COMMISSION DECISION. on the financing of humanitarian actions in Nepal from the general budget of the European Union (ECHO/-FA/BUD/2010/01000)

EUROPEAN COMMISSION Brussels, xx.xx.xxxx C(2010) XXX final COMMISSION DECISION of [ ] on the financing of humanitarian actions in Nepal from the general budget of the European Union (ECHO/-FA/BUD/2010/01000) EN EN

COMMISSION DECISION of [ ] on the financing of humanitarian actions in Nepal from the general budget of the European Union (ECHO/-FA/BUD/2010/01000) THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Council Regulation (EC) No.1257/96 of 20 June 1996 concerning humanitarian aid 1, and in particular Article 2 and Article 15(3) thereof; Whereas: (1) During the early 1990s, 80,000 Bhutanese people of Nepalese origin left or were expelled from Bhutan and settled in refugee camps in the Jhapa and Morang districts in South East Nepal; (2) The number of refugees in the seven United Nation's High Commissioner for Refugees (UNHCR)-managed camps has later been estimated at 108,000 people, of whom more than 20% were born in the camps; (3) In accordance with the Nepalese Government policy of non-integration, the refugees do not have the right to develop economic activities outside the camps and rely therefore on external support for their survival; (4) In March 2001, Nepal and Bhutan started a joint verification process to determine possible repatriation of the refugees, but this exercise was suspended in 2003, thus necessitating continuous support to the refugees; (5) While 31,000 refugees have been resettled on a voluntary base in third countries, 81,000 refugees are still scattered across seven different camps in Nepal and are totally dependent on international aid; (6) So far, no political solution has been found in favour of the refugees who are victim of a forgotten crisis and donor fatigue; (7) To reach populations in need, humanitarian aid should be channelled through international organisations including United Nations (UN) agencies. Therefore the European Commission should implement the budget by joint management; 1 OJ L 163, 2.7.1996, p. 1. EN 2 EN

(8) An assessment of the humanitarian situation leads to the conclusion that humanitarian aid actions should be financed by the European Union for a period of 12 months; (9) It is estimated that an amount of EUR 1,500,000 from budget article 23 02 02 of the general budget of the European Union is necessary to provide humanitarian assistance to over 81,000 Bhutanese refugees in Nepal taking into account the available budget, other donors' contributions and other factors. The activities covered by this Decision may be financed in full accordance with article 253 of the Implementing Rules of the Financial Regulation; (10) The present Decision constitutes a financing Decision within the meaning of Article 75 of the Financial Regulation (EC, Euratom) No 1605/2002 2, Article 90 of the detailed rules for the implementation of the Financial Regulation determined by Regulation (EC, Euratom) No 2342/2002 3, and Article 15 of the internal rules on the implementation of the general budget of the European Union 4. HAS DECIDED AS FOLLOWS: Article 1 1. In accordance with the objectives and general principles of humanitarian aid, the Commission hereby approves a total amount of EUR 1,500,000 for the financing of humanitarian actions in Nepal from budget article 23 02 02 of the 2010 general budget of the European Union. 2. In accordance with Article 2 of Council Regulation No.1257/96, the principal objective of this Decision is to provide food assistance to Bhutanese refugees in Nepal. The humanitarian actions shall be implemented in the pursuance of the following specific objective: To ensure adequate food distribution and to contribute to improving the nutritional status of Bhutanese refugees. The full amount of this Decision is allocated to this specific objective. Article 2 1. The period for the implementation of the actions financed under this Decision shall start on 1 July and shall run for 12 months. Eligible expenditure shall be committed during the implementing period of the Decision. 2. If the implementation of individual actions is suspended owing to force majeure or other exceptional circumstances, the period of suspension shall not be taken into account in the implementing period of the Decision in respect of the action suspended. 2 3 4 OJ L 248, 16.9.2002, p.1. OJ L 357, 31.12.2002, p.1. Commission Decision of 5.3.2008, C/2008/773 EN 3 EN

3. In accordance with the contractual provisions ruling the Agreements financed under this Decision, the Commission may consider eligible those costs arising and incurred after the end of the implementing period of the action which are necessary for its winding-up. 4. The Authorising Officer may, where this is justified by the humanitarian situation, extend the duration of the Decision for a maximum of 6 months provided that the total duration of the Decision does not exceed 18 months, in accordance with Article 90.4 of the Implementing Rules of the Financial Regulation. Article 3 1. In accordance with Article 253 of the Implementing Rules and having regard to the urgency of the action, the availability of other donors and other relevant operational circumstances, funds under this Decision may finance humanitarian actions in full. 2. Actions supported by this Decision will be implemented by international organisations. 3. The Commission shall implement the budget: by joint management with international organisations that are signatories to the Framework Partnership Agreements (FPA) or the Financial Administrative Framework Agreement with the UN (FAFA) and which were subject to the four pillar assessment in line with Article 53d of the Financial Regulation. Article 4 This Decision will take effect on the date of its adoption. Done at Brussels, For the Commission Peter Zangl, Director-General EN 4 EN

