THE EUROPEAN UNION EMERGENCY TRUST FUND FOR STABILITY AND ADDRESSING THE ROOT CAUSES OF IRREGULAR MIGRATION AND DISPLACED PERSONS IN AFRICA

THE EUROPEAN UNION EMERGENCY TRUST FUND FOR STABILITY AND ADDRESSING THE ROOT CAUSES OF IRREGULAR MIGRATION AND DISPLACED PERSONS IN AFRICA Action Fiche for the implementation of the Horn of Africa Window EUTF05 HoA ETH - 15 1. IDENTIFICATION Title/Number Regional Development and Protection Programme in Ethiopia Total cost Total estimated cost: EUR 30 000 000 Aid method / Method of implementation Total amount drawn from the Trust Fund: EUR 30 000 000 Project Modality: direct management Grants call for proposals DAC-code 72050 Sector Relief co-ordination; protection and support services 2. RATIONALE AND CONTEXT 2.1. Summary of the action and its objectives The project contributes to EU Trust Fund's objectives (1) create greater economic and employment opportunities, especially for young people and women, with a focus on vocational trainings and the creation of micro and small enterprises, (2) strengthening resilience of communities and in particular the most vulnerable, as well as the refugees and displaced people, and (4) improved governance and conflict prevention, and reduction of forced displacement and irregular migration. The project is also aligned with the Valletta Action Plan priority domains (1) development benefits of migration and addressing root causes of irregular migration and forced displacement, and (3) reinforce the protection of refugees and other displaced persons, uphold the human rights of all migrants, refugees and asylum-seekers, support the integration of long term refugees and displaced persons in host communities and strengthen capacities of countries of first asylum, transit and destination. The proposed action is part of the EU Regional Development and Protection Programme (RDPP) in the Horn of Africa, led by the Netherlands, which has been set up to address some of the protection and development challenges related to forced and protracted displacement. The geographical coverage focuses on the regions of Shire, Afar and Somali. The target beneficiaries of the action will in particular be (1) Eritrean refugees of which many are young men and unaccompanied minors, (2) Eritrean and Somali refugees living out of camp, (3) Somali refugees, including many vulnerable women and children, and (4) host communities in Shire, Afar and Somali Regions 1. There will be a specific emphasis on vulnerable groups, including women and children, and on relevant local and national authorities. Based on the 1 These priority areas and populations were selected at the recommendation of the GoE during the RDPP preparatory consultations. The (South) Sudanese refugee populations very sizeable but less susceptible to onward migration out of the region - and their host communities thus fall outside the scope of the Framework. 1 of 14

number of people living in refugee camps and host communities in the targeted geographical areas, a rough estimate indicates that a total of 100,000-120,000 people could potentially benefit from this action. The intervention logic of this action is that by improving protection, enhancing self-reliance opportunities and integrated service delivery, and building the capacity of local authorities for the delivery of such integrated service delivery, refugees and their host communities will benefit from a safer and more favourable environment, increasing sustainably their livelihoods opportunities, and decreasing the incentives for secondary movements. The overall objective of the action is to create evidence-based, innovative and sustainable development and protection solutions for refugees and their host communities in Ethiopia, hence providing alternatives to irregular primary and secondary movements. The specific objectives are the following: (1) to create greater social cohesion through improved access to integrated basic service delivery for Eritrean and Somali refugees (in and out of camps) and their host communities; (2) to improve livelihoods and employment opportunities for Eritrean and Somali refugees (in and out of camps) and their host communities; (3) to enhance protection, where needs are identified, of Eritrean and Somali refugees (in and out of camps) and host communities, with a particular focus on vulnerable groups; and (4) to strengthen capacities of local authorities and multi-stakeholder coordination platforms to cooperate in developing an integrated approach for refugees and host communities. 2.2. Context 2.2.1. Country/regional context, if applicable The Horn of Africa is one of the major refugee producing and hosting regions in the world. Protracted conflict and violence, persecution and repression, combined with increasingly harsh climatic conditions, and lack of income opportunities for a rapidly growing and increasingly young population that enters the labour market, cause people to flee or migrate. Although countries from the Horn of Africa are amongst the top ten countries of origin of asylum seekers in the EU, by far the majority of migrants stay within the region, with Ethiopia, Sudan and Kenya hosting the bulk of refugees from inter alia Somalia, Eritrea and South Sudan. Ethiopia is both a country of destination, transit and origin of migration, and is therefore a key partner in the efforts to secure more well-managed migration flows. It is also a country that faces the challenges of return, as around 163,000 Ethiopian labour migrants were forcibly returned from the Kingdom of Saudi Arabia in 2013-2014, as well as thousands of Ethiopians who were detained in Malawi and Tanzania on their way to South Africa. Ethiopia is the second most populous country in Africa with an estimated population of approximately 96 million in 2014 and an estimated annual population growth rate of 2.5 % in 2014 (World Bank). In 2014, approximately 44.2% of the population were younger than 15 years of age (Index Mundi). Despite having registered very significant growth rates of around 8 to 11% on average during the last 10 years (according to the IMF), Ethiopia is still a low income country with a per capita income of 550 USD in 2014 up from USD 377 in 2009/10, ranking 174 out of 188 countries at the Human Development Index Report (2015). Population growth and a very young population mean that approximately 2,5 million young people enter the labour market every year and unemployment is widespread (20%). 2 of 14

