Programme Implementation Manual

(2010)

Ministry of Agriculture
Addis Ababa, October, 2010

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PART ONE: INTRODUCTION AND BACKGROUND TO PSNP ........................................... 1
Chapter 1: HOW TO USE THE NEW PROGRAMME IMPLEMENTATION MANUAL .... 1
1.1 How the Guidelines are Organised ...................................................................... 1
Chapter 2: ORIGINS AND OBJECTIVE OF PSNP ........................................................ 4
2.1 Origins of the PSNP ............................................................................................ 4
2.2 PSNP Objective................................................................................................... 5
2.3 PSNP Principles .................................................................................................. 6
2.4 PSNP Coverage .................................................................................................. 7
2.5 Five Elements of the PSNP ................................................................................. 8
2.6 How PSNP fits with the wider FSP ...................................................................... 9
2.7 Graduation ........................................................................................................ 10
2.8 What is different in this version of the PIM and this Phase of PSNP? ................ 12
PART TWO: DESCRIPTION OF THE PSNP ...................................................................... 15
Chapter 3: PSNP Programme Elements ...................................................................... 18
3.1 Introduction ....................................................................................................... 18
3.2 Transfers for chronically food insecure households ........................................... 18
3.3 Transfers for households affected by shocks with transitory needs ................... 30
3.4 Public Works that create sustainable local infrastructure ................................... 36
3.5 Strengthening the effectiveness of PSNP implementation ................................. 43
3.6 Coordination between programme implementers and with other development
efforts 53
Chapter 4: PSNP BUDGET ARRANGEMENTS ........................................................... 67
4.1 Introduction ....................................................................................................... 67
4.2 Transfers ........................................................................................................... 68
4.3 Administrative Budget........................................................................................ 68
4.4 Capital Budget ................................................................................................... 70
4.5 Contingency Budget .......................................................................................... 71
4.6 Regional Level Management Budget ................................................................. 72
4.7 Federal Level Management Budget ................................................................... 73
4.8 Capacity Building Budget .................................................................................. 74
4.9 Financial Reporting ........................................................................................... 75
Chapter 5: PSNP Institutional and Management Arrangements ................................... 77
5.1 Federal Level .................................................................................................... 77
5.2 Regional Level................................................................................................... 86
5.3 Zonal level ......................................................................................................... 89
5.4 Woreda Level .................................................................................................... 89
5.5 Kebele Level ..................................................................................................... 93
5.6 Community Level............................................................................................... 95
PART 3: THE PSNP PROGRAMME MANAGEMENT CYCLE ............................................ 98
Chapter 6: Introduction to the PSNP Programme Management Cycle ......................... 99

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 6.1 The PSNP Programme Cycle ............................................................................ 99
6.2 Timing of the PSNP Programme Cycle ............................................................ 100
Chapter 7: Planning and Approval phase ................................................................... 108
7.1 Introduction ..................................................................................................... 108
7.2 Preparation of the Community Public Works Plan and the Kebele Annual Safety
Net Plan (KASNP)...................................................................................................... 109
7.3 Preparation of the Woreda Annual Safety Net Plan ......................................... 121
7.4 Regional Level Planning and Approval / RASNP ............................................. 127
7.5 Federal-level Planning and Approval / the FASNP .......................................... 134
7.6 Dissemination of approved Federal Annual Safety Net Plan ............................ 141
Chapter 8: PSNP IMPLEMENTATION ....................................................................... 143
8.1 Introduction ..................................................................................................... 143
8.2 Procurement.................................................................................................... 143
8.3 Financial Flow ................................................................................................. 150
8.4 Food Logistics ................................................................................................. 155
8.5 Implementation of Public Works ...................................................................... 157
8.6 Payment procedures ....................................................................................... 162
Chapter 9: RISK MANAGEMENT PHASE ................................................................. 167
9.1 Introduction ..................................................................................................... 167
9.2 How do I use the woreda Contingency Budget? .............................................. 167
9.3 How do I use the Regional Contingency Budget? ............................................ 169
9.4 What is the Process for the Risk Financing Mechanism? ................................ 177
Chapter 10: MONITORING AND EVALUATION....................................................... 179
10.1 Introduction ..................................................................................................... 179
10.2 Monitoring and evaluation tools and processes ............................................... 180
10.3 Roles and responsibilities for monitoring the PSNP ......................................... 184

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Acronyms

BoARD Bureau of Agriculture and Rural Development

BoFED Bureau of Finance and Economic Development
BPR Business Process Reengineering
CBHW Community Based Health Workers
CBPWD Community Based Participatory Watershed Development
CCI Complimentary Community Infrastructure
CFI Chronically Food Insecure
CFSTF Community Food Security Task Force
CIDA Canadian International Development Agency
CP Contingency Plan
DFID UK Department for International Development
DPPFSC Disaster Prevention and Preparedness and Food Security Coordination
DA Development Agent
DP Development partners
DRM Disaster Risk Management
DRMFSS Disaster Risk Management and Food Security Sector
DRMWG Disaster Risk Management Working Group
EFSRA Emergency Food Security Reserve Administration
EFY Ethiopian Fiscal Year
EIA Environmental Impact Assessment
EoI Expression of Interest
EPA Environmental Protection Authority
ESMF Environmental and Social Management Framework
EWRCP Early Warning Core Process
EWRD Early Warning and Response Directorate
EWS Early Warning System
EWTF Early Warning Task Force
FASNP Federal Annual Safety Net Plan
FIC Federal Information Centre
FMTF Food Management Task Force
FSCD Food Security Coordination Directorate
FSD Food Security Desk
FSP Food Security Programme
GoE Government of Ethiopia
GPN General Procurement Notice
HABP Household Asset Building Programme
HAPCO HIV/AIDS Prevention and Control Office
HEW Health Extension Workers
HRD Human Resources Development
ICB International Competitive Bidding
ICT Information Communications Technology
IFR Interim Financial Report
IPR Implementation Progress Report
JRIS Joint Review and Implementation Support
JSOC Joint Strategic Oversight Committee
JTC Joint Technical Committee
KAC Kebele Appeals Committee
KASNP Kebele Annual Safety Net Plan
KDP Kebele Development Plan
KFSTF Kebele Food Security Task Force
LIAS Livelihood Impact Assessment Sheet
M&E Monitoring and Evaluation
MDG Millennium Development Goal

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MDTF Multi-Donor Trust Fund
MERET Managing Environmental Resources to enable Transition to Sustainable
Livelihoods (Joint Programme between MoA and WFP)
MFI Microfinance Institution
MOWR Ministry of Water Resources
MoA Ministry of Agriculture
MoFED Ministry of Finance and Economic Development
MoLSA Ministry of Labour and Social Affairs
MoU Memorandum of Understanding
NBE National Bank of Ethiopia
NMA National Meteorological Agency
NPDRM National Policy for Disaster Response Management
NRMCP Natural Resource Management Core Process
NRMD Natural Resources Management Directorate
PASDEP Plan for Accelerated and Sustained Development to End Poverty
PPA Public Procurement Agency
PSNP Productive Safety Net Programme
PWCU Public Works Coordination Unit
PWFU Public Works Focal Unit
PWJTC Public Works Joint Technical Committee
PWSG Public Works Support Group
PWTC Public Works Technical Committee
RASNP Regional Annual Safety Net Plan
RFM Risk Financing Mechanism
RFMC Risk Financing Management Committee
RFP Request for Proposals
RFQ Request for Quotation
RFSSC Regional Food Security Steering Committee
RIC Regional Information Centre
RRM Rapid Response Mechanism
RRT Rapid Response Team
RUSACCO Rural Savings and Credit Cooperative
SLM Sustainable Land Management
SME Small and Medium Enterprises
SNNP Southern Nations, Nationalities and Peoples (Region)
USAID United States Agency for International Development
WASNP Woreda Annual Safety Net Plan
WFP World Food Programme
WFSD Woreda Food Security Desk
WFSTF Woreda Food Security Task Force
WNRMD Woreda Natural Resources Management Desk
WOARD Woreda Office of Agriculture and Rural Development
WOFED Woreda Office of Finance and Economic Development

Glossary

Belg. The small rains of the highlands falling from February through May are known as
belg rains, referring to the second most important sewing season of the region.

Hamle. In the Ethiopian calendar, Hamle means July. Ethiopia’s fiscal year begins in
Hamle 1 (July 7th).

Kebele. Kebele, part of a woreda, is the smallest unit of local government in Ethiopia,
equivalent to a ward or neighbourhood.

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Meher. The long rains which generally occur from June to September and provide the main
agricultural season.

Sene. In the Ethiopian calendar, Sene means June. Ethiopia’s fiscal year ends in Sene 30
(June 23rd).

Woreda. A woreda is an administrative division in Ethiopia (managed by a local

government), equivalent to a district with an average population of 100,000. Woredas are
composed of a number of kebele, or neighbourhood associations.
WoredaNet. WoredaNet is a government network connecting more than 611 woredas,
regional and federal government offices across the country. WoredaNet is a terrestrial and
satellite-based network designed with the primary objective to provide ICT services such as
video conferencing, directory, messaging and Voice Over IP, and Internet connectivity to
the federal, regional and woreda level government entities.

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PART ONE: INTRODUCTION AND BACKGROUND TO PSNP

CHAPTER 1: HOW TO USE THE NEW PROGRAMME IMPLEMENTATION

MANUAL

This is the Programme Implementation Manual, or PIM, for the Government of Ethiopia’s
Productive Safety Net Programme (PSNP). The PIM is the final source of guidance on
programme concepts, objectives, principles and procedures. It also contains in annexes
detailed formats to support the procedures described.

This is the second major version of the PIM since the initiation of the PSNP in 2005,
although there have been other minor updates, and two addendums which were additional
documents to be read alongside the July 2006 version. The history of earlier versions is as
follows:
• Original PIM, produced December 2004
• Revision in March 2006
• Further revision in July 2006
• Addendum to July 2006 PIM in October 2006
• Addendum to July 2006 PIM in January 2010
• This version, dated May 2010

This version of the PIM has been introduced to support the new phase of the PSNP,
commencing in January 2010. A number of major design changes have been introduced to
the PSNP, and this PIM describes the new processes and procedures that support these
design changes, as well as consolidating the changes found in the original PIM and its
addendums. Section 2.8 of this PIM describes the major changes in content since the last
PIM.

This version of the PIM has also been restructured to make information more accessible to
PIM users. It is now restructured to reflect the sequential process of planning and
implementation. This should make it easier for users to find the information they need. To
assist this process further, this PIM has extensive cross-referencing to ensure that other
information relevant to the section being read is clearly signposted.

This document is not intended to be read as a book from start to finish, although key
implementers may choose to familiarise themselves with it originally in this way. The PIM
can best be used by referring to the relevant section according to the stage of the
Programme Cycle, so that guidance provided is relevant to needs at that time.

Please note that this is the overall programme manual, and that it applies to all PSNP
woredas – be they supported by Government or NGOs. The guidance described below,
including the use of PSNP budget lines, must be used in PSNP woredas unless stated
otherwisei.

Adaptations to the PIM for pastoral areas are still being discussed at the time of writing.
The manual will be amended to reflect any specific changes for pastoral areas when these
discussions have been resolved. Until then this PIM provides the definitive source of
guidance for all PSNP locations.

1.1 How the Guidelines are Organised

These guidelines are organised into three parts:

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Part 1: Includes this introduction on how to use the guidelines and how they are organised,
as well as basic background information concerning the origins and objectives of the
PSNP.
Part 2: Provides a detailed overview of the five elements of the PSNP. This section aims to
ensure that the reader not only understands how to implement the programme (which is
covered in Part 3) but why the programme should be implemented in this way. Part 2 also
includes information on the budget and institutional arrangements.
Part 3: Lays out the detailed steps that implementers at different levels need to follow in
order to efficiently and effectively implement the programme. The steps are laid out in
accordance to a Programme Management Cycle and this part of the document is therefore
sub-divided into four chapters:
• Planning and Approval Phase
• PSNP Implementation
• Risk Management Phase
• Monitoring and Evaluation

Each chapter is further subdivided to make it clear which actions should be implemented at
what level:
• Community and Kebele
• Woreda
• Region
• Federal

In addition to the main body of the document a number of formats and other key materials
referred to in the text are included as annexes. Other important PSNP reference
documents are cited where appropriate in the text below, such as the FSP M&E Plan.

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Chapter 2: ORIGINS OF THE PSNP
2.1 Origins of the PSNP ................................................................................................... 4
2.2 PSNP Objective.......................................................................................................... 5
2.3 PSNP Principles ......................................................................................................... 6
2.4 PSNP Coverage ......................................................................................................... 7
2.4.1 Woredas and kebeles .......................................................................................... 7
2.4.2 Clients ................................................................................................................. 7
2.5 Five Elements of the PSNP ........................................................................................ 8
2.6 How PSNP fits with the wider FSP ............................................................................. 9
2.7 Graduation ............................................................................................................... 10
2.8 What is different in this version of the PIM and this Phase of PSNP? ....................... 12

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CHAPTER 2: ORIGINS AND OBJECTIVE OF PSNP

2.1 Origins of the PSNP

Chronic poverty and chronic food insecurityii are widespread in much of Ethiopia. Despite
record rates of economic growth in recent years, the levels of poverty in rural Ethiopia
remain high. From 1999/00 - 2004/05 Ethiopia experienced a 6-percentage point decline in
rural poverty. Yet 38.5% of rural households still live below the food poverty line. Most of
these households are engaged in subsistence farming on small fragmented plots of
degraded land, a livelihood increasingly subject to weather fluctuations as a result of
climate change.

Dramatic variations in the climate contribute to food insecurity. Rainfall data for the period
1967 to 2000 indicate that annual variability in rainfall across different zones in Ethiopia
ranged from a low of 15% to a high of 81% – among the highest in the world. Repeated
environmental shocks have severely eroded rural livelihoods, leaving households with little
capacity to cope. Beyond rainfall shocks, health risks, including both malaria and
HIV/AIDS, exacerbate the vulnerability of the poor, driving thousands of people into poverty
traps. Many households are not able to fully meet their most basic consumption needs
even in years when rainfall is adequate.

As a result, every year for over two decades the Government has launched international
emergency appeals for assistance. This annual emergency assistance was channelled to
meet the consumption needs of all food insecure households. It did not distinguish between
different types of food insecurity – whether it was temporary and caused by specific
shocks, or whether it was regular and a reflection of general poverty. Although this
humanitarian assistance was substantial (estimated at about US$265 million a year on
average between 1997 and 2002) and saved many lives, evaluations have shown that it
was unpredictable for both planners and households, and often arrived too little, too late.
The delays and uncertainties meant that the emergency aid could not be used effectively
and did little to protect livelihoods, prevent environmental degradation, generate community
assets, or preserve physical or human household assets.

In 2003, building on its National Food Security Strategy, the Government launched a major
consultation process with development partners that aimed to formulate an alternative to
crisis response to support the needs of chronically food insecure households, as well as to
develop long-term solutions to the problem of food insecurity. This culminated in the New
Coalition for Food Security that proposed a Food Security Programme (FSP) aimed at
shifting households out of the emergency relief system while also enabling them to
‘graduate’ to sustainable food securityiii.

Under the FSP, in 2005 the Government started a major new initiative - the Productive
Safety Net Programme. The PSNP distinguishes between chronic and transitory food
insecurity:

Chronic food insecurity. Households that are regularly unable to produce or purchase
enough food to meet their food needs, even during times of normal rain, are considered
chronically food insecureiv. The PSNP recognises that emergency responses to chronic
food insecurity are not the most effective mechanism, because the same people require
the same levels of support each year. What is needed is a more developmental approach
that assists people to overcome their poverty and become food secure. The PSNP delivers
timely, predictable and appropriate transfers to assist this process.

Transitory food insecurity. When a shock has depleted the food stores and current
incomes streams of household to the point that they are unable to meet their immediate

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food needs, these households are described as transitory food insecure. When people are
subject to a shock it affects their livelihood, whether or not they are chronically food
insecure. This has the potential to ruin any progress chronically food insecure households
may have made towards food security, or to cause other households to become food
insecure, and if they do not receive assistance, chronically food insecure. The PSNP
includes measures to protect against transitory food insecurity, and transitory food
insecurity is the focus of the emergency relief system.

The PSNP is now in its third phase.v Previous phases are as follows:
• Phase 1: from January 2005 to December 2006. This established PSNP processes
and delivered transfers to 4.84 million food insecure people in Ethiopia.
• Phase 2: from January 2006 to December 2009. During this phase the PSNP scaled
up significantly to cover 7.57 million people.
• Phase 3: from January 2010 to December 2014. The phase will further strengthen
implementation of the PSNP to achieve the objectives in all programme areas and
maximise linkages with other elements of the FSP to promote graduation from food
insecurity.

2.2 PSNP Objective

The objective of the Productive Safety Net Programme (PSNP) is:

‘To assure food consumption and prevent asset depletion for food insecure households in
chronically food insecure woredas, while stimulating markets, improving access to services
and natural resources, and rehabilitating and enhancing the natural environment.’

This objective arises from the PSNP logical framework, which is the strategic planning tool
used by the PSNP to ensure that what we do to implement the PSNP will help us achieve
the desired objective of the programme. Looking deeper into the objective, it has the
following elements:
• It focuses on chronically food insecure woredas;
• It focuses on food insecure households – primarily chronically food insecure
households but also those who are transitory;
• It aims to assure food consumption, so that chronically food insecure people have
enough food to eat throughout the year;
• It aims to prevent asset depletion, so that food insecure households do not have to lose
their assets in order to provide food for themselves;
• It aims to address underlying causes of food insecurity by rehabilitating the natural
resources base;
• It aims to have a positive impact by stimulating markets and injecting cash into rural
economies and,
• While doing that it also aims to contribute to the creation of an enabling environment for
community development by increasing access to services, such as health, education,
roads and market infrastructure.

Looking at these elements of the objective it is clear that the PSNP provides a safety net to
protect people falling further into trouble, while also providing a secure food and asset
platform from which they may be able to improve their household status and become food
secure. It is also clear from this that while everyone wishes that graduation of households
from the PSNP will be as widespread and fast as possible, the PSNP is not designed to
make this happen: in addition to the safety net that the PSNP provides to prevent people
falling lower, other measures are also needed to help people rise higher. These other
measures are provided through the Government’s Food Security Programme (FSP) and
other investments and services (section 2.6).

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The logical framework for the PSNP describes the PSNP objectives in more detail (see
Annex 1).

2.3 PSNP Principles

To ensure that the PSNP is effective in achieving its objectives it needs to be implemented
in a certain way. The following principles are to be applied at all times:

1. Fair and transparent client selection. Clients are selected through community-based
targeting, with an effective appeal mechanism to address inclusion or exclusion errors. The
client list is verified through public meetings during which it is read aloud and discussed.
The final client list is also posted in public locations.

2. Timely, predictable and appropriate transfers. To create an effective safety net,

clients must be sure that they can depend on the PSNP at all times. Transfers can be
considered predictable if PSNP clients have timely knowledge of their eligibility for the
programme, and they know what type of transfer they will receive, how much of this
transfer they will receive and when they will receive it. A transfer is timely if it is provided to
clients before or at the time during the year when they need the support. A timely transfer
also takes place according to a planned transfer schedule. A transfer is appropriate if it
meets the needs of households: cash is provided in settings where markets function well,
while food is provided in areas where there is no food to purchase or food prices are
extremely high. An appropriate transfer also has the same value whether it is provided in
cash or food.

3. Primacy of transfers. Since the PSNP is primarily a safety net, ensuring clients receive
transfers takes priority over all considerations. Transfers should not be delayed for any
reasons, including those related to public works implementation.

4. Productive safety net. The PSNP is a productive safety net which means that it not
only includes a commitment to providing a safety net that protects food consumption and
household assets, but it is also expected to address some of the underlying causes of food
insecurity and to contribute to economic growth in its own right. The productive element
comes from infrastructure and improved natural resources base created through PSNP
Public Works and from the multiplier effects of cash transfers on the local economy.

5. Integrated into local systems. The PSNP is not a project but a key element of local
development planning. PSNP plans are integrated into wider development plans at woreda,
zone, region and federal levels.

6. Scalable safety net. The PSNP is scaled up when needed in the event of shocks to
ensure assistance is available to those households who need it most in PSNP woredas, to
prevent them from becoming more food insecure. The PSNP can scale-up to a
predetermined ceiling; any transitory needs that cannot be met through the PSNP will be
addressed through the emergency response system.

7. Cash first principle. When possible cash should be the primary form of transfer. This
assists with the stimulation of markets – since people spend their cash in local markets –
and the move away from food aid. Food transfers are provided at times and places when
food is not available in the market, or where market prices for food are very high. This
protects PSNP clients from food shortages and asset depletion.

8. Gender Equity. The PSNP is designed to respond to the unique needs, interests and
capabilities of men and women to ensure that they benefit equally from the Programme.

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This is done by promoting the participation of both men and women in PSNP decision-
making structures and responding to women’s responsibility for both productive and
reproductive work and the differential access of female-headed households to resources.

2.4 PSNP Coverage

2.4.1 Woredas and kebeles

The Productive Safety Net Programme is implemented in woredas defined by the

Government as chronically food insecure. Their eligibility for the PSNP was defined by the
frequency with which they required food assistance in the ten years preceding the design
of the PSNP (the ten years up to 2004). This period has now been reduced to three years.
The PSNP is rolling-out to new woredas in Somali Region, which were defined as
chronically food insecure in 2004. A list of these woredas is in Annex 2.

Within each woreda, only kebeles that are chronically food insecure are included for
regular PSNP transfers, but all kebeles in a PSNP woreda are eligible for transitory support
through the Regional Contingency Budget and Risk Financing.

In addition new woredas created from chronically food insecure woredas through the
administrative division of woredas (‘splitting’) are included in the PSNP, if they include
kebeles with existing PSNP clients.

Woredas that are not included in the PSNP receive support for food shortages through the
emergency relief system.

All PSNP woredas are also eligible to receive assistance from the emergency response
system, if the level of transitory food needs exceeds PSNP capacity to respond. See
section 3.3.

PSNP woredas may receive support from the Government or through NGOs. This PIM
applies to ALL PSNP woredas, unless otherwise stated.

2.4.2 Clients

The clients of the PSNP are the food insecure populations living in these chronically food
insecure woredas. The vast majority of PSNP clients are resource poor male- and female-
headed households who fail to produce or purchase enough food even in times of normal
rains. Households with these characteristics are considered chronically food insecure,
numbering around 8.3 million people.

To ensure that the correct people are included in the programme at all times the PSNP
makes regular adjustments to its client list. This follows the following formula:

This year’s client number = caseload in previous year - graduation (deferred for 1 yearvi) +
adjustment based on assessment.

The overall client number, or caseload, of the PSNP will not increase over time from the
current maximum of 8.3 million people. The speed at which it reduces from this maximum
number of clients will depend on the balanced effect of the following factors:

Graduation from the PSNP is expected to reduce overall client numbers over time.
Households that are identified for graduation will remain in the PSNP for one additional
year to promote stability in their livelihoods and the building of resilience.

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But, Community and Kebele Food Security Taskforces will also assess the dynamics within
households and community and adjust the client number as required. Specifically:
• Population growth, taking account of the difference between births and deaths among
existing PSNP clients and in- and out-migration from the community may lead to
adjustments in client numbers;
• New chronically food insecure households, which are households whose assets have
been reduced to the point that they are no longer able to meet their food needs, even
during periods of normal rain, and may need to be added to the current client list which
will adjust numbers; and,
• Successful appeals, either from households identified for graduation or households not
included in the PSNP through the targeting process, which lodge appeals to the Kebele
Appeals Committee and are successful, will be included in the PSNP. This may cause
adjustments to client numbers.

2.5 Five Elements of the PSNP

The PSNP has 5 main elements that combine to achieve the PSNP objectives. These are
based on the Outputs found in the PSNP logframe (see Annex One:) and are as follows:

1. Transfers for chronically food insecure households. The PSNP provides timely and
predictable transfers to chronically food insecure households to allow them to ensure their
food consumption without causing the sale of their household assets. Transfers may be in
cash or food. PSNP clients qualify for transfers in two ways:

a. Conditional transfers for households that face regular food shortages and that have
members who are able-bodied (fit and healthy) and above 16 years of age. Such
households receive transfers on condition that their able-bodied members (both male and
female) contribute labour to Public Works. See section 3.2.4.

b. Unconditional transfers for households that face regular food shortages but who have
no other means of support, and no labour to contribute to Public Works. Such households
receive unconditional transfers through Direct Support, without the need to contribute
labour of any kind to any activities. See section 3.2.4.

2. Transfers for households affected by shocks. When there is a shock such as a

drought or flood, the PSNP is able to expand temporarily (or ‘scale-up’) to protect
households which are affected by the shock. PSNP scales up to the level, and for the
duration of time, required to ensure that livelihoods are adequately protected. This allows
the livelihoods of households that are not PSNP clients to be temporarily protected. It also
allows PSNP clients to gain additional protection if needed. Such transfers follow the same
rules for conditionality as transfers to chronically food insecure households and are
therefore categorised as either Conditional or Unconditional. The PSNP can scale-up to the
level of contingency budget and Risk Financing resources, any response beyond this
comes through the emergency response system. See section 3.3.

