BUDGET INCREASE TO EMERGENCY OPERATION BANGLADESH 10715.0 Food Assistance to Cyclone-Affected Populations in Southern Bangladesh Cost (United States dollars) 1 Present budget Increase Revised budget Food cost 35,152,717 18,714,647 53,867,364 External transport 5,248,729 4,322,094 9,570,823 LTSH 3,735418 471,488 4,206,906 ODOC 2,256,910 591,291 2,848,201 DSC 2,572,175 613,952 3,186,127 ISC (7%) 3,427,616 1,729,943 5,157,560 Total cost to WFP 52,393,565 26,443,415 78,836,981 I Nature of increase 1. A budget revision is required for: Extension-in-time of the emergency operation 10715.0 to 31 December 2008; Increase in budget for (i) extended relief distributions; (ii) recovery (food-for-work and cash-for-work) activities; (iii) emergency school feeding; and (iv) the micro-nutrient powder (MNP) initiative. II Justification for extension and budget increase 2. The WFP emergency operation (EMOP 10715.0) was approved on 28 November 2007 to provide assistance to 2.2 million people affected by Cyclone Sidr. The EMOP consists of four activities: 1) general food distribution (GFD); 2) recovery activities through food for work and cash for work; 3) emergency school feeding (ESF); and 4) implementation of a Micro-Nutrient Powder (MNP) initiative targeting pregnant and lactating women and children aged between 6 59 months. The EMOP is currently assisting 2.3 million beneficiaries 2 through GFD and 117,000 children through emergency school feeding. 3. WFP has undertaken a comprehensive emergency food security assessment (EFSA) since the EMOP was launched. The population in the worst-affected districts has suffered a significant loss in crop production and assets. The local economy has slowed down dramatically, resulting in lower wages and fewer work opportunities. Poor people normally depend on income from casual work to support themselves and their families during the lean season. Moreover, the local impact of rapidlyincreasing commodity prices is further eroding the ability of poor people to access adequate and nutritious food. In Bangladesh there is a strong correlation between malnutrition rates and high food prices. With the increase in the price of rice, poor households typically cut down their food intake and reduce the consumption of fruit, pulses and other commodities rich in protein and micronutrients. 4. The continued impact of Cyclone Sidr may exacerbate the high seasonal child wasting rates, which in the Bangladesh context typically reach their peak in the middle of the year. It is feared, based on historical precedents, that the factors affecting food security indicated above may result in malnutrition rates that are even higher than usual. 1 ODOC = other direct operational costs; DSC = direct support costs; ISC = indirect support costs. 2 The number of beneficiaries was slightly increased in the verification process following the initial rapid assessment and the approval of the EMOP. 1
5. The EFSA strongly recommended three months highly-targeted relief distribution to 608,000 vulnerable people in five out of the nine worst-affected districts. These coastal districts were among the worst-affected and are mainly single cropping zones expecting their first harvest in November 2008. 6. In addition to the continuation of relief assistance, the assessment also recommends recovery activities that focus on livelihood recovery. As a part of the common United Nations Early Recovery Action Plan, WFP will support recovery activities to rebuild livelihoods in the communities affected by Cyclone Sidr. III Purpose of budget revision/implementation modalities 7. The purpose of this budget revision is to extend assistance to beneficiaries in line with the analysis of the assessment. 8. Relief distributions will be highly-targeted to 608,000 most vulnerable people for three months in five of the nine worst-affected districts which are expecting their first harvest in November 2008. The objective of the relief activity is to meet the immediate food needs of the cyclone victims to ensure adequate consumption. Relief activities will be implemented in partnership with prequalified non-governmental organization (NGO) partners. Preference will be given to vulnerable female-headed households in the distribution of GFD ration cards. 