GZ-Third Municipal Development Project (WB-P159258)

  • Palestine, West Bank, Gaza
Where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jul 21, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
The holder of the loan, grant, or other investment.
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Project Cost (USD)
$ 95.63 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ WB website

Updated in EWS Aug 25, 2017

Disclosed by Bank Aug 24, 2016

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Project Description
The objective of the Third Municipal Development Project is to enhance the institutional capacity of municipalities in the West Bank and Gaza for more accountable and sustainable service delivery. There are four components to the project, the first component being municipal performance and service delivery. The project will finance municipal infrastructure for improved service delivery. The project’s block grants will provide the basic funding for eligible municipalities for infrastructure development based on needs and equity, while the performance grants will provide an incentive for eligible municipalities to improve their performance. Half of the total component one financing will be allocated for the block grants and another half for the performance-based grants. The block grants will be allocated based on population (40 percent) and needs (60 percent). Gaza municipalities will be allowed to use 20 percent of their grants for recurrent expenditures13 to reflect the special circumstances they face. The eligible expenditures will be defined in the project’s operations manual. The second component is the capacity development to municipalities and Palestinian institutions. This component will provide capacity development support to municipalities and national level institutions, namely, the MDLF and the MoLG. The MDLF will prepare a capacity development plan at the start of the project in consultation with all stakeholders, which will provide a detailed description of the priorities, activities and their inter-linkages for this component. The third component is the municipal partnership projects. This component will provide technical assistance and project financing to municipalities to: (a) engage more effectively with the private sector, and (b) work across administrative boundaries to develop joint and/or innovative investments for municipal service delivery.
Investment Description

Contact Information
Municipal Development Lending Fund (MDLF) Mohammad Ramahi Finance Director mramahi@mdlf.org.ps Tawfiq Budeiri Managing Director tbdeiri@mdlf.org.ps ACCOUNTABILITY MECHANISM OF WORLD BANK The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. You can learn more about the Inspection Panel and how to file a complaint at: http://ewebapps.worldbank.org/apps/ip/Pages/Home.aspx.