The RESTRUCTURING ISDS GZ-Integrated Cities and Urban Development Project (P150991)

Public Disclosure Authorized

Integrated Safeguards Data Sheet Restructuring Stage Public Disclosure Authorized

Restructuring Stage | Date ISDS Prepared/Updated: 12-Jan-2021| Report No: ISDSR31294

Public Disclosure Authorized

Regional Vice President: Ferid Belhaj Country Director: Kanthan Shankar Regional Director: Ayat Soliman Practice Manager/Manager: Jaafar Sadok Friaa Task Team Leader(s): Rafeef Abdelrazek, Christopher T. Pablo

Public Disclosure Authorized

The World Bank RESTRUCTURING ISDS GZ-Integrated Cities and Urban Development Project (P150991)

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I. BASIC INFORMATION

1. BASIC PROJECT DATA

Project ID Project Name P150991 GZ-Integrated Cities and Urban Development Project Task Team Leader(s) Country Rafeef Abdelrazek, Christopher T. Pablo and Gaza

Approval Date Environmental Category

21-Sep-2016 Partial Assessment (B) Managing Unit SMNUR

PROJECT FINANCING DATA (US$, Millions)

SUMMARY-NewFin1

Total Project Cost 5.00 Total Financing 5.00 Financing Gap 0.00

DETAILS-NewFinEnh1

Non-World Bank Group Financing

Trust Funds 5.00

Special Financing 5.00

2. PROJECT INFORMATION

PROG_INF O Current Program Development Objective The proposed PDO is to enhance the capacity of participating urban areas to plan for sustainable urban growth.

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The World Bank RESTRUCTURING ISDS GZ-Integrated Cities and Urban Development Project (P150991)

3. PROJECT DESCRIPTION

1. The Integrated Cities and Urban Development Project (ICUD) supports local government units (LGUs) of the five leading socio-economic urban areas in West Bank and Gaza (WB&G): , urban area, urban area, urban area, and -Al Bireh urban area1. These five participating urban areas were selected based on their strategic importance in terms of population and future economic growth and include 16 municipalities, 14 village councils, and 8 refugees camps, serving a total of 1.45 million people2, or approximately 30 percent of WB&G’s population.

2. This is the first project to introduce cross-jurisdictional “metropolitan” planning across the LGUs of the leading urban areas in the . To support this new process of collaboration between the urban area LGUs in the West Bank and to foster ownership and commitment for joint activities, ICUD facilitates the development of intra- urban area coordination mechanisms (joint coordination units – JCUs) to be operational in all of the participating urban areas except for Gaza City, which is comprised of a single LGU.3 Through the intra-urban area JCUs, the participating urban areas in the West Bank, along with Gaza City, are supported by the project to conduct urban growth planning. The project is also strengthening the institutional and technical capacity of participating urban areas to plan for sustainable urban growth through, inter alia, the provision of technical assistance (TA), goods, and training in order to enable the areas to respond more efficiently to the needs of their growing populations and the private sector with more sustainably and well- planned urban spaces and infrastructure.

3. ICUD finances the following components:

(a) Component 1: Planning for Sustainable Urban Growth strengthens the institutional and technical capacity of participating urban areas to plan for sustainable urban growth through, inter alia, the provision of TA, goods, and training. Component cost is US$4.55 million from TFGWB and US$19.09 million from PID-MDTF.

(b) Component 2: Project Implementation Support and Management Cost finances the training, operating costs, and goods necessary for the technical oversight and implementation support of the proposed project to be performed by, inter alia, a Technical Supervisor and Local Coordinator for the Bethlehem, Hebron, Nablus, Ramallah-Al Bireh urban areas. This component also finances the management fee of the Municipal Development and Lending Fund (MDLF), which manages procurement, finance, safeguards, and reporting for the project based on technical inputs from the Technical Supervisor. Component cost is US$0.45 million.

4. As requested by the Palestinian Authority (PA), through the Ministry of Finance, and the Municipal Development and Lending Fund (MDLF) and Ministry of Local Government (MoLG), as the Implementing Agencies of the project, ICUD will be restructured to incorporate the following changes: (i) an adjustment of the scope of Component 1 to include the addition of works; (ii) revision of the Results Framework to establish previously undefined targets and capture additional project results; and (iii) an extension of the project closing date to allow for full achievement of both the project indicators and the PDO.

