The impact of the Israeli occupation on the development of the water sector over the past decades has extended to affect the capacity and performance of water service providers. The inefficiency of infrastructure and the lack of institutional capacity to ensure water delivery to all citizens have resulted in high water losses, weak revenue collection, and inadequate billing systems. To address these challenges, the Palestinian Water Authority operates within the framework of its legally mandated responsibilities to establish efficient and sustainable water sector institutions in accordance with Palestinian water law. These institutions include:
1. National Water Company:
It is wholly owned by the state of Palestine and is responsible for the management of water resources (bulk water). The key achievements to date include:
- The company has been formally registered as a state-owned entity
- The strategic plan has been finalized and approved by the company’s Board of Directors, establishing the long-term vision and priorities of the company. A three-year business development plan has also been completed to ensure financial and operational sustainability.
- The West Bank Water Department was restructured, and its staff were assigned according to the new organizational structure of the National Water Company.
- Development of the organizational structure to provide a clear frame for the governance of the company and its operational management.
- Development of the operational manual for main utilities.
- Network and equipment assessments have been conducted: priority needs in storage facilities were identified, including equipment to reduce water losses. Procurement processes for system priorities have begun to improve the company’s efficiency, and the evaluation of the department’s assets has also started in preparation for their transfer to the National Water Company.
- Work is currently underway to solve high outstanding debts owed by water service providers to the benefit of the West Bank Department, reaching 1.8 billion ILS till the end of 2024. For this reason, a special committee was formed by the Prime Minister consisting of all relevant institutions as the Ministry of Finance, the Ministry of Local Government, the Water Authority, and the Water Sector Regulatory Council. The committee developed proposed mechanisms to solve the issue of accumulated debts on the local authorities, which is considered the basis to achieve financial balance and financial sustainability for the National Water Company when finally established. At present, work is underway to implement suggestions approved to start reducing the debt level.
The Gradual launching of the National Water Company will start by the beginning of 2026, and in Gaza, a bulk water supply unit was established
(nucleus of National Water Company )
2. Regional Water Utilities:
Water Authority exerts significant efforts to establish such utilities in the context of a realistic vision to decrease the number of water service providers gradually to smaller ones, from the current situation to small and/or medium-sized utilities, ultimately reaching four regional water utilities (Three in the West Bank and one in the Gaza Strip). The Water Authority has prepared the necessary plans and the overall legal framework for their establishment, including drafting the regulations for establishing and licensing water utilities, and the model internal system for the utilities. Work is underway with water service providers to move and form joint water councils to establish Regional Water Utilities:
- Work is underway to establish 4 utilities in the West Bank and Gaza Strip ( North east of Jenin, Salfit, Yatta, East west of al-Quds, east west of Hebron, and Gaza)
- Follow up with CMWU in Gaza Strip to transform it into a water utility in the frame of the reform process, including the transfer of water services from the municipalities to the coastal municipality utility, as well as technical, financial, and administrative reform.
- Work is underway to establish a utility for north east of Jenin, and specify procedures required to provide legal support necessary for its establishment.
- Establishing budget portal for Regional Water Utilities.
- Follow up on establishing a utility north east of Jenin, which is expected to start on June 2025
- Updating on the establishment of utility regional plan for Gaza Strip.
- Following up on the arrangements to transfer wastewater services from the municipalities to the Jerusalem Water Undertaking, as part of institutionalizing a regional water utility for the Jerusalem Water Undertaking, in line with the government’s and the Water Authority’s vision for establishing regional water utilities.
- Enhancing institutional structure in the frame of managing the utilities, presenting services in the context of water services council, North Hebron water and wastewater Services council, and Salfit Municipality Water Department. (Water Worx)
3. Water Authority works in coordination with Water Sector Regulatory Council. It is an independent institution at the financial and administrative level which reports directly to the Council of Ministers. Its main function is to oversee the operational aspect for service providers, including production, transmission, distribution, consumption and wastewater system management to guarantee the quality and efficiency of water and sanitation services in Palestine. It also reviews the water tariffs for service providers, thus, contributing to the restoration of financial balance.
