SCCD: F.S.

AFRICAN DEVELOPMENT BANK ADB/BD/WP/2014/155/Approved

26 September 2014

Prepared by: EARC/GECL

English version only

BOARD APPROVAL

Lapse-of-time Procedure

26 September 2014

FOR INFORMATION

MEMORANDUM

TO : THE BOARD OF DIRECTORS

FROM : Cecilia AKINTOMIDE

Secretary General

SUBJECT : SOUTH SUDAN - PROPOSAL FOR A GRANT OF US$ 1 MILLION FOR AN

EMERGENCY HUMANITARIAN ASSISTANCE TO THE CONFLICT- AFFECTED

VULNERABLE POPULATION*

The Grant proposal together with the draft Resolution relating to the above-mentioned

subject were submitted for your consideration on a Lapse-of-time Basis on September

23, 2014.

Since no objection was received by 6:00 pm, on September 26, 2014, the said proposal is

considered as approved and the Resolution adopted.

Attach:

Cc: The President

*Questions on this document should be referred to:

Mr. G. NEGATU Director EARC Extension 8232

Mr. K. GADIO General Counsel GECL Extension 2032

Mr. F. BAUDIN Division Manager GECL.1 Extension 3016

Mr. A. MWENDA Lead Economist SSFO Extension 8270

Mr. G. B. NKAMLEU Chief Country Economist SSFO Extension 8244

Table of Contents

ACRONYMS i

PROJECT SIMPLIFIED LOGICAL FRAMEWORK ii

1. BACKGROUNG AND JUSTIFICATION FOR EMERGENCY ASSISTANCE 1

1.1 BACKGROUND – SOUTH SUDAN CURRENT CONFLICT AND RECENT DEVELOPMENTS 1

1.2 JUSTIFICATION FOR EMERGENCY ASSISTANCE 2

2. OVERVIEW OF THE APPEAL FOR EMERGENCY SUPPORT 2

3. THE PROPOSED EMERGENCY ASSISTANCE OPERATION 3

3.1 OBJECTIVES AND DESCRIPTION OF THE EMERGENCY ASSISTANCE 3

3.2 COST AND SOURCE OF FINANCING 3

3.3 IMPLEMENTATION ARRANGEMENTS AND SCHEDULE 3

3.4 PROCUREMENT AND DISBURSEMENT ARRANGEMENTS 4

3.5 REPORTING, SUPERVISION AND AUDITING 4

4. CONCLUSIONS, RECOMMENDATIONS AND CONDITIONS FOR DISBURSEMENT 5

4.1 CONDITIONS FOR DISBURSEMENT 5

4.2 CONCLUSIONS AND RECOMMENDATIONS 5

ANNEX I: ACTIVITIES AND BUDGET OVER THE SIX MONT IMPLEMENTATION PERIOD

ANNEX II: OFFICIAL REQUEST BY THE GOUVERNMENT OF SOUTH SUDAN

ANNEX II: OFFICIAL WFP APPEALING LETTER

i

LIST OF ACRONYMS AND ABBREVIATIONS

AfDB African Development Bank

CPA Comprehensive Peace Agreement

EARC East Africa Resource Center

GOSS Government of South Sudan

IA Implementation Agency

IGAD Inter-Governmental Authority for Development

LOA Letter of Agreement

MoU Memorandum of Understanding

SPR Standard Project Reports

SRF Special Relief Fund

UN United Nations

WFP World Food Programme

ii

PROJECT LOGICAL FRAMEWORK (PROJECT MATRIX)

Country and Project Name: SOUTH SUDAN – Proposal for a grant of US$ 1000000 as emergency assistance for conflict-affected population

Purpose of the project: Contribute to the ongoing efforts of the Government and Development partners to provide emergency food relief to vulnerable conflict-

affected population.

RESULTS CHAIN PERFORMANCE INDICATORS MEANS OF

VERIFICATION

RISK/MITIGATION MEASURES

Indicator Baseline -

2014

Target

IMP

AC

T

Human suffering due to

shortage of food and water

reduced in the affected

communities

Nutrition status of

the affected

communities.

