REPORT FROM THE COMMISSION ANNUAL REPORT ON HUMANITARIAN AID 1999

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY

2. POLICY AND CO-ORDINATION -ART. 20 EVALUATION

3. OVERVIEW OF OPERATIONS

3.1. AFRICA

3.2. EUROPE

3.3. ASIA, MIDDLE EAST/MEDITERRANEAN AND LATIN AMERICA

4. DISASTER PREPAREDNESS - DIPECHO

5. RELATIONS WITH PARTNERS - FPA

6. GRANT FACILITY - NOHA

7. COMMUNICATION/INFORMATION

8. EVALUATION, BUDGET AND AUDIT

9. Annexes

ANNEX 1 Financial Decisions for Humanitarian Aid by Region (1998,1999)

ANNEX 2 Humanitarian Assistance - Contracts by Financial Years (1997, 1998, 1999)

ANNEX 3 Overview of Financial Decisions for EC Humanitarian Aid by Source of Finance (1993-99)/Financial Decisions for EC Humanitarian Aid (1994-99)

ANNEX 4 Amount of Contracts Signed in 1997, 1998 and 1999

ANNEX 5 Financial Decisions for Humanitarian Aid by Region in 1998 and 1999

ANNEX 6 EC Contracts for Humanitarian Assistance in 1997, 1998 and 1999

ANNEX 7 List of projects receiving financial support from ECHO's Grant Facility

1. EXECUTIVE SUMMARY

1999 was a year full of change for the European Community Humanitarian Office (ECHO), both at the personnel level and regarding the ways in which ECHO conducts its business.

Mr Poul Nielson replaced Mrs Emma Bonino who had been the Commissioner responsible for ECHO since 1995. Mr. Alberto Navarro left after more than 2 and a half years as Director of ECHO. Mrs. Constanza Adinolfi was appointed as new director of ECHO in March 2000.

The year started with a new Framework Partnership Agreement, aimed at improving the way ECHO co-operates with its partners both in the governmental and non-governmental world.

With respect to operations, the Kosovo crisis radically influenced ECHO's priorities for 1999 and the funds it managed: for the first time ECHO provided [1] more than EUR800 million in support of humanitarian operations, roughly half of which devoted to the Kosovo crisis. The latter included the largest single financial decision (EUR196 million) ever adopted by the Commission in the context of humanitarian assistance. However, no funds were diverted from other priority areas in ECHO's budget (particularly Africa), but rather obtained from the emergency reserve in the EC budget.

[1] While throughout the paper frequent reference to ECHO has been made for practical purposes, it should be noted that it is the European Commission which decides on humanitarian funding and takes ultimate responsibility for the activities of its humanitarian office.

In 1999 ECHO funded projects in 70 countries and was present through 65 field experts. Roughly 20% of ECHO's funding was channelled through the UN family (13.7% went to UNHCR and 5.1% to WFP), some 15% via the Red Cross movement, and the remaining 65% were used to finance NGO projects.

The year also witnessed successful cases of "phasing out" by ECHO, giving way to development programmes: Niger and Mali; the belated case of Bosnia Herzegovina; and Kosovo itself, where for the first time the Commission set up a Task Force (heralding the creation of an Agency for Reconstruction) which helped to ensure a smooth transition from emergency relief to reconstruction.

As regards ECHO's approach to the delivery of humanitarian assistance, the evaluation conducted under Art.20 of the regulation governing humanitarian assistance was, no doubt, the highlight of the year. While generally praising ECHO's work, the evaluators highlighted a number of issues in need of improvement : from the way ECHO is internally managed, to relations with partners and the selection and monitoring of projects. Most of these recommendations were endorsed by the Commission in a Communication to the Council and the Parliament.

The single most important message emerging from the Communication is the need to focus on results. In order to implement the recommendation's of the Commission's Communication, a work plan has been drawn up to guide ECHO's reform in the years to come.

The implementation of this plan will be a major challenge for ECHO in 2000 and beyond.

2. POLICY AND CO-ORDINATION - ART. 20 EVALUATION

Article 20 of Regulation (EC) 1257/96 concerning humanitarian aid calls on the Commission, three years after the Regulation's entry into force, to submit an overall assessment of operations funded under it to the European Parliament and to the Council, together with suggestions for the future of the Regulation and, as necessary, proposals for amendments to it.

Accordingly, the Commission drew up terms of reference for an independent evaluation, which was carried out over a period of approximately one year and included extensive desk and field studies. The consultants submitted their findings to the Commission in April 1999.

On balance, the evaluators are positive about ECHO's record. In their view "ECHO is currently financing the delivery of humanitarian assistance at least as well as any other organisation, and probably better and in a more cost-effective manner than any other comparable international organisation".

They singled out the move to Global Plans (i.e., broad strategies for specific countries/regions) as a positive development in planning, found that budget implementation rates were satisfactory by international standards; welcomed the steps already taken to simplify the Framework Partnership Agreement; praised ECHO's major contribution to funding stability via support of international agencies and NGOs; found that projects were cost-effective on the whole; and praised ECHO's evaluation and audit achievements.

However, evaluators also noted that partners did not always have adequate capacity and experience; that ECHO was increasingly managing projects in the so-called "grey zone" between relief and development, which increased the risk of humanitarian operations proving unsustainable; health and nutrition interventions could have been better targeted and lacked sustainability and capacity-building dimensions; the gender dimension was neglected, as was protection; they questioned the reactive, project-based approach of the FPA when it comes to major players such as the Red Cross and the UN; they also found that ECHO was not always able to respond rapidly, even to emergencies, and that Global Plans would have benefited from wider consultations, especially with the UN; they saw scope for improving cost-effectiveness through the use of local resources, and for improving co-ordination with other services of the Commission and Member States; and found that ECHO could do more to avoid undermining local governance.

On that basis, Commission submitted a communication to the Council and the Parliament on 26 October [2], reflecting on the findings and proposing measures to implement many of the recommendations. Those measures have been included in a strategic work-plan to be implemented throughout the next two years.

[2] COM(1999)468 final.

