84658
GPOBA CONCEPT NOTE
Project Name
Sector
Location
Applicant
Task Team Leader
Funding Request
Date
GPOBA Pilot Solid Waste Management Project (GPOBA-PSWMP)
Solid Waste Management
Southern Region, West Bank
The Palestinian Authority represented by the Joint Services Council for
Hebron and Bethlehem
Ibrahim Dajani, World Bank TTL
Carrie Farley, IFC Investment Officer (TTL for IFC project)
US$ 8 million for subsidies, $250,000 for independent verification (IVA) (W3)
July 11, 2012
I. SUMMARY
Unsanitary waste collection and disposal in unregulated dumpsites in the West Bank and Gaza area
directly affect residents, presenting serious public health and environmental hazards. These hazards
particularly impact the poor, as 34% of total West Bank waste originate from Hebron and Bethlehem, the
two poorest Governorates in the southern part of the West Bank. Following the successful northern West
Bank solid waste management project, the World Bank, in collaboration with the European Union (EU)
and other donors, is supporting the Palestinian Authority (PA) and its Joint Services Council for Hebron
and Bethlehem (JSC-H&B) through the Southern West Bank Solid Waste Management Project
(SWBSWMP - P105404). This project aims to provide efficient, socially acceptable, and environmentally
friendly SWM services through (i) strengthening the JSC-H&B administrative and technical capacity; (ii)
the provision of a sanitary landfill in Al Minya; and (iii) carrying out a public awareness campaign to
promote waste minimization, resource recovery and cost recovery of SWM. In parallel, the International
Finance Corporation (IFC) is supporting the JSC-H&B in attracting the private sector through a publicprivate partnership (PPP) for: (i) the operation and maintenance of the planned Al Minya Landfill and
three transfer stations; (ii) the transport service between each transfer station and the Al Minya Landfill;
and, if feasible, (iii) the implementation of recycling/composting activities. The expected completion of
the landfill works is March 2013. In the interim period, as a result of the closing of the 17 existing illegal
dumpsites, municipal waste is re-routed to a regional dumpsite in Yatta, south of Hebron Municipality.
An OBA pilot is proposed to help improve the end-service for residents who are not able to afford full
cost recovery fees in Southern West Bank, and to tackle the main problems faced by municipalities in
managing their solid waste management (SWM) system, namely (a) high inefficiencies linked to internal
costs of primary waste collection (e.g. excess workers, inadequate equipment/routes); and, (b) low fee
collection ratios. Solid waste fees would be charged to households by the municipalities to cover primary
collection, transport to transfer stations, and operations and maintenance of the sanitary landfill, as well as
administrative costs of the landfill operator and JSC-H&B. It is estimated that during the first four years
of the new system, primary collection billing will have to be increased significantly in order to improve
the service. Based on household affordability estimates, such additional burden would initially be
unaffordable for most households and would be equivalent to an annual gap of US$2-2.3 million. It is
therefore proposed to provide an output-based subsidy to JSC-H&B on behalf of the poor of the 33
member municipalities to help cover these payments during the first four years of the operation of the
planned landfill –which would otherwise have to be collected from households.
1
The project area would comprises the 33 municipalities and surrounding villages of Hebron and
Bethlehem Governorates with an estimated total population of 800,000 people, of which around 35% are
poor and where, in some areas, unemployment reaches nearly 40% (see map on page 5).1
The proposed OBA pilot would also complement the broader capacity building support (e.g. planning,
monitoring), including the technical assistance provided to the JSC-H&B and individual municipalities
(e.g. equipment, machines, staff training) to improve operating efficiency. The OBA project would build
on these efforts by providing additional incentive to the JSC-H&B to (i) improve the quality of services,
which would in turn increase consumer willingness to pay, thus making the project financially sustainable
once the OBA subsidies run out, (ii) increase user fee collections and (iii) reduce operating costs.
Project sponsor: The project sponsor is the PA via the JSC-H&B, a joint agency for the municipalities in
the Hebron and Bethlehem Governorates created to address common SWM problems in Southern West
Bank. The JSC-H&B is a legal entity. It was established through a decision by the Minister of Local
Government on July 12, 2007 through the articles of the Local Government Law of 1997. The JSC-H&B
consists of both JSCs of Hebron and JSC of Bethlehem, as well as other municipal JSCs, and will be the
implementing agency. Both the PA and the JSC-H&B are public institutions. JSC-H&B will be directly
responsible for waste collection and/or ensuring that waste collection is efficiently performed by its
member municipalities.
Objective: The objective of the GPOBA subsidy would be to offset the cost of an improved SWM service
for poor households in Southern West Bank, during the first four years of the new landfill operation,
while the primary solid waste collection becomes more efficient.
Outputs: The OBA pilot would have two outputs:
Output 1: Improved access to primary collection service
Output 1 would measure access for poor household to an improved primary waste collection service,
resulting from improved efficiencies (e.g. improvement of vehicles, machines, and staff capacity). For
disbursement purpose, quantifiable targets will be defined for the following generic indicators for
improved service:
a.
b.
c.
d.