Poor 21,000

households have

acceptable food

consumption

score

World Food Program

(WFP) reports

SSFO/EARC

Monitoring

reports.

Risk: Resumption of armed fighting in

the concerned area.

Mitigation: Bank is supporting effort

by the AU to reach complete cease fire

agreement.

OU

TC

OM

ES

Minimum food and water

requirements for the conflict-

affected populations are met in

the conflict-affected regions

and refugee camps.

Number of

conflict- affected

household

assisted.

0 Around 21,000

households

reached with food

and water

World Food Program

(WFP) reports

SSFO/EARC

Monitoring reports.

Risk: Large numbers of refugees are not

identified, or a continue increase in the

number of refugee.

Mitigation: Bank emergency support is

part of a wider programme involving

other international partners who are

specialized in identifying and tracing

refugees.

OU

TP

UT

S

Component 1: Purchased

foodstuff

Component 2: Water trucking

Quantities of

foodstuff

distributed.

Trucks of water to

households

0

0

39 kg of maize ;

1.5 kg of

vegetable oil and

3.9kg of pulses

provided to 17000

households.

0.25 trucks of

water supplied to

4,000 families

World Food Program

(WFP) reports

SSFO Monitoring

report.

Risk: Foodstuff and water not readily

available locally.

Mitigation: WFP has a long experience

in providing such assistance (purchase,

shipment, customs clearance,

transportation, and monitoring of

distribution).

KE

Y

AC

TIV

ITIE

S

Component 1: Purchase of maize, vegetable oil and pulses for 17,000 households

Component 2: Trucks of water to 4000 households

Component 3: WFP Administrative fee (7%)

Inputs: Component 1: US$ 803,000

Component 2: US$ 127,000

Component 3: US$ 70,000

1

1. BACKGROUND AND JUSTIFICATION FOR EMERGENCY ASSISTANCE

1.1 Background – South Sudan Current Conflict and Recent Developments

1.1.1 In 2011, South Sudan emerged as the newest independent African country after a long

period of armed conflict. For decades, the people of the South and North Sudan lived in a state of

war as the South sought to separate from a union it considered oppressive and that disadvantaged its

people. The Comprehensive Peace Agreement (CPA) signed in January 2005, and subsequently, the

January 2011 referendum effectively ended the prolonged, violent confrontation between the

Republic of Sudan and the territories that would ultimately gain independence as South Sudan in

July 2011.

1.1.2 However, since independence, the political landscape in South Sudan has continued to

be dominated by both internal and external threats to sustainable peace, security and

stability. Internal threats are rife, and are often fuelled by ethnic rivalries, disputes over land and

cattle, the widespread availability of arms, the presence of militias, high levels of youth

unemployment and the huge gap between the expectations of the population in the post-

independence era and the challenging social reality on the ground. The people of South Sudan were

largely united in the war against Khartoum, although to a large degree, they were and are still

ethnically fragmented, with each group seeking to maximize its own objectives—a process that has

significantly weakened the ability of the government to work toward national integration. External

threats are mainly related to the continuing struggle and conflict with the Republic of Sudan over

outstanding post CPA issues. These threats have become top priorities for the country, impeding the

ability of the government to concentrate on economic growth and human development.

1.1.3 The internal threat materialized on 15 December 2013 when armed conflict broke out

in Juba and spread across several regions in South Sudan. The conflict that pitted soldiers loyal

to the President Salva Kiir to the factions loyal to the former Vice President Riek Machar was in

essence the failure of governance within SPLM which failed to develop effective institutions to

manage or resolve disputes. Such institutions could have been used to handle the immediate trigger

of the conflict; the aspirations of the then Vice President to accede to the highest office in the

planned 2015 elections.

1.1.4 The current conflict is aggravating an already dire socio-economic situation and has

brought about a lot of human suffering that is likely to continue for a few years to come.

