Document of

The WorldBank

FOR OFFICIALUSEONLY

Report No:PAD2425

INTERNATIONAL DEVELOPMENT ASSOCIATION

Project Appraisal Document

ON

PROPOSED GRANTs from THE ida crisis response window

IN THE AMOUNT OF

sdr21.9 million (US$30 Million equivalent)

TO THE

fOOD AND AGRICULTURAL ORGANIZATION OF THE UNITED NATIONS

AND

IN THE AMOUNT OF

sdr14.6 million (US$20 Million equivalent)

TO THE

iNTERNATIONAL COMMITTEE OF THE RED CROSS

FOR A

SOMALIA EMERGENCY DROUGHT RESPONSE AND RECOVERY PROJECT

MAY 22, 2017

Social, Urban, Rural and Resilience Global Practice

Africa Region

CURRENCY EQUIVALENTS
(Exchange Rate Effective Apr 30, 2017)
Currency Unit = / USD
0.72938396 = / US$1
US$1.37102 = / SDR 1
FISCAL YEAR
January 1 - December 31
ABBREVIATIONS AND ACRONYMS
AfDB / African Development Bank
APA / Alternative Procurement Arrangement
AML / Anti-Money Laundering
ATF / Anti-Terrorism Financing
AWD / Acute Watery Diarrhea
BENALPA / Benadir Livestock Professional Association
CAHW / Community Animal Health Worker
CERELPA / Central Regions Livestock Professional Association
CIG / Common Interest Group
CIP / Public Sector Capacity Injection and Institutional Strengthening
CMWG / Cash and Markets Working Group
CRW / Crisis Response Window
CSSD / Corporate Support Services Department
DFID / Department for International Development
EcoSec / Economic Security
EHI / Essential Household Item
ENDVI / Enhanced Normalize Difference Vegetation Index
ESMF / Environmental and Social Management Framework
ESMP / Environmental and Social Management Plans
EU / European Union
FAO / Food and Agriculture Organization of the United Nations
FCV / Fragility, Conflict and Violence
FEWS NET / Famine Early Warning System Network
FGS / Federal Government of Somalia
FM / Financial Management
FMFA / Financial Management Framework Agreement
FMT / Form Management Tool
FPA / Fiduciary Principles Accord
FPMIS / Financial Programs Management Information Systems
FSNAU / Food Security and Nutrition Analysis Unit
FY / Fiscal Year
GBV / Gender-Based Violence
GDP / Gross Domestic Product
GFDRR / Global Facility for Disaster Reduction and Recovery
GOC / General Objective Code
GRM / Grievance Redress Mechanism
HIPC / Heavily Indebted Poor Countries
HH / Household
IBRD / International Bank for Reconstruction and Development
ICRC / International Committee of the Red Cross
ICT / Information and Communication Technology
IDA / International Development Association
IDP / Internally Displaced People
IEG / Independent Evaluation Group
IFC / International Finance Corporation
IFR / Interim un-audited Financial Report
IFRC / International Federation of the Red Cross
IFRS / International Financial Reporting Standards
IMF / International Monetary Fund
INS / Interim Strategy Note
IOM / International Organization for Migration
IP / Indigenous Peoples
IPC / Integrated Food Security Phase Classification
ISP / Implementation Support Plan
ISR / Implementation Status Report
M&E / Monitoring and Evaluation
MCH / Mother and Child Health
MPF / Multi-Partner Fund
NDP / National Development Plan
NFI / Non Food Items
NGO / Non-Governmental Organization
NPV / Net Present Value
ORD / Oral Rehydration Salts
OIG / Office of the Inspector General
OTP / Outpatient Therapeutic Program
PDO / Project Development Objective
PFM / Public Financial Management
PHC / Primary Health Care
PLW / Pregnant and Lactating Women
PPR / Peste des petits ruminants
PPSD / Project Procurement Strategy for Development
PSEA / Protection Against Sexual Exploitation and Abuse
PSP / Payment Service Provider
RDNA / Rapid Drought Needs Assessment
RCRF / Recurrent Cost & Reform Financing
RMU / Risk Monitoring Unit
SAP / Safeguards Action Plan
SBCF / Somalia Business Catalytic Fund
SCD / Systematic Country Diagnostic
SCoA / Standard Chart of Account
SCORE / Somalia Core Economic Institutions and Opportunities Program
SCZ / South Central Zone
SEDRP / Somalia Emergency Drought Response and Recovery Project
SGP / Sheep and Goat Pox