1 With the exception of Gaza City, which is located in the , the latter four urban areas are located in the West Bank and are considered the territory’s major “urban agglomerations”, which are defined as built-up urban areas extending across existing municipal and village council boundaries with common labor and housing markets. They were identified at project preparation through spatial analysis of urban extent and in consultation with MoLG and selected LGUs. 2 As per Palestinian Central Bureau of Statistics (PCBS) 2017 census figures. 2021 predicted population for the corresponding areas is 1.59 million. 3 Ramallah, Al Bireh, and Bitounia municipalities prior to the project had a joint unit. The project works with this unit. Based on the spatial analysis of the area, Surda-Abu Qash Municipality was added to the unit under this project.

The World Bank RESTRUCTURING ISDS GZ-Integrated Cities and Urban Development Project (P150991)

5. As part of the adjustment of the scope of Component 1, small-scale works in the form of demonstration projects will be added to pilot prioritized joint investments by the participating urban area LGUs. These projects are intended to demonstrate the benefits and effectiveness of coordinated planning and sustain the progress and momentum of joint cooperation and integrated planning that ICUD has fostered among the agglomeration LGUs. To include these activities under the project, an amendment will be drafted to include “works” under the project Grant Agreement. .

4. PROJECT LOCATION AND SALIENT PHYSICAL CHARACTERISTICS RELEVANT TO THE SAFEGUARD ANALYSIS (IF KNOWN)

The project's activities are being implemented in the five leading socio-economic urban areas in West Bank and Gaza. These consist of Gaza City in the Gaza Strip and four urban agglomerations in the West Bank: (i) Nablus urban area; (ii) Hebron urban area; (iii) Bethlehem urban area; and (iv) Ramallah-Al Bireh urban area. These five participating urban areas were selected because of their strategic importance in terms of population and future economic growth, and include 16 municipalities, 14 village councils, and 8 refugees camps, serving a total of 1.45 million people, or approximately 30 percent of the population.

5. ENVIRONMENTAL AND SOCIAL SAFEGUARDS SPECIALISTS ON THE TEAM

Helen Z. Shahriari, Social Specialist Shafick Hoossein, Environmental Specialist Najm-Ul-Sahr Ata-Ullah, Social Specialist SAFEGUARD_TABLE 6. SAFEGUARD POLICIES TRIGGERED Safeguard Policies Triggered Explanation To safeguard for potential downstream environmental and social risks of the project activities, the project is categorized as a Category B and the instrument used is an Environmental and Social Management Framework (ESMF), which will act as the overarching tool to guide the project. This ESMF will screen all ICUD planning studies and works, explicitly exclude activities with category A impacts (if any), identify potential downstream Environmental Assessment (OP) (BP 4.01) Yes environmental and social risks, and guide preparation of safeguards-specific studies in parallel to technical planning activities. More specifically, Terms of Reference for the activities financed under Components 1 and 2 (Planning for Sustainable Urban Growth and Project Implementation Support and Management Costs) will contain provisions to examine the environmental and social implications of any policy

The World Bank RESTRUCTURING ISDS GZ-Integrated Cities and Urban Development Project (P150991)

changes, modifications in land use, detailed studies of specific infrastructure, and any issues of potential impact to beneficiaries. Environmental and Social Management Plans (ESMPs) will also be prepared to guide and monitor each activity involving works under the pilot projects. Consultations to be carried out for each pilot project will inform affected businesses and people on the proposed activities and potential impacts (e.g., disruptions caused during construction) as well as orient them on the project GRM. As the project includes works, the ESMPs will incorporate aspects of Occupational Health and Safety (OHS) Standards relevant to the proposed activities and mitigate for and adequately address any impacts that may arise. A Strategic Environment and Social Assessment (SESA) was also prepared under the project as one of the tools under the ESMF. It is used as a guiding tool for the pilot activities to identify the priority impacts but also to advise the project on what opportunities and constraints exist the context of the project. Performance Standards for Private Sector No N/A Activities OP/BP 4.03 Sub-project screening forms will ensure exclusion Natural Habitats (OP) (BP 4.04) No of any activities with potential OP 4.04 impacts. Sub-project screening forms will ensure exclusion Forests (OP) (BP 4.36) No of any activities with potential OP 4.36 impacts Sub-project screening forms will ensure exclusion Pest Management (OP 4.09) No of any activities with potential OP 4.09 impacts. Sub-project screening forms will ensure exclusion of any activities with known OP 4.11 impacts. Physical Cultural Resources (OP) (BP 4.11) No Chance finds procedures will be included in every sub-project ESMF. Indigenous Peoples (OP) (BP 4.10) No N/A As the ICUD project will not finance activities that entail involuntary taking of land as part of this project now or at a later stage to this Project, the World Bank Policy on Involuntary Resettlement, OP 4.12, will not apply to ICUD. This project will not Involuntary Resettlement (OP) (BP 4.12) No recommend, endorse, or facilitate the involuntary taking of land for future pipeline investments on private land or land that has claim on it, as well as municipally owned land that has informal settlers or informal/ambulant vendors, as addressing private land uptake or informal settlers/vendors

