BUDGET REVISION TO PROTRACTED RELIEF AND RECOVERY OPERATION (PRRO) occupied Palestinian territory No
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1 BUDGET REVISION TO PROTRACTED RELIEF AND RECOVERY OPERATION (PRRO) occupied Palestinian territory No Targeted Assistance for Relief, Support to Productive Activities and Skills Development for Vulnerable Non-Refugee Palestinians. *including cash transfers of US$ 249,260 Cost (United States dollars) Present budget Increase Revised budget Food cost 107,000,566 13,297,094* 120,297,660 External transport 15,350, ,702 16,187,831 LTSH 20,798,529 1,765,299 22,563,828 ODOC 3,798,686 1,079,420 4,878,106 DSC 10,264,355 1,578,340 11,842,695 ISC (7%) 11,004,858 1,299,050 12,303,908 Total cost to WFP 168,217,123 19,856, ,074,028 NATURE OF THE INCREASE 1. This budget revision proposes a four-month extension-in-time, with a corresponding increase in tonnage and associated costs (DSC, ODOC and LTSH), to meet the continuing food needs of the vulnerable non-refugee population in the occupied Palestinian territory (opt). 2. The budget revision amounts to an overall increase of US$19,856,905 and includes an additional 22,366 mt of food commodities. JUSTIFICATION FOR EXTENSION-IN-TIME AND BUDGET INCREASE Summary of existing project activities 3. The objectives of protracted relief and recovery operation (PRRO) are to meet the food needs of the most vulnerable food-insecure non-refugees and to support the Palestinian Authority (PA) in poverty reduction efforts. The PRRO has three components: (i) protracted and emergency relief, (ii) recovery through support for productive activities and skills development, and (iii) enhanced knowledge, partnerships and advocacy. 4. The PRRO was initially designed to support non-refugee Palestinians in Gaza and the West Bank. Following the January 2009 conflict in Gaza, however, emergency operation (EMOP) took over all WFP activities in the Gaza Strip, including those carried out under the PRRO. A budget revision of PRRO was approved in February 2009 to reflect the removal of the Gaza requirements from the PRRO. 5. The revised PRRO , which focuses only on the West Bank, provides general food distributions (GFD), school feeding (SF), cash for work (CFW), food for work (FFW) and food for training (FFT). In August 2009, the PRRO also started providing joint WFP/UNRWA food 1
2 assistance to respond to the needs of marginalized herding communities in areas under the control of the Israeli security and civil administration known as Area C 1. Conclusions and recommendations of the re-assessment 6. The WFP/FAO 2009 Socio-Economic and Food Security Survey (SEFSec) of the West Bank found 25 percent of households to be food-insecure and 11 percent vulnerable to food insecurity. Despite a worsening socio-economic situation, food insecurity levels in the West Bank have remained stable since 2006, indicating that food assistance is preventing a worsening situation. 7. Food insecurity in the West Bank is primarily the consequence of income poverty and an erosion of livelihoods, which are constraining household access to sufficient quantities and quality of food. There is limited scope for improved food security unless restrictions on movement, access to resources and work permits are eased by the Israeli government. 8. Palestinians in the West Bank are reducing their food intake, especially parents who limit consumption to allow their children more to eat. The SEFSec survey found that 42 percent of the surveyed population had decreased spending on food, 37 percent had reduced the quality of food purchased and 34 percent had reduced the quantity of food purchased. 9. The socio-economic environment in opt can change rapidly. The current political situation is volatile with possible elections in the coming months. WFP has participated in the Inter- Agency Contingency Plan, and has taken a lead in developing a food security response plan for the West Bank and Gaza. The CO is finalizing an internal contingency plan in line with the planning scenarios of the Inter-Agency Plan. Purpose of extension and budget increase 10. The budget revision proposes an extension-in-time, from March 2010 to June 2010, to provide continued food assistance to the non-refugee Palestinian population in the West Bank affected by the prolonged political crisis. 11. The extension-in-time will provide additional time for the country office to implement the recommendations of the 2009 FSVA Report, the SEFSec survey, the results of the external evaluation and the School Feeding Policy Paper formulation. These supporting measures will form the basis of the design of the next PRRO planned to start in July The budget revision provides for an increase in ODOC of US$1,079,420 in order to implement the food assistance components of the PRRO, namely General Food Distribution (GFD) for the destitute and vulnerable groups, Supplementary Feeding, and Food for Work/Food for Training (FFW/FFT). 13. The opt school feeding strategy is built around a component of local procurement /local processing that is an effective means of supporting the local economy. As such, the CO is working with bakeries and women s groups to provide nutritious snacks to schools. Following the recommendations of HQ-led missions on the quality of the wheat flour, the CO revised food processing agreements with bakeries, moved away from a swap system whereby in-kind commodities are exchanged for final bakery products and has instead started using ODOC to cover a part of the food processing costs. The biscuits are prepared by women s associations 1 Area C, approximately 60 percent of the West Bank, is under the complete Israeli control of security and civil administration. It is sparsely populated and consists of most of the agricultural land in the West Bank. Source: Food Security and Vulnerability Analysis (FSVA) Report, WFP/FAO,