EUROPEAN COMMISSION DIRECTORATE-GENERAL FOR HUMANITARIAN AID AND CIVIL PROTECTION - ECHO Humanitarian Aid Decision 23 02 02 Title: Description: Location of action: Commission Decision on the financing of humanitarian Actions in Nepal from the general budget of the European Union. Food Aid for Bhutanese refugees. 7 refugee camps located in the eastern districts of Morang and Jhapa of Nepal. Amount of Decision: EUR 1,500,000 Decision reference number: ECHO/-FA/BUD/2010/01000 Supporting document 1 Humanitarian context, needs and risks 1.1 Situation and context Since the early 1990s, more than 108,000 Bhutanese refugees have been living in UNHCR camps in the eastern districts of Nepal. This includes approximately 20% of the country's population. 1 The first refugee camp in Nepal was established in 1990 after thousands of `Lhotsampas fled Bhutan fearing for their lives when the Bhutanese Government issued new citizenship rules disenfranchising many ethnic Nepalese who had been living in the country since the 19th century. 2 The Bhutanese Government considered the refugees as migrants with no right to live in Bhutan. At the same time, however, these refugees not have the right to work or to own land in Nepal and therefore rely entirely on external assistance for their survival. 1 http://www.developmentportal.eu/wcm/mos/frontpage/itemid,7346/limit,10/limitstart,210/ 2 IRINN News, NEPAL, "Repatriation or resettlement for Bhutanese refugees?" See at http://www.irinnews.org/report.aspx?reportid=84934# ECHO/-FA/BUD/2010/01000 1

In November 2007, the third country resettlement of Bhutanese refugees from the seven camps in eastern Nepal began with strong support from the Government of Nepal, the International Organization for Migration (IOM), and resettlement countries. 3 According to the United Nations High Commissioner for Refugees (UNHCR), more than 31,000 Bhutanese refugees have been resettled, and more are expected to be in the coming months. Most of them have resettled in the USA, with the rest resettling in Australia, Canada, New Zealand, Norway, Denmark and the Netherlands. 4 While a large majority of refugees have declared an interest in resettlement, many refugees would prefer to return to Bhutan or stay in Nepal with a work permit. In any event, without a political solution, it will take several years at the current rate of progress for all the refugees to be resettled. The USA, the United Kingdom, Canada and Denmark have said they will exert pressure on Bhutan for the repatriation of Bhutanese refugees living in the eastern part of Nepal. During a visit to a Bhutanese refugee camp in Morang on 2 June 2010, envoys of these countries pledged they would exert pressure on Bhutan for the repatriation of refugees, along with third country resettlement. These envoys agreed that the international community has usually prioritised repatriation rather than third country resettlement, but it is expected that even in the best scenario where negotiation is possible, this will take some time. 1.2 Identified humanitarian needs The main impediment for these refugees is that the Nepalese Government has been very firm in not allowing any activity that might give a more permanent status to the refugees, with an official policy of non-integration. Nepal is not a signatory to the 1951 Refugee Convention. Thus, refugees are considered to be foreigners with no political rights. Economic activity and property ownership are not allowed. While refugees have freedom of association, the Government s policy of non-integration limits refugees access to the economy. As such, they have little means to provide for their basic sustenance without external assistance. Consequently, no land has been donated for even the most basic cultivation, and, officially, refugees are not allowed to seek work outside, or to set up small enterprises within the camps. In reality, many young adults find work in neighbouring villages and fields (mostly unskilled), and some have left to become teachers in other parts of Nepal. However, refugee workers do not earn much, as local contractors take advantage of the illegality of the situation to impose extremely low wages. Moreover, local unions often protest to ensure that employment opportunities for Bhutanese refugees remain minimal. Therefore refugees struggle to maintain a household income, and rely almost entirely on World Food Programme (WFP) food rations, and vegetables and a number of non-food items supplied by UNHCR. Many try to grow a handful of vegetables on small plots of land 3 UNHCR Web Site, Briefing Notes, "Over 20,000 refugees resettled from Nepal", 8 September 2009, See at http://www.unhcr.org/4aa641446.html 4 IRINN News, NEPAL, op. cit., ECHO/-FA/BUD/2010/01000 2

