African Development Bank SOMALIA

African Development Bank SOMALIA HUMANITARIAN RELIEF ASSISTANCE TO DROUGHT VICTIMS JULY 2011 Country and Regional Department - East B (OREB)

Table of Contents Acronyms... i 1. BACKGROUND AND JUSTIFICATION FOR EMERGENCY ASSISTANCE... 1 1.1 Background- The Drought and Emergency Crisis... 1 1.2 Justification for Emergency Assistance... 2 2. OVERVIEW OF THE APPEAL FOR EMERGENCY ASSISTANCE... 2 2.1 Overview of the Appeal... 2 3. THE PROPOSED EMERGENCY ASSISTANCE OPERATION... 3 3.1 Objectives and Description of the Emergency Assistance... 3 3.2 Cost and Source of Finance... 3 3.3 Implementation Arrangements and Schedule... 3 3.4 Procurement and Disbursement Arrangements... 4 3.5 Reporting, Supervision and Auditing... 4 4. CONCLUSIONS, RECOMMENDATIONS AND CONDITIONS FOR... 5 DISBURSEMENT... 5 4.1 Conclusions and Recommendations... 5 4.2 Conditions for Disbursement... 5 Annex 1 Activities and Budget over a the six month implementation period...

i Acronyms ADB FSNAU KEFO LoA NGO OCHA SRF UN UNHCR UNICEF USAID WFP African Development Bank Food Security and Nutrition Analysis Unit Kenya Field Office Letter of Agreement Non-governmental Organization United Nations Office for the Coordination of Humanitarian Affairs Special Relief Fund United Nations United Nations High Commission for Refugees United Nations Children s Fund United States Agency for International Development World Food Program

KEY ACTIVITIES OUTPUTS OUTCOMES IMPACT ii Project Simplified Logical Framework RESULTS CHAIN PERFORMANCE INDICATORS MEANS OF Indicator Baseline Target VERIFICATION Human suffering due to shortage Nutrition status of poor of food and water reduced in the the affected affected communities. communities. Minimum food and water requirements for the drought affected populations are met in the arid and semi arid lands of Dhobley (Lower Jubba region) and Elwak (Gedo region) Districts and Mogadishu. Component 1: Purchased foodstuff Component 2: Water trucking Number of drought affected communities benefiting from Bank support Households reached within a period of 2 months. Trucks of water to households Nutrition status of affected communities improved from June 2011 levels. 0 Around 21,041 households reached with food and water 0 16,967 households reached with food. 1018 trucks of water supplied to supply 4074families TFG drought monitoring, UNICEF and World Food Program (WFP) reports. TFG drought assessment reports and SPR report produced by WFP Report produced by WFP RISK/MITIGATION MEASURES Risk: Large numbers of refugees infiltrating Mogadishu and affecting the domestic feeding programmes. Mitigation: Bank emergency support is part of a wider programme expected to cushion refugees as well. Risk: High influx of refugees interfering with targeted households. Mitigation: Same as above. Risk: Foodstuff and water not readily available locally. Mitigation: TFG declaration of drought as an emergency makes it possible to source foodstuff within the region duty free. Component 1: Purchase of 40kg of maize, 1.5kg of vegetable oil and 4.0kg of pulses per household per month for 2 months. Component 2: 1018 trucks of water Component 3: WFP Administrative fee (5%) Inputs: Component 1: US$ 820,000 Component 2: US$ 130,000 Component 3: US$ 50,000

