Capacity Development Policy and Strategy for the Water Sector

1.1. Rationale ............................................................................................................................................................. 2

1.2. Purpose Statement ............................................................................................................................................. 2

1.3. Previous Reference ............................................................................................................................................ 3

1.4. About this document.......................................................................................................................................... 3 2. Situation Analysis and Baseline Information .......................................................................... 4

2.1. Introduction to Capacity Development (CD) in the Palestinian water sector ................................................ 4

2.2. Overview of recent and ongoing CD initiatives ................................................................................................ 2

2.3. Capacity Development Gaps ............................................................................................................................. 3

2.3.1. Demand Gaps ...................................................................................................................................... 4

2.3.2. Supply Gaps ........................................................................................................................................ 9

2.3.3. Synthesis of Gap Analysis .................................................................................................................. 9 3. Capacity Development Policy .................................................................................................. 12

3.1. Definition of Capacity Development ................................................................................................................. 12

3.2. Scope of the Policy & Strategy .......................................................................................................................... 12

3.3. Objectives ........................................................................................................................................................... 14

3.4. Guiding Principles ............................................................................................................................................. 14 4. Capacity Development Strategy............................................................................................... 16

4.1. A Capacity Development System for the Water Sector .................................................................................... 16

4.2. Key Strategy Areas of the Capacity Development System ............................................................................... 17 4.2.1. Coordination of Capacity Development in the Water Sector ........................................................... 17

4.2.2. Institutional Capacity Development ................................................................................................. 18

4.2.3. Qualification of Sector Actors ............................................................................................................ 18

4.2.4. Exchange and Sharing of Knowledge ................................................................................................ 19

4.2.5. Capacity Development Support Structures ....................................................................................... 20

4.2.6. Sustaining Quality .............................................................................................................................. 20 5. Implementation and Monitoring ............................................................................................. 22

5.1. Roles and Responsibilities ................................................................................................................................. 22

5.2. Revolving Planning Process .............................................................................................................................. 22

5.3. Implementation Priorities ................................................................................................................................. 23

5.4. Monitoring and Evaluation ............................................................................................................................... 24 Annexes: ..................................................................................................................................... 25 Annex 1: Capacity Development Related Mandates of PWA ................................................................................. 25 Annex 2: Capacity Development Actors of the Palestinian Water Sector ............................................................. 27 Annex 3: Description of Capacity Development Interventions ............................................................................. 32 PwC P a g e | ii PwC P a g e | iii Acronyms ACF Action Against Hunger ACWA Arab Countries Water Utilities Association AECID Spanish Cooperation Agency AFD Agence Française de Développement ARJI Applied Research Institute Jerusalem CD Capacity Development CBO Community-based Organisations CISP International Committee for the Development of People CoP Community of Practice COM Cabinet of Ministers EQA Environmental Quality Authority EU European Union EWASH Emergency Water, Sanitation and Hygiene Group GIZ Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH GIS Geographical Information Systems HR Human Resources ICRC International Committee of the Red Cross ICT Information and Communication Technology INGO International Non-Governmental Organization JICA Japan International Cooperation Agency JSC Joint Service Council JWC Joint Water Council MEDRC Middle East Desalination Research Center MOA Ministry of Agriculture MOH Ministry of Health MoLG Ministry of Local Government MoWA Ministry of Women’s Affairs NWC National Water Company (successor of WBWD) NGO Non-Government Organisation O&M Operation and Maintenance OD Organization Development PENGON Palestinian Environmental NGOS’s Network PNA Palestinian National Authority PWA Palestinian Water Authority PWC PriceWaterhouseCoopers RWU Regional Water Utility TAGI Talal Abu-Ghazaleh & Co. International TPAT Technical, Planning and Advisory Team Project UNDP United Nations Development Programme UNICEF United Nations Children's Fund UNRWA United Nations Relief Works Agency UWSP Union of Water Service Providers WB World Bank WBWD West Bank Water Department WHO Word Health Organisation WSP Water Service Provider WSRC Water Sector Regulatory Council WUA Watewr User’s Association WWTP Wastewater 1 PwC P a g e 1| 1. Introduction

1.1. Rationale Sustainable management of water resources is vital to the Palestinians’ long-term prosperity. Water is essential for human life and the planet and crucial for the development of agriculture and industry, as nearly every sector depends on secure and sustainable access to water. However, this is not readily available as the country is suffering from water scarcity, due to inefficiencies in water management and constraints in water access due to the Israeli occupation. In 2014 the new Water Law was enacted by a decree of the President. The Water Law establishes mandates and responsibilities of key sector institutions including the Palestinian Water Authority, the Water Sector Regulatory Council as well as the National Water Company, Regional Water Utilities and the Water Users Associations that still need to be established. The water law, water policy and water strategy are quite ambitious in that they aim to: 1. Implement legal and administrative reform measures 2. Implement integrated water resources management 3. Improve water supply and wastewater service provision 4. Ensure the coordination and collaboration between the many stakeholder organizations in the implementation and monitoring of the water policy and strategy 5. Achieve efficient management and governance in the water sector It is clear that the capacities of the above mentioned organizations need to be enhanced to implement the water law and achieve the targets set out in the water policy and water strategy, to make effective and efficient use of increased investments, and to maintain the existing and new infrastructure. So far capacity development has happened on a rather ad hoc basis without clear objectives, thorough follow-up or an umbrella organization that coordinates and harmonizes all capacity development efforts (and not just training programmes) to ensure that water sector institutions obtain the capacities they need to fulfil their mandates and responsibilities. The new water law clearly establishes the need for concerted capacity development for the Palestinian water sector. A well-thought through and feasible policy and strategy are a necessary first step to increase the efficiency and effectiveness, sustainability and impact of the capacity development efforts. This policy and strategy title is referred to as the Capacity Development Policy and Strategy for the Water Sector.

1.2. Purpose Statement This document presents a framework for action to develop the capacities of all water sector institutions to fulfil their mandates to achieve fair, effectively and efficiently water supply and sanitation services and sustainable management of water resources in the State of Palestine. Based on the new water law, water policy and water strategy, this framework for action is meant to guide (inter)national water sector stakeholders to develop and implement capacity development activities that contribute to efficient and sustainable performance of the Palestinian water sector. This document further provides a basis to monitor, and regularly update the policy and strategy on capacity development in order to coordinate and ensure complementarity of capacity development efforts. 2 PwC P a g e 2|

1.3. Previous Reference The Capacity Development Policy and Strategy for the Water Sector is in line with the new 2014 Water Law, the 2013 National Water Sector Policy and Strategy and the Strategic Water Resources and Transmission Plan 2017-2022. It builds up on the previous work executed in the TPAT I programme, namely the Introductory Note as well as an Outline for a Capacity Development Policy and Strategy for the water sector.

1.4. About this document The Capacity Development Policy and Strategy for the Water Sector has been structured around the following chapters: Chapter 1: Introduction •Rationale, purpose statement, structure Chapter 2: Situation Analysis and •Exisiting Capacity Development initiatives, actors Baseline Information (demand & supply), existing gaps & challenges Chapter 3: Capacity Development •Definition, goal, specific objectives, principles Policy Chapter 4: Capacity Development •Structured approach on how to achieve specific Strategy objectives including strategy elements and instruments Chapter 5: Implementation and •Roles & Responsibilities, Planning, Implementation, Monitoring Targets and Indicators, Monitoring and Evaluation Additional and more detailed information is provided in the following Annexes: Annex 1: Capacity Development Related Mandates of PWA Annex 2: Capacity Development Actors of the Palestinian Water Sector Annex 3: Description of Capacity Development Interventions 3 PwC P a g e 3| 2. Situation Analysis and Baseline Information

2.1. Introduction to Capacity Development (CD) in the Palestinian water sector Capacity Development Knowledge, competence and well-functioning organizations and institutions are important pillars in any strategy that aims at improving human well-being, public health, poverty reduction, social equity, transparency, accountability and sustainable development. Any investment in infrastructure or any effort to manage natural resources and eco-systems is at risk of failure without a commensurate investment in CD and the subsequent management of the new knowledge generated throughout such an investment process. In other words, weak capacity impedes the proper targeting and absorption of development funds and the sustainable operation and management of feasible investments. Moreover, capacity development is emerging as the single best tool to create transparency and an informed citizenry to combat corruptive and other negative practices that may taint the use of funds expended on behalf of the government and the donor or lending communities. By definition, Capacity Development seen as the process of unleashing, strengthening, creating, adapting and maintaining capacities of individuals and organizations focusing on three different levels:  Developing knowledge and competences of individuals (i.e. the players);  Support the development of organizations and/or systems of organizations (i.e. the teams);  Support changing and strengthening the enabling environment, i.e. institutional framework through formal laws and policies and/or other informal norms which stipulate the limits within which individuals and organizations develop (i.e. the rules of the game). Institutional set-up Different types of organizations plan and implement capacity development interventions. Broadly speaking, a distinction can be made between those organizations that deal with continuing professional development (demand) and those organizations that are specialized in the delivery of education and capacity development services (supply). Continuing Professional Development- Demand side CD functions through continuing professional development can be found both in the government sector and in the non-government sector, the latter also including community based and private sector organizations. While the government sector mainly focuses on ministerial and regulatory functions, also including coordination and financing, the implementation and service delivery functions are being increasingly considered as the domain of both the government sector and the non-governmental sectors, e.g. through Public Private Partnerships and the involvement of civil society. Governmental organizations carry out CD related functions through different organizational units e.g. the Human Resources Departments (for human resources and training), the Research and Development Departments, Awareness Raising and the Internal Audit Departments (for monitoring and quality control of systems and procedures and implementation of business plans). These functions are mostly internally oriented and relate to the performance of their own organization and staff. An exception to this general set-up is the of the PWA organizational structure, which is specifically geared towards the policies, strategies, programs, plans and financing of interventions to 4 PwC P a g e 4| strengthen the water supply and wastewater providers. PWA organizational structure includes General Directorate for CD and a detailed overview of the mandate of PWA and its General Directorate CD is included in the Annex 1. However, government organizations like MOLG, PWA, MOA, EQA, and MOH also perform awareness and outreach functions to inform and empower the general public, women and specific water users on issues like water-wise behavior (water demand and conservation), public health (pollution, sanitation) and environmental protection. Educational Establishments and Capacity Development Service Providers- Supply side On the supply and implementation side, national and international financing organizations partner with the CD service providers, targeting a wide range of stakeholders, ranging from water leaders through formal tertiary education to the general public through informal water education (water literacy). These capacity development service providers include organizations like universities, research institutes, polytechnics, technical colleges, industrial secondary schools, vocational training centers, but also donor organizations, national and international NGOs, UNWRA, community based organizations, and national and international private sector organizations. The table on the next page presents an overview of the various stakeholders and their roles, distinguishing between functions like coordination(C), financing (F), ministerial (M), regulatory (R), infrastructure development (I), water service delivery (S) and capacity development service providers (CD). 5 PwC P a g e 5| Water Sector Water Water Wastewater Irrigation Environment Public Industrial Gender & Education Stakeholders Resources Supply Water & Ecology Health Water Water & Training Palestinian Water Authority C,M,I C,M,I C,M,I C,M C,M C,M C,M C,M C,M Water Sector Regulatory R R R R R R R R R Council National Water Company * S,I S,I S,I S S Regional Water Utilities * S,I S,I S S Water User S,I,C S,I,C Associations*/Service providers’ customers Water Service Providers** S,I S,I S S (Inter) national Water Non- I,CD I,CD I,CD I,CD I,CD I,CD I,CD I,CD I,CD Governmental Organizations Water Programs of Donors F F F F F F F F F Universities, Polytechnics CD CD CD CD CD CD CD CD CD Research Institutes, Industrial Secondary and Vocational Schools Private Sector CD, I CD, I CD, I CD, I CD, I CD, I CD, I CD, I CD, I Municipal Development & C, I C, I C, I C, I C, I C, I C, I C, I C, I Lending Fund Agriculture C,M C,M C,M,I Local Government C,M,I C,M,I Health C,M,I Labour C,M,I,CD Finance and C, F C, F C, F C, F C, F C, F C, F C, F C, F Planning Education M,C,I Women’s Affairs M,C,I National Economy M,C,I Environmental Quality M,C,I Authority C= Coordination F=Financing M=Ministerial R=Regulatory I= Infrastructure Development S=Water Service Delivery CD=Capacity Development * To be established ** To be merged into Regional Water Utilities 1 PwC P a g e 1| In addition to the table above, a more extensive list and description of the main CD actors of the Palestinian water sector is outlined in Annex 2.

