###  Ethiopia-Specific Country Information for Jan. 22, 2008 MYAP Submission

### 

### Objective of the Ethiopia-Specific MYAP Programming Framework

The purpose of this programming framework is to guide potential partners
in the effective design of a Multi-Year Assistance Program (MYAP) in
support of the Ethiopian Government led Productive Safety Net Program
(PSNP) for the period July 1, 2008- June 30, 2011. Note that a decision
by the Ethiopian government to discontinue the PSNP before 2011 could
result in a need to amend MYAPs to reflect that situation.

This framework does not replace the P.L. 480 Programming Policy and
Proposal Guidelines but provides complementary information that should
refine the applicant's ability to focus on the aspects of those
guidelines that are USAID/Ethiopia Mission priorities at this time. The
overarching Mission priority is to contribute effectively to the
Government of Ethiopia's multi-donor Productive Safety Net Program
(PSNP).

This framework considers current factors in Ethiopia contributing to
widespread chronic food insecurity and vulnerabilities in the country
while maximizing programmatic and resource integration. The Project
Implementation Manual for the PSNP, known as the PIM, was developed by
the Government of Ethiopia in consultation with PSNP donors and
stakeholders. The PIM provides a basic analysis of the chronic food
insecurity situation in Ethiopia and lays out the PSNP program that was
designed to address the situation. This framework incorporates the PIM
as a critical document for effective design of PSNP MYAPs. An effective
PSNP MYAP submission will be compatible with and guided by the PIM.

This framework was developed by the Mission, based on a review of
currently available data on food insecurity in Ethiopia and in
consultation with various stakeholders, which include current and
prospective NGO partners, USAID/Washington and USAID/Addis Ababa offices
and discussions with the federal Food Security Coordination Bureau
(FSCB) in Ethiopia and regional Food Security offices.

These PSNP MYAP proposals should follow the MYAP guidelines and consider
the USAID/Ethiopia Mission priorities as outlined below. The proposal
review categories listed below correspond to the MYAP guidance scoring
sheet which is part of the *PL480 Title II Program Policies and Proposal
Guidelines* issued on October 16, 2007, and which can be found on the
FFP web page.

1.  **Situational Analysis - Ethiopia, Food Security and Development
    Strategy**

Since the famine of the mid-1980s, the images of severe drought and
large-scale starvation have become inevitably linked with Ethiopia. The
recent Poverty Assessment (WB 2005) showed that 58% of the rural
population lives below the poverty line. There are approximately 7-8
million chronically food insecure people who are in need of support
every year. When rainfall is poorly spaced or inadequate, this number
increases to include the transitionally food insecure. In the 2002/2003
drought year, the number reached 11 million.

High population density combined with limited opportunities for labor
mobility and migration have left many households with very small farms
that are further fragmented as farm plots are subdivided amongst family
members. At the same time, the livelihoods of rural households lack
diversification. Data from household surveys indicate that non-farm
income accounts for only 8 percent of rural household incomes. There is
a lack of rural market towns driven by the private sector and
insufficient growth in productivity of the agricultural sector to create
marketing activities and off farm employment.

This situational analysis behind the Productive Safety Net Program
(PSNP) should form the basis for all submissions and does not need
extensive elaboration. However, the Mission expects that specific
analysis of the local operational unit, *the woreda*, will be detailed
and that Livelihood Profiles should be used in the analysis where
available. Examples of questions to address would be why a particular
woreda is food insecure, why would a food or food-cash mix be an
appropriate transfer in the woreda, what is the capacity of the woreda's
Food Security Task Force, and what is the woreda's Public Works
capacity? Note: Livelihood profiles are available for SNNPR and Tigray
regions and the baseline data collection is in progress for Amhara. For
further information refer to:
[http://www.dppc.gov.et/livelihoods/livelihood_Integration_Unit.htm](http://www.dppc.gov.et/livelihoods/livelihood_Integration_Unit.htm    )

2.  **Program Strategy and Interventions**

    0.  **The New Foreign Assistance Framework**

Under the new Foreign Assistance Framework, all U.S. Government foreign
assistance spending has to be aligned with the five key objectives of
investing in people, economic growth, humanitarian assistance, governing
justly and democratically, and peace and security. More information on
the framework can be found at <http://www.state.gov/f/c23053.htm>. This
is true for all the Ethiopia Mission's DA-funded programs as well as the
current P.L. 480, Title II development activities. The Mission views
these PSNP MYAPs as contributing across the range of these objectives. A
strong proposal will highlight how the specific PSNP MYAP proposal
design makes contributions to the achievement of these Foreign
Assistance Objectives as appropriate.