9. In order to promote early recovery, WFP will also undertake food-for-work and cash-for-work activities where appropriate to rehabilitate community assets and shelter units. This budget revision will increase the provision for recovery activities, which started late due to resourcing constraints, to assist an estimated 655,000 people. The objective of this activity is to rehabilitate and maintain community-based assets and infrastructure. Recovery activities will also help to improve access to market places, support agricultural activities, create temporary employment and facilitate the restoration of livelihoods in affected areas. The primary implementation modality will be food for work (FFW) in areas where there is limited food in the local market to assist an estimated 575,000 people. Subject to the availability of cash resources, cash-for-work (CFW) activities will be undertaken in locations within the Cylcone Sidr-affected districts where rural markets are properly functioning with a provision to assist a total of about 80,000 people for three months. The revised budget includes an additional US$2,500,000 for CFW activities to assist rebuilding of livelihoods. The CFW activities will be implemented in line with WFP interim guidance on cash transfers as laid out in the WFP directive on The Use of Cash Transfers to Beneficiaries in WFP Operations. Implementing partners will include NGOs with experience in implementing and managing FFW and CFW activities. WFP will provide tools and equipment (spades, baskets, hammers, mallets, etc.) to the participants and train NGOs and local government officials on FFW/CFW management and implementation. NGO partners will organise technical orientation and practical demonstrations for the beneficiaries and project implementation committees and ensure 50 percent of female representation in the project implementation committees and at least 50 percent female participation in the work activities. 10. The budget revision also includes a provision to assist up to 350,000 children through 2008 under the emergency school feeding (ESF) programme. The ESF programme began in January 2008, targeting 117,000 students. With expected additional funding, WFP plans to expand and extend this activity. The objective of ESF is to maintain school attendance of children of school age. WFP will provide schools with a monthly allocation of biscuits for distribution to students attending classes. Each student will receive a 75g biscuit ration during the early hours of the school day. The school management committee (SMC) will implement the ESF programme in partnership with NGOs. WFP will continue to encourage active participation of female members of SMC. The revised budget includes 2,000 mt of wheat flour which will be exchanged for locally-produced biscuits for the ESF programme. 2
11. WFP is piloting a micro-nutrient supplementation programme in Cyclone Sidr-affected areas. Implementation of this programme will start mid-year and continue through December 2008. The objectives of the micro-nutrient supplementation programme (MNP) are to reduce the prevalence and severity of micronutrient deficiencies among the target population and reduce the risk of malnutrition. WFP will provide MNP for home fortification to 110,000 children aged 6-59 months and 55,000 pregnant and lactating women in six districts severely affected by Cyclone Sidr. MNP will be implemented in partnership with NGOs, who will be responsible for social marketing and distribution of the MNP. WFP will provide training and information education and communication (IEC) materials to the NGOs. The composition of the 15-element MNP is in conformity with the WHO/WFP/UNICEF statement on provision of micronutrients in emergencies. 12. Given the need to evaluate the relevance, effectiveness and lessons learned with the pilot CFW and MNP initiative, a provision of US$100,000 has been made in the direct support cost (DSC) for evaluation. Lessons from the implementation of these activities will inform possible integration of CFW and MNP into the WFP country programme. Based on availability of resources, WFP will assist the Government to expand the Vulnerable Group Development (VGD) component of the country programme in Cyclone Sidr-affected areas. WFP will continue dialogue with the Government to include schools in the cyclone-affected districts in the ongoing food-for-education programme under the country programme within the broader framework of the Primary Education Development Project. IV Food Rations and Requirements 13. The WFP food ration for the activities in the revised budget plan will be as follows: Rations by activity (grams per person per day) Cereals Veg. Oil Pulses WSB 1 HEB 2 Salt Relief 200 25 40 40 5 7 Emergency School Feeding 75 Recovery (FFW) 400 WSB: 1 Wheat Soya Blend; 2 HEB: High Energy Biscuits 14. It has been assessed that GFD beneficiaries are not completely reliant on WFP relief food. The food basket therefore provides approximately 1,250 kcal per person per day and includes a micronutrient-fortified commodity. For