2.2. Overview of recent and ongoing CD initiatives The major on-going CD initiatives target different sub sectors of the water sector and have varying approaches and objectives ranging from training centers to pilot projects to desalination research programs. Traditionally, most of the CD initiatives in the Palestinian water sector are attached to a water related program or project. The following list of CD initiatives in the Palestinian water sector does not include project-based CD initiatives but focuses on major organizations or governmental bodies with explicit objectives of developing capacities in the water sector in Palestine. Regional Arab Countries Water Utilities Association (ACWUA) ACWUA is a global center of excellence that partners with water supply and wastewater utilities in the Arab Countries on building capacities within the utilities and on instituting best practices in order for the utilities to achieve their objectives. It provides training programs for water and wastewater utilities at different working levels and covers institutional, managerial, technical and financial topics for water and wastewater utilities. It also runs of the newest initiatives in the region in terms of capacity development in the water sector: a certification program for water operators, which is accredited through the Jordanian Center of Accreditation and Quality Assurance (CAQA). The certification program covers the following areas: Water Treatment, wastewater treatment, water distribution, wastewater collection and utility management. Middle East Desalination Research Center (MEDRC) MEDRC was established to deal with two of the most pressing global and regional grand challenges; water and peace. It is a unique international organization where ten co-equal partners work together on solutions to fresh water scarcity by supporting research, training, knowledge exchange and capacity building. It is the regional hub for desalination with a dedicated Palestinian Training Program to assist the Palestinian Water Authority in its training needs. It has a full range of training programs in reverse osmosis and water management. It is the only high quality specialized desalination training program in the region. Palestine Union of Water Service Providers (UWSP) It conducts training courses for priority areas of their members. The courses are identified through risk assessments and include topics ranging from water meter maintenance to financial auditing and public relations management. The Union is also developing a comprehensive database for training providers. The UWSP has a unique position in terms of facilitation and coordination of the capacity development needs for all of its members. It acts as a platform for knowledge exchange between its members as well as supporting its members in identifying and addressing their key performance gaps. GIZ Water Programme The programme has two main objectives for the period of 2013-2016: To provide support in establishing a regulator to improve the performance capacity of service providers in the water supply and wastewater disposal sectors, and to further improve management skills among a number of water service providers, primarily by supporting providers in applying the new charges and guidelines and by developing plans and capacities to help guarantee secure and reliable supply 2 PwC P a g e 2| and disposal systems. The GIZ is the major financing partner to the UWSP. Japanese International Cooperation Agency (JICA) For the past six years, JICA has been delivering CD trainings mainly in O&M, water supply, and non-revenue water management. They have also delivered select trainings on operation and maintenance of sewer systems. Currently they are developing a pilot project in Jenin, that tackles the capacity development gaps of water service providers specifically dealing with non-revenue water issues: rehabilitation of systems, how to find leakages, improving finances, management, support in institutional building. In parallel they are planning to work with the PWA on planning and policy issues for non-revenue water. The project is to begin in July 2016. If successful, guidelines and manuals will be developed to help scale up the pilot to other WSPs. AfD AFD’s operations aim to improve the public water and sanitation service in the West Bank and Gaza. This involves protecting and developing available water resources for the population and strengthening the institutions in charge of managing this service. They have been working with the PWA on the feasibility of a National Training Center since 2011. La Agencia Española de Cooperación Internacional para el Desarrollo (AECID) Many trainings funded by AECID focused on general, non-technical issues such as training impact assessments, project management & implementation, institutional and organizational audits and decision support systems (DSS). Others focused on non- revenue water, water quality management, and O&M for wastewater treatment plants. The agency is currently working on certification and accreditation programs. Following the example of ACUWA in Jordan, in 2015 they began certifying various stakeholders for utility management, wastewater and water operators. Around 55 Palestinian water sector employees have gone through the certification process for operators of WWTP through funding from AECID. Palestinian Hydrology Group The organization hosts the Palestinian Water Training Institute, an educational centre and space for trainings. Since 2005, it has hosted and conducted various technical training courses in different fields: water systems, wastewater networks and treatment plants, GIS for engineers and technicians in village and municipal councils. Located in Ramallah, the training halls also host a computer lab and a specialized library in water and environment. The PWA has signed a MOU with the Institute and the Ministry of Labour and Ministry of Local Government both coordinate their trainings as well. Civil Servant Council- National School for Management Trainings are given based on based on needs of Civil Servant Employees. The trainings are intended to help qualify mid level employees for high level management positions, most notable the Director General positions. These trainings are for the entire National Authority staff including the water sector.

2.3. Capacity Development Gaps The volume and range of capacity development needs in the water sector is substantial. Due to the new water law, institutional reform will require extra CD efforts to ensure the effective transition and functioning of the new institutional and sectorial bodies. The sector also has to accommodate and accept that even as its regular capacity is increased due to normal efforts, the needs will not correspondingly reduce at least in the short to medium term. Contributory factors to a continuing increase in demand include: an expanding populated geographical areas, advances in technology and the need to improve the sustainable management and water and natural resources especially in the face of climate change. As the coverage and quality of services increases, the public sector will most likely increasingly rely on the private sector for service delivery. This will intensify the need to build skills amongst technicians, and small businesses in the supply chain and actors involved in the use and conservation of water resources. Withdrawal of the public sector to a policy, regulatory and facilitating role and greater reliance put on market and community-based mechanisms will demand better coordination with the private sector and heightened awareness of civil society with regards to the water sector. It will also demand that the public sector becomes increasingly 3 PwC P a g e 3| effective in its regulatory tasks. The main Capacity Development gaps in the Palestinian Water sector have been identified through the following, step-wise approach: 1. Literature review of existing data and reports 2. Semi-structured interviews with key water sector stakeholders 3. Interactive Capacity Development Workshop For the literature review, various reports were used such as the GIZ Training Needs Assessment of Water Supply and Wastewater Service Providers 2005, Birzeit University- Strengthening Linkages Between Science and Policy Making 2014, and the Establishment of a Palestinian Training Centre for Water & Sanitation- Draft Final Report 2011, the Union of Palestinian Water Service Providers Plan of Operation 2016, Final PWA Priority Training Courses and 2013 PWA Training Calendar. The results from the key findings of the interviews with key CD stakeholders in the water sector are visualized in the following word cloud: Figure 1: Key Gaps Identified in semi-structured interviews with key water sector stakeholder The Capacity Development Workshop, which was attended by a wide range of sector stakeholders, involved the discussion, documentation and ranking of key capacity development gaps and potential instruments to address the gaps. Participants were divided into demand and supply side groups depending on the organization or institution they represented in order to discuss the gaps in both areas. The results of this workshop are summarized below. A separate chapter documenting in more detail the exact results is: (WHERE? And how to be linked to this document).

2.3.1. Demand Gaps The key capacity development gaps have been categorized according to three levels: the enabling environment, organizational capacity and human resources capacity. These three levels can be understood as follows:  The enabling environment: Focuses on the overall policy framework in which individuals and organizations operate and interact with the external environment  Organizational capacity: Focuses on the overall organizational performance and functioning capabilities as well as the ability of an organization to adapt to change 4 PwC P a g e 4|  Human resources: Refers to the process of changing attitudes and behavior-imparting knowledge and developing skills while maximizing the benefits of participation, knowledge exchange and ownership The following table illustrates the scope of capacity demand gaps by listing the existing situation, and the desired situation for each of the three levels. 5 PwC P a g e 5| Capacity Dimensions Existing situation Desired situation Capacity Development Gaps areas 2014 water law is enacted, but not All articles of 2014 Water Law are put Need for support for overall Institutional yet in practice into practice Reform process Policy Governance of CD is harmonized with Discrepancy between Laws and Governance of There is a discrepancy between the laws and governance of CD the existing laws Capacity Building There is a notable lack of Systems-Level Coordination is consolidated and well Coordination needs to be consolidated and coordination between key Framework managed between all stakeholders centralized stakeholders Enabling Environment Private sector plays a minor role in Private sector plays a major role in Need for enhancement of the role of the Private Economy supply of CD services delivering CD services sector in the water sector Higher education is too theoretical Missing long term planning and coordination Higher education meets the demand of Education and does not match the needs of the on curriculum of universities and vocational the water sector water sector schools to match the needs of the water sector Lack of sufficient CD support Sufficient CD support structures Support Support structures do not sufficiently match structures (database, libraries, (database, libraries, practical training Structures needs of CD building practical training center) center) Regulatory frameworks are Regulatory framework functioning Regulatory established but are not fully according to mandate and in Need for streamlined coordination between the PWA, Frameworks functioning and streamlined into cooperation with other water sector WSRC and WSP the sector stakeholders 6 PwC P a g e 6| Capacity Dimensions Existing situation Desired situation Capacity Development Gaps areas Some key sector organizations Missing support and support materials All key sector stakeholders are established and not yet established and others (templates for guidelines, roadmaps, by- Strategies have clear and updated strategies according to need to further develop laws etc.) to implement the water sector their mandates strategies reform No systematic sector wide Need for systematic sector wide systems of Continuous peer-to-peer learning and well Systems for systems for exchange and learning established platforms for knowledge exchange exchange and sharing of knowledge Organizational Capacity sharing of No updated, centralized and accessible knowledge Lack of Knowledge Regularly updated Directory of Experts, management system for CD related Management System Information Database, and Archiving knowledge Lack of clear overview of No systematic Capacity Needs Assessments capacity development sector Clear overview of CD water sector needs of the Sector needs Human No incentives to motivate individuals and Resources Insufficient incentives for Organizations and individuals are motivated to organization to invest in capacity Capacity Development invest in CD development No transparent selection Clearly formulated, transparent and Need for development of clear criteria for criteria for employees to attend communicated selection criteria is available for CD programs employees to attend CD programs all employees Accountability No systematic sector wide monitoring and Lack of performance All capacity development interventions are and evaluation of capacity development measurements on supply side being monitored and evaluated Transparency interventions Utilities’ and WSP’s budgets Utilities and other water stakeholders should see Budget Internal budgets need to account for generally do not allocate for CD as an investment and include it in their Frameworks regular CD needs internal CD measures budgets 7 PwC P a g e 7| Dimensions Capacity areas Existing situation Desired situation CD needs / gaps Lack of specific technical and Training calendars are implemented regularly Technical and managerial skill sets are managerial knowledge in on needs based assessments targeting identified lacking various sub-sectors knowledge gaps Explicit knowledge Insufficient educational Institutions of higher education have access to Insufficient financed programs for higher programs (PhDs) in Palestine sufficient financial resources to match the needs education for the water sector of the water sector Individual Capacity Insufficient implicit knowledge Sufficient mechanisms are in place for the Implicit Insufficient implicit knowledge is shared is shared and documented sharing and documentation of implicit Knowledge and documented among sector stakeholders among sector stakeholders knowledge among sector stakeholders Lack of qualification Necessary national qualification programs are No national qualification or certification opportunities for actors in the available programs available water sector Skills / Attitudes No incentives to develop skill Sufficient incentives for development of skills and attitudes in water sector Lack of ability & willingness to learn and attitudes (work ethics) are in place organization Lack of opportunities to Practical Increased opportunities to acquired practical Limited practical and on the job opportunities for acquired practical and on the learning and on the job skills. students and professionals job skills. 8 PwC P a g e 8|