3 and local bakeries, through Cash for Work (CFW), thus also providing job opportunities and productive skills to 130 women and 32 unskilled labourers. The CFW requirement under the period of the extension-in time of this PRRO totals US$249, The Ministry of Agriculture (MOA) recently approached WFP to consider an expanded role within the Agriculture and Livelihood Sector and an active role in the climate change strategy of the Palestinian Authority. As a result, new FFW projects have been initiated with the MOA, leading to an increase in the FFW/FFT ODOC component 2. The ODOC will be used to supply tools, equipment, seedlings and materials required to carry out activities in the Government s Greening Palestine strategy. 15. ODOC is also essential to maintain regular monitoring of socio-economic and food security indicators which, in turn, are crucial to allow adjustments to programme interventions to keep pace with changing socio-economic conditions in Palestinian households. WFP and FAO are supporting the Palestinian Central Bureau of Statistics (PCBS) to collect data to ensure that biannual SEFSec surveys take place. This monitoring system will be institutionalized within the regular Palestinian statistics information system. 16. The increase in DSC of US$1,578,340 under this budget revision is to cover the cost of staff salaries and related expenditures. 17. There is no increase in the number of beneficiaries of the PRRO as shown in Table 1 below: Table 1. Beneficiaries Beneficiaries Activity Present Increase Revised Total 413, ,000 FOOD REQUIREMENTS 18. An additional 22,366 mt of food commodities are required to cover the extension-in-time of the activities shown below in Table 2. Table 2. Food requirements by activity Food Requirements (mt) Activity Present Increase Revised Assistance to the destitute 59,554 6,083 65,637 Assistance to most vulnerable groups 29,097 1,858 30,955 Contingency emergency assistance 7, ,379 Total relief 96,248 8, ,970 Food for work 41,856 6,541 48,397 2 FFW/FFT activities include: building and/or rehabilitating agricultural roads, retaining walls, water cisterns and animal shelters; soap processing, hay basket-making, tree-pruning, and bee-keeping; conducting economic studies for agricultural projects, greenhouses, land preparation, planting of seeds and seedlings, and harvesting. Inputs include: training materials, veterinary and pest treatments, medicine plants, seeds and seedlings, raw materials and tools. 3
4 Food for IGA and vocational training 9,934 2,131 12,065 Food for education - life skills 10,927 2,131 13,058 Food for education - school feeding 6,822 2,841 9,663 Total recovery 69,539 13,643 83,182 Total 165,787 22, , There are no changes to the food rations or the modalities of food distribution to beneficiaries. Approved by: Josette Sheeran Executive Director, WFP Date 4
5 ANNEX I A WFP COSTS BUDGET INCREASE COST BREAKDOWN Quantity (mt) Average Cost per mt Value (US$) A. Direct operational costs Commodity 3 Cereals 16, ,231,208 Pulses 1, ,550 Oil and Fats 1,402 1,190 1,668,380 Mixed and Blended Food 33 1, ,940 Other 3,233 1, ,183,756 Cash Transfer to Beneficiaries 249, Total commodities 22,366 13,297,094 External transport 837,702 Landside transport Subtotal for ITSH Total LTSH 1,765,299 Other direct operational costs 1,079,420 Total direct operational costs 16,979,515 B. Direct support costs (see Annex II for details) Total direct support costs 1,578,340 C. Indirect support costs (7 percent of total direct costs) 1,299,050 TOTAL WFP COSTS 19,856,905 3 This is a notional food basket used for budgeting and approval purposes. The precise mix and actual quantities of commodities to be supplied to the project, as in all WFP-assisted projects, may vary over time depending on the availability of commodities to WFP and domestically within the recipient country. 5
6 ANNEX IB DIRECT SUPPORT REQUIREMENTS (US$) Staff International professional staff $286,140 Local Staff National Officer $175,000 Local Staff General Service $495,800 International Consultants Honoraria- Payroll $30,000 Overtime $31,000 Staff duty travel $62,320 Staff training and development / Hazard Pay & Hardship allowance $10,800 Subtotal $1,091,060 Office expenses and other recurrent costs Rental of facility $96,400 Utilities (general) $16,000 Office supplies $15,880 Communication and IT services $48,000 Insurance Equipment repair and maintenance $18,000 Vehicle maintenance and running cost $60,000 Office set-up & repairs $48,000 United Nations Organizations Services Subtotal $302,280 Equipment and other fixed costs Furniture tools and equipment / Local security costs planning $84,000 Vehicles Leasing $51,000 TC/IT equipment $50,000 Subtotal $185,000 TOTAL DIRECT SUPPORT COSTS $1,578,340 6
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