WFP's evolving partnership with U.S. Private

1. WFP has provided an update on its evolving partnership
with U.S. Private Voluntary Organizations (PVOs) and
International non-governmental organizations (NGOs) of U.S.
origin. Since the Baltimore meeting of December 3, 2002
between WFP Executive Director Jim Morris and U.S. PVOs
(members of the Food Aid Coalition), considerable progress
has been made. In 2002, of WFP's food volume (3.4 million
tons) moved worldwide, WFP's five major US PVO partners
moved more than 1.3 million tons (38 percent). Moreover, the
43 U.S. PVOs currently working with WFP represent
approximately 25 percent of WFP's international partners.
Representatives of US PVOs with a global Memorandum of
Understanding (MOU) with WFP, regularly participate in WFP's
annual consultation with NGOs as well as in ad hoc
consultations, workshops or other technical meetings
organized by WFP Rome. Further, more frequent dialogue with
WFP Rome, mainly with the NGO Unit of the Division of
External Relations, and WFP Washington is taking place
throughout the year. US Mission is excited by the progress
towards a "deeper relationship" between WFP and its U.S.
partners, including our "faith-based" organizations. End
summary.



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Background


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2. WFP currently collaborates with about 1200 NGOs, more
than 1000 local NGOs and nearly 200 international NGO
partners. US PVOs or international PVOs of US origin are
the largest group of international partners. The 43 US PVOs
currently working with WFP represent 25 percent of WFP's
international partners.



3. In 2002, of WFP's food volume (3.4 million tons) moved
worldwide, WFP's five major US PVO partners moved more than
1.3 million tons (38 percent). The major US PVO partners of
WFP are: Adventist Development and Relief Agency (ADRA),
CARE, Catholic Relief Services (CRS), World Vision, and Save
the Children US. WFP signed global Memorandum of
Understanding on Collaborative Working Arrangements with all
of them in the mid nineties. At country level, standard
agreements with 43 PVOs are presently operational on a
project-by-project basis.



4. The highest concentration of collaboration over recent
years has been in East and Central Africa as well as Asia
(in Afghanistan, WFP collaborates with 17 U.S. PVOs). The
most intense relationship has primarily been in execution of
Emergency Operations (EMOPs) or Protracted Relief and
Recovery (PRRO) Operations, as recently experienced in
Southern Africa. WFP increasingly collaborates with NGOs at
the project planning stage as well as throughout project
implementation.



5. Representatives of US PVOs with a global MOU with WFP,
regularly participate in WFP's annual consultation with NGOs
as well as in ad hoc consultations, workshops or other
technical meetings organized by WFP Rome. Further, more
frequent dialogue with WFP Rome, mainly with the NGO Unit of
the Division of External Relations, and WFP Washington is
taking place throughout the year. It is noted in particular
that World Vision and WFP have been in serious and sustained
dialogue to move toward the "next generation" of WFP-NGO
MOU.



6. In addition, WFP relates to three US PVO
Networks/Umbrella Organizations: Food Aid Coalition, Food SECTION 02 OF 03
ROME 005224

AIDAC

FROM U.S. MISSION IN ROME

USAID FOR A/NATSIOS, AA/DCHA WINTER, D/DCHA/FFP LANDIS
STATE FOR A/S IO HOLMES, A/S PRM DEWEY, IO/EDA RBERHEND AND
SKOTOK
USDA/FAS FOR MCHAMBLISS AND BGAINOR
NSC FOR

Aid Management (USAID-supported) and InterAction. All of
WFP's major U.S. PVO partners are members of the three
entities. The Food Aid Coalition, mainly, an advocacy
network of 15 U.S. PVOs in the area of food aid, met with
WFP Executive Director Jim Morris twice over the past year
(in December 2002 in Baltimore and in April 2003 in Kansas
City).



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"The Baltimore Declaration: Africa in crisis"


--------------------------





7. Following the meeting in Baltimore, WFP and the members
of the Food Aid Coalition launched a coordinated global
campaign to assist more than 34 million people at risk of
starvation in Africa. The leaders unveiled "The Baltimore
Declaration: Africa in Crisis," a unified pledge of the non-
governmental organizations and WFP to act in an effort to
prevent famine from taking hold in parts of southern,
eastern and western Africa. The Declaration also appealed
to "governments, citizens' groups, private voluntary
organizations, religious institutions and individual
citizens to recognize the enormity of the crisis confronting
Africa and to join in a massive and urgent response."



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The "thorny" issue of cost recovery


--------------------------





8. In many emergency operations, WFP asks its NGO partners
to move the food assistance from a regional or zonal level
(extended delivery point) to the village or refugee camp
(the final distribution level) and be responsible for the
distribution to the designated beneficiary. Costs are
invariably incurred by the NGO in carrying out this task.
The PVOs asked that better guidance be provided at field
level with regard to payment of PVOs. After extensive
consultations, a new standard field level agreement is in
the process of finalization.



9. A key element (still in draft discussion) will be prompt
and up-front payment by WFP to the NGO for a substantive
percentage of their anticipated internal transport, shipping
and handling costs. Specifically, the following is proposed:
a) WFP commitment to settle NGO invoices within 45-90 days,
and if there are queries, pay 75 percent and settle the
balance as soon as an explanation is received; b) WFP
agreement to pay 3 months or 30 percent advance against an
estimated support budget of an NGO; c) WFP commitment to
release funds faster than before and to allow NGO advances
to be treated and processed in the same way as advances
against WFP operations; d) agreement to cover NGO costs in
case of pipeline breakdowns, and a system of giving notice
of termination when resources fail to materialize and/or
when changes in the operation require earlier termination;
and e) schedules for NGO budget submissions to WFP that show
time-bound (fixed) and tonnage-bound (variable) costs,
allowing a better projection of NGO costs and more equitable
recovery (from the WFP) system. Note. Once these draft-
revised guidelines are finalized (hopefully in time for the
next WFP-NGO consultation scheduled for December 10-12),
they will be reported septel. End note.



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Comment


--------------------------





10. US Mission is excited by the positive movement towards a
"deeper relationship" between WFP and its U.S. partners,
including our "faith-based" organizations. As WFP's lead in
this dialogue, Deputy Executive Director Sheila Sisulu has
brought both dynamism and vision to a potentially big "win-4

AIDAC

FROM U.S. MISSION IN ROME

USAID FOR A/NATSIOS, AA/DCHA WINTER, D/DCHA/FFP LANDIS
STATE FOR A/S IO HOLMES, A/S PRM DEWEY, IO/EDA RBERHEND AND
SKOTOK
USDA/FAS FOR MCHAMBLISS AND BGAINOR
NSC FOR JDWORKEN
USMISSION GENEVA

win" situation. On the U.S.-side, World Vision, CARE and
Save the Children US are equally keen to make this "truer
partnership" work. And as it succeeds, it will be the hungry
poor around the world who will benefit the most. Hall


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2003ROME05224 - Classification: UNCLASSIFIED