AFRICAN DEVELOPMENT BANK GROUP

AFRICAN DEVELOPMENT BANK GROUP REPUBLIC OF SOMALIA PROPOSAL FOR AN EMERGENCY RELIEF ASSISTANCE GRANT OF USD 655,000 TO THE TRANSITIONAL FEDERAL GOVERNMENT OF SOMALIA FOR THE VULNERABLE COMMUNITIES AFFECTED BY THE HUMANITARIAN CRISIS December 2010

TABLE OF CONTENTS List of Tables, Annexes, Acronyms and Abbreviations, Executive Summary Pages i iv 1. INTRODUCTION AND RATIONALE 1 2. OVERVIEW OF EMERGENCY ASSISTANCE OPERATION 2 2.1 Scale of Disaster 2 2.2 Reactions by National and International Community 3 2.3 Previous Bank s humanitarian assistance operations in Somalia 3 2.4 Lessons learned from previous similar operations 3 3. BANK S EMERGENCY ASSISTANCE 4 3.1 Objectives 4 3.2 Description of Operation 4 3.3 Institutional Arrangements 4 3.4 Cost and Financing 4 3.5 Procurement of Goods and Services 5 3.6 Disbursement 7 3.7 Implementation Schedule 7 3.8 Reporting, Supervision and Auditing 8 4. CONCLUSION AND RECOMMENDATIONS 9 4.1 Conclusion 9 4.2 Recommendations 9 4.3 Conditions 9

i LIST OF TABLES AND ANNEXES TABLES Table 1.1 : Magnitude of the Humanitarian Crisis Table 2.1 : Breakdown of the Cost of Emergency Assistance Table 3.1 : Provisional Implementation Schedule ANNEXES Annex I : Request by the Transitional Federal Government of Somalia Annex II : Assessment Matrix of Implementation Institution Annex III : Detailed Cost Estimates ACCRONYMS AND ABBREVIATIONS ADB : African Development Bank ADF : African Development Fund AHA : Africa Humanitarian Action AWD : Acute Watery Diarrhoea CAP : Consolidated Appeal Process GONU : Government of National Unity IDPs : Internally Displaced Persons FEWSNET : Famine Early Warning Systems Network FSNAU : Food Security and Nutrition Analysis Unit for Somalia NGO : Non-Government Organization OCHA : UN Office for the Coordination of Humanitarian Affairs SRF : Special Relief Fund TFG : Transitional Federal Government TLA : Tripartite Letter of Agreement UN : United Nations UNICEF : United Nations Children s Fund USAID : United States Agency for International Development WASH : Water, Sanitation and Hygiene WFP : World Food Programme WHO : World Health Organization

ii REPUBLIC OF SOMALIA: EMERGENCY RELIEF ASSISTANCE TO VULNERABLE COMMUNITIES AFFECTED BY HUMANITARIAN CRISIS RESULT BASED LOGICAL FRAMEWORK Hierarchy of objectives Sector Goal: Reduce the suffering of vulnerable population from diseases associated with lack of proper health services, poor nutrition as well as lack of access to clean and safe water and sanitation. Expected Results Long-Term Output: Reduce the risk of morbidity and death from malnutrition and poor sanitation among IDPs. REACH (Target population) Vulnerable populations (women, children, IDPs), in particular in Mogadishu and surrounding areas Performance Indicators Percent of children under five years of age with severe malnutrition Indicative Targets and Time Frame Severe malnutrition in children under five reduced by 12% by June 2011; Incidence of acute watery diarrhea in children reduced by 50% of current rate in April 2011 Assumptions/Risk No delay in disbursements and limited or no escalation of conflict and insecurity Purpose of Operation: Improve basic sanitation coverage and food security among vulnerable groups in the population Medium-Term Outcome: Improved sanitation & hygiene practices among vulnerable groups (women, children, IDPs) in Mogadishu and surrounding areas. Vulnerable populations (pregnant and lactating women, children under 5 years, IDPs) in Mogadishu and surrounding areas; Incidence of AWD in children <5 Number of households in IDPs supplied with clean water and basic sanitation. The number of cases of AWD among children <5 in targeted population reduced by 30% from current levels in June 2011 At least 3,000 vulnerable households (those headed by women, children and the elderly) supplied with clean water and basic sanitation and food by June 2011 Coordination with other development partners in the related clusters in CAPs.