between houses (in most cases between 1 to 3 square metres), with the assistance of the WFP s Home and Pot Gardening Projects (which was handed over to the refugees in 2004); other micro-projects include vocational training and small income-generating activities for women, but the possibilities to further develop such activities remain limited. The main problem with food rations are the occasional delays in supply due to shortage of WFP funds, last minute procurement and frequent transport strikes and other blockades. There is also a problem with the quality of the food, highlighted in the Commission's Directorate-General for Humanitarian Aid and Civil Protection (DG ECHO) monitoring reports, and subsequently addressed by WFP in coordination with the Government s local Centre for Quality Surveillance. As the Bhutanese refugees are victims of a forgotten crisis and of donor fatigue, WFP has been experiencing some difficulties in funding its operation in the camps. Therefore, significant further disruption in food delivery (quantity and quality) is likely to result in a deteriorating humanitarian situation. This would put the refugees at considerable risk of severe malnutrition related diseases, reversing the progress made in their nutritional status achieved through steady food assistance. The most vulnerable refugees (malnourished children, elderly, pregnant woman), all presently assisted under a supplementary feeding programme, would suffer the most if emergency rations were not provided. Acute malnutrition and micro-nutrient deficiency disorders are already a concern inside the camps, but are lower than corresponding figures in the host districts of Morang and Jhapa 5. Both Bhutan and Nepal refuse to accept the refugees as citizens of their country. All this makes them almost entirely dependent on international assistance to meet their basic needs. 1.3 Risk assessment and possible constraints 'Bandhas' (strikes and blockades) can delay food transport and distribution. Security in the camps has become more manageable and stable since the beginning of resettlement. However, political activity and anti-resettlement groups still voice their presence in the camps and several refugees are still against this option. 2 Proposed DG ECHO response 2.1 Rationale Nepal is not a signatory to the 1951 Refugee Convention. Refugees are considered foreigners without political rights. Given the non-integration policy of the Nepal Government, along with camp rules forbidding employment outside the camps, refugees have minimal opportunities to become self-reliant in meeting their basic needs. Therefore food assistance is critical in maintaining the refugees nutritional 5 JAM 2004 draft report. At present, due to WFP/UNHCR intervention, the rate of global acute malnutrition among children under five is stable at 8.4% in the refugee camps. ECHO/-FA/BUD/2010/01000 3

status and well-being. Moreover, the Government of Nepal does not have the resources to substitute food assistance support. These Bhutanese refugees are victims of a forgotten crisis and donor fatigue. As a consequence, in October 2009, the WFP had to cut the rations because of a lack of funds. However, assisting these refugees corresponds to the core mandate of DG ECHO. DG ECHO will cover several months of the food needs of the refugees who will receive the classic food package: rice, pulses and vegetables, vegetable oil, sugar, salt and a wheat soya blend. Other donors will finance the remaining part of the WFP programme. The DG ECHO response will also contribute to improving and/or stabilising the nutritional status of the refugee population, particularly among vulnerable groups thanks to a supplementary feeding programme. 2.2 Objectives - Principal objective: to provide food assistance to Bhutanese refugees in Nepal. - Specific objectives: to ensure adequate food distribution and to contribute to improving the nutritional status of Bhutanese refugees. 2.3 Components - To distribute basic daily food rations to all the refugees in the camps. - To distribute supplementary daily food rations to at least 2,400 vulnerable refugees. - To provide vocational training, pot-gardening and small income generating activities to approximately 29,036 vulnerable refugees Sector Food Assistance Nutrition Number of beneficiaries 81,000 (planning figure) 2,400 (planning figure) Daily General Food Ration Rice (parboiled) 400.0 g 1456 kcal Lentils 40.0 g 136 kcal Chick peas 20.0 g 67 kcal Vegetable oil (fortified) 25.0 g 221 kcal Sugar 20.0 g 80 kcal Salt (iodised) 7.5 g - Blended food (fortified) 35.0 g 140 kcal Total 547.5 g 2100 kcal ECHO/-FA/BUD/2010/01000 4