2.3.2. Supply Gaps The supply side of capacity development service providers in the Palestinian Water Sector is diverse and highly fragmented, ranging from universities to private training providers and institutions adjacent to the water sector that provide consulting services and general capacity development support. Capacity development and training providers (as described in Annex 2) are not only plentiful in Palestine, they are generally well qualified compared to regional standards, and yet their ability to supply capacity interventions that directly match the demand gaps in the water sector is limited. Constraints affecting the ability of the supply side from sufficiently meeting the capacity needs of the water sector were identified as follows: 1. Access to information about local availability of suppliers with the right expertise 2. Insufficient knowledge of Capacity Development needs of the Water Sector 3. Gaps in the enabling environment, including: a. Lack of incentives for participation, b. Inadequate policies, c. Lacking necessary CD infrastructure and coordination of CD interventions 4. Low allocation of budgets for capacity development 5. Inadequate follow-up and monitoring of capacity development efforts A clear strategy, coherent priorities and coordination as well as incentives for private sector involvement in capacity development were highlighted as important success factors that need to be fostered by government. As well, qualification criteria that has been developed in the PWA for training providers is not currently implemented, meaning service providers do not have the opportunity to become nationally qualified CD service providers for the sector. There is also no assessment or analysis of the existing local training providers in terms of their qualifications and their ability to effectively match the training gaps of the water sector. This lack of information is a constraint on the supply side’s ability to meet the needs of the water sector. The relationship between supply side and demand side gaps are strongly interlinked, and all of the above mentioned supply side gaps have an alignment with the demand gaps outlined in section 2.4. A more thorough coordination of the demand side gaps will inherently lend itself to resolving many of the major supply side gaps.

2.3.3. Synthesis of Gap Analysis Based on the outcomes of the sector CD needs assessment as outlined in the methodology, the following key areas for action can be derived from the Capacity Development demand and supply gaps: 1. Coordination needs to be consolidated and centralized By far, overall coordination of CD in the water sector was consistently identified as the most important gap affecting the ability of the sector to perform. Due to the large fragmentation of the sector, the myriad stakeholders, and frequently shifting donor priorities, CD gaps are difficult to keep track of and address successfully. There is a lack of overview of the sector needs as well as an overlapping of many water sector CD interventions. The lack of coordination makes it difficult in achieving sufficient levels of sustainability and continuity in the implementation of capacity building for water sector employees. As well, the lack of training indicators on a national level also contributes to fragmentation of CD initiatives in the sector. It was also observed that many water sector stakeholders were unclear about the responsibilities among key decision-making CD stakeholders, most notably the roles and responsibilities of the PWA. 9 PwC P a g e 9| 2.Insufficient institutional capacity development The on-going water sector reform based on the new water law creates a separate, time bound set of CD needs, particularly for those responsible for building up new institutions, and merging or transitioning existing ones. Effective governance of and cooperation between the newly established, merged or transformed institutions is crucial to obtaining the objectives of the new water law. There currently does not exist an assessment of needs or plan on how to support the reform process in terms of capacity development. Although institutional reform was regarded as a medium to low priority gap as it currently does not require extensive support, it will become a high priority gap once the reform process in underway and new institutions such as the National Water Company and Regional Water Utilities are in process of being established, managed, financed and governed. Another issue on the institutional level relates to creating sufficient incentives for organizations to finance internally the necessary CD interventions. There is a tendency for organizations and institutions to rely on external financing for capacity development efforts, or depend on CD interventions that are project based. This situation minimizes the incentives of water sector actors to internalize the costs of needed on-going capacity development. Without the incentive for annual CD allocations on water sector actor’s budgets, sustaining on-going capacity development goals becomes significantly constrained. 3. Educational and qualification opportunities do not meet demand There are 8 institutions of higher education operational in the sector. However most of the courses have very limited opportunities for practical experience leaving graduates without skills required by employers or lacking the ability to start their own business endeavors. There is a need to formalize and standardize technical and vocational education and trainings in such a way that the desired outcome matches the needs of the market. It is increasingly recognized that technical skills also need to be complemented by business development and management skills. There is a definitive need for improved management capacities mainly for WSPs covering a range of areas from software skills, project cycle management, to customer relations, advocacy and financial skills. Other water sector stakeholders such as CSOs, NGOs, cooperatives and smaller governmental organizations such as village councils would also benefit from increased capacities in the same areas. Specific technical skills that were identified as lacking with regards to WSPs related mainly to water supply, O&M, sewerage networks, wastewater and treated wastewater reuse, electrical installation. Qualification of private sector CD service providers is missing. This is necessary to ensure private sector participation in the water sector, a gap that was ranked as one of the highest priorities by the water sector stakeholders. 4. Deficient exchange and sharing of knowledge CD interventions, especially at the individual level have often been channeled through projects, and after the termination of the projects, organizational capacity that was created, then stalled or dissipated. There is no structured sharing of implicit knowledge within the sector, such as a national exchange platform, or community of practice that can increase the sustainability of project-based capacity development outcomes. As well, the practice of exploiting local expertise is underdeveloped. In particular there is a need for capacity that can be built up through internships, job attachment and induction trainings in the water sector. There is also a lack of cross cutting between sectors in terms of knowledge sharing. As identified above, the private sector plays a minor role, which if developed could contribute to resolving not only the capacity gaps but also the overall aims of the sector’s performance. The lack of incentivized peer-to-peer learning, and systematized cross sector exchanges also plays into another identified gap relating to work ethic and attitudes of employees. Willingness to learn, particularly in the senior positions, was identified as lacking and thereby inhibiting performance across the organizational level and individual level. 5. Lack of capacity development support structures According to some stakeholders, the lack of capacity support structures (knowledge platforms, training centers, e-library etc.) is a contributing factor to the gaps in CD. As well, existing training materials that have been developed in the sector are dispersed and not easily traced. Rapid changes and advancements in information technology, software and innovations in physical technologies are hard to capture and the knowledge gaps in capacity development are further increased by a lack consolidated and easily accessible up–to-date information. Knowledge management systems are underdeveloped as well. There is currently no central directory of CD experts and service providers, no coordinated archiving or development of databases that can capture, store and retrieve CD knowledge, improve collaboration or locate other knowledge sources. 10 PwC P a g e 10 | 6. No systematic learning and quality management A sector wide CD needs assessment has never been done for the Palestinian Water Sector. The last comprehensive training needs assessment was completed in 2005 and there are no further updates at the time of writing. There is also a clearly identified need for sector wide monitoring and evaluation of CD interventions. The current lack of the monitoring and evaluation is directly correlated with the need for coordination, but also lends itself to the mismanagement of limited resources, decline in performance and loss of value for money spent. With regards to incentivizing individuals and organizations to invest in CD, the lack of national qualification and certification programs diminishes the motivation not only for internalizing financial investments in CD, but also time and effort. Similarly, the existing selection criteria for participants to attend CD programs are not transparent, and many times, employees do not have access to information about selection criteria. 11 PwC P a g e 11 | 3. Capacity Development Policy

3.1. Definition of Capacity Development Although capacity development is promoted as a key element for sustainable development, there is no uniform definition or the scope of “Capacity Development” in a specific sector. The past decade has witnessed a resurgence of interest in capacity development and a redefinition of the concept. Whilst the traditional view of capacity development was based on technical training and foreign expertise, today’s approach captures the concept in its complexity and entirety. Keeping the mandate and the possible outreach of the PWA in mind, Capacity Development for the Palestinian Water Sector has been defined as follows: Capacity Development is the process of unleashing, strengthening, creating, adapting and maintaining capacities of individuals and organizations focusing on three different levels:  Developing knowledge and competences of individuals (i.e. the players);  Support the development of organizations and/or systems of organizations (i.e. the teams);  Support changing and strengthening the enabling environment, i.e. institutional framework through formal laws and policies and/or other informal norms which stipulate the limits within which individuals and organizations develop (i.e. the rules of the game).

