According to the Bank’s website, the objective of this project is to support the preparation of implementation-ready investments and enhance the public sector’s institutional and technical capacities for investment preparation.

The operation will support the establishment and initial operations of the Project Preparation Facility (PPF) for the West Bank & Gaza. The project will enhance capacities to develop ready-to-finance investment projects and support project preparation capacities within line ministries and agencies.

Component 1 activities will include; Activities financed by this component will include:
a) Design and structuring: Detailed planning for preparation and structuring of selected investments, including the development of a standardized model for business case development;
b) Pre-feasibility analysis and concept definition: Preliminary market, technical, gender, environmental, social, land and climate-related issues; legal, regulatory, security assessment, reforms required to enable successful projects; cost-benefit analysis; preliminary design and appraisal; recommended choice of procurement; and community and civil society consultations;
c) E&S studies: Assessment of E&S risks and impacts of each project, consistent with the World Bank Environmental and Social Framework (ESF). This may include ESIAs and other E&S assessments for the eventual investment, commensurate with the E&S risks of the project, and its design stage (conceptual versus detailed). Therefore, E&S studies may be integrated into feasibility studies, or may be stand-alone and preliminary in nature, and will include specifications for future assessments that can also be adapted to meet the specific E&S standards of future financiers, once identified;
d) Detailed feasibility and design studies: Demand analysis, technical feasibility and engineering cost estimates studies, concept designs, financial and economic assessments of the investment, de-risking assessment (including for co-investment/de-risking decisions by IFIs/DFIs), geotechnical or resource assessments, detailed designs for construction projects, construction project drawings and specifications (construction documents), procurement and disbursement plans, and other design documents. Feasibility studies and design documents will need to meet the requirements of the Palestinian Authority legal framework;
e) Business case for the investment proposals: Analysis of the financial and economic case for proposed investments to inform the PA's decision on financing (incorporating financial viability assessment, fiscal impact analysis and economic appraisal); detailed legal and regulatory due-diligence and preparation of modifications required to support proposed investments;
f) Financial structuring, outputs aimed at leveraging private funds and/or sharing risks with private sector, as and where appropriate; assessments of proposed financing mechanisms and potential for maximizing the participation of private sector in financing selected investments (e.g. through a range of PPP/concession structures), preparation of risk allocation matrices, proposed contractual structure and its commercial viability, initial market sounding with potential investors;
g) Other preparation work, including appraisal documents and material including results frameworks, design of specific project components and subcomponents, subject matter technical and financial appraisals, monitoring and evaluation systems, risk identification and mitigation frameworks, design of institutional and implementation arrangements and fiduciary appraisals including procurement and financial management arrangements.

Investments being considered by selected line ministries and agencies (MOPWH; PWA; PENRA; EQA and MDLF/MOLG) for potential PPF support include: Water -Bulk Systems and Water Harvesting investments (estimated envelope: USD 140 million); Energy - regional (Jordan) 400Kv interconnector; Refugee Camps solar power investments; Green Corridor solar plants (estimated envelope: TBD); Ramallah BRD; Solid Waste Management Facilities; Sector and Investment Specific SEAs and ESIAs.

Component 2 activities will include:
a) Technical capacities. Activities will support the provision of expertise in the areas of investment preparation and development of high-quality investments, including preliminary design, detailed design, technical, economic, and financial appraisal, procurement, environmental and social (E&S) assessments, monitoring and evaluation, risk identification and mitigation, design of institutional and implementation arrangements for specific projects, and financial management (FM). Beneficiaries will include PA Government entities such as, inter alia, MOPIC and MoF; Line Ministries and Agencies; Local Governments and SOEs that are responsible for preparing and implementing projects in their respective sectors or locations. Capacity strengthening activities will be tailored to respond to the specific needs related to the projects under preparation at each Government entity. Activities will include: i) Provision of expert advisors to be embedded within line ministries and agencies to prepare pipeline investments (other than those supported by the PPF); (ii) Procurement of external consultants to provide on-demand technical expertise across various sectors and specific skills; and iii) Delivery of training and study tours on best practices in investment preparation.
b) Institutional strengthening. To ensure effective integration of the PPF within the PA's prioritization and sequencing system, and the smooth coordination between the PPF unit and other PA entities, Component 1 activities will support the development of guidance materials, policy documents, and the development and institutionalization of coordination processes and procedures, supported by training for relevant PA officials.

Component 3 Activities will include: support to Project management, administration, and operational costs of the Project Implementation Unit responsible for implementing West Bank-related project activities.

While the E&S risks associated with the operation itself are expected to be moderate, the E&S risks for this operation are assessed as ‘high’ primarily due to potential downstream risks of the investments benefiting from preparation support under the Project. The downstream environmental risks of investment activities is likely to pose significant physical impacts and risks including air, soil, water and noise pollution, waste generation and handling, occupational and community health and safety, impact on biodiversity, resources efficiency and cultural heritage. The social risk is also assessed as ‘high’. In the West Bank potential risks/impacts pertain to downstream effects of infrastructure projects expected to be prepared under the Project including: community health and safety; labor and working conditions (e.g. child labor in poorer/remote areas of the West Bank); security of workers and affected communities (e.g. due to weak law and order, settler violence, armed security personnel presence); gender-based violence/sexual exploitation and abuse/sexual harassment (GBV/SEA/SH) of women and children (especially the more vulnerable e.g. with disabilities, young women) due to labor influx and camps located near communities; and land related impacts including land acquisition, restrictions on land use (e.g. for Bedouins/herding/farming communities), involuntary resettlement and displacement.

A proposed grant from the trust fund for the west bank and gaza in the amount of us$ 20 million.
Total Project Cost: us$ 20 million

World Bank
Andrea Liverani - Lead Environmental Specialist
Junglim Hahm - Senior Infrastructure Finance Specialist
Haji Huseynov - Senior Infrastructure Specialist

Borrower/Client/Recipient
The Palestine Liberation Organization [for the benefit of the Palestinian Authority)

Implementing Agencies
Ministry of Finance and Planning

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