2.2.2. Sector context: policies and challenges Ethiopia has an open-door policy towards refugees, hosting the largest refugee population in Africa (estimated at 731,000 in 31 January 2016), mainly from South Sudan, Somalia, and Eritrea. As regards the geographical areas covered by this action, the current population numbers in the camps are estimated as follows (UNHCR): Somali region: Dollo Ado 212,000 and Jijiga 38,000. Afar region: 32,000. Shire: 35,000. The population numbers for the districts (woredas) surrounding the camps are estimated as follows : Afar: Aysaita (47,000), Barahle (79,000), Dalool (84,000). Shire: Shimelba (110,000), Hitsats (136,000) and Tselemti (162,000). Somali: Sheder (26,000), Aw-Barre (21,700), Kebribeya (214,000). Data for Dolo Ado are not available. Addis Ababa hosts around 8,000 urban refugees and 4,000-5,000 outof-camp refugees. The different caseloads of refugees (Somali, South Sudan and Eritrea) have different characteristics, histories and political-strategic backgrounds. All are marked by ethnical, linguistic and familial ties with the host communities of Ethiopia s border regions but Eritreans are considered by Ethiopians as their brothers and sisters and, therefore, receive special attention. The Eritrean caseload of refugees has never stopped from coming, but a lot stay only for a very short period of time in the camps. Approximately 81,000 Eritreans (UNHCR) previously registered as living in camps, are now believed to live outside camps, or have moved on to other regions such as Europe. With no or little hope to return back home and limited protection, service delivery and livelihood opportunities in Ethiopia, secondary movement is perceived as an attractive alternative for many Eritreans staying in the camps. Most of the Somali have arrived in the nineties and have been living for around two decades in the camps. Efforts have started to prepare some of them for return to Somalia, but with limited success so far due to continued fighting in Somalia. The current caseload of South Sudanese refugees has mainly entered the country since the ongoing conflict in South Sudan emerged end of 2013. Most of those refugees are women and children, waiting for the situation in South Sudan to calm down to be able to return. Refugees from South Sudan are not the focus of this intervention at this stage as more humanitarian support is currently provided for those refugees Legal and policy framework for refugees There are no provisions under Ethiopia s law for local integration of refugees. The country maintains reservations to the 1951 Convention relating to the Status of Refugees, notably to Article 17 (access to wage-earning employment) and Article 22 (access to public education). The 2004 National Refugee Proclamation entitles recognized refugees to the same rights and obligations with regard to wage-earning employment and education as non-citizens of Ethiopia. This means among other things that they would need to receive a work permit in order to work. In practice, refugees do not have access to the formal labour market. Likewise, refugees are not incorporated into development plans at federal or local levels and funding for refugees and Ethiopian development projects is kept clearly separated. Most refugees are kept and supported in camps managed by the Administration for Refugees and Returnee Affairs (ARRA) and UNHCR. Since 2010, the Ethiopian government has supported an out-of-camp scheme allowing some Eritrean refugees to live outside camps. However, so far no formal policy document on the out-of-camp policy has been adopted. The informal out-of-camp scheme, whose parameters and scope are unclear, allows in practice some Eritrean (Tigrinya) refugees to live outside refugee camps if they have a sponsor usually a family member - who takes responsibility for them while other support 3 of 14

