2003 ECHO EVALUATION OF ITS FUNDING OF WFP

UNCLAS ROME 003691

SIPDIS


AIDAC

FROM U.S. MISSION IN ROME

SENSITIVE

STATE FOR PRM/P, EUR/WE, EUR/NE AND IO/EDA
USAID FOR A/AID, AA/DCHA WINTER, DCHA/FFP/D LANDIS,
DCHA/OFDA/D MCCONNELL AND AMENGHETTI
USDA/FAS FOR CHAMBLISS/TILSWORTH/GAINOR
GENEVA FOR RMA AND NKYLOH/USAID
BRUSSELS FOR USAID PLERNER AND PRM REP
USUN FOR MLUTZ

E.O. 12958: N/A
TAGS: EAID EAGR WFP UN
SUBJECT: 2003 ECHO EVALUATION OF ITS FUNDING OF WFP
ACTIVITIES (EMERGENCY INTERVENTIONS) IN AFGHANISTAN,
ERITREA, SERBIA, AND TANZANIA, 1999-2002

SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY.
NOT SUITABLE FOR INTERNET POSTING.

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Summary
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1. (U) Quest Consult's Synthesis Report of February 2003,
which was financed by the European Commission Humanitarian
Aid Office (ECHO),presents findings and recommendations
pertaining to World Food Program (WFP) emergency-related
activities (with ECHO-funding) in Afghanistan, Eritrea,
Serbia, and Tanzania for the period from 1999 through 2002.
While the report is generally positive, a number of
suggestions for further improvement are put forth. End
summary.

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Background
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2. (U) The purpose of the Quest Consult's Synthesis Report
of February 2003 funded by ECHO was to assess the impact of
WFP's programs in the named countries with regard to the
sustainability and development of durable solutions
emanating from (in whole or in part) ECHO contributions to
WFP.

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Findings
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3. (SBU) Three key areas were evaluated, namely, the food
sector, logistics system, and organizational aspects. With
regard to the food sector, the report concludes that more
analysis is required of WFP to uncover the causes of food
insecurity and malnutrition. Specifically, food needs
assessments should not only determine the question of
whether or not to provide food aid but also the diversity of
the food basket, taking into account both the nutritional,
household and food security situation - and asking whether
food aid is the most appropriate solution to the problem.
The evaluators commended the WFP Tanzania program for being
"strong in areas where WFP is often weak; it assesses from
the household level upwards; the assessments are analytical
and profound; the program is responsive to the needs of
beneficiaries." The evaluator also lauded WFP Afghanistan's
Vulnerability Assessment Mapping (VAM) operation for
integrating "an overall approach where nutritional and food
security data" are packaged together.


4. (SBU) With regard to logistics, the evaluator found that
"in all four countries, the logistics system infrastructure,
both hardware and software components, are well-chosen and
well-managed." But discrepancies were often observed between
the actual costs of procurement, international transport,
local transport, storage and ultimate distribution - and the
inevitably higher cost estimates that formed the basis of
the WFP-ECHO operational contracts. The differences clearly
indicate the need for closer WFP attention to its Landside
Transport, Storage and Handling (LTSH) matrices. At present,
as per the evaluator, the LTSH spreadsheet is used only in
the project formulation stage, when there is a project
expansion, or when projects are ultimately reviewed. The
evaluator suggests that it should also be used as an
operational tool to monitor local costs. The evaluator
concludes: "WFP does possess the management information
systems to do better." In short, WFP has to make its LTSH
budgets more accessible and transparent.


5. (SBU) Operationally, WFP needs to focus on building
better partnerships with non-governmental organizations
(NGOs). This includes making better use of NGO reports and
NGO knowledge; better joint programming and evaluations;
providing general and routine information to NGOs (and other
Implementing Partners) on pipeline projections, including

AIDAC

FROM U.S. MISSION IN ROME

SENSITIVE

STATE FOR PRM/P, EUR/WE, EUR/NE AND IO/EDA
USAID FOR A/AID, AA/DCHA WINTER, DCHA/FFP/D LANDIS,
DCHA/OFDA/D MCCONNELL AND AMENGHETTI
USDA/FAS FOR CHAMBLISS/TILSWORTH/GAINOR
GENEVA FO

timely provision of anticipated pipeline breaks.

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Other issues
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6. (SBU) The evaluators ride a couple of favorite EC
"hobbyhorses" related to their universal preference towards
local purchases and how the new Financial and Administrative
Framework Agreement between the EC and the UN should
effectively (sic) eliminate all administrative lacunae. They
also propose establishment of a WFP-ECHO Senior Technical
Group to facilitate the "outcome of the Strategic Dialogue."
They take strong exception with host governmental pressures
on the UN/WFP to "overstate" the true picture of need and
the desire to keep populations "food aid dependent."


7. (U) The evaluators give WFP high marks for its important
role in the UN-system related to the development of the
United Nations Humanitarian Air Service (UNHAS),ICT
(Information and Communications Technology) and the
establishment of the United Nations Joint Logistical Center
(UNJLC).

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Comment
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8. (SBU) This independent ECHO-funded evaluation is
welcomed. US Mission agrees that WFP is much in need of more
thorough, timely and consistent budget analysis in order to
assess the cost effectiveness of its programs in general and
the cost effectiveness of specific components in its
logistics (LTSH) system in particular. Moreover, the call
for consideration of "cash-for-work" in relatively resource-
rich areas merits further consideration. ECHO is capable of
substantively raising its support to WFP and WFP, therefore,
would be well advised to read this report very carefully.
Hall


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2003ROME03691 - Classification: UNCLASSIFIED