3.2. Scope of the Policy & Strategy To ensure concerted capacity development interventions, it is crucial to define which organisations and individuals are being targeted. Based on the concentric sector model below, the Capacity Development Policy and Strategy for the Water Sector is targeting the following stakeholder groups: Palestinian Water Sector National Universities and PWA A Water B Polytechnics C D CD Directorate Company All other Industrial Secondary PWA Directorates Water Users & Vocational Schools Associations Research Cabinet of Water Sector Regulatory Centers Ministers Regional Water Utilities CD Service Council (Water Service Providers) Providers Consulting Irrigation Companies Ministry of Need for alignment Water NGOs (Cooperatives) Industry National during transition period Private Sector Customers Economy Water Programs Private Businesses / Water Union of Ministry of of Donors Customers Start-Ups Service Providers Women Affairs Municipalities Internat. Water Service Ministry of Ministry of Finance Ministry of INGOs Providers Health & Planning Local Gov‘t Ministry of Ministry of Education Agriculture Ministry of Multilateral and EQA Labor other Donors Municipal Development and Lending Fund Figure 2 – Key stakeholders in the Palestinian Water Sector 12 PwC P a g e 12 | A: Palestinian Water Authority (PWA) Based on the new 2014 Water Law (Article 8) the Palestinian Water Authority (PWA) is responsible for “the development of plans and programs for capacity building, training and qualification of technical staff working in the water sector and supervising their implementation with the aim of improving the management of water resources, in cooperation and coordination with the relevant authorities” and thus stands in the center of this concentric model. According to the 2016 roles & responsibilities of the PWA, the newly established Capacity Development (CD) Directorate will be responsible to execute this task in close collaboration with the other Directorates of the PWA. B: Newly Created and proposed Water Sector Organizations On December 14th 2009 the Cabinet of Ministers of the Palestinian National Authority endorsed an “Action Plan for Reform” towards the definition and implementation of a comprehensive program of institutional and legislative reform in the Palestinian water sector. A key step in the reform process was the endorsement of the new Water Law through a decree issued by the President of State of on 14 June 2014. The new water law leads to a reorganization of the water sector and a number of organisations are to be established where some are newly established. These are namely the  Water Sector Regulatory Council  National Water Company  Regional Water Utilities (Water Service Providers)  Water Users Associations These institutions will require additional coordinated and concerted efforts for Capacity Development on individual as well as organizational level to function properly and fulfil their mandates in the coming years. This Capacity Development Policy and Strategy therefore puts a high priority on building the capacities of these organisations as they play a pivotal role in the functioning of the whole water sector. C: General Water Sector Organizations On the next level, this policy & strategy targets General Water Sector Organisations active in the Palestinian context. These are educational institutions, private research/consulting/training institutes, Water-specific NGOs, private businesses and start-ups, water users and the donors and development partners (such as WHO, WB, GIZ, AFD, etc.) with their specific water programs. These actors can be either a) recipients (demand), b) suppliers and c) often both recipients and suppliers of Capacity Development interventions. A very close coordination is required with the Water Union of Service Providers. With Union’s training programme reaches out to most Water Service Providers and is an important multiplicator of knowledge, especially in the due course of the sector reform. D: Further Authorities and Organisations with an Influence on the Water Sector On the outermost circle there are Further Authorities and Organizations which influence the water sector in Palestine. In the first place, these are Authorities with water-related components in their current functions such as the Ministry of Agriculture, the Ministry of Local Government and Municipalities who need to be duly considered and consulted during the transition period towards the new water sector architecture to ensure effective capacity development efforts. Further a range of other Ministries, national and international organisations (INGOs, Multilateral Donors, etc.) influence the water sector in Palestine. Although it is crucial that the coordination and cooperation within this last circle of actors is being implemented thoroughly, these stakeholders are not seen as the main target group of recipients of water sector Capacity Development interventions. However, those actors may still play an important role as suppliers of Capacity Development for the water sector, e.g. for trainings that are strengthening management and software capacities such as project management skills, excel, communication or facilitation of meetings. In the due process of the water sector reform, a very close coordination and cooperation regarding Capacity Development is required with the Ministry of Local Government (MoLG) and the respective municipalities, as there are many links and a high potential to use synergies in the clustering of the existing Water Service Providers to the Regional Water Utilities. A very close coordination is also required with the Ministry of Agriculture, as well as the Environmental Quality Authority. 13 PwC P a g e 13 |

3.3. Objectives The overall goal of the capacity development policy has been defined as: To achieve effective, efficient and sustainable performance of water sector institutions to successfully implement the water policy and strategy 2013-32 in line with the water law. Through achieving the following specific objectives: 1. Ensure coordinated and complementary capacity development efforts 2. Support organizational development of sector institutions in line with the objectives of the sector reform 3. Enable individuals working within water sector institutions to develop required capacities to work effectively and address their weaknesses 4. Enable sector stakeholders to access and use existing knowledge, relevant information and resources effectively 5. Develop practical knowledge and competencies to address existing and emerging water sector challenges (for example regarding negotiation with JWC) 6. Facilitate a learning culture within sector institutions that acknowledges failures and successes and enhance water management

3.4. Guiding Principles This policy builds on the realization that capacity development in the water sector needs to be supported throughout all levels of leadership. The following principles are meant to provide guidance for related decisions and the implementation of this strategy: Openness to learn – A culture of openness, interest and appreciation of learning during daily work and as a basis for specific capacity development interventions should be fostered as a basis to enhance capacity successfully. Output and performance orientation – Capacity development efforts should be performance oriented and not focused on inputs and outputs. Efforts should respond to explicit performance challenges and catalyse and take advantage of opportunities for improving performance. A responsibility of all – The development of required skills needs to be considered a common as well as an individual duty of all water sector professionals and individual efforts to grow professionally should be encouraged and supported wherever possible Value for money – The added value of capacity development efforts should be assessed against its direct and indirect costs. Whether benefits outweigh the costs should determine if the effort is justified. Participation - The development, updating and implementation of capacity development efforts should be informed foremost through a bottom-up approach and by interacting with those at central and local level, both within government and with civil society and the private sector. Complementarity – Capacity development efforts should consider the complementarity of different sector actors to make the best use of the varied skills and experiences of each. Inclusiveness / Non-discrimination – It should be ensured that both women and men and staff of all employment levels have equal access to capacity development without discrimination of any groups, to ensure capacity development efforts contribute to building a sector where both women and men participate confidently at all levels. 14 PwC P a g e 14 | Trustworthy governance: Planning, decision-making, control mechanisms and sector regulation should aim at building public confidence and legitimacy through high levels of transparency and balanced and fair consideration of stakeholder interests. 15 PwC P a g e 15 | 4. Capacity Development Strategy

4.1. A Capacity Development System for the Water Sector Despite the Israeli Occupation that is keeping the restrictions and obstacles in place, hindering the development and optimization of the water sector, Knowledge and Capacities are in principle available in Palestinian Water sector to achieve the objective of the new water law: To develop and manage the Water Resources in Palestine, to increase their capacity, to improve their quality, to preserve and protect them from pollution and depletion, and to improve the level of water services through the implementation of integrated and sustainable water resources management principles. Compared to other countries, where capacity development efforts have to be developed from scratch, Palestine boasts a substantial foundation of sufficiently developed institutions and high number of human resources investments. Schools and Universities in Palestine produce a high number of trained professionals, on-going training courses for water sector professionals are being offered and implicit (tacit) as well as explicit knowledge amongst the professionals is largely available to unleash, strengthen, create, adapt, and maintain capacities relevant for the sector. Thus, a basic Capacity Development System for the Water Sector already exists to a certain extent, even though the system is still largely informal and not sufficiently coordinated. To be successful, the strategy needs to bear in mind the following points: Framework strategy - The CD strategy is a framework document at the strategic level and not at the detailed planning level. Its purpose is to guide CD planning and to provide a unifying concept to ensure a coherent approach throughout the sector Common approach - A common approach between national authorities and the development partners will be developed in order to avoid parallel, uncoordinated and inconsistent approaches Scope - The CD strategy will be a strategy for the whole sector and will be broad in its consideration of the water sector, also including cross-sectoral environmental and climate change. It also needs to be encompassing in its consideration of stakeholders and include actors outside of government Enabling environment - CD is interpreted broadly. This approach goes beyond the individual level and also considers the organizational level and the wider enabling environment. The strategy looks closely at the connection between CD and consolidation of sector reforms Capacity Development Interventions - A wide range of CD intervention options need to be considered depending on the target (individual, organizational, enabling environment) Technical cooperation - Technical cooperation should be (1) partner owned, (2) demand led and (3) results oriented. Technical cooperation should be closely coordinated to avoid duplication and ensure consistent approaches. A variety of delivery modalities for technical cooperation will be used. Demarcation of this strategy – Capacity Development is a cross-cutting issue. While it is acknowledged that:  Scientific research and studies  Awareness raising campaigns  Internal administration of human resources (HR) of water sector organisations  Internal Capacity Development of the PWA 16 PwC P a g e 16 | contribute to a well-functioning capacity development system for the water sector in Palestine, those elements will not be dealt with in detail by this strategy. For those topics, separate strategies exist or are being developed.

4.2. Key Strategy Areas of the Capacity Development System The executed gap analysis (see chapter 2) unveiled a number of capacity development gaps on individual and organisation level as well as on the level of the enabling environment. The identified gaps relate to the demand as well as to the supply side of capacity development and need to be viewed in an integrated way to tackle the challenges in the Palestinian water sector. To address these key gaps, and to cope with the high demand for additional capacities to implement the water sector reform, a structured, systemic approach is needed to overcome the often uncoordinated interventions driven by donors or other sector players. The existing Capacity Development structures need to be enhanced, coordinated and selectively developed to enhance the performance of the whole sector. An integrated Capacity Development System consisting of a selected number of complementary Capacity Development interventions will lead to the effective utilization of the given resources. The proposed Capacity Development System for the Palestinian Water Sector comprises of the following Key Strategy Areas for action: 1. Coordination of Capacity Development in the Water Sector 2. Institutional Capacity Development 3. Qualification of Sector Actors 4. Exchange and Sharing of Knowledge 5. Capacity Development Support Structures 6. Sustaining Quality

4.2.1. Coordination of Capacity Development in the Water Sector Description A basic Capacity Development System for the Water Sector already exists and a substantial amount of resources are being invested to enhance capacities in the water sector in Palestine. Investments in a better coordination of core sector actors, capacity development initiatives and programmes as well as aligning capacity development interventions with policies, strategies and actions of further authorities and organisations with an influence on the water sector (see chapter 3.2) will result in a far more efficient utilization of the given resources available for Capacity Development in the sector. Coordination efforts need to be given special attention and priority, as the value for money in the given context is highest if executed properly. On one hand, proper coordination will prevent duplication of efforts, initiatives with low or no value for the sector, isolated efforts without a long-term anchorage or scope or initiative and actions that openly contradict the water law and given policies and strategies. On the other hand, concise coordination will allow the bundling of resources and the use of synergies among the core sector stakeholders, but even more with adjacent authorities and organisations, especially regarding functional capacities such as management skills, budgeting & financial management, project management or monitoring. Envisaged Outcome Capacity development efforts of all relevant stakeholders in the Palestinian water sector are effectively coordinated and complementary regarding demand and supply of capacity development. Possible interventions for coordination are: Intervention 1.1 Overall Coordination and Network Management Intervention 1.2 Consultation with Sector Actors Through the Joint Sector Review 17 PwC P a g e 17 |

4.2.2. Institutional Capacity Development Description The on-going water sector reform based on the new water law puts a great challenge on all water sector stakeholders, especially those responsible for building up completely new organizations. It is clear that capacities of these actors need to be enhanced to implement the water law and achieve the targets set out in the water policy and water strategy, to make effective and efficient use of increased investments. In the coming years, the need for additional capacity development interventions will continue to increase before reaching a climax to decrease again slowly, until the sector reform is fully implemented (see graph below). All this comes on top of the “normal” Capacity development demand that is needed to sustain capacities in the sector. In this phase of increasing additional capacity development needs due to the water sector reform, a high priority has to be given to interventions taking care of these needs. Capacity Development Efforts Additional Capacity Development efforts to implement water sector reform Day-to-day on-going Capacity Development efforts to sustain capacities in the sector Before sector Today (2016) Sector reform fully reform implemented Envisaged Outcome All Water Sector Organisations have sufficient organizational capacities to fulfil their mandate according to the new water law. Possible Interventions for Institutional Capacity Development are: Intervention 2.1 Institutional Capacity Development Support Hub Intervention 2.2 Organizational Development Support Intervention 2.3 Budget Allocation for Capacity Development