iii Purpose of Operation: (continuous) Improve basic sanitation coverage and food security among vulnerable groups in the population Medium-Term Outcome: Reduced malnutrition among vulnerable groups 35,000 beneficiaries, (including 4000 students, 3,000 households in IDPs camps) Incidence of severe malnutrition in children <5 The % of severely malnourished children reduced from 285,000 (2009) Coordination with other development partners in the related clusters in CAPs. Contributions and activities: i) Procurement of food supplements, therapeutic feeds, water purification tablets, basic sanitation equipment ii) Mobilization of communities to promote sanitation and hygiene practices Outputs: Food supplements, therapeutic feeds distributed to all pregnant women, lactating mothers, children <5, school age children in IDPs; Women, Children and IDP households Number of Vitamin A, iron and food supplements procured and distributed. At least 2,500 women and 3,000 children provided with vitamin A, iron and food supplements. 2,000 packs of 30 tablets of chlorine distributed. No procurement delays. iii) Improvement of community water and sanitation systems Resources: AfDB: USD 655,000 Water purification tablets distributed to all vulnerable households in IDPs; Community mobilized in promotion of safer practices. Women, school children, teachers, religious leaders and elders. Water purification tablets procured & distributed. Number of water systems improved. Number of latrines, hand washing and sanitation facilities improved. Number and type of sanitation tools procured and distributed. Number of community people mobilized. 2 water supply systems (for 1 city hospital & 6 localities) improved. 50 latrines, 10 hand washing facilities and 20 waste pits improved. Sanitation tools distributed to 2,500 households. At least 4,000 people attended sensitization training sessions.

iv EXECUTIVE SUMMARY 1. Introduction: The Republic of Somalia is currently facing its worse humanitarian crisis, with about 3.64 million people in urgent need of livelihood and humanitarian support. This represents a 13% increase since January 2009 and between 38% and 50% of the total estimated population of between 7.5 and 9.8 million people. 1 The most vulnerable include women, children and households in Internally Displaced Population (IDP) camps, particularly those in Mogadishu and surrounding areas. Humanitarian assistance is needed in several sectors, including health care, nutrition, safe water and sanitation. 2. Purpose of the Grant: The USD 655,000 grant will contribute to emergency assistance to help reduce the risk of death among the most vulnerable communities from diseases associated with lack of proper health services, lack of clean and safe water, poor sanitation, food insecurity and poor nutrition in IDPs camps. 3. Project Objective: The project objective is to contribute to the ongoing efforts by the international community to reduce high rates of illness and death caused by poor nutrition, lack of clean and safe water, and poor sanitation in Mogadishu and the surrounding areas. 4. Brief Description of the Emergency Humanitarian Assistance: The Bank s emergency humanitarian assistance will cover three components, namely: (i) health/nutrition; (ii) water, sanitation and hygiene; and (iii) community mobilization. 5. Amount of the Emergency Humanitarian Assistance: The total amount of emergency grant to the Government is US$ 655,000. 6. Source of Financing: The emergency humanitarian assistance will be funded from the Special Relief Fund (SRF). 7. Implementation of the Emergency Humanitarian Assistance: The operation will be implemented by Africa Humanitarian Action (AHA) on behalf of the Transitional Federal Government (TFG). AHA is an African humanitarian NGO with sixteen years experience in 15 conflict-affected zones across the continent. It has the requisite organizational capacity and broad international experience in emergency projects to carry out the operation and manage the Bank s emergency assistance resources, backed by adequate operating procedures for procurement and delivery. The resources, expertise and experience of AHA are adequate to carry out procurements under SRF resources. AHA also has a standing agreement with the African Union and United Nations for humanitarian issues in Africa. 8. Conclusion and Recommendations: It is recommended that the Transitional Federal Government of Somalia be awarded a grant not exceeding USD 655,000 in accordance with the Bank s Revised Policy Guidelines and Procedures of Emergency Relief Assistance. 1 Food Security and Nutrition Analysis Unit for Somalia (FSNAU) 2009 post seasonal assessment and the USAIDsupported Famine Early Warning Systems Network (FEWS NET)