Satisfaction of end-users with the service
Cleanliness of the streets
Waste collection according to quality standards
Number of households serviced
Indicators a, b, c and d. would be verified through (i) surveys of statistically representative samples of
households in randomly selected municipalities at an agreed frequency to confirm that households are
satisfied with the quality of the service provided, (ii) visual inspection of streets, (iii) technical indicators
on operation of facilities, equipment and services (e.g. routes, vehicle logs, type of vehicle used, waste
collection schedule/frequency, environmental controls), and (iv) tonnage of waste received at the landfill
and transfer stations, and waste generation rates (currently estimated at 0.69 kg/person/day in Hebron in
0.79 kg/person/day in Bethlehem)2.
Output 2: Improvement in fee collection
This output will be measured through pre-set indicators of improvement in fee collection efficiency,
increase in user fees, and percentage of cost recovery compared with baseline data. Based on the current
collection ratio of 34% of total billing, and evidence from other municipalities that have improved fee
collection substantially following linkages to electricity bills and improvements in ease of payment, fee
collection levels are targeted to improve to the level of 90% over the 4 years of the GPOBA subsidy. The
1
2
Coping with Conflict? Poverty and Inclusion in the West Bank and Gaza, The World Bank, July 29, 2011
SENES Technical Report Draft.
2
GPOBA subsidy will decline in proportion with both the fee collection increase, and the tariff increase as
tentatively indicated in Table 1.
The OBA outputs would be verified on a quarterly basis by an independent verification agent (IVA),
which will in turn trigger the GPOBA subsidy payment. The IVA will recommend payment requests
submitted by JSC-H&B to the Ministry of Finance (MoF), based on an in depth review of whether the
pre-agreed outputs indicators have been satisfied. Quantifiable targets under Output 1and Output 2
categories above that can be verified in quarterly intervals will be defined as a part of the ongoing
technical assistance work funded through the IFC project.3
Targeting: The project targets the poorer part of Southern West Bank, namely Hebron and Bethlehem
Governorates, where poverty rates reached around 35% of the total population in 2010, with 16.2% and
6.7% respectively living under deep poverty resulting in very low affordability levels, which affect the
municipalities’ ability to cover the costs associated with improved service. In addition, Bethlehem and
Hebron Governorates have the highest unemployment rates among the West Bank governorates where it
averages 22.8% and 22.4%, respectively4. Vulnerability of these groups is exacerbated by mobility
restrictions and poor market access. In this context, and given that the Palestinian Authority social criteria
system is unable to map individual registered social cases to specific location, the project would use
geographical targeting at the governorate level.
Funding structure: The total project cost during the four year period is estimated at US$23.3 million.
The GPOBA subsidy is estimated to contribute approximately US$8 million over this period beginning
around March 2013. The remaining will be paid by household fees, which will be set to cover the cost of
primary collection, transport to transfer stations, operation and maintenance of the sanitary landfill, and
administration of the landfill operator and JSC-H&B. The cost sharing would be on average over four
years as follows: 66% from households; and 34% from GPOBA grant. Both the household fees and the
complementary subsidy from GPOBA will be paid into a Designated OBA Account to the JSC-H&B.
Subsidy level: Preliminary estimates (Table 1) indicate that the current fee would not be enough to cover
costs of primary waste collection or the entire lifecycle cost of the SWM system (including transfer
stations, long-haul transport, landfill operation including renewal and equipment replacement5). Revenue
collected from existing tariff levels and the current average 34% collection rate amount to a total US$1.4
million per year which leaves an annual gap of US$2.0 to US$2.3 million for primary waste collection in
the first four years of the landfill operation. The OBA subsidy would cover a portion of this gap.
Table 1: Financial projections and subsidy estimates for GPOBA subsidy period (US$)
1.
2.
3.
4.
5.
6.
7.
8.
9.
Full SWM system cost
(including waste collections)
Primary collection cost
Private sector SWM cost
(transfer, disposal OpEx/CapEx)
Current user fees (US$)
New household tariff ($/ton)
Household tariff collection rate
Additional user contribution
through increase in tariff and
collection rates
GPOBA subsidy level
% O&M cost recovery
Year 1
6,000,000
Year 2
6,000,000
Year 3
5,650,000
Year 4
5,650,000
Total
23,300,000
%
100%
2,350,000
3,650,000
2,350,000
3,650,000
2,000,000
3,650,000
2,000,000
3,650,000
8,700,000
14,600,000
1,400,000
30
34%
700,000
1,400,000
30
55%
1,900,000
1,400,000
30
75%
3,100,000
1,400,000
30
90%
4,000,000
5,600,000
24%
9,700,000
41%
3,900,000
35%
2,700,000
55%
1,150,000
79%
250,000
95%
8,000,000
66%
35%
Source: IFC Financial Model
3
The proposed PPP contract for the landfill operation will include performance indicators (KPIs) such as tons of waste disposed at the Al Minya
Landfill, and tons of waste transferred from the transfer stations to the Landfill to be verified by a qualified independent technical expert.
4
PCSBS Press Release on Labour Force Survey Results, Labour Force Survey (January-March, 2011) Round (Q1/2011).
5
Estimated at US$19/ton.
3
Note: 5. Current tariff for all solid waste management costs is US$23/ton in Hebron and US$22/ton in Bethlehem (translating
into average monthly household waste collection fee of US$2-6.5 in Hebron and US$2.75-6 in Bethlehem).
