PROJECT BUDGET REVISION FOR APPROVAL BY THE REGIONAL DIRECTOR

PROJECT BUDGET REVISION FOR APPROVAL BY THE REGIONAL DIRECTOR 5) To: Initials In Date Out Date Reason for Delay David Kaatrud, Regional Director 4) Through: Initials In Date Out Date Reason for Delay Peter Guest, Senior Programme Adviser, RB 3) Through: Initials In Date Out Date Reason for Delay Logistic Officer, RB 2) Through: Initials In Date Out Date Reason for Delay Resource Management Analyst, RB 1) From: Brenda Barton Initials In Date Out Date Reason for Delay Country Office Sri Lanka, EMOP 201072 BR No. 1 Total revised number of beneficiaries 100,000 Duration of entire project 7 months Extension / Reduction period 1 month extension Gender marker code 2A WFP food tonnage 22.5 mt Start date: 15/04/2017 End date: 15/10/2017 Extension Period: One Month New end date: 15/11/2017 Cost (United States dollars) Current Budget Increase (Decrease) Revised Budget Food and Related Costs US$ - US$ 24,413 US$ 24,413 Cash and Vouchers and Related Costs US$ 2,437,500 US$ 2,430,000 US$ 4,867,500 Capacity Development & Augmentation US$ - US$ - US$ DSC US$ 459,183 US$ - US$ 459,183 ISC US$ 202,768 US$ 171,809 US$ 374,577 Total cost to WFP US$ 3,099,451 US$ 2,626,221 US$ 5,725,672 CHANGES TO: Food Tool C&V Tool Project Rates MT C&V Transfers CD&A LTSH ($/MT) Commodity Value C&V Related Costs DSC ODOC ($/MT) External Transport Project duration C&V Related (%) LTSH Other DSC (%) ODOC

NATURE OF THE INCREASE 1. This budget revision will increase the current food assistance for disaster struck Sri Lankans to include households affected by the May 2017 floods. The floods were spread across 5 major river basins and have affected approximately 620,000 people, resulting in 202 deaths and the destruction of thousands of houses. A total of 382 temporary camps have been set up to provide temporary accommodation to over 80,000 people. The floods occurred in the southwest of the country and constitute the worst flooding since 2003. Meanwhile drought conditions continue in the north and eastern part of the country. 2. Under this budget revision, an additional 75,000 beneficiaries (36,000 male and 39,000 female) will be reached using the EMOP cash-based modality, whereby an immediate cash transfer is channelled through the existing Samurdhi social safety net programme. The monthly transfer value (USD 65 per household) will remain unchanged. Assistance will be provided for a period of two months for a total transfer value of USD 130 per beneficiary household. An additional one-off distribution of pulses (lentils) to all beneficiaries in camps aims to provide variety and added nutrition to the cooked meals already being provided by the Ministry of Disaster Management (MDM). 3. LTSH will be managed by the Ministry of Disaster Management who will facilitate the transport of the pulses to the temporary camps and oversee distribution of the rations by district governments. 4. The EMOP monitoring framework EMOP will be applied to the additional flood-affected households, including a baseline survey and monthly process and outcome monitoring. 5. The total increase in cost of the emergency operation will be USD 2,626,221, including USD 2,430,000 for C&V and USD 24,413 for in-kind food. No additional DSC will be applied as operational costs will be covered under the current budget. JUSTIFICATION FOR THE REVISION Summary of existing project activities 1. Towards the end of 2016 and at the beginning of 2017, Sri Lanka experienced the worst drought in 40 years, affecting most parts of the country and particularly the north-west. The total cumulative rainfall received during 2016 was below normal and failed to bring enough rainfall in the wet and dry zones of the country. As a result, the March 2017 Maha harvest was less than 50 percent of normal production. A joint impact assessment showed that 900,000 people suffered from food insecurity. The assessment also found that poor food consumption was twice as likely to occur in female-headed as in male-headed households. Loss of income led to increased levels of debt among the poor, and diminished the seed-base of paddy in the country for subsequent plantings. The 2017 May-September season harvest is also expected to be only around 50 percent of the average. 2. Based on findings from the joint drought assessment, 25,000 people (6,250 households) in the four worst drought affected districts were determined to be severely food insecure and in need of urgent food assistance.

