FAO EMERGENCY PROGRAMS: INFORMAL DONORS'

UNCLAS ROME 00315

SIPDIS

FROM THE U.S. MISSION TO THE UNITED NATIONS AGENCIES IN
ROME

STATE FOR IO/EDA SKOTOK
USAID FOR DCHA, OFDA GOTTLIEB, MLUTZ, MBBRENNAN, MMARX
AND LPOWERS; FFP JDWORKEN
USDA FOR FAS HUGHES
USUN NEW YORK FOR TMALY
GENEVA FOR NKYLOH/USAID
BRUSSELS FOR PLERNER

E.O. 12958: N/A
TAGS: EAID EAGR ECON SENV UN FAO
SUBJECT: FAO EMERGENCY PROGRAMS: INFORMAL DONORS'
BRIEFING

REF: (A) 04 ROME 1370; (B) 04 ROME 2298; (C) 05 ROME
0764; (D) 05 ROME 0877; (E) 05 ROME 1142; (F) 05 ROME
2979; (G) 05 ROME 3320; (H) 05 ROME 3976; (I) 05 ROME
3949; (J) 06 ROME 0087; AND (K) 06 ROME 0000


1. Summary and Background. On January 25, 2006, the Food
and Agriculture Organization (FAO) Emergency Operations
and Rehabilitation Division (TCE) held an informal
donors' meeting to provide an overview of 2005 activities
and special requirements for 2006. Recently appointed
TCE Assistant Director General Tecle Tesfai chaired the
session while TCE Director Anne Bauer and her staff
provided overviews on TCE operations in 2005, including
in Tsunami-affected areas, Africa and special programs in
Somalia, the West Bank and Gaza Strip, and Iraq. In
addition, Animal Production and Health Division (AGA)
Director Samuel Jutzi provided an update on FAO's
response to the Avian Influenza emergency. Lastly, a
member of FAO's Food Security and Agricultural Projects
Analysis Services (ESAF) briefed on FAO projects to
improve food security analysis and action in emergencies.
End Summary.


2. FAO entered the emergency operations arena in 1973
when it responded to the drought in the Sahel. Over the
next 20 years, FAO's expertise in humanitarian assistance
coordination spread out to crises around the world. In
2002 the emergency coordination unit evolved into a
division: the Emergency Operations and Rehabilitation
Division (TCE). In 2004, funding for emergencies reached
the highest level ever when TCE delivered $128 million in
assistance and raised some $230 million to carry out
multi-year programs in over 70 countries worldwide. In
2005, TCE delivered $163 million in assistance by year's
end and received $170 million in contributions.
Currently in 2006, TCE's operational portfolio values
over $350 million, covering 300 projects in over 70
countries and regions. End Summary and Background

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Donor Confidence and Increasing Contributions
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3. In his introductory overview, recently appointed TCE
Assistant Director General (ADG) Tesfai Tecle stated that
TCE activities increased both in scope and depth in 2005,
and FAO played a key role among UN agencies and field
partners in emergencies. Although many African countries
still remain affected by complex emergencies, Tecle
stated there are signs of emerging progress in Sudan and
the Democratic Republic of the Congo (DRC). FAO's relief
and rehabilitation assistance, which is no longer limited
to providing seeds and tools, not only rebuilds
livelihoods but helps to bolster peace and stability in
these countries. The outcome of last year's activities
led to the provision of more recovery assistance,
improved response mechanisms and management, including
improved financial tracking and accountability, and a
better understanding of the root causes of vulnerability.
The growing level of donor contributions to TCE in 2005
is a sign of growing confidence in FAO's abilities.


4. Tecle emphasized that FAO is recognized as a key
source of information on food security and nutrition
issues, and the organization is closely collaborating
with partners such as WFP on vulnerability and assessment
mapping and UNHCR on reintegration programs for refugees
and internally displaced persons (IDPs). Discussions are
underway for expanded collaboration with ILO, UNDP and
other NGOs.


5. TCE Director Anne Bauer informed donors that FAO's
expertise in farming, livestock, fisheries and forestry
is its comparative advantage and crucial to emergency
response and rehabilitation efforts. Although FAO does
not provide food aid, its assistance complements food
aid, promoting an early exit from it. FAO's ability to
harness know-how and coordinate other UN and NGO partners
in the agriculture and food security sectors is key, as
FAO often works as an intermediary between recipient
governments and these partners to avoid overlaps and gaps
in agricultural relief.