Innovation: The innovation of the proposed OBA pilot is the provision of an output-based, targeted
subsidy for waste primary collection performed by municipalities. At the same time, by allocating this
subsidy in a special account, the pilot would be playing an important role in terms of strengthening the
credit worthiness of the JSC-H&B, thus enabling private sector participation, which would in turn
contribute to the long-term sustainability of the SWM system.
Sustainability: The four year period is estimated to be sufficient to allow the JSC-H&B to achieve
improvements in (i) cost recovering tariff through/implementation of tariff increases, and (ii) installing a
mechanism to better collect solid waste fees which will make the system financially sustainable.
Improving collection rates will in turn involve a significant upfront increase in service quality
accompanied by a gradual increase in household contribution towards cost recovery. In parallel, technical
assistance would be provided by the World Bank and IFC to achieve greater cost recovery level. For
instance, World Bank-funded consultants are looking at the feasibility of pilot projects for waste
collection optimization, waste minimization, and waste recovery for recycling and composting including
the organization of waste pickers (scavengers) into commercially-viable service organizations. IFC will
evaluate the possibility to further bundle primary collection service provision to fewer municipal actors to
achieve economies of scale, and examine varying service levels to rationalize the service being provided
across service areas.
Scaling-up and replication: If the project yields successful results, the scaling up and/or replication to
other poor pockets of the West Bank and in Gaza, as well as for other municipal infrastructure sectors
could be envisaged.
Economic cost-benefit: Residents will directly benefit from improved collection of waste from their
house through an improved public health outcome. Surrounding natural resources will benefit from safe
disposal and treatment of waste. A calculation of cost-benefits will be made determined during project
preparation.
Impacts relative to current situation: The main impact from a reduction in the illegal dumping of waste
and increase in the share of waste delivered to the sanitary landfill is improved environmental conditions
for the people living in the surrounding area. This impact will be calculated by (i) the increase in the
number of people with access to improved services; and (ii) the potential reduction in GHG emissions
resulting from the treatment of organic waste compared with the base case of disposal in wild dump sites.
Project duration and anticipated schedule of GPOBA payments: The GPOBA grant is envisaged to be
implemented over a period of four years beginning at the start of Al Minya Landfill operations (March
2013) or earlier. Line 8 of Table 1 above presents the anticipated GPOBA disbursements.
II. SECTOR BACKGROUND
Legally and institutionally, the solid waste sector is regulated by the Ministry of Local Government
(MoLG) as part of their overall responsibility for municipalities, and by the PA Environmental Quality
Authority (EQA). However, MoLG and EQA are still developing their capacity to properly regulate the
sector. The efficient implementation of a SWM service thus mainly depends on the capacity of the
municipalities, which is lacking in most cases. Further, the necessary funds to improve the system are not
generally available. The World Bank has been providing support to the West Bank SWM sector since
year 2000. The first intervention has been in Jenin Governorate with the Zahrat Al Finjan Landfill, which
was successfully constructed in 2009. The World Bank’s second involvement in the area is through the
ongoing SWBSWMP.
4
The current population of the West Bank is estimated at about 2.5 million and generates a solid waste
load of about 1.2 million tons per year (2010)6. The number of unregulated dumpsites range from 190 to
420. The waste load is estimated to be primarily of domestic origin with provisions for commercial waste.
There is no estimate of industrial and medical waste loads or composition, nor any record of how such
waste is disposed. In Southern West Bank, the estimated annual waste generated is about 200,000 tons
(550 tons/day); and municipal waste collection is in the range of 85-95%.7 The estimated average
municipal per capita waste load varies from 0.7 kg/capita/day in the Hebron governorate to about 0.8
kg/capita/day in the Bethlehem governorate (associated with the impact of tourism), and the average
waste density is estimated on the order of 0.6 tons/cubic meter. Municipal waste composition consists on
average of 46% organic, 9% paper and cardboard, 18% plastic, 2% glass, 1% metals and 24% other
materials8. The extent and composition of hazardous waste generated in the West Bank is not known.
The PA has been aggressively addressing SWM issues. Its strategy hinges on three main pillars: (i)
strengthening municipal service delivery capacity by enhancing the management and financial
capabilities of local governments; (ii) encouraging municipalities to establish Joint Services Councils as
regional institutions for the delivery of SWM services to realize economies of scale; and (iii) establishing
three regional sanitary landfill sites to effectively serve the entire West Bank. The first regional landfill,
located in Jenin and serving the Northern region was funded by the World Bank. The second regional
system to service the southern West Bank region is being implemented by JSC-H&B with the support of
the World Bank and IFC.9 The third regional system to service the middle region (Ramallah and nearby
municipalities excluding Jerusalem) is being funded by the German Bank for Development (KfW).
Figure 1: Maps of West Bank