3. Each beneficiary household of four members (the average family size in Sri Lanka) will receive USD 65 per month as unrestricted cash assistance, equivalent to approximately Rs 10,000. The cash transfer value per household was set in line with government standards during the drought assistance. It is based on current market prices for a basic emergency food basket of rice, lentils, oil and vegetables satisfying the daily nutrition and minimum energy requirement of 2,100 kcal per person and per day. 4. Targeting of beneficiaries will be done in several steps. The initial step will use the Samurdhi beneficiary database to filter categories of the most vulnerable households registered in the target districts. The shortlist of vulnerable households will be further reviewed by Division level committees consisting of local Samurdhi officers, disaster response officers, village officer and community leaders, village representatives and members from welfare societies. These committees will review the target list to verify and validate that households meet the vulnerability criteria and ensure that only those who are landless paddy farmers or casual labourers are selected. Women will equally participate in the decision-making committees and on the targeting list. 5. Funds will be transferred to the targeted households via the Treasury according to national regulation through local governments and to the Samurdhi banking system, which has some 1,075 community development banks nation-wide. All Samurdhi beneficiaries have accounts with this community development banking network. 6. In addition, WFP is working with the government to set up a vulnerability analysis system to continuously assess the impact of the drought during the coming year, using a combination of remote sensing data, field data collection and mobile phone surveying techniques (mvam). The vulnerability analysis system will be operated by the Disaster Management Center of the Ministry of Disaster Management with whom WFP is also engaged for institutionalizing a 72 hours assessment approach. Conclusion and recommendation of the re-assessment. 7. During 25 th -26 th May the monsoon season hit the southern districts of the country in full force, causing severe flooding and landslides in 5 river basins, affecting 15 districts across the south and east of the country. More than 200 people are reported to have died and estimated 620,000 people (approximately 315,000 men and 305,000 women) were displaced. Rain continued intermittently over the following three days, leaving people stranded and cut off from both road and river access. Two major towns were completely inundated, over 8,000 houses were destroyed or damaged, and roads throughout the affected area were washed out. Landslides continued to occur throughout the week, further damaging villages and forcing people who had evacuated high-risk areas to seek shelter in the temporary safety shelter. According to the latest assessment, 93 people remain missing and up to 80,000 people have sought shelter in temporary camps. Flooding of this extent, in the most affected districts, has not been witnessed since 2003. A map of the impact is attached as Annex 2. 8. Immediately following the flood event, a preliminary assessment was carried out using the 72- hour assessment approach with the Ministry of Disaster Management. Estimates derived from the latest assessment indicate that out of the total of 1.1 million impacted up to 75,000 people are in most urgent need of assistance.

9. Despite these floods, little or no rain has fallen in the drought affected northern districts, resulting in a situation of extreme weather events impacting vulnerable households and damaging livelihood assets across both the north and south of Sri Lanka. A follow-up mvam assessment of the drought situation is currently being planned. Until then the food security needs remain as initially calculated. There is no change in the assistance being given to drought affected households under this budget revision. Purpose of change in project duration and budget increase. 10. The purpose of the budget revision is to expand the existing Emergency Operation to reach flood-affected people through a combination of cash-based and in-kind assistance. Requests for assistance from the Ministry of Foreign Affairs have been formally delivered to WFP and the Resident Coordinator s Office. 11. An immediate one-off in-kind ration of pulses will be provided across nine of the most affected districts to people taking refuge in the camps that have been set up and are being operated by the district governments. Daily meals are provided by the government but the Ministry of Disaster Management has express a strong need for immediate food assistance in order to enhance the minimal cooked meals that are being provided. A written requests has been made to WFP for this purpose. The supply of pulses will cover a portion of the basic food basket with 100g rations for 75,000 people for three days. 12. Protection concerns are high in the temporary camp settings, and reports of gender-based violence (GBV) and child protection issues have been raised in similar previous emergencies. Blanket supply of additional food to camp inhabitants will help ensure all beneficiaries have access to some kind of food all the time at the time of greatest need. People are expected to return to their homes within two weeks after the flood as waters recede and road access is reestablished. 13. Cash-based assistance will be provided to vulnerable, food insecure households who have lost homes or livelihoods or are at risk of food insecurity. Assistance will be target towards the Priority One GNs (GN is the lowest administrative level area in Sri Lanka) as identified in the 72-hours assessment conducted by the DMC with support from WFP in the four worst affected districts of Matara, Ratnapura, Kalutara, and Galle (these districts do not overlap with those under the drought response) and will cover 75,000 people, approximately 6% of the total affected population as identified by the rapid assessment. The monthly household ration will be approximately $65 for two months. The targeting of beneficiaries will be facilitated to the extent possible through the government social safety net programme, Samurdhi. Gender concerns for needs of beneficiaries that are already identified under the EMOP are also applicable for the flood affected caseload, as female-headed households are more likely to face difficulty re-establishing livelihoods and encounter greater labour market discrimination. 14. In order to reach the new beneficiary caseload for a two-month period, a one month project extension will be required. 15. The Ministry Social Empowerment and Welfare (MSEW) will continue to be the direct government partner for the implementation of the operation. The Ministry of National Policies and Economic Affairs remains WFP s designated interlocutor for the government and is also participating in the oversight and coordination of the flood response.