ceases. It is estimated by UNHCR and ARRA that there are around 4,000-5,000 selfsupporting Eritrean refugees living out-of-camp in Addis Ababa. It is, however, believed that the actual number of refugees living in Addis Ababa may well be higher. The main beneficiaries of the out-of-camp scheme thus far have been students absorbed into universities, whose fees are paid for by the Government (75 per cent) and UNHCR (25 per cent). Restrained social and economic rights for migrants Lack of sustainable and integrated service delivery such as water and energy is a contributing factor to conflict and instability between refugees and host communities. Environmental degradation around camps, the fragile ecosystem and scarce resources have led to tensions between host communities and refugees in some locations. Such tensions and conflict have in some cases led to a dramatic increase in the number of legal cases, overburdening the local courts. Insufficient access to environmentally sustainable energy provision in refugee camps and in some of the host communities means that serious environmental challenges may arise in the host communities. The current practices with regard to service delivery typically implies that parallel structures are established in camps and in surrounding communities leading to suboptimal use of the limited resources and lack of coordination. There is no formal policy or practice providing for the delivery of integrated services to refugees and host communities. Where examples of integrated services exist, these are individual cases typically driven by NGO's in a specific project. Likewise, there is no formal policy or practice giving refugees access to services such as education or water outside the camps, but examples exist on a case-by-case basis. Pursuing an integrated approach, involving local governments and communities and providing services to both camps and host communities could be an innovative way to ensure better and more efficient basic service delivery. To achieve this, it would be important to engage not only the government at federal level, but also to seek the active involvement of local government entities and other local structures responsible for providing services and building upon their insight, and to aim to include refuges in local development plans that address the specific local needs and challenges. It will also be important to involve the host communities and refugees through dialogues to ensure ownership and reduce tensions between the two groups. Effective mechanisms for mediation between host population and refugees will also need to be established in the event of build-up of tension and conflict. Poor economic opportunities None of the refugees living outside the camps are allowed to work in the formal private or state sector. The only option for them is economic participation either in the camps or in the informal sector within the surrounding area (e.g. in construction, small shops, street trade). This lack of access to the formal labour market and limited livelihood opportunities in the camps, located in remote areas of Ethiopia with little economic activity and scarce resources and harsh camp conditions (heat, lack of electricity and other facilities, deteriorating security), are important push factors for secondary migration of Eritrean and Somali refugees towards Europe and elsewhere. Better possibilities for refugees to participate in the Ethiopian labour market could provide them with a better perspective on sustainable livelihood in the longer term, thereby both reducing push factors and enabling them to contribute to the Ethiopian economy. In addition, increased capacity of the government to provide integrated services to refugees and host communities may provide better and more (financially and environmentally) durable solutions for refugees and their host communities, reducing the necessity to move onwards. 4 of 14

Protection needs Girls and young women risk gender based violence, either due to cultural traditions or due to girls and young women being a vulnerable minority in the Eritrean refugee camps, where the total population consists of 70% men and only 30% women. Women and girls empowerment is necessary in order to attain gender equality. As women and girls fulfil a particular role in the camps, e.g. with regard to cooking and the provision of water, their needs require particular attention and consultation. 2.3. Lessons learnt To avoid perceived preferential treatment that might lead to resentment and further tension between refugees and host communities, and to enhance sustainability of responses, integrated solutions benefiting both population groups will be promoted. Protection and livelihood activities will be offered to both refugees and host communities, and activities that stimulate integrated delivery of education, water and energy provision in sufficient quality and quantity will be promoted. Recent actions focusing on livelihoods indicate that programmes that involve the host community may be positively affecting the relationship between refugees and host communities. To promote ownership and sustainability of the activities to be undertaken, involvement and capacity building of local authorities will be ensured. To ensure a sound balance between demand and supply, livelihood support offered will be based on comprehensive needs assessments and market research. Recent actions on livelihood support indicate the positive effects of this type of activities: beneficiaries referred to increased income, improvements in self-esteem, an expanded network, greater food security, improved education and the development of new technical skills. A deep knowledge of gender, social, cultural and economic mechanisms is needed to ensure that information about the risks and consequences of regular and irregular migration will be assimilated by potential migrants and their families. Particular attention to vulnerable categories' special needs must be ensured, in specific children and youth, victims of gender based violence and women at risk of abuse and exploitation. Recent actions targeting refugee children and youth have aimed at discouraging children and youth from relying on trafficking and smuggling networks to move on by providing protection and assistance actions in the Shire camps. No hard evidence exists yet on the precise effects of these activities. 5 of 14

2.4. Complementary actions This programme will be closely coordinated with on-going humanitarian projects financed by ECHO in Ethiopia. It is important to avoid overlap between the lifesaving approach that ECHO is applying and the longer term, more structural development approach of the RDPP. On protection (access to justice) and sustainable energy provision, the RDPP action will venture into areas not covered by humanitarian interventions. ECHO is focusing on providing basic water supply, whereas the RDPP action will go beyond this by working towards sustainable, integrated water management for host communities and refugees. Also on education and livelihood activities, the action will be based on an integrated approach, more systemic and long-term than ECHO activities. Before the commencement of the activities, the different partners implementing the AMIF RDPP, ECHO s protection activities and this proposed project will be required to draw up a comparative document which will consolidate all protection activities financed under those projects, including an indication of the source of funding per individual activity. Such comparative document will be enclosed to the proposed project and will guide implementation of the aforementioned protection activities. Lessons learned and best practices from a range of complementary actions will be taken into account in the RDPP. Current and planned projects which are worth mentioning as complementary to the here suggested actions and in order to avoid duplications are: Research: Moreover, the Research and Evidence Facility under the EUTF will fill knowledge gaps on the drivers of instability, migration and forced displacement and generate evidence, which can be used in other actions, including the RDPP. This Action will attempt to fill the most urgent knowledge gaps through its activities, in particular on market needs for labour skills and capacity of relevant (local) authorities. In close coordination with ongoing and planned research activities of others (e.g. DFID), supplementary support from the Research and Evidence Facility will be sought to fill additional knowledge gaps on e.g. the socio-economic impact of refugees on host communities, cost/benefit analysis of current refugee policies versus socio-economic integration, or on future scenarios for migration patterns from the region. Evaluation of innovative pilot projects implemented under the RDPP can generate lessons for and opportunities for other interventions to take up to scale. Child protection and SGBV prevention: The protection aspect of the action will focus on those elements that are not sufficiently covered by other actions. Of particular importance in this regard are the actions developed under the Asylum, Migration and Integration Fund (AMIF). The 2015 AMIF-funded RDPP project of five million EUR : "Strengthening child protection, reducing the risk of SGBV and improving protection for refugees and asylum seekers in Sudan, Ethiopia and Kenya", implemented by UNHCR, focuses on child protection in the Shire region, as well as SGBV prevention and response in Jijiga. The current RDPP Ethiopia action is complementary to the above-mentioned AMIF RDPP, as it focuses on access to justice and rule of law, while other aspects of protection of refugees, and in particular women and children, are covered by AMIF. An AMIF 2016 allocation of another 10 million EUR for protection and capacity building in the field of protection is expected. Also in this regard complementarity will be ensured. WASH and energy: The social cohesion and promotion of integrated basic services aspect will be closely coordinated with the following action: 1) "Memorandum of Understanding between UNICEF and the EU relating to the Hydrogeological study in seven Woredas of Afar, Somali, Oromia and SNNPR regions Ethiopia". This 6 of 14