The total annual waste generated in the project area is currently about 200,000 tons (550 tons/day) and is
estimated to grow to 230,000 tons in 2020 and 300,000 tons in 2030. Although waste is mostly residential
and commercial, there is indication that some hazardous waste is also present due to industries such as
tanneries, textiles, paint, manufacturing and food processing, and hospitals.
6
Sweepnet, 2012. www.sweep-net.org
Baseline Data Inventory Report, Feasibility and Social Impact Study for the Southern West Bank Solid Waste Management Program, dated May
10, 2008, by DHV Consultants.
8
SENES Technical Report Draft.
9
The Jericho area is managed separately due to its location in the Jordan Valley depression--about 400 meters below sea level.
7
5
Although waste collection is high (80-95% of the waste is collected), the service itself is inefficient,
which increases the primary collection costs, and disposal is unsanitary. Collection suffers from poor
planning, high operation and maintenance costs associated with excess numbers of workers who are often
hired as part of the social program, inadequate vehicles and bins, and limited financial resources.
Similarly, waste is mainly disposed of at local dumpsites at the edge of towns and villages. These lands
are often privately owned and leased to municipalities at nominal fees. Fee collection, depending on the
adopted collection mechanism and/or the level of enforcement, may reach 100% in some municipalities
or as low as 20% in others (the latter particularly in larger municipalities). The higher percentage is often
found in municipalities with high levels of enforcement by municipalities’ staff or robust collection
mechanisms such as prepaid electricity meters with built-in SWM fees.
The proposed OBA pilot aims to allow for a gradual improvement in primary collection service efficiency
and improved fee collection that will lead to an affordable and sustainable system, in line with the World
Bank Group strategy for the region.
III. PROJECT DESIGN
The GPOBA subsidy will be provided to the JSC-H&B on behalf of the poor of the 33 member
municipalities to help cover the payments due for collection, transfer and disposal services during the first
four years of the operation of the planned landfill. Moreover, GPOBA would strengthen JSC-H&B’s
creditworthiness and enable private sector participation, which would in turn lead to a properly operated
SWM system.
The waste collection would be performed by the municipalities under the supervision of the JSC-H&B.
The Al Minya Landfill and the three transfer stations are expected to be operated by a private operator,
who will be selected through a competitive tender process facilitated by IFC. It is envisaged that the PPP
contract will include specific KPIs (e.g. minimum waste volume guarantee provided to the private
operator), with the JSC-H&B/municipalities will be taking the demand risk --which the GPOBA pilot will
help address.
The GPOBA subsidy is expected to lead to significant quality improvements to precede increases in
household contribution. Also, as waste generation increases, but service efficiency improves, the per-ton
cost is expected to decrease, resulting in improved affordability for households, which when combined
with improvements in fee collection will result in the long-term sustainability of SWM service provision.
IV. DEVELOPMENTAL IMPACT (INCLUDING ECONOMIC COST BENEFIT ANALYSIS)
Impact: The project will contribute to improving the quality of SWM services and environmental
conditions for thousands of households in poor areas in Southern West Bank. In particular, improved
public health conditions will result from the closure of the uncontrolled dumpsites. This impact will be
calculated based on (i) the number of people with access to improved services compared to baseline; and
(ii) a potential reduction in GHG emissions, associated with the more efficient long haul transfer, closure
of the Yatta dumpsite, and the possible implementation of recycling and composting which is being
studied as part of the IFC due diligence process.
Economic Rate of Return: Economic benefits will result from improved SWM service, including sanitary
disposal of waste, which will improve public health and protect the surrounding natural resources. The
ERR will be further determined during project preparation. As regards affordability, based on best
estimates for monthly household wage (US$315)10 and monthly expenditure (US$250 in Hebron, US$230
in Bethlehem), the project proposes a household contribution of US$30 per ton, which is considered
affordable as it remains below the upper limit of the 1.5-2.5% threshold typically used to establish
10
Average daily wage in West Bank was NIS 98.6 in 2008, according to Palestinian Central Bureau of Statistics (PCSBS).
6
affordability for solid waste management11 (see Table 2), although it is on the high end of the
affordability range.
Table 2: Household Affordability for SWM Fee*
Area
No. of
Households
(HH)
Annual HH
Income
(US$)
Proposed
Waste Fee
(US$/ton)
Avg. Annual HH
Waste Fee (US$)
Hebron
94.251
3,000
$30
$51
Governorate
Bethlehem
32,592
2,760
$30
$58
Governorate
Total
126,843
* Based on assumption that a household generates approximately 1.7 tons of waste per year.
Waste Fee
compared to
Annual HH Income
(%)
1.7%
2.1%
The project is estimated to yield a profit margin of 15%, and sensitivity analyses are being conducted to
determine the risk factors that could impact the private operator returns.
V. FUNDING STRUCTURE AND SUBSIDY LEVEL
The total project cost during the four year period is projected to equal US$23.3 million. The GPOBA
subsidy is estimated to contribute approximately US$8 million over this period beginning around March
2013. At the household level, the projected waste fee amounts to US$30 per ton on a monthly basis which
will be covered as follows:


