Document ofThe World Bank

FOR OFFICIAL USE ONLY

Report No: 83908 – GZ

PROJECT PAPER

FOR

SMALL RETF GRANT

(US$ 2.32 MILLION EQUIVALENT)

TO THE

ABRAHAM PATH INITIATIVE

FOR A

MASAR IBRAHIM/ABRAHAM PATH:

ECONOMIC DEVELOPMENT ACROSS FRAGILE COMMUNITIES PROJECT

January 14, 2014

Finance and Private Sector DevelopmentMiddle East and North Africa Region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

CURRENCY EQUIVALENTS(Exchange Rate Effective January 9th, 2014)

Currency Unit = New Israeli Shekels (NIS)

US$1 = NIS 3.51

FISCAL YEARJanuary 1 – December 31

ABBREVIATIONS AND ACRONYMS

AHLC Ad-hoc Liaison CommitteeAPI Abraham Path InitiativeFCS Fragile and Conflict-Affected SituationsISN Interim Strategy NoteMIAK Masar Ibrahim al-KhalilMOTA Ministry of Tourism and AntiquitiesNEPTO Network for Experimental Palestinian Tour OperatorsNGO Non-Governmental OrganizationPA Palestinian Authority

Regional Vice President: Inger AndersenCountry Director: Steen Lau Jorgensen

Sector Director: Loic ChiquierSector Manager: Simon C. Bell

Task Team Leader: Ali H. Abukumail

WEST BANK GAZA

Masar Ibrahim/Abraham Path: Economic Development across Fragile Communities

Contents

I. STRATEGIC CONTEXT....................................................................................................... 1

A. Country Context.................................................................................................................... 1B. Sectoral and Institutional Context.......................................................................................1C. Higher Level Objectives to which the Project Contributes.................................................4

II. PROJECT DEVELOPMENT OBJECTIVES......................................................................4

A. Project Development Objective (PDO)................................................................................4Project Beneficiaries................................................................................................................. 4PDO Level Results Indicators................................................................................................... 5

III. PROJECT DESCRIPTION................................................................................................... 5

A. Project Components............................................................................................................. 7B. Project Financing................................................................................................................. 9Project Cost and Financing...................................................................................................... 9C. Lessons Learned and Reflected in the Project Design.........................................................9

IV. IMPLEMENTATION........................................................................................................... 11

A. Institutional and Implementation Arrangements................................................................11B. Results Monitoring and Evaluation....................................................................................12C. Sustainability...................................................................................................................... 13

V. KEY RISKS AND MITIGATION MEASURES................................................................13

A. Risk Ratings Summary Table.............................................................................................. 13B. Overall Risk Rating Explanation........................................................................................14

VI. APPRAISAL SUMMARY.................................................................................................... 14

A. Economic Benefits.............................................................................................................. 14B. Financial Management....................................................................................................... 15C. Procurement....................................................................................................................... 15D. Social.................................................................................................................................. 16E. Environment....................................................................................................................... 16

Annexes

Annex 1: Results Framework And Monitoring...................................................................................17Annex 2: Implementation Arrangements............................................................................................. 20Annex 3: List of suggested topics for Action Research Notes.............................................................25Annex 4: Planned Communication Activities......................................................................................27Annex 5: Simplified Operational Risk Assessment Framework (ORAF) for RETF...........................28

DATA SHEETWest Bank and Gaza

Masar Ibrahim/Abraham Path: Economic Development across Fragile CommunitiesSmall RETF Grant Project Paper

Middle East and North AfricaMNSFP

.

Basic InformationDate: January 14, 2014 Sectors: Industry and Trade (other industries; tourism)

Country Director: Steen Lau Jorgensen Themes: Finance and Private Sector Development (60%)Social development/gender/inclusion (20%)Rural Development (20%)

Sector Manager/Director: Simon C. Bell / Loic Chiquier EA Category: C

Project ID: P147235

Instrument: Investment Project Financing

Team Leader(s): Ali H. Abukumail

.

Recipient: Abraham Path Initiative (API)

Executing Agency: Abraham Path Initiative (API)

Contact: Stefan Szepesi Title: Executive Director

Telephone No.: +31 6 81291975 Email: stefan@abrahampath.org.

Project Implementation Period: Start Date: Jan 20, 2014 End Date: September 31, 2015

Expected Effectiveness Date: February 1, 2014

Expected Closing Date: March 31, 2016.

Project Financing Data(US$M)[ ] Loan [ x] Grant [ ] Other

[ ] Credit [ ] Guarantee

For Loans/Credits/OthersTotal Project Cost : US$ 2.32 million Total Bank Financing :

Total Cofinancing : Financing Gap :

.

Financing Source Amount(US$M)BORROWER/RECIPIENT

IBRD

IDA: New

IDA: Recommitted

Others (State and Peace-building Fund) 2.32

Financing Gap

Total 2.32.

i

Expected Disbursements (in USD Million)Fiscal Year 2014 2015 2016

Annual 0.53 1.01 0.78

Cumulative 0.53 1.54 2.32.

Project Development Objective(s)

To contribute to job creation and income generation for marginalized rural communities along the Abraham Path in the West Bank, with a particular focus on women and youth, and to capture lessons from piloting job creation through experiential tourism that could be applied in other FCS settings..

Components Cost (USD Millions)

A. Investment in People and Institutions 0.75

B. Abraham Path Development 0.53

C. Marketing, Business Development, and Communication 0.46

D. Monitoring and Evaluation and Knowledge Dissemination (Action Research) 0.59.

CompliancePolicyDoes the project depart from the CAS in content or in other significant respects? Yes [ ] No [x].

Does the project require any exceptions from Bank policies? Yes [ ] No [x]

Have these been approved by Bank management? Yes [ ] No [ ]

Is approval for any policy exception sought from the Board? Yes [ ] No [x]

Does the project meet the Regional criteria for readiness for implementation? Yes [x] No [ ].

Safeguard Policies Triggered by the Project Yes NoEnvironmental Assessment OP/BP 4.01 No

Natural Habitats OP/BP 4.04 No

Forests OP/BP 4.36 No

Pest Management OP 4.09 No

Physical Cultural Resources OP/BP 4.11 No

Indigenous Peoples OP/BP 4.10 No

Involuntary Resettlement OP/BP 4.12 No

Safety of Dams OP/BP 4.37 No

Projects on International Waters OP/BP 7.50 No

Projects in Disputed Areas OP/BP 7.60 No.

Legal CovenantsName Recurrent Due Date Frequency

Description of Covenant

.

ii

Team CompositionBank Staff

Name Title Specialization Unit

Ali H. Abukumail PSD Specialist Task Team Leader MNSFP

Peter Mousley Lead PSD Specialist Country Sector Coordinator MNSFP

Abdalwahab Khatib PSD Specialist Team Member MNSFP

Nadi Mashni Financial Management Specialist Financial Management MNAFM

Basheer Jaber E T Consultant Procurement MNAPC

Maha Muhammad Bali Program Assistant Administration MNCGZ

Banu Setlur Sr. Environmental Specialist Environmental Safeguard MNSEE

Chaogang Wang Sr. Social Development Specialist Social Safeguard MNSSU

Steve Wan Operations Analyst Operations MNSFP

Mary Koussa Communications Associate Communications MNAEX

Non-Bank Staff

Name Title Office Phone City

.

Locations

Country First Administrative Division

Location Planned Actual Comments

.

iii

I. STRATEGIC CONTEXT

A. Country Context

The economy of the West Bank and Gaza has been hampered by years of conflict and instability and remains dependent on foreign aid and the public sector remains the largest employer. The broad economic situation and the Palestinian Authority’s (PA) fiscal position are showing worrying trends with a financing gap of about US$320 million projected by the end of 2013. The overall unemployment rate reached 22 percent in the first half of 2013. Private investment hovering at around 15 percent of GDP for the past seven years is very low by international standards. Thus, the Palestinian economy has clearly not been able to generate sufficient job opportunities and absorb enough new labor market entrants to improve the unemployment situation. Lack of opportunities in the private sector causes the public sector to be viewed as the employer of last resort as it currently employs 23.6 percent of persons employed in the West Bank and Gaza. 1

B. SECTORAL AND INSTITUTIONAL CONTEXT

1. The West Bank has the necessary infrastructure, facilities and attractions to become a viable and independent tourist destination. However, the Palestinian Tourism industry is not developed fully across the value chain resulting in some leakages of tourism revenue. More than 2 million foreign tourists visited the West Bank and Gaza in 2010. Total overnight stays in Palestinian hotels increased by 40% in 2010 reaching a record high of 1.4 million (including both foreign and domestic overnight stays and staying in East Jerusalem overnights). The Palestinian hotel industry does not fully benefit from incoming tourism, since on average tourists stay less than a day in Palestinian cities. Overnight stays by foreign visitors to the West Bank increased by 51%, however, about 76% of overnight stays were in the Bethlehem area and very unevenly spread throughout the West Bank. Outside the main cities, small communities in rural areas did not benefit from the recent growth, and were excluded from mainstream tourism investments and promotion. Both public and private sectors are investing millions of dollars in developing, restoring and upgrading the industry. Between 2000 and 2009, the private sector invested close to US$300 million into the sector. Hotels, recreational parks and resorts, restaurants, cultural centers, and new transportation fleets were all among the key investments over the past 5 years.2

