Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: ICR00005007 IMPLEMENTATION COMPLETION AND RESULTS REPORT (TF016302) ON A SMALL GRANT Public Disclosure Authorized IN THE AMOUNT OF US$3.32 MILLION TO THE ABRAHAM PATH INITIATIVE (API) FOR THE ABRAHAM PATH/MASAR IBRAHIM: ECONOMIC DEVELOPMENT ACROSS FRAGILE COMMUNITIES PROJECT Public Disclosure Authorized November 7, 2019 Finance, Competitiveness and Innovation Global Practice Middle East and North Africa Region Public Disclosure Authorized 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. CURRENCY EQUIVALENTS (Exchange Rate Effective November 20th, 2019) Currency Unit = Israeli New Sheqalim US$1 = ILS 3.47 FISCAL YEAR January 1–December 31 ABBREVIATIONS AND ACRONYMS API Abraham Path Initiative DMO Destination Management Organization FCS Fragile and Conflict-affected Situations FM Financial Management GIS Geographic Information System ISR Implementation Status and Results Report M&E Monitoring and Evaluation MIAK Masar Ibrahim al-Khalil MOTA Ministry of Tourism and Antiquities NEPTO Network of Palestinian Experiential Tour Operators NGO Nongovernmental Organization NPV Net Present Value PA Palestinian Authority PDO Project Development Objective SPF State and Peace Building Fund Regional Vice President: Ferid Belhaj Country Director: Kanthan Shankar Regional Director: Najy Benhassine Practice Manager: Jean Pesme Task Team Leader(s): Ali H. Abukumail ICR Main Contributor: Maria Ariano TABLE OF CONTENTS DATA SHEET .......................................................................................................................... 1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 4 A. CONTEXT AT APPRAISAL .........................................................................................................4 B. THE ABRAHAM PATH PROJECT ................................................................................................6 C. THEORY OF CHANGE (RESULTS CHAIN) ....................................................................................9 D. Project Development Objectives (PDOs) ............................................................................... 12 E. KEY EXPECTED OUTCOMES AND OUTCOME INDICATORS ....................................................... 13 F. Project Components.............................................................................................................. 13 G. Significant Changes During Implementation .......................................................................... 16 II. OUTCOME .................................................................................................................... 17 ASSESSMENT OF ACHIEVEMENT OF EACH OBJECTIVE/OUTCOME ............................................... 17 OVERALL OUTCOME RATING ..................................................................................................... 27 OTHER OUTCOMES AND IMPACTS ............................................................................................ 27 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 28 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 29 A. QUALITY OF THE MONITORING AND EVALUATION (M&E)...................................................... 29 B. FIDUCIARY, ENVIRONMENTAL AND SOCIAL COMPLIANCE ...................................................... 30 C. BANK PERFORMANCE ........................................................................................................... 31 D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 32 V. LESSONS LEARNED AND RECOMMENDATIONS .............................................................. 33 ANNEX 1. RESULTS FRAMEWORK ......................................................................................... 35 ANNEX 2. PROJECT COST BY COMPONENT ........................................................................... 45 ANNEX 3. RECIPIENT, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ...... 46 ANNEX 4. SUPPORTING DOCUMENTS (IF ANY) ..................................................................... 59 The World Bank Abraham Path: Economic Development across Fragile Communities (P147235) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name Abraham Path: Economic Development across Fragile P147235 Communities Country Financing Instrument West Bank and Gaza Investment Project Financing Original EA Category Revised EA Category Not Required (C) Not Required (C) Organizations Borrower Implementing Agency Abraham Path Initiative (API) Abraham Path Initiative (API) Project Development Objective (PDO) Original PDO Contribute to job creation and income generation for marginalized rural communities along the Abraham Path in the West Bank, with aparticular focus on women and youth, and to capture lessons from piloting job creation through experiential tourism that could be applied in other FCS settings. Page 1 of 59 The World Bank Abraham Path: Economic Development across Fragile Communities (P147235) FINANCING FINANCE_TBL Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) Donor Financing TF-16302 3,324,008 3,324,008 3,324,008 Total 3,324,008 3,324,008 3,324,008 Total Project Cost 3,324,008 3,324,008 3,324,008 KEY DATES Approval Effectiveness Original Closing Actual Closing 22-Jan-2014 23-Jan-2014 31-Mar-2016 31-Dec-2018 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 13-Jun-2017 2.55 Change in Loan Closing Date(s) 29-Jun-2018 3.12 Change in Loan Closing Date(s) KEY RATINGS Outcome Bank Performance M&E Quality Satisfactory Satisfactory Substantial RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 03-Jun-2014 Satisfactory Satisfactory 0.05 02 16-Jan-2015 Satisfactory Satisfactory 0.47 03 28-Jul-2015 Satisfactory Satisfactory 1.24 04 06-Feb-2016 Satisfactory Satisfactory 1.89 Page 2 of 59 The World Bank Abraham Path: Economic Development across Fragile Communities (P147235) 05 30-Aug-2016 Satisfactory Satisfactory 2.15 06 08-Jun-2017 Satisfactory Satisfactory 2.55 ADM STAFF Role At Approval At ICR Regional Vice President: Inger Andersen Ferid Belhaj Country Director: Steen Lau Jorgensen Kanthan Shankar Director: Loic Chiquier Najy Benhassine Practice Manager: Simon C. Bell Jean Denis Pesme Task Team Leader(s): Ali H. Abukumail Ali H. Abukumail ICR Contributing Author: Maria Ariano Page 3 of 59 The World Bank Abraham Path: Economic Development across Fragile Communities (P147235) I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL 1. Over the past decade, the economy of the West Bank and Gaza, hampered by years of conflict and instability, has remained heavily dependent on foreign aid and the public sector has been the largest employer. In the first half of 2013, the broad economic situation and the fiscal position of the Palestinian Authority (PA) were showing worrying trends, and the overall unemployment rate reached 22 percent. Private investment, hovering at around 15 percent of gross domestic product, was very low by international standards. Thus, the economy of the West Bank and Gaza was not able to generate enough job opportunities and absorb enough new labor market entrants to improve the unemployment situation. 2. In this context, the West Bank had the necessary infrastructure, facilities, and attractions to become a viable and independent tourist destination, but the Palestinian tourism industry was not fully developed across its value chain. More than 2 million foreign tourists visited the West Bank and Gaza in 2010, but the Palestinian hotel industry did not fully benefit from incoming tourism since, on average, tourists spent less than a day in Palestinian cities. About 76 percent of overnight stays were in the Bethlehem area and very unevenly spread throughout the West Bank. Outside the main cities, small communities in rural areas were excluded from mainstream tourism investments and promotion. 3. To improve this situation, in 2010, the Palestinian Ministry of Tourism and Antiquities (MOTA) released a national strategy that aimed to “promote the national image as a safe, hospitable, independent destination and to fully develop the potential of tangible (places/sites) and intangible (experiences) of the West Bank, creating tourism products beyond religious tourism.” Its objectives were to increase the number of visitors, diversify their type, increase the time and money spent in the host communities, and increase the geographical spread throughout the West Bank. The latter element meant to grow tourism beyond the traditional hub of the Bethlehem area and also offer opportunities to rural areas where socioeconomic development lags behind. Thus, the strategy identified other segments of the tourism industry beyond Christian pilgrimages, as potential opportunities, including experiential tourism (see box 1), which could attract domestic and foreign independent travelers. Box 1. Experiential Tourism and Walking Trails Experiential tourism is a combination of adventure and community-oriented tourism. Adventure tourism is an activity seeking the challenges and rewards of adventure in natural surroundings. These tourists are