1. INTRODUCTION AND RATIONALE 1.1 Somalia is reaching a peak in its 18 years of humanitarian crisis, driven mainly by the armed conflict, generalized insecurity, extensive internal displacement and the situation is compounded by drought. Some 3.64 million Somalis are in need of emergency assistance or livelihood support, which is nearly half of the population. Currently, 1 in 5 children under the age of five are acutely malnourished, while 1 in 20 are severely malnourished. Somalia now has one of the highest levels of malnutrition in the world, with up to 240,000 children under-five affected, of which 63,000 are severely malnourished. More than two thirds of these children are located in south and central Somalia, the area most affected by the current conflict. 1.2 The humanitarian crises in Somalia are multifaceted related to the lack of human development and human security services. The crises and its impact have demanded more food aid, health care, shelter construction and water and sanitation activities. While the food aid is being handled by institutions such as the World Food Programme (WFP), of relevance to this proposal is the on-going crises in the health care and diseases prevention sectors. The health and nutrition, water, sanitation and hygiene, and the vehicles of community mobilization and operational support needed are missing to a point where emergency services have been crippled. This proposal seeks to address these challenges by focusing on the sectors mentioned above that are not being supported by other institutions. 1.3 The humanitarian crisis has been aggravated by the impact of the global recession. Remittances into Somalia declined by 25% due to increase in unemployment rate among the Somali Diaspora in the first half of 2009. Moreover, only 29% of the population has access to improved water sources and 23% to improved sanitation facilities. This situation threatens to push the country into further chaos and could aggravate the deterioration in food security, nutritional status and livelihood of the population. 2 The emergency requires a rapid response in order to arrest the currently worsening infant and maternal morbidity and mortality situation caused by malnutrition and diseases. The response will also bring down the high rates of illness and diseases caused by lack of access to clean water, poor sanitation and hygienic practices, especially in IDPs camps. The Transitional Federal Government of Somalia s (TFG) request to the Bank for emergency humanitarian assistance was received on 4 April 2010. 1.4 In terms of the criteria for Bank Group emergency assistance, the proposed relief operation will help the TFG address a serious humanitarian situation caused by drought, and worsened by a prolonged humanitarian crisis, that is beyond its capacity. It is well defined in scope and area of intervention to permit expeditious and effective interventions. Although the warlord infighting that has perpetuated the hardships continues, the reasonable measures proposed under the proposed operation will help restore some degree of normalcy in the social and economic lives of the target population. Therefore, the grant request from the TFG meets the eligibility criteria of the Bank s Revised Policy Guidelines and Procedures for Emergency Relief Assistance (ADB/BD/WP/2008/211.Rev.1/ADF/BD/WP/2008/173.rev.1), approved by the Board of Directors on 14 January 2009, as it relates to emergency relief operations. Furthermore, it is supportive to the African Union s ongoing efforts aimed at conflict prevention and peace building. 2 Food Security and Nutrition Analysis Unit for Somalia (FAO/FSNAU, Report 2009 and February 2010).