4.2.3. Qualification of Sector Actors Description Palestinian Universities, Polytechnics, Industrial secondary schools and vocational training schools produce a constant inflow of trained professionals for the water sector. However, this knowledge must be captured and transformed into useful capacities to be able to manage the water sector efficiently and sustainably. Thus, it is important that the water-related curricula of those educational institutes are in line with the needs of the sector. Educational curricula for water engineers, managers, technicians and alike cannot be changed overnight and a long-term perspective is needed in this regard. The expected demand of professionals in the future has to be communicated to the educational institutes well ahead, so they can plan and act accordingly. Learning and acquiring knowledge is a life-long process and is not finished at graduation. Water professionals need to refresh and expand their knowledge base in a number of training days each year to be able to excel in their work. This on-going qualification must have a shorter time horizon than basic education. Providers of trainings need to be able to react swiftly on the current needs of the professionals in the sector. A close and timely coordination and planning of trainings for Water 18 PwC P a g e 18 | Service Providers, but also for professionals from other institutions is needed to guarantee the development of adequate capacities in the sector. Envisaged Outcome Individuals in the water sector regularly participate in Capacity Development activities to work more effectively. Possible Interventions for Qualification of Sector Actors are: Intervention 3.1 Updated Directory of Capacity Development Suppliers Intervention 3.2 Long-term Planning and Coordination with Universities & Schools on Water-specific Education Programmes Intervention 3.3 Consolidated training plan for Water Service Providers and the coordination roles for PWA (CD Directorate) in the micro and implementation levels. Intervention 3.4 Water Business Development and Start-Up Support Intervention 3.5 Consolidated Training Plan for Other Water Sector Stakeholders

4.2.4. Exchange and Sharing of Knowledge Description Knowledge is a mandatory precondition to be able to unleash, strengthen, create, adapt, and maintain capacities relevant for the sector. Knowledge comes in two forms: explicit and implicit (tacit). Explicit knowledge is knowledge that can be readily articulated, codified, accessed and verbalized. It can be easily transmitted to others and can be stored in guidelines, SOPs, textbooks, policies or other media. Implicit knowledge on the other hand is difficult to transfer to another person by means of writing it down or verbalizing it. With implicit knowledge, people are not often aware of the knowledge they possess or how it can be valuable to others. Typical examples of implicit knowledge in the water sector are: how to network successfully, how to manage multi- stakeholder processes or how to run a water management system under the obstacles put in place by the Israeli occupation. A lot of the explicit and all of the implicit knowledge is bound to individual people in the water sector. If knowledge is not exchanged and shared before a person leaves their position in the sector, it is lost for good. Without efficient knowledge sharing and exchange mechanisms in place, rotations and displacement of personnel lead to highly inefficient knowledge management within the sector hampering the development of capacities to run the Palestinian water sector smoothly and efficiently. An integrated capacity development system takes care that knowledge among the water sector actors is shared and exchanged and thus new knowledge is developed. It is important that this goes far beyond classic trainings, where normally a one-way learning process (from teacher to student) predominates. Appropriate interventions, that foster two-way learning are therefore central for a successful capacity development system. Envisaged Outcome Water sector stakeholder exchange and share practical knowledge and competencies to address existing and emerging water sector challenges. Possible Interventions for Exchange and Sharing of Knowledge are: Intervention 4.1 Palestinian Water Knowledge Market Intervention 4.2 Communities of Practice (e.g. for WSPs with specific technical issues or Area C actors) Intervention 4.3 Thematic Networks (e.g. for Private Sector Actors) Intervention 4.4 Incentivize Secondments and Peer-to-Peer Learning 19 PwC P a g e 19 | Intervention 4.5 Annual Palestinian Water Sector Conference & Contribution to International Conferences

4.2.5. Capacity Development Support Structures Description To become explicit, knowledge also needs suitable support structures that can capture existing and newly developed information necessary to enhance the capacities in the sector. Such support structures need to be designed in such a way, that the users can obtain the required information as easy, user friendly and efficient as possible. The rapid development of Information and Communication Technologies (ICT) in the last years has opened a whole new world of opportunities, especially relating the possible outreach through websites, online databases, e- libraries and social media tools. Besides promoting ICT support structures, it has to be carefully assessed whether also physical capacity development support structures are necessary to cater for the different learning approaches of individuals. For example, some individuals may prefer a physical library to a virtual E-library. However, if available resources are limited, they guiding policy principle of output orientation and value for money should be standing in the foreground. Despite the continuing transformation in a knowledge based, service-oriented and more and more virtual society, water stays a physical good transmitted by a physical network satisfying physical needs. Practical knowledge how to built, manage, repair and renew such a technical system require suitable structures where such skill can be developed hands-on. A careful assessment on whether such hands-on learning infrastructure should be provided in a centralised or decentralised way and how in would be managed has to be conducted. Envisaged Outcome Sector stakeholders access and use existing knowledge, relevant information and resources effectively. Possible Interventions of Capacity Development Support Infrastructure are: Intervention 5.1 E-Library Intervention 5.2 Practical (physical) Training Centre for Water and Sanitation Intervention 5.3 Virtual Training Centre for Water and Sanitation Innovations Intervention 5.4 Specific Capacity Development Information Platform

4.2.6. Sustaining Quality Description Last but not least and appropriate interventions that sustain and enhance the quality of interventions are crucial to run an effective Capacity Development System. This sustainment and enhancement of quality applies on all three levels of capacity Development. i.e. individual, organisational and enabling environment. On individual level, appropriate measures need to be taken so individuals develop their capacities appropriately and that the right people are sent to the right trainings. Water Sector Organizations need to develop a culture of learning, where well- monitored/evaluated successes and failures are the starting point not just a learning organization, but a learning sector. On the level of the enabling environment, measures need to be taken to allow for an on-going monitoring of capacity development related performance gaps and needs and to communicate them transparently. Furthermore, clear quality standards through a certification system also incentivize suppliers of capacity development to maintain and enhance the quality level of their programmes. Overall, again the guiding policy principle of output and performance orientation stay in the foreground here. Envisaged Outcome Sector institutions maintain systematically evaluate and learn from experiences, feedback, successes and failures to enhance water management. 20 PwC P a g e 20 | Possible Interventions for Sustaining Quality are: Intervention 6.1 Monitoring and Evaluation of Capacity Development Efforts Intervention 6.2 Selection Criteria for Sustaining Capacity Development for Trainees Intervention 6.3 Every three year Capacity Development Needs Assessment of the Sector with annual updates Intervention 6.4 Certification System Intervention 6.5 Implementation for Qualification for CD Service Providers 21 PwC P a g e 21 | 5. Implementation and Monitoring

5.1. Roles and Responsibilities As this document looks a developing capacities for the whole water sector in Palestine, the overall coordination and the oversight role needs to be executed by the PWA. Once the Capacity Development Policy and Strategy is approved, the newly established Capacity Development Directorate of the Palestinian Water Authority will lead and coordinate the implementation and monitoring of the respective policy and strategy. In a first step, a Capacity Development Action Plan will need to be developed, assigning clear roles, responsibilities, targets and indicators on a realistic time scale. While some of the proposed interventions will be mainly executed by the PWA, other interventions require the joint efforts of several water sector stakeholders. All interventions have a proposed lead agent, that drives the process forward and coordinate the activities with the intended target group. Both, proposed agent as well as the proposed target group are defined for each intervention in detail in Annex 3 and are meant for as a reference for the development of a detailed action plan. The given policy and strategy focuses on Capacity Development of the whole water sector- Individual water sector organizations are encouraged to prepare their own Capacity Development (action) plans, at the level of the organization and of its human resources, on how to implement the policy and strategy (1) within their organization and (2) towards their specific (external) target groups. This also applies to The PWA itself, who also develops an internal capacity development policy and strategy for its own staff and internal processes. Organizational Capacity Development (action) plans, covering a 3-5 year period, should be prepared by the relevant units and persons within the respective organizations. These plans should be approved by the organization itself, endorsed at national level, and updates should be made annually.

5.2. Revolving Planning Process The given Capacity Development Policy and Strategy serves as a guideline to develop capacities in the Palestinian Water Sector from 2017 -2032. The assessed capacity development gaps in the sector and the subsequent participatory prioritization of possible interventions are up-to-date at the time of writing of this document. In the given dynamic environment (on-going sector reform, political insecurities, etc.) those gaps and priorities need to be re-assessed on an annual basis to allow for accurate development of annual action plans to move capacity development interventions step-by-step further, using an appropriate methodology to obtain the required data: 1. Reassessment of Capacity Development Gaps Initially a study of new reports, policies and strategies with a possible influence on the Capacity Development System in the Water Sector needs to be conducted. Each three years a Capacity Development Needs Assessment of the Sector (Intervention 6.3) with annual updates would serve as the key baseline for such a first step. Missing data needs to be collected in individual consultations with relevant stakeholders. Here, the Updated Directory of Capacity Development Suppliers (Intervention 3.1) could speed up the process substantially. Based on this information, a participatory Capacity Development Workshop with all relevant stakeholders from the demand and supply side of Capacity Development needs to be conducted. Here, the existing and newly emerging gaps need to be re-rated. This workshop can be executed as a stand-alone event or can be done in the framework of the Joint Sector Review (Intervention 1.2). 2. Reassessment of Capacity Development Interventions 22 PwC P a g e 22 | Based on the Capacity Development Gaps, the possible CD-Interventions need to be reassessed critically. The general approach follows the same way as the Reassessment of the CD Gaps. If time and resources are short, the workshops on the gaps as well as the interventions can be scheduled in one event. 3. Creation of Annual Capacity Development Action Plans The reassessment of the CD Gaps and Interventions is the base for the creation of Annual Capacity Development Action Plans based on the given CD policy and Strategy. This final step should be executed by the Capacity Development Directorate of the PWA. The review can be done in the framework of the Joint Sector Review (Intervention 1.2) or as a stand-alone event or a virtual consultation.

5.3. Implementation Priorities The prioritization of possible Capacity Development Interventions lead to the following results in the table below. Marked green are interventions, which were regarded having a high priority,, marked yellow are interventions that were regarded to have a medium priority, and in red are interventions that were regarded to have a lower priority compared with the other interventions. Key Strategy Capacity Development Interventions Priority Area Coordination 1.1 Overall Coordination and Network Management High of Capacity Development 1.2 Consultation with Sector Actors Through the Joint Sector Review High Institutional 2.1 Institutional Capacity Development Support Hub Medium Capacity 2.2 Organizational Development Support Medium Development 2.3 Budget Allocation for Capacity Development Medium

3.1 Updated Directory of Capacity Development Suppliers High Long-term Planning and Coordination with Universities & Schools on Water-

3.2 High Qualification specific Education Programmes of Sector 3.3 Consolidated training plan for the Union of Water Service Providers Medium Actors

3.4 Water Business Development and Start-Up Support Medium

3.5 Consolidated Training Plan for Other Water Sector Stakeholders Low

4.1 Palestinian Water Knowledge Market High Communities of Practice (e.g. for WSPs with specific technical issues or Area C

4.2 Medium Exchange & actors) Sharing of 4.3 Thematic Networks (e.g. for Private Sector Actors) Medium Knowledge 4.4 Incentivize Secondments and Peer-to-Peer Learning Medium Annual Palestinian Water Sector Conference & Contribution to International

4.5 High Conferences

5.1 E-Library Medium Capacity Development 5.2 Practical (physical) Training Centre for Water and Sanitation High Support 5.3 Virtual Training Centre for Water and Sanitation Innovations High Structures