The basic philosophy involves a commitment to performance standards that will be drawn up and monitored openly. Partners being central to the final quality of ECHO's humanitarian aid, the partnership principle that ECHO has always espoused must be further strengthened at all levels. In particular, the Commission agreed that a review of the FPA system was desirable, specially for the Red Cross and UN agencies, in particular to open up possibilities for programmed support to these international organisations. Other specific objectives include: developing a coherent and effective strategy for the "grey zone" dilemma; enhancing co-ordination with Member States; strengthening ECHO's presence in "humanitarian capitals" (New York, Geneva, Rome); ; improving project cycle management; controlling results, together with measuring inputs, improving synergies with staff in the field; strengthening management at headquarters; and improving skills of staff both at HQ and in the field.

In the context of the general UN-EC negotiations that resulted in a EC/UN Framework Co-operation Agreement in August, the new Commissioner, Mr. Poul Nielson, vowed to continue and improve ECHO's support of UN humanitarian operations, and to focus on its core capacities and comparative advantages. He had preliminary discussions on these matters with Ms. Sadako Ogata (UN High Commissioner for Refugees), Mr. Sergio Vieira de Mello (UN Emergency Relief Co-ordinator) and Ms. Carol Bellamy (Executive Director of UNICEF) during "first-contact" meetings held in Brussels in October and November. More in-depth conversations between ECHO and the UN family on the future of their co-operation are to take place in the spring of 2000.

As a result of the article 20 Communication DG DEV and ECHO also launched a debate aimed at improving the existing Linking Relief, Rehabilitation and Development (LRRD) policy with a view to clarify responsibilities in the grey zone, and a debate regarding a new comprehensive approach vis-à-vis the UN family.

Closely linked to the Art. 20 evaluation, in 1999 ECHO adopted a new strategy aimed at emphasising the protection dimension of its work. A discussion paper entitled "Towards a Human Rights Approach to European Commission Humanitarian Aid" heralded the new approach, and the decision to finance human rights-related projects on the Kosovo crisis complemented it.

Throughout 1999 the Humanitarian Aid Committee (HAC), established in 1996 as stipulated in regulation 1257/96, continued its work of assessing ECHO proposals and contributing to co-ordinated EU action on humanitarian crises.

At its informal meeting on 15-16 January in Frankfurt under the German Presidency, and as established in the regulation, the Committee discussed the general guidelines of EC humanitarian action in 1999.

The HAC met seven times in 1999, plus an extraordinary meeting on 9 April to discuss the situation in Kosovo. On the whole, the proposals submitted by the Commission, whether through an oral or written procedure, were appraised favourably by the Committee.

In June the HAC conducted for the second time ever a field mission, in this case to Central America. The visit was very positive, allowing members of the Committee to familiarise themselves with the implementation of EC humanitarian assistance and the humanitarian conditions prevailing in the region.

The Committee also discussed horizontal issues in the field of humanitarian assistance, thus contributing to develop the dialogue between ECHO and EC Member States on matters of common interest. The main questions broached in 1999 relate to technical assistance and ECHO operations, ways in which humanitarian assistance can promote human rights, and above all the Communication on Art.20 evaluation. Bilateral contacts with ECHO's main donor partner outside the EU, the US, continued in 1999. Commissioner Nielson visited Washington on 27-28 September, and held discussions with the US and multilateral institutions (USAID, US Department of State, World Bank and Inter-American Development Bank) on development and humanitarian assistance policies.

3. OVERVIEW OF OPERATIONS [3]

[3] Please see box on page 22

3.1. AFRICA

West Africa

1999 marked the last year of ECHO's presence in Northern Mali and Northern Niger, in the Tuareg post-rebellion context. ECHO's action, which found its logic in the continuum between relief, rehabilitation and development, will be henceforth replaced by development programmes, implemented by DG Development or by Member States. The projects financed by ECHO, which aimed to consolidate the socio-economic reintegration of returnees in the priority fields of water, health and food security, ended in December 1999 and will be replaced by medium and long term programmes aiming at sustainable development. In both countries ECHO action, which started in 1996 in Mali and in 1997 in Niger, was praised as a major contribution to social stabilisation and peace. On the whole, ECHO will have devoted EUR14.7 million to Northern Mali and EUR5,1 million to Northern Niger in this period.

Guinea-Bissau experienced in 1999 an uncertain return towards peace. In the absence of a resumption of the development programmes, the main public services were still not operating properly. The some 100,000 displaced returning to Bissau after the fights, had to repair their houses before the rain season in order to guarantee decent living conditions and hygiene. Other urgency concerned access to medical care, in the absence of a functional health system and in a context of extreme epidemic risk. In this framework, a decision of EUR2.9 million was taken to address the emergencies until development programmes are allowed to resume.

In Sierra Leone the humanitarian situation reached a trough in early 1999, after 8-years of civil war, with all indicators (malnutrition, mortality and morbidity rates) 'in the red'. Despite the Peace Agreement, the situation has not improved at all. Humanitarian personnel, which were heavily targeted by the combatants in early 1999 (looting, confiscation of equipment, arrest of local staff, etc) faced difficulties in obtaining guarantees from rebel forces for security and free access to populations in dire need of assistance.

The number of Sierra Leonean refugees living in camps set up in neighbouring Guinea and Liberia is estimated at 500,000. There are some 200,000 internally displaced people. In this context, ECHO's intervention focused on providing core-humanitarian emergency assistance mainly in Sierra Leone, but also for Sierra Leoneans in Guinea and Liberia. ECHO's contribution was directed towards medical and nutritional programmes, food security interventions, water & sanitation, transport and logistics. ECHO also supported psycho-social programmes mainly aimed at assisting children affected by war (abducted and demobilised child soldiers as well as unaccompanied minors). In 1999, a total of EUR14 million were allocated in support of the victims of the conflict in Sierra Leone.

Central Africa/Great Lakes crisis

ECHO developed one Global Plan covering the second half of 1999 for the Great Lakes region totalling EUR53.3 million, including the following activities [4]:

[4] EUR5 million earmarked in the Global Plan for WFP's activities in the region had not been contracted by the end of 1999, but still appear as part of the EUR53.3 million Plan.