3. Public Works to create sustainable infrastructure. The availability of labour from

able-bodied PSNP clients is used to address underlying causes of food insecurity by
rehabilitating the natural environment, and constructing social and market infrastructure.
Sustainability of these community assets is ensured by establishment of appropriate
management, operations and maintenance procedures. This contributes to the enabling
environment for community development and addresses the underlying causes of food
insecurity by transforming the natural environment. Planning of the PSNP public works

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sub-projects follows guidelines for community-based watershed management, and all
activities are integrated within woreda development plans. See section 3.4.

4. Strengthening the effectiveness of PSNP implementation. The PSNP invests in the

people, systems, processes and procedures that deliver the programme. It also provides
resources to ensure that the capacity of organisations is adequate to allow the effective
delivery of the programme, and that staff have the knowledge and skills they require to
carry out their duties. This is essential for timely and predictable transfers and quality public
works. See section 3.5.

5. Coordination between programme implementers and with other development and

relief efforts. The PSNP is a multi-sectoral programme that is implemented by a number
of different organisations which need to work together effectively. The PSNP makes
specific efforts to ensure PSNP clients are enabled to move towards graduation, through
the linkages it makes with other programmes and the wider enabling environment. The
PSNP also offers an opportunity to link with initiatives that aim to achieve the development
objectives outlined in PASDEP, such as improved nutritional and educational outcomes,
gender equality and HIV and AIDS mainstreaming. See section 3.6.

2.6 How PSNP fits with the wider FSP

The Productive Safety Net Programme lies within the Government of Ethiopia’s Food
Security Programme (FSP) which is a key pillar of Ethiopia’s Food Security Strategy. The
FSP is implemented in chronically food insecure woredas.

The PSNP is one of four components of the FSP. Other components are the:
• Household Asset-Building Programme (HABP)
• Complementary Community Infrastructure Programme (CCI), and the
• Resettlement Programme

Together these programmes aim to move people in chronically food insecure woredas
towards a position of food security in the following manner:

The PSNP provides a safety net for chronically food insecure households and also non-
chronic households affected by shocks. Through the public works infrastructure built it
contributes to a local enabling environment for community development. Together these
provide a stable platform from which to rise out of chronic food insecurity.

The HABP supports individual households to grow their own household economy, through
appropriate investments. This helps chronic households to rise up from the platform
provided by the safety net, and helps households to move towards full food security.

The CCI aims to complement PSNP public works infrastructure, which are primarily labour-
intensive works, while CCI relies on capital-intensive, and therefore, typically larger,
infrastructural works. This further adds to the local enabling environment for food security
and growth.

The Resettlement Programme aims to assist chronically food insecure households to

voluntarily relocate to areas where they may be able to develop a better and more
sustainable livelihood.

FSP is financed by Government and Development Partner sources. The donor financing is
allocated to the PSNP and HABP-related capacity building activities. Government financing

9
to FSP is allocated as a block grant to Regions, which distribute their financing across
HABP, CCI and Resettlement in line with guidance from DRMFSS (April 2010).

2.7 Graduation

Graduation arises from the combined effect of FSP components and other development
processesvii, not from the activities of the PSNP alone. Improvements in all of these
contributors are required for graduation. Therefore, the success of the PSNP cannot be
judged by graduation rates.

In this phase the PSNP and wider FSP have been designed in such a way that there are
greater prospects to achieve graduation at scale, through close complementarity between
the different services that households have access to under the different components of
the FSP. This is illustrated in figure 1 below:

Figure 1: The process of graduation

The critical steps envisaged in this vision for graduation are as follows:
• All chronically food insecure households will receive PSNP transfers. Under the HABP,
they will also receive technical and business development support from Development
Agents (DAs) and woreda experts for the identification of potential new investment
opportunities and the development of household business plans. They will then access
financial services from Micro-Finance Institutions (MFIs) or Rural Credit and Savings
Cooperatives (RUSACCOs) to enable them to make these investments. In addition,
support will be provided to identify market outlets as well as potential value addition
opportunities. In addition households will be encouraged to engage in regular savings
either with village savings and credit groups or RUSACCOs.
• The most destitute households targeted by the PSNP (the ‘ultra-poor’ in the diagram;
these may include female headed or labour poor households) are often unwilling and
unable to take credit. In order to build their confidence as well as their creditworthiness,
these households will receive not only access to extension and financial services as

10
 described above, but also an additional effort to include them in the FSP (intensive
support and tailored support in the diagram above). What form this takes will be
determined during implementation as required. Following this kick-start, households
should be in a position to save and access credit in similar ways to other chronically
food insecure households for further undertakings in their business plan. Some ultra
poor households will never move into food sufficiency and will always require
unconditional transfers to meet their food needs.
• As their assets and incomes increase, chronically food insecure households will no
longer need support from the PSNP (and may even voluntarily withdraw from the
programme). This is the point at which they graduate from the PSNP (the first level of
graduation). When this happens, they will continue to access HABP support from
extension staff and financial institutions so that they can further build assets in order to
become sustainably food secure. During this period they might take larger loans and
may begin to choose financial products that are not linked with the Food Security
Programme, but rather are mainstream products provided by financial institutions,
particularly MFIs.
• Eventually, households will reach a point of sustainable food security and will no longer
need the targeted support provided by the FSP. At this point they graduate from the
FSP (the second level of graduation). Meanwhile financial institutions will have
increased their outreach as a result of the programme and should have an improved
capital base (through savings and through capitalisation channels independent of the
Food Security Programme). Newly food secure households that have graduated from
the FSP, along with existing food secure households will therefore continue to have
access to mainstream credit and services.
• Throughout the households’ trajectories toward graduation, the FSP will also support
the creation of an enabling environment through the construction of community assets
by PSNP public works and CCI.

While every effort will be made to enable graduation, it is envisaged that some people will
be unable to graduate. The process for assessing individual household graduation is
described in more detail in section 3.2.2. The two levels of graduation are described in
Table 1.

Table 1: Food Sufficiency and Food Security

Food Sufficiency Food Security

A household can be deemed food Food Security is defined as ‘access by
sufficient when, ‘in the absence of all people at all times to sufficient food
receiving PSNP [or emergency] transfers for an active and healthy lifeix’
Definition

it can meet its food needs for 12 months

and is able to withstand modest
shocksviii’
At the point that a household becomes
food sufficient, it no longer needs to
receive transfers (except in the event of
a major shock). However, further support
in building household assets will be
needed before households can be
considered to have a significant degree
Application
The use of the phrase ‘Food Security’
and its definition above imply a degree
of resilience and suggest that food
security is a relatively sustainable state.
Some households will only graduate
from the PSNP during the programme
life (and will need continued support

of resilience and for them to have from the household asset building
achieved a degree of sustainability in component); while other households will
their access to food and income. graduate completely from the
programme.

11
2.8 What is different in this version of the PIM and this Phase of PSNP?

A number of design features have been introduced in this new phase in response to
experience with implementation to date. This section draws attention to these differences,
and cross-references to sections in the PIM where they are described.

New Institutional Arrangements

Following the implementation of Business Process Re-engineering (BPR) to reform service
delivery in Government Ministries, the Government structures for implementation of PSNP
have changed. At Federal-level, the new structure brings together the former Food Security
Coordination Bureau and Disaster Prevention and Preparedness Agency as two
Directorates under the State Minister for Disaster Management and Food Security. This
has been replicated at Regional and woreda-levels.

The institutional arrangements for the PSNP have been revised to reflect the post-BPR
structure and also to address management issues experienced to date. See Chapter 5: for
the new arrangements and their roles and responsibilities.

Alignment of planning cycle with Ethiopian Fiscal Year

The PSNP programme implementation cycle has been aligned with the Ethiopian Fiscal
Year. Planning is carried out from March to June, with the PSNP annual plan approved at
Federal level by the beginning of July, together with all regular government plans. PSNP
implementation can occur at any point over the next 12 months. This is to respond to the
different livelihood patterns, and therefore different hungry periods, across PSNP woredas.
PSNP implementation is therefore driven by bottom up planning, wherein woredas plan
when they will carry out public works and when transfers will be delivered to respond to
local livelihoods.

Graduation
Households who are identified for graduation following the process outlined in the
Graduation Guidance Note will remain in the PSNP for one additional year. See sections
3.2.2 and 7.2.1.1.

Transparency & Accountability

A number of measures have been introduced to ensure that participants and non-
participants are well informed of their eligibility criteria for the PSNP:
• Full roll out of the PSNP Communication Strategy (June 2007) will ensure that both
programme participants and non-participants have a good awareness of the objectives
of the programme and the targeting criteria, thereby strengthening their involvement in
the process. See section 3.2.6.
• PSNP Client Cards will be held by all PSNP clients to provide them with certainty of
their inclusion in the PSNP and include information on their entitlements. In addition,
the cards are expected to reduce the risk of rotation and improve the security of the
transfer mechanism by ensuring client attendance during payments. See section 3.2.6
and 7.2.3. The PSNP Client Card is found in Annex 6.
• The new Charter of Rights and Responsibilities will aim to improve bottom-up
accountability as a way of pressing for programme performance, ensuring communities
are informed of their rights and responsibilities with regards to the programme and as
part of the process of strengthening use of the appeal system. See section 3.2.6. The
PSNP Client Charter is in Annex 8.

12
Targeting
Changes introduced to targeting procedures include:
• Introduction of full family targeting, see sections 3.2.3 and 7.2.1
• New rules on polygamous households and divorce, see sections 3.2.3 and 7.2.1.2
• Households will also receive the level of transfers required to meet their food needs,
rather than a uniform transfer. These variable levels of transfers will be introduced and
will classify households into those requiring 3, 6 and 9 months of support. No further
guidance is provided on this, as the exact implementation strategy has not yet been
agreed.

Payments
Changes relating to payments include:
• The cash wage rate is currently 10 birr for Ethiopian Fiscal Year 2002, which equates to
15kg of cereals per household member per month for 5 days worked per month per
household member. The wage rate will be amended annually based on a wage rate
study rather than being specified in the PIM. See section 3.2.7.
• Payroll and Attendance Sheet System (PASS): Use of the payment software, PASS, is
mandatory in all PSNP woredas of Amhara, Oromiya, SNNP and Tigray Regions,
including those supported by NGOs. See section 8.6.2. Other Regions will be included
when their capacity has been assessed as adequate.

Performance Incentives
A new system of performance incentives to improve the timeliness and predictability of
transfers to households has been established. Additional budget will be provided to all
woredas meeting minimum performance standards for use as part of their program
administrative and/or capital budgets. See section 3.5.1

Logical framework
The new phase of PSNP has a new logical framework that sets out clearly PSNP
objectives, and what the PSNP will do to achieve them. See Annex 1.

Monitoring
Regional Information Centres (RICs) have been established to generate quality and real
time data on selected areas of programme performance to guide decision-making
processes at regional and federal levels, and to ensure quality and effectiveness of PSNP
service delivery. RICs have been established in the Disaster Prevention, Preparedness
and Food Security Commissions (DPPFSCs) of Amhara, Tigray, Oromiya, SNNP, Somali
and Afar. The RICs complement the regular monitoring system. See section 10.2.

Responsibility for monitoring programme implementation has also been divided among
implementing bodies. Monitoring of public works is the responsibility of NRMD, monitoring
of food transfers that of EWRD, monitoring financial management falls to MoFED, while
FSCD is responsible for monitoring capacity building activities, transfer rates, among other
items, and is responsible to consolidate and analyse all streams of information to generate
a complete understanding of programme implementation. These responsibilities are
replicated at Regional and woreda levels. See section 10.3 for a brief overview.

Public Works
Four changes to Public Works have been introduced:
• New guidelines for Public Works on private land, see sections 3.4.2, 3.4.6 and 7.2.4.
• Regional Public Works Focal Units re-established in each NRMCP, see sections 5.2.
• ESMF revised and mandatory screening prior to approval for all Public Works
reconfirmed, see sections 3.4.8, and Annex 4.

13
• Operations and maintenance is now included in public works' guidelines and capacity
building.

Additionally, the list of eligible public works has been expanded to include investments in
social services and attendance at nutritional or literacy classes, for example, that contribute
toward the achievement of the development objectives of the woreda. These types of
works will be planned for as part of the annual public works planning process and will use
eligible PSNP public works labour (see section 7.2.4 for further detail).

Safety Net Programme Procedures

Changes introduced to PSNP programme procedures include:
• Technical appraisal of Kebele Safety Net Activities, see section 7.2.5
• Processes for preparation and approval of Kebele and Woreda Annual Safety Net
Plans, see sections 7.2.5 and 7.4.
• The introduction of Regional and Federal Annual Safety Net Plans, see sections 7.4
and 7.5
• Public Works processes relating to operations and maintenance, capital budget use
and labour rules, see sections 7.2.4, 7.3, 8.5.3.

Risk Financing
The risk financing mechanism scales up the PSNP to address transitory needs in response
to specific shocks. This has now been designed and will become fully operational in this
phase of the PSNP.

Reporting
A number of new reporting requirements and formats have been produced for the PSNP,
including in the following areas of activity:
• Food reporting, see section 8.4
• Financial reporting, see section 8.3.2
• Annual planning, see Chapter 7:
New reporting formats are being designed as part of the new public works M&E system.

Capacity Building
There will be renewed attention to capacity building at all levels in this phase of the PSNP.
For this, the administrative and management budgets will continue to finance contract staff
and the running costs of the PSNP. A capacity building budget will finance equipment that
is needed for the effective implementation of the PSNP (3.5). In addition, the CIDA-
financed Capacity Building Facility will support capacity building activities at Regional and
woreda levels.

PSNP in pastoral areas

In this phase, the PSNP will expand to new woredas in Somali Region and adopt an
appropriate approach to programme implementation in pastoral areas of Afar, Oromiya,
and SNNP.

Note that this PIM applies to the whole country, but that there are some exceptions and
differences that apply in pastoral areas. At the time of writing the detail of these
arrangements has yet to be concluded. When final plans are made for PSNP in pastoral
areas this PIM will be revised so that all areas of the country have access to full and
appropriate guidance.

14
PART TWO: DESCRIPTION OF THE PSNP

Chapter 3: PSNP Programme Elements.......................................................................... 18

3.1 Introduction ........................................................................................................... 18
3.2 Transfers for chronically food insecure households............................................... 18
3.3 Transfers for households affected by shocks with transitory needs ....................... 30
3.4 Public Works that create sustainable local infrastructure....................................... 36
3.5 Strengthening the effectiveness of PSNP implementation..................................... 43
3.6 Coordination between programme implementers and with other development
efforts 53
Chapter 4: PSNP BUDGET ARRANGEMENTS .............................................................. 67
4.1 Introduction ........................................................................................................... 67
4.2 Transfers .............................................................................................................. 68
4.3 Administrative Budget ........................................................................................... 68
4.4 Capital Budget ...................................................................................................... 70
4.5 Contingency Budget.............................................................................................. 71
4.6 Regional Level Management Budget .................................................................... 72
4.7 Federal Level Management Budget ...................................................................... 73
4.8 Capacity Building Budget ...................................................................................... 74
4.9 Financial Reporting ............................................................................................... 75
Chapter 5: PSNP Institutional and Management Arrangements ...................................... 77
5.1 Federal Level ........................................................................................................ 77
5.2 Regional Level ...................................................................................................... 86
5.3 Zonal level ............................................................................................................ 89
5.4 Woreda Level........................................................................................................ 89
5.5 Kebele Level ......................................................................................................... 93
5.6 Community Level .................................................................................................. 95

15
Chapter 3: PSNP PROGRAMME ELEMENTS

3.1 Introduction ......................................................................................................... 18

3.2 Transfers for chronically food insecure households ............................................ 18
3.2.1 Introduction.................................................................................................. 18
3.2.2 Rules for graduation .................................................................................... 19
3.2.3 Targeting ..................................................................................................... 22
3.2.4 Categorisation of households for conditional and unconditional transfers .... 23
3.2.5 The appeal system ...................................................................................... 24
3.2.6 Improved understanding of programme principles and procedures by clients25
3.2.7 Size of transfers........................................................................................... 25
3.2.8 Type of transfers.......................................................................................... 27
3.2.9 Timing of transfers ....................................................................................... 28
3.2.10 Payment systems ........................................................................................ 28
3.3 Transfers for households affected by shocks with transitory needs..................... 30
3.3.1 Introduction.................................................................................................. 30
3.3.2 Principles for the PSNP Contingency Budget and Risk Financing
Mechanism ................................................................................................................ 31
3.3.3 Key features of the PSNP Contingency Budget and Risk Financing
Mechanism ................................................................................................................ 31
3.3.4 Processes shared by CB and RFM .............................................................. 32
3.3.5 Specific Features of the Contingency Budget .............................................. 32
3.3.6 Specific Features of the Risk Financing Mechanism .................................... 35
3.4 Public Works that create sustainable local infrastructure .................................... 36
3.4.1 What are Public Works under the Safety Net Programme?.......................... 36
3.4.2 Principles of PSNP Public Works ................................................................. 37
3.4.3 Who is Responsible for Public Works? ........................................................ 38
3.4.4 Who should provide labour for public works? ............................................... 39
3.4.5 What kind of public works sub-projects can be undertaken? ........................ 39
3.4.6 Where should Public Works sub-projects be organised? ............................. 40
3.4.7 Timing of Public Works ................................................................................ 41
3.4.8 The Environmental and Social Management Framework (ESMF) ................ 41
3.5 Strengthening the effectiveness of PSNP implementation .................................. 43
3.5.1 Management Systems ................................................................................. 43
3.5.2 Personnel .................................................................................................... 48
3.5.3 Human Resource Development ................................................................... 50
3.5.4 Physical Resources ..................................................................................... 52
3.5.5 Budgeting for Capacity Building ................................................................... 52

16
3.6 Coordination between programme implementers and with other development
efforts 53
3.6.1 Coordination within the PSNP ...................................................................... 62
3.6.2 Coordination beyond the PSNP ................................................................... 63

17
CHAPTER 3: PSNP PROGRAMME ELEMENTS

3.1 Introduction

Section 2.5 referred to the 5 elements of the PSNP, and their relationship with the
PSNP logical framework. They are:

1. Transfers for chronically food insecure households

2. Transfers for households affected by shocks
3. Public Works to create sustainable infrastructure
4. Strengthening the effectiveness of PSNP implementation
5. Coordination between programme implementers and with other and relief
development efforts

This chapter goes through each of these in turn and provides more information on what
each is all about. It focuses on the justification for each one, the underlying concept,
and the rules that apply for each. It does not discuss the steps needed to take forward
each of these elements; that is the subject of Part 3 of this PIM.

This section is organised to assist programme managers and implementers understand

how the PSNP operates. It is not organised according to budgeting or reporting
principles or regulations. For these aspects, please refer to sections Chapter 4:, 8.3.2
and Chapter 10:.

3.2 Transfers for chronically food insecure households

3.2.1 Introduction

Provision of transfers to chronically food insecure people is central to the strategy of

the PSNP to achieve its objective of guaranteeing food consumption and protecting
assets.

In order for this objective to be achieved, transfers must be appropriate, timely and
predictable. When this is so, PSNP clients are able to anticipate their own household
cash- and food-flow, and plan more effectively for food consumption and asset
protection.

When transfers are not timely and predictable, PSNP clients are less well able to plan
their food consumption and asset protection. In particular when transfers arrive late, or
it is unclear whether they will arrive at all or how much will arrive, then the food
consumption and asset protection objectives of PSNP will to be compromised. When
these objectives are compromised, there is little chance of households graduating from
the PSNP.

The PSNP transfer system for chronically food insecure clients relies on a number of
processes [programme systems and rules] to ensure its effectiveness. These include:
• Effective client selection such that the correct people receive transfers, to maximise
the effectiveness of use of PSNP resources. For this to be achieved the PSNP has
procedures and rules for targeting and graduation, categorisation of households for
receipt of conditional or unconditional transfers, appeals against decisions

18
 perceived to be unfair, and the registration of PSNP clients for transparency and
accountability.
• Choice of an appropriate level of transfers, in order to balance the need to achieve
PSNP objectives with affordability and retaining incentives to graduate.
• Choice of appropriate forms of transfers, whether cash or food, taking into
consideration the cash first principal.
• Deciding when during the year transfers should be provided to maximise their
effectiveness.
• Ensuring effective and efficient payment procedures that minimise the
inconvenience to PSNP clients.
• Monitoring of transfers.

This section sets out the information required to implement transfers to chronically food
insecure people correctly. It sets out the rules to be followed for each of the key
processes in turn.

Each year, a process is undertaken to determine which households are eligible for the
PSNP that combines: (i) graduation and (ii) targeting. First, the CFSTF assess which
households currently in the PSNP are ready to graduate from the programme. Second,
the CFSTF assesses the eligibility of other households to enter the PSNP based on the
criteria described below.

3.2.2 Rules for graduation

The term ‘graduation’ as used in the remainder of this document describes the
movement of a household out of the PSNP (the first level of graduation mentioned in
Table 1). This occurs when a household has improved its food security status to a level
that shifts it from being classified as chronically food insecure to food sufficient, and
thus is no longer eligible for the PSNP.

Graduation from the PSNP is defined as follows:

‘A household has graduated when, in the absence of receiving PSNP transfers, it can
meet its food needs for all 12 months and is able to withstand modest shocks. This
state is described as being ‘food sufficient’, which is a lower state than being ‘food
secure’.

Households may also choose to leave the PSNP, if they have more remunerative use
of their time than participating in Public Works. For example, a household may cease
to participate in the PSNP if its members can earn a higher wage through wage
employment or the labour investment in own production is more valuable than time
spent participating in the public works. This is known as ‘self-graduation’.

As part of the annual targeting exercise (see 7.2.1), the PSNP assesses the food
security status of each client household to determine whether they have reached the
criteria for graduation. This involves the assessment of household assets (land holding,
livestock holding, food stock, etc.) using regional benchmarks for graduation. These
benchmarks are not an actual measurement of all household assets. They rely on the
assessment of a small number of proxy indicators, including livestock holdings, land
holdings and education status to determine food security status.

19
a) Graduation benchmarks

When households reach the Regional benchmark for asset holdings, including only
those assets wholly-owned for which a loan is not outstanding, they are ready to
graduate. In this situation, they remain in the PSNP for a further year, and will then
leave the PSNP.

These benchmarks describe the level of assets a food sufficient household is likely to
have in each Region. When the status of a household’s assets reaches this level, the
household is no longer eligible for support from the PSNP. Until this point, a household
remains eligible to participate in the PSNP and cannot be taken off the PSNP client list
or PASS payroll. The regional graduation benchmarks are in 0

The benchmarks use household assets to verify and refine the eligibility of households
to participate in the PSNP. This is because assets better reflect lasting changes in
chronic food insecurity status than income. Income tends to fluctuate between seasons
and years, while assets are likely to remain more stable, except for periods of severe
shocks. In addition, it is often difficult to accurately measure income because people
are reluctant to share such information and it is challenging to estimate the value of
own production, for example. In contrast, assets tend to be visible and relatively easy
to count.

However, when the status of a household’s assets is reviewed, those assets that are
owned by the household are considered. Assets not yet fully-owned by households (an
asset bought with credit that is not fully paid-off) will be considered by assessing the
value of the asset and deducting the outstanding debt. The resulting value of the asset
will be added to the values of the other assets reviewed. If the total value of all assets
owned by the household is equal to or greater than the benchmarks for graduation, the
household is deemed to be food sufficient.

The Regional benchmarks are designed to be applied in a flexible manner that

considers a range of household assets. In addition, the Regional benchmarks take into
account differences between livelihood zones:
• The level of the benchmarks may differ among livelihood zones to better assess
food sufficiency in each zone; and,
• The benchmarks may consider differences in types of assets holdings in each
livelihood zone.

b) Principles for use of benchmarks

The following core principles inform the use of benchmarks for assessing graduation:
Do not undermine core function of the PSNP
• Transparency: the system must be transparent to external actors (donors and
federal/regional government) and to PSNP clients
• Accountable: the system must be accountable to PSNP clients
• Simple, responsive and relevant: the benchmarks should be easy to use,
livelihood specific and revised periodically to remain relevant
• Flexible: the system should be implemented in a flexible manner (similar to
targeting)

20
• Balance incentives: the system needs to be responsive to both positive and
negative incentives.
• Community awareness and involvement: communities are best placed to
operationalise graduation

c) The risks of graduation

Removing predictable food and/or cash transfers from households who need them may
have negative effects on the livelihoods of graduated households, which some, but not
all, will be able to overcome. These negative effects are likely to be most severe
among households that are graduated too early from the Programme. In addition, if the
process is not adequately understood and lacks transparency, graduation may have
negative social affects among communities.