1 1. BACKGROUND AND JUSTIFICATION FOR EMERGENCY ASSISTANCE 1.1 Background- The Drought and Emergency Crisis 1.1.1 Nearly 9 million people in the Horn of Africa need humanitarian assistance as a result of a severe drought, whose effects are being worsened by high food prices and conflict. Desperate hunger is looming across the Horn of Africa and threatening the lives of millions who are struggling to survive in the face of rising food prices and conflict. Conflict in Somalia continues to force civilians from their homes, and around 10,000 are arriving each week at crowded Kenyan refugee camps. The number of malnourished children in the camps has already tripled in 2011. Currently having the highest rate of malnutrition in the whole Africa, more than 30 percent of the children are suffering from global acute malnutrition. In the Horn of Africa, the drought has affected more than 10 million people. According to UN statistics, the drought has affected 3.2 million in Ethiopia, 3.2 people in Kenya, 2.6 million in Somalia and 117,000 in Djibouti. Cereal prices are up by at least 20 per cent from this time last year, with the Bay region in the south registering the sharpest climb at 135 per cent. Water prices have soared and the number of livestock deaths is on the rise as their pasture has been destroyed, says the Food Security and Nutrition Analysis Unit (FSNAU) Somalia, which analyses Somali food, nutrition and livelihood security. 1.1.2 The FSNAU has just updated the number of people in crisis to 2.85 million, up from 2.3 million reported in January 2011, (a 19% increase). The revised figures are the result of analysis done on the basis of new forecasts of the harvest and its impact on the food security of the population. Of the 2.8 million people in crisis, the overwhelming majority of 1.75 million are from the South where there is extremely limited food assistance due to insecurity. Following the latest analysis, poor farmers in Lower Shabelle and Bay regions are joining the numbers of people in crisis due to very poor harvest outlook, aggravated by lack of carryover stocks, limited job opportunities and the record high cereal prices. For the same reasons, more urban population across the country is also facing the food security crisis. 1.1.3 Somalis are fleeing the region s worsening drought by going to the capital Mogadishu, even though it is severely damaged by years of fighting. The government says around 1,500 people arrive in the city every day, but they have little aid to offer them. Ordinary people are providing what help they can, for families sheltered in the ruins of former government buildings. There are daily deaths in Mogadishu, with eight people dying overnight in just one area. 1.1.4 Due to the magnitude of coordination and reorganization required at the local level to provide emergency assistance, the Government is not able to cope fully with the situation. Hence the Transitional Federal Government s appeal, through a request dated 20 July 2011 (annex 2) to the Bank for the humanitarian emergency relief assistance. It is the first such request from Somalia that is being processed by the Bank in 2011. This request is therefore justified as it fulfills the three criteria required to qualify for Bank Group assistance in that: (i) the emergency situation is of a scale which is clearly beyond the capacity of the Somali Government to handle alone; (ii) the proposed activities can be carried out expeditiously and effectively within the required time frame; and (iii) the emergency relief assistance aims at restoring a degree of

2 normalcy in both the social and economic life of the affected populations as quickly as possible. The proposal is thus in compliance with the provisions of the Revised Policy Guidelines and Procedures for Emergency Relief Assistance and General Regulations of the Special Relief Fund (ADB/BD/WP/2008/211/Rev.1/ ADF/BD/WP/2008/173/Rev./1) which are applicable to emergency situations resulting from natural disasters such as drought, floods, hurricanes or earthquakes, accidents such as bush fire or conflicts 1.2 Justification for Emergency Assistance 1.2.1 According to the U.N. World Food Program (WFP) and the USAID s Famine Early Warning Systems Network the ongoing drought has led to a critical decline in food security among the pastoral communities and poor urban households. Due to the failure of the April - June long rains in some areas and below average rainfall in others, the numbers in need of assistance are expected to rise in the coming weeks. But the humanitarian response in Somalia in particular is hampered by funding shortfalls and new contributions are urgently needed. It is essential that we move quickly to break the destructive cycle of drought and hunger that forces farmers to sell their means of production as part of their survival strategy. While dressing emergency needs, WFP is working to strengthen resiliency of communities that live in droughtprone areas, using food assistance to support smallholder farmers and helping people to adapt to changes in weather patterns. 1.2.2 WFP aims to feed 1.2 million people in the capital, Mogadishu, in central and northern Somalia. The number will increase from July 1 st under a new emergency operation to assist 2.65 million people. WFP is working with the national government in the drought-affected areas and sharing the case-load of the numbers who require food assistance. While other droughts may have lasted longer, the current drought has been particularly severe and its impact has been exacerbated by extremely high food prices, reduced coping capacity and a limited humanitarian response, experts say. As the number of hungry rises, more resources will be needed to meet the need for food assistance. WFP estimates that around US$477 million is needed to address hunger needs in the region through to the end of the year. Currently, it has a 40 percent shortfall in funding, with about US$190 million still needed. 1.2.3 In the medium term, major stakeholders including Government, Donors and Humanitarian agencies recognize the need to (i) improve relief coordination efforts; (ii) put in place a policy of predictable tariffs on the import of maize; (iii) scaling-up and consolidation of existing social protection measures; and (iv) increase investment in the drought prone arid and semi arid lands and to create a drought management system in Somalia. 2. OVERVIEW OF THE APPEAL FOR EMERGENCY ASSISTANCE 2.1 Overview of the Appeal 2.1.1 The present Proposal for Bank emergency assistance to Transitional Federal Government (TFG) is a direct response to the Somali Food Security Network comprising WFP, the TFG,