The World Bank RESTRUCTURING ISDS GZ-Integrated Cities and Urban Development Project (P150991)

will likely entail more time to complete beyond the scheduled project closing. Sub-project screening forms will ensure exclusion Safety of Dams (OP) (BP 4.37) No of any activities with potential OP 4.37 impacts Projects on International Waterways (OP) Sub-project screening forms will ensure exclusion No (BP 7.50) of any activities with potential OP 7.50 impacts Projects in Disputed Areas (OP) (BP 7.60) No N/A

KEY_POLICY_TABLE II. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT

A. SUMMARY OF KEY SAFEGUARD ISSUES

1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts. There are no potential large scale, significant or irreversible impacts as a result of the activities of the project. The ICUD project is largely a planning support project, financing mostly studies and training activities. To demonstrate the benefits of joint planning and implementation, limited works are being added under Component 1 Planning for Sustainable Urban Growth. As these works are expected to be small scale demonstration activities, they will not entail involuntary taking of land, and such works will be carried out in public land that does not have squatters/ users of the land for livelihoods. Therefore, as there is no planned land acquisition during project implementation, the World Bank Policy on Involuntary Resettlement (OP 4.12) does not apply. This project will not recommend, endorse or facilitate pipeline investments on private land or on municipal land that has informal settlers or informal/ambulant vendors as addressing private land uptake or informal settlers/vendors will likely entail more time to complete beyond the scheduled project closing.

2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area. An ESMF was prepared for the project and has been updated to reflect the addition of works for pilot subprojects (small works) to the project activities and to describe the consultations that will be carried out in the identification, preparation and implementation of these micro-scale works. Template ESIA Terms of Reference (drafted in line with Bank environmental and social requirements) are annexed to the ESMF to provide guidance on how any potential impacts of project activities, even after the lifetime of this project, can be addressed. Environmental and Social Management Plans (ESMPs) will be prepared for each works activity under the project. The consultations to be carried out for each pilot project will inform affected businesses and people on the proposed activities and potential impacts (e.g., disruptions caused during construction) as well as orient them on the project GRM.

3. Describe any potential alternatives (if relevant) considered to help avoid or minimize adverse impacts. See point 2 above.

4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described.

The World Bank RESTRUCTURING ISDS GZ-Integrated Cities and Urban Development Project (P150991)

The responsibility to oversee the safeguards compliance of the project will remain with the MDLF. This implementing agency has a long history with the Bank implementing operations of municipal development (e.g., EMSRP, MDP, MDP- 2, MDP-3, LGSIP). MDLF has competent environmental and social staff who are familiar with Bank policies and have a good track record through previous operations. Through MDLF’s role as the safeguards agent, all project-financed activities will be screened for downstream impacts, Terms of Reference of the studies will contain provisions to ensure environmental and social implications are taken into considerations, and any necessary follow-up instruments such as specific ESMPs are prepared. Throughout the project duration, the MDLF will work closely with the MoLG and the beneficiary urban area LGUs to ensure those aspects are adequately addressed.

5. Identify the key stakeholders and describe the mechanism for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The main stakeholders of this project are MoLG and MDLF. This project finances plans/studies, TA and goods, and minor works. The principal beneficiaries include 16 municipalities, 14 VCs, and 8 refugee camps that comprise the targeted urban areas (Nablus, Hebron, Bethlehem, Ramallah areas, and Gaza City); and additional direct beneficiaries include the communities living within the catchment areas of the works activities under the Pilot Projects that will be implemented in the urban areas. Indirect beneficiaries include the extended communities living in these urban areas.