recovery, the monthly family food-for-work ration of 60 kg of rice per month per participant will provide approximately 1,440 kcal per person per day. School feeding provides each student with 75 grams of fortified biscuit, corresponding to 338 kcal per child per day. 15. The proposed budget revision increases the food under the EMOP by 26,812 mt, as shown in the table below, and additional 4,320 mt from the food equivalent of cash transfers, which captures all the activities of the EMOP. Cereals Veg. Oil Pulses WSB 2 HEB 3 Salt WHF 4 RTE 5 Total Relief (November 07-April 08) 2,327,852 38,818 2,049 8,360 1,552 3,746 931 2,000 10 57,466 Relief (May 08) 1,500,000 9,000 1,100 1,800 1,800 225 300 0 14,225 Relief (June 08-August 08) 608,000 10,944 1,338 2,189 2,189 274 365 0 17,298 ESF (January 08-March 08) 117,000 567 567 ESF (April 08-December 08) 350,000 567 567 Recovery (May 08-August 08) 575,000 1 9,500 9,500 Total revised requirements 68,262 4,487 12,349 5,541 5,379 1,596 2,000 10 99,624 Requirements in current budget 44,487 4,950 12,550 7,920 1,497 1,398 0 10 72,812 Change 23,775 (463) (201) (2,379) 3,882 198 2,000 26,812 1 Including for cash-for-work; 2 Wheat Soya Blend; 3 High-Energy Biscuits; 4 Wheat Flour; 5 Ready-To-Eat food For some commodities (vegetable oil, pulses, Wheat Soya Blend) adjustments to the ration have resulted in commodity requirements being less than planned at the start of the EMOP; thus for some commodities the requirements are negative, i,e,. some of the unresourced amounts of the present budget are no longer required. 3
Approved by: Josette Sheeran Executive Director, WFP Jacques Diouf Director-General, FAO Date:.. Date: 4
ANNEX I A WFP COSTS A. Direct operational costs Commodity 3 BUDGET INCREASE COST BREAKDOWN Quantity (mt) Average Cost per Ton (US$) Value (US$) Cereals (wheat, wheat flour, rice) 25,775 496 12,792,011 Vegetable oil (463) (19,437) Pulses (201) 114,754 HEB 3,882 1,321 5,129,526 WSB (2,379) (1,420,263) RTE Nil Nil Salt 198 307 60,913 Cash Transfers (in food equivalent) 4,320 476 2,057,143 Total commodities 31,132 18,714,647 External transport 4,322,094 Landside transport 471,488 Subtotal for ITSH (internal transport, storage and handling) Total LTSH (land transport, storage and handling) 471,488 Other direct operational costs (ODOC) 591,291 Total direct operational costs 24,099,520 B. Direct support costs (see Annex IB for details) Total direct support costs 613,952 C. Indirect support costs (7 percent of total direct costs) 1,729,943 TOTAL WFP COSTS 26,443,415 3 This is a notional food basket used for budgeting and approval purposes. The precise mix and actual quantities of commodities to be supplied to the project, as in all WFP-assisted projects, may vary over time depending on the availability of commodities to WFP and domestically within the recipient country. For some commodities (e.g. vegetable oil, pulses and WSB) adjustment to the ration has resulted in requirements being less than planned at the start of the EMOP; thus for some commodities the requirements are negative, i.e., the some of unresourced amounts of the present budget will not need to be resourced in the revised budget. For some commodities, costs have increased since the initial EMOP was approved and there has been a revaluation in cost of the portion in the tonnage of the present budget that has not yet been resourced (i.e., the outstanding balance of commitment or OBC). Thus the changes in tonnage in the revised budget plan are not always in proportion to the change in value: for example, while the overall tonnage of pulses has reduced, the overall value of pulses has increased. 5
ANNEX IB DIRECT SUPPORT REQUIREMENTS (US$) 4 Staff International professional staff 376,410 National general service staff 508,000 Temporary assistance (5,399) Overtime (2,000) Staff duty travel (124,938) Staff training and development 50,000 Subtotal 802,073 Office expenses and other recurrent costs Rental of facility (70,000) Utilities (general) (34,826) Office supplies 20,106 Communication and IT services (39,753) Insurance 5,000 Equipment repair and maintenance (14,974) Vehicle maintenance and running cost 30,671 Other office expenses 5,573 United Nations Organizations Services (8,000) Subtotal (106,203) Equipment and other fixed costs Furniture tools and equipment (16,918) Vehicles Nil TC/IT equipment (65,000) Subtotal (81,918) TOTAL DIRECT SUPPORT COSTS 613,952 4 The initial direct support cost (DSC) budget plan was fully reviewed in preparing this budget revision. This resulted in some downward adjustments in certain line items of the DSC budget, which are shown as negative amounts in the table above. 6