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

Pages

List of Tables, Annexes, Acronyms and Abbreviations, Executive Summary

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 Expected

Results

REACH (Target

population)

Performance

Indicators

Indicative Targets

and Time Frame

Assumptions/Risk

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.

Long-Term

Output:

Reduce the risk

of morbidity and

death from

malnutrition and

poor sanitation

among IDPs.

Vulnerable

populations (women,

children, IDPs), in

particular in

Mogadishu and

surrounding areas

Percent of children

under five years of

age with severe

malnutrition

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

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

iii) Improvement of community

water and sanitation systems

Resources: AfDB: USD 655,000

Outputs:

Food

supplements,

therapeutic feeds

distributed to all

pregnant women,

lactating

mothers, children

<5, school age

children in IDPs;

Water

purification

tablets

distributed to all

vulnerable

households in

IDPs;

Community

mobilized in

promotion of

safer practices.

Women, Children

and IDP households

Women, school

children, teachers,

religious leaders and

elders.

Number of Vitamin

A, iron and food

supplements

procured and

distributed.

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.

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.

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.

No procurement delays.

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 USAID-

supported 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

2. OVERVIEW OF THE EMERGENCY ASSISTANCE OPERATION

2.1 Scale of the Crisis

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

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 USAID-

supported 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.

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

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$

%

Health and Nutrition: Provision of vaccines, Vitamin A, iron and food supplements

to mothers and children in Mogadishu and surrounding area

254,000 38.8%

Water, Sanitation and Hygiene (WASH): Improvement of water systems to city

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.

219,500 33.5%

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 2.1

2.2 2.3 2.4 2.5

Works 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.

9

4. CONCLUSIONS & RECOMMENDATIONS

4.1 Conclusions

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.

Annex I

Request by the Government

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)

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

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)

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 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.

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