The objective of the Additional Financing (AF) to the Second Phase of Municipal Development Program Project for West Bank and Gaza is to improve the Recipient's municipal management practices for better municipal transparency and service delivery. The changes under the AF include: (i) a change in the project development objective, or PDO to reflect the Gaza municipal service emergency response; (ii) a restructuring of the project components to include an additional component for the Gaza Emergency investments financed by the AF; (iii) a revision of procurement arrangements in line with OP/BP10.00 paragraph 12 to allow simplified procurement procedures; and (iv) a revision of the RF to include result indicators measuring the performance of activities financed by the AF. A one year extension of the closing date of the original grant, from February 28, 2017 to February 28, 2018 would be necessary to absorb the additional funds. No changes would be made to the implementation arrangements with the Municipal Development and Lending Fund (MDLF) being fully responsible for all project implementation, safeguards, fiduciary, monitoring and reporting arrangements. The current safeguards instruments in place for the parent operation are sufficient and in full compliance with the Bank’s OP/BPs. All impacts of the emergency AF will be addressed through the existing safeguards instruments.