1.  **GOE Food Security Strategy**

The Government of Ethiopia (GOE) is implementing a national Food
Security Program (FSP) that combines the Productive Safety Nets Program
(PSNP), Other Food Security Programs (OFSP) and resettlement. The PSNP
is a major instrument for achieving the Government's clearly stated goal
of reducing vulnerability by reducing the household food gap and
eliminating distress asset sales. The OFSP interventions are designed to
build household assets and enable households to graduate out of chronic
food insecurity/poverty.

The design of PSNP MYAP proposals and their intermediate results
framework should be developed around the main objective of the PSNP
(PIM): **to provide transfers to the food insecure population in
chronically food insecure woredas in a way that prevents asset depletion
at the household level and creates assets at the community level.** The
Productive Safety Net Program consists of two components: (i) a
labor-intensive Public Works component; and (ii) a Direct Support
component to ensure support to those households who have no labor at
all, no alternative means of support, and that are chronically food
insecure.

2.  **Mission priorities and recommendations for scale and duration of
    PSNP MYAPs**

It is unclear at this time whether the GOE will make a commitment to
continue the PSNP beyond December 2009. USAID and other donors are
optimistic that the GOE will acknowledge the value of the PSNP and
extend the program beyond its original 5-year period. However, it may
become necessary to amend MYAP agreements if the GOE ends its
implementation of the PSNP.

USAID plans to support approximately 1.2 million beneficiaries within
the PSNP. Applicants should focus program interventions in any of the
four regions (Amhara, Oromiya, Tigray and SNNPR)[^1] where the PSNP is
currently operational. Proposals should only include woredas that are
designated PSNP food transfer woredas or food-cash mixed transfer
woredas. Proposals should work for economies of scale and cover a
reasonable number of beneficiaries and woredas in a cost-effective
manner. A proposal must also plan to cover the entire PSNP food-transfer
caseload in the targeted woreda(s).

NGOs are encouraged to find ways of optimizing resources and increasing
cost-effectiveness by working together and harmonizing when possible.
For example, NGOs that are submitting proposals in the same Region might
be able to combine trainings and thus reduce costs. Sub-grants with
local NGOs or other international NGOs are another example of
collaboration to reduce the management burden of the Title II program in
Ethiopia.

The situation analysis should support the choice of woredas that need
significant support in capacity building, which are designated as low
performing by the FSCB. Following the PIM, the PSNP will address
immediate human needs while simultaneously:

> \(i\) supporting the rural transformation process,
>
> \(ii\) preventing long-term consequences of short-term consumption
> shortages,
>
> \(iii\) encouraging households to engage in production and investment,
> and
>
> \(iv\) promoting market development by increasing household purchasing
> power.

Recommended program focus areas:

-   Increased emphasis on government capacity building to ensure a
    timely and predictable transfer. Strong proposals will consider how
    capacity building can extend to neighboring non-food woredas or to
    the zonal or regional level.

-   Risk management strategies within Labor Based Public Works (LBPW)
    implementation

-   Contingency planning for responding to emergency situations within
    the program context and consistent with the GOE approach to disaster
    risk management.

The P.L 480 Title II resources will be the main resource that is
available for the implementation of this program. The Title II food will
be used to have an immediate impact--protecting lives, safeguarding
assets and maintaining consumption levels--while also contributing to
longer term impacts--enhancing community and household resilience to
shocks, contributing at a community level to opportunities for more
durable and diverse livelihood bases.