project will provide expertise and satellite data to improve the success rate of water boreholes drilling and provide knowledge on the availability, accessibility, quantity and quality of ground water with a view to serving communities with water; 2) the multi-actor public-private sector alliance that improves electric access of refugee populations in Adi- Harush, funded by the Spanish Cooperation and implemented in collaboration with NRC. Livelihoods: The action will be closely coordinated with the following ongoing livelihood actions: 1) "Addressing the Onward Migration of Eritrean Refugees, especially Youth, in Northern Ethiopia", supported by Danida and implemented by the Danish Refugee Council. This recently approved project will focus on improving the livelihood of young Eritrean refugees, ultimately addressing their onward migration; 2) "Hope for Eritrean Refugees in Ethiopia", supported by the Dutch government and implemented by ZOA, aims to address the root causes of migration by focusing on improving lives and livelihoods of Eritrean refugees and host communities in Shire; 3) "Skills training and livelihoods in Adi Harush and Hitsats camps", supported by the Norwegian government and implemented by the Norwegian Refugee Council; 4) "Empowering communities and building resilience in refugee impacted and hosting areas of liben zone, Somali regional state, Ethiopia", supported by IKEA and implemented by UNHCR; 5) Support to Ethiopian refugees programmes (in preparation), funded by Germany (implemented via KfW), in coordination with the Ministry for Federal Affairs. This project under preparation shall support the improvement of perspectives and livelihoods of Eritrean refugees and their host communities (subject to the final approval of the project design by Ministry of Federal Affairs and by BMZ/ Germany): 6) "Resilience Building and Creation of Economic Opportunities in Ethiopia (RESET II)" funded under the EU TF. The project will address the root causes of displacement and irregular migration through the creation of economic opportunities and the strengthening of the resilience capacity of the most vulnerable communities. The out of camp policy support aspect of the planned action will be closely coordinated with the current support provided by UNHCR within the framework of the Urban Programme for registered refugees living urban areas as well as with the following ongoing action: "Livelihood solutions for Eritrean refugees", supported by the Swiss government and implemented by the Norwegian Refugee Council. This project supports the implementation of the Ethiopian out of camp policy in order to enable Eritrean refugees to build independent lives outside of the refugee camps. The action will furthermore be coordinated with the planned DFID project "Support to refugees and migration in Ethiopia", which contains protection, livelihoods and basic social services (such as education) elements. Capacity building: With regard to capacity building, the action will be complementary to a regional IGAD project "Building regional and national capacities for improved migration governance in the IGAD region and Secondment of Migration Expert to IGAD", supported by Switzerland and implemented by IOM. The RDPP will work closely with other planned interventions that aim to address destabilization and root causes of migration and displacement under the EU Trust Fund and by EU and EU+ member states as discussed in the EU+ migration coordination forum; a planned World Bank intervention directed at host communities in Ethiopia; as well as future RDPP actions implemented in Kenya and Sudan. 7 of 14