5.4 Specific Capacity Development Information Platform High

6.1 Monitoring and Evaluation of Capacity Development Efforts High

6.2 Selection Criteria for sustaining CD for trainees High Sustaining

6.3 Annual Capacity Development Needs Assessment of the Sector Medium Quality

6.4 Certification System Low

6.5 Implementation for Qualification for CD Service Providers Low 23 PwC P a g e 23 |

5.4. Monitoring and Evaluation Effective monitoring and evaluation mechanisms have to be put in place to review the progress and, ultimately, the final results of the CD policy and strategy. Similarly, organizational CD (action) plans, forming part of the national capacity development system, will need proper monitoring and evaluation mechanisms. The PWA is expected to propose the establishment of unified implementation monitoring system for both the policy and strategy implementation and the implementation of the organizational CD (action) plans. The national water policy and strategy has proposed specific monitoring and evaluation arrangements. These are in line with the COM decision of September 2011 that each sector shall establish its own “Sector Strategy Advisory Group”. For the water sector this is still to be established, and will comprise selected representatives as members. This high level group, probably at the level of deputy ministers, will meet at least once per year to review and address the results and problems identified. Hence, it is suggested to set up a special capacity sub-committee under the Sector Strategy Advisory Group, most likely with the PWA as its secretary. This sub-committee will be responsible for the monitoring of the implementation of the CD policy and strategy, also to include the implementation of the organizational CD (action) plans. Based on this given Capacity Development Policy and Strategy, PWA will develop an Action Plan that will guide the implementation process. The action plan will serve as the reference document to monitor progress and will be the baseline for evaluations. The action plan should entail in minimum the following elements to allow for an effective monitoring and evaluation: A: Capacity Development Intervention Description Description of the intended Capacity Development Intervention, including description, purpose and target group as in Annex 3 B: Performance Indicator(s) Clear indicators that define specific objectives based on the purpose of the CD intervention with which the progress and the completion of each Capacity Development Intervention can be measured. C. Timeline & Milestones An agreed timeline by which the intervention should be established and a time period during which CD services should be provided. D: Responsibilities Definition on who will be responsible to implement the proposed Capacity Development Intervention. To establish an efficient monitoring an evaluation system, the following processes should be established: Monitoring: The capacity development directorate of PWA should develop quarterly progress updates, which compile information on the main achievements, events and milestones for all elements of the action plan. The monitoring process should equally be used to identify and document key challenges and envisaged mitigation measures for the implementation of the action plan. All relevant stakeholders of the capacity development strategy should be informed on the progress made and be consulted how to overcome prevailing implementation challenges. Internal evaluation and adjustments: Internal evaluations should be carried out on an annual basis to ensure the adequacy of the action plan to achieve the objectives of the capacity development policy and strategy. For this purpose the capacity development directorate of PWA should facilitate a participatory process to assess if the objectives of the action action plan are being achieved and if they contribute effectively to achieve the objectives of the capacity development policy and strategy. Based on the results of each internal evaluation the needed adjustments to the action plan should be agreed, documented and disseminated. External evaluation: It is suggested that external evaluators implement a mid-term evaluation of the implementation of the capacity development strategy to provide objective feedback for strategic adjustments to the implementation process. 24 PwC P a g e 24 | Annexes:

Annex 1: Capacity Development Related Mandates of PWA 1. Water Law 2014 Article 8 of the Water Law 2014 describes the PWA functions in relation to capacity development in the water sector in the following paragraphs as follows: 1. Develop plans and programs for capacity building and training and qualification of technical personnel working in the water sector to develop water resources management and oversee the implementation in coordination and cooperation with the relevant authorities. 7. Taking measures and developing plans as may be required for the establishment and development of the National Water C ompany and the Regional Water Utilities, in coordination with the relevant authorities. 8. Supervise the arrangement of awareness campaigns in the field of water and sanitation as well as promoting the use of devices that work on saving water in coordination and collaboration with the relevant authorities. 11. Coordinate and supervise scientific research and studies related to water and sanitation and direct this research to find creative and innovative solutions to existing problems and follow-up with the competent authorities. 13. Work on the development and coordination of effective participation in international, technical, regional, bilateral and local cooperation programs in the field of integrated and sustainable management of water resources; holding conferences and seminars and represent Palestine in regional and international meetings. 16. Cooperate with the relevant authorities in creating a climate that is stable and conducive to investments with the aim of encouraging private sector investment in the water sector, and implement required institutional, regulatory and economic reforms to encourage partnership with the private sector in accordance with a regulation issued for that purpose. 19. Institutional capacity building for the management of shared water resources, and work on establishing regional and international cooperation. 2. Water Policy Based on the Water Law, the National Water Policy has further elaborated the issue of capacity development, which has resulted in a number of policy statements which relate to capacity development in the water sector: 8. Encourage community involvement in the various stages of water resource development projects, including public awareness and training campaigns, to create an environment for effective management and ensure an educated public understands their roles and responsibilities in the effective management of water resources. 10. Raise public awareness on water and wastewater issues and increase participation in water sector management, involving them the people in the process of public participation processes and developing their understanding of their rights and role. 39. Ensure the adequate involvement of all stakeholders (from a gender perspective) in water and wastewater programs & projects, to support sustainability in water resources management 3. Water Strategy The National Water Strategy has many references to the need for and the plans to improve the capacities of the water sector organizations and the public at large in matters related to water (awareness). These are described in  The baseline part, chapter 1 (General), Institutional Framework (1.4);  The strategy part, chapter 21 (Institutional Reform): Background (21.1), COM decision on the reform plan (21.2), Institutional structure and function development (21.4); and  The strategy part, chapter 24 (Challenging issues for strategy implementation): Challenges faced by PWA (24.1), Limited capacity of existing service providers to run so many more facilities (24.4), and Enhancing capacities to implement the strategy (24.7). 25 PwC P a g e 25 | 4. Functions and structure of the GD of Capacity Development The detailed functions of PWA’s General Directorate of Capacity Development have been described as follows: 1. Develop and monitor the implementation of legislation, policies and strategies for capacity development in the water sector (existing function, expanded with non-training). 2. Carry out water sector needs assessments through (1) institutional audits, training needs assessments of water sector organizations and (2) awareness needs assessments of politicians, water sector organizations, water users and the public at large (existing function, expanded with non-training). 3. Prepare capacity development plans and obtain financing for capacity development activities in the water sector (existing function, expanded with non-training). 4. Develop water sector capacities through (1) the establishment of the National Water Company and the Regional Water Utilities (in cooperation with MOLG), and (2) the development of generic capacity development tools related to systems and procedures (institutional level) and training (individual level), and awareness raising(*) (new function). 5. Issue qualification certificates and ensure compliance of water related capacity development service providers, e.g. consultancy companies, universities and training institutes, and Non- Governmental Organizations (existing function, expanded with non-training). 6. Monitor and evaluate the implementation of (1) capacity development policies, strategies, (2) capacity development plans and financing, (3) application of generic capacity development tools (including impact assessment), (4) compliance of capacity development service providers against their qualification certificates (existing, expanded with non-training). 7. Manage a framework program that is designed to facilitate the planning, funding, implementation and monitoring of capacity building programs across the Water Sector (new function). 5. Water Authority Strategic Plan 2016-18 Programs and Interventions through which the PWA seeks to implement its strategy and to achieve its goals in the field of Capacity Development: 3.11 Institutional Building and Development 1. Identify developmental needs of the constructed facilities 2. Unification and updating of the automatic systems used in facilities 3.12 HR Capacity Building Program 1. Continuous training of workers 2. Efficient Management 3. Exchange of Expertise and Knowledge 3.13 Private Sector Participation 1. Facilitate and encourage the participation of the private sector 3.14 Institutional development of the PWA 1. Institutional Building program 2. Training and development program 3. Resource development program 4. Communication and liaison program 26 PwC P a g e 26 |