If supported by situational analysis and within the budget and
geographic limitations of the PSNP, the applicants are encouraged to
link the proposed PSNP activities with ongoing USAID Ethiopia bilateral
programs in Agriculture, Maternal and Child Health, Family Planning,
Water and Sanitation, and Education. A strategy for the selected woredas
could also include nutrition education, behavioral change, hygiene,
sanitation or other complimentary interventions. USAID encourages
applicants to use matching funds where available for the implementation
of these interventions as well as for market-led livelihood activities.
Cost-effective and broad-based capacity building interventions that
enhance livelihood opportunities and impact a majority of beneficiaries
linked with public works can also be considered. For example, these
could include trainings for local health extension workers in the
Essential Nutrition Actions; nutrition messages provided while
beneficiaries are gathered on pay day or market day; woreda-level
technical assistance for saving groups, or agricultural extension work
on new/high yield varieties that are available at national-level
agricultural research centers. Any use of Title II resources for these
complementary activities must be clearly and directly linked to the
objectives of the PSNP. USAID encourages innovative approaches to
integrate within the PSNP the technical sectors listed in C.1 of the
MYAP application format within the PSNP, but at the same time
appreciates efforts to provide these PSNP enhancements using resource
linkages outside of Title II and/or with cost-effective strategies.
Planned community approaches should complement ongoing and future USAID
Ethiopia development programs.

0.  **Title II Commodity Mix**

Globalization and increased demand for agricultural products in the
world market have significantly changed the availability and cost of
commodities purchased for use in Title II food aid since FY 2007. The
August 2007 analysis shows price increases in most of the commodities
FFP uses, resulting in an overall increase (from one year ago) of more
than 30%. To reduce the impact of price fluctuations/scarcity and to
ensure timely procurement and shipment of food aid, USAID/Ethiopia
encourages applicants to consider alternative/substitutable commodities
that are acceptable within the local food basket. Such alternatives will
allow FFP additional flexibility to approve commodity substitutions in
such situations. Examples are sorghum instead of wheat and flexibility
on choices of pulses.

1.  **PSNP Timeliness and Predictability**

Delays in PSNP implementation can restrict the ability of the program to
achieve its objectives. Delays in public works implementation can result
in competition for labor between public works and normal agricultural
activities. Transfer delays can impact the asset protection objective of
the program as well as limiting the potential of the program to
encourage poor farmers to take risks. The October 2007 safety net Joint
Review and Implementation Support Mission (JRIS) noted that despite
significant efforts to improve transfer rates, the transfer performance
in 2007 varied significantly across regions. In order to ensure timely
program implementation and predictability of transfers, proposals must
demonstrate awareness and analysis of reasons for delays and propose
solutions to address these challenges.

In addition, performance standards will be an effective means of
insuring accelerated and consistent program performance. During the
October JRIS, the Food Security Coordination Bureau (FSCB) agreed to
formulate and implement a set of performance standards and targets
covering critical processes, e.g. transfers, public works, human
resources and logistics. In the meantime, NGOs are encouraged to develop
performance standards to objectively monitor successful implementation.
For example, what is a timely transfer? A performance standard might be
that transfers shall be received by the beneficiaries no later than one
month after the completion of the public works labor or that all direct
distribution beneficiaries in the woreda will receive their transfers by
the 15^th^ of every month, or that all six transfers shall be completed
before July 31 of the implementing year.

3.  **Risks and Critical Assumptions**

The PIM describes the Rapid Response Mechanism (RRM) as a cornerstone of
Government's Risk Management Strategy for the Productive Safety Net
Program (PSNP). The objective of the RRM is to address critical
implementation problems as they occur. For more information, see Annex 2
of the PIM. Proposals need to outline critical risks and assumptions
within program implementation and especially those that are critical to
the woredas proposed or inherent in the livelihood zones in which those
woredas sit.

MYAP proposals should clearly describe how the PSNP Contingency
resources will be managed within the GOE's new approach to emergency
appeals. The GOE now uses annual Meher and Belg seasonal assessments to
estimate how many people may be at risk and in need of assistance. When
woredas request assistance, special teams, similar in some sense to the
rapid response teams described above, go out from the Disaster
Prevention and Preparedness Agency (DPPA) and verify if there is a need
and that the quantity and mix of assistance is appropriate and
sufficient. In PSNP woredas, such requests are now to be covered by the
PSNP Contingency resources in the case of moderate shocks. The proposal
discussion of the Contingency resource use should link to the critical
risks and assumptions analysis.