To minimise the risks, a number of safeguards have been put in place to better ensure
that the livelihoods of graduated households are protected and to respond to possible
social implications of graduation. These safeguards are:
• Community awareness of and support for graduation
• Graduated households will be monitored through the current FSP monitoring and
evaluation system.
• Graduated households will continue to have access to HABP support on a priority
basis
• The current appeals mechanism will respond to appeals related to graduation
• Graduated households who subsequently become chronically food insecure can re-
enter the Programme
• Balancing incentives for graduation

Community awareness of and support for graduation. A number of the risks of

graduation raised above can be reduced through broad-based support for graduation
among the populations of PSNP woredas. Understanding of the concept of graduation
from the PSNP and the mechanisms for assessing household graduation need to be
understood at all levels, particularly among communities. This is because community
support for graduating household from PSNP can ensure that the process for
graduating households is implemented in a fair and effective manner.

Monitoring and Evaluation of graduated households. The PSNP will monitor

households that have graduated from the PSNP, in addition to the range of information
it currently collects. Among other variables to be collected, the number and
composition of households deemed eligible for graduation need to be reported
annually. The FSP monitoring system will track graduated households in a way that
allows an analysis of changes in their asset levels over time.

The current monitoring system of the FSP will be adjusted to include indictors which
allow monitor the performance of graduated households. The annual appeal audit will
also look into issues related to graduation.

The check lists and tools for the Rapid Response Mechanism will be revised to detect
problems related to graduation that warrant immediate attention, thus reducing any
potential serious humanitarian risk and implementation problems.

21
Evaluations of the PSNP carried out at periodic intervals will include a focus on the
graduation process and the progress of graduated households.

Continued access to HABP support. Households that have graduated from the
PSNP remain eligible for HABP interventions on a priority basis.

Appeal mechanism. Households who believe that they have been wrongly assessed
for graduation from the PSNP have the right to appeal this decision. These appeals will
be considered by the Safety Net appeals process, which should deal with all appeals in
a transparent and timely manner. Households whose appeals are successful are
eligible to rejoin the Programme.

Re-entry into the Programme. A household that has graduated from the PSNP and
subsequently suffers a shock that depletes its assets will be included in the
Programme when it has become chronically food insecure. It will re-enter the PSNP
through the annual community needs assessment and verification by woreda.
However, if a household that has graduated from the PSNP requires assistance prior to
the annual needs assessment, the contingency resources can be used to cover their
needs in the short-term to prevent asset depletion.

Balancing incentives for graduation. A range of different implicit and explicit

incentives are linked to graduation. For example, there are incentives for woredas to
demonstrate progress and graduate people; incentives for local leaders to maximise
the resources available to the community and thus to keep people in the programme;
and, households to demonstrate graduation or, conversely, to avoid graduation. The
system for operationalising a measurement for graduation needs to be responsive to
such incentives. The use of incentives to encourage households to graduate must be
undertaken with care.

3.2.3 Targeting

Targeting under the PSNP is a combined administrative and community targeting

approach. The administrative elements include the provision of a PSNP client
allocation (the number of clients which can be targeted in a specific region, woreda,
kebele etc.), input into the key targeting criteria used within a locality, and oversight of
the accuracy and transparency of the targeting system. The key community elements
of the approach include the actual identification of target households by the Community
Food Security Task Force and the verification of the client list by a public meeting in
which the entire PSNP client list is read out and discussed.

(a) Criteria for selection of households

The following basic criteria define eligibility for the PSNP and are applied during the
targeting procedure:
• The households should be members of the community;
• Chronically food insecure households who have faced continuous food shortages
(3 months of food gap or more per year) in the last 3 years;
• Households who suddenly become more food insecure as a result of a severe loss
of assets (financial, livestock, means of production, assets), especially if linked to

22
 the onset of severe chronic illness, such as AIDS, and are therefore unable to meet
their food needs even during periods of normal rain; and,
• Households without adequate family support and other means of social protection
and support.

Supplementary criteria to assist in the refinement of the client list (further guidance on
supplementary criteria may be provided by the WFSTF and forwarded by the KFSTF):
• Status of household assets: land holding, quality of land, food stock, labour
availability, etc;
• Income from agricultural and non-agricultural activities; and,
• Specific vulnerabilities such as female-headed households, households with
members suffering from chronic illness, such as AIDS, elderly headed households
caring for orphans, etc.

A number of further rules apply to the targeting process:

• Full Family Targeting: If a household is identified as being chronically food

insecure and eligible for the PSNP, all household members will be listed as clients
of the programme.
• Polygamous households: The ‘family’ should be treated as the man and one wife
and the children of that wife, while each other wife and her children should be
treated as a separate female-headed household. Each of these separate
households should be assessed as to whether or not they should be eligible for the
PSNP.
• Divorce: In the case that a husband and wife become divorced during the course
of their inclusion in the PSNP, all family members residing in the kebele should
continue as clients for the year. The transfer each household receives should
correctly reflect the number of family members dwelling together.
• Duration of client eligibility: Clients will remain in the PSNP for multiple years
until they reach the graduation threshold. They will not be excluded from the PSNP
through the annual retargeting exercise if they are better off than other households
but have not yet reached the graduation threshold, as defined by the regional
graduation benchmarks

3.2.4 Categorisation of households for conditional and unconditional transfers

Households meeting the entry criteria to the PSNP and with adequate family labour
receive transfers conditional on engaging in Public Works. They are considered eligible
for conditional transfers and become part of the labour force for Public Works.

Households meeting entry criteria to the PSNP but without ability to supply labour for
Public Works receive unconditional transfers. Such support is known as ‘Direct
Support’, and households in this category do not work in return for their transfers.
These households may be composed of:
• People who are too young to qualify for Public Works, i.e. 16 years of age and
under
• People who are too old to qualify for Public Works.
• Physically disabled people
• Mentally disabled people

23
• People who are temporarily unable to work who would normally do so. This
includes women fromt he sixth month of pregnancy; lactating mothers in the first
ten months after birth; and people who are sick.

However there are a large number of households in the PSNP which fall between
these two extremes. These are households which have some labour, but they have
some members who cannot work. In these circumstances, the able-bodied household
members work extra days on behalf of those who cannot work, in order to earn the
non-worker’s entitlement to PSNP transfers. These households are classified as Public
Works households, even though not all members work on public works.

The PSNP establishes an upper limit (a ‘labour cap’) on the number of days any one
able-bodied individual can work to earn transfer entitlements for other family members.
This limit is 15 days per person per month. This exists to ensure that able-bodied
members of households are able to keep some time for working on other livelihood
enterprises outside the PSNP. This is important since the expectation is that a majority
of targeted households can graduate from PSNP. For this, households must invest in
livelihood activities. Section 7.2.1.3 provides some illustrative examples of this case to
show how actual work requirements are calculated in practice.

Households with many able-bodied members may choose to assign the complete work
requirement to one or more able-bodied members to free up the labour of other
members to carry-out livelihood activities. This may result in one or two persons
working more than 15 days. This is allowed as it enables the household to both work
on the PSNP and invest in other livelihood activities. However, the DA and CFSTF
should ensure that the arrangement is not excessive nor in violation of the principles
described in the paragraph above.

Households with able-bodied members participating in public works may experience

periods when some members are temporarily unable to work, such as women from the
sixth month of pregnancy; lactating mothers in the first ten months after birth; and men
and women who are sick. If the person who is temporarily unable to work, such as the
pregnant woman, is the only able-bodied person in the household, the household is
shifted to Direct Support until she is able to work again (10 months after the birth of her
child). If there are other able-bodied people in the households, their work requirement
is increased – up to the labour cap – to compensate for the person who is unable to
work.

In addition, the number of hours that men and women spend working on PSNP public
works tends to be 8 hours per day. However, in many areas women (or men) are
allowed to start work late and end work early to allow them to prepare food, care for
children and carry out other household work. In some areas, the number of days that
women work for their PSNP transfer has been reduced to respond to the fact that
women remain responsible for food preparation and child care, among others, even
when they must work on PSNP public works.

3.2.5 The appeal system

An appeals process has been established for all aspects of PSNP implementation and
includes a Kebele Appeals Committee and access to the Woreda Council for
unresolved complaints. While it is expected that concerns about the client selection

24
and graduation processes may make up the majority of appeals, clients and non-clients
can also make complaints about the management of public works, timeliness and
completeness of transfers and any other perceived abuses of the PSNP. A list of
grievances raised to the Kebele Appeals Committee, with the outcome of these
grievances, is posted regularly in kebeles in a location that is accessible to all
community-members.

Grievances taken to other formal structures at community, kebele or woreda level,

such as women raising grievances to the Women’s Affairs Office, will be transmitted to
the KAC for action and resolution.

The KAC will consider each grievance on a case-by-case basis. When the KAC rules
that the grievance is legitimate, the household is included in the PSNP regular budget
or under the woreda contingency budget. If a household is appealing against its
exclusion from the PSNP, it should not be asked to identify households in the PSNP
that are less poor that it should replace either to the KAC or in public. Instead, if the
household is eligible for the PSNP, the woreda contingency budget is used to include
that household in the PSNP for one year.

A list of possible complaints has been included in Box 5 in section 7.2.2.

3.2.6 Improved understanding of programme principles and procedures by

clients

A number of efforts will be made to improve the understanding by all community

members, including programme clients of key principles and procedures of the PSNP.
Efforts will include:
• Roll out of a Communication Strategy at Federal and Regional levels which
will target a number of audiences (international, national, implementers,
community and clients) using a range of means (radio, print, posters etc.). This
is not described in the PIM as there is a separate Communication Strategy.
• Posting of Client Lists. Once the list of clients has been approved at woreda
level, the list of clients is posted in public locations on the woreda and kebele
centres. If possible, this list is also sent to all PSNP communities to be posted.
This will help ensure that clients and non-clients in PSNP areas are well
informed of which households will participate in the PSNP for the coming year.
• Awareness raising around Client Bill of Rights and Responsibilities. This will
be posted next to the client list. The Client Bill of Rights and Responsibilities is
also be posted in the woreda and kebele centres and, if possible, among PSNP
communities. This should remain posted throughout the year. It is also included
on Client Cards (see Annex 6).
• Client Cards. All clients will be issued with a client card with their name,
photograph, details regarding their entitlements, and space to record receipt of
transfers. Further details regarding the client cards can be found in the section
below (see Annex 6).

3.2.7 Size of transfers

a) Food transfer calculation

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The basis for the level of transfers is a minimum cereal allocation to each household
member to allow them to have sufficient food each month, and therefore to guarantee
food consumption. This is considered to be 15kg of cereals per person per month.

For recipients of conditional transfers, the level of food transfer provided per day of
work is calculated on the basis that 5 days should be worked for each person receiving
transfers. This is the level agreed as reasonable for a chronically food insecure person
who also has other livelihood activities to consider. Consideration may be given to the
heavy workload of women in rural areas: a woman may be asked to work fewer days
for the same transfer (i.e. 15 kgs) as her male counterparts.

Therefore the daily food transfer is calculated as 15kg of food divided by 5 days, which
equals 3kg of cereal per day.

In USAID-supported PSNP woredas, additional transfers of oil and pulses may also be
provided, to ensure a more-balanced food basket. This is an additional benefit to PSNP
clients and is not an entitlement, although this additional provision is recorded on the
Client Card in these areas.

PSNP clients entitled to unconditional transfers receive the same transfer.

Calculating the monthly PSNP food wage rate for each household is, currently:

3 kgs of cereals x 5 days of work x 6 months X number of household members

b) Cash wage rate determination

The PSNP cash-first principle determines that cash is the preferred mode of transfer in
all areas where markets are functioning. It is therefore important that the wage rate
accurately reflects the purchase cost of food in order that the PSNP fulfils its
consumption smoothing function. Furthermore, a failure to ensure that cash rates are
equivalent to the price of food will result in PSNP clients preferring food transfers.

The cash transfer is calculated on the basis of the cost of buying 3kg of cerealx in the
market. The daily wage rate per person is the cost of 3kg of cereal in the market. At the
time of writing (May 2010) this is 10 Birr per day.

The cash wage rate does not vary to allow for the purchase of oil and pulses.

PSNP clients entitled to unconditional transfers receive the same transfer.

The purchasing cost of food varies over time and location. And the level of the wage
rate has an important influence on overall PSNP programme costs. For these reasons
the wage rate is reviewed annually in a Federal-level study. Following this annual
study, in June of each year, the wage rate is agreed for the coming year. The decision
to adjust the cash wage rate or not based on the annual purchasing power study will be
reviewed by a trigger mechanism in January to protect the purchasing power of the
cash transferxi.

In exceptional circumstances severe market food price fluctuations may require an

amendment to the cash wage rate at intervals shorter than one year. In this situation,

26
DRMFSS may provide additional transfers to areas that are severely affected or pay
transfers for two months in a single month, although this would be financed through the
Risk Financing facility (see relevant section below)xii. This decision is communicated by
FSCD to Regions and woredas.

Calculating the monthly PSNP cash wage rate for each household

Cash wage rate x 5 days of work x 6 months X number of household members

3.2.8 Type of transfers

The PSNP aims to provide transfers in the form most needed by clients. The process
for expressing client demand for cash or food transfers through the woreda is
described in section 7.3.2 and in Table 2.

Preferences for cash payments can usually be accommodated. Cash transfers are
made where cash resources are available and:
• Food is available for purchase in the local market (or traders, service cooperatives
can be relied on to bring food in if people have cash to buy it);
• The local market will not be unduly distorted by the influx of cash, or the effects
would be less detrimental than an influx of food; and
• The woreda administration has the required support systems in place (for
transferring/depositing funds, accounting and auditing).

However the preference for food cannot always be met for the following reasons:
• Food availability and management may sometimes constrain food transfers
• Food transfers may be used as a risk management tool at Federal level to address
food supply issues when needed

For these reasons the decision on the balance between cash and food transfers is
made at Federal level. Regions and woredas are informed in writing each season what
the arrangements will be for that year. This occurs as part of the annual planning
process.

It is possible for a single woreda to decide to make payments in cash in some kebeles
and in food in other kebeles, depending on the factors in the following table. A single
woreda may also decide to provide cash transfers for a duration of time, followed by
food transfers. As a general starting point, cash should be given after the harvest when
food is in good supply and food may be given in the hungry period leading up to the
harvest if food is scarce and unavailable in the market or at a very high price.

Table 2: Factors to Consider when Choosing Cash and/or Food as Payment

Transfer Factors to Consider

Near food surplus areas (in same or neighbouring woreda)

Cash Availability of active food markets
Preferences of the community
Cash management capacity (presence of finance officers, cashiers,
safes, transport, security at woreda level).

27
 Preferences of the community
Food Absence of food markets near food insecure kebeles leading to a
devalued transfer
Lack of experience in cash management and better food
management capacity

3.2.9 Timing of transfers

In the current phase of PSNP, limitations on timing of transfers have been relaxed. This
is because there is variation across the food insecure woredas on the timing of rainy
seasons, peak agricultural seasons, and hungry seasons. The PSNP aims to provide
transfers when they are most needed, and this requires flexibility in transfer scheduling
to accommodate these differences.

Timing of transfers are therefore driven by a bottom-up planning process in which

woredas express their requirements, and these inform budgeting and planning at
regional and Federal levels. This process is described in sections 6.2 and Chapter 7:.

In determining when during the year public works will be carried out, it is important to
consider when the heaviest workload falls on woman as well as men, as women in
agricultural areas, for example, tend to work most during the pre-harvest and harvest
periods, and that this tends to coincide with the period of lowest household food
availability.

3.2.10 Payment systems

A core principle of the PSNP is that payments to Public Works and Direct Support
clients are timely and predictable. This means that all payments are made to clients
within 6 weeks after the end of the month when the public works were completed. To
be predictable, payments are made regularly, that is, payments are made at the same
time each month or within a set period after public works are completed. To be
predictable, clients must also be aware of when the payment will be made, where it will
be made and how much it will be in cash or food. Any and all delays in the payment
process MUST be communicated as soon as a possible to clients.

PSNP cash transfers flow directly through MoFED to BoFED and then WOFED based
on requests by the Food Security line agencies (see section 8.3). PSNP food transfers
follow the processes established for emergency response through Government, WFP
or NGO systems (see section 8.4) to local distribution sites or warehouses, where food
is received by the storekeeper and held until payment day.

For public works participants, payments are made on the basis of attendance, quantity
and quality of work completed as determined by the DA and Food Security Taskforce,
in consultation with the foreman. However, should there be delays in public works
arising from administrative problems, such as interruptions in planning or procurement,
payments to clients are not delayed. Payments to direct support clients are made
monthly regardless of the status of public works payments.

Use of the payment software – PASS – is mandatory in all PSNP woredas in Amhara,
Oromiya, SNNP and Tigray Regions, including those supported by NGOs. WOFED will

28
always use the PASS to prepare the attendance sheet and payroll. Should the PASS
malfunction, WOFED, in coordination with the WOARD, will contact the IT Helpdesks at
the Regional level for assistance. However, payments to clients should not be delayed
if these problems persist. In this case, attendance sheets and payrolls can be prepared
in Excel. Once PASS is up and running, the information from Excel will be entered into
PASS. The Excel file with the record of clients receiving their payment (through signing
or thumbprint) will be kept on file for future reference.

Each household participating in the PSNP receives one payment each month that is
sufficient to cover all household members at the prevailing wage rate (sections 3.2.7
and 8.6). This payment can be collected by the household head and/or his/her spouse.
If there is a disagreement in the household, such as a pending divorce, the household
may request the CFSTF to split the payment into two or more parts, each collected by
the responsible member of the household. The CFSTF communicates this request to
the KFSTF, which ensures that payment is made in the manner requested.

PSNP client cards provide the basis for all transfers to clients and the person collecting
the PSNP payment MUST present the PSNP Client Card to receive payment. They
record the names of the people entitled to receive transfers, and the size of their
entitlement. See section 7.2.3 for more information.

Clients will not receive their payments if they do not present their Client Card to the
cashier. If a client does not have their card, the client and cashier will mutually agree if:
(i) the client will travel to the woreda capital to collect the payment from WOFED, (ii) if
the cashier will return at a later day that month; or (iii) if the payment will be made
during the next payment cycle. The cashier should, to the extent possible, assist the
client to receive their payment as soon as possible. The cashier makes a note of the
agreement reached with the client.

If a client is unable to collect his or her payment, such as an elderly or disabled Direct
Support client, someone else may collect the payment on his or her behalf. This should
be agreed with the Community Food Security Taskforce. The CFSTF then informs the
KFSTF, which informs the cashier that this arrangement has been made.

If the client feels that he or she did not receive the correct payment, they should NOT
sign the payroll and should instead ask the cashier to verify that the payment is correct.
If this does not resolve the problem, the client can lodge a complaint with the Appeals
Committee. The Appeal Committee then investigates within 10 days.

Under NO circumstances should clients be asked to pay from their PSNP payment any
costs associated with the payment process, such as having their identification verified,
their Client Card checked or their name found on the PASS payroll. All payments to
PSNP clients MUST be made in full, as stated in the PASS payroll.

If the kebele of woreda officials believe that elders should be asked to verify the identity
of PSNP clients, for example, and that they should be paid for this service, this
payment should be made from the administrative budget of the PSNP NOT from
clients.

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3.3 Transfers for households affected by shocks with transitory needs

3.3.1 Introduction

The PSNP is designed to provide predictable support to households with predictable

needs – those households that are chronically food insecure. However shocks – such
as drought – can create food insecurity among people who in a normal year maintain
their livelihoods without needing support from the PSNP or the emergency response
system. These are known as transitory needs – or transitory food insecurity – which
describes temporary needs that arise from a specific and temporary shock.

If these households do not receive support in response to such transitory needs, their
coping strategies may lead to a reduction in livelihoods assets. This increases the
potential for these households to become chronically food insecure.

To avoid a transitory needs turning into new chronic food insecurity, the PSNP
includes: (i) a Contingency Budget, and (ii) a Risk Financing Mechanism (RFM) and
budget. These two mechanisms together enable the PSNP to ‘scale-up’ in response to
transitory needs to a pre-determined ceiling. Scaling up involves the PSNP temporarily
expanding to include an increased caseload for the duration of the shock, and then
scaling down again when the shock has passed. The PSNP is only able to expand up
to the level of available resources in the Contingency Budget and Risk Financing
Mechanism. Any transitory needs that exceed this amount are covered through the
emergency response system.

This expanded caseload contains two categories of people:

• Existing PSNP clients for whom the current level of transfers is unable to deal with
the shock, and who therefore need additional ‘top-up’ transfers to maintain their
food consumption and asset protection
• Non-PSNP clients who are ordinarily not in need of PSNP support but who need it
on a temporary basis until the shock passes.

The aim is for an early and preventive response: the PSNP scales-up early, before the
effects of the coming shock are felt, so that people will receive support when they need
it and will have no need for destructive coping mechanisms. This aims to achieve the
livelihood protection for poor households the PSNP was designed to provide, and to
prevent new households from becoming chronically food insecure.

To achieve this, it is important that the PSNP regular transfers, Contingency Budget,
RFM and the emergency response system work in a harmonised way. As a result,
PSNP annual plans and contingency plans at all levels (described below and in the
RFM Guideline) should be integrated. The continual updating of the contingency plans
and analysis of early warning data will ensure that a smooth transition between
instruments can be achieved.

This section first presents shared features and principles of the Contingency Budget
and Risk Financing Mechanism. It then describes some specific features of each in
turn. Detail on the steps to follow for both the contingency budget and the RFM are
found in Chapter 9 and the Risk Financing Mechanism Guideline.

30
3.3.2 Principles for the PSNP Contingency Budget and Risk Financing
Mechanism

The following principles guide the use of both the Contingency Budget and the Risk
Financing Mechanism:
• Early and preventive response to protect livelihoods rather than lives. The key to
both is an early preventive response.
• Primacy of transfers. In common with its parent PSNP, issuing of transfers should
gain priority over administrative factors when a choice needs to be made, since it is
about saving livelihoods and lives.
• No undermining of the chronic response. It is important that the general rules of the
PSNP are followed so that the larger chronic function of the PSNP is not
undermined by use of the Contingency Budget or RFM.
• Follow PSNP rules and procedures. As an extension of the PSNP, the CB and
RFM must follow the rules and procedures of the wider PSNP.
• Part of wider multi-stakeholder system, not a project. The Contingency Budget and
RFM fall within the PSNP which itself is part of the Government of Ethiopia’s
system for dealing with food insecurity.
• Continuous support and smooth transitions between instruments and actors. The
focus of the Contingency Budget and RFM is on an effective response and
protection of livelihoods, rather than simply saving lives. They must ensure
continuity with each other and the emergency system to address transitory needs
whatever the scale of a shock.

3.3.3 Key features of the PSNP Contingency Budget and Risk Financing
Mechanism

The PSNP Contingency Budget and Risk Financing Mechanism are fully aligned with
the PSNP regular programme. The following are their key design features they share:
• Application in PSNP Woredas only: The PSNP Contingency Budget and the Risk
Financing Mechanism can be used only in PSNP woredas.
• Meet two types of transitory needs: extension of support to current PSNP clients
and support to new clients with transitory needs. Both mechanisms may be applied
to two types of transitory needs: those arising from the need to extend the duration
of transfers to existing PSNP clients, and also those required by non-PSNP clients
subject to a shock
• Provide a cash- or food-based response: Both CB and RFM respond to the cash
and/or food needs of households that require assistance to protect their livelihoods.
• PSNP Contingency Budget does not replace the emergency system: it will still
require robust emergency response capability in PSNP woredas for larger shocks
or non-cash responses. The CB and RFM fit into the spectrum of responses to food
insecurity and are not the sole instrument for addressing transitory needs in PSNP
woredas. When the shock exceeds the capacity of the CB to respond, Regions can
appeal to the Federal level for RFM resources. If the shock is beyond RFM
resources, or where non-cash/food responses are required, the emergency
response system should be activated.
• Shared responsibility for delivery by EWRD and FSCD under the State Minister
for Disaster Management and Food Security. The PSNP is coordinated by the
FSCD but is a multi-stakeholder programme. Decisions regarding the use of the
Contingency Budgets are made by the Woreda Council and the Regional FSP

31
 Taskforce. For transitory needs, this is based on analysis carried out by the Early
Warning and Response Department, with input from the Food Security Department
at regional level. The Contingency Budgets also link into the RFM, for which EWRD
is responsible. For this, good coordination and communication is essential.
• Temporary Scalability: The CB and RFM serve to temporarily scale up existing
PSNP processes to address transitory needs, and then scale them down again
when the need passes.
• Timing of response: The CB and RFM are designed to enable a response at any
time of year, not just at defined times as for the PSNP regular programme, provided
there are available resources. This allows the CB and RFM to respond to needs
whenever they are experienced, and allows high flexibility to complement the core
PSNP support.