2. Despite the fact that the number of visitors to the West Bank and Gaza is on the rise, the territory’s share of regional tourism arrivals and revenues remains minimal. West Bank and Gaza offers a mixture of tangible (places/sites) and intangible (experiences). These components revolve around religious, cultural and historical sites coupled with other intangible elements such as Palestinian hospitality and modern culture heritage. Unfortunately, West Bank and Gaza has been unable to fully recognize and/or develop potential tourism products beyond religious tourism. Every natural, historical or cultural site is the basis for a tourism attraction for targeted demand. On the supply side, the economic value is created by various stakeholders at primary and secondary levels; the primary level consists of elements where the visitor makes direct expenditures as part of the overall visit such as accommodations, restaurants, retail stores, entertainment and events, while the secondary level is composed of the intermediaries between 1 World Bank report to AHLC meeting, Sept. 20132 Master Plan for Developing Tourism in Bethlehem, MOTA 2011

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the tourist and the destination such as airlines carriers, travel agents and tour operators. In most cases, international travel agents are the primary channel for arrangements to the country. The Tertiary level includes the suppliers that directly support these establishments such as agriculture, construction, and manufacturing industries as well as a wide range of business and technology service providers. For West Bank and Gaza to successfully compete and get its share of regional tourism arrivals, it needs to diversify its tourism offering across these levels and promote its richness in cultural, historical and natural resources.3

3. In 2010, the Palestinian Ministry of Tourism and Antiquities (MOTA) released a national strategy defining a vision of “promoting the national image as a safe, hospitable, independent destination, rich in religious, cultural, historical and natural resources”. The objectives of the strategy are to increase the number of visitors, diversify the type of visitors, increase the time and money spent in the host communities, and increase the geographical spread throughout the West Bank. The latter element is of key importance to grow tourism as a sector which lifts the Palestinian economy beyond the traditional hub of the Bethlehem area (which presently attracts the large majority of visitors) and also offers opportunities to rural areas where socio-economic development is lagging behind. While Christian pilgrimage will remain at the core of West Bank and Gaza’s tourism offer, the industry has identified other segments as potential opportunities, including cultural heritage tourism, eco-tourism, and experiential tourism that may attract domestic and foreign independent travelers.4

Experiential Tourism

3 Palestinian Tourism Industry Review, CARANA/ USAID 20094 National Tourism Strategy of West Bank and Gaza, MOTA 2010

Source: Alternative Business Solutions, May 2009

2

4. Experiential tourism is a combination of adventure and community oriented tourism. Adventure tourism is an activity seeking the challenges and rewards of adventure in natural surroundings. It is frequently done independently but also in organized groups. These tourists are generally medium to high income, seeking respite from the pressures and routine of urban lives. They pay high prices for holidays that may involve risk and will certainly involve some physical hardship. Adventure tourism has greater economic impact across the levels of society, given that supplies and services are provided by smaller local businesses and households. Adventure travelers tend to stay longer and spend more locally. According to Adventure Travel Trade Association, about two-thirds of their holiday costs are spent directly in the destination in stark contrast to just 10-15% of package holiday costs.5 According to the benchmark Adventure Tourism Market Report, the George Washington University in partnership with the Adventure Travel Trade Association and Xola Consulting, adventure travelers spent more than US$89 billion on worldwide adventure tourism in 2009, excluding airfare and gear/clothing, on which they additionally spent US$53 billion.6

5. Walking trails are of huge importance within the adventure and community tourism segments. Significant economic contributions come from ramblers and backpackers such as those walking Scotland’s ‘West Highland Way’ - a 96 mile (154.5 km) trail. The Highland Way is attracting around 85,000 walkers every year, generating US$5.4 million (£3.5 million), and supporting around 200 local businesses along the Way.7 One thousand guidebooks to the Hadrian’s Wall Trail were sold within three months of its opening, during which time, over 3,500 people walked the route.8 The best known long distance walking trail in the world –the Camino de Santiago in France and Spain- attracts over 170,000 people a year who walk a minimum of 62 miles (100 km) on the trail.

Walking Trails in West Bank and Gaza

6. The West Bank is the location of a number of initiatives combining walking with rural community tourism and hospitality. All of these initiatives have been successful in creating community momentum, media attention and additional visitors to rural areas. Between long-distance projects and day walks, the hubs of rural community tourism feature a large degree of overlap in geographical scope as well as cooperation and coordination between operators. There are five walking trails in the West Bank, which are the Abraham Path and the Nativity Trail (long-distance), the Sufi Trail, Walking Palestine Trail, and the Ramallah Highland Trail (shorter day walks). With small scale investments, local NGOs have developed and promoted the trails to walkers from around the world. The walking trails have proven to be resilient to political/security upheaval, and managed to bring income and job opportunities to rural communities. Nevertheless, the modest investment in trail development, guides training, and promotion, have limited the economic impact of these trails, and failed to unlock their potential in the West Bank.

5 ITB World Travel Trends Report 2012/2013, Dec. 20126 Adventure travel trade association (www.adventuretravelnews.com), August 20107 The Ramblers’ Association, “Walking Facts and Figures”, 20108 New Opportunities for Mountaineering, Adventure and Desert Sports, Tony Howard and Di Taylor, March 2006

3

7. The Abraham Path is the longest trail in the West Bank, and integrates three out of the four other trails in its current and future extensions. Starting at a small scale, AP has been growing over the last five years, attracting thousands of travelers, and gaining the support of government, and non-government organizations. Investment in the Abraham Path will support the natural evolution of walking trails in West Bank and Gaza, and will maximize the economic impact of experiential tourism in rural communities.

C. HIGHER LEVEL OBJECTIVES TO WHICH THE PROJECT CONTRIBUTES

Relationship to ISN

8. The latest World Bank Interim Strategy Note (FY12-14) for West Bank & Gaza rests on two pillars, strengthening the institutions of a future state to efficiently manage public finances and ensure services to citizens (Pillar 1), and supporting the creation of an enabling environment for private sector-led growth (Pillar 2). The Abraham Path project falls under the second pillar, as it combats unemployment and creates jobs for marginalized groups in rural communities through reinforcing linkages with the private sector. The project works on building partnership and value chain integration between small rural communities, NGOs in the experiential tourism field, and tour operators in the private sector.

II. PROJECT DEVELOPMENT OBJECTIVES

A. PROJECT DEVELOPMENT OBJECTIVE (PDO)

9. The development objective is to contribute to job creation and income generation for marginalized rural communities along the Abraham Path in the West Bank, with a particular focus on women and youth, and to capture lessons from piloting job creation through experiential tourism that could be applied in other Fragile and Conflict-Affected Situations (FCS).

PROJECT BENEFICIARIES

10. The main beneficiaries of the project are the following groups: (a) Individual stakeholders directly engaged or employed on the Abraham Path/Masar

Ibrahim, such as homestay hosts, guides, transport providers, and local business owners.

(b) Local communities in rural areas represented by local councils, local women’s associations, and relevant community based associations such as youth groups. These associations will be involved in coordinating and facilitating the Abraham Path activities on the communal level.

(c) The union of the Masar Ibrahim al-Khalil (MIAK), a Palestinian NGO formed by three NGOs who worked on the walking trail from its inception: the Rozana Association, the Siraj Center and the Palestine Wildlife Society.

(d) Staff of the MOTA. MOTA will lead the advisory council of the project and MOTA staff will be part of outreach and training activities.

4

(e) The Network of Palestinian Experiential Tour Operators (NEPTO). This network represents a group of independent non-profit organizations, each working to share the best of West Bank and Gaza with travelers from around the world.

(f) Palestinian private sector tour operators, represented by the Holy-land Incoming Tour Operators Association (HILTOA). The association will support integration of Abraham Path with private tour operators in West Bank and Gaza, so as to ensure sustainability of services.

(g) Bethlehem University’s Institute for Community Partnership is involved in the training and educational aspects of the Path in West Bank and Gaza. The university has prepared the content of a wilderness guide curriculum in cooperation with a professional French tourism organization.

PDO LEVEL RESULTS INDICATORS

11. The PDO Level Results Indicators are:(i) Annual direct and indirect income for involved communities along the Abraham Path (ii) New jobs created in communities along the Abraham Path (Nr), of which female (%)(iii) Direct project beneficiaries (Nr), of which female (%)(iv) Research notes on job creation through experiential tourism in FCS

III. PROJECT DESCRIPTION

12. The Masar Ibrahim/Abraham Path project represents an innovative pilot approach to tackling rural development, employment, and women’s empowerment in communities normally excluded from mainstream economic development and investment and often disconnected from one another. The Abraham Path is a long-distance walking trail across the Middle East. The path retraces the cultural memory of the journey of Abraham and his family and celebrates its story of hospitality and kindness to strangers.9 The complete Path presently consists of a 270 mile (430 km) route, which crosses 40 communities in 4 countries, but it may eventually cross 3,100 miles (5000 km) and 10 countries in the Middle East.