As a result of the continued fighting in the Democratic Republic of Congo, around 800,000 people were internally displaced, while 160,000 Congolese sought refuge in Tanzania, Zambia and Rwanda. For its part, the DRC hosted over 230,000 refugees from neighbouring countries.

Although slightly improved after the July Lusaka agreement, access and security remained a major bottleneck for the humanitarian relief community in DRC. ECHO reopened its Goma office in September (while keeping its Kinshasa office) and encouraged aid agencies to develop a coherent strategy.

During 1999 the Commission took decisions worth EUR13.3million on humanitarian assistance to the DRC. This amount was used to provide health support to key areas of the country as well as for the distribution of food and non-food items to vulnerable population groups, including refugees and IDPs.

As a result of the war that flared up in December 1998, more than 20% of the population of Congo-Brazzaville found itself displaced in 1999, with a gradual return in certain areas since July. Brazzaville and Pointe Noire became the convergence points for the IDPs, causing an increasing demographic pressure. This endangered food security and the nutritional status of the population affected, particularly in the case of Brazzaville.The intervention of ECHO, totalling EUR6.94million, succeeded in addressing many of the major humanitarian problems caused firstly by the displacement of people in the December 1998 war, and secondly by their return in large numbers. ECHO funded mainly the provision of transport facilities, health, food aid and nutritional programs.

In Burundi, violence between the various rebel factions and the army intensified in the second half of 1999. The economy was further weakened, and the already degraded humanitarian situation got worse, with the Government often unable to provide basic services. The decision to forcefully displace large parts of the population of Bujumbura resulted in over 300,000 people regrouped in 53 overcrowded and unsanitary sites, many of which were not accessible. This raised the total number of displaced people to over 800,000, or 12% of the country's population.

October was marked by the brutal murder of 2 UN staff and 7 Burundians during a visit to a camp in Rutana province. As a result UN and NGO's withdrew most of their staff from rural areas and temporarily interrupted many crucial activities, to be resumed as soon as more effective security measures were put in place.

ECHO provided EUR10.3 million-worth of assistance to Burundi's war-affected populations in the fields of nutrition, sanitation and general health in IDP camps.

As in previous years, the humanitarian situation in Tanzania was dominated in 1999 by the presence of more than 370,000 refugees along its western borders with Rwanda, Burundi and DRC. While the refugee influx from DRC was reduced to a trickle by September, the increasing rebel/government hostilities in Burundi and the murder of UN-Staff in Rutana triggered a sharp increase in the influx of Burundian refugees, and made contingency planning essential.

Prohibited from developing self-sustaining livelihoods, the refugees are entirely dependent on external assistance. ECHO supported a vast refugee care and maintenance programme, comprising food aid, protection activities, water and sanitation, health and nutrition, education and community services. Moreover, ECHO responded to calls by the Tanzanian Government to provide more support for its own poorest groups of population by focusing on surveillance, early warning and rapid targeted assistance in the food and health sectors. Humanitarian assistance funded by ECHO in Tanzania amounted to EUR16.9million in the year.

By late 1999 there were no humanitarian emergencies in Rwanda. The food security situation improved markedly over the year and malnutrition rates decreased significantly. Humanitarian needs in the Northwest of the country were addressed in a comprehensive way. UNHCR and its implementing partners completed the distribution of ECHO-funded NFIs to resettled IDPs in the prefecture of Gisenyi, while the Government's "umudugudu" policy ('regroupment' in villages) remained a controversial point of discussion with the main foreign donors. The favourable conditions in the north-west and the deteriorating living conditions in North Kivu prompted the return of around 20,000 Rwandan refugees. The prefectures of Kibuye and Byumba continued harbouring over 30,000 refugees, mainly from the Democratic Republic of Congo.A total of EUR955.000 were devoted to humanitarian assistance in Rwanda.

On top of the EUR53.3 million of the Global Plan, a separate EUR5 million decision was made in support of WFP food aid for refugees in Tanzanian camps.

Finally, from March 1999 some 25.000 refugees from the Democratic Republic of Congo (RDC) fleeing the conflict in their country sought protection and assistance by crossing into Zambia's northern District of Kaputa. The European Commission contributed to the humanitarian action in favour of the 25,000 Congolese refugees settled in northern Zambia with a funding proposal for an amount of EUR1.5 million (outside the Global Plan). The funds made available were channelled through the United Nations High Commission for Refugees, which as lead agency co-ordinated the operation and ensured that the rights of the refugees under international law were protected. Funds covered the camp management, shelter, provision of essential health, nutrition and water and sanitation services.

Horn of Africa

Internal tensions and fighting continued throughout central and southern Somalia, limiting considerably the humanitarian space necessary for the International Community to provide assistance to vulnerable populations. A number of international aid agencies had to temporarily withdraw their expatriate staff. In contrast, the northern part of Somalia enjoyed relative stability, which justified the start of rehabilitation measures.

ECHO's efforts (EUR3.3 million) concentrated on medical and nutrition assistance in Mogadishu and Southern Somalia.

The conflict between Ethiopia and Eritrea, which had been simmering since June 1998, developed into open hostilities in February 1999. Whilst there were only a few casualties among the civilian population as a result of the military activities, several hundred thousand persons were either internally displaced or deported from their country of residence.

During 1999 the Commission took decisions worth EUR10.2 million for humanitarian assistance to persons affected by this conflict. The largest portion of this amount (EUR6.7 million) funded operations in Eritrea, where a large part of the IDPs lived in some 30 camps under difficult conditions (most Ethiopians driven from their homes had been integrated in existing settlements). Most of the funds were used for the provision of food, the rest being spent on clean water supply, shelter, health care and non-food items.

In 1999 the humanitarian situation in Sudan improved substantially, in comparison with the previous year that had been marked by the worst famine in a decade. Nevertheless the country is entering its 17th year of civil war with no real end in sight. Peace talks continued at different levels, but none of the opposing sides seemed prepared for real compromise. The main areas of insecurity in 1999 remained Northern Bahr el Gazal and Western Upper Nile around the oilfields, whereas the Government of Sudan continued its occasional bombing raids all over the South.