6. Bauer reported that TCE's delivery of assistance
services increased over the past few years. TCE
delivered $128 million in assistance in 2004 and $163
million in 2005. Donor contributions have also been
trending upwards. In 2004, TCE received $210 million
from donors and $20 million from FAO's Technical
Cooperation Program (TCP) for a total of $230 million.
In 2005, TCE received $170 million in contributions,
including over $6 million from FAO's TCP. (Note: The
U.S. has been a contributor to FAO's emergency programs
since 1998. From 2002-2004, the U.S. contributed between
$4 million and $8 million annually. In 2005, U.S.
donations surpassed $20 million. End Note) New donors
contributing less than $1 million include Portugal,
Luxembourg, Greece, China, and Australia. Worldwide, TCE
is currently operating a budget of approximately $350
million, covering over 300 projects in over 70 countries
and regions, representing 40 percent of the total of FAO
field programs' portfolio.

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The 2004-2005 Desert Locust Campaign
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7. Bauer reported that FAO mobilized $80 million from 27
donors to counter an upsurge of desert locusts in North
and West Africa in 2004. Of the total mobilized, $56
million has been spent, with most control inputs being
delivered in 2004. In 2005 the emphasis shifted toward
locust monitoring, control and environmental-related
activities, and a marked decline in desert locust
populations at the end of 2005 has led to the phasing out
of operations in 2006. Many donors agreed to reallocate
much of their unspent funds to environmental programs,
including pesticides drum disposal and the establishment
of a proper pesticide management program. Lastly, Bauer
indicated that a donor-led independent evaluation of the
2004-2005 desert locust campaign began in November 2005,
the results of which will be reported at the Desert
Locust Control Committee (DLCC) meeting being held May
16-19, 2006, in Rome.

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Increase in Overhead
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8. Bauer stated that the increasing scope and complexity
of TCE interventions led to some financial changes. In
responding to an emergency, TCE relies on the services of
FAO's administrative, finance and legal offices, but the
reduction in FAO's regular program budget impacted all
divisions, and TCE's increasing demand for services can
no longer be met without reimbursement. Thus, during the
110th Session in September 2005, the FAO Finance
Committee, one of its governing bodies, reviewed TCE
support cost policy and endorsed an increase from 6.5 to
10 percent of the rate for TCE projects to cover the
costs incurred by FAO central support services (e.g.,
procurement, finance, personnel, legal, etc.). The 3.5
percent increase was based on a 2004 FAO cost study,
which indicated that a 10 percent ceiling is required to
recover variable indirect support costs from TCE
activities. Bauer assured PermReps present that this
rate will be reviewed regularly, and asked them to help
explain this increase to capitals.


9. Bauer also stated that FAO's capacity to deal rapidly
with an emergency has been enhanced by the Special Fund
for Emergency and Rehabilitation Activities (SFERA).
SFERA was established in April 2004 and provides FAO with
the flexibility and financial means to react promptly to
crises before donor funds are actually received by FAO.
She thanked the increasing number of donors who
contributed to the SFERA, including Norway, Finland,
Canada, Germany, the United Kingdom, Switzerland, France,
and the U.S. (Note: The U.S. earmarked funds for Avian
Influenza activities. End Note)

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Avian Influenza Activities
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10. Samuel Jutzi, Director, Animal Production and Health
Division (AGA),provided a brief update on developments
in the response to Avian Influenza since FAO's last
informal briefing to donors on September 1, 2005, (reftel
Rome 2979):

A) With geographical expansion outside of Asia, the
Highly Pathogenic Avian Influenza (HPAI) virus is now
firmly entrenched in Ukraine, Romania and Turkey. FAO
initiated five TCPs outside of Asia, with Budapest being
the site for Eastern Europe, Bamako for West Africa,
Nairobi for East Africa, and Cairo the site for both
North Africa and the Near East. Jutzi noted that if HPAI
is detected in Africa, donors and governments must act
quickly to bolster already weak veterinary networks.

B) David Nabarro, UN Coordinator for Avian Influenza
activities, has been instrumental in coordinating
activities between the UN agencies and other partners.
In November 2005, FAO co-sponsored a meeting in Geneva
with OIE, WHO and the World Bank to review progress made
and identify financial needs and coordination mechanisms.
Most recently, a donor pledging conference was held in
Beijing, where donors pledged $1.9 billion in assistance.
In preparation for Beijing, FAO developed a Global
Program for Avian Influenza Control and Eradication,
which encompasses global and regional action; support to
infected countries' control activities; assistance to
countries at risk; and immediate support for a newly
infected country.


11. To date, FAO has received a total of $29 million in
contributions from Australia, France, Germany, Japan,
Norway, Switzerland, the Netherlands, the U.S. and its
own TCP funds. FAO reports it will require an additional
$100 million, noting shortfalls of $35 million for global
and regional programs and $65 million for country
specific activities.