4.  **Sustainability Strategy**

    0.  **Graduation**

The concept of graduation is not explained very clearly either in the
PSNP PIM or other GFDRE policy documents. The PIM refers to graduation
as a 'key goal of the safety net' but does not explain how to apply this
concept. There are a number of dimensions to be defined, such as what it
means for a household to have graduated, as well as the indicators that
can be used to assess these households. The combination of PSNP and OFSP
can provide the platform from which households are able to cushion risk
and make productive investments to transform their livelihoods. The
graduation benchmark is expected to be finalized by the government in
the near future (see Aide Memoire from Oct 2007 JRIS).

**The Importance of Linkages**

Beyond the PSNP and food security programs, there are another set of
other factors that can facilitate or enable graduation. These are
factors related to the coping mechanisms that households use to meet
their food needs, investments that promote rural economic growth, create
employment opportunities and enable economic and household livelihood
diversification. Investing in human capital (service delivery)
especially health, education and other skill trainings are important
aspects of creating resiliency and triggering economic growth. Overall,
the country's agricultural growth strategy resides in the issue of water
resources development. Greatly enhanced water security, combined with
better market connectivity are necessary for the kind of structural
transformation that is needed to put Ethiopia on a path to sustainable
growth. The FSCB and PSNP stakeholders are working on developing
graduation criteria. PVOs should keep informed on the evolution of this
subject.

1.  **Participation and Advocacy**

Participation of NGOs in different discussion fora is important for
sustainable program implementation. Proposals should demonstrate how
NGOs will contribute towards the discussion and facilitation of current
food security agendas with the woredas and the region. Participation in
regional, zonal and woreda-level fora and activities (for example,
livelihood baseline profile development or rapid response teams or Meher
assessments) can be an opportunity for NGOs to expand capacity building
beyond the woredas where the NGO implements PSNP.

5.  **Partnerships and Resource Integration**

Relationships among core PSNP implementing institutions, sector offices
and other institutions is critical for successful implementation of the
PSNP. In addition, linking the PSNP program to the OFSP implemented by
the government, the World Bank, USAID PVOs, EU, DFID and other
organizations is crucial to bring about graduation.

There is an urgent need to strengthen linkages amongst the various
programs affecting nutrition and food security. Currently, programs
operate in a manner largely independent of one another. The Government
of Ethiopia developed a National Nutrition Strategy (2005/2006) based on
a thorough assessment of problems and issues. The assessment showed that
tackling malnutrition among children and women should be considered as
one of the foundations for Ethiopia's aspiration to achieve all other
Millennium Development Goals (MDGs).

The October 2007, the JRIS mission recognized the need for intersectoral
coordination and greater involvement of Regional Environmental
Authorities in public works planning. However, there is a need to
strengthen coordination and follow-up with other sectors, such as the
health, education and water sectors to ensure adequate technical
quality. The Mission recommends that the Regional Technical Coordination
Committees will be strengthened to enhance intersectoral coordination.

As stated above, NGOs are encouraged to explore opportunities for
collaboration and cost-saving ways to work together and harmonize
activities.

**Public - Private Partnership**

Public agencies (national, regional, and local) must increasingly
partner with the private sector and civil society, including producer
organizations, community associations, NGOs and trade associations.
Specialized public-private agencies can help overcome coordination
failures along the market chain, through acting as a broker and
facilitator in the formation of trade associations and market chains.
There are a number of approaches that encourage partnerships between the
public and the private sectors to promote farmers' access to assets and
markets. Matching grants are increasingly used for activities that
support private sector and market development, such as training,
technology development, and access to information, project preparation,
investment in local infrastructure, and collective action for mutual
benefit.

> **HIV/AIDS Mainstreaming**

HIV imposes a series of dynamic shocks on livelihoods and food security.
The GOE and donors have made HIV mainstreaming a focus within the PSNP
to support the overall national response to HIV/AIDS. The PSNP can
contribute to several key areas of the overall national response through
prevention messaging, encouraging avoidance of new infections, and
linking with clincal or referal mechanisms for care and treatment.

