas).

Twice a year JSC-KRM

Conducting three group sessions targeting women in the neighborhood committees across the three JSC-KRM governorates (Khan Younis, Rafah and Middle Area).

At the end of each year JSC-KRM

Providing online solution designated to these target groups, in case there is a solid waste service emergency that lasts for long time. Online survey published on JSC-KRM and all the member municipalities social media platforms.

Twice a year JSC-KRM

Indicator 2: Targeted communication programs for women

Conducting outreach programs with the goal of increasing the number of women and involvement through the following outreach initiatives: - School outreach program. - Household outreach program. - NGOs outreach program. - University outreach program.

These programs will be conducted according to the communication plan in JSC-KRM “Throughout the year”

JSC-KRM

Indicator 3: Increased level of awareness and learning for women with regard to solid waste management practices

Conducting an online session with group of women from different municipal areas in the three governorate and from refugee camps, to collect the base line data.

Data to be collected to establish the baseline before the onset of IVA monitoring

JSC-KRM and MDLF

Designing an awareness program for mothers who have school aged children (elementary schools and kindergarten). This program will target at least 20 mothers in 5 different target areas and consist of 3 awareness sessions. Following the training/awareness the sessions, the children of those mothers will be evaluated through a competition and the children will be asked to transfer the new information to their peers.

Twice a year (every school semester)

JSC-KRM


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Indicator Actions Frequency/Implementatio

n period Responsibility

Designing an awareness program targeted at Women NGOs in different municipalities. The plan involves conducting a family fun day at these NGOs and having fun games and competitions amongst children to evaluate their knowledge with regard to environmental solid waste knowledge and practices.

Twice a year (during summer and winter holidays)

JSC-KRM

Providing online solution in case SWM emergency lasts for long time: Conduct an online awareness session for group of women in cooperation with the municipality’s neighborhood committees, who could share the information on their committee’s social media platforms.

Monthly meeting with at least 10 women in each session.

JSC-KRM

Indicator 4: Increased participation and role of women in decision making of the JSC-KRM through formation of women committee.

The plan involves forming women committee, with 15 members. This committee will receive trainings about JSC-KRM services, and the benefits accrued to the beneficiary population under GSWMP. JSC-KRM will conduct regular meetings and consultations with this committee. The meeting format would be either online or in person and the meeting frequency will be every two months. The meetings will serve as a venue for evaluating JSC-KRM’s work and to voice solid waste service delivery issues in the project area. In addition, a special GRM channel will be developed for this committee to be able communicate with JSC-KRM 24/7.

A meeting every two months. In addition, other activities would be implemented in cooperation with the committee members based on the action plan which will be developed by the committee.

JSC-KRM and municipalities


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Annex 4: Climate Change and Vulnerability

Climate Change Vulnerability Context in Gaza

▪ According to the UNFPA report “Palestine 2030 – Demographic Change: Opportunities for Development, 2017”23, and interview24 of Andres Thomsen of UNFPA, population of Gaza will grow by an additional 1.3 million people by 2030, a figure that will more than double by 2050 (from 2 million to 4.8 million).

▪ “Gaza consumes on average of 80 liters of water per capita per day (lpcd), significantly below the minimum of 100 lpcd of potable water recommended by the World Health Organization (WHO).25 ” In 2015 Gaza domestic water demand/consumption was 95 million cubic meters (MCM), and by 2030 it will increase to 145 MCM. If water demand in Gaza remains proportional to population growth, demand will be 190 MCM per year before 2050.

▪ Water sources in Gaza include the coastal aquifer, desalination plants, and imported water, purchased from Israel.

▪ Of all environmental challenges, water shortages, aquifer depletion, untreated waste, groundwater pollution, and release of untreated wastewater and runoff into the sea, are the most pressing (and closely interconnected with one another).

▪ A shortage of water and substandard water quality disproportionally affect the segment of the

Gaza population who live below the poverty line, since their resources (and ability) to buy water are limited.

▪ A higher percentage of young children (below the age of 2 years old) in Gaza suffer from anemia, due to malnutrition, poverty, infections, and groundwater pollution by organic and inorganic chemical compounds.