66% from households (average over four years)
34% from GPOBA grant (average over four years)
The fee will be set to cover the cost of primary collection, transport to transfer stations, operation and
maintenance of the sanitary landfill, and administration of the landfill operator and JSC-H&B. The
specific targets (to include service improvement and fee collection rate increase) to be verified
independently and that will trigger the quarterly OBA subsidy disbursement to the JSC-H&B on behalf of
the poor households of the 33 member municipalities, will be defined during the project preparation study
funded by IFC.
Over the four years of project implementation period, the GPOBA payments would be made in four
declining annual tranches as follows (subsidy provided of the total service cost in any particular year):




Year 1: 65% subsidy
Year 2: 45% subsidy
Year 3: 20% subsidy
Year 4: 4% subsidy
Table 3 summarizes project costs and funding structure:
Table 3: Estimated GPOBA Pilot Costs (US$)
Project Year
Year 1
Year 2
Year 3
Year 4
Total
GPOBA
3,900,000
2,700,000
1,150,000
250,000
8,000,000
JSC-H&B
2,100,000
3,300,000
4,500,000
5,400,000
15,300,000
11
Total Cost
6,000,000
6,000,000
5,650,000
5,650,000
23,300,000
Private Sector Participation in Municipal Solid Waste Services in Developing Countries, Sandra Cointreau-Levine. Urban Management
Programme. The World Bank, DC. 1995.
7
In order to achieve the outputs, JSC-H&B will implement a series of measures (inputs), including
outreach and communication with stakeholders, implementing adequate billing procedures, such as
incentivizing staff to perform their billing task, outsourcing the collection to the private sector, or
implementing capacity building programs to train the staff of the municipalities. The JSC-H&B will also
analyze the efficiency of new billing mechanisms such as linking waste fees to the bill of prepaid
electricity meters. Given that fee collection is 34% of the billed amount, resulting in only 22% final cost
recovery,12 a significant improvement in billing and fee collection at the municipal level is needed. The
GPOBA grant intends to help achieve this improvement, so that, at the end of the OBA subsidy,
municipalities are in a position to pay for the full SWM service. Based on the Jenin experience where
revisions in payment mechanisms (through prepaid electricity meters) and enforcement procedures
allowed the municipality to reach 90% cost recovery, it is expected that waste fee cost coverage could
reach a similar level in Southern West Bank. Given the larger number of municipalities participating in
this project, adopting a similar approach is expected to require three to four years to deliver similar
results. In addition, the new tariff system and enforcement procedures for fee collection envisaged by the
new Waste Bylaw being drafted by the National Solid Waste Team13 should support improved cost
recovery.
VI. PROJECT IMPLEMENTATION ARRANGEMENTS
The JSC-H&B and its 33 member municipalities will be responsible for the primary collection of waste in
the project area. Municipalities will be considered the clients of the JSC-H&B and will pay the JSC-H&B
per ton of waste collected, transported and disposed at the Al Minya Landfill. The project will be
managed by the existing Technical Operations Unit (TOU) of the JSC-H&B. The TOU has participated in
the design and construction of the SWM system, is currently closing all illegal and dumpsites and is
overseeing the design of the new sanitary landfill. In addition, the TOU has already developed the
program for the temporary transfer of solid waste to the Yatta dumpsite until the proposed sanitary AlMinya landfill is completed.
Figure 2 describes the envisaged implementing and funds flow arrangements, with GPOBA funds
disbursed through a “Designated OBA Account” opened at the MoF Central Treasury and operated by the
JSC-H&B TOU. As per usual World Bank procedure, the Grant Agreement signatory would be the MoF.
However, an alternative arrangement of having the JSC-H&B (as service provider under the GPOBA
project) as signatory is also being explored. This model has been used in several GPOBA grants that were
provided to a non-sovereign party through the provision of a Ministry of Finance No-Objection Letter
(“Government Information Letter”).
Figure 2: Implementing Arrangements
12
World Bank Project Appraisal Document for the Southern West Bank Solid Waste Management Project, April 21 st, 2009. Average billing
coverage is about 58% of the estimated full cost recovery level.
13
The Solid Waste National Team comprises MoLG, EQA, Ministry of Panning, and other relevant government stakeholders.
8
VII. RISK ASSESSMENT
Table 4 summarizes the risks and mitigation measures to reduce them:
Table 4: Risk and Mitigation Measures
Item
1
2
3
Risk
Demand and willingness to pay risk Beneficiaries may not be willing to pay
for SWM services