ECHO funded projects worth EUR13.5 million, mainly in the medical, water/sanitation, food security and logistics sectors. Operations generally went smoothly, although humanitarian access in Sudan is increasingly difficult. Consequently ECHO remained strongly opposed to the proposed Memorandum of Understanding between NGOs and the SRRA (humanitarian branch of the SPLA) which would further restrict humanitarian operations in the rebel-held areas.

Angola

In 1999 the consequences of civil war in Angola exceeded any previsions in terms of humanitarian needs and suffering. The hope for peace was shattered by the intensification of the conflict that spread to almost every major town. The humanitarian situation deteriorated throughout the year and there was a growing wave of displaced people fleeing from the countryside to the provincial capitals. The number of new Internally Displaced People (NIDP) since mid-1998 reached nearly one million and UNHCR country offices in D.R.C, Zambia and (to a lesser extend) Namibia, confirmed substantial arrivals of Angolan refugees Precarious security conditions and limited field access made working conditions for humanitarian organisation very difficult in most war-affected provinces. No humanitarian activities took place in UNITA controlled areas since March.

In 1999, the European Commission proposed to respond to this situation with a funding strategy for humanitarian assistance worth EUR10 million. The aid was given to the recipients via more than 20 NGOs. The decision aimed to reduce mortality rates amongst the most vulnerable sections of the civilian population and to support the provision of shelter and non-food items to the growing number of IDPs in need.

ECHO-Flight

In 1999 ECHO-Flight continued its service in the Horn of Africa and in West Africa. Six aircraft based in Nairobi, Djibouti, Mandera and Lokichoggio were used to support humanitarian operations in Somalia, Kenya and Southern Sudan.

Due to a general improvement of conditions in the region and the re-establishment of commercial flights, the service provided by one aircraft based in Bamako that delivered humanitarian supplies in Mali, Niger, Senegal and Guinea Bissau was discontinued.

3.2. EUROPE

Western Balkans

1999 was the year when open military conflict returned to the region of the former Yugoslavia, and engulfed its southern part in a humanitarian tragedy of massive proportions. While ECHO's efforts in the region in recent years had focused on recovery and return, the conflict sent the humanitarian community back to the task of helping hundreds of thousands of refugees and displaced persons survive the immediate consequences of violent conflict and sudden, massive displacement.

The Kosovo crisis also made a complex crisis in former Yugoslavia even more complicated, with new layers of displacement added on to an already intricate pattern of forced population movements.

ECHO responded massively to the Kosovo crisis during its different stages, deciding on a total of EUR378 million in direct response to the events in 1999. This represents a marked increase compared to 1998, when ECHO provided EUR21.6 million in favour of the victims of the first escalation of tension and violence in Kosovo.

Initial efforts between March and June focused on the reception and accommodation of large refugee and displaced populations streaming out of Kosovo and into the former Yugoslav Republic of Macedonia, Albania, Montenegro and Bosnia and Herzegovina.

The Commission allocated EUR182 million to this end between the end of March and June 1999, providing emergency humanitarian aid to meet the needs for food and hygiene aid, shelter (refugee camps, collective accommodation, host families), health care, psycho-social support, protection and community services. ECHO was the largest contributor to UNHCR's operation in response to the Kosovo crisis.

Support was also extended to cover the most vulnerable among the local population in Albania, fYROM and Montenegro.

The adoption of United Nations Security Council Resolution 1244 on 10 June and the subsequent deployment of KFOR in Kosovo led to a quicker and more comprehensive return than expected of the many refugees and displaced persons.

For the remainder of the year, ECHO's efforts focused on providing emergency humanitarian aid to Kosovo, where massive destruction of housing and infrastructure and widespread looting had meant that returning refugees and displaced persons were in need of a comprehensive package of support in order to ensure minimal living conditions over the winter. The Commission on 16 July adopted a further decision of EUR196 million for humanitarian aid to the victims of the crisis in the region.

ECHO and UNHCR had drawn up a comprehensive return assistance plan for Kosovo by May, which subsequently formed the backbone of the international humanitarian assistance effort in Kosovo. ECHO-funded NGOs, other donors and UNHCR together provided more than 65,000 shelter and 'winterisation' kits, allowing returning refugees to repair their damaged or destroyed houses and ensure one heated room for the winter. This programme was complemented by small-scale agricultural projects, as well as by clearance of anti-personnel mines and unexploded ordnance.

The rapid deployment of a Commission Task Force for the Reconstruction of Kosovo (TAFKO) allowed for the early planning of the transition between humanitarian aid and rehabilitation and reconstruction assistance.

Assistance programmes in neighbouring republics (Montenegro, Albania, fYROM) were pursued for as long as required, while the support to vulnerable groups in these republics was continued into 2000 in order to mitigate the negative consequences of the crisis on the situation of vulnerable groups.

In Albania, aid programmes that became redundant when the refugees returned where re-oriented towards meeting the most pressing needs of the local population, in particular in the fields of health care and water and sanitation. This programme also constituted the continuation of the earlier ECHO programme in Albania following the unrest and destruction in 1997.

While prospects for Kosovo were good in the second half of 1999, the situation in Serbia deteriorated sharply, and led ECHO to step up its assistance more than six-fold in comparison with previous years. Food and hygiene programmes in favour of the old caseload of refugees from Bosnia and Herzegovina and Croatia were rapidly expanded to cover more than 800,000 refugees, displaced persons and vulnerable groups among the local population.

The accommodation of the displaced persons from Kosovo also warranted significant efforts in the fields of emergency rehabilitation of collective centres and private accommodation. Attention was also paid to the situation in social and health institutions, which received targeted support with minor rehabilitation, equipment and heating fuel.

Prior to the Kosovo crisis, the Commission had allocated EUR69 million for the continuation of the post-Dayton programme in Croatia, Bosnia and Herzegovina and the FRY. While the situation in the FRY rapidly deteriorated, initial plans to gradually phase out ECHO's assistance to Croatia and Bosnia and Herzegovina were maintained, as the humanitarian situation continued to improve and the need for traditional aid programmes was reduced as a consequence of the general economic and social recovery.