2.5. Donor co-ordination Several other donors are working with refugee and host populations in Ethiopia. Coordination is ensured through the EU+ (Norway and Switzerland) migration coordination forum, which meets regularly and coordinates activities. This forum also works closely with the DAG and other donors such as the US and the World Bank. As relevant, the action will also be coordinated with the ACP-EU dialogue on migration and development, the Africa-EU Migration and Mobility Dialogue (MMD) and the EU-Horn of Africa Migration Route Initiative (Khartoum Process). The action will also be coordinated through the Humanitarian Resilience Donor Group (HRDG), which meets monthly. 3. DETAILED DESCRIPTION 3.1. Objectives The overall objective of the action is to create evidence-based, innovative and sustainable development and protection solutions for refugees and their host communities in Ethiopia, hence providing alternatives to irregular primary and secondary movements. The specific objectives and focus of the interventions in Ethiopia are the following: 1. Improved social cohesion through improved access to integrated basic service delivery for Eritrean and Somali refugees (in and out of camp) and their host communities. 2. Improved livelihoods and employment opportunities for Eritrean and Somali refugees (in and out of camp) and their host communities. 3. Improved protection, where needs are identified, of Eritrean and Somali refugees (in and out of camp) and host communities in Ethiopia, with a particular focus on vulnerable groups in complementarity with AMIF action 2. 4. Strengthened capacities of local authorities and multi-stakeholder coordination platforms to cooperate in developing an integrated approach for refugees, host communities and mixed migration flows. 3.2. Expected results and main activities The expected results are: Result 1.1: Host communities and Eritrean, Somali and Afar refugees (in and out of camp) have improved access to integrated and sustainable water management and energy provision. Examples of activities: see logframe. Promoting access to integrated, sustainable water and energy sources for refugees and host communities, including improving accountability structures, by means of e.g. pilot projects is expected to reduce conflict between refugees and host communities, increase livelihood options for both groups, enhance sustainability of water and energy solutions, reduce environmental degradation in areas surrounding refugee camps and reduce incentives for onwards migration. 2 Subsidiary to and in close coordination with parallel actions under RDPP with funds drawn from AMIF and where deemed necessary to fill gaps which are not otherwise addressed. 8 of 14

Result 1.2: Host communities and Eritrean, Afar and Somali youth refugees (in and out of camp, including urban refugees), including girls and women, have improved access to integrated education services. Examples of activities: see logframe. Integrated delivery of education services for refugees and host communities, including improving accountability structures, can reduce conflict between refugees and host communities, increase livelihood options and provide an alternative to onwards migration, especially for the many children and youth in and around the Shire refugee camps. Result 2.1: Improved knowledge of labour demand and supply, as well as improved employment and economic opportunities for Eritrean and Somali refugees (in and out of camp, including urban refugees) and their host communities, with a particular focus on youth. Examples of activities: see logframe. Provision of knowledge by private sector stakeholders on the (labour) market is essential to ensure a sound balance between (future) demand and planned vocational training. Moreover, promoting employment opportunities is essential to ensure that refugees, in and out of camp, and their communities can provide for their livelihood. Result 2.2: Increased access to vocational and skills training matching labour demand for Eritrean and Somali refugees (in and out of camp, including urban refugees) and their host communities, with a particular focus on youth. Examples of activities: see logframe. Provision of (online) vocational training matching labour market needs to refugees and host communities can promote their opportunities for skilled employment and reduce conflict between idle youth. Results will be tracked and monitored by means of gender and age disaggregated baseline surveys and, where possible, in real-time. Moreover, WFP, with ECHO funding, is now implementing biometrics for continuous verification at the time of food distribution and this should enable monthly quantification of who has left the camps. Using these findings should allow setting up a baseline and subsequently tracking system to identify if the actions lead to reduced secondary movement. Result 3.1: Eritrean, Afar and Somali refugees and host communities have improved access to justice and (informal) rule of law. Examples of activities: see logframe. This result is expected to help solve disputes and thereby reduce tensions within refugee camps and between refugees and host communities. It will be carried out as a pilot project, focusing on those elements that are not covered by the AMIF RDPP the planned action. Result 4.1: Establishment of accountable, multi-stakeholder coordinating platforms engaged in the management of refugees, host communities and mixed migration, including its beneficiaries, is encouraged and the capacities of these platforms strengthened. Examples of activities: see logframe. Result 4.2: Capacities of actors involved in the above-mentioned coordinating platforms, including local authorities, are strengthened to develop an integrated and accountable approach to refugees, host communities and mixed migration. Examples of activities: see logframe. 9 of 14