Affordability Risk – Risk of
Municipalities not being able to pay JSCH&B for the improved SWM service

Commitment / Implementation Risk Municipalities may not commit to using
the new SWM facilities and instead
continue to use illegal dumpsites



4
Sustainability


Mitigation Measures
Improved SWM service and awareness activities should
increase willingness to pay.
Improved enforcement of fee collection by the JSC-H&B
should reduce this risk.
Improvements in the primary collection and transportation
system to reduce costs.
Improvements in tariff and collection system to increase
the fees collected.
MoLG will apply laws and regulations to prevent illegal
dumping which will be monitored by EQA. The Solid
Waste National Team is currently drafting a Waste
ByLaw to regulate these matters.
Future coordination between JSC-H&B and
municipalities (e.g. purchasing new collection vehicles)
will be ensured to consolidate the collection service under
JSC-H&B who would ultimately perform SWM services.
Recommendation as to what the coordination will entail
will be made under IFC-funded Technical Assistance.
Improved quality of services and reduced operating costs
would increase consumer willingness to pay, thus making
the project financially sustainable once the OBA
subsidies run out.
Effective collection mechanisms (e.g. linking fee to
electricity bills, ease of payment) will be established to
9
5
6
Risk of the JSC-H&B and Municipalities
may not have sufficient capacity to
implement the recommended service and
fee collection improvements