2. OVERVIEW OF THE EMERGENCY ASSISTANCE OPERATION 2.1 Scale of the Crisis 2 2.1.1 Somalia is facing its worst humanitarian crisis in 18 years, which is characterized by increasing food insecurity and high malnutrition rates due to the combined effects of the ongoing warlord fighting, internal displacement of the population, as well as recurrent drought leading to poor crop production and high food prices. The humanitarian crisis in Somalia is widespread and severe, with more than half of the population in need of emergency assistance. An estimated 3.64 million Somalis are currently in crisis, which represents a 13% increase since January 2009 and between 38% and 50% of the total population estimated between 7.5 and 9.8 million people. 3 According to the 2010 Consolidated Appeal, about 910,000 people are living in Humanitarian Emergency and 1.55 million IDPs being most vulnerable (see Table 1.1). Specifically, poor or failed rains in 2009 in 70% of the country, combined with previous rain failure, have led to deteriorating food security and intensifying drought conditions throughout Somalia. 4 The epicentre of the humanitarian crisis continues to be in Mudug, Galgadud and Hiran regions of south and central Somalia, due to the ongoing drought and civil unrest. In these areas, about 65% of the total population is in crisis and 66% in Humanitarian Emergency. Table 1.1: Magnitude of the Humanitarian Crisis Category Affected Population Female Male Total Internally Displaced Population 759,500 790,500 1,550,000 Humanitarian emergency-rural 379,750 395,250 775,000 Humanitarian emergency-urban 66,150 68,850 135,000 Acute food and livelihoods crisis- rural 323,400 336,600 660,000 Acute food and livelihoods crisis- urban 254,800 265,200 520,000 Totals 1,783,600 1,856,400 3,640,000 Source: OCHA, 2010 Somalia is reported to have one of the highest levels of malnutrition in the world, with up to 240,000 children under-five affected. 5 Approximately 1 in 5 children in Somalia are acutely malnourished and 1 in 20 is severely malnourished, with a national median acute malnutrition rate of 19% and a severe acute malnutrition rate of 4.6%. 6 Moreover, less than 50% of Somalis live in households with a sanitary means of disposing excreta. The lack of clean and safe water contributes significantly to high rates of illness and death. The impact of poor environmental sanitation is particularly felt in the cities, towns, large villages or other places where people live in close proximity. Poor hygiene and environmental sanitation are major causes of diseases such as cholera and Acute Watery Diarrhoea (AWD) among children and women throughout Somalia. The average child in Somalia experiences several episodes of diarrhoea each year, which is a leading cause of death among children under-five and accounts for 20% of all morbidities. It is 3 Food Security and Nutrition Analysis Unit for Somalia (FSNAU) 2009 post seasonal assessment and the USAIDsupported Famine Early Warning Systems Network (FEWS NET). 4 FEWSNET 5 2010 FAO/FSNAU and FEWSNET report 6 U.N World Health Organization (WHO) emergency thresholds of 15% (acute malnutrition) and 1% (severe acute, respectively.