3.3.4 Processes shared by CB and RFM

The CB and RFM both use PSNP systems and processes. However, to respond to
transitory needs, two additional components beyond the regular PSNP are required.
These are:

Early Warning System: Use of the Contingency Budget, particularly at Regional level,
is driven by the Early Warning System (EWS), which also drives the use of the RFM.
The use of the EWS for both the Contingency Budget and RFM ensures that the two
mechanisms work in harmony and in a sequenced fashion, which is what they are
intended to do. The EWS for the RFM, which the Contingency Budget also uses,
utilises and integrates a number of data sources that already exist. The principle
source of primary early warning data derives from the revised EWRD EWS. This
system works through data collection at the PA/kebele level, which is collected at the
woreda level, sent on to the Regional level for further collation and analysis and finally
transmitted to the Federal level, where it is combined with other data sources and
further analysed. Seasonal assessments determine and predict levels of needs and
type of assistance required in order to protect livelihoods.

Contingency Plans: In the context of Risk Financing, contingency planning is a

process of having a set of precautionary measures that should be taken in PSNP
woredas where transitory food insecurity is anticipated. It is meant to allow efficient,
effective and equitable use of resources to appropriately meet potential humanitarian
needs while at the same time protect livelihoods of the people in PSNP woredas.
Contingency planning allows advance preparation and expedites programme
implementation as soon as the EWS confirms the likely occurrence of shock(s) and the
release of Contingency Budget resources. Where possible, Regions ensure
consistency of approaches and proposed response in woreda contingency plans
according to livelihood zones.

3.3.5 Specific Features of the Contingency Budget

a) What can the Contingency Budget funds be used for?

The Contingency Budget is one of a larger set of instruments designed to respond to

transitory food insecurity requirements of both PSNP and transitory food insecure
households, together with the Risk Financing Mechanism and the emergency response

32
system. The use of the PSNP Contingency Budget should be planned in a way that
considers when a possible transition to these other funding sources might be needed.
It is important to identify this early to ensure a smooth transition since requesting funds
from higher levels can take a long time.

The Contingency Budget is held at woreda and Regional level in the following way:

The Woreda Contingency Budget is used to:

• Provide support to CFI households that qualify for inclusion in the PSNP but have
not been entered in the regular programme, either because 1) their need was
recognised after the annual retargeting exercise; 2) the regular programme budget
is insufficient to include them; 3) the households have become CFI due to a shock;
4) a households appeal has been successful.
• Respond to transitory needs among existing PSNP clients; and,
• Respond to transitory needs among non-PSNP households based on early warning
data collected by the woreda.

The Regional Contingency Budget is used to:

• Address transitory needs among PSNP clients; and,
• Address transitory needs among non-PSNP households (up to 10% of the Budget).

Note that the Regional Contingency Budget should NOT be used for covering
additional chronic caseload – it is reserved exclusively for transitory needs among
PSNP and non-PSNP clients. Regional Contingency Budget resources should normally
be used before Risk Financing Mechanism resources. The exception is when it is
apparent that the severity and extent of the impending shock is beyond the capacity of
the woreda and Regional Contingency Budget. Then, the woreda and Regional
Contingency Budget will be used in tandem with RFM resources.

b) How are Contingency Budgets calculated?

The contingency fund is allocated in cash and/or food based on a set formula as
specified in section 4.5 on Budgeting in this PIM. The amount of contingency fund each
Region and woreda will receive in cash and food is stated in the PSNP Annual Plan.

The formula for determining the Contingency Budget and the procedures to allocate
the Contingency Budget to woredas and Regions is different for cash or food. These
differences are described below (see Chapter 4: on the PSNP Budget for more details):

Cash

A woreda contingency fund calculated on the basis of 5% of each woreda’s base

programme cost (calculated from the cash transfer budget of the woreda) is held by the
woreda. The woreda Contingency Budget is made up of resources for transfers (80%)
and capital (15%) and administrative (5%) budgets, in the same way as the regular
PSNP budget. The cash Contingency Budget is disbursed to the woreda through the
same channels as the cash transfers, together with the cash transfers - on a bi-monthly
basis. The budget is managed by the WOARD in close consultation with the WOFED.
The decision to use the budget is made by the Woreda Council.

33
The Regional contingency fund is calculated on the basis of 15% of each Region’s
base programme cost (calculated from the cash transfer budget of the Region) and is
held by the Region. The cash Contingency Budget is transferred through the same
channels as the cash transfers and is provided to the Region together with each of the
four rounds from Federal level. The BoARD is responsible for managing this budget in
close consultation with BoFED. The decision to release the budget is made by the
Regional FSP Steering Committee.

Food

A Contingency Budget in food stock calculated on the basis of 5% of each woreda’s

food allocation is held by the woreda in NGO woredas. This 5% is disbursed to the
woreda together with the regular food transfers. The Woreda Rural Development Office
is responsible for the management of these stocks. The Woreda Council authorises the
release of these stocks. Only NGO woredas hold Contingency Budget in food, other
woredas hold Contingency Budget in cash.

A Contingency Budget in food stock calculated on the basis of 15% of the national food
allocation is held by FSCD in EWRD warehouses or by the WFP at the federal level.
Due to the additional logistics required to store food and the risk of damage to
commodities, the 15% Regional food contingency is held at the Federal Level. The use
of regional food contingency budget is approved by the Regional FSP Steering
Committee. On the request of the Region, FSCD then issues the transfer of this stock.

Cash contingencies in woredas receiving food

The Contingency Budget can be allocated in cash, even when the regular budget
includes food transfers. This is decided by the JSOC and approved by MoA at the
beginning of the year based on available resources.

In this case, the Contingency Budget is calculated based on an ‘all cash base
programme costs’xiii. The cash contingency is transferred through the same channels
as those used for regular cash transfers and the capital and administrative budgets.
The cash contingency is sent to woredas and Regions in line with the regular
disbursement schedule 8.3. Transfers resourced through the Contingency Budget are
then provided in cash; these cash resources CANNOT be used to purchase food at
Regional and/or woreda level.

Contingency Budgets in areas supported by NGOs

In PSNP areas supported by NGOs, as listed in Annex 2, the Contingency Budget is

always calculated in food. However, the decision-making process to use PSNP
Contingency Budgets held by NGOs is the same as that for the Government
implemented programme.

c) Transitioning to the Risk Financing Mechanism

The reports produced regularly through the EWS should continue to monitor the
situation as it evolves. The regular reports should clearly state if the situation is
deteriorating and additional resources are required. If the woreda and Regional
Contingency Budgets are exhausted, likely to be exhausted or otherwise committed,

34
the Region is responsible to transmit a request to the Federal Level for Risk Financing
resources. The process for this is outlined in the Risk Financing Guidelines.

This information should be used at woreda and Regional level to forward plan to
ensure a smooth transition from the Contingency Budgets to Risk Financing and, if
needed, the emergency system. This second transition is particularly important if there
are non-food needs among the affected communities. The transition from the Risk
Financing to the emergency appeal system is described in the RFM Guideline.

3.3.6 Specific Features of the Risk Financing Mechanism

Unlike the Contingency Budget, the Risk Financing Mechanism is fully described in a
separate set of Risk Financing Mechanism Guidelines. Some of the specific features
are described here.

a) Risk Financing Mechanism Pillars

The Risk Financing approach is based on the idea that if the response to a shock can
be initiated early, then people will be supported when they need it and they will have no
need for destructive coping mechanisms. Thus the shock is prevented from becoming
an emergency for these people, and once it has passed, they continue their lives with
their livelihoods intact.

For this to be possible, four conditions need to be fulfilled which together comprise the
four pillars of a risk management approach:
• Early Warning. Effective early warning systems need to be in place to indicate the
need for a response as early as possible.
• Contingency Plans. Plans need to be in place so that when a shock is indicated
key actors in the system have already thought through how they need to respond.
• Contingent Financing. Resources need to be ready and available to avoid the
major time delays associated with the appeal process.
• Institutions and Capacity. Adequate institutional arrangements and capacity need
to be in place or able to be put in place quickly to allow the pre-prepared plans to
be implemented.

b) How is a Risk Financing Mechanism Response Triggered?

The Risk Financing Mechanism is triggered by the Early Warning System, part of which
is the Regional request mentioned in section 9.3. Triggers according to observed shock
are too late. Unlike the Contingency Budget, the Risk Financing Mechanism budget
and decision-making process is held at federal level.

When the EWS triggers, a report requesting the release of the RFM funds is prepared
by the EWRD and sent to the RFM Management Committee together with a request for
this Committee to meet. This leads directly to the RFM Management Committee
requesting the release of funds from the RFM account Release of funds stimulates the
updating of Contingency Plans and through a process in which bottom-up needs are
reconciled with top down resources, funds are released for onward distribution.

c) What happens when a Risk Financing Mechanism response is triggered?

35
The RFM is designed to proceed through a number of phases when a response is
triggered by the Early Warning System, as follows:

Table 3: Overview of Risk Financing Mechanism Phases

Phase Main Activities

Routine Preparing a Contingency Plan at Woreda level with Action Plans for
Activities Federal and Regional stakeholders, covering the needs of all
(Ch5 of RFM kebeles in the woreda (regardless of CFI status).
Guidelines) Collecting and analysing Early Warning data
Maintaining the capacity of the system to run the RFM
What to include in the RFM budget
Phase 1: Actions when Early Warning is triggered
Early Warning Releasing funds at the Federal level to Regions
Triggered Updating the Contingency Plans
(Ch 6 of RFM Operating the Finance systems at the Federal, Regional and Woreda
Guidelines) levels
Operations of the RFM Management Committee
Scaling up capacity
Phase 2: Management of the RFM fund
Resource Managing cash and food resources
Transfer Financial reporting under Risk Financing
(Ch 7 of RFM Scaling up capacity in terms of Staff, Skills, Transport and Other
Guidelines) Facilities
Phase 3: Activating the Contingency Plan
Implementing Ensuring sufficient resources to meet needs
Contingency Ensuring sufficient capacity to scale up
Plans Deciding when to scale up the Contingency Plan
(Ch 8 of RFM Requesting further resources
Guidelines) Making distributions to clients
Monitoring resource use and future needs
Deciding when public works are no longer appropriate
Phase 4: Evaluating when transition to Humanitarian Resource is needed
Exit or Ensuring a smooth transition to Humanitarian Resource
transition Evaluating when Risk Financing is no longer appropriate
(Ch 9 of RFM
Guidelines)
Phase 5: Final reporting
Review and Auditing resource use
lesson-learning Reviewing the effectiveness of the overall Risk Financing response
(Ch 10 of RFM
Guidelines)

3.4 Public Works that create sustainable local infrastructure

3.4.1 What are Public Works under the Safety Net Programme?

36
Public works are labour-intensive community-based sub-projects designed to address
underlying causes of chronic food insecurity through the provision of employment for
chronically food insecure people who have “able-bodied” labour.

3.4.2 Principles of PSNP Public Works

The public works falls within the PSNP and therefore all public works are bound by the
general Principles of the PSNP (see section 2.3). In addition, PSNP public works has
its own set of principles:
• Labour-based: Public Works sub-projects should be labour-intensive, and use
simple tools as much as possible. At woreda level, the ratio of total non-labour
inputs can be up to 20% of the total cost of all sub-projects. The ratio at individual
sub-project level may be even higher or lower, depending on the design of the sub-
project. Labour is not limited to physically demanding activities such as road
building; it may include activities such as caring for children or participating in
nutrition classes.
• Participation: The community is responsible for selecting the public works sub-
projects, and participates in their planning, monitoring and evaluation.
• Predictability: The resources required for implementation of Public Works sub-
projects are provided through a multi-annual resource framework. PSNP clients
should be aware of the timing of public works, which should be scheduled to avoid
period of peak agricultural labour.
• Proximity: Public works sub-projects are as much as possible within a walking
distance of less than one hour for the people who work on the sub-projects.
• Watershed Approach: Public Works sub-projects are planned according to the
community-based participatory watershed development approach outlined in MoA
guidelines. This ensures a holistic approach to managing a watershed, ensuring
that activities upstream and downstream complement each other, and incorporates
mitigation measures in to activities which may lead to potentially negative
environmental or social impacts (Box 1).
• Integration: Public work sub-projects are harmonised with woreda development
plans and planned on an inter-sectoral basis.
• Gender Sensitivity: Public works are designed to enable women to participate in
Public Works sub-projects, and priority is given to works which reduce women’s
regular work burden to ensure that they benefit from investments in Public Works.
Public works sub-projects must be organised in such a way that adapts to women’s
activities (e.g. late arrival and early leaving for home, activities that are less
physically demanding).
• Work on private land: Under the PSNP using the watershed approach, soil and
water conservation public works sub-projects may be implemented on both public
and private land, as necessary, for the treatment of the watershed. In the case of
soil and water conservation on private land, the activities must follow the guidelines
set out in 0 of this PIM. Public works sub-projects are also carried out on the private
land of female-headed households with little or no labour to enhance their
productivity directly.
• Complementarity: Public works sub-projects are carefully sequenced with regular
agricultural and voluntary soil and water conservation activities in order to avoid
competition for the use of labour.

37
 Box 1: Main objectives of community-based participatory watershed
development (CBPWD)

The overall objective of CBPWD is to improve the livelihood of communities and

households in rural Ethiopia through comprehensive and integrated natural
resource development. It aims at productivity enhancement measures for
improved food security and income generation, enhanced livelihood support
systems and high resilience to shocks.

The second objective is to optimize the use of existing natural resources and
untapped potentials in both already degraded areas and in the remaining
potential areas in the country.
More specific objectives include:
- Conserving soil, rainwater and vegetation effectively for productive uses;
- Harvesting surplus water to create water sources in addition to ground water
recharge;
- Promoting sustainable farming and stabilize crop yields by adopting suitable
soil, water, nutrient and crop management practices;
- Rehabilitating and reclaim marginal lands through appropriate conservation
measures and mix of trees, shrubs and grasses, based on land potential;
- Enhancing the income of individuals by the diversified agriculture produce,
increased employment opportunities and cottage enterprises, particularly for the
most vulnerable, linked to the sustained use of natural resources.

3.4.3 Who is Responsible for Public Works?

Public works planning starts at community level. It is jointly conducted by community

members, the Community Food Security Task Force, and the Development Agents.
See section 7.2.4.

The public works sub-projects are selected by the community and designed by the DAs
with support from technical experts from the woreda level, and if required, from Zones
and Regions.

Design issues concerning potentially negative environmental and social impacts are
covered in the ESMF Operational Summary in 0. The sub-project design process
incorporates screening following ESMF procedures. This screening is the responsibility
of Woreda NR expert or Environment focal person, but is normally carried out by the
DAs.

The KFSTF reviews the community public works plans, ensures they are compatible
and consistence with the Kebele plan, and consolidates them into the public works
component of the KASNP.

Guidance for technical supervision of implementation of sub-projects is as follows:

Principal types of sub-project Technical supervision support

Soil and water conservation, area Woreda NR expert
closure, afforestation

38
Water projects, SSI Woreda Water Resources and Irrigation
experts (regional experts if a Dam is
involved)
Community roads, up to RR5 Woreda Roads expert
Farmer Training Centres, Schools, Health Woreda sector experts
Posts

Additional technical inputs and supervision is provided by the relevant sectoral experts
at Zonal and Regional levels.

3.4.4 Who should provide labour for public works?

All labour for Public Works sub-projects comes from PSNP clients. People, who are
eligible for conditional transfers, as described in section 3.2.4, participate in PSNP
Public Works. People who are eligible for unconditional direct support do not
participate in PSNP Public Works.

Both men and women (who are above 16), who are able bodied, participate in public
works. Women may be asked to work fewer hours each day and less days overall, than
men, to adapt to their responsibilities for reproductive tasks, such as cooking and
caring for children. Women of child-bearing age, who are pregnant or already have
children, may be asked to participate in nutritional classes, or other types of activities,
that are identified within the PSNP public works plan that are particularly beneficial to
them and their children.

Households with able-bodied members participating in public works may experience

periods when some members are temporary unable to work, such as women from the
sixth month of pregnancy; lactating mothers in the first ten months after birth; and men
and women who are sick. If the person who is temporarily unable to work, such as the
pregnant woman, is the only able-bodied person in the household, the household is
shifted to Direct Support until she is able to work again (10 months after the birth of her
child). If there are other able-bodied people in the households, their work requirement
is increased – up to the labour cap (15 days) – to compensate for the person who is
unable to work.

A person who is sick for only one or two days, can arrange to have another family
member work for them or to carry-out these days of work at another time during the
month. Similarly, parents with children who are sick or malnourished are except from
public works to care for their children. The parent should agree with the CFSTF if he or
she will carry-out the work at a later date or if someone will work on his or her behalf.

3.4.5 What kind of public works sub-projects can be undertaken?

All planned Public Works sub-projects must be consistent with the principles for Public
Works described in section 3.4.2. In general, they must be for public rather than
individual benefitxiv. Allthough some activities may be done on private land in order to
achieve the public benefit as mentioned in section 3.4.2.

The selection of activities to be undertaken under the Public Works component should
be driven by the local planning process at the community level, in order to identify

39
community needs and prioritise activities based on those needs. The planning process
should balance the needs and interests of both men and women to ensure that benefits
from PSNP public works are equitable.

The planning process for PSNP public works is described in detail in the Community-
Based Participatory Watershed Management Planning Guidelines. In following the
guidance there, woreda officials, kebele officials and DAs may should, to the full extent
possible, draw upon official data that is available at community, kebele and woreda
levels to inform this planning process. For example, monthly data on underweight and
severe underweight among children under two years from the Community Based
Nutrition program and quarterly malnutrition screening results among children 6-59
months and pregnant-lactating women from the Community Health Days. Other data
could include the number of children enrolled in and participating in school.
A large range of public works can be undertaken including:

• Area closures/wood lots

• Physical conservation measures, e.g. hill side terracing.
• Gully control
• Community Roads
• Market yards and storage
• Community water projects such as stream diversion, spring development, shallow
wells.
• Small dams and ponds
• Water ponds
• Fodder seed collection
• Multi-purpose nurseries
• Repairing or building classrooms and health facilities
• Conducting literacy classes among PSNP households
• Promotion of legume systems for improved land productivity and soil fertility
restoration.
• Promotion of nutrient-rich foods like groundnuts, oil seeds, legumes and vegetables
in irrigated areas.
• Behavioural Change Communication (BCC) using Entertainment Education for
increased consumption of nutrient-rich foods for pregnant-lactating women and
children under two years.
• Establishment of self-support groups among PSNP public works participants to
take care of young children during public-work time.

A more extensive list can be found in section 7.2.4.

3.4.6 Where should Public Works sub-projects be organised?

Public works should be organised in rural areas.

Public works sites should be widely distributed within affected target areas. In cropping
areas (highlands), they should be within one hour’s walk of the homes of the intended
clients, whenever possible. This implies that, in cropping areas, work sites should
normally be within five kilometres of the labourers’ homes where the terrain is fairly flat.
Distances should be less in areas of steep or difficult terrain, but the community is free
to decide to work further from their homes.

40
In pastoral areas, Public Works sub-projects will be organised at strategic locations to
which families can move or send selected able-bodied members.

Under the PSNP using the watershed approach, soil and water conservation public
works sub-projects may be implemented on both public and private land, as necessary,
for the treatment of the watershed. In the case of soil and water conservation public
works on private land, the activities must follow the guidelines set out in 03 of this PIM.

Some level of confusion continues to persist on what to consider a public land and
what a private land. In most regions there is a strong continuum between different land
uses which calls for a more careful interpretation of the linkages between communally
used lands and those used privately or by specific groups. For example, some of the
steep slopes under cultivation today were communal lands few years ago while other
degraded communal lands such as many of the large gully networks in SNNP, Amhara
and Oromiya regions were formerly cultivated or grazing lands shared by groups and
individuals.

In addition, community water sub-projects may be implemented on private land under

the Voluntary Asset Loss procedure (see Annex 4.5).

Micro water sub-projects, and other types of investments, which benefit female-headed
households with severe labour shortages may also be implemented on private land
belonging to such households. However, these sub-projects must be endorsed through
the community planning process.

New Social Infrastructure sub-projects or extension of existing similar infrastructure

outside the existing boundaries, including roads, may be built on community or private
land, but in all such cases the Voluntary Asset Loss procedure specified in the ESMF
must be followed.

3.4.7 Timing of Public Works

The PSNP is not limited to specific months of the year, in order to meet client needs.
PSNP Public Works can therefore be implemented at any time of the year.

The two main considerations for timing of Public Works are:

• To correspond with the times when transfers are needed in specific localities,
including addressing transitory needs.
• To avoid competition with cropping seasons and other important times when
competition for client labour might interfere with client livelihoods. The bulk of public
works sub-projects should be implemented during the agricultural slack season to
avoid interfering with the peak period of labour demand in the agricultural cycle.

3.4.8 The Environmental and Social Management Framework (ESMF)

The PSNP Public Works programme provides an important contribution to protecting

and enhancing the asset base which helps the food insecure graduate from food
insecurity. Success of the public works programme depends on the appropriateness of

41
the public works sub-projects, the soundness of their design, their expeditious and
satisfactory implementation, and their social and environmental sustainability.

Most of the public works sub-projects will be aimed directly at enhancing the
environment and increasing the productive capacity of the natural resource base.
However, there are many examples of past mass-mobilization efforts in environmental
rehabilitation in Ethiopia which have failed or have been abandoned, as a result of
which the environment has returned to its degraded state, and some projects designed
to protect or enhance the natural resource base have ended up doing the opposite.
Thus such sub-projects can have the potential for adverse environmental impacts on
human populations or the biophysical environment, particularly if their location or
design do not follow good environmental practice.

Box 2: Examples of potential adverse impacts

Impacts of public works sub-projects on the natural resource base:

• A reforestation sub-project employing exotic or inappropriate species proves to be
damaging to, for example, soil stability, other flora or livestock;
• A water sub-project of poor design or in an inappropriate location, spreads water-borne
or vector-borne diseases;
• A community road designed with insufficient drainage acts as a barrier to surface flows;
• A dam, or soil and water conservation sub-project, that does not form part of an
integrated watershed catchments programme, creates negative impacts in other parts of
the catchment, such as changing downstream hydrology, thereby impacting negatively
on flood irrigation, or on grazing or cropping lands through unplanned changes in the
land use pattern;
• Improperly sited waste disposal from a new community health post sub-projects
contaminates the community water supply;
• Due to a poorly designed SSI sub-project, an accumulation of salt from the water
changes the soil chemistry, making it infertile;
• Poor sitting and construction of a community road sub-project causes siltation of a
stream which serves as both a community water supply and fish hatchery.

Social impacts:
• A sub-project intended to develop community assets is implemented at the expense of
the maintenance of the private assets;
• A community sub-project employing labour from certain households and not others leads
to a rift between the sections of the community in terms of ownership;
• Due to its location not having been agreed to by the community, a sub-project ends up
providing disproportionately high benefits to certain households and not others; and
• A community road sub-project takes land from certain households, thereby depriving
them of assets or access to assets, or obliging them to resettle against their will.

Impacts such as those mentioned above can make public works sub-projects unsustainable,
which in turn will lead to the failure of the objective of community asset-building and
graduation from food insecurity. It is, therefore, necessary to ensure the environmental and
social sustainability of public works sub-projects in order to bring the desired changes
through the PSNP.

42
These issues are addressed in the PSNP through an approach to environmental
management set out in the PSNP Environmental and Social Management Framework
(ESMF), and summarised in the ESMF Operational Summary in Annex 4.

Since the sub-projects are small, numerous, dispersed, community-based and not
known before the programme gets underway, it is in most cases both unrealistic and
unnecessary to execute full project Environmental Impact Assessment (EIA). Instead,
the ESMF provides for the majority of public works projects to have standard
environmental and social mitigating measures incorporated into the technical design.
Typically only a minority of sub-projects, deemed to be of environmental concern, are
earmarked for special attention, which may include EIA.

3.5 Strengthening the effectiveness of PSNP implementation

There are four main areas to consider for enhancing the effectiveness of PSNP
implementation. These are:
• PSNP management systems
• PSNP staffing
• PSNP Human Resource Development, and
• PSNP equipment

The following sections describe approaches and rules in the PSNP to ensure each of
these areas contribute to effective PSNP implementation, before a final section
considers rules for financing capacity-building activities.

3.5.1 Management Systems

The role of management in the PSNP is to ensure that the PSNP achieves its
objectives. This confers a responsibility on programme managers in all implementing
and partner organisations at all levels to ensure that PSNP is successful. This means
more than just performing the daily tasks of management. It means managing and
doing what is needed to ensure that what needs to be done is done well.

In logical framework terms it is the role of managers to deliver the 5 PSNP Outputs. But
it is also the role of managers to make sure that all the assumptions are valid and
necessary conditions for success are in place. If Outputs are delivered and all
assumptions are valid, then the PSNP will achieve its objectives.

The key determinant of success in the PSNP is timeliness of transfers and

sustainability of public works. If transfers are timely then people can be sure that
transfers are coming, and can plan their consumptions and expenditures to guarantee
sufficient food and avoid asset loss. If public works are sustainable, they have been
built to technical sound specifications and have operations and maintenance systems
in place.

Timeliness of transfers and sustainability of public works are directly related to the
effectiveness of programme management. This PIM describes the processes and
procedures that, if implemented correctly and on time, will result in timely transfers and
sustainable public works. It is the role of management at all levels to ensure that each
of these processes is followed as described and on time. The success of the PSNP is

43
 in the hands of PSNP’s managers. To assist managers, the PSNP has developed a set
of performance standards (see below) and invested resources in the monitoring and
evaluation system, so that managers have the information they need to make good
decisions.