13. With local partners, the Abraham Path Initiative (API) is uncovering the footsteps

9 The Initiative is a socio-economic and cultural project connecting East and West and not affiliated with or endorsing any religion or religious message. Along the route, the Initiative and its local partners highlight Abrahamic culture and memory in the widest sense of the term and in particular emphasise the ethos and values of hospitality and kindness to strangers which are

Abraham Path in the Middle East

5

of Abraham as a walking route for local and international visitors. The route presently starts in Urfa (also called Sanliurfa) in Turkey and ends at Abraham’s burial site in Hebron in the West Bank. Since 2008, some 4,000 travelers have walked the Path, the majority of them passing 21 rural communities and villages in Jordan and the West Bank. Walkers contribute to the local economy by staying in villages with families in homestays, buying homemade meals, and walking with local guides through attractive natural and archeological spots between rural communities.

14. Nearly 114 miles (182 km) of trail has been developed in the West Bank, with hospitality, local guiding, and homestay houses in communities along its way. The Palestinian segment of the Path passes 13 communities and villages in areas A, B and C10 in the West Bank; starting from Nablus in the north of the West Bank, and ending with Hebron in the south. 11 The route goes well beyond the traditional hub for tourism (Bethlehem) and helps in diversifying the tourism offering of West Bank and Gaza.

15. In Israel, a 30-mile (48 km) segment of the Path from Arad to Be’er Sheva has been scouted and includes sites linked to Abraham such as Tel Sheva, Tel Arad, various Bedouin villages, the Falahin village of Derijat and Abraham’s Well in the city of Be’er Sheva. People from different backgrounds have worked together to make the path come to life in this area. A walking connection between the Israeli and Palestinian segments of the Abraham Path does not presently exist, even though the concept of inter-linkage ultimately lies at the heart of the regional project. The current Path in Jordan connects between Pella and Ajloun in the north, while the future extension will reach Wadi Rum in the south.

present across the Middle East. 10 The West Bank is divided per Oslo Accords into 3 areas: Area A is under Palestinian security and civilian control and correspond to all major population centers; Area B concerns mostly rural communities and is under Palestinian civilian control and some security control, while overall security remains under Israeli control; and Area C is under Israeli control for both security and civilian affairs related to territory, including land administration and planning.11 The Path communities are located in areas A and B, but the walking segments between the communities are mostly crossing area C. The shortest segment between communities is 4.3 miles (7 km), while the longest one is 14.3 miles (23 km). Each segment can be covered in a walking day, and there are no requirements for additional physical infrastructure between communities. While the Palestinian use of land and resources in area C is very restricted, walking in area C is allowed for both local and international visitors and groups have been walking through area C unimpeded since the Abraham Path was launched in 2008.

The Path from Nablus to HebronAbraham Path in the West Bank

6

16. In West Bank, the Path presently employs 5 guides, actively involves 28 homestays, and generated US$218,280 of direct annual revenues (2012), and 63 direct new job opportunities since its inception in 2008.12

A. PROJECT COMPONENTS

17. The 2 years and 2 month project implementation period is relatively short and is considered a pilot phase to be complemented with additional financing at a later stage, if results are satisfactory and funds are available through SPF13 or additional sources. Sustainability of the trail beyond this period is assured, since Abraham Path/Masar Ibrahim is already a sustainable venture that runs tours for groups of travelers, communities benefit from hosting tourists, and costs are being recovered. The material difference the project expects to make is developing and scaling up operations to increase the impact from the path in terms of the number of travelers, jobs, and income generated.

18. The activities of the project will fall under four main components:

Component A: Investment in People and Institutions (US$ 745,142)

This component invests in the capacity and institutional sustainability of all local actors across the value chain of the path through:

(i) Training of current and new guides (wilderness guides) in guiding techniques, trekking and interpretation (i.e. natural, cultural, and historical), safety, leadership and intercultural skills;

(ii) Outreach to current and new communities on the path;(iii) Orientation and training for new and existing homestays; (iv)Capacity building for local NGO partners on funding generation strategies (corporate

fundraising/sponsorships), management systems, financial management and procurement; and

(v) Local awareness trips for MOTA staff.

Component B: Abraham Path Development (US$ 530,372)

This component invests in the development of the path that is required to raise the quality of visitors’ experience on the path and to empower local communities and guides to tap its full potential:

(i) GIS data collection and publication;(ii) Mapping the path online and in print (detailed cartography); (iii) Way-marking research & signage on the path; (iv)Route extension: adding new communities (north of Nablus; south of Hebron); and

12 This number excludes fees for tour operators and direct revenues generated in tourism centers outside the path communities (e.g. Jerusalem and Bethlehem) and it excludes homestays in the community of Beit Sahour/Bethlehem where some 40 homestays are active. The latter homestay network has been in existence before the establishment of the Path and in contrast to other communities on the Path, the hosts receive a mixture of guests through other experiential tourism programs as well.13 The current funding of SPF Trust Fund ends in March 2016. The project duration was adjusted to align with this timeframe. If performance of the project is satisfactory, and additional funding is available, the team will submit a request for additional financing to SPF secretariat before March 2016.

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(v) GIS/hiking gear for wilderness guides

Existing homes along the path of homeowners willing to participate will be utilized as homestays. The project will not include any physical works to the existing homes or to the existing heritage sites.

Component C: Marketing, Business Development, and Communication (US$ 462,597)

This component invests in the expansion of private sector engagement on the path (tour guides, tour operators) as a viable experience for multi-day and single day trips including support to:

(i) A virtual information hub that serves as a travel guide application for current and prospective travelers providing info, logistics, videos, photos, blogs, electronic maps, GIS data, home-stay options, tour operator and guide options;

(ii) Profiles for archeological, heritage and cultural sites along the route; (iii) Itinerary development for in- and outbound operators;(iv)“Familiarization” trips for media specialists and local tour operators; (v) Development of marketing and logistical collateral such as the aforementioned online

travel guide, a handbook for wilderness guides, and other promotional materials such as experiential tourism overview maps and billboards which promote the variety of experiences/initiatives across the area;

(vi)On-line social media presence and promotion to engage potential walkers as well as specific site information;

(vii) Participation of local operators and partners in international promotional activities such as trade fairs; and

(viii) Communication on the project itself and its impact on local communities (for use both by the World Bank and the implementing agency). The list of planned communications activities is provided in Annex 4.

Component D: Monitoring and Evaluation and Knowledge Dissemination (Action Research) (US$ 585,897)

This component invests in monitoring and evaluation. As part of the process, capacities of local stakeholders will be expanded, independent and external evaluation and audit will be systematized, and dissemination of lessons and insights within and outside the World Bank will be enabled through:

(i) Qualification and collection of fundamental indicators (number of walkers, length of travel, facilities and services used, etc); and

(ii) Partners and beneficiaries’ assessment (survey work, data collection, and analysis) to measure trends that can be useful both for project monitoring purposes, and to capture lessons from piloting job creation through experiential tourism that could be applied in other FCS settings. During the project timeframe, the task team will develop ten (10) research notes on experiential tourism in FCS. The list of 17 suggested topics for research notes is provided in Annex 3.

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B. PROJECT FINANCING

19. The Project is fully financed through the World Bank’s State and Peace-building Fund (SPF). The project represents an innovative and experimental approach that will create unique technical and operational knowledge for private sector development in fragile and conflict-affected situations. The project falls under the Peace-Building category of the SPF, and supports the following SPF country-level results: (i) employment generation and private sector development; (ii) increased social cohesion; and (iii) gender sensitive approaches for economic empowerment of women.

PROJECT COST AND FINANCING

Project Components Project cost(US$’000)

Grant Financing(US$’000) % Financing

A. Investment in People and Institutions 745,142 745,142 32.06

B. Abraham Path Development 530,372 530,372 22.82

C. Marketing, Business Development, and Communication

462,597 462,597 19.90

D. Monitoring and Evaluation and Knowledge Dissemination (Action Research)

585,897 585,897 25.22

Total Baseline Costs Physical contingencies Price contingencies

2,324,008 2,324,008 100

Total Project CostsInterest During Implementation

Front-End FeesTotal Financing Required

2,324,008

2.324,008

2,324,008

2,324,008

100

100

C. LESSONS LEARNED AND REFLECTED IN THE PROJECT DESIGN

Learning from the Jordanian Experience

20. The case of Jordan provides a “south-south” learning opportunity on eco, community, and adventure tourism development. These lessons are very relevant for Palestinian partners on the Masar Ibrahim, not least because the market segment is very similar. Organizations such as the Royal Society for the Conversation of Nature (RSCN) and Wild Jordan hold in-house expertise and project experience, from which the Masar Ibrahim and other Palestinian partners in this project can benefit. At the level of the private sector (tour operators), Jordan also has a specific expertise to share, which Palestinian operators do not yet have. Jordan has a National Nature Guide certification program, as well as a regional "Nature Academy", which is the first purpose-built center in the Middle East that specializes in training of nature guides and environmental rangers. Jordanian experience presents a good model for private-public partnerships, which links up private sector businesses with public/NGO initiatives.

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21. Since 2009, API has been working with Jordanian civil society partners (RSCN, Friends of the Earth Middle East and others), local community based organizations on the path (the Al Ayoun Society), and tour operators (Experience Jordan, Petra Moon and Guiding Star tours) to develop the path in the region of Ajloun in northern Jordan. A 5-day and 60 km continuous route between Ajloun and the Jordan Valley has been developed and mapped. Third-party financed project experience in this area of northern Jordan is relatively modest as compared with the south of the country (where USAID, EU and World Bank have invested): homestay infrastructure in the Ajloun area has been supported through a small USAID project in 2009, resulting in 11 homestays, all of which are still active. Two study visits by Palestinian local partners to both the path and institutions/private sector in Jordan are included under the capacity building pillar of the project.

