As social conditions deteriorated in the West Bank and Gaza, access to critical public services was significantly impacted, and NGOs (nongovernmental organizations) stepped in to meet basic needs. In December 2006, the Executive Directors approved the Third Palestinian NGO Project, continuing the Bank’s decade-long strategic partnership with Palestinian NGOs. The project aims to build the capacity of Palestinian NGOs by focusing on issues of good governance, accountability, and transparency and by helping them empower and mentor community-based institutions so that these institutions can better respond to the needs of vulnerable groups on a sustainable basis and can become reliable platforms for leveraging funds from other donors. A participatory monitoring and evaluation system is being set up as a critical feature of the project. The system will track and document the flow and use of funds, the efficiency and effectiveness of utilization, responsiveness to priority needs, and the impact on recipients.