The institutional arrangements for the PSNP (see Chapter 5:) are designed to create
effective management structures. Programme managers within each PSNP
implementing institution are responsible to manage their staff, physical resources and
capacity building activities, such as training and procurement, in an efficient manner.

The PSNP has resources to build institutional capacity over time and a key function of
management is to identify and fill capacity gaps that hamper programme
implementationxv. The key principle behind decisions to invest resources in additional
capacity is that these decisions must be evidence-based, driven by specific
assessments that provide a specific justification for capacity-building expenditures.
Even when minimum standards have been set, programme managers can exceed
these minimum requirements if their analysis shows that additional staff, equipment or
training are required to implement the PSNP effectively and efficiently. Capacity is
assessed each year to ensure that adequate capacity is maintained. However, it is
critical that these capacities – human, physical or educational – be managed correctly
and used efficiently. This includes maintenance of vehicles, offices and computers,
among others, and providing staff with the support they need to carry out their job
efficiently. These are all elements of sound programme management, which is critical
to ensuring the success of the PSNP.

a) Performance targets

To encourage good sound management, performance targets were introduced to the

PSNP as a means of improving and assessing programme implementation. These
performance standards defined a common goal for programme implementation and set
clear standards against which changes in performance at Federal, Regional and
woreda levels are judged.

# Topic Proxy Indicator Target Source of Info &

%/# for Regularity
2010
1 Transfer Performance % of bi-monthly disbursements sent 100% FSCD –
Targets (predictability) on schedule to regions Quarterly

Objective: to capture % received at woreda level by 90% From DPPFSCs

predictability/timeliness agreed disbursement date and IC data
through the transfer rate
including: % of transfers to clients within 45 70%
Amount of transfer days after the previous month
Timeliness of transfer
To woredas
To clients
2 Reporting Targets # of quarterly reports (IFR, physical) 75% FSCD report to
(accountability and submitted from GoE to donors within bi-annual JRIS

44
# Topic Proxy Indicator Target Source of Info &
%/# for Regularity
2010
responsiveness) 60 days after reporting period (to mission
agreed formats).
Objective: To capture
accountability through the IC reports received as scheduled 90%
following essential reports:
Financial # of audit reports received by donors 100%
Audits (financial, roving, as scheduled
appeals, procurement - 100%
undertaken) Annual work plan received as
Physical monitoring scheduled
Annual work plan (including
procurement plan)
3 Staffing Targets % of Woredas/Regions meeting 80% MoFED report
minimum staffing standards (FM, to bi-annual
Objective: To ensure that procurement, FS, TA) JRIS mission
there are sufficient human
resources to deliver the % of training programmes 80%
programme objectives. implemented as scheduled (and
evaluated)
4 public works Targets % of public works sub-projects 75% public works
reaching satisfactory standards and Review
Objective: To monitor the sustainability ratings Six monthly
performance of the public 90%
works activities including the ESMF (% public works sub-projects
ESMF component. screened under the ESMF)
5 Responsiveness targets % of capacity building equipment 75% FSCD report to
delivered as planned at woreda level bi-annual JRIS
Objective: To measure mission
responsiveness of the PSNP % of JRIS action plan completed as
to the agreed actions. agreed 75%

# of Regional and Federal RRTs

completed as agreed 75%
6 Coordination/Institutional # of quarterly meetings held 100% FSCD report to
Targets (MoFED, FSCD) bi-annual JRIS
mission
Objective: To track # of JSOC attended by EWRD, 90%
improvements in MoFED, NR, regions
coordination and
communication.

b) Performance management system

45
In 2009, the PSNP introduced a performance management system. The purpose of the
performance management system is to:
• Motivate improvements in performance against the key performance targets
through the use of incentives,
• Provide continuous, tailored support and capacity building to implementers that are
not meeting the minimum standards, and
• Enable management at all levels to make decisions and allocate resources in a
way that leads to improvements in performance across the PSNP.

This creates a system that provides programme managers with the information and
analysis required to inform decisions that will lead to improved programme
performance.

The performance management system thus requires a continuous stream of quality

data that provides timely information on programme performance in all woredas. This
information will be provided through the Federal Information Centre (FIC) and RIC (see
Chapter 10:) and regular monitoring activities.

On regular intervals, managers will use this information to determine where Rapid
Response Teams (RRTs) should be sent, where implementation support should be
provided to woredas by Regions or Zones, and to inform capacity building initiatives to
woredas.

On an annual basis, this information will be used at Federal-level to award

performance incentive grants to those woredas that meet minimum performance
targets.

These two components of the performance management system: (i) performance

incentives grants; and, (ii) continuous support and capacity building are described in
more detail in the sections below

Performance incentives

The Federal-level awards the performance incentive to woredas meeting minimum

performance standards on an annual basis in July. The performance incentive grant
awarded to these woredas will be equivalent to 30% of the woreda’s administrative
budgetxvi. This performance incentive grant is additional financing provided to woredas
through the PSNP account and is managed by the WFSTF. This system is also used in
woredas that receive support through NGOs.

The WFSTF can use the additional financing from the performance incentive grant for
any activities allowed under either the PSNP capital or administrative budget lines. This
additional financing does not need to fit within the existing division between these two
expenditure areasxvii. As currently defined for these line items, allowable costs include:
minor investments in IT infrastructure (including the purchase of computers), training
and cross visits, survey equipment, and hand-toolsxviii.

The performance incentive grants are awarded on the basis of a set of performance
standards. These incorporate: (a) minimum standards for Regions and woredas; and
(b) progress towards a core performance target, classified into three groups.

46
The minimum standards for Regions and woredas must be met for a woreda to be
eligible for the performance incentive grant. These are:
• Regional Information Centre is functional and collecting data at least monthly from
95% of woredas.
• Data needs to be available for all woredas related to at least five of the six months
during which transfers are distributed.
• Monthly public works plans by woreda submitted to Regions at the beginning of the
EFYxix.
• Submission of financial reports at least 30 days after the end of the reporting period
• PASS is used to prepare attendance sheets and payrolls.
• No outstanding problem with financial management reported by the Annual or
Roving Financial Audit or with food management as reported by the Commodity
Auditxx.

For those woredas that have met the minimum criteria, their progress towards a core
performance target is then assessed. Woredas are clustered into three categories
based on critical determinants, such as distance to banks and remotes. Woredas must
meet the core performance target assigned to each category.
• Category One: 85% of transfers delivered to clients within 45 days after the end of
the month to which the transfer applies for each of five out of six months
• Category Two: 80% of transfers delivered to clients within 45 days after the end of
the month to which the transfer applies for each of five out of six months
• Category Three: 75% of transfers delivered to clients within 45 days after the end
of the month to which the transfer applies for each of five out of six months

For woredas to meet the above targets, the Federal and Regional levels must transfer
resources to woredas on time.

A Committee established at FSCD level is responsible to recommend which woredas

should receive the performance incentive grant each year. The State Minister for
DRMFSS will make the final decision concerning the award.

The Committee will make the decision as follows:

• Each Region will submit a report to the Federal level that provides:
• Evidence that (i) the RIC is functional and collecting data at least monthly from 95%
of woredas, and (ii) that data is available for all woredas related to at least five of
the six months during which transfers were distributed;
• The monthly public works plan by woreda that were submitted at the beginning of
the EFY;
• A woreda-by-woreda status report on the use of PASS from the Region IT TA or
staff responsible for the PASS;
• Verification that there are no outstanding problems identified by the Annual or
Roving Financial Audits or the Commodity Audit; and,
• Analysis of the performance of each woreda towards meeting the core performance
target.

The Committee at Federal level will verify this information by crosschecking it with:
• Information from the FIC on the functioning of the RICs and the accuracy of the
analysis of woreda-by-woreda performance;
• Assessment from the Federal IT TA on the functioning of PASS; and,

47
• MoFED and MoA assessments of the audit reports.

Given the risks associated with the performance incentive grant, the Committee will
also ensure that:
• Information on transfers to clients is consistent between the FIC and RICs, financial
reports and Annual and Roving Financial Audits and Commodity Audit; and,
• Random verification missions do not identify significant discrepancies between
payment times reported by clients and those reported using the information centre.
For this the Committee will use the RRT reports.

Continuous support and capacity building to woredas

The performance management system is designed to improve programme

implementation in all PSNP woredas. Since there are woredas that will not meet the
minimum standards or reach the core performance target, at least initially, a strategy
will be developed to focus on identifying and resolving key bottlenecks and building
implementation capacity.

This strategy includes:

• The provision of technical assistance and support from Regions and Zones to
woredas on a responsive basis;
• Regular monitoring and supervision through the RRTs, for example, that will
identify and aim to address constraints to implementation; and,
• Capacity building initiatives designed for low performing woredas. This will be
supported through Programme capacity building budget, Federal and Regional
management budgets and the CIDA Regional Support Facility.

This dual focus will ensure that programme implementation improves in all woredas
and that the performance incentive grants are not awarded only to those woredas that
are already well equipped.

3.5.2 Personnel

The PSNP’s human resources consist of permanent government staff, contract staff
(i.e. non-permanent employees working within government implementing the PSNP)
and Technical Assistants (TA), who are employed to fill gaps in the current staffing in
support of programme implementation.

Since 2005, decisions have been taken regarding the minimum staffing levels at each
level for PSNP implementation. These positions may be filled by regular government
staff, contract staff or technical assistants. Programme managers should not follow
these minimum standards only. Based on their assessment of the programme
requirements, programme managers should hire all the staff required to ensure that
they meet the performance targets in their areas.

The minimum staffing capacity for effective PSNP implementation at woreda level is:

Staff position Minimum standard

Cashiers 1:25,000 client
Accountants 1: 25,000 clients

48
 Woreda warehouse staff 1 per warehouse/storage facility
Woreda FS desk officer 1
Technical staff 75% posts filled
Development Agents 3 per kebele

The accountant and cashier ration applies at woreda, not regional level. That is, any
woreda with up to 25,000 clients will employ at least 1 cashier and 1 accountant. Any
woreda with up to 50,000 clients will employ at least 2 cashiers and 2 accountants. Any
woreda with up to 75,000 clients will employ at least 3 cashiers and 3 accountants, and
so forth.

Additionally, woredas need to ensure that capacity to undertake the necessary internal
audit functions for the PSNP are in place.

In some Regions, the Zones play an important role. In these areas, Zonal minimum
staffing requirements include sufficient mobile accountants to provide regular support
to woredas.

Minimum staffing levels at Regional level are:

Staff position Minimum standard

BoFED
Accountants 2 Junior accountant
2 Senior accountantxxi
Food Security Office
Capacity Building Coordinator 1
Social Development Advisor 1
Procurement Coordinator 1
Information Technology TA 1 or 2
RIC Minimum Requirements
Natural Resource Management Public Works Focal Unit
Agreed staffing levels 12 Technical staffxxii

Additionally, Regions need to ensure that capacity to undertake the necessary internal
audit functions for the PSNP are in place.

Minimum staffing levels at Federal level are:

Staff position Minimum standard

MoFED
Coordination officer (channel 1) 1
Financial Expert 1 Financial Expert
Accountants 2 senior accountants, one each in
Channel 1 Case Team, Accounts
and Budget departments

Food Security Coordination Directorate

Communications Officer 1
FIC Analyst 1

49
 Food Management Specialist 1
Procurement Coordinator 1
Information Technology TA 1
Senior Programme Officer 1
Financial Management TA 1xxiii
Social Development Advisor 1
Natural Resource Management Directorate, Public Works Coordination
Unit
Agreed staffing levels 9 Technical staff

In addition to the minimum staffing levels described above, all staff working on the
PSNP – be they regular government staff, contract staff or TAs – must have clear
responsibilities, should be neither under- or over-employed and must have access to
the resources required to carry out their work.

Staff turnover is a critical problem within the PSNP and the government system overall.
Programme managers should take steps to address those issues that cause high rates
of staff turnover such as low salaries, inadequate working conditions and little job
security to the extent they are able – their ability to do this will vary depending on which
level they are at. Programme managers may also introduce schemes to foster
commitment, such as rewards to good performance, providing certificates for training
received, among other activities. Programme managers at lower levels should, to the
full extent possible, take steps to address the causes of turnover among staff. When
needed, support and approval should be requested from higher-level programme
managers. Parallel efforts to address all these problems will be pursued at Federal
level.

Because staff turnover will remain a reality in many places, steps need to be taken to
establish hand-over mechanisms, where staff leaving the position transfers the PSNP
documents, material and information to the newly hired staff.

3.5.3 Human Resource Development

In addition to ensuring that sufficient staff is in place to implement the PSNP, these
staff must have the skills and knowledge to carry out their tasks efficiently. They also
need access to work in an environment that enables them to carry out their jobs. For
staff to be effective their responsibilities and areas of accountability must be well
articulated and their performance routinely monitored. This requires good
management, as described in the section above.

A core duty of staff at Federal, Regional and Zonal levels is to mentor and coach staff
at lower levels to build the capacity of these staff members over time, to trouble-shoot
and ensure that the PSNP is being implemented well. This requires that staff at higher
levels communicate with lower-level staff frequently and provide on the job training
regularly.

Regular training can also ensure that staff have the knowledge and skills to carry out
their work. The PSNP has adopted a rolling training programme, which is often
delivered by government staff who participate in training of trainers programmes prior

50
to delivering the training. Training is then cascaded to lower levels, whereby federal
staff train the regions, regions train woredas (or zones) and woredas train kebeles.

In the past, training sessions have often been too short and too theoretical with the
result that staff participating in the training do not fully understand how to carry out
what is required of them. To address this, PSNP training will always include an
evaluation, will incorporate a more ‘hands-on’ approach to training and will be
supported by mentoring and coaching from higher-level staff. Training sessions will
also be delivered frequently to address the high rates of staff turnover.

A minimum set of training sessions has been identified, which are managed at Federal-
level through the PSNP rolling-training programme. Programme managers at all level
can request and/or organise training sessions that are not covered by the rolling
training programme to address gaps in staff capacity. These training sessions can be
financed out of the administrative or management budgets.

HRD input Minimum standard Responsible party

Training on PIM Annual FSCD
Procurement Annual FSCD
Rolling training on FM Rolling throughout the MoFED
year
Public Works Annual NRMD
Basic ICT Annual FSCD
PASS (introduction & Annual FSCD
refresher)
Field-based FM support to Continuous BoFED and
woredas MoFED

The PSNP Rolling Training programme is found in Annex 7.

The following information on training will be included in the woreda monthly

implementation reports, and the reports from Region to Federal level:
• Type of training
• Total cost
• Number of trainees
• Number of days of training

In addition to the rolling training programme, MoFED holds three consultative meetings
each year with BoFEDs to review PSNP-related financial management issues to build
the capacity of all staff and ensure that financial management activities are being
implemented as intended. Similarly, FSCD holds three meetings each year with the
regional food security offices to discuss implementation issues related to the PSNP.
These meetings coincide with the JSOC meetings attended by Regions.

Finally, in order to ensure that staff members have access to basic program
information, a complete set of PSNP documents is available at each woreda, zone and
Region. The list of minimum documents is:
• PSNP 2010-2014 programme document
• Programme Implementation Manual
• Community-Based Watershed Management Guidelines

51
• M&E Plan
• Targeting Guidelines
• Annual Plan
• Graduation Guidelines
• Risk Financing Mechanism Guidelines

3.5.4 Physical Resources

PSNP staff not only need the right skills to do their jobs, they also need access to
materials and equipment. At woreda level, equipment is often shared among offices
through the ‘pooled’ system. To make this work, staff must plan their activities in
advance to secure access to the resource they need.

The PSNP also has resources to purchase the equipment and materials staff needs to
implement the programme. Minimum standards for equipment and materials have been
developed, while for other items programme managers must assess the needs of their
staff and procure accordingly. However, all materials and equipment purchased must
be cared for and maintained to ensure their effective functioning for years to come.

The PSNP requires certain physical resources to function effectively. The minimum
standards for each woreda are as follows:

Equipment Quantity Required

Office chairs For each staff

Office tables with lockers For each staff
Filing cabinets One for staffs in one office room
Computers 1 per Woreda, plus UPS and
printer
Photocopiers 1 per Woreda
Faxes 1 per Woreda
Telephone line At least 2 per Woreda
Safe boxes One for each cashier
Generators / solar power One set where there is no
electricity
Source: HELM report

3.5.5 Budgeting for Capacity Building

Capacity building requirements can be financed out of the PSNP budget lines: (i)
administrative or management budgets and (ii) capacity building budget. The actual
budget line used is determined by programme managers at each level depending on
the type of purchase to be made. See the chapter on PSNP Budget for more
information on this budget line.

The capacity building budget is used for planning purposes and is reported in the
PSNP Annual Plan. The manner in which this budget line is reported in PSNP
expenditure reports is described in Chapter 4:.

52
3.6 Coordination between programme implementers and with other
development efforts

The PSNP is a complex programme implemented by multiple Government ministries

and departments at Federal, Regional, Zonal and woreda levels. The PSNP is also
supported by NGOs and WFP in some areas. To achieve its objectives, efficient
coordination is required between these institutions at all levels. In addition, the wider
economic, social and climatic context can impact significantly on whether or not the
PSNP achieves its outcome of protecting food insecure households and promoting
graduation from food insecurity. Integration of the PSNP with the Government’s Food
Security Programme and broader development initiatives will maximise the impact of
the PSNP on households and the likelihood that households graduate from food
insecurity, while effective coordination with the emergency systems required to protect
all food insecure households from shocks, such as droughts.

However, coordination cannot be assumed; it must be actively sought. Therefore, while

the PSNP is not responsible for the actions of other institutions implementing
Government programmes and services, programme managers at all levels need to
ensure that it coordinates sufficiently with these institutions and actors to achieve
Programme outcomes. For this, the PSNP has adopted the following as the ‘building
blocks’ for achieving effective result-oriented linkages:
• The objectives of the PSNP are common to all institutions implementing the PSNP;
linkages beyond the PSNP are built from the shared vision stated in PASDEP, food
security policy and others. These organisations are all working towards the same
goal and so coordination is necessary for all of them to achieve their individual
objectives collectively;
• PSNP institutional arrangements provide the framework for sharing responsibility
for PSNP success between implementing partners and with other contributing
organisations
• Specific processes have been adopted to promote effective coordination: Technical
Committees, Taskforces, JRIS Missions, RRTs and others
• Effective coordination must be planned into programme activities, with specific staff
assigned the responsibility to coordinate with other institutions and to judge staff
performance based on the delivery of shared objectives
• Communication and the sharing of information is a critical requirement for effective
coordination, both within PSNP implementing organisations, and between
organisations
•
Coordination is required both within and beyond the Programme. These two types of
linkages are considered below, and examples are provided in Table 4.

Table 4: Examples of linkages and coordination for effective PSNP planning and
implementation

Outcomes Examples of Types of Coordination Activities

Appropriate timely and predictable transfers (cash and/or food) received by households
in response to chronic requirements

53
Outcomes Examples of Types of Coordination Activities
Federal level • All PSNP planning is aligned with the Ethiopian Fiscal Year
• MoFED and FSCD coordinate to issues a quality Interim Financial
Report to donors on time to ensure funds are replenished
• FSCD communicates to MoFED, EWRD and NRMD approved
PSNP annual plan and budget by woreda in a timely fashion.
• MoFED communicates the disbursement schedule to the National
Bank of Ethiopia.
• FSCD coordinates with MoFED (and EWRD, as needed) to
implement the annual rolling training programme
• FSCD and EWRD communicate regularly on available food stocks
in EFSRA, and coordinate their usage
• FSCD and MoFED coordinate to ensure that cash resources are
disbursed to Regions as per the disbursement schedule
• FSCD collects information on implementation performance
regularly, analyses this and shares it with EWRD, NRMD, MoFED
• Programme managers in FSCD, EWRD, NRMD and MoFED
communicate regularly to solve problems in programme
implementation
• All stakeholders participate in joint management meetings and
provide regular updates on programme implementation
• EWRD shares information with FSCD regularly on food prices in
PSNP woredas
Regional • DPPFSC ensures that EWRCP, NRMCP and BoFED have
level received the approved PSNP annual plan and budget. DPPFSC
communicates this to woredas (through Zones).
• BoFED communicates the disbursement schedule to woredas and
the Commercial Bank
• DPPFSC communicates to BoFED the approved, annual cash
disbursement plan and follows-up with BoFED regularly to ensure
that transfers are disbursed to woredas on time.
• DPPFSC analyses data on the transfer of cash and food and
communicate the findings to BoFED and EWRCP. DPPFSC leads
coordination to address any constraints.
Woreda • FS Desk communicates the approved PSNP annual plan and
level budget to WNRMD, Early Warning Desk, WOFED and all PSNP
kebeles.
• FS Desk coordinates with WNRMD and other sectoral offices to
ensure that PSNP public works sub-projects are carried out
according to the plan, so that clients are paid on time.
• The DA provides regular updates on public works sub-projects to
the FS and WNRMD.
• The DA provides the approved attendance sheet to FS and NR
Desks regularly; delays in public works do not affect the
submission of this sheet.
• FS Desk coordinate with WOFED to complete the attendance
sheet and payroll in PASS.
• WOFED coordinates with FS Desk to carry out payments to clients,
which is communicated to clients in advance.

54
Outcomes Examples of Types of Coordination Activities
Transitory cash and food needs addressed effectively in PSNP woredas, up to the limit
of RFM resources, and coordination with emergency response system.
Federal- • EWRD to provide FSCD with all early warning reports on a timely
level basis.
• FSCD to advise EWRD regularly on the status of woreda and
Regional contingency budges.
• EWRD and FSCD to communicate regularly on the status of food
stocks in the EFSRA.
• EWRD and FSCD coordinate to ensure that the RFM Management
Committee meets on a timely basis.
• EWRD informs FSCD of any non-food requirements identified in
PSNP woredas and the planned response.
• EWRD and FSCD coordinate to ensure that the seasonal
assessments accurately reflect the situation in PSNP woredas and
that needs in PSNP woredas are captured sufficiently in the
Humanitarian Appeal Document.
Regional- • EWRCP provides DPPFSC with all early warning reports on a
level timely basis.
• DPPFSC advises EWRCP Office regularly on the status of woreda
and Regional contingency budgets and any changes to the cash-
food split.
• DPPFSC and EWRCP Office coordinate so that any decision
concerning the use of the Regional Contingency budget is made in
a timely fashion and based on early warning data.
• DPPFSC and EWRCP Office coordinate to update the Regional
CB, as needed, and approve revised CBs from PSNP woredas.
• EWR Office informs DPPFSC of any non-food requirements in
PSNP woredas and the planned response.
• EWR Office and DPPFSC communicate regularly to ensure that
the implementation of PSNP and emergency response are well
coordinated, with no gaps.
• EWR Office and DPPFSC coordinate to ensure that the seasonal
assessment accurately reflect the situation in PSNP woredas.

55
Outcomes Examples of Types of Coordination Activities
Woreda- • EW Desks provides FS Desk with all early warning analysis and
level reports.
• FS Desk advises EW Desk regularly on the status of woreda
contingency.
• EW and FS Desks coordinate so that all early warning reports and
request for Regional Contingency Budget are sent to the Region
on time.
• EW and FS Desk coordinate to update the CB in a timely fashion.
• EW Desk informs FS Desk of any non-food requirements in the
woreda and the planned response. EW Desk provides regular
updates to FS Desk.
• EW and FS Desk communicate regularly to ensure that the
implementation of PSNP and emergency response are well
coordinated, with no gaps.
• EW and FS Desk coordinate to ensure that the seasonal
assessments accurately reflect the needs of PSNP and non-PSNP
households.
Quality, new and existing, community assets with operational management mechanisms
established
Federal- • NRMD coordinates with sectoral agencies to review the public
level works plans from Regions to strengthen the quality of the proposed
sub-projects and to ensure that operations and management
mechanisms are in place.
• NRMD collects the feedback of sectoral agencies and
communicates this to Regions.
• NRMD coordinates with sectoral agencies to identify and plan for
the technical backstopping of the sectoral agencies to the Regions
and ensures that these are reflected in the Federal PSNP Annual
Plan.
• NRMD ensures that all relevant sectoral agencies have received
the approved PSNP annual plan and budget.
• NRMD coordinates with sectoral agencies to ensure that they are
providing the planned inputs and technical backstopping to
Regions through the Public Works Technical Committee (PWTC)
and day-to-day interactions.
• NRMD coordinates with sectoral agencies to address policy-related
issues to strengthen the quality of public works sub-projects,
including planning and establishment of operational management
mechanisms.
• NRMD coordinates with sectoral agencies to analyse the
monitoring data and to follow-up with Regions on PSNP public
works.