SME / Small and Medium-sized Enterprises
SOWELPA / South West Livestock Professional Association
SP / Service Provider
SORT / Systematic Operations Risk Rating Tool
SRCS / Somali Red Crescent Society
SURRP / Somalia Urban Resilience and Recovery Project
SWALIM / The Somalia Water and Land Information Management
TA / Technical Assistance
TPTR / Third-Party Technical Review
TWG / Technical Working Group
ToR / Terms of Reference
UN / United Nations
UGMH / United Nations Global Marketplace
UN HABITAT / The United Nations Human Settlements Programme
UN OCHA / The United Nations Office for the Coordination of Humanitarian Affairs
UNDP / United Nations Development Programme
UNICEF / The United Nations Children's Fund
USAID / United States Agency for International Development
WASH / Water, Sanitation and Hygiene
WB / World Bank
WBG / World Bank Group
WDR / World Development Report
WFP / World Food Programme
WHH / Women Headed Households
WHO / World Health Organization
/ The World Bank
Somalia Emergency Drought Response and Recovery Project (P163830)
Page 1 of 110
/ The World Bank
Somalia Emergency Drought Response and Recovery Project (P163830)
BASIC INFORMATION
Is this a regionally tagged project? / Country(ies) / Financing Instrument
No / Investment Project Financing
[✔] Situations of Urgent Need of Assistanceor Capacity Constraints
[✔] Financial Intermediaries
[ ] Series of Projects
OPS_BASICINFO_TABLE_3
Approval Date / Closing Date / Environmental Assessment Category
30-May-2017 / 29-Jun-2018 / B - Partial Assessment
Bank/IFC Collaboration
No
Proposed Development Objective(s)
The Project Development Objective is to address the immediate needs of the drought affected people within the territory of the Federal Republic of Somalia, and support resilient recovery through the provision of livelihood opportunities and the restoration of agricultural and pastoral production.
Components
Component Name / Cost (US$, millions)
Component 1: Programmatic Support to ICRC for Immediate Drought Response / 20.00
Component 2: Programmatic Support to FAO for Immediate Drought Response and Recovery / 30.00
Organizations
Borrower : / International Committee of the Red Cross (ICRC) HQ (Grantee)
Food and Agriculture Organization of the United Nations (Grantee)
Implementing Agency : / Food and Agriculture Organization of the United Nations - Somalia (Supported Agency)
International Committee of the Red Cross (ICRC) - Somalia Delegation (Supported Agency)
Safeguards DeferralOPSTABLE
Will the review of safeguards be deferred?
[✔ ] Yes [ ] No
PROJECT FINANCING DATA (IN USD MILLION)
FIN_TABLE_DATA
[ ]Counterpart Funding / [ ] IBRD / [ ] IDA Credit
[ ] Crisis Response Window
[ ] Regional Projects Window / [✔] IDA Grant
[✔] Crisis Response Window
[ ] Regional Projects Window / [ ]Trust Funds / [ ]Parallel Financing
FIN_COST_OLD
Total Project Cost: / Total Financing: / Financing Gap:
50.00 / 50.00 / 0.00
Of Which Bank Financing (IBRD/IDA):
50.00
Financing (in US$, millions)
FIN_SUMM_OLD
Financing Source / Amount
IDA Grant / 50.00
Total / 50.00
Expected Disbursements (in US$, millions)
Fiscal Year / 2017 / 2018
Annual / 0.00 / 0.00
Cumulative / 0.00 / 0.00
INSTITUTIONAL DATA
Practice Area (Lead)
Social, Urban, Rural and Resilience Global Practice
Contributing Practice Areas
Agriculture
Climate Change
Health, Nutrition & Population
Water
Climate Change and Disaster Screening
This operation has been screened for short and long-term climate change and disaster risks
Gender Tag
Does the project plan to undertake any of the following?
a. Analysis to identify Project-relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF
Yes
b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment
Yes
c. Include Indicators in results framework to monitor outcomes from actions identified in (b)
Yes
SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)
Risk Category / Rating
1.Political and Governance / High
2.Macroeconomic / Low
3.Sector Strategies and Policies / Low