16. The extension of the EMOP with this additional caseload and in additional geographical areas will continue to seek to improve the capacity of the Samurdhi social safety net scheme to operate as a shock responsive safety net. Opportunities will be sought to improve efficiencies in transfer processes as well as to strengthen partnerships for identifying and targeting vulnerable households through the social safety net scheme. TABLE 1: BENEFICIARIES BY ACTIVITY Activity Category of beneficiaries Current Increase Revised Emergency CBT One round emergency in-kind assistance Boys / Men Girls / Women Total Boys / Men Girls / Women Total Boys / Men Girls / Women Total 12,250 12,750 25,000 36,000 39,000 75,000 48,250 51,750 100,000 - - - 36,000 39,000 75,000 36,000 39,000 75,000 TOTAL 12,250 12,750 25,000 36,000 39,000 75,000 48,250 51,750 100,000 17. Describe the changes in modalities of food/cash transfer to beneficiaries (if applicable). TABLE 2: REVISED DAILY FOOD RATION/TRANSFER BY ACTIVITY (g/person/day) Activity 1 Activity 2 Dhal Cash/voucher (US$/person/day) TOTAL Revised duration 0.54 Revised Total kcal/day 338 % kcal from protein 33.3% % kcal from fat 2.7% Number of feeding days per year or per month (as applicable) 100g 30 days per month for two months 3 days per month for one month

FOOD REQUIREMENTS 18. Outline the additional and total food quantity needed for achieving revised operation TABLE 3: FOOD/CASH AND VOUCHER REQUIREMENTS BY ACTIVITY Activity Commodity 1 Food requirements (mt) Cash/Voucher (US$) / Cash & voucher Increase / Current Revised total Decrease Emergency CBT Cash transfer 2,437,500 2,430,000 4,867,500 Emergency in-kind assistance TOTAL Dhal 0 22.5mt 22.5mt Hazard / Risk Assessment and Preparedness Planning 19. The inclusion of in-kind assistance to beneficiaries in camps adds a new small additional lowlevel risk to the EMOP. As this assistance will be undertaken in a camp setting, 20. There is no significant change in the type or mode of cash-based assistance being provided to the affected population. Drafted by: Chris Turton, Country Office Cleared by: Brenda Barton, Country Office on [2 June 17] Reviewed by: [Siemon Hollema, Michiel Meerdink] RBB Cleared by: [Peter Guest Regional Bureau on [2 June 2017] 1 Please only present overall food requirement. Do not split by commodity.

ANNEX I-A PROJECT COST BREAKDOWN Quantity (mt) Value (US$) Value (US$) Food Transfers Cereals - - Pulses 22.5 24,413 Oil and fats - - Mixed and blended food - - Others - - Total Food Transfers - - External Transport - LTSH - ODOC Food Food and Related Costs 2 24,413 24,413 C&V Transfers 2,430,000 C&V Related costs - Cash and Vouchers and Related Costs - 2,430,000 Capacity Development & Augmentation - - Direct Operational Costs 2,454,413 Direct support costs (see Annex I-B) Total Direct Project Costs Indirect support costs (7.0 percent) 3 171,808 TOTAL WFP COSTS 2,626,221 2 This is a notional food basket for budgeting and approval. The contents may vary. 3 The indirect support cost rate may be amended by the Board during the project.

ANNEX I-B DIRECT SUPPORT REQUIREMENTS (USD). No additional DSC for this Budget Revision WFP Staff and Staff-Related Professional staff * General service staff ** Danger pay and local allowances - Subtotal Recurring and Other Capital Equipment Security Travel and transportation Assessments, Evaluations and Monitoring 4 TOTAL DIRECT SUPPORT COSTS * Costs to be included in this line are under the following cost elements: International Professional Staff (P1 to D2), Local Staff - National Officer, International Consultants, Local Consultants, UNV ** Costs to be included in this line are under the following cost elements: International GS Staff, Local Staff - General Service, Local Staff - Temporary Assist. (SC, SSA, Other), Overtime 4 Reflects estimated costs when these activities are performed by third parties. If WFP Country Office staff perform these activities, the costs are included in Staff and Staff Related and Travel and Transportation.

Number and distribution of affected people and number of established camps