3 against this background that the Bank has been approached by the TFG of Somalia for emergency assistance, this being their first request in 2010. 2.1.3 The emergency needs of the vulnerable Somali population under consideration for Bank humanitarian assistance falls into two main sectors, that it, Health/Nutrition and Water and Sanitation. According to the Consolidated Appeal Process (CAP), the entire cost for the nutrition/health and WASH clusters amounts to US$137 million. Meanwhile, the TFG has identified many pockets of particular hardships where rapid interventions will make a significant difference. Hence, the Bank s token contribution to the humanitarian crisis in Somalia will complement assistance being provided by development partners operating within the CAP framework. 2.2 Reactions by the National and International Community 2.2.1 Given the fact that the TFG has neither the resources nor the capacity to handle the humanitarian crisis of this magnitude, the support largely comes from the international community. In December 2009, the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) launched a humanitarian appeal for Somalia for assistance towards the emerging humanitarian situation already described as acute and worsening. The 2010 appeal seeks to mobilize US$ 689 million in support of 174 projects from 14 UN agencies and 57 international and national non-governmental organizations (NGOs). As at 25 November 2010, OCHA estimates the donor funding at USD 471.92 million. 2.3 Previous Bank s humanitarian assistance operations in Somalia 2.3.1 The Bank has previously provided two emergency assistance grants amounting to USD 500,000 each, to the population of Somalia directly through specialized agencies of the United Nations and NGO operating in the country in connection with i) the 2004 tsunami disaster and, ii) the 2006 severe drought-which affected the country. These two operations were satisfactorily implemented. 2.4 Lessons learned from previous similar operations 2.4.1 The conditions for implementing emergency assistance operations in Somalia are still extremely difficult. In many parts of the country, the safety of the relief workers is not guaranteed, neither is the minimum required- supporting infrastructure available. This poses severe logistical and security problems for project implementation, thus making relief operation in Somalia highly costly and enormously challenging. 2.4.2 To ensure a smooth implementation of the Bank s operation, a cautious approach, in line with the Bank s Emergency Assistance Policy Guidelines, must be adopted to ensure that the implementation of the emergency humanitarian relief assistance is entrusted to appropriate organizations operating in the field at the time of the emergency and that funds are released only after firm and adequate arrangements for project implementation have been made by the collaborating agencies. In this regard, the Transitional Federal Government of Somalia has selected Africa Humanitarian Action (AHA), an NGO operating in Somalia as the executing Agency.

4 3. BANK S EMERGENCY OPERATION 3.1. Objectives 3.1.1 The project objective is to contribute to the ongoing efforts by the international community to reduce high rates of illness and death caused by poor nutrition, lack of clean and safe water and poor sanitation, particularly in Mogadishu and the surrounding areas. 3.2 Description of the Operation To achieve the set objective, the SRF emergency humanitarian assistance will cover two sectors, Health/Nutrition and WASH. It will involve (i) provision of vaccines, Vitamin A, iron and food supplements to mothers and children in Mogadishu and surrounding area; (ii) procurement of chlorine for the prevention of cholera during the rainy season as well as purchase of sanitary tools and other equipment necessary for improving the safety of drinking water, and (iii) improvement of water and sanitation systems, as well as construction of latrines, hand washing facilities and sanitary tools. Priority interventions will be focused on primary and intermediate/secondary schools in the Waberi, Wadajir and Hamar Ja-jab districts of Mogadishu. In view of the fluid security situation in the country, AHA will provide a Rapid Assessment Report on the facilities proposed for improvement for Bank s review prior to the commencement of implementation activities. 3.2.2 To ensure results, the assistance will include a significant level of community mobilization, involving social marketing, health promotion and communication. The Bank s assistance will complement the support provided by other development partners in various areas of need as reflected in the CAP. 3.3 Institutional Arrangements 3.3.1 In accordance with the Bank s emergency assistance guidelines and following a proposal by the Government, Africa Humanitarian Action (AHA) will serve as the Executing Agency. AHA has over 16 years of service record from several conflict-affected zones across Africa. It has the required capacity in terms of human and organizational resources, and has executed a minimum of 17 projects since its establishment in 1994, some of which involved emergency responses and routine maintenance after various types of disasters (see Annex II). 7 Furthermore, AHA has strong working relationships with UNHCR, the African Union, the United Nations and many other humanitarian actors. AHA will manage the Bank s contribution based on a Tripartite Letter of Agreement (TLA) with the TFG and the Bank. 3.4 Cost and Financing 3.4.1 Based on U.N. estimates, the resources required to arrest the current humanitarian crisis in Somalia amounts to about USD 137 million. The international community is doing its best to mobilize necessary resources to maximize on impact. Bank Group contribution to the operation, 7 AHA will assign one project coordinator for the food/nutrition and WASH components. He/she will be supported and supervised by AHA s programme manager, and through secondment from other country operations as required. Local field officers and workers will also be used.

