Identifier
Created
Classification
Origin
02ROME2673
2002-06-03 15:10:00
UNCLASSIFIED
Embassy Rome
Cable title:  

WFP POST-DELIVERY LOSSES IN BANGLADESH

Tags:  EAID EAGR AORC PREF KUNR WFP UN 
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UNCLAS ROME 002673 

SIPDIS

FROM U.S. MISSION IN ROME

STATE FOR A/S PRM, PRM/P, EUR/WE, SA/PAB AND IO/D
USAID FOR A/AID, AA/DCHA, AA/ANE, DCHA/FFP, PPC/DP, PPC/DC
UNCLASSIFIED

PAGE 02 ROME 02673 031438Z
USDA/FAS FOR MCHAMBLISS/GAINOR
GENEVA FOR RMA AND NKYLOH/USAID
BRUSSELS FOR KFULLER AND KDEBLAW
USUN FOR LSHESTACK
NSC FOR JDWORKEN

E.O. 12958: N/A
TAGS: EAID EAGR AORC PREF KUNR WFP UN
SUBJECT: WFP POST-DELIVERY LOSSES IN BANGLADESH

-------
SUMMARY
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UNCLAS ROME 002673

SIPDIS

FROM U.S. MISSION IN ROME

STATE FOR A/S PRM, PRM/P, EUR/WE, SA/PAB AND IO/D
USAID FOR A/AID, AA/DCHA, AA/ANE, DCHA/FFP, PPC/DP, PPC/DC
UNCLASSIFIED

PAGE 02 ROME 02673 031438Z
USDA/FAS FOR MCHAMBLISS/GAINOR
GENEVA FOR RMA AND NKYLOH/USAID
BRUSSELS FOR KFULLER AND KDEBLAW
USUN FOR LSHESTACK
NSC FOR JDWORKEN

E.O. 12958: N/A
TAGS: EAID EAGR AORC PREF KUNR WFP UN
SUBJECT: WFP POST-DELIVERY LOSSES IN BANGLADESH

--------------
SUMMARY
--------------


1. IN BANGLADESHI PORTS DURING 2001, WFP SUSTAINED POST-
DELIVERY LOSSES OF 2,824 METRIC TONS (VALUED AT USD
343,388). WFP HAS INSTITUTED A POLICY (CONTAINED IN ITS
2001-2005 COUNTRY PROGRAM OPERATIONAL CONTRACT WITH THE
GOB) WHICH STIPULATES THAT FOR BULK WHEAT SHIPMENTS LANDED
QUANTITIES WILL EQUAL BILL OF LADING QUANTITIES AS
CONFIRMED BY DRAFT AND LIGHTER SURVEYS. ON ENDEMIC LOSSES,
A TASK FORCE COMPOSED OF THE GOB AND FOUR MAJOR DONORS IS
UNDERTAKING A FOUR-MONTH ANALYTICAL STUDY OF THE COMMODITY
LEAKAGE PROBLEM, WITH A FINAL REPORT WITH RECOMMENDATIONS
TO REDUCE LEAKAGES DUE IN EARLY 2003. END SUMMARY.

--------------
BACKGROUND
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2. IN MAY 2001, THE WFP SECRETARIAT INFORMED OF A MAJOR
UNCLASSIFIED

PAGE 03 ROME 02673 031438Z
DIALOGUE WITH FOOD AID DONORS (U.S., CANADA, OTHERS) TO
ADDRESS THE PROBLEM OF SUSPECTED FOOD LEAKAGES TO NON-
TARGETED BENEFICIARIES THROUGH UNAUTHORIZED DISTRIBUTION
CHANNELS. WFP'S INITIAL MISGIVINGS CAME FROM A 1997 REQUEST
IT MADE TO THE INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
(IFPRI) TO CARRY OUT A PRELIMINARY STUDY TO INVESTIGATE THE
MAGNITUDE OF THE PROBLEM OF FOOD AID LEAKAGES AND DEVELOP A
MONITORING METHODOLOGY. IN 1998 A COMPREHENSIVE FOOD
COMMODITY TRACKING SYSTEM APPRAISAL WAS CARRIED OUT. IN
1999, THE WFP COUNTRY OFFICE ESTABLISHED A FOOD TRANSPORT
AND STORAGE MONITORING UNIT. SINCE THEN, EFFORTS HAVE BEEN
MADE TO INFORM VULNERABLE GROUP AND EMERGENCY OPERATION
BENEFICIARIES, AS WELL AS THE PUBLIC AT LARGE, OF THEIR
RIGHTS AND ENTITLEMENTS RELATED TO RATIONS.


3. IN 2001, WITH THE ASSISTANCE OF THE GERMAN AGENCY FOR
TECHNICAL COOPERATION (GTZ),THE WFP COUNTRY OFFICE
DESIGNED A MONITORING AND EVALUATION (M&E) SYSTEM, WHICH
WFP HAS REPORTEDLY INTRODUCED ON A SYSTEMATIC BASIS IN ALL
ITS ACTIVITIES. SIX SUB-OFFICES HAVE BEEN ESTABLISHED USING
31 FIELD MONITORS. IN THE VULNERABLE GROUP DEVELOPMENT
ACTIVITY, THE FIRST THREE OF A PLANNED FORTY WHEAT FLOUR
MILLING AND FORTIFICATION PLANTS BEGAN OPERATING IN MARCH
2002, PROVIDING FORTIFIED WHEAT FLOUR TO BENEFICIARIES IN
SEALED BAGS, THUS REDUCING THE RISK OF LEAKAGE.

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PORT LOSSES
--------------


4. WFP HAS ENGAGED ON A TEMPORARY BASIS A PORT CAPTAIN WHO
UNCLASSIFIED

PAGE 04 ROME 02673 031438Z
HAS RECOMMENDED THAT WFP ONLY USE ONE DISCHARGE PORT IN
FUTURE (CHITTAGONG),AND EMPLOYMENT OF COASTAL LIGHTERS TO
FORWARD FREIGHT NEEDED IN MONGLA PORT. LIMITING THE USE OF
MONGLA IS DUE TO PAST SIGNIFICANT LOSSES EXPERIENCED WITH
BULK WHEAT, OWING MAINLY TO WASTAGE DURING LIGHTERING OF
BULK COMMODITIES FROM LARGE VESSELS.

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COMMENT
--------------

5. EVERY CASE OF COMMODITY HEMORRHAGING IN TODAY'S
CONSTRAINED BUDGETARY ENVIRONMENT HAS TO BE SWIFTLY AND
VIGOROUSLY ADDRESSED. SUSPECTED FOOD LEAKAGES BOTH IN
BANGLADESHI PORTS AND TO NON-TARGETED BENEFICIARIES THROUGH
UNAUTHORIZED DISTRIBUTION CHANNELS HAVE CONSTITUTED A LONG-
TERM PROBLEM FOR THE WFP PROGRAM. IT IS EXPECTED THAT THE
WFP-DONOR STUDY WILL INDUCE THE GOVERNMENT OF BANGLADESH TO
TAKE THE REMEDIAL ACTIONS NECESSARY TO EFFECTIVELY END
LOSSES ASSOCIATED WITH WFP EFFORTS IN BANGLADESH. HEILEMAN

UNCLASSIFIED

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2002ROME02673 - Classification: UNCLASSIFIED