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2005 TCE Outputs
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12. Tsunami: Accomplishments include the deployment of
over 70 FAO experts to provide fishery and fish
processing assistance to over 2,000 households and
support on income-generating activities to over 30,000
households in Indonesia. FAO provided both technical
assistance and direct assistance through training on
cash-for-work initiatives, boat building, saltwater
damage and coastal planning, all under the "build back
better" theme. A joint report by the UN, the UK's
Department for International Development (DfID) and the
World Bank appreciated FAO's role, and the American Red
Cross recently approached FAO to begin collaborating in
ongoing relief activities. TCE staff indicated FAO will
need an additional $47.5 million over the next two years
for ongoing rehabilitation work in many countries,
including Yemen, which has been largely forgotten by
donors.

13. Africa: Overall, TCE activities supported 200,000
beneficiaries, 500 training workshops, and the
distribution of 200 000 tools and 253.5 tons of seeds.
In Sudan, FAO assisted 160,000 households in the south
and Darfur to rebuild livelihoods, and worked with the
European Commission to formulate a $100 million food
security project. In Niger, FAO established an emergency
coordination unit (ECU); however, with the backing of
only one donor, FAO had to use TCP funds to supplement
the ECU. Lastly, in Southern Africa, FAO strengthened
its information activities, developed a monitoring and
evaluation framework for emergencies and, under the new
UN humanitarian reform clusters framework, began
implementing many programs jointly with UN partners such
as UNICEF. In 2006, it plans to bolster its Nairobi
office with food security specialists to monitor and
identify issues relating to the drought.

14. Special Programs: The current portfolio of the
Special Emergency Programs Service (TCES) includes Iraq,
Somalia, West Bank and Gaza Strip and North Korea.
Beginning in February, Sudan will be added to the
portfolio. For Somalia, FAO appointed a Nairobi-based
joint FAO Officer-in-Charge/Emergency Coordinator in May

2005. For the West Bank and Gaza Strip, FAO provided
agricultural inputs and equipment; training on pest
management, cultivation techniques, dairy farming and
horticulture production; and is contributing to the
establishment of a multi-sectoral Food Insecurity and
Vulnerability Information and Mapping System (FIVIMS).
For Iraq, TCES provides assistance through the UN
"Clusters" framework to restore community irrigation
schemes and water supply, support veterinary and
livestock services (pleading for $6 million for the
control of the animal disease brucellosis),and to
promote cottage industries. TCES staff noted their unit
has made progress in mobilizing non-traditional sources
of donor funding for its programs, for example, from
church groups in Kenya and from a well-known Italian
supermarket chain.


15. A member of FAO's Agricultural and Development
Economic Division gave a brief overview of Food Security
Information for Action program and how it is applied to
emergencies. FAO has been asked to be more involved in
food security interventions and information and analysis
systems. This is mainly being driven by a) the Good
Humanitarian Donorship Initiative (GHDI); b) current FAO
collaboration with donors on food security, for example
the European Commission, which is funding projects to
obtain country-level information in 20 countries, and the
Netherlands, whose partnership with FAO is leading to UN-
based programming; and c) the need to improve FAO
response frameworks to emergencies, as mandated by the
FAO Strategic Framework, 2000-2015. In 2005, food
security information gathering activities were conducted
in partnership with TCE in Angola, Afghanistan, Eritrea,
Mozambique, Somalia; in 2006, these activities will
expand to Ethiopia, Sudan (North and South),West Bank
and Gaza Strip. FAO and WFP are working together on food
security analysis/assessment methodologies and plan to
hold a joint workshop in April 2006 in Nairobi. FAO
hopes to host an international workshop on same in June

2006.

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2006 FAO Appeals
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16. FAO is requesting over $96 million in funding through
the United Nations Consolidated Appeals Process (CAP) to
support food security activities in 14 countries and
regions. In Africa, FAO's appeals total $86.8 million
including $33.2 million for Zimbabwe, $10.4 million for
Burundi and $7.8 million for Liberia. (Note: in 2005,
FAO launched 12 CAPs for Africa totaling $157 million;
donors responded with $66 million in contributions or 42
percent. End Note) Outside of Africa, FAO's CAP
components include $6.4 million to improve the
livelihoods of fisherman in the West Bank and Gaza Strip,
and $2.9 million to strengthen disrupted livelihoods in
Nepal.