The support of the return process in Bosnia and Herzegovina and Croatia was maintained in 1999, while efforts were stepped up in order to ensure a smooth transition to longer term Commission assistance programmes in support of return in the two countries.

CIS and rest of Europe

Commission assistance in CIS countries totalled EUR63.8 million in 1999 [5]. Aid programmes directly related to the various ethnic conflicts that affected the region in the last decade remained either at the same level as in previous years (EUR16 million in Tajikistan) or was gradually reduced as the process of gradual transition from humanitarian to other type of assistance continued.

[5] Some EUR5 million were actually not spent by the end of 1999 and were transferred to the general ECHO Budget. This explains the apparent discrepancy with the figure in annex 5.

However, the serious impact of the Russian financial crisis (August 1998) on the economic situation of the whole CIS region and on the general living conditions of the local population prompted the European Community to request special efforts by ECHO to adapt its humanitarian instruments as far as possible, in order to provide assistance to the most vulnerable parts of local society. In the case of Russia, EUR5.4 million had already been allocated to this effect in December 1998 and under the 1999 budget, further EUR5.6 million were made available. Funded activities focused mainly on tuberculosis-related programmes, support to selected vulnerable medical and social institutions, assistance to "forced migrants" and IDPs, local capacity building and strengthening of the Visiting Nurses Services in selected regions.

An amount of EUR20 million was transferred from the TACIS budget line to ECHO in order to fund a special assistance programme in favour of 8 CIS countries that had particularly suffered under the Russian financial crisis.

Unfortunately, the working environment for humanitarian actors, in particular NGOs, has remained difficult in the region (problems with local authorities, taxation and customs). In an effort to facilitate programming and monitoring of ECHO projects, but also in order to support the implementing partners as far as possible in their dealings with local authorities, ECHO opened a new office in Moscow in September 1999.

The Northern Caucasus proved to be an exceptional case. Like in the previous year, security conditions remained extremely bad and prevented a resumption of substantial international assistance. This fact was all the more regrettable, for it can be assumed that the renewal of violence in the area (Dagestan and Chechnya crises) has exacerbated existing needs. The new Russian military intervention in Chechnya has displaced more than 200,000 inhabitants of Chechnya and despite all efforts by the international community to facilitate a political settlement of the conflict, the outlook for a negotiated solution was at the time of writing this report not very promising. The security problem made it impossible to become operational in Chechnya itself. Even in neighbouring Ingushetia, where most of the refugees are currently concentrated, humanitarian actors are facing numerous difficulties.

The Commission allocated EUR1.2 million in October to a relief programme organised mainly by UNHCR. In December, a further EUR1 million was allocated to ICRC's activities in the region. Taking into account the unresolved security problems, both programmes had to be implemented via "remote control" (without permanent deployment of expatriate staff).ECHO does not favour this approach, which has not offered satisfactory results in the past , but under these exceptional circumstances it proved to be the only possibility to provide at least some relief to the victims of the conflict.

By the end of the year, a number of other humanitarian actors (including several NGOs that already had prior working experience in the region) were trying to identify possibilities to become operational in the Northern Caucasus.

In Central and Eastern Europe, there was no need for major interventions in 1999. As a result, ECHO's role mainly consisted in the continued implementation of some 1998 projects (medical supplies in Bulgaria). Only limited new interventions took place in specific countries.

On 17 August a major earthquake, measuring 7.5 on the Richter Scale, struck the north-western region of Turkey. Four provinces, Yalova, Kocaeli, Sakarya and Bolu, together with surrounding areas of Istanbul were badly affected. Some 18,000 people lost their lives and up to 40,000 were injured. Major structural damage also occurred. The Commission responded rapidly to the disaster. On 19 August a funding decision of EUR2 million was adopted followed two weeks later,on 25 August, by a second funding decision of EUR2 million. NGO partners began to implement programmes which focussed on the supply of emergency items including temporary shelter, hygiene kits, medicines and winter clothes. On 12 November a second major earthquake struck; the epicentre was in the town of Duzce in the province of Bolu. The Commission responded by adopting a funding decision of EUR3 million on 23 November. Given the scale of the disaster and continuing needs, a further funding decision of EUR23 million was adopted on 20 December, thus bringing the total amount allocated in support of victims of the earthquake in Turkey to EUR30 million. In addition to the sectors already, support has also been earmarked for post-trauma counselling and disaster preparedness mentioned initiatives.

3.3. ASIA, MIDDLE EAST/MEDITERRANEAN AND LATIN AMERICA

Central America, Mexico and the Caribbean

At the end of 1998, Hurricane Mitch hit hard the entire region of Central America. Since November 1998 ECHO has been continuously present in the region with the aim of assisting the affected population. In October 1999, the Commission adopted a Global Plan amounting to EUR16 million that envisages assistance activities for the four countries Honduras, Nicaragua, Guatemala and El Salvador. This Global Plan completed the two precedent decisions in favour of the victims of the hurricane, providing further assistance in the sectors of water and sanitation, health and the rehabilitation of private houses.

Last May the Commission cleared a package of humanitarian aid for an amount of EUR2 million for victims of the conflict in Guatemala. The overall aim of the programme was to assist the resettlement of displaced families of the CPR of the Sierra and Peten (Comunidades de Poblacion en Resistencia) and of the CPT (Comités pro Tierra) of the department of Quiché. This decision was taken within the framework of ECHO support for the implementation of the Peace Agreements, which started in 1996.

The programme will primarily contribute towards ensuring continuity in the resettlement process of people who have been uprooted (provisions of basic shelters, drinking water, medical and health assistance).

In August 1999, the Commission approved an intervention amounting to EUR500,000 in favour of the population affected by two earthquakes and the subsequent eruption of the Cerro Negro Volcano in the department of earthquakes León in Nicaragua. The aid consisted of the distribution of basic relief items, the provision of medical care and the set up and organisation of shelters.