5 excluding taxes and customs duty, is USD 655,000, which represents about 0.48% of the total funds. The source of financing for the proposed operation is the Special Relief Fund. The breakdown of Bank financing is given in table 3.1 (Detailed cost estimates are provided in annex III). Due to persistent security threats in Somalia, AHA anticipates to incur additional security and logistic related costs. Notwithstanding, the total overhead costs estimated at about 15% compares favorably with other agencies whose costs are usually in the range of 20%. Table 3.1: Breakdown of the Cost of Emergency Assistance Description Estimated % Cost in US$ 254,000 38.8% Health and Nutrition: Provision of vaccines, Vitamin A, iron and food supplements to mothers and children in Mogadishu and surrounding area Water, Sanitation and Hygiene (WASH): Improvement of water systems to city 219,500 33.5% hospital (Martini Hospital) and 12 communities; community water supply systems for 6 localities; improvements to 20 community waste pits, 50 latrines and 10 hand washing facilities. Community Mobilization 23,500 3.6% Operations and Logistics 50,000 7.6% Sub-total 547,000 Programme Support (Personnel & Security) 78,000 11.9% Supervision & Reporting 30,000 4.6% TOTAL 655,000 100% 3.5 Procurement of Goods and Works 3.5.1 All procurement of goods, and works and related services under this operation will be in accordance with the Bank s Rules and Procedures for the Procurement of Goods and Works using the relevant current Bank Standard Bidding Documents or Executing Agency s modified bidding document deemed acceptable to the Bank. 3.5.2 Procurement of Goods: Items planned to be procured under the operation cannot be packaged because of their nature and variety, which will require various supply sources. Therefore, taking into account the scope of the work, urgency of the situation, and the nature of the demand, a fast-track procurement implementation is planned using Shopping or Direct Contracting procurement methods from within Somalia, if available, or based from the region. Direct Contracting can be used only on condition that the Executing Agency is able to provide strong written justification that is acceptable to the Bank. 3.5.3 Procurement of Works: For the improvement of existing water supply in the health care facilities and repair of waste pits, latrines and sanitation facilities for the communities, technically qualified experts for designing, supervision and follow up of the works will be deployed by the Executing Agency from nearby country operations. Labor force will be recruited from within Somalia as per the Executing Agency s daily rate. The community facilities should fulfill appropriate UN standards. Goods required for the works will be procured following Shopping Procedure.

6 Table 3.2: Procurement Arrangements with Cost Breakdown of Procurements Project Categories In US Dollars ( 000) Total Cost Shopping Others 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Goods Procurement of Vaccination for 5000 infants Procurement of Selective Feeding for 3000 infants Procurement of Vitamin A for 3000 infants Procurement of Iron Tablets for 3000 infants Procurement of Food Supplements for 2500 mothers Procurement of Chlorine Tablets for 2000 households Procurement of Sanitation Tools and Supplies for 2,500 Households 75,000 96,000 3,000 30,000 50,000 44,000 32,500 75,000 96,000 3,000 30,000 50,000 44,000 32,500 2 Works 2.1 2.2 2.3 2.4 2.5 Improvement of Water System for city hospital (Martini Hospital) and 12 communities Improvement of community Water SS Systems for 6 localities Improvements to 20 waste pits for community Improvements to 50 latrines for community Improvements to 10 community Handwashing Facilities 30,000 30,000 20,000 38,000 25,000 30,000 30,000 20,000 38,000 25,000 3.5.4 Review Procedures: The following documents are subject to review and approval by the Bank before promulgation; Short List of Suppliers for the goods Request for Quotation or Bidding Documents Bid Evaluation Reports, including recommendations for Contract Award To ensure economy and efficiency by way of safeguarding the procurement process, prior review procedure will be applied. The Executing Agency should submit the aforementioned documents and all Direct Contracting requests for the Bank s review and No-Objection.