Principles of a Stakeholder Engagement Plan have been designed and shall be followed during all stages of planning, design and implementation of the pilot projects. The purpose of these engagements is to inform the stakeholders of the intention of the pilot projects, ensure that affected communities and potential beneficiaries have input and ownership of the projects, gain other perspectives on the impact and any potential issues with the design of the pilot projects, inform affected people of the project's grievance mechanism and identify and mitigate any additional risks revealed by the consultation. The Stakeholder Engagement Plan principles were also designed and shall be followed for the SESA. Consultations shall be conducted for each pilot project and reflected in the site-specific ESMPs, which will inform the affected businesses and people of the proposed activities and make them aware of the potential impacts of construction activities.

Several public consultation sessions were conducted in October, November and December 2020 for the five targeted urban areas in West Bank and Gaza. For each consultation session, representatives of different institutions were invited, including municipalities, ministries, NGOs for women and disabled people, youth groups and representatives of the local community. During each session, a presentation about the pilot project was given; it included a general overview of the pilot project components, layouts, environmental and social impacts and mitigation measures, as well as grievance redress mechanism (GRM) channels. Consultation meetings were conducted using a blend of traditional and digital outreach. These consultations came at an early stage before the design of the pilot projects in order to reflect public and stakeholder views on the design and receive their feedback and concerns. Within the context of the COVID-19 public health emergency situation, the consultation meetings were conducted in compliance with the the Bank's note on "Public Consultations and Stakeholder Engagement in WB-supported operations when there are constraints on conducting public meetings".

The public consultation sessions discussed the five proposed pilot projects. The main issues discussed by the participants concerned the design criteria, specifically recommendations to include green elements in the design, use high quality materials, and to ensure the compatibility of the design with the needs of vulnerable groups such as the people with disabilities. Stakeholders suggested that the project consider including youth to participate in the pilot activities through voluntary work. It was also noted that the project should increase awareness of the pilot activities and operation of the facilities when completed. Additional public consultation sessions will be carried out during the design of each pilot project.

The World Bank RESTRUCTURING ISDS GZ-Integrated Cities and Urban Development Project (P150991)

Affected people will be able to voice their concerns and submit their grievances through the project's GRM. A GRM manual was prepared and updated to include complaints filing measures to minimize the risk of exposure to COVID- 19 and to receive special kinds of complaints such as accepting GBV and sexual harassment complaints and complaints based on the existing complaints system by using channels and tools in the municipalities. Information about the existence of the GBV grievance mechanism, the GRM manual, and channels to accept and respond to anonymous grievances have been communicated to all stakeholders during the consultation meetings. The LGUs are to ensure the availability of documentation of complaints and responses, timely responses, and a log of all complaints received that includes information on the date received, date of response, type of response, etc. The GRM has not received any complaints to date. It is expected that complaints would likely be received during the implementation stage of the pilot activities.

The Stakeholder Engagement Plan principles and the GRM will be disclosed as part of the project's ESMF on the MDLF and MoLG websites.

DISCLOSURE_TABLE B. DISCLOSURE REQUIREMENTS

ENV_TABLE Environmental Assessment/Audit/Management Plan/Other

Date of receipt by the Bank Date of submission for disclosure 31-Jan-2021 15-Jun-2016 For Category ‘A’ projects, date of distributing the Executive Summary of the EA to the Executive Directors

“In country” Disclosure

Country Date of Disclosure West Bank and Gaza 15-Jun-2016 Comments

COMPLIANCE_TABLE C. COMPLIANCE MONITORING INDICATORS AT THE CORPORATE LEVEL

EA_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes

If yes, then did the Regional Environment Unit or Practice Manager (PM) review Yes and approve the EA report?

The World Bank RESTRUCTURING ISDS GZ-Integrated Cities and Urban Development Project (P150991)

Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes

PDI_TABLE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for Yes disclosure?

Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups Yes and local NGOs?

ALL_TABLE All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been Yes prepared for the implementation of measures related to safeguard policies?

Have costs related to safeguard policy measures been included in the project Yes cost?

Does the Monitoring and Evaluation system of the project include the monitoring Yes of safeguard impacts and measures related to safeguard policies?

Have satisfactory implementation arrangements been agreed with the borrower Yes and the same been adequately reflected in the project legal documents?

III. APPROVALS

Rafeef Abdelrazek Task Team Leader(s) Christopher T. Pablo

Approved By

Safeguards Advisor Gael Gregoire 07-Apr-2021

Practice Manager/Manager Jaafar Sadok Friaa 08-Apr-2021

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