56
Outcomes Examples of Types of Coordination Activities
Regional- • NRMCP coordinates with sectoral agencies to review the public
level works plans from woredas to strengthen the quality of the
proposed sub-projects and to ensure that operations and
management mechanisms are in place.
• NRMCP collects the feedback of sectoral agencies and
communicates this to woredas.
• NRMCP coordinates with sectoral agencies to identify and plan for
the input of sectoral agencies into public works sub-projects and
ensures that these are reflected in the Regional PSNP Annual
Plan.
• NRMCP ensures that all relevant sectoral agencies have received
the approved PSNP annual plan and budget.
• NRMCP coordinates with sectoral agencies to ensure that they are
providing the planned inputs and technical backstopping to public
works sub-projects through the PWTC and day-to-day interactions.
• NRMCP coordinates with sectoral agencies to follow-up on
maintenance plans for completed public works sub-projects.
• NRMCP coordinates with sectoral agencies to analyse the
monitoring data and to follow-up on the quality of the public works
sub-projects.
Woreda- • WNRMD coordinates with sectoral agencies to identify and plan for
level the input of sectoral agencies into public works sub-projects.
• WNRMD and FSD coordinate with the woreda administrator and
sectoral offices to ensure that staffing and maintenance plans for
public works sub-projects are clearly defined.
• WNRMD ensures that all relevant sectoral agencies have received
the approved PSNP annual plan and budget.
• WNRMD coordinates with sectoral agencies to ensure that they
are providing the planned inputs and technical backstopping to
public works sub-projects.
• WNRMD and sectoral agencies coordinate with Zones and
Regions to secure the required technical inputs.
• WNRMD coordinates with sectoral agencies to follow-up on
maintenance plans for completed public works sub-projects.
Institutional capacity to manage the PSNP strengthened

57
Outcomes Examples of Types of Coordination Activities
Federal- • FSCD coordinates with EWRD, NRMD and MoFED to determine
level any capacity limitations with regards to PSNP implementation.
• FSCD works with EWRD, NRMD and MoFED to identify which of
these gaps can be filled through available PSNP budget lines.
• FSCD coordinates with EWRD, NRMD and MoFED to detail a
procurement plan, including indentifying which items will be
procured by FSCD on behalf of the other departments.
• FSCD transfers management budgets to NRMD and MoFED on
time.
• NRMD and MoFED report on the use of this budget to FSCD on
time.
• NRMD and MoFED provide to FSCD a list of training sessions,
indicating the responsible agency and source of funds. FSCD
supports the implementation of these plans.
• FSCD coordinates with MoFED on policies and regulations related
to staffing that affect the implementation of the PSNP.
• FSCD coordinates with the Ministry of Capacity Building to address
implementation weaknesses in PSNP woredas, including the use
of WoredaNet.
• FSCD communicates the analysis of monitoring data that shows
weaknesses in implementation to NRMD, EWRD and MoFED and
coordinates actions to address these weaknesses.
Regional- • DPPFSC coordinates with EWRCP, NRMCP and MoFED to
level determine any capacity limitations with regards to PSNP
implementation.
• DPPFSC works with EWRCP, NRMCP and MoFED to identify
which of these gaps can be filled through available PSNP budget
lines, and prepares a detailed procurement plan, including which
items will be procured by DPPFSC, other departments, and
Federal-level.
• DPPFSC transfers management budgets to NRMCP and BoFED
on time.
• NRMCP and BoFED report on the use of this budget to DPPFSC
on time.
• NRMCP and BoFED provide to DPPFSC a list of training sessions,
indicating the responsible agency and source of funds. DPPFSC
supports the implementation of these plans.
• DPPFSC communicates the analysis of monitoring data that shows
weaknesses in implementation to NRMCP, EWRCP and BoFED
and coordinates actions to address these weaknesses.

58
Outcomes Examples of Types of Coordination Activities
Woreda- • FSD works with sectoral agencies to assess capacity limitations as
level they relate to PSNP implementation, including the use of the PSNP
budget.
• FSD and WOFED coordinate with Woreda Administrator to use
Woreda Net to communicate with Regions
• FSD and WOFED coordinate with Woreda IT staff to ensure that
PSNP computers and equipment are maintained and virus free.
• FSD coordinate with WOFED and WNRMD to ensure the most
effective use of the pooled system at woreda level.
Coordination to achieve graduation from PSNP
Federal- • FSCD coordinates with Regions to ensure that the FSP is
level implemented as designed.
• FSCD coordinates with other Directorates in MoA to ensure that
the needs of food insecure woredas are addressed in their annual
plans.
• FSCD coordinates with MoFED to assess progress towards
PASDEP in food insecure woredas and advocates for changes in
policies that constrain development in these areas.
• FSCD coordinates with MOLSA to secure a safety net for Direct
Support clients in the long-term.
• FSCD coordinates with the Women’s Affairs Desk and Ministry of
Women’s Affairs to tailor support to female-headed households to
improve their prospects for graduation.
Regional- • Regional Food Security coordinates with Regional planning
level processes so that CCI is planned to address key causes of food
insecurity.
• DPPFSC coordinate with Regional MFIs and Cooperative Agency
so that financial services delivered in PSNP areas are
comprehensive and address the needs of all household types.
• DPPFSC coordinates with the Extension Office to strengthen the
delivery of services to households, including access to fertilizer,
markets, etc.
• DPPFSC coordinates with the sectoral offices and Regional
Cabinet and Council to ensure that development resources are
allocated to food insecure areas and that capacity limitations are
addressed on a priority basis.
• DPPFSC coordinate with sectoral agencies so that key causes of
food insecurity are addressed in their annual plans for food
insecure woredas, such as access to roads, market facilities,
educational infrastructure and health services.
• DPPFSC coordinates with the Women’s Desk of BoARD and
Bureau of Women’s Affairs to support the implementation of the
Women’s Package in PSNP woredas.

59
Outcomes Examples of Types of Coordination Activities
Woreda- • The same households are targeted for PSNP and HABP
level • Household graduated from PSNP continue to participate in HABP
• Regional Food Security coordinates with Regional planning
processes so that CCI is planned to address key causes of food
insecurity.
• The woreda initiates cross-sectoral planning to identify the main
constraints to and opportunities for graduation from food security.
This is reflected in the integrated woreda plan.
• All sectors sequence their investments to support the achievement
of this goal.
Coordination to achieve goals of PASDEP
Improved • FS Desk informs the Woreda Health Office of PSNP public works
Nutrition schedule and payment schedule. Health Extension Workers,
Volunteer Community Health Workers and DAs carry out nutrition
classes at public works sites or payment sites.
• Health Extension Workers, Volunteer Community Health Workers
and DAs to promote nutrition-rich foods to PSNP clients in PSNP
meetings, public works or payment sites.
• Health Extension Workers and Volunteer Community Health
Workers encourages PSNP clients to participate in community-
based growth monitoring and promotion, promoting healthy
behaviours
• FS Desk coordinates with Woreda Health Office to identify
livelihood activities that promote good nutrition (bee keeping) and
includes those in the list of options for PSNP clients participating in
HABP.
• Woreda Health Office to support the implementation of health-
related public works sup-projects.
• Regional Health Bureau to coordinate with DPPFSC to extend
nutrition-related activities to PSNP woredas.
• DPPFSC to coordinate with Regional Health Bureaus to ensure
that PSNP woredas are incorporated into the annual plans for
nutrition.

60
Outcomes Examples of Types of Coordination Activities
Improved • FS Desk informs Woreda Health Office of PSNP public works and
HIV and payment schedule. Health Extension Workers and Volunteer
AIDS Community Health Workers carry out HIV and AIDS awareness
awareness classes.
• Health Extension Workers and Volunteer Community Health
Workers encourage PSNP clients to participate in HIV and AIDS
related activities. Health Extension Workers and Volunteer
Community Health Workers and encourage young people in PSNP
households to participate in youth clubs.
• Woreda Health Office, with support of Regional HAPCO, provides
information sessions on HIV and AIDS to staff for FS, EW and
NRM Desks and WOFED.
• Woreda Health Office, with support of Regional HAPCO, identify
factors that may increase the vulnerability of PSNP clients to HIV
and AIDS and works with FS Desk to address these.
• Woreda Health Office to provide HIV-related training to CFSTF and
during other PSNP training activities.
• Woreda Health Office to support the implementation of HIV and
AIDS-related public works sub-projects.
• Health Extension Workers and Volunteer Community Health
Workers coordinate with DAs to ensure that PSNP clients living
with HIV and AIDS are appropriately allocated to Public Works or
Direct Support.
• Regional HAPCO to coordinate with DPPFSC to extend the
regional HIV and AIDS programmes to PSNP woredas.
• DPPFSC to coordinate with Regional HAPCO to ensure that PSNP
woredas are incorporated into the annual plans for HIV and AIDS.

61
Outcomes Examples of Types of Coordination Activities
Promote • Women’s Affairs Desk participates in PSNP activities and to
gender provide gender-related training to CFSTF, KFSTF and woreda
equality officials within PSNP training programmes.
• Women’s Affairs Desk to ensure that women are participating in
PSNP decision-making structures as per the PIM. Women’s Affairs
Desk to provide training to these women to build their skills and
confidence to engage in these meetings.
• Women’s Affairs Desk promotes their women’s package to PSNP
clients.
• Women’s Affairs Desk to support the PSNP planning process to
ensure that public works sub-projects that benefit women are
considered and included in the annual plan.
• Women’s Affairs Desk to hear grievances related to PSNP and to
communicate these to the KAC or concerned woreda officials.
• Health Extension Workers and Volunteer Community Health
Workers to monitor the status of pregnant women and to
communicate to DAs when women are no longer eligible for PSNP
public works and should be transferred to Direct Support.
• DPPFSC and Bureau of Women’s Affairs and Women’s Desk of
BoARD to coordinate to ensure that the regional gender-related
programmes are implemented in PSNP woredas.
• DPPFSC coordinates with the Women’s Desk to analyse the sex-
disaggregated data and to determine any actions to address the
issues that arise.
Promoting • FS Desk, Woreda Health Office and Women’s Affairs Desk
education coordinate to establish childcare mechanism to ensure that girls in
PSNP households are free to attend school.
• FS Desk ensure that no children under 16 years of age are working
on PSNP public works sub-projects and communicates to Kebeles
and DAs that all children in PSNP households should attend
school.
• Education Desk coordinates with FS Desk to encourage PSNP
clients to attend adult literacy classes.

3.6.1 Coordination within the PSNP

The institutional arrangements for the PSNP are designed to enable effective linkages
between Government ministries and departments implementing the Programme to
deliver timely transfers to food insecure households and productive public works. In
addition, the PSNP has adopted a number of coordinating mechanisms in the form of
committees and taskforces to facilitate communication across departments and
ministries and ensure effective management and decision-making. At the Federal-level,
the JSOC and its Technical Committees deliver this coordination. These bodies are
replicated at Regional and woreda levels to create effective horizontal linkages.
However, it cannot be assumed that participation in these meetings will lead to
effective linkages within the PSNP; programme managers should work actively with
their counterparts in other departments and ministries.

62
The use of technologies, such as fax and email, can facilitate communication between
departments and ministries at all levels, as does continuous follow-up through mobile
phone and other means of communication.

PSNP public works require additional linkages across multiple sectors given their very
nature. This is achieved through the active coordination of the Natural Resource
Management Directorate at Federal and Regional Levelsxxiv with the various sectoral
bureaux that input into public works and their operation and maintenance
requirements.

Annual PSNP plans are integrated into annual woreda plans to create the linkages
necessary to delivery productive public works. For example, this mean coordinating
with the Health Office to ensure that any health posts built by the PSNP are staffed and
medicines supplied. This is particularly important because in many woredas, the PSNP
is the main source financing for the woreda’s capital budget and PSNP public works
can be an important source of investment in the overall development of the woreda.

3.6.2 Coordination beyond the PSNP

a) With the emergency response system

The PSNP provides timely and predictable support to chronic food insecure
households and to transitory food insecure households, up to the limit of the
contingency budget and Risk Financing. Coordination with the emergency response
system is to ensure that any transitory needs that exceed PSNP resources in PSNP
woredas are responded to through the emergency response system and that any non-
food needs arising from an emergency situation are made available in PSNP woredas.

These linkages are created by:

Analysing the early warning data on a regular basis and using this to inform decisions
on the use of the proportion of the woreda contingency budget dedicated to meeting
transitory needs, the Regional contingency budget and Risk Financing.

Effective communication through the early warning system and between the Early
Warning Department and FSCD are also key to creating such linkages.

Please see Chapter 8 on Risk Management for more information on these linkages.

b) For graduation

The Federal Government has designed the PSNP and broader FSP to work in a
coordinated way to move households out of food insecurity. To achieve graduation
from food insecurity, all components of the FSP must work well and in a coordinated
fashion. Particularly critical are the delivery of timely and predictable transfers in
building the confidence of risk-adverse households to take credit to build their assets
through investments tailored to their needs, interest and capacity – as should happen
through the HABP and the contribution that the community assets developed through
public works and CCI can play in enhancing household asset building.

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To achieve such coordination, the PSNP, HABP and CCI are implemented in the same
geographic areas. PSNP households are targeted for financial services and technical
support through HABP on a priority basis, and that these households have access to
multiple financial products.

Concurrently, other investments in rural economic development, agricultural

productivity and social infrastructure, to name a few, can increase the likelihood that
household graduate from food insecurity.

The woreda development plan is the main mechanism by which various activities –
Government and non-Government programmes and initiatives - are coordinated and
complementarity and synergies achieved to promote graduation from food insecurity.
There are two forms of woreda plans: the five year woreda development plan which
may have the overall objective of achieving food security and contributes to the
realisation of the Regional development plans and PASDEP at the federal level; a
planning exercise is then carried-out annually to identify activities based on available
budget. In principle, the annual planning process supports the achievement of the 5-
year plan, although woredas may use different planning methods.

The woreda development plan and annual planning process bring together all the
streams of investments woredas receive from Federal and Regional Governments,
NGOs and other possible sources. The woreda plan can sequence these investments
in a manner that can promote graduation from food insecurity, while also creating
synergies that achieve other related-objectives, such as improved health and education
outcomes.

c) To achieve goals of PASDEP

Because of its size and established institutional structure, the PSNP can be an
effective means of deliver many of the development objectives stated in PASDEP.
While it is not the responsibility of the PSNP to deliver these objectives, the staff,
systems and processes of the PSNP can coordinate with other Government
departments and NGOs in areas that are priorities for PSNP communities, such as
improved nutrition and educational outcomes. The Table on Linkages above suggests
what these forms of coordination might look like.

The section below suggests in more detail what linkages between the PSNP and
National Nutrition Program might look like. Similar linkages can be envisioned with the
Ministry of Women’s Affairs to achieve the National Plan for Women, with HAPCO for
mainstreaming HIV and AIDS, among other development objectives.

The Woreda Health Desk may educate members of the Woreda and Kebele Food
Security Task Forces, DAs and staff of the WNRMD on nutritional security to promote
the use of trees and crops with a nutritional added value in PSNP soil and water
conservation activities.

Health Extension Workers (HEW) can carry out Behavioural Change Communication
(BCC) using Entertainment Education during PSNP payments and/or public gatherings
to promote feasible changes within the households with regards to allocation of
different quantities and types of food to pregnant-lactating women and children. During
the annual PSNP planning process, the community could decide to allocate some

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PSNP public works labour to these types of activities. In this way, PSNP clients could
implement such events using different entertainment media such as games, drama,
songs and poems.

HEW should encouraged women participating in the PSNP who become pregnant to
access and utilize essential health and nutrition services at facilities and community
level from pregnancy up to the time their child reaches two years. HEWs can also
encouraged PSNP clients to engage in production activities with nutritional benefits
(e.g. home-gardening, food processing, poultry, etc.).

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Chapter 4: PSNP BUDGET ARRANGEMENTS

4.1 Introduction .......................................................................................................... 67

4.2 Transfers .............................................................................................................. 68
4.3 Administrative Budget........................................................................................... 68
4.4 Capital Budget ...................................................................................................... 70
4.5 Contingency Budget ............................................................................................. 71
4.5.1 Cash .............................................................................................................. 71
4.5.2 Food .............................................................................................................. 72
4.6 Regional Level Management Budget .................................................................... 72
4.7 Federal Level Management Budget ...................................................................... 73
4.8 Capacity Building Budget...................................................................................... 74
4.9 Financial Reporting............................................................................................... 75

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CHAPTER 4: PSNP BUDGET ARRANGEMENTS

4.1 Introduction

This chapter pulls together all the guidance on budgeting systems for the PSNP.

The PSNP budget is determined each year based on a formula derived from the
number of clients in each program woreda (see section 3.2). The overall budget
consists of seven components:
• Transfers
• Administrative budget
• Capital budget
• Contingency Funds
• Regional management budget
• Federal management budget
• Capacity Building budget

These are described in below. Box 3 outlines the formula for determining the annual
PSNP regular budget. These budget lines, which are used for planning purposes, are
not followed in the reporting process. For details of how expenditure is reported, please
see section 4.9.

Box 3: Formula for Determining Annual PSNP Regular Budget

(i) Woreda level resources:

Cash transfer = Client numbers x the cash wage rate x 5 days of work x 6 months.
This is then used to calculate the base programme costs (total value of transfers x
1.25)
Contingency Budget = 5% of base programme costs
Capital Budget (for public works)= 15% of base programme costs
Administrative Budget = 5% of base programme costs

(ii) Regional level resources:

Regional contingency budget = 15% of total woreda base programme costs
Regional management budget = 2% of total woreda base programme costs

(iii) Federal level resources:

Federal management budget = 1% of total regional programme costs
Capacity building budget = costs of capacity building requirements from regions and
woredas based on need

Each budget line, and the respective formula, applies to all PSNP woredas (both
Government and NGO woredas) unless stated otherwise. For example, the regional
and federal management budgets cover costs associated with implementing the PSNP

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in woredas supported by the Government and those supported by NGOs. In a similar
fashion, all woredas may request resources from the capacity building budget.
Box 4: Administrative and capital budgets in woredas supported by NGOs

In woredas supported by NGOs, the administrative budget will be 5% of the base

programme costs (see Box 3) and the capital budget will be 15%. This follows the
budget formula currently used in all Government-supported woredas.

These resources will be managed by the NGO in consultation with the woreda. The
costs related to the additional operational expenses of NGOs will be outlined in the
contract between the NGO and donor. Details of this arrangement will also be
outlined in the operational agreement between the NGO and Region.

Under NO circumstances, may woreda, Zonal, Regional or Federal implementing

institutions use their PSNP budget to finance non-PSNP activities or use any of their
PSNP budget to finance activities through a loan, which that is then paid back.

Equipment and furniture that is purchased through PSNP resources must be used to
support the implementation of the PSNP. Any staff hired using PSNP resources must
work on the PSNP. It is not acceptable to use these resources to finance other sectoral
activities.

In the case that any PSNP budget is allocated to a sectoral office based on its annual
plan for the PSNP (administrative, management or capital budgets), the sectoral office
must not exceed the budgeted amount.

4.2 Transfers

Transfers constitute 80% of the base programme budget at woreda level. The total
volume of transfers to each woreda is determined by the client number. This number is
multiplied by the wage rate (in cash or food), and then by 5 days of work per month for
six months. Transfers can be provided in cash or food.

4.3 Administrative Budget

The administrative budget is 5% of the base programme cost at woreda level. The
following activities are financed under this budget line:

Human Resources: Woredas may chose to employ additional staff on contractual

bases i.e. skilled labour such as foremen/women, or other temporary staff under this
budget

Equipment and Materials: Office equipment and supplies required for running PSNP
activities should be covered under this budget line. Replacement of component parts
and minor computer purchases could be covered. The maintenance of existing
vehicles and other equipment CAN be financed through this budget line and is actively
encouraged. Equipment, such as vehicles and motorbikes, can also be rented on a
short-term or longer-term basis. This is an efficient use of PSNP resources when it

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allows the timely, predictable delivery of transfers to PSNP clients and creation of
quality public works. However, large-scale infrastructure development such as IT
network installation would not be covered.

Travel and Transport: Woreda staffs are expected to travel frequently to kebeles to
supervise and provide support to DAs and community in the implementation of PSNP.
The administrative budget will cover a pro-rata based proportion of the total food
security transport needs. Expenses should include fuel, maintenance, spare-parts etc.
on a pro-rata basis. In addition this budget is available for subsistence & per diem
expenses, public transport and vehicle hire. Staff travel to Safety Net kebeles will
include travel for awareness raising, training, supervision (including of public works)
and lesson learning.

Training: Training will be organised by the woredas to train woreda staff and sub-
woreda staff (e.g. DAs, kebele food security task force) on topics related to the
implementation of the PSNP. Those providing the training should have received
adequate TOT training. Training should be conducted to a level that ensures the
planned works will be carried out according to technical standards, and may include:

• Initial orientation for all labourers on public works and basic safety precautions;
• On-the-job training for labourers who require a level of skill or knowledge that is
beyond their previous experience, and on specific safety precautions;
• Orientation and critical on-the-job training for foremen/women and team leaders
who lack organisation skills and practical work experience. Women will be
prioritised and actively encouraged for training, especially involving skill
development; and
• Pre-implementation and on-going training for DAs/site managers, depending on
their experience.

During the planning of the public works, training requirements must be specified
including:
• The types and levels of training required,
• The number of trainees for each type of training;
• The timing and duration of training;
• How and by whom training would be organised;
• The funds required and the source of funding.

The cost of this training will be covered by the administrative budget of the woreda.

Food Management: The woreda administrative budget can be used to cover any costs
associated with the management of PSNP food resources, including off-loading from
trucks, the proper storage, accounting and distribution of food transfers to PSNP
clients. This should be used in a manner that provides timely, predictable deliver of
transfers to PSNP clients.

Monitoring and Evaluation: Woreda level monitoring and evaluation, including

sharing lessons and cross visits, to pay per diems and transport

Rapid Response Teams: Any RRT (Rapid Response Team) cost for woreda RRTs
will be covered through the administration budget.

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Communication: It is expected that PSNP will cover a pro-rata based proportion of
communication expenses [telephone and fax bills, email internet service provider (ISP)
costs etc.]` from the administrative budget.

Outsourcing services: Any needed outsourced services, such as computer support

services should be covered.

4.4 Capital Budget

The capital budget is 15% of the base programme cost at woreda level. The quality of
the public works requires financing for important non-transfer costs, which include the
capital costs of the project. These should be considered and budgeted at the Woreda
and Kebele level as necessary. The capital budget is used to purchase non-labour
inputs for public works, which should not exceed 20% of public works at woreda level.

The following should be considered under this budget:

Skilled and Semi-Skilled Workers: Planning, implementation and supervision of

public works may require personnel with knowledge and experience in: soil and water
conservation; forestry; pasture development and related works; irrigation; sanitation
works; building and road construction; physical planning. Woredas may also employ
such type of staff as needed on temporary contracts.

Within the communities, there are individuals who can provide semi-skilled labour.
These are masons, carpenters, foremen/forewomen, etc. They are paid from the PSNP
capital cost budget of the Public Works component at the prevailing local rates for such
services. They are NOT paid through the PSNP transfer budget.

Hand Tools: The woreda sectoral office implementing the public works sub-project is
responsible for ensuring the availability of the necessary hand tools such as spades,
shovels, hoes, crow bars, sledge hammer, rakes, pick axes, and mattocks. Tools must
be appropriate to the nature and scale of the works to be undertaken and to the local
terrain and traditions (familiar to the people who are to use them). The hand tools
should be purchased using the PSNP capital budget of the woreda in addition to any
construction equipment needed.

Equipment and Materials: Much of the equipment required for implementation of the
public works can be shared between different sites within a woreda. Equipment, such
as altimeters, compasses, inclinometers, pedometers, theodolites and other office
equipment can usually serve more than one site, and should be available at the level of
the woreda. Materials such as poles, cement, stones or sheeting may be required at
individual work sites. The cost of equipment and materials will be covered from the
PSNP capital input budget of the woreda.

Amenities at Work Sites: Programme implementers, with the collaboration of the

community, must ensure that the following are located at or near each public work site:
(i) first aid services; and (ii) tool repair and maintenance facilities (iii) child care support
mechanismxxv. Labourers will undertake the management of these amenities with the
assistance and close supervision of the implementing agency. These amenities will be
financed through the PSNP capital budget of the public works.

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First aid must be available at each work site, including a first aid kit and a trained
Health Extension Worker nearby. If there is no health centre or health post nearby, and
particularly where large numbers of workers are employed or hazardous work is being
undertaken, the services of a volunteer community health worker or Health Extension
Worker should be financed out of the PSNP capital budget of the component.

Facilities for the regular sharpening and minor repairs of hand tools should be available
at or near each work site. Local artisans may be assigned to this task; otherwise,
selected workers may be trained to undertake minor repairs and the additional tools
needed for such repairs will be provided.

Transport Facilities: Transport may be needed for implementation of the public works
(transporting tools, materials); planning and supervision; Transport services will be
financed through the PSNP capital budget of the public works. If it is necessary to rent
a pack animal (for transporting water, sand or stone for example), the service will be
paid on a piece-rate basis negotiated between the implementing agency and the
owner.

For woredas supported by NGOs, as listed in Annex 2 the administrative and capital
budget are allocated in the following manner:

The administrative budget is 5% of the base programme cost, which is used by the
NGO to cover its operational costs.