Enhanced ability of relevant (local) authorities and coordinating platforms to plan and deliver the services mentioned under specific objectives 1-3 in an accountable manner through community driven development can contribute to the sustainability and improvement of these services and thus contribute to the reduction of incentives for migration. 3.3. Risks and assumptions The main risks are the following: - Some of the programme issues are rather sensitive and the full commitment and extra efforts of central and local authorities will be paramount to obtain concrete results. Full cooperation between implementing agencies and local and federal authorities will be necessary. Medium. - Local authorities' implementation capacity in the delivery of services, including specific integrated services, to refugees and host communities might be limited. Medium. - Capacity of nascent migration coordination structures within the government. High. - Lack of integrated (biometric) data on refugees, migrants and the national population and the capacity to monitor people s movement. Medium. - Lack of interest of target beneficiaries in the proposed activities. Medium. - Existing tensions between refugees and host communities and structures dealing with both communities impeding an integrated approach. This participatory approach will ensure the consultation of women and girls. High. - Lack of interest of new actors, such as national and international private sector stakeholders, universities or national and international entrepreneurs. Medium. - Financial institutions are not willing to engage in credit arrangements for entrepreneurs and start-ups. Medium. The assumptions for the success of the project and its implementation include achieving the overall objective of the project is based upon the assumption that: - A clear commitment of the Government of Ethiopia, local authorities and relevant stakeholders to project objectives and a willingness to establish a good cooperation to carry out project activities, including a willingness to support the strengthening and extension of out of camp activities at the local level and seek integrated solutions for basic service delivery for refugee and host communities alike. - Memorandum of Understanding signed between the Government and implementing partners. - Access to camps for the implementing partners guaranteed by Government. The project is based upon the following assumptions with regard to fulfilling the specific objectives of the project: - Commitment of the Government to improve the protection needs of both Eritrean and Somali refugees (in and out of camp) and the protection needs of local host communities. - Willingness of stakeholders to cooperate on project implementation. - Commitment of the Government to improve the access of Eritrean refugees and their host communities to basic services such as education, water and energy. 10 of 14

- Good cooperation is established between the Government, local communities, businesses, finance institutions and the implementing partners to provide tailored services to refugees and selected representatives from the host communities aimed at improving livelihoods. - Implementing partners have adequate knowledge of market supply and demand in order to help identify profitable and sustainable livelihood options. - Implementing partners have sufficient social and cultural knowledge to provide relevant and adequate protection and service delivery to the target populations. - More education and livelihood opportunities lead to less (secondary) migration. Mitigating measures have been considered, including: - Political dialogue with central and local authorities at high level to agree on project objectives, to take into account needs identified by the authorities, and to ensure government buy-in (both at the beginning and through-out the project, especially with regard to out-of-camp opportunities and integrated service delivery), including using CAMM dialogue and broader political partnership between Ethiopia and EU as follow-up to Valletta Summit to address possible challenges. High. - Ensure coherent response via other actions of the EUTF, CAMM and related processes to address priority concerns of the Government of Ethiopia with regard to the challenges of migration management, such as improved opportunities for legal labour migration to the Gulf region (through bilateral agreements, skills training, awareness raising, monitoring), improved (biometric) integrated registration of the refugee and national population to allow for better monitoring of movement, strengthened law enforcement capacities to allow for better border management and combat of illegal trafficking/smuggling, etc. These priorities are also part of the Valletta Action Plan. Medium. - Mapping of gaps in the capacity of authorities and provision of capacity building, where relevant and feasible to ensure local acceptance and sustainability. Strategic use of the M&E framework and research facility under the EUTF to address the identified knowledge gaps. Medium. - On the ground involvement of host community and refugee target beneficiaries through dialogues, information and awareness-raising, both men and women, explaining the rationale of the project and the potential benefits for them of engaging in the project. High. - Dialogue with and participation of local host and refugee communities to ensure buyin, accountability and sustainability of projects and services delivered. As part of these community dialogues, channels of mediation between host communities, local authorities and refugee representatives will also be established to handle situations of build-up of tension surrounding the proposed activities under the action. High. - Develop attractive mechanisms within the project promoting innovation, attracting new stakeholders and partnerships, including the private sector, and incentivising financial institutions to engage in credit arrangements. Medium. - Ensure implementing partners have or obtain adequate knowledge of the local context including gender, social, cultural and economic mechanisms. High. - Ensure good baseline studies to guide the identification of partners and projects and a good M&E framework that can guide the actions throughout the implementation 11 of 14