3 and USAID s Famine Early Warning Systems Network observation that the ongoing drought has led to a critical decline in food security among the pastoral communities and poor urban households. Over 2.85 million Somalis are currently nesting in Kenya Camps and the TFG is in need of further assistance in the form of food from Development Partners. 2.1.2 Other recommended short term interventions include: (i) livestock off take (destocking) as a mitigation measure against severe livestock losses; (ii) disease surveillance and control; (iii) voucher for work activities to meet immediate needs and improve resilience of communities; (iv) water trucking; (v) farm input distribution to support early preparation of farms for the Long Rains (Oct-Dec); and (vi) Schools with larger number of students need to be supported with education materials to keep them going even when government funding for the student influx is not available and school feeding is also critical to support students in school. 3. THE PROPOSED EMERGENCY ASSISTANCE OPERATION 3.1 Objectives and Description of the Emergency Assistance 3.1.1 The objective of the proposed Bank emergency humanitarian relief assistance is to contribute to the Transitional Federal Government of Somalia, Somaliland, Puntland and UN s efforts in providing urgent food aid distributions and deliveries of food and water purification supplies to drought affected families in arid and semi arid areas. The emergency relief assistance operation will be funded through a grant from the Bank s Special Relief Fund (SRF). The total grant amount will be limited to the approved country ceiling of US$1,000,000 (one million United States Dollars). The grant funds will be used to purchase food items and water, as well as associated costs of transportation and distribution of food rations to the beneficiaries and for administrative charges. 3.1.2 Relief food assistance will be channeled through targeted food distribution to households affected by the drought, mainly the vulnerable groups (widows, orphans, female and elderlyheaded households) without alternative means of survival. Due to the imminent shortfalls, local and regional purchases will be made. Local and regional purchase has the added benefit of supporting the national and regional agricultural economies. 3.2 Cost and Source of Finance The total cost of the Bank s emergency assistance to the TFG is estimated at US$ 1,000,000. The cost breakdown is attached in annex 1. The funds provided by the Bank are restricted and earmarked for the purposes of urgent humanitarian assistance to the drought affected populations. 3.3 Implementation Arrangements and Schedule 3.3.1 According to the Bank s Revised Policy Guidelines and Procedures for Emergency Relief Assistance and General Regulations of the Special Relief Fund (ADB/BD/WP/2008/211/Rev.1/ADF/BD/WP/2008/173/Rev./1), implementation of emergency