Cuba benefited from an aid of EUR9 million in 1999, devoted to food support, medicines and short-term rehabilitation of hospitals. An additional EUR2 million emergency aid targeted the needs created by hurricane Irene in October. Finally, EUR410,000 were allocated to disaster prevention projects. In the case of Cuba, each ECHO NGO-partner involved is responsible for the purchase and international transport of one item (medicines, medical utensils, food, sanitation equipment...), but monitors the distribution of all humanitarian items (by the Cuban health ministry) in one or two provinces. ECHO field experts monitor the arrival and storage of the aid.In Mexico, the Commission provided EUR1 million to assist flood victims in the states of Puebla and Veracruz, plus EUR500,000 in favour of displaced population in Chiapas.

South America

The internal conflict in Colombia continued worsening during 1999; it is calculated that over 500,000 persons have been displaced during the last five years. In 1999, the Commission approved a third Global Plan in favour of the displaced people in Colombia with a total budget of EUR6.5 million .

After the earthquake on 25 January 1999, emergency and post-emergency aid was channelled to the victims for a total amount of EUR3.4 million .

Following the catastrophic floods striking Venezuela in December, the Commission swiftly decided to provide, via ECHO, EUR400,000 of emergency relief to those affected.

In Ecuador the Community provided and aid worth EUR290,000 in favour of the population displaced by the eruption of the Tungurahua volcano.

Paraguay received EUR334,000-worth of humanitarian assistance aimed at people affected by the drought caused by the climatic phenomenon called "La Niña". In the case of Peru and Bolivia, EUR1.6 million were devoted to fund emergency food aid, water and sanitation, and agriculture rehabilitation in support of the most vulnerable groups affected by the floods and the fires caused by "La Niña".

Middle East/Mediterranean

A EUR11 million global plan for the Middle East was adopted in July. It included assistance to the Palestinian population in the occupied territories, Palestinian refugees in Lebanon, Syria and Jordan, plus some specific aid in support of vulnerable groups in those countries.

With the calendar proposed by the UN Secretary-General on 13 May in mind (which envisaged the start of repatriation in March 2000 and the holding of the referendum in July 2000), ECHO put together a EUR7.5 million assistance programme for Western Sahara. It aimed to support the needs expected from the first movements of population back into the territory; plus continuing food supplies and in general keeping acceptable living conditions for the refugees.

A EUR500,000 decision adopted by the Commission on 25 February envisaged the strengthening of operational capabilities of Algerian Red Crescent, partnership programmes between Algeria's and Europe's psycho-social networks, and the establishment of counselling structures for orphans and traumatised children.

The Commission adopted a EUR500,000 decision on 10 September including assistance to support people having difficulties integrating into Yemenite society, repatriated people, the handicapped and a vaccination campaign against measles. In addition, two operations to fight against malaria, one of Yemen's priorities in the health field, were funded by a EUR800,000 decision made on 6 May.

Regarding Iraq, a EUR2 million decision adopted on 2 June permitted the funding or projects providing medical supplies, rehabilitation of sanitation infrastructure, support to institutions assisting handicapped and stray children, as well as assistance to displaced persons.

Asia

En 1999, ECHO allocated EUR5 million to support displaced persons in certain areas of Afghanistan, namely Hazarajat, Panshir, the North and Kabul.

In the Hazarajat region, ECHO funded cash-for-work food security operations, whereas in Panshir and in the North ECHO financed projects aimed to support displaced persons.

The influx of 50,000 IDPs has much worsened the humanitarian situation in Kabul, on top of the chronic underemployment situation and recent economic sanctions on the Taliban regime. To address the emergency situation in Kabul, ECHO supported rehabilitation operations of medico-nutritional programs, as well as specific food-for-work operations in favour of IDPs and vulnerable groups.

Lastly, ECHO allocated EUR750,000 to assist victims of the earthquake that hit the south of Kabul in February.

ECHO provided an additional EUR2 million to support victims of the floods affecting Bangladesh in 1998, the worst in the history of the country. The projects financed by ECHO aimed at reducing the dependency of the population vis-à-vis emergency relief via actions in the areas of shelter, water and sanitation, and food security. Following the summer floods, ECHO financed three projects totalling EUR1,075 million in the areas of food aid, medical supplies and housing rehabilitation.

In February, EUR1 million was allocated to Cambodia, to assist the return and reintegration of some of the 46,000 refugees that had returned from Thailand. Resettlement, though, was difficult, especially in the north-west of the country where land mines and the lack of roads prove a permanent obstacle. In 1999 ECHO also implemented a global plan worth EUR5.5 million. The target population consisted of internally displaced people, returnees and other vulnerable groups living in former Khmer Rouge conflict zones. The focus was on four main humanitarian areas: primary health care; provision of basic necessities; assistance to refugees and returnees; and humanitarian de-mining.

In addition to the global plan, EUR545,000 were provided in August to the victims of floods, and EUR310 000 in December.

In China, ECHO provided EUR1 million to assist victims of floods in the Yangtse region, mostly to address food and water needs of the population affected. The Tibet region also benefited from an EUR500,000 aid in the form of shelter, food aid and medical assistance.

In North Korea, ECHO's action consisted in the implementation of a EUR4 million global plan if the fields of health and hygiene for children, delivery of medicines to hospitals and water and sanitation. A complementary EUR800,000 decision permitted ECHO to provide winter clothes for children, and coal to meet the heating needs of schools, orphan homes and hospitals.

The Commission decided in February to provide EUR1 million worth of humanitarian assistance to nomadic populations in the north-west of India, following the exceptional snowstorms hitting that region and Tibet. That programme, including food aid, medical assistance and survival equipment assisted a population of some 30,000 families for 9 months. In October an exceptionally strong cyclone hit the eastern coast, particularly the state of Orissa, affecting directly more than 15 million people. The Commission adopted a EUR2 million decision to fund emergency relief, followed by another EUR5.2 million one.

In the case of East Timor, three decisions of humanitarian assistance were signed in 1999 (EUR2 million in July before the crisis, EUR3 million in September for emergency operations and EUR10 million in November) The main sectors of ECHO intervention are health and medical assistance, distribution of food and non-food items, transport of the returnees, water and sanitation, shelters, protection and security of the IDP's.