Female Participation

22. In the MENA region, there is a cultural preference for women to stay at home, and in some communities, there is a cultural wariness around working in tourism.14 Although women’s participation in the Palestinian economy is a priority, women’s participation in the labor force is low (16%) even compared with the MENA average (26%).15 The project can innovate around the concept of women’s employment within accepted boundaries set by their societies. In rural areas, women are the main hosts who manage and prepare lodging and food while staying in and around the house. Civil Service Organizations facilitate sales of female-made handcrafts that generate revenues to women in rural communities, while showcasing inherited Palestinian arts and crafts. The outreach activities and training will ensure substantial participation for female professionals, who can work within rural communities.

Social Cohesion

23. Rural villages in the West Bank face particular social cohesion challenges due to ongoing political conflict as well as lack of economic and social development (education and culture) opportunities, which are concentrated in urban hubs and away from the rural periphery. Social cohesion challenges exist both between and within rural communities. Rural tourism addresses this challenge by bringing together various sub-groups across lines of gender, age and religion, to cooperate economically and celebrate local heritage. The project incorporates various activities that seek to strengthen the social cohesion impact of the Abraham Path: from outreach on the project with village councils, women’s cooperatives and homestay hosts to meetings of leaders of youth groups such as scouts; and from training activities for groups from different communities to field walks on the path on environmental awareness, and a youth thru-walk of the entire West Bank trail at a later stage. These activities unite people from various villages and within villages to foster teamwork and camaraderie around a common goal.

14 World Bank Quick Note # 78, MENA Region: “Tourism in MENA: A Strategy to Promote Recovery, Economic Diversification, and Job Creation”, January 201315 Interim Strategy Note for West Bank and Gaza, 2012

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IV. IMPLEMENTATION

A. INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENTS

24. Abraham Path Initiative (API) is the implementing agency and the grant recipient and will be responsible for the overall project implementation. API's regional program staff members, who are based in Jerusalem, will manage the implementation of the project activities. API will enter into a service agreement with “Masar Ibrahim al-Khalil”, an NGO in the West Bank to implement part of the activities through the time frame of the project. More details on the implementation arrangement are provided in Annex 2.

Project implementation stakeholders

25. Abraham Path Initiative (API) is an independent non-profit and non-governmental organization based in Boston, USA. It is registered as a 501c (3) organization (a recognized non-profit exempt from US federal income tax). The mission of the organization is to develop Abraham Path as a long-distance cultural walking route through the Middle East in cooperation with local partners and rural communities. Founded at Harvard University's Global Negotiation Initiative, API is appraised and assisted by the United Nations Alliance of Civilizations and the UN World Tourism Organization. The organization has financial management, oversight and procurement systems in place and is audited on an annual basis. API has a good record of implementing both projects financed from its own resources as well as externally financed projects and is able to follow the financial management and oversight procedures required by third party sponsorship. API holds a unique technical expertise in the area of long-distance walking trails in the Middle East.

26. Masar Ibrahim al-Khalil (MIAK): Masar Ibrahim is a union of three existing Palestinian organizations: (i) the Palestine Wildlife Society,16 (ii) the Rozana Association,17 and (iii) the Siraj Center for Holy Land Studies.18 They are registered NGOs who are all co-founders of the

16 The Palestine Wildlife Society (PWLS) carries the mission of conserving and enhancing Palestinian biodiversity. It has developed activities in research, education, and eco-tourism for a local and international audience. Its expertise lies in particular in the areas of bird watching, wildlife research, documentation, and protection, as well as youth education on natural heritage. PWLS is a partner in Birdlife International and is based in Beit Sahour. Beyond its governance role in the Board of the Masar Ibrahim, PWLS’ practical role is to share its expertise on wildlife through specialized training and practical education/information for guides, volunteers and travelers. (www.wildlife-pal.org) 17 is a Birzeit based NGO working on agro-cultural tourism in the area between Birzeit and Sebastia (Nablus). Its expertise is in the development of new experiential tourism in rural areas. Rozana organizes tours in Birzeit itself and other Palestinian villages such as Deir Ghassaneh, Deir Ammar and Taybeh. It is the founding organization behind the Sufi Trails in West Bank and Gaza, organizing regular walking tours across Sufi heritage in the central West Bank. It is also partnering in the rehabilitation of the Birzeit’s old city and the organization behind the yearly Maftoul festival in Birzeit. Beyond its governance role in the Board of Masar Ibrahim, Rozana’s practical role is to share its expertise on developing and marketing experiential tourism programs locally and abroad. (www.rozana.ps)18 Siraj Center for Holy Land Studies /Palestinian Center for Rapprochement between People. The Siraj Center aims to create links between Palestinians and people elsewhere through educational tourism, and youth exchange programs. Siraj’s expertise lies in the development of innovative (alternative) tourism programs in the Holy Land in the areas of walking, biking, and community and rural tourism. Siraj is based in Beit Sahour and has been the principal organization behind multiday walking tours on both Abraham Path and the Nativity Trail (the latter together with the Alternative Tourism Group). Siraj is a part of the Palestinian Center for Rapprochement between People whose mission it is to bridge the gap between Palestinians and peoples from all around the world, informing the public about the reality in West Bank and Gaza, and empowering the community through nonviolent direct action. Beyond its governance role in the Board of Masar Ibrahim, the Siraj Center provides practical experience and support in the implementation of tours, the communication with guides and hosts and development of periodical

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Network of Palestinian Experiential Tour Operators (NEPTO). In addition, the Masar partners have a very close working relationship with Bethlehem University and in particular its department of tourism and hospitality training. A capacity assessment of the implementing agencies was conducted and specific milestones for building capacity during the lifetime of the project, was agreed upon as well as a sub-set of milestones prior to the effectiveness of the Service Agreement between API and MIAK (agreed in the detailed Terms of Reference for the Service Agreement). A capacity building component (Component A) is incorporated into the project to ensure efficiency and sustainability of partner NGOs, including MIAK, beyond the project’s lifetime, and to enable partners to directly implement and oversee various project activities and components of the project.

27. Local NGOs Support: During the World Bank’s identification mission in March 2013, experiential tourism NGOs in West Bank and Gaza have acknowledged the efforts and experience of API in developing the Abraham Path in the region, and recommended API to lead implementation of the project, in partnership with “Masar Ibrahim al-Khalil” in West Bank and Gaza. The recommended implementation mechanism was discussed with the World Bank and with the SPF secretariat.

28. Minister’s Support. The MOTA is supporting the development of the experiential tourism agenda in West Bank and Gaza. The Minister endorsed the project and the selection of API as implementing agency, together with its local partner, Masar Ibrahim. Led by the Masar Ibrahim, the project will utilize an advisory council of MOTA as an advisory body for the project. The advisory council will ensure exchange of information, the involvement of MOTA staff in key activities and coordination on the delivery and implementation, in particular community and government outreach, marketing and training of guides and hosts in the project. The advisory committee includes representatives of local NGOs, private tour operators, rural community representatives, and other relevant public sector organizations. The Masar Ibrahim will periodically discuss action plans with MOTA’s advisory council, and coordinate roles and responsibilities among stakeholders in the delivery of project activities. The project will assess training needs of MOTA staff engaged in the coordination process.

B. RESULTS MONITORING AND EVALUATION

29. A third party firm will be hired under competitive procurement to carry out the data collection and M&E component of the project. Detailed terms of reference will be developed by API, in consultation with local partners and World Bank M&E specialists in the first quarter of year 1 of the project. The sources of data for M&E for each PDO and Intermediate Result indicator are specified in the Results Framework (Annex 1).

30. The 6-monthly data will be used by API and project partners to learn from previous activities and adjust the work plan where needed in order to achieve the projected results. The data will also be used to feed into the Action Research component of the project.

31. In addition to collecting data and writing 6-monthly reports, the M&E firm will also provide training to local partners on M&E standards and techniques as part of Component A: Investing in

programs of 1-day and multiday walking tours on the Path. (www.sirajcenter.org)

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People and Institutions. The objective of this activity is for MIAK and its partners to be able to monitor and evaluate their future work plans.

32. API and local partners have been collecting data for jobs created, number of travelers, and revenues since 2009. The World Bank has revisited the data collection process and found it proper for supporting project M&E.

C. SUSTAINABILITY

33. The 2 years and 2 month project implementation period is relatively short and is considered a pilot phase to be complemented with additional financing at a later stage, if results are satisfactory and funds are available through SPF19 or additional sources. Regardless of whether additional project financing will come through, it is worth noting that Abraham Path/Masar Ibrahim is already a sustainable venture for the stakeholders concerned in the sense that tours are run for groups of travelers without external subsidies. Communities benefit from hosting and guiding travelers, and costs are being recovered. The material difference this and future project are expected to make is developing and scaling up operations to increase the impact from the path in terms of the number of travelers, jobs, and income generated. In addition, the Investing in People and Institutions component of the project tackles the capacity of local organizations and institutions (e.g.: NGOs, CBOs, MOTA, etc.) and individuals (guides and hosts) through targeted training and outreach. The Action Research component delves into more long-term strategic themes and provides the basis for future investments into the scale and sustainability of the Abraham Path/Masar Ibrahim.