4 humanitarian relief assistance will be entrusted to a suitable Implementing Agency to be selected from UN specialized agencies operating on the ground, competent Government institutions, or credible NGOs with good track record of implementing emergency operations. The TFG has indicated that WFP has been their lead agency in terms of international resource mobilization towards emergency operations and it has entrusted the operation of the emergency food assistance to WFP. It has therefore selected WFP as the Implementing Agency for the proposed operation. 3.3.2 WFP will thus be entrusted with the implementation of the emergency relief assistance operation. It already has a well established network in the country for food relief assistance. The Bank has partnered with WFP in recent Emergency operations in Kenya and was satisfied with their performance. WFP has a strong procurement system and infrastructure in place which could be readily used to quickly procure goods and services needed. WFP will sensitize host communities that the emergency support is a temporary measure, in order to avoid the creation of wrong expectations and dependencies. The total duration of the emergency assistance will not exceed six (6) months. Funds that will not be disbursed within this period will be cancelled. 3.4 Procurement and Disbursement Arrangements Procurement 3.4.1 In compliance with the relevant provisions of the Bank s Rules and procedures for procurement of goods and works, notably the paragraph 3.9, WFP will be responsible for the acquisition and distribution of the goods following its own rules. The process should guarantee a competitive price of the products. The Bank, through a provision in the Protocol of Agreement, may exercise a post review of this acquisition process. Finally, there should be a control mechanism in the MOU between the Government and WFP, ensuring that the goods effectively reach the beneficiaries in the quantity and quality required. Disbursement 3.4.2 Given the emergency nature of the proposed operation, it is recommended that the funds be disbursed in one single tranche, through direct payment into a WFP bank account, upon submission of evidence to the Bank of the opening of the bank account to receive the proceeds of the grant. Disbursements will also be subjected to the signature of a tri-partite Letter of Agreement (LoA) between the Bank, WFP and TFG. 3.5 Reporting, Supervision and Auditing 3.5.1 The submission of an audit report on the Bank s contribution is a requirement of the Bank s funding. In line with the provisions of the Revised Emergency Guidelines, WFP shall not be required to prepare separate financial and audit reports for the emergency operation. It will however be required to submit a written confirmation within six months after completion of the operation from a senior WFP official certifying that WFP has complied with the terms of the Letter of Agreement. In addition the Bank will also have access to WFP s regular Standard Project Reports (SPRs) through its website

5 3.5.2 WFP will deduct an administrative cost of not more than 5% from the ADB grant. For purposes of visibility, the Bank s name and contribution shall appear in the WFP 2011 consolidated financial report disclosing the list of contributors for the year. 3.5.3 Duration: The Guidelines and Procedures stipulate that emergency humanitarian relief assistance is typically a short-term operation, lasting a few months. Consequently, a period of six months from the date of approval of the memorandum has been proposed for the execution of this emergency relief assistance. Funds not disbursed after this period will be cancelled. 4. CONCLUSIONS, RECOMMENDATIONS AND CONDITIONS FOR DISBURSEMENT 4.1 Conclusions and Recommendations 4.1.1 The proposed Bank emergency humanitarian relief assistance is to contribute to the alleviation of the suffering of the victims of drought in Somalia. This will target vulnerable individuals and households with the primary objective of saving lives and preserving livelihoods. The emergency relief assistance operation will be funded through a grant from the Bank s Special Relief Fund (SRF). 4.1.2 In accordance with the Revised Policy Guidelines and Procedures for Emergency Relief Assistance and the General Regulation of the Special Relief Fund (SRF), it is recommended that the Bank assists the affected populations in Somalia with a grant not exceeding one million United States dollars (US$1,000,000). 4.2 Conditions for Disbursement The grant resources will be disbursed in one tranche, subject to the following conditions: i) Signature of the tripartite LoA by the Bank, the TFG, and WFP; ii) Communication by WFP to the Bank of the details of their bank account to which the grant resources will be transferred.

Annex 1 Activities and Budget over a the six month implementation period COMPONENT ACTIVITY QUANTITY (per household) 1: Provision of Purchase of maize, Purchase of including food for 2 months vegetable oil and transportation and pulses for 16,967 distribution: households 40 kg of maize 1.5 kg of vegetable oil 4.0kg of pulses 2: Provision of water. Trucks of water to 4074 households 0.25 trucks for two months UNIT COST (US$ per kg) 0.94 2.94 1.58 127.64 per truck. AMOUNT USD 820,000 130,000 3: WFP 50,000 Administrative fee (5%) Total 1,000,000