What do forecasts say about anticipated climate change in/around Gaza Strip Data on historic climate indicators and forecasts (simulated using established global circulation models, for low-/medium-/high-emissions scenario) are available on the World Bank CCKnow portal. However, projections for West Bank and Gaza are not available, and hence the projections for the nearest locations, - namely: Israel and/or Egypt - are used:

▪ https://climateknowledgeportal.worldbank.org/country/israel/climate-data-projections ▪ https://climateknowledgeportal.worldbank.org/country/egypt/climate-data-projections

Selecting forecasts for Israel is deemed more appropriate, given the territory of Israel is smaller, and mainly spread along the coast, similar to the Gaza Strip. Whereas the territory of Egypt is much bigger,

23 https://palestine.unfpa.org/sites/default/files/pub-pdf/Palestine%202030%20Full%20Report%20English.pdf 24 https://www.reuters.com/article/us-palestinians-population/u-n-sees-steep-gaza-population-growth-in-30-years-with-

economic-problems-ahead-idUSKBN1491QJ 25 http://documents.worldbank.org/curated/en/324951520906690830/pdf/124205-WP-PUBLIC-MAR14-5PM-March-2018-

AHLC-Report.pdf

https://climateknowledgeportal.worldbank.org/country/israel/climate-data-projections

https://climateknowledgeportal.worldbank.org/country/egypt/climate-data-projections

https://www.reuters.com/article/us-palestinians-population/u-n-sees-steep-gaza-population-growth-in-30-years-with-economic-problems-ahead-idUSKBN1491QJ

https://www.reuters.com/article/us-palestinians-population/u-n-sees-steep-gaza-population-growth-in-30-years-with-economic-problems-ahead-idUSKBN1491QJ


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and average precipitation changes may not be perfectly adequate for making conclusions about precipitation change along the coast. Still, in this specific case, forecasts for Israel and Egypt are quite similar in both the magnitude and direction of changes in precipitation and temperature. For more accurate planning, models with higher granularity of results are preferable, especially for smaller-sized countries. There are no readily available high granularity climate forecasts for Gaza. There is a recent research publication based on the high granularity forecast for Israel (summarized below). COSMO-CLM forecasts a general increase in seasonal mean temperature throughout the domain with peaks of ~2.5 °C, especially in winter and autumn. Increase in the annual minimum temperature is larger than the increase in annual maximum temperature. Seasonal precipitation decreases in the parts of Israel experiencing north and central Mediterranean climates, with reductions reaching ~40 percent, and an increase of the same percentage in the most southern areas (but not the area close to Gaza Strip) during winter and spring. It is believed that the spatial pattern of precipitation changes, with a significant decrease in the northern part of Israel and an increase in the southern part, is probably the result of decrease in the occurrence of cyclones. The model also predicts that the consecutive wet day index (CWD) will decrease by about 2 days in the north of Israel, and by about 1 day in the central and southern parts of Israel and the number of days exceeding the 10 and 20mm thresholds are projected to decrease by 3-4 days. The consecutive dry days (CDD) index is projected to increase by ~20 days in most part of the study region. The model also predicts shorter winters and longer summers, with the winter season (in Israel) experiencing more than two thirds of the annual rainfall.

▪ According to UN reports, Gaza’s aquifer is expected to be irreversibly depleted by 2020.

▪ Depleted aquifers, infiltration by seawater and groundwater pollution, combined with high population density, results in low water availability per individual, low quality of available potable water, and contributes to low hygiene and variety of epidemiological risks.

▪ According to recent RAND publication26 “less than 11 percent of Gaza’s population has access to safe drinking water through the public network.” The remaining 90 percent of population depend on water tanks, bottles and containers. Water is limited, and water consumption practices are often unsustainable.

26 https://www.rand.org/content/dam/rand/pubs/research_reports/RR2500/RR2515/RAND_RR2515.pdf

https://www.rand.org/content/dam/rand/pubs/research_reports/RR2500/RR2515/RAND_RR2515.pdf

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