V. KEY RISKS AND MITIGATION MEASURES

A. Risk Ratings Summary Table

Risk Risk RatingStakeholder Risk SubstantialImplementing Agency Risk- Capacity - Substantial- Governance - Substantial

Project Risk- Design - Low- Social and Environmental - Low- Program and Donor - Low- Delivery Monitoring - Low- Other (Possibility of an upsurge in

political unrest and insecurity)- High

Overall Implementation Risk SubstantialB. Overall Risk Rating Explanation

34. The overall risk for this operation is Substantial. The risk level is suggested based on the external factors in the country and the limited World Bank experience of the implementing 19 The current funding of SPF Trust Fund ends in March 2016. The project duration was adjusted to align with this timeframe. If performance of the project is satisfactory, and additional funding is available, the team will submit a request for additional financing to SPF secretariat before March 2016.

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agency. The project specific/controllable aspects should not encounter a substantial risk in implementation, given that there is already a demonstration/pilot operation that has been effective over the past two years. The simplified Operational Risk Assessment Framework (ORAF) is attached in Annex 5.

VI. APPRAISAL SUMMARY

A. Economic Benefits

35. Starting small with just 4 days of walking route, the Abraham Path has been growing steadily since its inception in 2008, attracting thousands of travelers and media attention, expanding in length and community coverage, and gaining the support of government and non-government organizations across the region. Because of the overlap of initiatives and geography, investment in the “hub” of the Abraham Path will support the natural evolution of experiential tourism in West Bank and Gaza more broadly, and will grow the economic impact of this type of tourism in rural communities that are otherwise economically marginalized. The project will scale up the economic impact of the path and strengthen the capacity of its main drivers and stakeholders: the Masar Ibrahim al-Khalil, its local partner NGOs, tour operators, community organizations, guides and host families.

36. The direct impact on the rural communities along the Abraham Path can be measured in a model using data from the number/type of walkers, average expenditure, group size, need for guides/ home-stay services, and the number of communities along the Path. A multi-scenario model using 2012 numbers as base data projects (i) the generation of US$1 million in direct annual revenues, and the creation of 105 direct jobs, following a low growth (9% year-on-year) scenario by 2020; and (ii) the generation of US$3.1 million in direct annual revenues, and the creation of 146 new jobs, following a high growth (25%) scenario by 2020. The indirect annual impact of these scenarios is estimated at US$2.4 million (low growth) and US$ 7.2 million (high growth) respectively.20

B. FINANCIAL MANAGEMENT

37. The API will act as the Bank’s counterpart on all FM and disbursement aspects of the proposed Project, including making all payments to contractors and consultants on behalf of local counterparts. Local counterparts will supervise the proposed project implementation and physical progress. A preliminary financial management (FM) capacity assessment for the API was conducted in the context of identifying the Project’s FM requirements. The preliminary assessment reviewed the API’s organizational structure, flow of funds arrangements, accounting policies and procedures, internal control, reporting and monitoring, and external audit. Based on

20 The data on indirect effects should be interpreted with much caution. Tourism multiplier effects are notoriously difficult to estimate and differ by type of tourism sector and by a country’s level of development. Moreover, multiplier effects tend to vary over time as local factors (e.g. propensity to consume/save additional income, revenue leakage, etc.) vary with the overall macro-economic context. The sources mentioned are the geographically closest analysis/figures (on Jordan) that the model found to the case in West Bank and Gaza; however, these do not take account of the specific context of tourism spending in poor rural communities where most labor in the “sector” is part-time. Sources within OECD countries estimate multiplier effects in tourism to be much lower, closer to 1.2-1.5. Further (field) research would be required to gather more robust estimates on indirect effects in the case of experiential tourism in the West Bank.

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the assessment, API maintains adequate FM arrangements to manage the grant and is capable of producing accurate and timely information and reports. Moreover, the preliminary assessment concluded that API is staffed with competent and experienced FM team with adequate professional experience. The proposed Project is the first World Bank project to be implemented by API; however, API is familiar with managing grants from international organizations and is committed to following Bank procedures and requirements.

38. The Bank funds will be disbursed through a U.S. Dollar Designated Account (DA) which will be opened in the United States of America and managed by the API. Withdrawal Applications will be prepared and signed by the authorized signatures at the API before submission to the Bank.

39. The API management will be responsible for reporting to its Board and to the Bank on the financial progress of Project implementation. API will be responsible for preparing and issuing the annual work program and operating budgets for the Project. API will be required to issue quarterly interim un-audited financial reports (IFRs), which will include a narrative progress report. These reports will reflect the Project sources and uses of funds, contracts expenditures as well as uses of funds by project components and categories. The quarterly IFRs will be submitted by API to the Bank within 45 days after the end of the concerned quarter.

40. An external independent auditor, acceptable to the Bank, will be engaged to perform Project audits and issue an independent opinion on the Project’s financial statements. The audit report with audited financial statements will be submitted to the Bank no later than six months following the closing date of each fiscal year being audited.

C. PROCUREMENT

41. Procurement of small works, goods and consultants’ services under the project will be carried out in accordance with the ‘Guidelines: Procurement under IBRD Loans and IDA Credits’ published by the Bank in January 2011, and the ‘Guidelines: Selection and Employment of Consultants by World Bank Borrowers,’ published by the World Bank in January 2011. Moreover, the ‘Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants’, dated October 15, 2006 and updated January 2011 shall apply to the project. The overall procurement responsibility for the project will rest with the API, which will act as the Bank’s main counterpart for all procurement aspects of the project and will ensure that procurement under the project is carried out in accordance with the Grant Agreement. API has a good experience in implementing donor projects; however, it has no previous experience in implementing procurement under Bank financed projects. A procurement capacity assessment was carried out as part of project preparation and a simplified procurement plan was agreed with API.

42. API will manage the procurement processes for the project and will be responsible for contract management, including handling of payments to suppliers, contractors and consultants. API will contract-out Masar Ibrahim al-Khalil, on the basis of single source selection, to implement part of the project activities, based on detailed terms of reference. Masar Ibrahim al-Khalil is uniquely qualified and has experience of exceptional worth to undertake the assignment in the respective geographic area. The selection is reflected in the Procurement Plan.

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D. SOCIAL

43. The project will be implemented along Abraham’s Path in the West Bank, which currently crosses 13 rural communities from Nablus in the north of the West Bank to Hebron in the south. The social impacts are positive, and will support economic development in rural communities. Existing homes along the path of homeowners willing to participate will be utilized as homestays.

E. ENVIRONMENT

44. Project activities will not include any physical works to existing homes or to the existing heritage sites and the project is not expected to result in indirect and/or long term negative environmental impacts.

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ANNEX 1: RESULTS FRAMEWORK AND MONITORING

WEST BANK AND GAZAMASAR IBRAHIM/ABRAHAM PATH: ECONOMIC DEVELOPMENT ACROSS FRAGILE COMMUNITIES

Project Development Objective (PDO): To contribute to job creation and income generation for marginalized rural communities along the Abraham Path in the West Bank, with a particular focus on women and youth, and to capture lessons from piloting job creation through experiential tourism that could be applied in other FCS settings.

PDO Level Results Indicators21

(SPF relevant indicator)

Cor

e UOM22

BaselineOriginal ProjectStart(2012)

Progress To Date(200X)23

ARM24

Cumulative Target Values25

Frequency

Data Source/Methodology

Responsibility for Data

CollectionComments2014 2015 2016

1. (SPF 3.1) Annual direct and indirect income for involved communities along the Abraham Path (US$)

US$ US$ 513,902

US$ 620,465

US$ 682,372

US$ 750,934 Annual

Tour operator data and Action Research (AR) surveys

Action Research (external firm)

Annual revenue.Data Note #1 in Annex on exclusion of Type C traveler revenue in this data.

2. (SPF 3.1) New jobs created in communities along the Abraham Path (Nr), of which female (%)

Nr. of Jobs

Female(%)

0 74(70% F)

167(70% F)

196(70% F) Annual AR surveys

Action Research (external firm)

See Data Note #2.

2.1 of which youth (%) % 0 25% 25% 25% Annual AR surveysAction Research (external firm)

Youth % to be validated in AR Measurement 2013

3. (SPF 3.4) Direct project beneficiaries (Nr), of which female (%)

Nr. of people

Female (%)

0 520(45% F)

585(45% F)

660(45% F) Annual AR surveys

Action Research (external firm)

See Data Note #3. % Youth to be established in AR Measurement 2013.

3.1 of which youth (%) % 50% 50% 50% Annual AR surveysAction Research (external firm)

Youth % to be validated in AR Measurement 2013

4. (SPF 1.3) Research notes on job creation through experiential tourism in FCS.

Nr. of Research

Notes0 3 6 10 Annual

Verification of e-publishing

Action Research (external firm)

See Annex on Research Note themes.

21 Please indicate whether the indicator is a Core Sector Indicator (for additional guidance – please see http://coreindicators).22 UOM = Unit of Measurement.23 For new indicators introduced as part of the additional financing, the progress to date column is used to reflect the baseline value.24 ARM= Action Research Measurement in first qtr 2014 on year 2013.

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25 Target values should be entered for the years data will be available, not necessarily annually. Target values should normally be cumulative. If targets refer to annual values, please indicate this in the indicator name and in the “Comments” column.