As regards Indonesia, a decision was first signed in March 1999 for emergency aid to displaced people in Maluku islands of EUR1 million for medical and health programmes and the distribution of food. In December 1999, a new decision was signed providing EUR3 million for humanitarian assistance to the people victims of conflicts in Aceh, West Timor (refugees from East Timor) and Maluku islands.

EUR450,000 were devoted to assist cyclone victims in Pakistan, with a special attention to the fishing community, and regarding the fight against malaria.

In the Philippines ECHO focused on the response to natural disasters and disaster preparedness projects (DIPECHO). In September the Commission granted EUR1.16 million to projects in favour of flood victims, providing urgently needed medical resources as well as food and non-food aid. That sum also covered projects assisting internally displaced people in the former MNLA guerrilla areas of Basilan and Central Mindanao, by meeting their water, sanitation and education needs, in addition to providing food aid.

In Sri Lanka, the resumption of hostilities in the North provoked new internal displacement, and the repatriation work by the Government continues, particularly in the Jaffna area. In that context, the Commission granted EUR1.36 million to three projects focusing on shelter, wells rehabilitation and sanitation, and the delivery of agricultural inputs to those being repatriated.

In May the Commission adopted a EUR4.5 million food aid global plan in favour of Burmese refugees in camps along the border with Thailand. That plan benefited 120,000 refugees, who received medical assistance and food for ten months.

Vietnam was included in the EUR2 million decision for flooding that affected South East Asia in July/August 1999. In December EUR700 000 were allocated to the victims of the floods that had swept the country in November.

4. DISASTER PREPAREDNESS - DIPECHO

In 1999 ECHO continued, strengthened and broadened its action in the field of prevention of and preparedness for, natural disasters, through its DIPECHO programme.

As the implementation of DIPECHO's first set of Action Plans proceeded throughout the year, ECHO also conducted an evaluation of each one of these Plans.

At the conclusion of the first Action Plan (DIPECHO Caribbean), the evaluation showed the need to pursue the DIPECHO approach simultaneously along the three axes that had been already defined: the Caribbean region, the national structures and the local communities. To accomplish these objectives, the EUR1.675 million second DIPECHO Action Plan for the Caribbean was adopted in December 1999.

Two evaluations were conducted on DIPECHO's action in Central America and South East Asia. Both evaluations showed that greater emphasis had to be given to two main levels of intervention : national and regional and identified project guidelines for future Action Plan.

The DIPECHO programme was extended to two new regions: the Andean Community and South Asia. ECHO conducted an assessment of needs in each region, to identify the risks and analyse the socio-economic vulnerability of the population and the existing response mechanisms:

*For the Andean Community, the assessment recommended to focus on preparing the communities most vulnerable to flooding, landslides and earthquakes and on strengthening disaster prevention structures at regional, national, district and local levels. The first DIPECHO Action Plan composed of 17 projects for a total amount of EUR5.330.000 was adopted in December 1999.

*The assessment for Southern Asia underlined three levels of interventions for the future DIPECHO Action Plan to be adopted in 2000: at local and community level; at state and district level to support the disaster management capacity-building; and at national and regional level to further strengthen existing institutions and initiatives to promote information and technical exchanges.

In 1999, EUR395.000 were also devoted to "out-of-DIPECHO-area" projects (Morocco -- EUR40.000 -- and Kyrgystan/Uzbekistan -- EUR120.000), as well as to promote the co-ordination of preventive activities in the Caribbean.

5. RELATIONS WITH PARTNERS - FPA

Co-operation between ECHO and its partners is governed by the Framework Partnership Agreement (FPA). This instrument was revised in light of past experience and the new version of the contract entered into force on 1 January 1999. This instrument is the fruit of a thorough reflection and of an overall internal evaluation of the operational needs as well as of a detailed dialogue with the ECHO partners. This tool enables ECHO to implement projects quickly via partners known and identified according to their professionalism and their experience in humanitarian matters. 163 partners have signed the Framework Partnership Agreement. Since the entry into force of the new FPA, a team of ECHO has been carrying out information and training sessions on this subject in all the European capitals for the attention of the NGOs.

FPA was the subject of amendments for the International Federation of the Red Cross and the International Committee of the Red Cross, so that the specific mandate of these organisations could be taken into consideration.

In addition, after the signing of the Framework Agreement between the Commission and the United Nations on 9 August, ECHO undertook the task of adapting the FPA to the operations carried out by the Agencies of the United Nations that are financed by ECHO. Work is on-going within ECHO as well as with partners on the evaluation, redefinition and interpretation of the FPA, in line with the Article 20 Communication (see also point 2).

On 10 December, ECHO organised its annual meeting with partner NGOs, where several issues of common interest were discussed. Commissioner Nielson addressed all ECHO partners in Paris, vowing to strengthen and improve ECHO's collaboration with them in the common humanitarian endeavour.

An active ECHO representation was also ensured at the Commission's inter-service working group aiming to define a new partnership with NGOs. In this context, the FPA was mentioned as an effective example of co-operation.

Within the framework of its co-operation policy with NGOs, ECHO financed activities geared to the strengthening of the partnership through the pooling of the experience and know-how of its partners

6. GRANT FACILITY - NOHA

The Grant Facility was established in order to make available small grants - of a non-renewable nature - for training initiatives, studies and networks in the humanitarian field, corresponding to a number of priorities identified by ECHO on an annual basis. Thus, it is the purpose of the facility to enhance the knowledge and expertise of humanitarian agencies and their professional staff. In addition, ECHO contributes through the Grant Facility to the understanding of humanitarian issues and to the development of appropriate policy responses. Finally, the Grant Facility enables ECHO to maintain lines of communication with the key actors in the international debate on humanitarian issues.

The priority areas identified in 1999 were:

*Security of relief workers.

*Military-civilian co-operation in humanitarian operations (with particular reference to the possible contribution of WEU).

*Integration of human rights considerations in humanitarian operations, including promotion of international humanitarian law.

*Case studies aiming at establishing and testing methodologies to assess the wider political, social and economic impact of humanitarian assistance on communities or countries in crisis.

Projects aiming at building capacity and enhance skills of humanitarian NGOs, as well as projects developing networks and other mechanisms with a view to improving the co-ordination and quality of humanitarian response, could also be financed under the 1999 facility.

