Finance for Jobs III

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The development objective of Third Finance for Jobs (F4J III) Project for West Bank and Gaza is to sustain and expand the scope of the innovative financial instruments tested under F4J I and II, and to incentivize private investment mobilization and job creation. There are three components to the project, the first component being development impact bond for skills development for employment. The Development Impact Bond (DIB) is a results-based financing tool designed to address the high unemployment challenges that cannot be tackled by traditional government-sponsored job and training programs. The second component is the investment co-financing facility. Finally, the third component is the project management. Besides the three components, an amount equaling 0.5 million dollars will remain unallocated in case the need arises during project implementation to add funding to the other components of F4J III. One lesson learned from previous projects in the SOP is that unallocated funds have enhanced the flexibility of the tested instruments and their adaptation to changing environments, for example increasing needs under the DIB due to better-than-expected results, or adjustments to ICF to support additional recovery and reconstruction efforts. Hence, unallocated funds will be assigned to project activities during project implementation to address unexpected challenges and events as they arise.