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Intermediate Results and Indicators

Intermediate Results Indicators

Cor

e

Unit of Measurement

BaselineOriginal ProjectStart(2012)

Progress To Date(200X)ARM

Target Values

Frequency Data Source/Methodology

Responsibility for Data

CollectionComments2014 2015 2016

Intermediate Result 1: Communities are actively involved in the Abraham Path project, strengthening social cohesion1. Nr. of communities’ inhabitants that are trained on the project

Nr. of people 0 80 160 200 Annual

Activity reports Masar Ibrahim

M&E(ext. firm)

Participants in community orientation and outreach training

2. Nr. of local councils or associations that have signed partnership agreements with the Masar Ibrahim

Nr. of council

s0 5 10 15 Annual Verification

of agreements

M&E(ext. firm)

3. Participants in consultation activities during project implementation

Nr. of people 0 100 200 300 Annual

Activity reports Masar Ibrahim

M&E(ext. firm)

4. Total nr. of community members who participate in cross-community activities (Social Cohesion).

Nr. of people 0 240 480 540 Annual

Activity reports Masar Ibrahim

M&E(ext. firm) Participants in any path

activity which spans >1 community

Intermediate Result 2: Youth groups and women are actively involved in the Abraham Path project5. The number of local youth groups that are actively engaged on the Abraham Path

Nr. of groups 0 6 10 12 Annual

Activity reports Masar Ibrahim

M&E(ext. firm)

6. The number of local women’s groups that are actively engaged on the Abraham Path

Nr. of groups 4 8 12 15 Annual

Activity reports Masar Ibrahim

M&E(ext. firm)

Intermediate Result 3: Local guides are trained and certified

7. Nr. of local wilderness guides that are trained

Nr. of w.

guides0 16 20 25 Annual

Student presence lists training courses

M&E(ext. firm)

8. Nr. of local wilderness guides that are certified

Nr. of w.

guides0 8 10 15 Annual

Training and diploma records

M&E(ext. firm)

Intermediate Result 4: Local private sector actively uses and promotes the Abraham Path

9. Nr. of tour operators that run tours on the Abraham Path

Nr. of operato

rs3 4 5 6 Annual

Online and in-print marketing records

M&E(ext. firm)

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Intermediate Results and Indicators

Intermediate Results Indicators

Cor

e

Unit of Measurement

BaselineOriginal ProjectStart(2012)

Progress To Date(200X)ARM

Target Values

Frequency Data Source/Methodology

Responsibility for Data

CollectionComments2014 2015 2016

10. Nr. of media and local tour operators who participated in “Familiarization” trips

Nr. of operators and

journalists

0 16 48 48 Annual

Activity reports Masar Ibrahim and participant lists

M&E(ext. firm)

Intermediate Result 5: The nr of walkers on the path continues to rise11. Annual total nr. of walkers (types A and B, excl. C) 912 1163 1317 1492 Annual Sources

below

A+B because C is probably not fully measurable

11.1. The nr. of Type A walkers 503 597 651 709 Annual Tour operator surveys

M&E(ext. firm)

The annual number of travelers in organized groups on multiday trips

11.2. The nr. of Type B walkers 409 566 666 783 Annual Tour operator surveys

M&E(ext. firm)

The annual number of travelers in organized groups on day trip

11.3 The nr. of Type C walkers N.A. 1493 1627 1773 Annual Action Research

M&E(ext. firm)

The annual number of independent travelers on multi-day or single day trips.

Intermediate Result 6: The trail is extended to connect the northern to the southern West Bank12. The nr. of km of continuous Abraham Path trail km 182 200 220 260 Annual Online

guidebookM&E

(ext. firm)

13. The nr. of visits to the Abraham Path online guidebook

Nr of monthly page views

3,918 10,000 12,500 15,000 Annual

Online traffic report (Google Analytics)

APIAverage monthly page views per year (not cumulative)

Intermediate Result 7: Institutional capacity of key NGOs in the trail development sector is strengthened14. The nr. of partner NGO staff trained on income generation strategies, management systems, financial management and procurement

Number of staff 0 10 12 15 Annual

Activity reports Masar Ibrahim and project reports API

M&E(ext. firm)

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ANNEX 2: IMPLEMENTATION ARRANGEMENTS

WEST BANK GAZAMasar Ibrahim/Abraham Path: Economic Development across Fragile Communities

Project Flow Chart

Project Institutional and Implementation Arrangements

1. The Flow Chart depicted above summarizes the implementation arrangements for the project describing the flow of resources, technical assistance, training, knowledge (research data), M&E and results reporting. The following sections provide more background to the implementation arrangements.

2. API is the implementing agency, and the grant recipient responsible of the overall project implementation. API's Regional Director and program staff, who are based in Jerusalem, will manage the implementation of the project activities. API will enter into a service agreement with “Masar Ibrahim al-Khalil”, an NGO in the West Bank to implement part of the activities through the time frame of the project. API will also enter into an agreement with Bethlehem University on the provision of a guide training course. In addition, a variety of technical assistance services will be provided by individual experts throughout the project to both local guides and MIAK and MIAK partners.

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3. Detailed terms of reference have been prepared for MIAK and other service providers and three Single Source Selection terms of reference are part of the approved set of project documents.

4. Whilst the Masar Ibrahim al-Khalil will have a key role in the implementation of the project, project coordination and outreach will include the MOTA, private sector tour operators, Bethlehem University and Network for Experimental Palestinian Tourism Organization (NEPTO), ensuring project linkages across the experiential tourism community.

Background to API and its partners

5. The Abraham Path Initiative (API) is a global organization in both the composition of its staff and board, 26 the vast region of its operations (the wider Middle East), and its partnerships in the region and around the world. Because it was originally established at the Harvard Negotiation Program, API is registered as a 501(c)3 non-profit organization in Boston, MA. The Boston-based staff covers fundraising in the US and Latin America, Board relations, and financial management but does not manage projects in the Middle East. API implementation approach is to partner with local NGOs, when possible, to carry out activities on the ground under the supervision of API’s regional staff. API’s value added to local partners lies in the technical expertise it can provide, the all-path (pan-Middle East) marketing it undertakes, fundraising expertise and its network of travelers and travel media worldwide. Local partners have been leading, and literally guiding API on local outreach, community connections, and tour operations on the ground. The table below summarizes the areas of expertise of API and local partners:

Table 1: areas of expertise between Local Partners and APIAPI Local Partners

Trail development and trail planning. Branding and world-wide-marketing. Institutional development and strategy. Technical advice and training: GIS,

wilderness safety, guide leadership, cartography.

Global network of travel media. Global network of travelers and volunteers.

Itinerary development. Tour operation. Tour logistics. Community outreach (e.g. handcraft

associations, and other CSOs). Government outreach (e.g. MOTA, village

councils). Training of hosts. Homestay improvement.

6. In the West Bank, Abraham Path was developed in partnership with Bethlehem University and three local NGOs, the: (i) Rozana Association, (ii) Siraj Center, and (iii) Palestine Wildlife Society. With the support of API, the three NGOs established a new organization with a specific mandate to develop the Masar in West Bank and Gaza: the Masar Ibrahim al-Khalil. Its official registration was completed in May 2013.

Rationale for implementation through API

26 The current Vice-Chair of API is Palestinian, who also serves on the Board of the Masar Ibrahim al-Khalil. Two other Board members are also from the region.. Board members outside the region are based in Brazil, the Netherlands, the UK, and the US.

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7. API is the implementing agency for the project because it holds: (i) unique technical expertise and skills in the area of long-distance walking trails in the Middle East, and (ii) it has the financial management and the organizational capacity to manage the project locally, in partnership with local organizations.

8. Since the establishment of the first stages of the path in 2008, API has developed 430 km of trail, crossing 40 communities in 4 countries. West Bank and Gaza has been the most successful segment of the path with 182 km and 13 communities. Trail development, supply chain development, and marketing of walking trails are areas of expertise that are rarely present in the Middle East. There are only 5 people who have both developed trails in the Middle East, and written on them internationally published English guidebooks; 3 of these people now work for API (Landis, Dintaman, and Szepesi)27; and the other 2 (Tony Howard and Di Taylor on Jordan and West Bank and Gaza) are volunteering with the project.

List of Project Team: API and Partners

9. Through the implementing agency (API), the following key experts will be deeply involved in the project:

a. David Landis and Anna Dintaman of Village to Village Press (http://www.villagetovillagepress.com). Landis and Dintaman each cumulate over 1 decade and half of long-distance walking experience in over 50 countries. They have researched, published, edited and designed 3 successful guidebooks on long-distance walking; trained communities, guides and other local stakeholders in a wide range of affiliated fields such as wilderness safety, trail development and strategy, marketing, branding and communications; and designed and edited various online and social media portals on walking trails in the Middle East, including the recently launched online guidebook www.abrahampath.org. They have been deeply involved in work for API and its local partners in the region since 2011. Village to Village Press is part of the project as the Technical Training and Trail Marketing Consultant.

b. Stefan Szepesi has been the Executive Director of API since 2012. He has extensive walking experience across the Middle East and is the author of the book Walking Palestine; 25 Journeys into the West Bank. Prior to API, Szepesi worked for the European Union and as Economic Advisor to the Office of the Quartet Representative in Jerusalem. As Executive Director of API, Szepesi will take a supervisory role in the project and his time is not covered under the direct expenses of the project.