Annex 2: Capacity Development Actors of the Palestinian Water Sector The following is a description of the main actors categorized according to Supply and Demand as well as a brief description about their contributions. Many of these stakeholders may perform both in the supply side and demand side of the water sector, however, below they are categorization according to their current main roles as capacity development stakeholders. Suppliers of Capacity Development Suppliers of capacity development are those stakeholders who support and or deliver human resource interventions to meet the capacity development needs. There are six main categories of suppliers 1. Water NGOs 2. CD Service Providers/Consulting Companies operational in the Water Sector 3. Universities and Polytechnics 4. Industrial Schools and Vocational Training Centers 5. Research Institutes and Programs 1. Water NGOs There are many international and Palestinian NGOs that implement a range of water projects and programs throughout Palestine. The majority focus on targeting vulnerable and marginalized populations, either in Area C, inside the Green Line, East Jerusalem and Gaza. Their contribution to capacity development is more heavily focused on advocacy for water rights, both nationally and internationally, promotion of hygiene and supporting direct service provision. They are listed below alphabetically. Action Against Hunger (ACF)- ACF works mostly in infrastructure in the water sector, targeting vulnerable communities, but does do some advocacy, awareness raising and capacity development as components of their projects. Cesvi- Focuses on awareness raising in water and hygiene as well as developing JSC capacities in Taybe and Ramon villages. International Committee for the Development of People (CISP)- Focuses on increasing awareness, knowledge and practices about hygiene and sanitation as well as supporting the PWA in water provision and providing information, data and technical recommendations. International Committee of the Red Cross (ICRC)- In partnership with the PWA, the ICRC has been working to improve water supply since 2006. Currently it is focusing on supporting the PWA and the Coastal Municipalities Water Utility in Gaza for the O&M of water and wastewater infrastructure. Dan Church Aid- Focuses on hygiene trainings as well as supporting water availability through cistern rehabilitation and construction. Diakonie Katastrophenhilfe- Works on enhancing the resilience of vulnerable communities through improving their capacities to harvest rainwater. GVC- Working in Palestine since 1997, GVC has worked on developing databases and GIS systems for the water sector, implemented awareness and hygiene campaigns, and supported municipalities and JSC with targeted trainings. 27 PwC P a g e 27 | MA’AN Development Centre- An independent Palestinian organization established in 1989, Ma’an has been supporting capacity development in rural areas through cistern construction and rehabilitation efforts. Their main strategy is to enhance water management and encourage environmentally friendly practices across the sector. Oxfam (GB, Novib, Italia, Quebec) – In the water sector, Oxfam focuses mostly on advocacy through its hosting of the EWASH Advocacy Task Force and on hygiene and sanitation promotion in elementary schools. Save the Children- Supports in access to potable water for marginalized communities and supports hygiene promotion. YMCA East Jerusalem- Aside from various water related projects, with regards to capacity development in the water sector, the YMCA works mainly on hygiene promotion and hygiene trainings. 2. CD Service Providers/Consulting Companies operational in the Water Sector There is a plethora of consulting companies that offer a wide range of training services, in managerial, technical and business areas. The following list ones that have previously worked with the PWA and is not exhaustive. General Training and Consulting- Established in 1999, it is based in Ramallah and offers a range of services including research, policy reform, strategic planning, institutional development, private sector participation, business process improvement, capacity building, education and financial management. HeadWay Academy for Training & Development- Based in Ramallah, it is a specialized training center for managerial and technical courses offering English as well. Human Resource Development Institute – Established in 2007, it is based in Ramallah and provides direct consulting services to clients in business and organizational development, monitoring and evaluation, qualitative and quantitative research, and the provision of human resources. 3. Universities and Polytechnics There are eight Palestinian institutes of higher education that have programs, centers or departments dedicated to water sector issues. 2. Birzeit University 3. Palestinian Polytechnic University-Hebron 4. Hebron University 5. Khadoorie University 6. Al Quds University 7. Al Najah University 8. Islamic University -Gaza 9. Al Aqsa University- Gaza 5. Industrial Schools and Vocational Training Centers There are over a dozen vocational and industrial schools across Palestine. The following three are ones that have courses that meet water sector needs such as plumbing, welding and sanitation systems. 1. Qalandia Vocational Training Center 2. Salesian Industrial Secondary School and Vocational Training Center, Bethlehem 28 PwC P a g e 28 | 3. YMCA Vocational Training Center- Jericho 6. Research Institutes and Programs operational in the Water Sector There are many research institutes in Palestine, but only a few focus on issues related to the water sector capacity development. There are also an array of successful research programs that are funded by international governments or agencies and managed by the PWA. Applied Research Institute Jerusalem (ARIJ)- Founded in 1990 it focuses on a range of research topics but primarily in the fields of environment, land, water resources and natural resources management. Depending on the projects that they implement, they also do technical trainings in the fields of wastewater, reuse and decision support systems. The Water And Soil Environmental Research Unit, Bethlehem University- It has an ongoing database on the water quality of the West Bank and Gaza. The unit has also developed a program for water and soil analysis for graduates and others water professionals. “Building Capacity and Institutional Reform for an Integrated Management of Water and Sanitation Service in Rural Communities”. This program funded 22 Masters student’s research in order to develop a database to evaluate current wastewater management in small Palestinian communities and develop a strategic approach and operational manuals for sustainable sanitation services in small communities. As well the research was intended to help understand elements that govern the feasibility of WWTP’s and the adequate reuse of their effluent. “Sustainable Management of Available Water Resources with Innovative Technologies (SMART)”. This research program funded 19 Masters students and 28 Ph.D. students to carry out their research on a wide variety of aspects related to Integrated Water Resource Management in the Lower Jordan Valley. “MEDRC-PWA Center of Excellence Scholarship Program”. This scholarship program supports 10 Master’s level students per funding period to obtain a M.Sc. degree specifically in engineering related to the fields of desalination, environment and water reuse. Demand for Capacity Development Demand for capacity development refers to those demanding, consuming or benefiting from capacity development interventions. The demand side can be divided into three levels 1) Enabling Environment 2) Organizations Level and 3) Individual Level. The actors listed below are categorized according to the types of CD environments they affect, keeping in mind that all actors have individual level CD demands regardless of their main functions or areas of work.  Palestinian Water Authority  Ministry of Agriculture  Ministry of Local Government  Environmental Quality Authority  Ministry of National Economy  Ministry of Women’s Affairs  Ministry of Finance and Planning  Ministry of Health  Cabinet of Ministers  Water Sector Regulatory Council  Joint Service Councils  Municipalities  Village Councils  Water Service Providers  Irrigation Cooperatives  Water Users (NGOs, CBOs, Farmers associations, Industrial users, households) 29 PwC P a g e 29 | Demand and Supply As stated before, actors may have both demand and supply side functions at one time or another. There are a few particular groups that equally contribute to both sides of capacity development. 1. Major Water Programs of Donors/ Financing Partners Many international governments provide financial assistance to the Palestinian Authority, and a significant portion of that goes to support the water sector. Many of these water programs have capacity development components, depending on the aims and policies of each government and the agreements they make with either the Palestinian Authority or the Palestinian Water Authority. Listed below, alphabetically, are the names of the funding and implementing agencies of different governments and a brief description of their contributions to capacity development in the Palestinian Water Sector. Agence Française de Developpement (AFD) - Focuses on building capacities in water supply and sanitation as well as institutional support. See section 2.3 for more details. Austrian Representative Office- Supports the on-going Water Sector Reform process, capacity development in rural communities in wastewater, water supply and water quality, irrigation water capacity development and storm water management. Czech Development Agency- Support began in 2011 with the planning and implementation of a water management system for the PWA. European Union- The EU has been supporting the PWA in wastewater, sanitation and reuse, water governance, water policy and regional cooperation since 2006. Formin Finland- Finland has been supporting the capacity of the PWA to manage projects since 1999. It focuses on institutional development and capacity development of the Joint Service Councils. German Development Cooperation- Since 2006, the German government has been supporting the PWA in developing regulation capacities as well strengthening the technical, managerial and financial capacities of the Water Service Providers. See section 2.3 for further details. Italian Development Cooperation- Focuses on supporting other NGOS and the PWA in water service provision to the most vulnerable in Palestine. Japan International Cooperation Agency (JICA)- Focuses building a new sewerage department in the Jericho Municipality through building capacities in O&M, financial management including setting tariffs and fees, and other technical trainings for the WWTP. See section 2.3 for more details. Kingdom of the Netherlands- Established a long term academic cooperation project between five Palestinian and five Dutch Universities to improve individual, organization and institutional capacity of the Palestinian higher education sector to improve the effectiveness of the Palestinian water sector regarding the development, provision and management of water resources and services. Spanish Cooperation (AECID)- Conducts awareness raising activities to promote safe water management as well as capacity development in reuse of treated wastewater, water resources management, and access to sanitation. It also provides direct institutional support to the PWA. See section 2.3 for more details. Swedish Development Cooperation- Beginning in 1998, Sweden has supported the PWA and the Palestinian Water Sector mostly in Gaza through storm water and wastewater management support. World Bank- The World Bank has funded various Capacity Development projects in the Palestinian Water sector, most notably the “Water Sector Capacity Building Project” from 2011- 17, which is supporting the entire water sector reform process. 30 PwC P a g e 30 | UNDP- Mostly working on improvement of governance, access to services and fostering regional cooperation. Previously the UNDP provided capacity support to the Costal Municipalities’ Water Utility for water supply monitoring. Currently the UNDP focuses on capacity development in wastewater treatment and management. UNICEF- Beginning in the 1980’s, support from UNICEF to capacity development in the Palestinian Water Sector focuses on upgrading databases and information systems in the PWA and the Coastal Municipal Water Utilities in Gaza as well as awareness raising for hygiene. UNRWA- One of the main overall service providers in Palestine, UNRWA is in charge of water quality assurance, vector control, solid waste disposal and sanitation inspections. It focuses only on refugee camp situations. 2) Local Water Organizations: Union of Water Service Providers (UWSP)- The Union was founded in 2014 and so far it has 26 members including the largest water service providers in both the West Bank and Gaza. Together, these members have more than 300,000 customers. It focuses on capacity and institution building of the union members and of the union itself. Palestinian Environmental NGOS’s Network (PENGON)- Focuses mainly on Right to Water campaigns and informing the public both nationally and internationally about Israeli violations of Palestinian rights with regards to water. Palestinian Hydrology Group- Host of the Palestinian Water Training Institute. See section 2.3 for more details. The Emergency Water, Sanitation and Hygiene Group (EWASH)- is a coordination body consisting of 28 international and local Palestinian NGOs as well as UN agencies that coordinates the work in water, sanitation and hygiene sectors in order to share information and avoid duplication and overlapping of projects implemented by all implementing water sector stakeholders. A major component of their work focuses on advocacy for water rights nationally and internationally as well as policy changes that will facilitate access to water and sanitation facilities. 31 PwC P a g e 31 |