The capital budget is 15% of the base programme costs. This budget is used by the
NGO, in coordination with the woreda, to purchase the inputs required to deliver quality
public works, in line with the guidance on the use of the capital budget listed above.

The use of the 15% capital budget will follow the planning steps outlined in the sections
7.3, and will be planned jointly between the NGO and woreda. The use of this budget
will also be supported by a procurement plan, as described in section 8.2.

4.5 Contingency Budget

The Contingency Budget is 20% of the base programme cost at woreda level. Of this,
5% is held at woreda level and 15% at Regional level. It can be allocated in cash or
food, depending on the Annual Plan. The formula for determining the Contingency
Budget and the procedures to allocate the Contingency Budget to woredas and
Regions is different for cash or food. These differences are described below:

4.5.1 Cash

A woreda Contingency Budget calculated on the basis of 5% of each woreda’s base

programme cost (calculated from the cash transfer budget of the woreda) is held by the
woreda. The woreda Contingency Budget is made up of resources for transfers (80%)
and capital (15%) and administrative (5%) budgets, in the same way as the regular
PSNP budget.

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The Regional contingency budget is calculated on the basis of 15% of each Region’s
base programme cost (calculated from the cash transfer budget of the Region) and is
held by the Region.

4.5.2 Food

A Contingency Budget in food stock calculated on the basis of 5% of each woreda’s

food allocation is held by the NGO in NGO supported woredas. Non-NGO woredas
receive cash.

A Contingency Budget in food stock calculated on the basis of 15% of the national food
allocation is held by FSCD in EWRD warehouses or by the WFP at the federal level.

In PSNP areas supported by NGOs, as listed in Annex 2, the Contingency Budget is

always calculated in food and the full 20% contingency fund is held by the NGO for use
in the woredas it supports. However, the decision-making process to use PSNP
Contingency Budgets held by NGOs is the same as that for the Government
implemented programme.

4.6 Regional Level Management Budget

The regional management budget is 2% of the programme (cash) costs only for each
Region.

Human Resources: Regions may choose to employ temporary staff under this budget.

Equipment and Materials: Small office equipment and supplies should be covered
under this budget line. Replacement of component parts and minor computer
purchases could be covered. The maintenance of existing vehicles and other
equipment CAN be financed through this budget line and is actively encouraged.
Equipment, such as vehicles and motorbikes, can also be rented on a short-term or 3
months per EFY. This is an efficient use of PSNP resources when it allows the timely,
predictable delivery of transfers to PSNP clients and creation of quality public works.
However, large-scale infrastructure development such as IT network installation would
not be covered.

Travel and Transport: Frequent staff travel to woredas is expected and it is

understood that the PSNP budget will cover a pro-rata based proportion of the total
food security transport needs. Expenses should include fuel, maintenance, spare-parts
etc. on a pro-rata basis. In addition this budget is available for subsistence & per diem
expenses, public transport and vehicle hire. Staff travel to the woreda will include
travel for awareness raising, training, supervision (including of public works) and lesson
learning.

Training & Awareness Creation/orientation: Any training (including materials and

reproduction, facilities, per diems and training staff) undertaken at regional or zonal
level related to PSNP implementation will be financed through this budget line. There
needs to be both start-up and recurrent training on the PSNP (because of the staff
turn-over plus the need for refresher training). This item includes costs associated with
preparing and disseminating current or amended PSNP guidance and procedures (e.g.
summarised PIM information) for improved staff orientation and awareness.

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Monitoring and Evaluation: Unless included under specified line items, monitoring
and evaluation by the region will be covered by this line item. This may include the
recruitment of local consultants. Lesson learning events fall under this item (covering
costs such as venue hire, documentation reproduction).

Other Costs: All institutions involved in the implementation of the PSNP (including
BoFED, Natural Resource Management Core Process (NRMCP) Department,
Education and Health Bureaus, Rural Road, Rural Water Supply etc) could prepare
action plan and budget for supervision, technical backstopping, monitoring and
evaluation activities and these costs will be covered by the Regional Management
budget line. The action plan and budget should be submitted to the Regional Food
Security Office for incorporation in to the Regional Annual Plan and Budget of the
PSNP.

Rapid Response Mechanism: Costs related to the operation of the regional RRM will
be covered under this line item.

Communication: It is expected that PSNP will cover a pro-rate based proportion of

communication expenses (telephone and fax bills, email ISP costs etc.)

Outsourcing services: Any needed outsourced services, such as computer support

services.

4.7 Federal Level Management Budget

The federal-level management budget is 1% of the total programme cost and covers
the following items:

Human Resources: The federal-level management budget is used to hire contract

staff, TAs or consultants, as needed, to meet any short-term gaps in human resources
or to respond to specific needs of the PSNP. This includes the Information Centre staff,
among others.

Coordination: Costs for regular meetings with regional food security heads, heads of
BoFED and NRMD and regional Safety Net technical staff will be part of this budget.

Equipment and Materials: Small office equipment and supplies should be covered
under this budget line. The maintenance of existing vehicles and other equipment CAN
be financed through this budget line and is actively encouraged. Equipment, such as
vehicles and motorbikes, can also be rented on a short-term basis (up to 3 months per
EFY) or longer-term basis. This is an efficient use of PSNP resources when it allows
the timely, predictable delivery of transfers to PSNP clients and creation of quality
public works. While large-scale infrastructure development such as IT network
installation would not be covered, replacement of component parts and minor computer
purchases could be covered.

Travel and Transport: Frequent staff travel to Regions and Woredas is expected and
it is understood that the management budget will cover a pro-rata based proportion of
the total transport needs of DRMFSS, NRMD and MoFED. Expenses should include
fuel, maintenance, spare-parts etc. on a pro-rata basis. In addition this budget is

73
available for subsistence & per diem expenses, public transport and vehicle hire. Staff
travel to the woreda will include travel for awareness raising, training, supervision
(including of public works) and lesson learning.

Training: Any training undertaken at federal level along with some overall
development of overall training programs and training materials will be financed
through this budget line. There needs to be both start-up and recurrent training on the
PSNP (because of the staff turn-over plus the need for refresher training).

Monitoring and Evaluation: Unless included under specified line items, monitoring
and evaluation by the federal FSCD, EWRD, NRMD and MoFED will be covered by
this line item. This may include the recruitment of local consultants. Lesson learning
events fall under this item (covering costs such as venue hire, documentation
reproduction).

Rapid Response Mechanism: Costs related to the operation of the federal RRM will
be covered under this line item.

Communication: A pro-rate based proportion of communication expenses (telephone

and fax bills, email ISP costs etc.) will be covered.

4.8 Capacity Building Budget

The capacity building budget is determined annual based on actual needs

assessments.

The capacity building budget for all equipment and services required at Regional and
woreda levels is equivalent to up to 1% of the regional base programme cost at a
maximum. The Federal-level capacity building budget is based on needs
assessments. The capacity building budget is based on the annual plans submitted by
Regions, including woreda plans, to FSCD. FSCD approves the capacity building
budget, in coordination with EWRD, NRMD and MoFED, as required, provided it is
based on sound analysis and demonstrated need.

The capacity building budget is to be used to address priority capacity needs. The rules
for identification of priorities are as follows:

1. Each woreda and region MUST maintain at least the minimum standards described
in sections 3.5.2 to 3.5.4 above.

2. These minimum standards may be exceeded where this is necessary to maintain or

improve the effectiveness of PSNP implementation. The minimum standards are not a
guideline for what levels should be achieved, they are a guideline that capacity will
usually exceed in practice.

3. Above the minimum standards, Regions are free to make evidence-based proposals
for why further capacity is justified. This should clearly link the proposed capacity
investment to the current situation in relation to the specified standards, the current
implementation constraint caused by the identified need, and the expected
improvements as a result of the proposed investment in capacity.

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4. The allocation of capacity building budget will be higher in the first two years of the
current phase of PSNP (2010 – 2014), and lower in the final three years, to reflect the
requirement to bring capacities up to and above minimum standards.

4.9 Financial Reporting

The Financial Reporting system for the PSNP is the responsibility of MoFED. Reporting
is based on a set of agreed formats. These are described in detail in the Financial
Management Guideline. The section below reviews basic guidance on financial
reporting, as it relates to the budget lines described above.

All PSNP cash resources are reported on regularly, as per the guidance outlined in the
Financial Management Guidelines. The budget lines described above, are reported on
in the following manner:

• Transfers are reported as Public Works or Direct Support expenditure categories.

• The Woreda administrative budget is reported as Administrative & Management
expenditure category.
• The woreda capital budget is reported as Capital expenditure category.
• The contingency budget – at both Regional and woreda level – is reported against
the “response to emergency needs (contingency)” expenditure category.
• The Regional Management Budget is reported against the Institutional Support
expenditure category.
• The Federal Management Budget is reported against the Institutional Support
expenditure category.
• The capacity building budget (at all levels) is reported against the Institutional
Support expenditure category.

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CHAPTER 5: PSNP INSTITUTIONAL AND MANAGEMENT
ARRANGEMENTS

The Productive Safety Net Program is a component of the larger Food Security
Program of the Government of Ethiopia. Food Security line agencies at every level of
Government are accountable for the oversight and coordination of the FSP with
implementation being undertaken by line ministries, Government agencies and other
partners at all levels. These arrangements are cemented in a Memorandum of
Understanding between Government and development partners. The roles and
responsibilities of implementing partners are detailed below.

5.1 Federal Level

Ministry of Finance and Economic Development (MoFED)

Main Role
MoFED is accountable for the overall financial management of the programmes,
including management of the special and pooled Birr accounts and reporting on the
PSNP and risk financing.
Responsibilities
• Disburses safety net resources to Ministries at Federal-level and to Regions in line
with requests submitted by FSCD.
• MoFED assumes the usual financial responsibilities (including reporting on and
auditing of PSNP resources) under the normal government financial system.

Ministry of Agriculture (MoA)

Main Role
The main role of MoA is to oversee the management and coordination of the PSNP.
Responsibilities
• Provide technical support for the planning and implementation of the Programmes as
necessary and assist in setting the policy direction to which the PSNP contributes.
• The MoA management meetings, attended by the State Ministers of MoA and chaired
by the Minister, advises the Minister on all key decisions, including programme
resource allocation to the various implementers, based on the consolidated proposals
prepared by the FSCD.

Disaster Risk Management and Food Security Sector (DRMFSS)

Main Role
The main role of DRMFSS is to coordinate the PSNP. DRMFSS is directly answerable
to the Minister of MoA for the performance of the PSNP.
Responsibilities
The State Minister for DRMFSS:
• Chairs the Inter-Ministerial Management Committee for the PSNP, which is
composed of the State Ministers for MoA, MoFED and other relevant Ministries
(MoLSA. MoE, MoFA, etc), as necessary. This Committee identifies and resolves key
implementation issues.
• Chairs the Joint Strategic Oversight Committee (JSOC) to be held every two months,
and
• Chairs the twice monthly FSCD and EWRD planning and monitoring meetings for
PSNP risk financing.

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Food Security Coordination Directorate (FSCD)
Main Role
The main role of the FSCD is to facilitate the day-to-day general management and
coordination of the PSNP. It has direct responsibility shared with the Early Warning and
Response Directorate (EWRD) for the food transfer components (including risk
financing). With EWRD, FSCD co-chairs the Technical Committee on PSNP transfers.
FSCD also supports the Natural Resource Management Directorate (NRMD) for the
public works component.
Responsibilities
• Provide support to coordination and oversight of the PSNP;
• Provide support to ensuring appropriate linkages of the PSNP with other FSP and
development interventions;
• Consolidate PSNP annual work plans and budget proposals from the Regions, make
resource allocation proposals for decision by the Minister through the State Minister
for DRMFSS;
• On this basis, allocate PSNP resources to the Regions
• Provide technical support to regional food security offices
• Monitor overall capacity to implement the PSNP
• Monitor and evaluate the efficiency, effectiveness and impact of the PSNP
• Provide procurement support to PSNP in accordance with PSNP procurement
procedures
• Review and provide feedback on reports submitted by regional food security offices
on the implementation of regional Safety Net Programmes, with attention to the
mainstreaming aspects of both gender and HIV and AIDS in the programme
• Facilitate information exchange and document experiences and lessons learned
across regions
• Submit periodic progress reports on implementation of the PSNP to MoA, including
analysis of sex-disaggregated data.
• Allocate PSNP resources to regions, and ensure that they are properly utilised
• Implement the Rapid Response Mechanism
• Monitor and evaluate adherence to PSNP procedures and guidelines, effectiveness of
utilisation of resources, and programme impact, including the promotion of gender
equity and HIV and AIDS vulnerabilities and awareness raising.
• Update PSNP guidelines and operational mechanisms in response to M&E findings,
RRM and emerging issues and disseminate as necessary

Early Warning and Response Directorate (EWRD)

Main Role
EWRD plays a critical role in PSNP risk financing by providing both accurate and timely
early warning information as well as adequate linkages between PSNP risk financing
resources activities and other activities related to humanitarian response. EWRD also
co-chairs the Technical Committee on PSNP Transfers.
Responsibilities
• Collects and analyses early warning data from Regions and analyses federal-level
triggers;
• Supervises Disaster Risk Management Technical Committee in developing a
consensual early warning statement on a monthly basis and ensures that early
warning system and structures function at each level.

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• EWRD is also responsible for the procurement, transport and management of in-kind
commodities for the PSNP.
• Participate, when conducted, in Food Security Needs Assessment for the PSNP
• Assist in logistic issues for food resources when needed. The logistics responsibility
of the EWRD will include warehousing, tendering, awarding, and contracting
transporters and effecting payments.
• Participate in annual reviews conducted by FSCD to identify areas where
coordination needs to be improved.
• Coordinate with FSCD to ensure no gaps emerge between the PSNP and emergency
assistance.
• Contingency planning development and updates

Natural Resource Management Directorate (NRMD)

Main Role
The NRMD, with support of its Federal Public Works Coordination Unit (PWCU),
coordinates and oversees the Public Works component of the PSNP. An alternative
JSOC
Responsibilities
• Supports Regional Public Works Focal Units (PWFU) and awareness-creation;
• Oversees and supports M&E of public works, including the conduct of Public Works
Reviews and Impact Assessments;
• Ensures satisfactory implementation of the ESMF and review of ESMF design as
required;
• Capacity building for public works, including development of appropriate training
materials and conduct of capacity needs analysis;
• Provide technical support and quality assurance to public works as required,
concerning planning, design, operations and maintenance to ensure sustainable
public works, as well as the development and potential use of GIS in these functions;
• Oversees and supports the integration of non-Natural Resources sectors into the
planning, design and implementation of public works;
• Liaises with FSCD and other PSNP partner institutions on coordination and
management of public works, and participation in PSNP design and management
forums, including policy issues, the roll out of the pastoral PSNP and in the
development of exit strategies;
• M&E of public works;
• Coordinates with SLM and MERET and other relevant projects and initiatives.

Joint Strategic Oversight Committee (JSOC)

Main Role
The main responsibility of the JSOC is to ensure dialogue and joint oversight of
programme implementation at a strategic level. Regions will attend alternative JSOC
meetings.
Membership
• State Minister for DRMFSS (delegated to other MoA State Ministers as required) –
Chair
• Director, FSCD
• Director, EWRD
• Director, NRMD
• Director, MoFED - COPCU

79
• Director, FCA
• Director, AED
• Regional BoARD Heads
• Development Partner Representatives
Responsibilities
• Making decisions based on the analysis of the Technical Committees (see below) on
the appropriate responses to issues emerging during the implementation of the
programmes.
• Making decisions on strategic issues concerning programme implementation,
linkages with emergency interventions, other food security interventions and
agricultural growth programme, and related policies
• Engaging in policy and strategy dialogue on issues that are of direct relevance to the
PSNP.

PSNP Risk Financing Management Committee

Main Role
The main role of the RF Management Committee is to allocate transfers to targeted
clients in PSNP woredas through the Risk Financing facility. The RF Management
Committee meets at the request of the Early Warning Working Group when information
demonstrates the need for a risk financing response in PSNP woredas.
Membership
• State Minister for DRMFSS - Chair
• EWRD
• FSCD
• MoFED - COPCU
• Relevant regional bureaus (BoARD, BoFED, DPPFSC)
• PSNP development partners
Responsibilities
• Reviewing the client numbers
• Reviewing and approving the release of financing from the Risk Financing facility
based on Early Warning triggers and specific requests from woredas
• Monitoring the on-going release of subsequent tranches of funds based on up-to-date
reports
• Deciding when to transition to an alternative aid modality
• Reviewing the post-event report on the effectiveness of the response

Three Joint Technical Committees [General Management and Transfers, Public

Works, HABP]
Main Role
The main role of the three Joint Technical Committees is to report to the JSOC.
Membership
• Chaired by the responsible Directorate Head
• Development partners
• Other relevant line agencies and stakeholders
Responsibilities
• Assessing performance and progress toward achievement of agreed benchmarks;
• Recommending to the JSOC or Minister of MoA appropriate responses to issues
emerging during programme implementation;
• Promoting linkages with other food security programmes, agricultural growth

80
 initiatives and emergency interventions, and
• Managing and overseeing ad hoc measures to support regional or federal authorities
to implement specific aspects of the programmes
• Establish linkages with DRM and climate change initiatives

General Management and Transfers Joint Technical Committee

Main Role
The main role of the General Management and Transfers Joint Technical Committee is
to provide an ongoing support to the programme on strategic issues related to the
implementation and newly emerging issues affecting the programme. The JTC will
guide and monitor progress towards delivery of the outputs and achievement of the
outcomes of the PSNP and broader FSP.
Membership
• Food Security Coordination Directorate (FSCD) – Co-Chair
• Ministry of Finance and Economic Development (MoFED) - COPCU
• Natural Resource Management Directorate (NRMD), /Public Works Coordination Unit
(PWCU)
• Early Warning and Response Directorate (EWRD) – Co-Chair
• Ministry of Labour and Social Affairs (MoLSA)
• Ministry of Health (when necessary)
• Ministry of Education (when necessary)
• Women’s Affairs Desk in MoA
• Other federal and/or regional implementing bodies as required
• PSNP development partners
Responsibilities
General Management
• Make decisions and refer to the JSOC questions involving wider programme issues
as required
• Ensure that key programme principles and commitments laid out in the MoU are
adhered to by Government, development partners and stakeholders
• Conduct regular analysis of trends with regard to achieving programme objectives
(including graduation of clients) and make appropriate policy recommendations.
• Initiate discussions on PIM revision and approve amendments as necessary.
• Oversee the development of manuals and guidelines on the implementation of the
Programme
• Regularly review linkages between PSNP, HABP and other FSPs and provide
recommendations
• Organise senior level discussion forums on critical policy issues relevant for PSNP.
• Organise consultation forums as necessary with regional implementing bodies
including DPPFSC, BoFED, NRMCP/BoARD etc.
• Serve as an information-sharing network on experiences and best practices on social
protection, safety nets and broader food security programming.
• Provide guidance on linkages between PSNP and other food security programmes on
the one hand and between PSNP and emergency interventions on the other hand
• Undertake any other tasks as members see fit

Monitoring & Evaluation

• Make decisions and refer to the JSOC questions involving wider programme issues
as required

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• Organise joint programme review missions and agree on issues to be assessed.
• Undertake regular monitoring of progress against the annual plan and agreed action
plans based on the findings of the review missions.
• Plan and coordinate studies and issue-specific assessments
• Initiate the organisation and field RRTs, review findings and agree on recommended
actions.
• Establish technical taskforces as necessary and review their progress.
• Oversee major M&E related activities including baseline surveys, annual reviews mid-
term and terminal evaluations.
• Review progress reports.

Financial Management
• Make decisions and refer to the JSOC questions involving wider programme issues
as required
• Provide support to resource mobilisation efforts of GOE for PSNP
• Review PSNP financial reports and provide feedback to relevant government bodies.
• Ensure that adequate programme resources are available to meet the food/ cash
need of the programme.

Risk Financing
• Make decisions and refer to the JSOC questions involving wider programme issues
as required
• Monitor implementation of Risk Financing Guidelines

Social Development
• Make decisions and refer to the JSOC questions involving wider programme issues
as required
• Provide guidance and technical support to addressing Gender Equality concerns in
PSNP planning and implementation.
• Periodically review progress towards the mainstreaming of HIV/AIDS in PSNP

Cash and food Transfers

• Make decisions and refer to the JSOC questions involving wider programme issues
as required
• Follow up on the timeliness and adequacy of transfers to PSNP clients..
• Identify and analyse strategic issues affecting the timeliness, predictability and
adequacy of transfers and programme sustainability. Provide recommendation for
corrective measures as appropriate.

Public Works Joint Technical Committee

Main Role
The main role of the Public Works Joint Technical Committee is to guide and monitor
the progress towards delivery of PSNP public works outcomes and outputs, and
address policy and operational issues as they arise.
Membership
• Co-Chaired by NRMD Director and Representative of Development partners
• Natural Resource Management Directorate (NRMD)/PWCU
• One representative each from:
• Environmental Protection Authority (EPA)

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• Ministry of Education
• Ministry of Water Resources
• Ethiopia Roads Authority
• Ministry of Health
• Women’s Affairs Desk of MoA
• Food Security Coordination Directorate
• PSNP development partners
Responsibilities
• Review and assess the plans performance and progress of public works towards the
achievement of agreed benchmarks;
• Make decision on strategic issues affecting public works implementation
• Discuss strategic issues arising from the implementation of public works which affect
the broader PSNP and develop and propose recommendations to JSOC;
• Promote linkages with other public works-related programs and organizations as
appropriate, such as Sustainable Land Management (SLM), MERET, and
Complementary Community Investment (CCI), etc.;
• Review standards, quality and compliance of public works with agreed norms, and
identify the need for technical assistance and other forms of potential donor support
for attention by the PWSG; and
• Liaise with PSNP/HABP Technical Committees as appropriate.

Task Forces and Support Groups

RF Task Force: The RF Task Force oversees the operationalisation of the RF

Mechanism.

Monitoring & Evaluation Task Team will assist the FSCD in monitoring the
implementation of the FSP M&E Action Plan, notably to ensure that the system has a
high degree of credibility, and is producing and analysing sex-disaggregated data.

Food Management Task Force: The over-all objective of the FMTF is to provide
support to DRMFSS for the implementation of timely food transfers for the PSNP and
emergency responses. Specifically, the objective is to improve the overall food
management system (food accounting, internal control, recording, reporting) and
operational issues (planning and implementation) and improve the coordination and
communication between different actors. Membership includes: WFP, USAID, EWRD,
FSCD, DCT.

Pastoral Task Force provides advice and support for the implementation of PSNP to
regions with pastoral communities and to PSNP Technical Committees.

Public Works Support Group (PWSG): The PWCU still needs assistance.
Furthermore, the donors are providing resources to the Unit, so an element of
oversight is required, as well as advice and support. Thus, the PWSG will provide
advice, assistance for the PWCU. It will also act as a ‘clearing house’ for monitoring
and follow-up of the progress of the PWCU/PWFU and the TAs. In conclusion, it will
facilitate, support, advise, monitor and follow-up.

Communications Task Force plays a role in guiding the implementation of the PSNP
Communications Strategy and supports the Communications TA in FSCD.

83
Capacity Building Task Force provides clear direction, roles and responsibilities in
steering the implementation of the capacity building strategy of the Programme. The
CBTT works closely with the FSCD and NRMD and with the various subject matter
Technical Assistants (TAs) attached to FSCD and NRMD.

Financial Management Task Force supports the strengthening of the financial

management systems of the PSNP.

Social Development Support Task Force at federal level guides the implementation
of the recommendations of the PSNP Gender and HIV and AIDS Contextual Studies
and provides support to the Social Development TA in FSCD.

PSNP Donor Working Group (DWG)

Main Role
The primary purpose of the DWG is to support and ensure donor harmonisation as it
relates to the implementation of the PSNP.
Responsibilities
• Specific responsibilities will include the management of implementation support
missions, agreement on common reporting requirements, development of a
mechanism to reduce transaction costs on Government and development partners for
programme implementation, coordination of the response to emerging issues related
to humanitarian risks, response to requests for support of the Rapid Response
Mechanism and sharing information on specific agency information requirements
during the implementation. The Chair of the Donor Working Group will rotate every six
months. The responsibilities of the Chair will include the coordination and
management of regular donor meetings and the supervision missions. In addition,
support will be provided to the Chair of the JSOC.

Donor Coordination Team (DCT)

Main Role
The DCT will coordinate the activities of the Donor Working Group for PSNP and
Government-development partner processes.
Responsibilities
• General coordination activities to support donor coordination and harmonisation with
Government, including facilitating planning of the JRIS Missions, supporting regular
coordination meetings, and preparation of RRT visits.
• Facilitation of studies, consultancies and workshops, as agreed between the DWG
and Government
• Facilitation of programme adjustments, based on agreement reached during the JRIS
Mission.