27 David Landis and Anna Dintaman have co-founded and developed the Jesus Trail, the first cultural walking trail connecting villages in the Galilee and published Hiking the Jesus Trail with over 4000 sales to date. With an Israeli partner, Landis also co-founded Jesus Trail Tours and was involved in a variety of initiatives to market the trail globally. Landis and Dintaman together also published Hiking the Camino, a guidebook on the world’s best-known long-distance (800 km) walking trail. Stefan Szepesi developed 25 day walks in the West Bank with local communities and individuals from Jenin to Bethlehem; he is the author of Walking Palestine; 25 Journeys into the West Bank, which was published in May 2012 and sold 2300 copies in the first 8 months. Szepesi is the founder of the Hiking Palestine group which has over 275 foreign and Palestinian members. Tony Howard and Di Taylor were the first individuals to develop and promote long-distance walking and outdoor tourism in the Middle East to a global market. They have published over a dozen guidebooks and articles on walking, trekking and climbing in Jordan and also published Walks in Palestine: and the Nativity Trail (2001) as part of the Bethlehem 2000 project.

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Beyond supervision, he will contribute his expertise as an economist and researcher in coordinating and editing the Research Notes that the project will produce.

c. Lis Rhodes is the Chief Financial Officer of API and holds 16 years of experience in financial oversight and management. Rhodes is a Qualified ACCA (Association of Chartered Certified Accountants) with a Business Degree from University Business School, London. The CFO will be responsible for project financial reporting, project audits and oversight of project procurement. Her time is not covered under the direct expenses of the project.

d. API is presently recruiting an experienced Communication Officer to work in the region. The project has strong and ambitious media and communications components, including film, photography, an online guidebook and creative writing, as well as a multitude of community focused events on the path. 50% of the time of the Communication Officer is included under the project budget to ensure professional management of these elements and smooth communications between the World Bank, API and local partners on public communications.

e. Other consultants and staff mentioned in the budget are to be hired on a competitive basis.

Through a Service Agreement with the local Palestinian partner, the Masar Ibrahim al-Khalil (MIAK), the following key experts and their organizations will be deeply involved in the project:

f. Raed Saadeh is the Chairman of the Rozana Association which specializes in agro-cultural tourism in the West Bank and is a founding member organization of the Masar Ibrahim. Saadeh is the President of the Arab (Palestinian) Hotel Association and the co-founder of various organizations supporting Palestinian culture, rural tourism, fair trade and the arts, including the Network for Experiential Palestinian Tourism Organizations (NEPTO).

g. Imad al-Atrash is the Executive Director of the Palestine Wildlife Society, an NGO specializing in the conservation and enhancement of Palestinian biodiversity and is another founding member of the Masar Ibrahim. Al-Atrash has served as a member of the International Council for Bird Preservation and was the first Palestinian to be appointed to the International Ornithological Committee.

h. Michel Awad is the Executive Director of the Siraj Center for Holy Land Studies, an NGO specializing in links between Palestinians and people elsewhere through educational tourism and youth exchange programs, and the third founding member of the Masar Ibrahim. Awad is also an instructor in Travel Management at Bethlehem University.

i. George Rishmawi is the Director of the Masar Ibrahim al-Khalil, a union founded by the above organizations to coordinate community outreach, training, path

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development and communications on the Masar Ibrahim project in the West Bank. Rishmawi is an experienced public speaker, advocacy leader, tour leader and guide, and was one of the initiators of the Nativity Trail in 2000, designing the original itinerary which presently overlaps with the Abraham Path.

j. Dr. Moussa Rabadi is the Director of the Bethlehem University’s Institute for Community Partnership (ICP) and an advisor to the Executive Committee of the Masar Ibrahim Al-Khalil. Bethlehem University has been closely involved in the Masar Ibrahim project for which it has designed a tailor-made local wilderness guide training program which will be executed under the project. Dr. Rabadi holds a PhD from the Maastricht School of Management.

Financial Management, Disbursements, Procurement and Organizational Capacity

10. API has a track record of managing international funds, both as core contributions to the regional project across the Middle East, and for specific localized projects on the path, implemented through local partners. The organization’s staff has extensive experience in the area of capacity development and training, both in the field of rural/adventure/eco-tourism, as well as in institutional development.28 The organization’s international network is extensive, which allows it to find and draw on external expertise for development, training and promotion of the path, including in non-Anglophone countries such as Germany, France, and Spain.29

11. The Financial Management, Disbursement and Procurement arrangements are described in section VI of the main document (Appraisal Summary).

Monitoring and Evaluation (M&E)

12. Section IV. B in the Project Paper addresses the M&E arrangements for the project.

28 API’s Executive Director has 6 years of experience –including 4 years in West Bank and Gaza- in the design, implementation, monitoring and evaluation of European Commission technical assistance projects, both to private sector organizations, government, and NGOs. 29 Examples include Cambridge University and Leeds Met University (UK), Sorbonne University (France), the World Tourism Organization (UNWTO), the UN Alliance of Civilizations (UNAOC), Outward Bound, SOLO Wilderness Medicine, Associazione Europea delle Vie Francigene and the Abraham Path chapters (volunteer groups) in Brazil, Spain and the UK.

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ANNEX 3: LIST OF SUGGESTED TOPICS FOR ACTION RESEARCH NOTES

The team will select 10 topics from the following list to research.

Nr. Suggested Title Data/analytical sources for note

Suggested TimingTopic

1 Walking the Other Face of t: experiential tourism across fragile communities in the West Bank (INTRODUCTION PAPER)

Project proposal/design as approved by WBAPI Staff

Start of project: 1-3 monthsThis serves as the scene setter, explaining the why of the project, its objectives

and its fit within SPF trust fund frame; it will also introduce in broad terms the research themes of the project (this note raises awareness on project objectives and planned activities)

2 The supply chain of long-distance trekking West Bank Action Research ConsultantAPI staff

6 monthsPaper explaining the various components of the specific trekking niche (the basic ABC of trekking tourism) within the larger experiential tourism sector; which elements of the chain stand out compared to conventional tourism?; and what is the level of these elements in the West Bank? In addition to the supply chain elements, a focus on a) knowledge/skills & exposure to int. standards; and b) institutional gaps.

3 Abraham Path in the West Bank: expectations step by step… Action Research Consultant

12 monthsWhereas #2 focuses on the supply side, this paper describes the demand side: analyzing (potential & actual) customer expectations, feedback surveys of actual walkers, cost components, etc.

4 The ABC of walking across a conflict zone Action Research ConsultantAPI staff

6 monthsIs the follow-up of #2 but with a specific focus on the supply side constraints (and solutions) within a conflict setting: analyzes gaps/solutions that relate directly to the conflict frame: e.g. the issue of ABC issue and how technology can get around it; and the perception battle around safety and hospitality of the region.

5 Walking from H O S T I L I T Y to H O S P I T A l I T Y: the power of story and connection in experiential tourism

Action Research ConsultantWilliam Ury/ Raed Saadeh input key

9 months

Explains anthropological “assets” of AP concept in theory and practice.

6 Measuring the impact of walking the Abraham Path (I) Action Research ConsultantAction research firm

9-12 months into projectIntroductory paper on methodology of measuring social and economic impact of

experiential tourism and in particular long distance walking (on the challenges involved and solutions to address them); explains data collection methods.

7 The economy of walking in the West Bank (II) Action Research ConsultantAction research firm

16 monthsFollows #6: discusses economic impact/estimated size of Palestinian walking sector (AP and other): raises awareness + discusses first ever data estimating the total size and potential.

8 The social impact of tourism step by step (III) Action Research ConsultantAction research firm

20 monthsFollows on #6 and #7: discusses the social impact of AP: analytical and anecdotal evidence from surveys and interviews, considers household effects, cultural effects and wider issues such as cultural valuation of small villages, rural areas, protection of nature, etc.

9 Navigating an inclusive path to prosperity: fair pricing models, income distribution and path extension in Palestinian experiential tourism

Action Research Consultant

18 months

Analyzes who gets what and how relatively high costs can be overcome; discusses what a fair pricing model can look like in products where communities are at the heart of the experience. Discusses whether the pie grows if the path is extended to more communities, or whether growing the path means a redistribution of its benefits.

10 Blazing the future: the way-marking of sustainable walking trails Action Research 12 months

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ConsultantOn the importance of way-marking for the growth of trails and the number of visitors (walkers); discusses the institutional and technical aspects of different way-marking systems around the world.

11 High tech talk low-tech walk?: the pros and cons of technological solutions for safe and pleasurable walking in the West Bank

Action Research ConsultantAPI team

12 months

On the attractions, pitfalls, advantages and disadvantages of investing in technology to promote community-based tourism through walking. Should the West Bank have an AP walking App? And, what would it look like? What problems would it solve? Essentially, this is a first feasibility paper for a potential future tech project.

12 A way-marking system for the West Bank Action Research Consultant

18 monthsFollow-up of note #10 and related to #7: describing the challenges and opportunities of a Palestinian way-marking system, the opinions of actors in the field, the present capacity of government and non-government institutions and what an sustainable investment into a system could look like. The paper is a stepping stone to a full feasibility study on a full project addressing the issue.