7 3.5.5 Executing Agency: At the request of TFG, overall responsibility to carry out and follow up all procurement activities will lie with Africa Humanitarian Action (AHA). AHA was established in 1994 and is governed by an Assembly of Trustees. It has 16 years of experience in life saving humanitarian assistance to refugees, internally displaced persons (IDPs) and local communities across Africa. To date, more than 12 million people affected by crisis have benefited from the support of AHA in 15 countries. AHA has strong working relationships with UNHCR, International Red Cross, and has a standing agreement with the African Union and the United Nations for humanitarian issues in Africa. 3.5.6 The resources, expertise and experience of AHA are adequate to carry out procurements under SRF resources. AHA has a rich experience in emergency projects, backed by adequate operating procedures for procurement and delivery. AHA also has the expertise to rapidly mobilize and train local teams to deliver emergency relief supply; procure, stock-pile, manage and distribute supplies; set up therapeutic feeding centres; improve the water supply systems and sanitation facilities. It is capable of rapidly deploying emergency teams with the necessary skills and knowledge to tackle the particular emergency. 3.5.7. AHA is governed by an International Board of Trustees, which provides general policy direction and ensures quality and accountability both to affected populations and to donors. The Trustees appoint an Executive Board composed of five Trustees, which sets strategic priorities, monitors and evaluates performance, standards and results. With its Head Office located in Addis Ababa, Ethiopia, AHA currently employs approximately 1,400 staff throughout its country offices, 89% of whom come from the very local communities it serves. The more than 200 projects that AHA implements in partnership with UN and non-un international agencies, private foundations and corporate donors all of whom require a range of project reports; including quarterly financial reports, mid-year and annual narrative reports are delivered. AHA has completed numerous financial and project reports. AHA s projects are audited at the end of each fiscal year. In most cases, AHA and its donor partner will jointly select an independent external auditor to evaluate the projects. In some cases, donor partners will either select an external auditor on their own, or will have their internal auditors complete the evaluation. 3.6 Disbursement 3.6.1 In view of the urgent nature of the operation and the procurement characteristics, it is recommended that the entire grant be disbursed in one tranche and by direct payment to AHA, which shall have to open a separate Special Account at a commercial Bank acceptable to the African Development Bank for this operation. AHA will provide the account number into which the Bank s contribution will be paid as soon as the Government submits the disbursement request for the operation, and upon signature of the Tripartite Letter of Agreement, which inter alia, specifies the responsibilities of AHA as Executing Agency for this operation. 3.7 Implementation Schedule 3.7.1 For emergency operations, the Bank usually recommends a short implementation period not exceeding 6 months. Consequently, after approval by the Board, the key implementation stages as well as indicative deadlines are as follows:

8 Table 3.3: Provisional Implementation Schedule Activity Responsible Entity Target Deadline Approval of Grant AfDB December 2010 Signing of TLA AHA/TFG/AfDB December 2010 Presentation of disbursement request AHA January 2011 Implementation of activities AHA February - June 2011 Submission of audit report AHA/TFG December 2011 3.8 Reporting, Supervision and Auditing 3.8.1 In view of the volatile security situation in Somalia, no Bank specific supervision mission is planned, except for those to be undertaken by AHA staff. Given that its headquarters are located in Addis Ababa, the project will be supervised from ETFO. Moreover, AHA will have to carry out an external audit of the project and submit an audit report and project completion report once all the activities have been completed.

4. CONCLUSIONS & RECOMMENDATIONS 4.1 Conclusions 9 4.1.1 Enormous challenges persist in the search for durable peace in Somalia and the country is now facing one of its worst humanitarian crisis, with some 3.64 million of its population in need of immediate humanitarian assistance in several sectors including health care, nutrition and clean water and sanitation. This situation threatens to push the country into further chaos, which could have a significant destabilization impact on the entire Horn of Africa. In view of the gravity of the situation, the UN has launched a humanitarian appeal. Therefore, the proposed assistance is in line with the Bank s guidelines and procedures for emergency relief assistance. 4.2 Recommendations 4.2.1 It is recommended that the Bank provides the Transitional Federal Government of Somalia a grant not exceeding USD 655,000 from the Special Relief Fund to finance: (i) provision of vaccines, Vitamin A, iron and food supplements to mothers and children; (ii) procurement of chlorine for the prevention of cholera as well as purchase of sanitary tools and other equipments necessary for improving the safety of drinking water; (iii) improvement of water and sanitation systems, as well as rehabilitation of latrines, hand washing facilities and sanitary tools; and, (iv) related community mobilization activities. 4.3 Conditions As conditions precedent to Disbursement, i) the Transitional Federal Government of Somalia will forward to the Bank the Agreement Letter regarding the implementation of activities financed from grant resources and specifying the respective responsibilities of the beneficiary, and ii) the.executing Agency will communicate to the Bank, the details of the Special Account to receive the grant funds.