3.4. Cross-cutting issues Capacity building of authorities involved with refugees and host communities is one of the three main pillars in the overall RDDP programme and a cross-cutting issue which goes across the initiatives of the action. It is expected to improve the capacity of local, coordinating and central authorities, e.g. of local authorities needed for the provision of integrated solutions and to help stimulate a positive business environment for entrepreneurship and start-ups. All activities, even if financed through non-governmental channels, should aim to include capacity building of relevant authorities. All actions should analyse risk of conflict between refugee and host populations and include mitigation measures such as mediation mechanism and integrated service delivery, ensuring that refugees and host communities can benefit from the same services; relevant livelihood opportunities for both refugees and host communities; and provision of alternative energy sources in refugee camps, thereby reducing the need for refugees to go into the surrounding host community and collect the scarce wood for cooking. The action will seek to promote innovative solutions, where feasible. For instance, it will aim promoting an integrated approach to refugees and host communities. It aims to include new actors, such as national and international private sector stakeholders, universities and national and international entrepreneurs. Another innovative example is achieving greater education outreach by means of on-line training and other alternative training methods. The action will also as an innovative element seek to establish evidence on its possible impact on secondary movements by setting up baselines on refugee movements and subsequently tracking these through the use of biometrics. For water and energy provision, the action will enable innovative, climate friendly and sustainable solutions adapted to local circumstances, protecting the environment. Throughout, the action must ensure gender equality. Attention must be paid to addressing gender discrimination and gender based violence. Girls and women are a vulnerable minority group, and their special protection needs will have to be taken into consideration. Activities will include particular attention to women s and girls needs and women empowerment in order to attain gender equality. Gender indicators will be disaggregated whenever possible. 3.5. Stakeholders Key stakeholders and direct beneficiaries in this intervention will be: Ethiopian federal institutions: Agency for Refugee and Return Affairs (ARRA) and Immigration Department of the National Intelligence and Security Service (NISS), Ministry of Foreign Affairs, Ministry of Women and Children Affairs (MoWCA), Ministry of Justice, Ministry of Water, Irrigation and Electricity, Ministry of Education, and Ministry of Labour and Social Affairs; regional and local authorities. Local authorities: All interventions in each geographical area will be identified, appraised and validated in close coordination with the local authorities in order to ensure their alignment and possible integration with their local development plans. International organisations: (IOs) involved in refugee matters, protection, service delivery, livelihood support, host communities and onward migration such as UNHCR, UNICEF, ILO and IOM, will be consulted to ensure coherency and complementarity between activities 12 of 14

Civil society organisations (CSOs): CSOs are important partners that will be implementing activities in close coordination with international organisations and authorities. Private sector, think tanks and academia may be co-beneficiaries on projects, where they can add value such as water and energy provision, vocational training and livelihood support. Associations of refugees and host communities: To ensure local accountability, impact and sustainability, interventions need to pursue a community driven development approach through active participation of refugee and host community associations in foreseen coordinating platforms and the design and implementation of interventions by the selected organisations. Women s groups: In order to get first hand evidence and assessments of the needs and challenges of women in the targeted refugee camps and host communities relevant women s associations and/or groups will be consulted during planning and implementation to ensure gender-friendly solutions. Youth Under 25 will be a direct target group in the RDPP, as the majority of refugees/migrants are quite young at the time of (onward) migration. 4. IMPLEMENTATION ISSUES 4.1. Financing agreement In order to implement this action, it is not foreseen to conclude a financing agreement referred to in Article 17 of Annex IV to the ACP-EU Partnership Agreement. 4.2. Indicative operational implementation period The period of implementation will be 48 months, whilst the overall execution period (including a closure phase of no more than 12 months) will not exceed 60 months from the date of approval of this Action Document by the Operational Committee of the EU Trust Fund. Contracts are expected to be signed in November 2016 with immediate start date of activities. The period of operational implementation of the grants will be 36 to 48 months. 4.3. Implementation components and modules The envisaged implementation mode is Direct Management. Contracts will be concluded with consortia, consisting of civil society organisations, following an open call for proposals. The engagement of the private sector, think tanks and academia as co-beneficiaries will be promoted. The essential selection criteria are financial and operational capacity of the applicant. The essential award criteria are relevance of the proposed action to the objectives of the call; design, effectiveness, feasibility, sustainability and cost-effectiveness of the action; readiness to be present in Ethiopia as well as its geographic and thematic expertise. The grants will implement all activities foreseen under this action as stated under results 1, 2, 3 and 4 (Component 1.1 of Section 4.4 Indicative budget). A Steering Committee chaired the EU Delegation to Ethiopia, and composed of the ECHO Office to Ethiopia, the Netherlands as lead on the RDPP for the Horn of Africa, ARRA, the Ministry of Finance and Economic Cooperation (MoFEC)/NAO, as well as other pertinent Government institutions and representatives of refugee and host community associations will 13 of 14

ensure the joint oversight of the programme. The Steering Committee will give strategic guidance. An annual report on the implementation of the action will be discussed in the Committee. In accordance with Articles 192 of Regulation (EU, Euratom) No 966/2012 applicable by virtue of Article 37 of (EU) regulation n 323/2015, if full funding is essential for the action to be carried out, the maximum possible rate of co-financing may be increased up to 100 %. The essentiality of full funding will be justified by the Commission s authorising officer responsible in the award decision, in respect of the principles of equal treatment and sound financial management. 4.4. Indicative budget Component Amount in EUR 1.1 Grant agreements 29 300 000 2.0 Monitoring, audit and evaluation 600 000 3.0 Communications and visibility 100 000 Total 30 000 000 As tentative budget breakdown, it is expected that the 29 300 000 EUR for grant agreements will be subdivided with 15 800 000 EUR to specific objective 1, 10 500 000 EUR to specific objective 2, 1 000 000 EUR allocated to specific objective 3 and 2 000 000 EUR to specific objective 4. 4.5. Monitoring, evaluation and audit It is important to establish monitoring and evaluation arrangements that can measure progress towards the intended results in a consistent and regular manner. Efforts will be made to set up a single monitoring & evaluation and lessons learned framework for all EUTF-funded projects in the Horn of Africa. Each of the projects in the Horn of Africa will pool resources by setting aside 1.5-2% of their EU Trust Fund allocations to establish a single monitoring and evaluation framework with a dedicated team of experts. The single M&E framework will help ensure consistency in progress reporting by using the project baselines and undertaking regular monitoring, evaluation and reviews of on-going projects in the region. It will also serve as a tool for compiling documentation and sharing experience in a structured manner. Ad hoc audits or expenditure verification assignments could be contracted by the European Commission. Audits and expenditure verification assignments will be carried out in conformity with the risk analysis in the frame of the yearly Audit Plan exercise conducted by the European Commission. Evaluation and audit assignments will be implemented through service contracts; making use of one of the Commission s dedicated framework contracts or alternatively through the competitive negotiated procedure or the single tender procedure. 4.6. Communication and visibility Communication and visibility of the EU is a legal obligation for all external actions funded by the EU. This action shall contain communication and visibility measures which shall be based on a specific Communication and Visibility Plan of the Action. Appropriate contractual obligations shall be included in the procurement contracts. The Communication and Visibility Manual for European Union External Action shall be used to establish the Communication and Visibility Plan and the appropriate contractual obligations. 14 of 14