17. Under the UN Flash Appeal for Pakistan, FAO is
requesting $25 million to restore livelihoods by
providing seeds, fertilizer, tools, and fodder as well as
spot repair of small-scale irrigation canals and roads.
FAO has already provided emergency assistance through its
own funds, delivering 200 tons of seed and 200 tons of
fertilizer for the winter season. Currently, only Canada
has confirmed a substantial contribution to FAO's work in
Pakistan, although negotiations are ongoing with others.


18. FAO's component of the UN Flash Appeal for Ethiopia
is $18 million for a broad range of agricultural relief
and rehabilitation projects. Meanwhile, FAO and other UN
and partners are currently finalizing a plan of action
for the DRC. The plan should be released on February 13,
with FAO seeking $50 million. Lastly, FAO joined the UN
and other partners to develop the 2006 Work Plan for
Sudan, for which FAO is seeking $40 million. More
information on FAO's component of the 2006 Work Plan for
Sudan can be found at:
http://www.fao.org/reliefoperations/app_sudan _intro_en.as
p.

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Donor Response
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19. The United Kingdom Ambassador reiterated DfID's
appreciation for FAO's work in the Tsunami, noting it was
a job well done thus far. He then questioned whether a)
FAO can reprogram its own funds for Avian Influenza in
order to reach the $100 million appeal; b) FAO would be
willing to accept other technical assistance if donor
governments are unable to provide funds, since the number
FAO staff working on Avian Influenza activities is
limited; and c) FAO can really manage such a large
program. ADG Tecle responded that the FAO TCP monies
have a $400,000 limit per project, according to
regulations, and there is no possibility to reprogram
more without a new ruling by the governing body and
donors. AGA Director Jutzi welcomed technical expertise
and assistance from donors in addition to cash. And TCE
Director Bauer stated that FAO managed successfully the
$700 million Iraq Oil-for-Food program over five years.


20. The European Commission Ambassador requested a
clarification on SFERA and whether there was duplication
of effort on Avian Influenza funding and activities
within the UN system. Bauer responded that SFERA is used
as a vehicle to jumpstart Avian Influenza projects for
donors to earmark funds thereby avoiding the lengthy
approval process of a formal project document. Jutzi
stated his division supports the use of SFERA because it
allows flexibility in programming. Lastly, Tecle stated
there is no duplication of effort on Avian Influenza
activities globally as FAO and its partner agencies have
set up a global strategy to ensure no overlap (for
example, FAO concentrates on early warning systems,
wildlife research, vaccinations, etc).


21. Norway reacted negatively to the TCE support cost
increase from 6.5 to 10 percent, noting it was an overall
increase of 47 percent. For an emergency the size of the
Tsunami it is understandable, but not for small emergency

SIPDIS
projects, the PermRep noted. Bauer replied that the
comparison of emergencies is not fair as there are
economies of scale, and the increase was warranted
because member states were not willing to pay for
services rendered at headquarters via assessed
contributions. She explained that, until now, these
services had been rendered free of charge to TCE, but
this can no longer continue due to staff cuts. Tecle
stated that the original 6.5 percent fee was an
underestimation.


22. The Netherlands Ambassador encouraged FAO to engage
in more frequent donor consultations, especially as they
relate to improving humanitarian assistance and reform.
On Avian Influenza, the Ambassador was pleased to hear
FAO would accept technical expertise, as he was having
difficulty in leveraging funds from The Hague on a
largely animal health emergency. Lastly, the Netherlands
questioned whether FAO saw some of the humanitarian
reform processes alluded to in the presentations as
threats or opportunities. Bauer responded that TCE
welcomed continuous dialogue on humanitarian reform
processes, especially the clusters approach, noting it
was not an easy issue to pinpoint as it is applied
differently in each country. Bauer is FAO's
representative at all IASC and OCHA reform meetings, and
all FAO offices, including regional offices, are
solicited for contributions to the discussions on reform.


23. Canada asked when FAO would move to a consolidating
reporting system under SFERA (the Netherlands
subsequently echoed, suggesting FAO employ WFP's
reporting system),and expressed concern over the
inflation of the Avian Influenza emergency, questioning
whether it is really a humanitarian emergency. Bauer
explained that TCE already issues project reports to
donors individually, however, a consolidated system can
be deployed at an increased cost. Jutzi replied that
work on Avian Influenza goes beyond emergency and into
capacity building as veterinary services are being
strengthened, therefore, using the emergency gateway is
justified to reduce future emergency preparations.
Lastly, humanitarians are dialoguing to ensure it does
not become a human pandemic. A TCE staff member stated
that the American Red Cross indicated to FAO Avian
Influenza is one of their top priorities for 2006.


24. USMISSION UN Rome will continue to disseminate widely
information on FAO's emergency operations.

CLEVERLEY