West Bank and Gaza Emergency Services Support Program Multi-Donor Trust Fund President‘s Office

Emergency Services Support Project – Multi-Donor Trust Fund Public financing became increasingly fragmented leaving the government unable to cover current and recurrent expenses of its institutions, causing further deterioration in the Palestinian people's living conditions. Concerns were deeply expressed by the Office of the President and the donors' community vis- à -vis the serious impact that the situation is leaving on the social-sector. The ESSP-MDTF agreement was the best possible way to maintain the consistency of the basic human services to the people through multi-donor efforts.

MDTF-ESSP: Status of Donor Commitments/ Contributions SectorsStatus Amount (USD) Donor (Pledged Amounts and Actual) Non-earmarkedAA signed August 14, EC (EURO 10 million pledged) Amount paid EUR 8 million Earmarked for drugs and outsourced health services Water and Sanitation, Power AA for GBP 3 million signed August 11, 2006 An amendment to the existing DFID AA for an additional GBP 3 million signed November 3, DFID GBP 6 million Earmarked for drugs and outsourced health services AA signed August 11, Austria EURO 1 million Not earmarked AA for initial NOK 15 million signed November 13, Amended AA for additional contribution of NOK 6,696,711 signed December 21, Norway NOK 21.7 million Not earmarkedAA signed October 18, Sweden SEK 45 million Not earmarkedAA signed October 24, Belgium EURO 2.5 million Not earmarkedDraft signed January 8, Spain EURO 15 million Earmarked for Education SectorAA signed December 21, Swiss Development Cooperation US$ 2 million Not earmarkedAA singed by the Bank on 6 December.3.8 France EUR 3 million 62.0/ 58.0Total Pledged/ Received Other donors, e.g. Germany and Ireland, have expressed interest without reference to any specific amounts. Italy has showed an interest to contribute with EUR 2 million (US$ 2.6 million equivalent). Discussion is still ongoing between the Bank and the donor on the specifics.

MDTF-ESSP Summary of Budget Commitments and Disbursements, As of End February 2007

Health Sector 2007

-Public sector runs 22 Hospitals and 472 primary health care centers covering 5 million Palestinians in Gaza and West Bank. -Funds provided by the ESSP cover 28.8 million, i.e. 50% of non-salary recurrent health budget.

-ESSP has purchased surgical supplies, lab materials, medical disposables and medical gases for the WBG hospitals. -Drug supplies have been partially covered through local tenders. International tender for drugs is in final stages. Spare parts for vital medical equipments such as CT scans & hemodialysis machines. Tenders for these materials are also in final stages.

Delivery of Drugs to Central Drug Stores January 2007

Public hospitals have limited capacity vis-à-vis the increasing number of population In response, about 18,000 patients are treated annually through contracts with 42 non-governmental institutions for services not available in public hospitals. Between Sept - Dec 2006, ESSP covered specialized health care for 2,200 patients and 1,964 delivery cases (USD 1.3 million out of USD6 million allocated). Tertiary Health Care

Education 2007

There are 1,417 public schools (832 basic and 585 secondary) serving 750,000 Student. ESSP supports basic schools supplies, educational aids and materials, furniture and computers for these schools. ESSP also supports basic supplies, equipment and educational materials for 17 vocational secondary schools

School Rehabilitation and Upgrading 1.75 million US dollars are allocated under the ESSP for covering the rehabilitation works of schools in the West Bank and Gaza

Social Services 2007

Social Service Centers and Shelters ESSP supports (USD 260,000) for food and shelter for the residents of shelters and daily care centers to ensure clean and healthy environment for elderly, youth, and handicapped who benefit from the in-house services.

Youth and Women Vocational Training Centers -A total of 1,300 youth of both genders benefit from vocational trainings through its workshops, including aluminum, tailoring, and metal workshops, car maintenance, and carpentry. -ESSP supports purchase of tools, equipment, materials and incremental operating expenses for these centers.

Utility Sector PEA 2007 CMWU PWA

Water Rehabilitation ESSP is contributing to the improving access to safe piped water supply services in West Bank (USD 1.2 million) and to ensure public health safety for the population.

PEA – Power Supplies ESSP supports the operating cost and maintenance of the main utilities in West Bank and Gaza: Gaza Electricity Distribution Company (GEDCO) Jerusalem District Electricity Company (JDECO) Southern Electricity Distribution Company (SELCO) Hebron Power Company (HEPCO) ESSP supports maintenance of the networks to increase the quality of supply to the consumers and reduce to network outage for the benefit of about 780,000 Palestinian people.

Project Management

Enhancing Project Management Following steps have been taken to enhance the project management and the implementation process: Strengthen coordination between the OoP/PCU and the beneficiary sectoral agencies, through weekly meetings, application of strict monitoring mechanism through regular updates of the Procurement Plan, and contract monitoring system at the PCU and line agencies. Apply financial monitoring system to follow up the disbursement process within the Office of President (OOP) and to ensure accuracy of transactions and promptness of payment.

Additional steps taken by OoP/PCU: Recruitment of international procurement consultant to assist in International Competitive Bidding of drugs, and ensure transparency and accountability of the process Recruitment of a national procurement consultant (financed by DfID) to assist PCU in procurement process and ensure quality of bidding documents and procedures. Recruitment of an international health consultant and a Palestinian lawyer to develop advanced procurement and contract management procedures. Enhancing Project Management