Despite the peace prospects, the reality on the ground is that the lives of most of the rural population

have been severely disrupted. People have been displaced; personal property and public amenities

such as schools and hospitals destroyed. The main cropping season that began in March has been

missed by most farmers and the result is that this year, the number of persons requiring food relief

will treble from last year’s figure of just over one million to over 3.5 million.

1.1.5 In view of the above, the government of South Sudan is calling for emergency

assistance to the vulnerable population. Despite significant budgetary pressure occasioned by the

disruption to oil production (the main source of government revenue) plus the costs of the war, the

government has reassigned resources towards emergency humanitarian support. But due to the

considerable magnitude of the resources required, the government is not able to fully cope with the

situation. Hence the Government’s appeal, through a request dated 13 May 2014 (annex 2) to the

Bank for emergency humanitarian support. The World Food Program had also written to the Bank

earlier, requesting emergency humanitarian support.

2

1.2 Justification for Emergency Assistance

1.2.1 The armed conflict has worsened the already fragile food security situation in the

country. The conflict started in Juba on 15 December 2013 and quickly spread to other states.

Within a few weeks, thousands of people were killed and wounded while hundreds of thousands

were displaced from their homes. Aid agencies estimate that 1,038,000 are currently displaced

within the country, sheltering across 174 different displacement sites and around 383,006 have fled

to neighboring countries. The displacement in turn caused loss of food stocks, prevented farmers

from harvesting and disrupted trading activities. In addition, food storage and market infrastructure

were destroyed and farmers have missed the planning season that started in early March 2014.

1.2.2 Even more worrying is the impact of the crisis also on the health of the human

population, livestock, fishing, and social cohesion among farmers and traders. For instance,

livestock vaccination programs have been seriously affected and people and their animals are likely

to suffer from an increase in disease and related deaths in the most strife affected states of Jonglei,

Unity and Upper Nile. It is estimated that over 3.5 million (compared to a pre-crisis estimate of just

over 1 million) people are now at high risk of food insecurity in the country, and the figure is

expected to reach 4 million before the end of the year. According to Borge Brende, the Norwegian

Foreign Minister, about 4.9 million people out of the total South Sudan population of 11.5 million

are in need of humanitarian aid, and if nothing is done, nearly a quarter of a million children under

the age of five will be suffering from acute malnutrition by the end of the year.

1.2.3 This proposal for emergency humanitarian support to the victims of potential famine

due to the armed conflict is justified as it fulfills the three criteria required to qualify for Bank

Group assistance in that: (i) the emergency situation is of a scale which is clearly beyond the

capacity of the Government of South Sudan to handle alone; (ii) the proposed activities can be

carried out expeditiously and effectively within the required time frame; and (iii) the emergency

relief assistance aims at restoring a degree of normalcy in both the social and economic life of the

affected populations as quickly as possible. The proposal is, thus, in compliance with the provisions

of the Revised Policy Guidelines and Procedures for Emergency Relief Assistance, and General

Regulations of the Special Relief Fund (ADB/BD/WP/2008/211/Rev.1).

2. OVERVIEW OF THE APPEAL FOR EMERGENCY SUPPORT

2.1 The humanitarian assistance needs for South Sudan are immense, and the

international community has taken stock of the situation. Humanitarian aid agencies have been

appealing for $1.8 billion to help meet urgent humanitarian needs in South Sudan. The Norwegian

government in collaboration with the UN Office for the Coordination of Humanitarian Affairs

organized on the 19th

of May 2014, a pledging conference aiming at averting a looming famine

threatening millions of South Sudanese as a direct result of the conflict.

2.2 During the conference, pledges of more than $600 million in humanitarian aid have

been made, but the gap between the available resources and the needs is still large. Just to

provide an indication of the magnitude of the needs, the World Food Program which is coordinating

donor support, in its 6 May 2014 Situation Report, estimated that there is currently a funding

shortfall of about USS 286 million

3

2.3 The Government of South Sudan, through the Minister of Finance, Commerce,

Investment and Economic Planning, therefore submitted the foregoing funding request to the

Bank. The Government request is in addition to an appeal sent to the African Development Bank by

the United Nations World Food Programme in February 2014 (annex 3), for humanitarian

assistance to the vulnerable people affected by the conflict. The Government aims to use this

funding to provide support to the vulnerable population.