The call for proposals for the Grant Facility was published on ECHO's homepage in the first quarter of 1999. This prompted some 40 applications. 8 projects received financial support in 1999 for a total of EUR484.350 (see annex 7).

7. COMMUNICATION/INFORMATION

In 1999, ECHO's information strategy involved four aspects: media, publications, audio-visual publications, activities organised jointly with international and with non-governmental organisations, as well as programmes to mark the German and Finnish presidencies of the European Union.

Press releases were published in close co-operation with the Spokesman's Service to announce major funding decisions and other important activities. Other decisions were published in the form of 'News in Brief' bulletins. The ECHO website was launched in English and French, and improved over the course of the year. ECHO also co-operated closely with Reuters' Alertnet, giving us an opportunity to reach a wider audience with news about ECHO activities.

ECHO continued to work closely with the rotating presidencies of the Council and, in this context, co-operated with the German and Finnish Presidencies in organising communication initiatives (including conferences on child soldiers and old people held in Berlin and Helsinki, respectively).

8. EVALUATION, BUDGET AND AUDIT

In 1999, the financial resources (from the EC budget and the European Development Fund) devoted to humanitarian aid and managed by ECHO approached the figure of EUR812.9 million. This amount was far superior to the funds managed by ECHO in previous years. Originally, the 1999 EC budget had allocated EUR330.9 million to humanitarian assistance. Yet the Kosovo crisis, persisting needs in Russia, as well as those generated by the earthquakes in Turkey, led to the addition of EUR396 million to the initial figure. Bearing in mind the pressure exerted on the EC budget, most operations in favour of ACP countries were financed with EDF resources (EUR83 million).

In 1999 ECHO's evaluation unit oversaw two major evaluations of all humanitarian operations financed by the European Union in the last eight years.

The first of those was requested by the Council of Development Ministers and covers the period January 1991 - July 1996. This evaluation confirmed the efficacy of the aid provided in spite of the enormous difficulties confronted and improvements needed.

The second evaluation was foreseen in art. 20 of the Council Regulation concerning humanitarian assistance and comprised all actions financed under that regulation since its entry into force in July 1996. This evaluation confirmed the results of the other one as regards the pertinence of ECHO's action and the efficacy of its activities, but underlined the necessity of improvements. As foreseen in the regulation, the results of this evaluation were the subject of a communication of the Commission submitted to the Council and the European Parliament (see point 2).

In addition, ECHO conducted an evaluation of humanitarian global plans implemented in 1998 and 1999 in Tanzania and Rwanda. ECHO's funding activities in Rwanda in 1998 supposed a shift from a preference for clear targeted humanitarian emergency aid to the funding of large rehabilitation and resettlements projects in the politically sensitive grey zone between relief and development in Rwanda. When compared to previous decisions the 1998 Global Plan represented the first actual occasion that ECHO's field correspondents provided a high (quality and quantity) input to its content and rationale. It thus successfully prepared for a second financial decision that year which funded many other humanitarian programmes and projects in the region.

As far as ECHO's contributions in the frame of the 1998 and 1999 Global Plans in Tanzania are concern, they helped to carry out essential assistance within the given constraints in this country. These good results are reflected by the assessment of these two Global Plans. For the first time, planning assumptions were introduced in a format that allowed for adaptation to changes and a range of potential actions were chosen on a priority basis. The chosen format also resulted in a much more concise and accessible document.

A "Manual for the evaluation of humanitarian aid", actually a revised version of the one from 1996, was also published in 1999. The new manual, conceived as a practical tool, targeted mainly all those who work in the humanitarian field, and was disseminated widely.

Finally, an analysis of the evaluations undertaken since 1996 was also carried out. The purpose sought was to better disseminate lessons learnt from the evaluations, and to create a link between evaluations and operational decisions by ECHO.

In the area of auditing, a total of 22 financial audits were conducted by ECHO in 1999. These audits concerned partners having received some 82% of ECHO's funding. In 1999 officials from ECHO's budget unit carried out 22 audit controls. The audits were carried out on both existing ECHO partners and on NGO's that had applied for partnership with ECHO.

These audits function as a two-way communications tool, by which ECHO obtains an audit opinion on its existing and potential future partners and the NGO's audited obtain guidance as to the functioning of ECHO.

By the end of 1999 ECHO had audited those of its partners that have received over 82% of ECHO's funds. The European Court of Auditors has commented favourably on the audit work completed by ECHO, but it has also called for the number of audits carried out by ECHO to be considerably increased. This is under review.

The figures in the annexes, particularly in annex 5, are those reflecting country-specific decisions. Much of ECHO funding, however, is aimed at more than one country, which explains any possible divergence between these figures and those provided in the text of the report.

For the total ECHO spending devoted to each particular country (including funding decisions affecting more than one country), please refer to the text of the report.

ANNEX 1a

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ANNEX 1b

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ANNEX 2

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ANNEX 3

OVERVIEW OF FINANCIAL DECISIONS FOR EC HUMANITARIAN AID BY SOURCE OF FINANCE 1993-1999 As per 31/12/99

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(1) First 5-year allocation under Lome IV (1991-95) was 250,000,000. The second (1996-2000) was 143.000.000 ecu. in 1999,

only Art 254/F8.

(2) In 1995, the budget chapter that corresponds to Echo becomes B7-200 instead of B7-500.

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ANNEX 4

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ANNEX 5

FINANCIAL DECISIONS FOR HUMANITARIAN AID BY REGION IN 1998 AND 1999

19981999

As per 31/12/99

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(1) Commonwealth of Independent States

(2) Apart from Iraq and Ex-URSS

ANNEX 6

EC CONTRACTS FOR HUMANITARIAN ASSISTANCE IN 1997 - 1998 - 1999 (Signature Years)

As per 31/12/99

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(1) INCLUDING NATIONAL RED CROSS ASSOCIATIONS

(2) A FULL BREAKDOWN OF ECHO PARTNERS CAN BE FOUND IN ECHO'S QUARTERLY STATISTICS

ANNEX 7

List of projects receiving financial support from ECHO's Grant Facility

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