Multi-Purpose Cash Assistance for the Most Vulnerable Households in Yemen Priority 3 and 4 Under this proposed project, the Cash Consortium of Yemen (CCY) aims to meet the critical basic needs of vulnerable conflict-affected households (HHs) through multipurpose cash-based assistance (MPCA) in Al Dhale, and Taizz districts. The provision of MPCA is designed to allow displaced people with extremely limited economic resources to meet their basic needs in a sustainable and dignified manner while reducing their reliance on negative coping mechanisms. The CCY will distribute MPCA to 1579 HHs in total. This project will complement the ongoing UNFPA Rapid Response Mechanism (RRM). The RRM will provide in-kind support to newly displaced, while ACTED and Mercy Corps will provide MPCA to ensure a more effective sequencing of aid in the emergency response. ACTED and Mercy Corps will reach 310 conflict-affected households with one-off MPCA transfers and 1269 with multi-month transfers. The transfer value will reflect the Survival Minimum Expenditure Basket (SMEB) recommendation by the national Cash and Markets Working Group. The beneficiaries will be newly displaced IDPs due to conflict, COVID-19 and natural hazards, within the RRM database and protracted displaced households including refugees, migrants, and host communities identified through CCY partner needs assessments and other inward referrals. To further strengthen the outcomes of MPCA, the implementation of this project will benefit from the technical support of the CCY Consortium Management Unit and its harmonized modalities of intervention. The CCY’s mature operational presence in areas hardest hit by the conflict, and specifically in the West Coast and Al Dhale, will allow it to rapidly identify eligible HHs in close coordination with the RRM and deliver assistance with the speed required by the current crisis. Regarding risks related to liquidity and currency fluctuations, the CCY will closely monitor the official and unofficial currency exchange rates, informing stakeholders when longer-term fluctuations will impact the financial management of the project. The CCY is currently undergoing a revision of its eligibility criteria, using focus group discussions and the participatory ranking methodology (PRM). The CCY’s working definition of vulnerability is exposure to risk (conflict-related shocks or destitution) and an inability to cope with its consequences. The proposed vulnerability model, now approved by the CCY Cash TWG, will comprise 4 components that operationalize this definition: a household vulnerability model (HVM), a Yemen Coping Strategies Index (YCSI), the Food Consumption Score (FCS) module, and an asset table. The variables and weights for the HVm and CSI, and the assets used in the HAT, will be derived during the FGD. Combined, the 4 components will provide the CCY with a broader understanding of vulnerability that will enable a more appropriate allocation of MPCA according to household needs. Households with higher HVM and CSI scores (indicating high household characteristic vulnerability and more severe coping strategy use), and Poor FCS, will be eligible for multi-month transfers.