Development of a National M&E System in Palestine

Description of the Project: Local Governance Reform Programme (LGRP) III The "Multi-Donor Action (EU-BMZ) - Strengthening Capacities and Institutional Readiness of Reform Actors in Palestine" co-financed by the European Union (EU) and the Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, aims to enhance the institutional capacity, operational effectiveness, and coordination functions of MoFP and PMO ERO as leading entities in national planning and reform management. The Action will support MoFP in its role as the central coordinating body for national planning by enhancing its capacity to embed data-driven policymaking, ensure coherent approaches across line ministries, and improve coordination across all levels of governance. The Palestinian Authority (PA) faces significant institutional and technical challenges in managing, measuring, and demonstrating public sector performance. Monitoring and evaluation (M&E) functions across line ministries and agencies (LMAs) are narrowly defined, fragmented, and largely disconnected from planning and budgeting decisions. Indicators are poorly formulated, feeder data is weak and uncoordinated, and M&E reporting serves administrative compliance rather than evidence-based management. The Strategic Results Framework (SRF), which is the principal instrument for measuring national results delivery, lacks a usable structure, theory of change, and coherent indicator set. No overarching national M&E strategy exists, and data management responsibilities across government institutions remain undefined and unanchored. Description of Work and Services to be Provided: structured around eight work packages (WPs) covering the full cycle from system design through operationalization, capacity development, and digital enablement. WP1: Inception, Alignment, and Mobilization. It establishes the analytical and operational foundation for the assignment. The contractor reviews and consolidates the OECD/Sigma diagnostic findings, conducts targeted design assessments to collect operational information required for subsequent WPs, including data feasibility mapping, institutional baseline mapping, planning-budgeting process validation, pilot site readiness assessment, and a digital systems inventory. The contractor establishes the governance and coordination arrangements, detailed workplan, stakeholder engagement plan, and risk register. The primary deliverable is a comprehensive Inception Report. WP2: National M&E System Framework and Governance. It produces the foundational design of the national M&E system, developed jointly with MoFP and key government stakeholders rather than as an externally designed product. It defines the system"s purpose, scope, institutional roles, governance mechanisms, core M&E processes, data governance principles, integration logic with planning and budgeting, evaluation framework, and system stewardship mandate. The deliverable is a government-endorsed National M&E Framework. WP3: Results and Measurement Architecture. It redesigns the Strategic Results Framework using a methodology-first, pilot-based approach that accounts for the current limitations of the national development plan. The contractor develops a comprehensive SRF methodology and standards framework designed for the next national planning cycle, conducts a participatory results clarification exercise with a pilot of sectors, and produces a transitional indicator set for the remaining current planning cycle to enable piloting. Deliverables include the revised SRF Methodology Document and the Updated SRF and Indicator Framework. WP4: Institutional and Functional Design. It defines the organizational arrangements required to anchor M&E and data management as permanent government functions. Through a participatory process with MoFP and LMAs, the contractor develops functional design models, organizational options with feasibility assessments against General Personnel Council (GCP) civil service frameworks, RACI matrices, workflow systems, and HR alignment proposals. The deliverable is an Institutional and Functional Design Report. WP5: Integration with Planning, Budgeting, and Oversight. It defines how M&E information can flow into and influences core government decision-making processes, including annual planning, budget preparation, and performance oversight at CoM level. The contractor maps actual planning and budgeting processes, assesses linkage feasibility, designs standard decision-informing M&E products, and proposes integration mechanisms. Deliverables include M&E Integration Framework and Updated Planning and Budgeting Guidance Notes. WP6: Operationalization and Piloting. It translates the system design into operational reality through co-developed SOPs, data collection instruments, reporting templates, and interim digital tools, tested with 3-5 pilot LMAs selected on the basis of a readiness assessment conducted in WP1. The pilot tests real workflows and data flows, generating feedback that is incorporated into system refinements. The deliverable is a Pilot Implementation Report. WP7: Capacity Development, Change Management, and Sustainability. It builds the professional and institutional capacities required for sustained system operation. The contractor develops competency frameworks, training programs, and materials; delivers training in two waves; designs and initiates change management and communication strategies; proposes institutionalization and incentive mechanisms in coordination with GPC; and, importantly, builds system stewardship capacity enabling MoFP and LMAs to maintain, update, and evolve the system independently after assignment conclusion. Deliverables include the Capacity Development and Change Management Strategy, Competency Frameworks and Training Roadmap, Training Modules and Materials, System Stewardship Package, and System Handover and Transition Protocol. WP8: Digital Enablement Design and Procurement-Ready Specifications. It produces the complete technical basis for procuring a digital M&E platform. The contractor defines functional requirements, designs the data architecture and interoperability framework, conducts a technology options assessment including AI and emerging technology analysis, designs a public results portal concept, and produces a vendor-neutral technical and procurement specifications package.