3. THE PROPOSED EMERGENCY ASSISTANCE OPERATION

3.1 Objectives and Description of the Emergency Assistance

3.1.1 The objective of the proposed Bank Group Emergency Relief Assistance to the Government

of South Sudan is to contribute to the on-going efforts of the Government and other humanitarian

partners to meet the urgent and immediate needs of the vulnerable population and the victims of the

current conflict. This objective will be achieved through the provision of emergency food relief.

3.1.2 The main aim is to provide food and nutrition support, food-for-asset activities and school

meals where feasible. Selected food items will be provided to targeted vulnerable groups of

beneficiaries, complementing contributions from other donors.

3.2 Cost and Source of Finance

3.2.1 The total cost of this Bank’s emergency assistance is estimated at US$ 1,000,000 (One

Million US Dollars). The proposed Emergency Relief Assistance Operation will be funded from the

Bank’s Special Relief Fund (SRF). The grant funds will be used to purchase food items and water,

as well as associated costs of transportation and distribution of food rations to the beneficiaries and

for administrative fees. Preferably, if possible, some of these food items will be purchased locally

by WFP. The cost breakdown is attached in annex 1. The funds provided by the Bank are restricted

and earmarked for the purposes of urgent humanitarian assistance to the affected populations.

3.3 Implementation Arrangements and Schedule

3.3.1 According to the Bank’s Revised Policy Guidelines and Procedures for Emergency Relief

Assistance and General Regulations of the Special Relief Fund (ADB/BD/WP/2008/211/Rev.1 and

ADF/BD/WP/2008/173/Rev./1) (the “Guidelines”), Implementation of Emergency Humanitarian

Relief Assistance will be entrusted to a suitable Implementing Agency to be selected from within

UN specialized agencies which are operating at field level, competent Government institutions, or

credible NGOs with a good track record of implementing emergency operations. The Government

has selected the World Food Program (WFP) as the Implementing Agency (IA) for this operation.

3.3.2 WFP will thus be entrusted with the implementation of the emergency relief assistance

operation. It already has a well-established network in the country for food relief assistance. WFP

has a very active and long standing operational presence in the South Sudan. Thus, it has the

necessary logistical infrastructure and capability to implement the planned activities (i.e. purchase

of food items, customs clearance, overland and air transportation, distribution and monitoring of

food availability) in a timely and effective manner.

4

3.3.3 The Guidelines and Procedures stipulate that emergency humanitarian relief assistance is

typically a short-term operation, lasting for few months. Consequently, a period of six months from

the date of approval of the memorandum has been proposed for the execution of this emergency

relief assistance. Funds not disbursed after this period will be cancelled.

3.3.4 A tripartite letter of Agreement will be signed between the Bank, the Government of the

South Sudan and WFP outlining the terms and conditions for the grant, responsibilities, and

obligations of each party. The administrative fee paid to WFP shall not exceed 7% of the total

amount of the grant.

3.4 Procurement and Disbursement Arrangements

Procurement

3.4.1 In compliance with the relevant provisions of the Bank’s Rules and Procedures for

Procurement of Goods and Works, notably paragraph 3.9, WFP has been selected to implement the

project and will be responsible for the acquisition and distribution of the goods following its own

rules. The process should guarantee a competitive price of the products. The Bank, through a

provision in the Protocol of Agreement, may exercise a post review of this acquisition process.

Finally, there will be a control mechanism in the MoU between the Government and WFP, ensuring

that the goods effectively reach the beneficiaries in the quantity and quality required.

3.4.2 In addition, while Article 3.8 of the Revised Policy Guidelines and Procedures for

Emergency Relief Assistance requires the use of Bank’s Rules and Procedures, it is requested that

the Board of Directors exceptionally grant a waiver exempting WFP from the use of the Bank’s

Procurement Rules for all procurement under this operation. Thus, in the context of the

implementation of this operation, WFP shall procure and distribute food following its own

procurement rules and procedures.