Security situation may deteriorate and
prevent part of the achievement of OBA
targets (particularly related to transport of
waste due to possible movement
restrictions)



ensure targeted 95% cost recovery for both operating
costs and cost of final disposal.
IFC-funded Technical Assistance to develop actionable
plan with buy-in from key stakeholders.
IFC and WB to work with JSC-H&B in obtaining
additional support/TA if necessary during
implementation.
All permits from the Israeli side have been acquired for
both construction and operating activities in Zone C,
which reduces the risks of operation and mobility of staff
in the area, and thus the risk to implementation of SW
service
Clear understanding of typical movement restrictions
during periods of instability will be taken into account
when designing action plans to further reduce potential
impact on project implementation.
VIII. IMPLEMENTATION TIMELINE
The proposed preparation timeline is as follows:
OBA Project Preparation
GPOBA Funding Commitment (PoE)
Grant Agreement Signed
Grant Effectiveness
August-September 2012
November 2012
January 2013
March 2013
The anticipated implementation timeline is March 2013 to January 2017.
VIII.1 Technical Preparation
Technical assistance provided by the World Bank and IFC will be used to strengthen the technical
capacity of the JSC-H&B and municipalities for the waste fee collection mechanism.
VIII.2 Fiduciary and Safeguard Appraisal
The World Bank has worked with the JSC-H&B and its technical unit for the implementation of the
construction works at Al Minya Landfill. The Bank’s SWM environmental safeguard procedures have
been followed for the construction of the landfill, including the preparation of: (i) an Abbreviated
Resettlement Action Plan (ARAP); and (ii) an Environmental and Social Management Plan (ESMP).
Moreover, JSC-H&B has already contracted a qualified social specialist to oversee environmental
safeguards aspects. No reputational concerns have been pinpointed with the entities and team involved.
IFC fiduciary and safeguards will also apply. IFC will ensure that its safeguards will be applied to the
SWM system and project.
Regarding fiduciary aspect, JSC-H&B has in place a financial management system acceptable to the
World Bank and is already applying Bank guidelines for the procurement of works, goods, and consulting
services. The TOU is operational and functioning effectively and to the satisfaction of the World Bank
and is very well respected by other donors as well.
VIII.3 GPOBA Funding Implementation and Disbursement
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A GPOBA Grant Agreement would be signed as soon as possible, as all existing illegal and unsanitary
dumpsites will soon be closed and construction of the Al Minya Landfill is approaching completion
(March 2013). The IFC PPP project could begin as early as March 2013, at which time the GPOBA grant
would need to be effective.
The GPOBA funding structure envisages payment to the JSC-H&B on behalf of the low income
households of the 33 member municipalities. Payments to the JSC-H&B would be made on a quarterly
basis, upon verification that the collection service is being provided satisfactorily in the project area and
the related the pre-agreed indicators.
IX. MONITORING AND TRACKING INDICATORS
Several performance indicators will be identified to monitor the project performance in terms of waste
collection, waste transfer and final disposal, including:

Average frequency of primary service collection per month or week (some areas are only served
infrequently).

Other indicators of service levels TBD

Tons of waste received at Al-Minya Landfill and transfer stations

Waste fee collection rate

Number of people receiving improved SWM services
All indicators will be will refined based on the findings of the IFC-TA work.
Table 6: Indicator Tracking Table
Year (Calendar)
Waste tonnage per
month delivered to
Landfill/Transfer
Stations
Waste Fee
Collection Rate
# of people
benefiting from
improved waste
collection services
Average frequency
of service
provision per
week/month
Grant
Disbursement
(US$)
Baseline
(before
closure of
wild
dumpsites)
Planned
Actual
Planned
Actual
Planned
Actual
2013
2014
200,000
250,000
270,000
35
55
75
95
800,000
840,000
880,000
900,000
4
4
5
6
3,900,000
2,700,000
1,150,000
250,000
22%
Zero
3 times/week
Planned
Actual
260,000
2016
N/A
Planned
Actual
2015
N/A
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