4.Technical Design of Project or Program / Moderate
5.Institutional Capacity for Implementation and Sustainability / Substantial
6.Fiduciary / High
7.Environment and Social / Moderate
8.Stakeholders / Moderate
9.Other
10.Overall / Substantial
COMPLIANCE
Policy
Does the project depart from the CPF in content or in other significant respects?
[ ] Yes [✔] No
Does the project require any waivers of Bank policies?
[✔] Yes [ ] No
Have these been approved by Bank management?
[✔] Yes [ ] No
Is approval for any policy waiver sought from the Board?
[✔] Yes [ ] No
Safeguard Policies Triggered by the Project / Yes / No
Environmental Assessment OP/BP 4.01 / ✔
Natural Habitats OP/BP 4.04 / ✔
Forests OP/BP 4.36 / ✔
Pest Management OP 4.09 / ✔
Physical Cultural Resources OP/BP 4.11 / ✔
Indigenous Peoples OP/BP 4.10 / ✔
Involuntary Resettlement OP/BP 4.12 / ✔
Safety of Dams OP/BP 4.37 / ✔
Projects on International Waterways OP/BP 7.50 / ✔
Projects in Disputed Areas OP/BP 7.60 / ✔
Legal Covenants
Sections and Description
Within 30 days from effectiveness date, FAO shall prepare, in accordance with terms of reference acceptable to the Association, an Environmental and Social Management Framework (“ESMF”), including a Pest Management Plan (“PMP”); and adopt such ESMF as shall have been approved by the Association and publish the ESMF in a manner acceptable to the Association.
Conditions
Type / Description
Disbursement / No withdrawal shall be made for payments for eligible works under Component 2, unless FAO has prepared, adopted and disclosed the ESMF as well as any environmental assessment, environmental management plan or similar safeguard instrument required by the ESMF, in form and substance satisfactory to the Association.
Type / Description
Disbursement / No withdrawal shall be made for Component 1 unless ICRC furnishes to the Association a list of expenditures (“List of Expenditures”), including their related contracts, being claimed by the Recipient for reimbursement out of the proceeds of the Financing, consisting of ICRC Cash Transfers and contracts for goods, works, non-consulting services, and consultants’ services procured in accordance with Section III, Schedule 2, of the Financing Agreement, for implementation of Component 1 of the Project.
Type / Description
Disbursement / No withdrawal shall be made for Component 1 unless ICRC has submitted a signed statement of declaration confirming that the Recipient has exercised its best efforts to ensure that ICRC Eligible Beneficiaries and contractors, suppliers, consultants or other party to the contracts in the List of Expenditures excludes entities listed in the United Nations Security Council Sanctions List.
Type / Description
Disbursement / No withdrawal shall be made for Component 1 unless ICRC, with respect to the List of Expenditures, has confirmed in writing, that contracting parties of related contracts are not subject to any suspension or debarment by the World Bank Group.
Type / Description
Disbursement / No withdrawal shall be made for Component 1 unless an environmental impact audit of works as well as technical and fiduciary audits, relating to the activities is carried out in connection with Component 1 of the Project and for which expenditures are claimed in the List of Expenditures.
Type / Description
Disbursement / No withdrawal shall be made for Component 1 unless ICRC has submitted, in form and substance satisfactory to the Association, a letter of acceptance from the Somalia Red Crescent Society, communicating said Somalia Red Crescent Society’s acknowledgement and agreement to abide by the Anti-Corruption Guidelines in connection with Component 1 of the Project.
Type / Description
Disbursement / For Component 1, withdrawal will be made once the Association has confirmed in writing to the Recipient that actions set out above have been completed to the satisfaction of the Association and are eligible for reimbursement from the proceeds of the Financing (“Retroactive Payment”).
PROJECT TEAM