Disbursement

3.4.3 Given the emergency nature of the proposed operation, it is recommended that the funds be

disbursed in one single tranche, through direct payment into a WFP bank account, upon submission

of evidence to the Bank of the opening of the bank account to receive the proceeds of the grant.

Disbursements will also be subjected to the signature of a tri-partite Letter of Agreement (LoA)

between the Bank, WFP and GoSS.

3.5 Reporting, Supervision and Auditing

3.5.1 The submission of an audit report on the Bank’s contribution is a requirement of the Bank’s

funding. In line with the provisions of the Revised Emergency Guidelines, WFP shall not be

required to prepare separate financial and audit reports for the emergency operation. It will however

be required to submit a written confirmation within six months after completion of the operation

from a senior WFP official certifying that WFP has complied with the terms of the Letter of

Agreement. In addition the Bank will also have access to WFP’s regular Standard Project Reports

(SPRs) through its website. Moreover while there shall not be specific Bank field supervision

missions to monitor the implementation of the proposed emergency operation, the Bank’s East

Africa Resource Centre (EARC) and the SSFO will monitor the execution of this operation and

submission of the required reports by WFP. For purposes of visibility, the Bank’s name and

contribution shall appear in the WFP 2014 consolidated financial report disclosing the list of

contributors for the year.

5

4. CONCLUSIONS, RECOMMENDATIONS AND CONDITIONS FOR

DISBURSEMENT

4.1 Conditions for Disbursement

The grant resources will be disbursed in one tranche, subject to the following conditions:

i) Signature of the tripartite LOA by the Bank, the GOSS, and WFP; and

ii) Communication by WFP to the Bank of the details of WFP’s bank account to which

iii) the grant resources will be transferred.

4.2 Conclusions and Recommendations

4.2.1 The Republic of South Sudan is facing severe food insecurity that has prompted the

Government and Partners to issue an appeal for emergency relief assistance to the international

community. The United Nations World Food Programme (WFP) has launched an emergency

operation in South Sudan to meet the food assistance needs of conflict-affected people.

4.2.2 The proposed Bank emergency humanitarian relief assistance will contribute to this effort.

This will target vulnerable individuals, most of whom are women and children, with the primary

objective of saving lives and preserving livelihoods. The emergency relief assistance operation will

be funded through a grant from the Bank’s Special Relief Fund (SRF).

4.2.3 In accordance with the Revised Policy Guidelines and Procedures for Emergency Relief

Assistance and the General Regulation of the Special Relief Fund (SRF), it is recommended that the

Board of Directors: i) approves a US$ 1 million grant from the SRF for Emergency Assistance to

the Government of South Sudan (GOSS) for the purpose of procuring, transporting and distributing

food items to the affected population; and (ii) waives, exceptionally, the application of the Bank’s

Rules and Procedures for Procurement, and to authorize the application of the procurement rules of

the United Nations World Food Programme.

I

Annex 1 – Activities and Budget over a the six month implementation period

COMPONEN

T

ACTIVITY QUANTITY (per

household)*

UNIT COST

(US$ per kg)

AMOUNT

USD**

1: Provision of

food for 2

months

Purchase of

maize,

vegetable oil

and pulses for

17,000

households

Purchase of

including

transportation and

distribution:

39 kg of maize

1.5 kg of

vegetable oil

3.9 kg of

pulses

0.94

2.94

1.58

803000

2: Provision of

water.

Trucks of water

to 4,000

households

0.25 trucks for

two months

127.64 per

truck.

127000

3: WFP

Administrative

fee (5%)

70,000

Total 1,000,000

*For emergency assistance, the WFP usually adopt a standard ration based on average

household size in a particular context. The average household size in South Sudan is

estimated at 6. ; ** The figures have been rounded.

II

Annex 2 : Official Request by the Government

III

IV

Annex 3 : Official WFP Appealing Letter

V

VI