13 Walking together: non-profits and the private sector on the Abraham Path Action Research Consultant

24 monthsDiscusses private sector development and hiking/adventure tourism: AP as a case study where a concept is pioneered by (local) non-profits, and then rolled out and brought to more scale by involving tour operators. What is the right order and sequencing?; how can the two sides complement each other?

14 Champions of the path: the role of youth and women in community oriented tourism

Action Research Consultant

20 months

Discusses the key role these two groups have; far beyond being merely beneficiaries, women and youth groups are the pillars without which the AP concept would be empty and hollow. Examples are discussed of multifaceted engagement of these two groups, including through activities in the project itself.

15 The cultural heartland: branding the perceived periphery in the West Bank Action Research Consultant

20 monthsDiscusses the unique role experiential and trekking tourism can have in turning the characteristics that supposedly condemn small villages to the periphery, into the very assets for tourism, cultural development and specialized local crafts.

16 East Bank West Bank Adventures the West Bank Action Research ConsultantAPI staff

24 monthsThis paper explores the potential synergies between the experiential/ adventure/ trekking sectors on both sides of the Jordan river. Data and analysis will be fed by two knowledge exchange trips to Jordan made by Palestinian partners and technical experts under the project.

17 Walking to scale: the potential of long-distance walking in the Middle East Action Research ConsultantAPI staff

27 monthsGoing to scale in this type of tourism: the case of Abraham Path. This paper summarizes the data to date measuring social and economic impact and the nr of beneficiaries; and discusses an advanced modeling of its scale if applied at the regional level; that is: beyond the Palestinian West Bank)

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ANNEX 4: PLANNED COMMUNICATION ACTIVITIES

1. Opportunities generated within the project:

(a) Film: the project will procure a local audiovisual company to: Improve the quality and types of film that show what the path is for communities,

walkers, guides, etc. This primarily has a marketing function for the path and the local Palestinian partners and communities.

Document the project itself: interviews with the people most closely involved in implementing the project; local partners, experts, researchers, guides, trainers, hosts, etc. This primarily documents the process of creating the project over time.

(b) Photography: the project will procure one or more local photographers to document the path, project activities and expand the West Bank specific content in the Online Guidebook www.abrahampath.org

(c) Publications: e.g. results of Action Research component published by API(d) Press releases: at milestone moments: e.g.: guides receiving certification, communities

trained, path extended by x km, events on the trail with youth, etc.

2. Complementarity of some existing World Bank and API communication channels: 

(a) Facebook Pages (e.g. https://www.facebook.com/WorldBankMiddleEastNorthAfrica)(b) Twitter: https://twitter.com/WorldBank(c) YouTube: http://www.youtube.com/user/WorldBank (d) WB newsletter / AP newsletter: http://us5.campaign-archive1.com/?

u=a982e49747af1e4d1e2aa3f77&id=e8ade1a180&e=136e3871ab(e) LinkedIn: World Bank Page(f) Various WB MENA blogs / AP blog: http://www.abrahampath.org/connect/blog/

3. API general outlets through which we can credit the World Bank for their support:(a) Abraham Path Online Guidebook: partner and sponsor sections:

http://www.abrahampath.org/connect/our-partners/international-partners/ http://www.abrahampath.org/connect/about-us/sponsors/

(b) Annual Reports(c) Newsletters(d) Social Media(e) AP blog: http://www.abrahampath.org/connect/blog/

Public speaking: API staff and/or Palestinian partners could speak at certain World Bank events/conferences on the project (preferably financed outside the project on case by case basis)

4. Dedicated Staff: API’s Communication Officer, based in Jerusalem, will be on task to coordinate all project-related communications with the World Bank.

Ms. Mary Koussa, Communications Associate (MNAEX, CO), will support implementation of project’s communications activities.

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ANNEX 5: SIMPLIFIED OPERATIONAL RISK ASSESSMENT FRAMEWORK (ORAF) FOR RETFProject Stakeholder Risks Rating Substantial

Description:(i) Limited previous support for experiential tourism by the government, and limited integration between experiential tourism NGOs and private tour operators.

Risk Management: The project will engage the Ministry of Tourism and Antiquities (MOTA) in all stages to develop/discuss activities, communicate progress, and ensure continuous support to project implementation. The project will plan integration activities between experiential tourism NGOs and private tour operators. Such activities may include “familiarization trips”, customized marketing collaterals, and training of experiential tourism guides.Resp: Client Due Date: December 31, 2015 Status: Not Yet Due

Description :(ii) Local communities in some rural areas may not socially accept foreign visitors in their villages and/or residences.

Risk Management: The project partners have a track record in handling this with the path functioning in 13 communities already. The project components will include an extensive community outreach activity, which will include sessions with civil society organizations and local councils to clarify the project targets and benefits to rural community. Outreach activities will also include home-stay orientation for host families. The project is also expected to mitigate this risk by engaging community based organizations in development of the path, coordination of activities, and recruitment of local guides. Finally, the project will also be fully transparent on its eligibility criteria, processes, and grants making.Resp: Client Due Date: December 31, 2015 Status: Not Yet Due

Implementing Agency Risks (including fiduciary)Capacity Rating: Substantial

Description:(i) Abraham Path Initiative (API), the implementing agency, has shown strong capacity in implementing donor projects. However, API has no previous experience with Bank financed projects. The local partner (Masar Ibrahim Al Khalil) is a newly established NGO that has basic systems and limited personnel.

Risk Management: A capacity assessment of the implementing agencies was carried out to better understand the current structure and systems in the organizations, and determined the need for specific actions to overcome observed weaknesses. One of the central pillars of the project is capacity building for the partner organizations in the experiential tourism sector, including the Masar Ibrahim itself. This includes training in financial systems, strategic planning, procurement, sponsorship/fund-raising, etc.Resp: Bank and Client Due Date: December 31, 2015 Status: Not Yet Due

Description:(ii) The implementing agency has to coordinate with numerous stakeholders in public, private, NGO, and academic sectors to coordinate risks among stakeholders both in terms of mandates\agendas and later in terms of implementation capacity.

Risk Management: Mapping of key stakeholders, roles, and responsibilities will be conducted in the early implementation phase of the project, and then discussed and endorsed by the advisory committee of the project. Assessment for stakeholders’ capacity will follow to identify development needs, and support capacity building as needed to ensure proper implementation against agreed roles.

Resp: Client Due Date: July 31, 2014 Status: Not Yet DueGovernance Rating: Substantial

Description: Way marking the path in area “C” may face challenges related to limited control or permission for works.

Risk Management: Only “soft-works” will be carried out in area “C”. Way marking and signage of the path will follow professional practices, and the project will provide an adequate budget for maintenance.Resp: Client Due Date: March 31, 2016 Status: Not Yet Due

Project RisksDesign Rating: Low

Description: Selection of project beneficiaries, including main beneficiary villages, candidates for wilderness guide training, and contractors. Risk of poor financial management coordination

Risk Management: Selection of project beneficiaries should follow specific criteria, developed in consultation with the project’s advisory board, and carried out in partnership with relevant stakeholders. API will assign a qualified finance specialist to handle the Project’s financial management and

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between API and local counterparts which may lead to delays in project disbursements.

disbursement arrangements. Also, a financial management manual will be developed to identify clear roles and responsibilities and to coordinate the financial management arrangements between API and local counterparts.Resp: Client Due Date: July 31, 2014 Status: Not Yet Due

Social & Environmental Rating: LowDescription: No major impacts are expected under component 2 of the project given that the project will only finance soft “non-physical” works.

Risk Management: The team will monitor project activities to ensure than no environmental or social risks will rise during implementation.Resp: Client and Bank Due Date: March 31, 2016 Status: Not Yet Due

Program and Donor Rating LowDescription: Overlap of activities with other donors interested in supporting tourism sector development in the country (e.g. USAID and AFD).

Risk Management: Coordination with relevant donors to synergize planned activities in the sector, so as to ensure complementarity and integration.Resp: Client Due Date: July 31, 2014 Status: Not Yet Due

Delivery Monitoring Rating: LowDescription:Monitoring of project delivery will be challenged due to the spread of activities across the West Bank.

Risk Management: Monitoring of delivery of services by API and Masar Ibrahim and its partners will be incorporated into the terms of operations for each component. Requirements for beneficiary reporting will be incorporated into the grant agreements. The areas where the Path is presently used and areas where it will be used after extension are all areas that are easily accessible (no serious movement restrictions) by API, project partners and by World Bank staff.Resp: Client Due Date: December 31, 2015 Status: Not Yet Due

Other Rating: HighDescription: Possibility of an upsurge in political unrest and insecurity could derail project implementation, which could make it difficult for implementation of project components, and difficult to promote the Path or attract foreign tourists.

Risk Management: There is little that can be done to mitigate for this risk but it can be noted that the path has grown in use and length since 2008 and in spite of political upheaval and security incidents in the region. If there is a generalized impact due to some exogenous deterioration in circumstances at the national level, the project can only mitigate the risk by including crisis management processes that would likely include stabilization measures and potential shifts between components of the project.Resp: Client Due Date: December 31, 2015 Status: Not Yet Due

Overall Risk Rating: SubstantialComments: The overall risk for this operation is Substantial. The risk level is suggested based on the external factors in the country and the limited World Bank experience of the implementing agency. The project specific/controllable aspects should not encounter a substantial risk in implementation, given that there is already a demonstration/pilot operation that has been effective over the past two years.

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