Bank Staff

Name / Role / Specialization / Unit
Ayaz Parvez / Team Leader(ADM Responsible) / Senior Disaster Risk Management Specialist / GSU13
Robert Curle Jesse Reid / Team Leader / Disaster Risk Management Specialist / GSU19
Winter M. Chinamale / Procurement Specialist(ADM Responsible) / Senior Procurement Specialist / GGO01
Anjani Kumar / Procurement Specialist / Senior Procurement Specialist / GGO01
Leonard Mutuku Matheka / Financial Management Specialist / Senior Financial Management Specialist / GGO31
Allen Curtis K. Dennis / Team Member / Senior Economist / GMF07
Atishay Abbhi / Team Member / DRM Consultant / GSU13
Axel Rifon Perez / Team Member / ICT Policy Specialist / GTI11
Benjamin Kithome Kilaka / Team Member / Social Safeguard Consultant / GSURR
Bernard Harborne / Team Member / Lead Social Development Specialist / GSUGL
Chalida Chararnsuk / Team Member / Program Assistant / GSU13
Diego Garrido Martin / Team Member / Senior Operations Officer / GCFKE
Dominick Revell de Waal / Team Member / Senior Economist / GWA08
Edith Ruguru Mwenda / Counsel / Senior Counsel / LEGAM
Esayas Nigatu Gebremeskel / Team Member / Livestock Specialist / GFA13
Francis Ghesquiere / Program Manager / GFDRR Manager / GFDRR
Frank Anthony Fariello / Team Member / Lead Counsel / LEGAM
George Ferreira Da Silva / Team Member / Finance Analyst / WFALA
Helidah Refiloe Atieno Ogude / Team Member / Social Development Specialist / GSU07
Jean O Owino / Team Member / Finance Analyst / WFALA
John Bryant Collier / Safeguards Specialist / Senior Environmental Specialist / GEN01
M. Yaa Pokua Afriyie Oppong / Safeguards Specialist / Senior Social Development Specialist / GSU07
Matthias Mayr / Team Member / Program Officer / AFMSO
Nadim Saghir / Team Member / DRM Consultant / GSU19
Nathalie S. Munzberg / Safeguards Advisor / Regional Safeguards Adviser / OPSPF
Nidhi Sachdeva / Team Member / Program Assistant / LEGAM
Noel Chisaka / Team Member / Senior Health Specialist / GHN07
Sajid Anwar / Team Member / Disaster Risk Management Analyst / GFDRR
Sanjay N. Vani / Team Member / Lead Financial Management Specialist / GGO31
Shahrzad Mobasher Fard / Team Member / Micro Economic Consultant / GSU19
Shaza Khan / Team Member / DRM Consultant / GSU13
Stephen Paul D'Alessandro / Team Member / Senior Agriculture Economist / GFAGE
Sylvester Kofi Awanyo / Team Member / Lead Procurement Specialist / OPSPF
Timothy John Charles Kelly / Team Member / Lead ICT Policy Specialist / GTI11
Tracy Hart / Safeguards Specialist / Senior Environmental Specialist / GEN05
Utz Johann Pape / Team Member / Economist / GPV01
Verena Phipps-Ebeler / Safeguards Specialist / Senior Social Development Specialist / GSU07
Vikram Raghavan / Team Member / Lead Counsel / LEGOP
Zishan Faiza Karim / Team Member / Snr. Urban Development Specialist / GSU13

Extended Team

Name / Title / Organization / Location
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/ The World Bank
Somalia Emergency Drought Response and Recovery Project (P163830)
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/ The World Bank
Somalia Emergency Drought Response and Recovery Project (P163830)