Annex 3: Description of Capacity Development Interventions 1. Coordination Interventions 1.1 Overall Coordination and Network Management The overall coordination and network Management of the Capacity Development Directorate of the PWA is the core element of Capacity Development System. The CD Directorate is responsible that a well- functioning Capacity Development System is created and that all relevant actors are included. The Directorate motivates and engages sector actors to Description contribute to the Capacity Development System and acts as the central information nexus regarding capacity development. It also links and connects stakeholders among each other as well as linking relevant information with the right stakeholder groups. The overall coordination is a core activity. To function properly, it needs adequate personal and corresponding financial resources. The overall coordination of the capacity development of the PWA and the entire Palestinian Water sector takes care that the different interventions Purpose and actors are coordinated accordingly and makes sure that the quality of the interventions is sustained and enhanced. Target Group All water sector stakeholders Lead Agent PWA Priority High 1.2 Consultation with Sector Actors Through the Joint Sector Review The coordination efforts as well as monitoring and evaluation results are used to provide a systematic overview of on going capacity development Description efforts to water sector stakeholders. The joint sector review provides a platform to inform relevant stakeholders, align their activities with the capacity development strategy and seek their feedback to ensure that CD needs are prioritized adequately. The capacity development strategy and its implementation should be anchored within and use existing governance mechanisms to ensure Purpose effective coordination with relevant stakeholders and harmonization with other sector policies. A pro-active presentation and enquires during the joint sector review cater to this need. Target Group All relevant sector stakeholders Lead Agent PWA Priority High 32 PwC P a g e 32 | 2. Interventions for Institutional Capacity Development 2.1 Institutional Capacity Development Support Hub The new water law with its encompassing sector reform including the creation or major restructuring of a series of new sector institutions puts a high demand of guidance for this through institutional change process. To support sector organizations in this process, a dedicated hub providing the Description actors with the relevant support material such as guidelines, road maps, information & workshops material, action plans and the like. If further acts the “first point of contact” and connects organizations with relevant experts and resources. To provide water sector organizations with specific and target-oriented Purpose support material on institutional capacity development as well as information on expertise and available resources. Target Group PWA, WSRC, WBWD/NWC, RWUs, WUAs Lead Agent PWA Priority Medium 2.2 Organizational Development Support To ensure a successful transition of key sector institutions organizational development support aims at expanding the knowledge and effectiveness of decision-makers and staff to accomplish more successful organizational change processes and performance in line with the mandates of the 2014 Description water law. A range of interventions ranging from communities of practice for change management, to coaching and mentoring of key decision- makers seeks to support the alignment of organizations with the sector reform and fostering required organizational learning, knowledge management and transformation of organizational norms and values. Sector reform is a change process. To ensure this change process is implemented, as effectively as possible guidance and support should be Purpose provided to manage the resulting changes required inside key sector institutions. Target Group PWA, WSRC, WBWD/NWC, RWUs, WUAs Lead Agent PWA Priority Medium 2.3 Budget Allocation for Capacity Development Successful capacity development interventions need a respective budget. It requires key water sector stakeholders to budget in regular CD needs within their internal budgets. CD interventions going beyond the individual Description organization (i.e. trainings for water service providers) need a clear costs sharing agreements. This process needs to be planned coordinated and enforced among the water sector stakeholders. To successfully implement capacity development interventions, sufficient Purpose financial resources need to be allocated. Target Group PWA, WSRC, WBWD/NWC, RWUs, WUAs Lead Agent PWA Priority Medium 33 PwC P a g e 33 | 3. Qualification of Sector Actors 3.1 Updated Directory of Capacity Development Suppliers A Directory of Capacity Development Suppliers is a comprehensive database that includes all stakeholders able to provide capacity development activities and support. Such a database should include (for each supplier): Description  name and contact information  a description of their expertise and training offer  their rate in the Certification System for training providers (see related intervention) The main aim of this intervention is to facilitate the access to experts and to Purpose maintain the information about the accessible expertise and competences in the region updated. Target Group All water sector actors in demand for capacity development PWA Lead Agent Priority High 3.2 Long-term Planning and Coordination with Universities & Schools on Water- specific Education Programmes Palestinian Universities, Polytechnics, Industrial secondary schools and vocational training centers educate the future water sector professionals. Thus, it is important that the water-related curricula of those educational Description institutes are in line with the needs of the sector. As it takes time to adapt educational curricula for example for water engineers, managers or technicians a long-term perspective is needed in this regard. To communicate the educational institutes the needed capacities in the Purpose sector. so they can adapt their curricula accordingly. Universities, Polytechnics, Industrial Secondary Schools, Vocational Target Group Training Centers Lead Agent PWA Priority High 34 PwC P a g e 34 | 3.3 Consolidated training plan for Water Service Providers A Consolidated Training Plan developed together with the Palestinian Union of Water Service Providers consists of a detailed plan outlining training activities needed to support Water Service Providers to develop the technical and managerial capacities needed to enhance their performance Description and work in line with the water law, the water policy and the water strategy. Courses may cover different aspects, such as project design, project management, technical skills, use of new technologies, human resource management or evaluation and reporting. The main aim of this intervention is to ensure that the personnel and Purpose management of Water Service Providers develop the required capacities for providing effective and reliable water services to the population. Target Group Water Service Providers Lead Agent PWA Priority Medium 3.4 Water Business Development and Start-Up Support Private sector actors play a crucial role in developing innovative products and services for the water sector needs. To make sure that these innovations are in line with the objective of the new water law, private Description sector actors need to be sensitized and incentivized. Businesses and Start- ups with matching products and services can be promoted in business and Start-up competitions, guidance, communication and administrative support. The support program will communicate, facilitate and promote new Purpose businesses and start-ups to address the needs of the water sector Target Group Incubators, Private Sector, Universities, Research Institutes Lead Agent PWA Priority Medium 3.5 Consolidated Training Plan for Other Water Sector Stakeholders A Consolidated Training Plan for Water Sector Stakeholders consists of a detailed plan outlining training activities needed to support the different stakeholders to fulfil their mandate. Such a Training Plan would be designed so that it addresses the main capacity gaps from the different Description actors. Some courses will target a particular actor (or set of actors), while others will address common challenges, such as financial management, management skills or monitoring and evaluation. The training plan is continuously updated according to the demand and needs of the water stakeholders. The main aim of this intervention is to provide a complete training offer in line with the capacity needs of all water stakeholders, and aims at Purpose optimizing the use of resources by means of coordinating capacity development efforts. All implementing water sector actors except the Palestinian Union of Water Target Group Service Providers and its members Lead Agent PWA Priority Low 35 PwC P a g e 35 | 4. Interventions for the Exchange and Sharing of Knowledge 4.1 Palestinian Water Knowledge Market The Palestinian Water Knowledge Market may take place within the Annual Palestinian Water Sector Conference or as a separate event. It is a Description platform where different water organizations present their knowledge resources. Knowledge resources may include: technological innovations, highly trained professionals, scientific advances or state-of-the-art studies. The main aim of this intervention is to foster innovation in the Palestinian Purpose water sector, as well as the spread of knowledge and exchange among water professionals. Target Group All water sector stakeholders Lead Agent PWA Priority High 4.2 Communities of Practice (e.g. for WSPs with specific technical issues or Area C actors) CoPs are learning groups in which stakeholders working in the same field share their knowledge and experiences, discuss and brainstorm around issues that they face in their operations, and jointly develop solutions and strategies to fulfil their mandate in line with the water law, the water policy and the water strategy. Members of CoPs meet 3-6 times a year and have Description between 10-20 members. The discussion is always centred around a problem area that needs to be solved. CoPs exist as long as there is a demand from participants or a problem is needed to be solved. COPs need a good facilitation and documentation, so the created knowledge is captured accordingly. The main aim of this intervention is to unleash, strengthen, create, adapt, and maintain capacities in a very specific field of the sector. It is a two-way learning intervention where participants learn from each other and support Purpose each other in tackling the challenges they face in their daily work. COPs intend to transform implicit knowledge to explicit knowledge readily available for the sector. Closed groups of water sector actors with a common problem. For example  Actors dealing with Israeli obstacles in Area C Target Group  WSPs with specific technical issues  Further COPs upon demand of the sector PWA Lead Agent Priority Medium 36 PwC P a g e 36 | 4.3 Thematic Networks (e.g. for Private Sector Actors) Thematic Networks are working groups on specific themes established in order to create more effective platforms for debate and discussion amongst water sector actors. A typical example in the Water Sector is the EWASH Network. Members in a thematic network participate in joint activities and Description discussions, help each other, and share information. Thematic Networks gather and make use of the collective knowledge and expertise in specific themes. Thematic Networks are not necessarily centred around a given problem and are more open than COPs. A thematic network may contain 20-40 members. The main aim of this intervention is to help the stakeholders in the Purpose Palestinian water sector in the exchange of knowledge and to foster collaborations among actors in the sector. Thematically oriented open groups of water sector stakeholders. For example:  EWASH (existing) Target Group  Private Water Businesses Network  Network of Innovative Water Start-Ups of Palestine  Other Networks on demand PWA Lead Agent Priority Medium 4.4 Incentivize Secondments and Peer-to-Peer Learning Secondment and peer-to-peer learning consist of the promotion of exchange opportunities among water sector organizations. This frequently Description involves the exchange of a professional from one organization to another in order to learn by one-to-one training on the job site. This can be done by simple observation or by a more practical approach. The main aim of this intervention is to foster the spread of practical Purpose knowledge, especially of implicit knowledge, allowing the whole water sector to speed up progress. Mainly PWA, WBWD/NWC, WSPs/RWUs, WUAs, Cooperatives, Water Target Group NGOs. PWA Lead Agent Priority Medium 37 PwC P a g e 37 | 4.5 Annual Palestinian Water Sector Conference & Contribution to International Conferences An Annual Palestinian Water Sector Conference is the main event every year in which all water stakeholders gather and share their main progresses and challenges during the year. It constitutes an ideal opportunity for strengthening collaborations and t0 exchange knowledge and ideas among sector actors and institutions. Participants shared their annual reports and Description update each other in the future strategies. Besides organising a domestic water conference, also contributions to international conferences need to be planned and coordinated, so a optimal sharing of knowledge and exchange in the international scene can be ensured. The main aim of this intervention is to strengthen relations among water sector actors, promote collaborations, and provide every relevant Purpose stakeholder with update information on the current state of the water sector. Target Group All water sector stakeholders PWA Lead Agent Priority High 5. Capacity Development Support Structures 5.1 E-Library The E-library on the PWA website is a comprehensive database that includes all relevant documents for the water sector, such as: water-related Description laws, policies and strategies; all relevant reports from stakeholders, interventions and events in the water sector; a directory of key institutions and stakeholders; links to literature and websites of interest, etc. The main aim of E-library is provide an easy access to all relevant documentation for water sector actors and institutions. The information in Purpose the E-library is also carefully verified so it constitutes a reliable source of information for the sector. Target Group All water sector actors Lead Agent PWA Priority Medium 5.2 Practical (physical) Training Centre for Water and Sanitation The Palestinian Training Centre for Water and Sanitation is a centralised physical training centre catering for the training needs of Water Service Providers and other sector stakeholders. The training centre can serve as a Description physical knowledge hub concentrating training activities in one location in Palestine. Especially for hands-on and practical trainings, a centre with the respective equipment, workshops and labs (for water testing, pipe fitting etc.) the training centre can fill a much needed gap. To provide the infrastructure especially for hands-on and technical Purpose trainings. Mainly WSPs and RWU; partly also other implementing agencies (NGOs; Target Group Private Businesses). 38 PwC P a g e 38 | Lead Agent PWA Priority High 5.3 Virtual Training Centre for Water and Sanitation Innovations A virtual training centre for water and sanitation innovations is a regularly updated electronic platform where all relevant materials regarding needed Description trainings in water and sanitation is located. The virtual training centre allows for materials and innovations to be updated more frequently than a physical centre. Purpose To provide a virtual training centre for innovations in water and sanitation Mainly WSPs and RWU; partly also other implementing agencies (NGOs; Target Group Private Businesses). Lead Agent PWA Priority High 5.4 Specific Capacity Development Information Platform The Capacity Development Information Platform is a dedicated electronic platform (website, database, facebook page) where all materials, events, efforts, programs and initiatives regarding Capacity Development in the Description Palestinian Water Sector is hosted and regularly updated. Alternatively, it may also be a sub-section of the E-library. This platform can be linked with thematic groups and a main tool in the overall coordination for the sector. To provide water sector organizations with specific and target-oriented Purpose support material on capacity development in the water sector in general as well as information on expertise and available resources. Target Group All water sector actors with capacity development needs Lead Agent PWA Priority High 6. Interventions for Sustaining Quality 6.1 Monitoring and Evaluation of Capacity Development Efforts Monitoring and evaluation (M&E) is a process that helps improve performance and achieve the stated objectives of the capacity development strategy. Its goal is to improve current and future management of outputs, Description outcomes and impact. At the same time M&E requires consultations with sector stakeholders to collect information and generate updates, which in turn contributes to knowledge management and better coordination. To ensure effective implementation of the capacity development strategy Purpose and contribute to continuous improvement of capacity development efforts systematic information and analysis of progress is a pre-requisite. Target Group TBD based on the consensus of the Joint Sector Review Lead Agent PWA Priority High 39 PwC P a g e 39 | 6.2 Selection Criteria for sustaining CD for trainees Utilizing clear, transparent selection criteria helps to ensure the sustainability of CD interventions for trainees. The selection criteria Description should help address the issues of continuity with training schedules for trainees, reducing the risk that CD investments will not fulfil their intended outcomes. To ensure individual CD interventions are streamlined and outcome- Purpose oriented Target Group All water sector actors with capacity development needs Lead Agent PWA Priority High 6.3 Every three year Capacity Development Needs Assessment of the Sector (with Annual Updates) A Capacity Development Needs Assessment is an analysis of the needs of the different water sector stakeholders regarding capacity development. It is important to perform such an analysis every three years with annual updates, since the needs and demands for capacity development change Description over time as organizations grow and evolve, and individuals progress in their knowledge or new staff is recruited. This needs assessment is the basis for the update of the training plans and the capacity development strategy. The main aim of this intervention is to maintain the training plans and the Purpose capacity development strategy updated and in line with the needs and demands of the water sector. Target Group All relevant sector stakeholders Lead Agent PWA Priority Medium 6.4 Certification System A Certification System for training providers is the process of determining Description to what extend each of the training providers are competent to provide training services and comply with the minimum quality standards. The main aim of a Certification System for training providers is to provide Purpose a reliable indicator of the quality of the capacity development services offered. Target Group All training providers Lead Agent PWA Priority Low 40 PwC P a g e 40 | 6.5 Implementation for Qualification for CD Service Providers Qualifying CD Service Providers is the process of determining to what Description extent each of the service providers are competent to provide CD interventions and comply with the minimum quality standards. The purpose of qualifying the CD service providers is to provide a reliable Purpose set of service providers for the water sector from which all water sector stakeholders can benefit Target Group CD Service Providers Lead Agent PWA Priority Low 41 PwC P a g e 41 |