2.4 Complementarity and coordination with other EU services, donors and institutions The European Union is also financing non-food items through the Uprooted People budget line. In that respect, the Commission's Directorate-General for External Relations and EuropeAid Office have foreseen the need to allocate EUR 1,000,000 a year to UNHCR. (See Table 3 in Annex) 2.5 Duration The duration for the implementation of this Decision shall be 12 months. Humanitarian actions funded by this Decision must be implemented within this period. Expenditure under this Decision shall be eligible from 1 June 2010. This is justified by the need for advanced programming of contributions. Commodity procurement takes approximately 12 weeks; therefore WFP requires urgent funds to avoid upcoming pipeline breaks in September 2010. Start Date: 1 July 2010. If the implementation of the actions envisaged in this Decision is suspended due to force majeure or any comparable circumstance, the period of suspension will not be taken into account for the calculation of the duration of the humanitarian aid actions. Depending on the evolution of the situation in the field, the Commission reserves the right to terminate the Agreements signed with the implementing humanitarian organisations where the suspension of activities is for a period of more than one third of the total planned duration of the action. In this respect, the procedure established in the general conditions of the specific agreement will be applied. 3 Evaluation Under Article 18 of Council Regulation (EC) No.1257/96 of 20 June 1996 concerning humanitarian aid the Commission is required to "regularly assess humanitarian aid actions financed by the Union in order to establish whether they have achieved their objectives and to produce guidelines for improving the effectiveness of subsequent actions." These evaluations are structured and organised in overarching and cross cutting issues forming part of DG ECHO's Annual Strategy such as child-related issues, the security of relief workers, respect for human rights, gender. Each year, an indicative Evaluation Programme is established after a consultative process. This programme is flexible and can be adapted to include evaluations not foreseen in the initial programme, in response to particular events or changing circumstances. More information can be obtained at: http://ec.europa.eu/echo/policies/evaluation/introduction_en.htm. ECHO/-FA/BUD/2010/01000 5

4 Management Issues Humanitarian aid actions funded by the European Union are implemented by NGOs and the Red Cross National Societies on the basis of Framework Partnership Agreements (FPA), by Specialised Agencies of the Member States and by United Nations agencies based on the Financial Administrative Framework Agreement with the UN (FAFA) in conformity with Article 163 of the Implementing Rules of the Financial Regulation. These Framework Agreements define the criteria for attributing grant agreements and financing agreements in accordance with Article 90 of the Implementing Rules and may be found at http://ec.europa.eu/echo/about/actors/partners_en.htm For NGOs, Specialised Agencies of the Member States, Red Cross National Societies and international organisations not complying with the requirements set up in the Financial Regulation applicable to the general budget of the European Union for joint management, actions will be managed by direct centralised management. For international organisations identified as potential partners for implementing the Decision, actions will be managed under joint management. Individual grants are awarded on the basis of the criteria enumerated in Article 7.2 of the Humanitarian Aid Regulation, such as the technical and financial capacity, readiness and experience, and results of previous interventions. 5 Annexes ECHO/-FA/BUD/2010/01000 6

Annex 1 - Summary decision matrix (table) Principal objective: to provide food assistance to Bhutanese refugees in Nepal Specific objectives To ensure adequate food distribution and to contribute to improving the nutritional status of Bhutanese refugees Allocated amount by specific objective (EUR) TOTAL 1,500,000 Geographical area of operation 1,500,000 seven refugee camps located in the eastern districts of Morang and Jhapa of Nepal. Activities Potential partners 6 - Activity A: to distribute basic daily food rations to all the refugees in the camps. - Activity B: to distribute supplementary daily food rations to at least 2,400 vulnerable refugees. - Activity C: to provide vocational training, potgardening and small income generating activities to approximately 29,036 vulnerable refugees Joint management - WFP-PAM 6 WORLD FOOD PROGRAM ECHO/-FA/BUD/2010/01000 7

Annex 2 - List of previous DG ECHO decisions List of previous DG ECHO operations in NEPAL 2008 2009 2010 Decision Number Decision EUR EUR EUR Type ECHO/-FA/BUD/2008/01000 (*) Ad hoc 2,000,000 ECHO/-FA/BUD/2008/02000 (*) Ad hoc 466,000 ECHO/-FA/BUD/2008/04000 Emergency 1,000,000 ECHO/-SA/BUD/2008/02000 (*) Emergency 1,389,359 ECHO/NPL/BUD/2008/01000 Global Plan 4,500,000 ECHO/DIP/BUD/2009/02000 (*) Ad hoc 2,588,463 ECHO/NPL/BUD/2009/01000 Global Plan 6,000,000 Subtotal 9,355,359 8,588,463 0 TOTAL 17,943,822 Date : 02/06/2010 Source : HOPE (*) Decisions with more than one country Annex 3 - Overview table of the humanitarian donor contributions Donors in NEPAL over the last 12 months 1. EU Member States (*) 2. European Commission EUR EUR Denmark 134,275 DG ECHO 0 Germany 2,610,000 Ireland 40,000 Luxembourg 97,209 Subtotal 2,881,484 Subtotal 0 TOTAL 2,881,484 Date : 02/06/2010 (*) Source : DG ECHO 14 Points reports. https://webgate.ec.europa.eu/hac Empty cells : no information or no contribution. ECHO/-FA/BUD/2010/01000 8

Annex 4 - Map (Source WFP) ECHO/-FA/BUD/2010/01000 9