Somalia
Somalia Emergency Drought Response and Recovery Project

TABLE OF CONTENTS

I.STRATEGIC CONTEXT

A. Introduction

B. Country Context

C. Situation in Urgent Need of Assistance

D. Sectoral and Institutional Context

E. Higher Level Objectives to which the Project Contributes

II.PROJECT DEVELOPMENT OBJECTIVES

A. PDO

B. Project Beneficiaries

C. PDO-Level Results Indicators

III.PROJECT DESCRIPTION

A. Project Components

B. Project Cost and Financing

C. Lessons Learned and Reflected in the Project Design

IV.IMPLEMENTATION

A. Institutional and Implementation Arrangements

B. Results Monitoring and Evaluation

C. Sustainability

D. Role of Partners

V.KEY RISKS

A. Overall Risk Rating and Explanation of Key Risks

VI.APPRAISAL SUMMARY

A. Economic Analysis

B. Technical

C. Financial Management

D. Procurement

E. Social (including Safeguards)

F. Environment (including Safeguards)

H. World Bank Grievance Redress

VII. RESULTS FRAMEWORK AND MONITORING

ANNEX 1: DETAILED PROJECT DESCRIPTION

ANNEX 2: IMPLEMENTATION ARRANGEMENTS

ANNEX 3: ECONOMIC ANALYSIS

ANNEX 4: SOCIAL DEVELOPMENT CONSIDERATIONS

ANNEX 5: IMPLEMENTATION SUPPORT PLAN

ANNEX 6: MAP OF SOMALIA

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/ The World Bank
Somalia Emergency Drought Response and Recovery Project (P163830)
  1. STRATEGIC CONTEXT

A. Introduction

  1. Accordingto the United Nations, the current food crisis is the worst humanitarian crisis since 1945, with more than 20 million people across a number of countries facing famine or the risk of famine over the coming six months. An estimated 1.4 million children are at imminent risk of death from severe acute malnutrition. Within this crisis, the Horn of Africa is particularly affected, with widespread reports of livestock deaths, water shortages, and rising rates of malnutrition in parts of Ethiopia, Kenya, South Sudan, and Somalia. In several of the worst affected countries, the crisis is linked to a mix of conflict, climate change and drought and is further aggravating already protracted displacement and other cross border spill overs. As famine looms in Somalia and South Sudan, the number of refugees and internally displaced people is rising, with a resulting strain on already overstretched government facilities and systems. Addressing the spillover effects of this crisis requires an integrated regional response. The present operation is part of the World Bank’s (WB) broader regional crisis response program, a set of approximately 10 individual operations financed by about US$900 million in new IDA resources (including US$360 million from IDA’s Crisis Response Window), and trust fund commitments to support famine relief, recovery and longer-term resilience for 6 countries, including North East Nigeria, South Sudan, Somalia, Ethiopia, Kenya and Yemen.
  1. The proposed Somalia Emergency Drought Response and Recovery Project (SEDRP)seeks the approval of the WB’s Board of Executive Directors to provide grants of US$50 million equivalent from the International Development Association (IDA) Crisis Response Window (CRW) to respond to the dire and deteriorating humanitarian situation in Somalia.Somalia is on the brink of famine resulting primarily from severe drought. An estimated 6.7 million – half the population – are acutely food insecure and in urgent need of humanitarian assistance, mostly in remote rural areas.[1] In the last few months since the failed October rains, Somalia has seen 5 percent of its population, or 600,000 people, newly displaced. Livelihoods have been wiped out, malnutrition is increasing with over a million children in need of treatment this year, and fatalities from Acute Watery Diarrhea (AWD)/cholera are on the rise.By November 2016, drought was declared nationwide by federal and regional authorities. The impact of the drought and resulting crisis has overwhelmed national response capacities in Somalia. As a result, the President of Somalia declared a “national disaster” in February 2017. This shock is taking place in an existing fragile conflict environment with high levels of poverty, widespread internal and external displacement, deep communal tensions, and a nascent federal government.While pledges from the international community have been impressive, the speed of delivery is key to averting famine in the coming months. Moreover, many agro-pastoral and pastoral communities will remain vulnerable to further deterioration of their situation through the coming year unless support is provided to rebuild their asset base.
  1. Given Somalia’s non-accrual status to IDA, the project will be on an exceptional basis, reflecting international recognition of the exceptional circumstances in the Horn of Africa. The project also makes full use of an “Agility” approach – both in terms of speed of preparation and flexibility of implementation, establishing new partnerships for the World Bank with strategic agencies with access to affected communities, including in Somalia’s hard to reach areas. At the same time, the project will leverage World Bank technical expertise into the recovery and resilience-building agenda in Somalia, in recognition of the protracted and recurrent nature of droughts in the region.