Request by the Government Annex I

Annex II Assessment Matrix of Implementing Institution: Africa Humanitarian Action INDICATORS 1 INDICATORS OF OPERATIONS COMPLETED SINCE INCEPTION 1.1 Number of Emergency Operations Regions Served Burundi (Since 1996) Cameroon (Since 2010) DR Congo (Since 2004) Ethiopia (Since 1997) Liberia (Since 1997) Cape Mount, Namibia (Since 2001) Rwanda (Since 1994) Sudan (Since 2004) Uganda (Since 1995) Zambia (Since 1999) 1.2 Number of Operations Completed Algeria ( 2003) Angola (1996 2007) Chad (2005 2007) Guinea (2003-2006) Kenya (2003) Sierra Leone (1997-1998) Somaliland (2006) 2 TECHNICAL CAPACITY 2.1 Human Resources AHA is governed by an International Board of Trustees, which determines AHA s general policy and ensure quality and accountability both to affected populations and to donors. The Trustees appoint an Executive Board of five Trustees, which sets strategic priorities and monitors and evaluates performance, standards and results. With its Head Office located in Addis Ababa, Ethiopia, AHA currently employs approximately 1,400 staff throughout its country offices, 89% of whom come from the very local communities it serves. 2.2 Logistical Capacity Owing to its experience of 16 years, AHA is capable to rapidly deploy emergency teams with the necessary skills and knowledge to tackle the particular emergency. Once on the ground, AHA also has the expertise to rapidly mobilize and train local teams to deliver emergency relief supply; procure, stock-pile, manage and distribute supplies; set up therapeutic feeding centres; rehabilitate water supply systems; and build sanitation facilities. Burumbura, Gitega, Muyinga, Rutana Mandjou, Bolembe Kinshasa, Equateur, Katanga Addis Ababa, Welayita, Dolo Ado, Afar Monrovia, Gbarpolu, Bomi, Grand Rivercess, Margibi Windhoek, Osire Kigali, Kibuye, Kiziba Khartoum, North Darfur, Kurmuk Kampala, Adjumani, Nakivale Lusaka, Mayukwayukwa, Nangweshi Single intervention during earthquake Luanda, Uige, M Banza Congo N Djamena, Abéche, Hajer Jadid Conakry Single project with GLIA assistance Western Sierra Leone One-time health emergency assistance in Hargeisa

2.3 Number of Project Reports Completed More than 200. Typically, each project that AHA implements in partnership with UN and other donors in any given year requires quarterly financial reports as well as mid-year and annual narrative reports. Over the course of 15 years and 16 countries, AHA has completed numerous financial and narrative project reports. In addition to UNHCR, AHA has worked with various UN and non- UN international agencies, private foundations and corporate donors all of whom require a range of project reports. 2.4 Number of Audit Reports Prepared More than 100. As with project reports, AHA s projects are audited at the end of each fiscal year. In most cases, AHA and its donor partner will jointly select an independent external auditor to evaluate the projects. In some cases, donor partners will either select an external auditor on their own, or will have their internal auditors complete the evaluation. In the case of AHA s Head Office, AHA has been covering its own audit cost for the last 15 years and has been contracting reputable external auditors to conduct the audit

Annex III