Where possible:

-   MYAP proposals should look at food insecure beneficiaries with an
    HIV lens. Proposals should include information on discussions with
    PEPFAR about possible extension of clinical, care and treatment
    services to PSNP areas.  If PEPFAR-funded or other clinical care and
    treatment services are available or to be provided in near future to
    the geographic area proposed, proposals should indicate how
    participants in PSNP who may be chronically ill (with HIV or
    Tuberculosis) may be linked with these clinical services, care and
    support. For example, PSNP beneficiaries in some peri-urban areas
    along major economic corriders could be linked to PEPFAR-funded
    Voluntary Counseling and Testing Centers (VCTs) and clinics.

-   Proposals ahould also indicate how the MYAP will take the chronic
    illness into account in terms of mainstreaming the issue within the
    PSNP activities. A PIM addendum on HIV/AIDS mainstreaming is being
    developed and PVOs should keep informed on the subject.

Further guidance may be found in "USAID P.L. 480 Title II Food Aid
Programs and the President's Emergency Plan for AIDS Relief: HIV and
Food Security Conceptual Framework" and FANTA's "Food Assistance in the
Context of HIV" publications, located at:
<http://www.usaid.gov/our_work/humanitarian_assistance/ffp/FFP_pepfar_conceptual.pdf>
;
<http://www.fantaproject.org/downloads/pdfs/Food_Assistance_Context_of_HIV_Oct_2007.pdf>

**Gender Mainstreaming**

Following a review of the PSNP program, the Government of Ethiopia and
donors agreed that gender mainstreaming into the PSNP is important. As
such, the "Contextual Gender Analytical Study" was commissioned by the
World Bank in order to:

1)  Identify the key gendered structures,

2)  processes and relations which characterize the household,

3)  social and institutional environment in which PSNP is implemented,
    giving explicit consideration to how these interact with the
    following:

-   the public works and direct support components of PSNP

-   the overall Food Security Strategy of the GOE

-   the wider policy context (NAP, PASDEP)

-   the consideration of both supply side and demand side factors
    (including provider and beneficiary perspectives) at federal,
    regional, woreda, kebele, community and household levels.

Accordingly, proposals should demonstrate how gender mainstreaming will
be implemented within the context of PSNP. Contact the Mission for
information on the forthcoming report.

6.  **Monitoring and Evaluation**

## FFP Indicators should be included in the monitoring and evaluation plans. Furthermore, there should be inclusion of any GOE monitoring and evaluation plan indicators as appropriate when these are defined. Note that Annex 1 provides a list of indicators the Mission has chosen to report on. 

## Initial Environment Examination (IEE)

All components of the *PL480 Title II program Policies and Proposal
Guidelines*, *Annex D Title II Environmental Review and Compliance*
issued on October 16, 2007 apply for Title II programs operating in
Ethiopia. Per the advice from the DCHA/Bureau Environmental Officer
(BEO), it is recommended that "if proposed activities fall under the
USAID/Ethiopia Mission "umbrella Initial Environmental Examination (IEE
-- *34Ethiopia3_SO16EG 2004 plus amendments*)"[^2] it is required to
provide the referenced "umbrella (IEE)" in addition to the individual,
detailed Environmental Management Plans (EMP) developed by the CSs for
clearance by the Ethiopia Mission Environment Officer and DCHA Bureau
Environmental Officer (BEO) . If the activities proposed in the CS MYAP
are not addressed in the "umbrella IEE", then the CS is required to
develop and submit an IEE to USAID for standard environmental compliance
clearances as described in "Annex D". Recommended resource documents
include 1) sector-by-sector best management practices outlined in the
"Environmental Guidelines for Small-Scale Activities in Africa 2^nd^
Edition", [http://www.encapafarica.org/egssaa.htm and
2](http://www.encapafarica.org/egssaa.htm and  2)) basic principles for
developing Title II Environmental Management Plans in the Power Point
presentation
<http://www.fantaproject.org/about/environmentalManagement.shtml>.