Contractual obligations may also include activities on best-practice sharing amongst RDPP actions. 15 of 14

EU Trust Fund Strategy Valletta Action Plan United Nations Sustainable Development Goals Four main areas of intervention Five priority domains, and 16 initiatives 17 goals 1) Greater economic and employment opportunities 2) Strengthening resilience of communities and in particular the most vulnerable, as well as refugees and displaced people 3) Improved migration management in countries of origin and transit 4) Improved governance and conflict prevention, and reduction of forced displacement and irregular migration 1) Development benefits of migration and addressing root causes of irregular migration and forced displacement 1. enhance employment opportunities and revenue-generating activities 2. link relief, rehabilitation and development in peripheral and most vulnerable areas 3. operationalise the African Institute on Remittances 4. facilitate responsible private investment and boost trade 2) Legal migration and mobility 5. double the number of Erasmus scholarships 6. pool offers for legal migration 7. organise workshops on visa facilitation 3) Protection and asylum 8. Regional Development and Protection Programmes 9. improve the quality of the asylum process 10. improve resilience, safety and self-reliance of refugees in camps and host communities 4) Prevention of and fight against irregular migration, migrant smuggling and trafficking of human beings 11. national and regional anti-smuggling and anti-trafficking legislation, policies and action plans 12. strengthen institutional capacity to fight smuggling and trafficking 13. pilot project in Niger 14. information campaigns 5) Return, readmission and reintegration 15. strengthen capacity of countries of origin to respond to readmission applications 16. support reintegration of returnees into their communities 1) End poverty in all its forms everywhere 2) End hunger, achieve food security and improved nutrition and promote sustainable agriculture 3) Ensure healthy lives and promote well-being for all at all ages 4) Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all 5) Achieve gender equality and empower all women and girls 6) Ensure availability and sustainable management of water and sanitation for all 7) Ensure access to affordable, reliable, sustainable and modern energy for all 8) Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all 9) Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation 10) Reduce inequality within and among countries 11) Make cities and human settlements inclusive, safe, resilient and sustainable 12) Ensure sustainable consumption and production patterns 13) Take urgent action to combat climate change and its impacts 14) Conserve and sustainably use the oceans, seas and marine resources for sustainable development 15) Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss 16) Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels 17) Strengthen the means of implementation and revitalise the global partnership for sustainable development 1

APPENDIX 1: LOGFRAME MATRIX OF THE PROJECT Performance and progress monitoring will be an integral component of the project design. The indicators specified in the logical framework will serve as a starting point for performance measurement. They will be adapted and further elaborated during the inception phase. Project description Objectively verifiable indicators of achievement Sources and means of verification Assumptions Overall objective To create evidence-based, innovative and sustainable development and protection solutions for refugees and their host communities in Ethiopia. Refugees and host communities are better protected Refugees and host communities have improved development opportunities. Commitment of the GoE, local authorities and relevant stakeholders to project objectives and willingness to establish good cooperation to carry out project activities, wherever possible through integrated solutions. MoUs signed between GoE and implementing partners. Access to camps for the implementing partners guaranteed by GoE. Capacity building of local and central authorities is a key, cross-cutting component of the action and will be mainstreamed throughout the action. Following a community driven development approach, community dialogues will be integrated in the activities in order to ensure local ownership, sustainability and accountability of the actions. Project purpose (Specific objectives) SO1: Improved social cohesion through improved access to integrated basic service delivery for Eritrean and Somali refugees (in and out of camp) and their host communities. Refugees and host communities have improved access to integrated basic service delivery Commitment of the GoE to improve the access of Eritrean and Somali refugees and their host communities to basic services such as water, energy and education in an integrated way. Willingness of stakeholders to cooperate on project 2