7.  **PVO Qualification and Experience**

PSNP knowledge and experience is highly recommended. Other food aid
management experience can replace actual PSNP experience, but must be
accompanied by a demonstrated understanding of the PIM, capacity to
implement the PIM, and knowledge and experience in the woredas and/or
the region proposed. Note that a letter of support from the relevant
regional Food Security Bureau is required prior to final approval of any
proposal.

8.  **Implementation/Management and Logistics Plan**

    0.  **Program Implementation :**

NGOs must plan to implement in a cost-effective manner and to cover a
reasonable number of beneficiaries. If a woreda is proposed for
implementation, the NGO must propose to cover all the food transfers and
associated costs for the caseload in that woreda.

NGOs are reminded strongly to use all the formats provided in the
official guidelines. Specifically, budget formats need to be filled as
provided with the MYAP guideline. For eligible use of 202(e) and ITSH
please refer to the Food for Peace Information Bulletins (FFPIBs),
numbers FFPIB 04-01 and FFPIB 04-02, found on the FFP web page.

The budget proposal should be developed with the 12 percent
capital/admin resources sufficient and eligible to meet the PIM
requirement. NGOs should make this explicit for the reviewers by
completing and submitting the template form provided by the USAID
Mission (*Annex 3*).

1.  **Monetization**

Monetization will continue to be a source of funding under the Title II
program. USAID encourages applicants to investigate the possibility of
monetizing commodities other than vegetable oil. Examples are wheat and
crude degummed soy oil. See the study conducted by USAID on alternative
commodities for monetization.
<http://www.usaid.gov/our_work/humanitarian_assistance/ffp/monetiz.htm>

2.  **Logistical arrangements**

The JRIS commented in the October 2007 Aide Memoire on logistical and
food management problems that are delaying timely transfers to
beneficiaries, and undermining the predictability that is critical to
them. Proposals must take into account the problems described and
demonstrate solutions for such problems.

For the first phase of the PSNP, Cooperating Sponsors have used a method
of shipping called "through bill of lading" (TBL) which provides
shipping of commodities from the US directly to the CS's Ethiopian
inland delivery point. USAID/Ethiopia, in collaboration with the
regional USAID office, Food for Peace and current PSNP partners, piloted
an alternative to the TBL, a non-Thru Bill of Lading (non-TBL) commodity
shipment to Ethiopia, in order to analyze an alternative logistical
arrangement. Under the non-TBL, the CS would independently contract for
the trucking of the commodities from the discharge port to the inland
delivery point in Ethiopia. Although the final report has not been
released, preliminary review of reports of pilot shipments demonstrated
the potential for improvements in timeliness and cost-effectiveness in
applying non-TBL versus the existing shipment method of TBLs.

The Mission encourages applicants to consider both TBLs and non-TBLs
shipping arrangements in their proposals while further discussion and
analysis of this alternative arrangement are analyzed by USAID/Ethiopia
and PVOs.

**References:**

1)  Ethiopia: Building on Progress, A Plan for Accelerated and Sustained

> Development to End Poverty (PASDEP), (2005/06-2009/10)

2)  Productive Safety Net Programme, Programme Implementation Manual
    (Revised), July, 2006

3)  ETHIOPIA Policies for Pro-Poor Agricultural Growth, Environmentally
    and Socially Sustainable Development Africa Region, Document of the
    World Bank, June 30, 2006

4)  PSNP Policy, Program and Institutional Linkages, Final Report
    September2006, Overseas Development Institute, IDLgroup, UK and
    Indak International

5\) PSNP Joint Review Mission Aide Memoire, Novemebr 2007.

**USAID/Ethiopia can provide access to materials referenced in this
document. Please send email requests for specific document to Semenesh
Nigatu:** <snigatu@usaid.gov> .

[^1]: Pastoral Pilots are on-going through June 2009. Thus, any proposed
    MYAPS (resulting from the pastoral pilots) would not be submitted
    until January 2009 and would depend on available resources and
    lessons learned from the pilots.

[^2]: umbrella Initial Environmental Examination (IEE) is attached as
    *Annex 2*