84
Figure 2: PSNP Coordination Mechanism (Joint Government and Development Partners)

RURAL ECONOM IC D EVELOPMEN T & FOO D SECU RI TY (RED-FS) – TECHNICAL

COMMI TTEE O N D RM&FS

DRM Secto r Joint Strategic

FS Sector Joint St rategic Oversight Committee Food Se curity
Oversight Comm ittee ; Chair:
MoA DRM FS S S tate M inister Cha ir: M oA DRM FSS S tate Minister proje cts n ot a ligne d
with FSP

Risk
Joint TC 1 : Joint TC 2: Joint TC 3 : Ex te nsion
Fin ancing
Ge neral PW/ CCI H ABP T ask Force
Task Force Public
Ma nagemen t &
Works
Tra nsfers C o-Cha irs: Co-Chai r:
Social Supp ort Di rector Na tural Exten sion &
D evelopmen t Grp Resource (ARD) FC A
Co-Ch airs: Finan cia l
Support & MoWR
EWR & FSCD services
Group Di rector
Directors T ask Force
Communica tion
T ask Force

Food Ca pacity Financia l M&E Pastoral

Mana ge ment Building Mana ge ment T echnica l Task Force
T ask Force Task Force Ta sk Force T ea m

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5.2 Regional Level

Regional Council
Main Role
The Regional Council is responsible for overall PSNP implementation in the Region.
Responsibilities
• Regularly review progress in PSNP implementation and progress towards the PSNP’s
objectives;
• Holds programme implementers to account for the quality of programme implementation

Regional Cabinet
Main Role
The main role of the Cabinet, chaired by the Regional President, is to make decisions on
issues arising from BoARD regarding PSNP implementation and ensure that the broad
regional development priorities are reflected in the Regional FSP plans, and those for
PSNP.
Responsibilities
• Responsible for the review and approval of food security, PSNP annual plans and
budgets submitted by woredas and consolidated regional PSNP work plans and budgets
by the Regional Bureau of Agriculture and Rural Development (BoARD).
• The Cabinet also reviews and approves the annual and biannual progress reports on
implementation of the regional PSNP and budget utilisation.

Regional Food Security Steering Committee (RFSSC)

Main Role
The main role of the RFSSC is to give strategic direction to ensure the proper
implementation of food security strategies and programmes at the Regional level based on
the recommendations of the Regional FS Task Force chaired by the Head BoARD.
Membership
• Regional President or his/her delegate, Chair
• DPPFSC
• EWRCP
• NRMCP
• BoFED
Responsibilities
• Ensures the effective integration of the Regional PSNP into the Regional development
plan,
• Participates in monitoring and evaluation of Programme activities and
• Analyses the consolidated FSP work plan and budget proposal submission to the
Regional Cabinet
• Approves the use of the Regional contingency budget

Bureau of Finance and Economic Development (BoFED)

Main Role
BoFED is responsible for the overall financial management of regional PSNP budget.
Responsibilities
• Financial reporting
• Provides technical support to woreda (either directly or through Zonal Departments of
Finance and Economic Development).
• Responsible for disbursing PSNP resources to woredas and line departments in line with
requests submitted by the DPPFSC.
• Manages Regional contingency budget in coordination with Food Security

86
Regional Bureau of Agriculture and Rural Development (BoARD)
Main Role
The main role of BoARD is to manage the PSNP and oversee the integration of the PSNP
into the Food Security Programme and the Regional Rural Development Strategy.
Responsibilities
• Provides overall guidance to the Regional Food Security Office and line bureaus to
ensure coordination on planning and implementation of the Regional PSNP;
• Ensures efficient procurement where applicable; and
• Reviews and provides feedback on reports submitted by Regional Food Security
Coordination Offices / Core Process on implementation of safety net interventions.

Regional Disaster Preparedness and Prevention and Food Security Coordination

Office (DPPFSC)xxvi
Main Role
The main role of the DPPFSC is to manage and coordinate the PSNP as a whole and
directly manage the PSNP transfer component of the EWR Core Process. DPPFSC reports
to BoARD and is also technically accountable to the FSCD.
Responsibilities
• Consolidate annual implementation plans and budgets for the region in line with
proposals from woredas and line bureaus, for submission to BoARD and decision on
resource allocation by the Regional Cabinet as noted above;
• Mobilises technical assistance as needed;
• Identifies and monitors capacity to implement PSNP activities at regional, woreda and
kebele levels;
• Supports the NR Department in overseeing and supporting the implementation of PSNP
public works in the Region (including ensuring implementation of the ESMF);
• Holds review meetings with government and non-governmental agencies involved in
implementation of the PSNP every two months;
• Approves NGO plans of PSNP activities;
• Coordinates monitoring and evaluation activities, including the analysis of sex-
disaggregated data;
• Prepares progress reports; and
• Establishes and implements the Regional Rapid Response Mechanism.
• Collecting and reviewing progress reports from woredas, line bureaus and other agencies
engaged in safety net interventions, and providing feedback to those organisations
• Preparing quarterly and annual progress reports, including sex-disaggregated data, on
implementation of the PSNP for submission to Regional BoARD, as well as FSCD
• With the assistance of the Social Development Officer, provides oversight for the
management, implementation, and coordination of direct support activities to promote
gender equity and mainstream HIV and AIDS, including technical back stopping support
and facilitating coordination of direct support activities with relevant sector bureaus as
may be required.
• Design, translation and printing and distribution of PSNP client cards to woredas
• Manages Regional contingency budget in coordination with BoFED

Regional Early Warning and Response Core Process

Main Role
The main role of the Regional Early Warning and Response Core Process is to collect
early warning data, analyse and report on early warning data from the woreda and zone
levels.
Responsibilities
• Performs a detailed analysis of the data and sends on analysed data and reports to the
EWRD.

87
• Supports the FS Core Process and concerned woredas in managing the scale-up of the
PSNP system when the risk financing is activated.
• Supports the transport and management of food resources for the PSNP.
• Ensures that the food resources are distributed to PSNP clients.

Natural Resource Management Core Process (NRMCP)

Main Role
The main responsibility of the NRMCP is for the planning, capacity-building,
implementation, monitoring and performance of the public works component of the PSNP.
The mandate for conducting the necessary tasks is assigned to a PWFU within the
NRMCP
Responsibilities
• Implements the public works M&E system, including regular reporting to the federal
PWCU on the activities, outcomes, quality and effectiveness of the public works
programme, and participation in Public Works Reviews and Impact Assessments as
required;
• Ensures implementation of the ESMF through integration of the ESMF in the planning
procedures and training for the public works programme;
• Consolidates public works plans and budgets developed in the woredas;
• Oversees woreda supervision of the public works, and provides technical backstopping
as required;
• Plan and delivers annual public works training programmes;
• Assesses the effectiveness of training, undertaking training needs assessments;
• Reviews community level public works planning procedures and formats in conjunction
with woreda staff;
• Oversees integration of community watershed plans into woreda plans;
• Liaises between public works planning and non-labour inputs procurement to ensure that
materials and expertise are available as required for public works implementation;
• Knowledge management including identifying and disseminating best practices, reviewing
standards and work norms, disseminating technical standards; and identifying new
technologies to enhance the quality, sustainability and impact of public works;
• Liaises with PWCU, FSCD and other PSNP partner institutions on coordination and
management of the public works, and participation in PSNP management forums; and,
• Supports contingency planning for PSNP risk financing at woreda level.

Two Technical Committees

Main Role
The main role of the General Management and Public Works Technical Committees is to
provide oversight and supervision to lower level implementers, ensuring that guidance
emanating from the different regional sectors is coordinated and consistent.
Membership
• DPPFSC
• EWRCP
• NRMCP
• BoFED
• Women’s Affairs Desk/Department (of BoARD)
• Relevant line ministries
Responsibilities
• Assist responsible departments to ensure synergy between plans and activities and the
plans and activities of other FSP components and of other development interventions in
the Region.

88
 Figure 3: Regional PSNP Coordination and Management Mechanisms

Regional President

FSP Steering Committee

Chair: Regional President

Regional Food Security Task Force

Chair: BOARD Head
Relevant Directors of other (non-ARD) Agencies

Regional Food Security

Coordination Office Coordination
with HABP

JOINT TC 3
JOINT TC 1 JOINT TC 2
General Management & PW/CCI
HAB
Transfers
P Chair:
Chair:
Extension
Chair: EWRFS Head Natural Resources
Head

5.3 Zonal level

In Amhara and Oromiya regions, zones are a bridge for communication between the
regional and woreda levels. Zones have been delegated and authorized by the region. In
SNNP Region however, zonal administrations have more autonomy, such as the existence
of zonal councils.

5.4 Woreda Level

The woreda is the key level of government that determines needs, undertakes planning
and implements the PSNP.

Woreda Council
Main Role
The main role of Council is to oversee the implementation of the PSNP
Responsibilities

89
• Allocates PSNP resources to kebeles and woreda sector offices, based on the
recommendations of the Woreda Food Security Task Force, as part of its responsibility for
woreda plans and budgets.
• Guides and oversees the integration of the planning and implementation for the PSNP,
and for the FSP as a whole, in the woreda integrated plan.
• Assisting in resolving unresolved appeals submitted to them by the kebele council and
sharing the outcomes of these appeals cases with the WFSTF.
• Works with kebele councils to ensure that up-to-date listings of clients are posted in
public locations at woreda, kebele and community levels
• Works with Kebele Councils to ensure that up-to-date listing of appeals and appeals
resolutions are posted in public locations at woreda, kebele and community levels.
• Approves the use of the woreda contingency budget
• Approve action plans of each institutions involved in the implementation of the PSNP
• Review the performance of each institution involved in the implementation of the PSNP

Woreda Cabinet
Main Role
The main role of Cabinet is to ensure accountability for programme performance in the
woreda.
Responsibilities
• Allocates PSNP resources to kebeles and woreda sectoral offices, based on the
recommendations of the Woreda Food Security Task Force and with a view to maximizing
the use of all resources available to the woreda – including PSNP resources.
• Guides and oversees the integration of the planning and implementation for the PSNP,
and for the FSP as a whole, in the woreda integrated plan.
• Approve action plans of each institutions involved in the implementation of the PSNP
• Review the performance of each institution involved in the implementation of the PSNP

Woreda Food Security Steering Committee

Main Role
The main role of Food Security Steering Committee is to ensure accountability for
programme performance in the woreda.
Membership
• Woreda Administrator – Chair
• WOARD Head or Food Security Desk Head – Secretariat
• Relevant Line Offices Heads: WOFED, Roads, Water/Irrigation, SME (Trade and
Industry) Cooperative Promotion, Labour & Social Affairs, and Youth and Sports.
• The Food Security Steering Committee functions as a sub-committee of the Woreda
Council. It provides strategic oversight of the PSNP and monitors progress in programme
implementation.

Woreda Office of Agriculture and Rural Development (WOARD)

Main Role
The main role of WOARD is to manage the Safety Net at woreda level. With the support of
the woreda FSP Steering Committee, the WFSTF and three specialised Technical
Committees, it oversees the implementation and management of the PSNP in addition to
the integration of the PSNP activities into the Food Security Programme and the woreda
rural development strategy.
Responsibilities
• Maintains an accurate record of appeals and appeals resolutions; and
• Ensures that posters are effectively disseminated to ensure broad awareness of rights
and responsibilities under the Programmes.

90
Woreda Food Security Task Force (WFSTF)
Main Role
The WFSTF oversees and coordinates programme implementation among all
implementing institutions at woreda level.
Membership
• Head of WOARD – Chair
• Works directly under the guidance of the Woreda FSP Steering Committee
• Food Security Desk – Secretary
• Woreda Office of Finance and Economic Development
• Natural Resource Management Desk
• Women’s Affairs Desk
• Health Office
• Other relevant line departments
Responsibilities
• The WFSTF establishes two specialised Technical Committees. Through these Technical
Committees, the Task Force:
• Reviews and recommends kebele annual PSNP plans for approval
• Consolidates annual woreda PSNP plans and budget and ensures their integration within
the overall woreda plan
• Ensures that all woreda offices integrate PSNP activities into their annual work plan
• Ensures close collaboration with and regular reporting to the Region
• Ensures adequate information to the Woreda Cabinet, and that the Cabinet’s decisions
are acted upon
• Participates in monitoring and evaluation of PSNP activities
• Provides assistance to kebeles in establishing and training KFSTFs
• Holds quarterly progress review meeting on PSNP activities
• Reviews monthly progress reports on PSNP activities

Woreda Food Security Desk (WFSD)

Main Role
The main role of the WFSD is to oversee PSNP activities. The WFSD is technically
accountable to the DPPFSCs.
Responsibility
• Ensures the preparation of pipeline of projects for PSNP in consultation with the Kebele
Food Security Task Force;
• Mobilises technical assistance as needed;
• Ensures that PSNP risk financing contingency plans are prepared and implemented
according to risk financing guidelines
• Undertakes monitoring and evaluation in coordination with woreda sectoral offices;
• Holds quarterly technical review meetings with implementing agencies;
• Submits progress reports to the WOARD;
• Maintains accurate records of kebele Safety Net activities and list of clients; and
• Provides information on target areas and selected clients to sectoral offices and other
agencies involved in planning and implementing Safety Net activities.
• Management of client cards including facilitation availability of photograph services for
clients for client cards

Early Warning and Response Desk

Main Role
The EWRD plays a critical role with regard to risk financing. EWRD also co-chairs the
woreda Technical Committee on early warning and transfers with the FSCD.
Responsibility

91
• Coordinates with FS Desk to ensure the timely delivery of food transfers
• Reports on food deliveries, stocks and payments to FS Desk on a regular basis
• Provides accurate and timely early warning information,
• Ensures adequate linkages between Risk Financing resourced activities and other
actions related to humanitarian response,
• Supports the FSD and the concerned kebeles in managing the scaling-up of the PSNP
system in case of activation of the Risk Financing facility in the woreda.

Natural Resource Management Desk

Main Role
The main role of WNRMD is to manage the PSNP public works, with support of the FS
Desk. WNRMD co-chairs the woreda Technical Committee on Public Works with the Water
Resource Desk.
Responsibility
• Consolidates public works plans and budgets developed in the kebeles;
• Ensures integration of community watershed plans into woreda plans and more broadly,
integration of the PSNP public works in the overall woreda plan;
• Provides assistance to DAs and communities in the planning process;
• Implements the ESMF;
• Together with FS Desk, supervises public works and providing technical backstopping;
• Supports the M&E system especially on the Public Works Review; and
• Facilitates experience sharing among kebeles.
• Through the woreda public works Technical Committee, WNRMD coordinates the
interaction and involvement of the relevant line offices/desks and other PSNP actors in
the public works programme as required based on woreda interventions.

Woreda Sector Offices

Main Role
The main role is to ensure that their specific roles in PSNP planning, implementation,
monitoring and reporting are conducted effectively and efficiently so that PSNP achieves it
objectives
Responsibility
• Consolidates proposals of the Kebele Food Security Task Force for incorporation in the
woreda PSNP plans
• Incorporates PSNP activities in their yearly programme/action-plans, based on the
woreda integrated plan including PSNP plans
• Prepares activity implementation plans and request budget for implementation
• Implements PSNP activities at kebele and community levels
• Provides technical assistance and training to technical personnel and kebele staff
• Undertakes project screening in accordance with the ESMF
• Conducts monitoring and evaluation of activities in collaboration with other relevant
woreda level stakeholders
• Prepares quarterly progress and financial reports

Woreda Office of Finance and Economic Development (WOFED)

Main Role
The main role of WOFED is to oversee the financial management of programme.
Responsibility
• Ensures that the budget for the PSNP is received in a timely manner at the woreda level
to guarantee smooth implementation of approved plans and activities;
• Undertakes timely PSNP payments for client households, supervising personnel, and the
purchase of relevant equipment and materials; and

92
• Exercises necessary fiduciary controls and reports on fund utilisation to Regional
BoFEDs.

NGOs
Main Role
NGOs play a role in PSNP implementation.
Responsibility
• In addition to being members of the Woreda Food Security Task Force (and Regional
Food Security Task Forces) they may also, with additional financing, contribute their
capacity and expertise to the programme.
• In doing so, they should work with government structures and abide by the Programme
Implementation Manuals.

Figure 4: Woreda PSNP Coordination and Management Mechanism

Woreda FSP Steering Committee

Chair: Woreda Administrator

Woreda Food Security Task Force

Chair: ARDO Head
Relevant Heads of other (non-ARD) agencies

Woreda Food Security Desk

Coordination
with HABP

JOINT TC 3
JOINT TC 1 JOINT TC 2
HABP
General Management & Transfers PW/CCI

Chair
Chair:
Extension
Chair: EWRFS Head Natural Resources Head

5.5 Kebele Level

Kebele Council
Main Role
The main role of the kebele council is to oversee kebele cabinet.
Responsibilities
• Reviews and approves the Cabinet’s proposals, notably in relation to the PSNP plan and

93
 its integration within the broader kebele plan.
• Directly involved in the functioning of the appeal system and is responsible for linking up
with the woreda council on this.
• Assist in establishing and ensuring effective operation of the Kebele Appeals Committee
which will hear and resolve complaints, claims and appeals from kebele residents on the
beneficiary selection process in a timely manner.
• Organize a general public meeting at kebele level every 6 months so residents can
comment on the proposed list of participants, can be informed and reminded of the
operation of the Kebele Appeals Committee and can be informed of appeals submitted
and of resolutions to those appeals
• Ensure that updated lists of beneficiaries, and of appeals resolutions, are posted in public
locations at the kebele and community levels.

Kebele Cabinet
Main Role
The kebele cabinet is the highest political decision making body in the kebele.
Responsibilities
• Approves kebele PSNP clients based on the recommendations of the Community Food
Security Task Force
• Identify activities for PSNP purposes
• Prepares the kebele PSNP plan
• Ensures that the PSNP is linked, and consistent with, other food security interventions,
and that PSNP activities and priorities, in particular in relation to public works, are
integrated in the broader development plan of the kebele
• Maintains records on the status of client households
• Reports monthly to the woreda
• Oversees food security activities in the kebele
• Participates in the monitoring and evaluation system for the Food Security Programme
• Ensures that lists of clients, appeals heard and resolved, along with programme plans
and budgets, are posted in public locations

Kebele Food Security Task Force (KFSTF)

Main Role
The KFSTF is a decision-making body that oversees all planning and implementation of
safety net activities on behalf of the kebele cabinet.
Membership
• Kebele Administration
• Development Agents
• Health Extension Workers and/or Volunteer Community Health Workers
• Teachers
• Community members such as Youth and Women’s Associations
Responsibilities
• Review Community public works plans and consolidate into kebele public works plan;
• Supports DAs in planning work with identified communities following participatory
watershed planning guidelines and Line Bureaus specific proposals;
• Targets clients and participants for public works and direct support based on community
targeting exercises;
• Prepares Kebele Safety Net Plan in consultation with woreda sectoral offices;
• Maintains minutes of KFSTF meetings on Safety Net issues, Kebele Safety Net activities,
list of participants and progress reports;
• Establishes and trains the Community Food Security Task Force; and
• Participates in monitoring and evaluation of safety net activities including the Rapid

94
 Response Mechanism.
• Client card management: Organ for clients to have their photos taken and after photos
received kebele calls clients to fill out card and affix photo.

Kebele Appeals Committees (KACs)

Main Role
The main role of the KAC is to hear and resolve appeals regarding Safety Net matters in a
timely manner. The Committee will meet quarterly under the auspices of the Kebele
Council.
Membership
• 1 elected Kebele Council member (not the Chairperson)
• 1 elected female representative to the KFSTF
• 1 elected female epresentative from a CFSTF
• A Development Agent
• A Health Extension Worker or Volunteer Community Health Workers
• 2 elder representatives (1 female)
Responsibilities
• Submits a complete listing of appeals cases by sex of appellant, appeals resolutions, and
unresolved appeals to the Kebele Council each quarter which will review them and
forward them to the Woreda Council and the WOARD every quarter
• Convene within one month of the establishment of a new annual listing of clients to hear
appeals submitted in their jurisdiction and to resolve a minimum of 95 percent of these
cases within the month
• Provides the listing of the appeals and the associated resolutions to the Kebele Council
no later than 2 months after the announcement of the clients listing

Development Agents (DAs)

Main Role
The main role of the DA is to work to facilitate PSNP implementation. DAs are employees
of the Extension Desk of the Office of Agriculture and Rural Development who reside in the
kebele.
Responsibilities
• Members of the KFSTF and CFSTF;
• Supports the CFSTF in prioritizing community needs and preparing annual PSNP plans;
• Design public works with support from /kebele/woreda staff as required
• Support Woreda NR/Environment experts in implementing ESMF procedures
• Oversees the implementation of public works;
• Prepares PSNP payments list for submission to FSD and the Office of Finance.

5.6 Community Level

Community Food Security Task Forces (CFSTF)

Main Role
The main role of the CFSTF is to identify PSNP clients.
Membership
• Representatives from the KFSTF
• A Development Agent
• A Health Extension Worker or Volunteer Community Health Worker
• Two or three elected female representatives
• Two or three elected male representatives
• An elected youth representative

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• An elected representative of the elder

Responsibilities
• Mobilizes the community for participatory planning exercises;
• Undertakes a needs assessment identifying those households who can participate in
public works and those without sufficient labour or other support who will need direct
support;
• Mobilises the community jointly with DAs for participatory public works planning;
• Submit community public works plans to the KFSTF
• Organize a public meeting to discuss the proposed list of PSNP clients, encourage
comments from people attending the meeting and amendments to the list, as required, to
reach overall agreement among the community on the list of PSNP clients to be
submitted to the KFSTF, which ensuring that there is no stigma against the inclusion of
eligible People Living with HIV;
• Finalize the list of participants and submit it to the KFSTF for verification and action and
ensure than an updated list of clients is posted in public locations every 6 months and
that these updated listings are read out at a community meeting held every 6 months
• Monitors the implementation of public works; and
• Participates in the regular review of safety net clients.
• Finalise the list of participants and submit it to the KFSTF for verification and action and
ensure an updated list of clients is posted in public locations every 6 months and that
these updated listings are read out at a community meeting held every 6 months
• Inform community members at the 6 monthly meeting of the appeals process, that
appeals should be taken to the Kebele Appeals Committee which will resolve the appeals
or forwards difficult cases to the Woreda Council for resolution
• Ensure that an updated listing of appeals cases, appeals resolutions, and outstanding
appeals resolutions forwarded by the Kebele Council to the Woreda Council is posted in
public locations and read out to community members at the 6 monthly community
meetings.
• Ensure that residents are made aware of the appeals process and the existence of the
Kebele Appeals Committee
• Final the list and pass it onto the KFSTF for verification and further action and ensure that
the list of is posted in public locations in the community and is read out to the community
at a community meeting
• Ensure that appeals submitted to the Kebele Appeals Committee and the resolutions are
posted in public locations and are read out at a community meeting every 6 months

Clients
Main Role
Client and non-clients both play a key role in holding implementers to account through the
Kebele Appeals Committee (KAC) and public forums.
Responsibilities
• Client and non-client households participate in public meetings on PSNP that target
PSNP clients and determine multi-year annual plans.
• Community members work with DAs on an annual basis to determine priority public
works.
• PSNP clients participate in public works or direct support.
• Clients should refer to the Charter of Client Rights and Responsibilities found on the back
of their Client Cards for information on their rights and responsibilities.

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PART 3: THE PSNP PROGRAMME MANAGEMENT CYCLE

Chapter 6: Introduction to the PSNP Programme Management Cycle.............................. 99

6.1 The PSNP Programme Cycle ................................................................................. 99
6.2 Timing of the PSNP Programme Cycle ................................................................. 100
Chapter 7: Planning and Approval phase ....................................................................... 108
7.1 Introduction ........................................................................................................... 108
7.2 Preparation of the Community Public Works Plan and the Kebele Annual Safety
Net Plan (KASNP) ......................................................................................................... 109
7.3 Preparation of the Woreda Annual Safety Net Plan .............................................. 121
7.4 Regional Level Planning and Approval / RASNP .................................................. 127
7.5 Federal-level Planning and Approval / the FASNP ................................................ 134
7.6 Dissemination of approved Federal Annual Safety Net Plan ................................. 141
Chapter 8: PSNP IMPLEMENTATION ........................................................................... 143
8.1 Introduction ........................................................................................................... 143
8.2 Procurement ......................................................................................................... 143
8.3 Financial Flow....................................................................................................... 150
8.4 Food Logistics ...................................................................................................... 155
8.5 Implementation of Public Works............................................................................ 157
8.6 Payment procedures............................................................................................. 162
Chapter 9: RISK MANAGEMENT PHASE ...................................................................... 167
9.1 Introduction ........................................................................................................... 167
9.2 How do I use the woreda Contingency Budget? ................................................... 167
9.3 How do I use the Regional Contingency Budget? ................................................. 169
9.4 What is the Process for the Risk Financing Mechanism? ...................................... 177
Chapter 10: MONITORING AND EVALUATION............................................................. 179
10.1 Introduction ......................................................................................................... 179
10.2 Monitoring and evaluation tools and processes .................................................. 180
10.3 Roles and responsibilities for monitoring the PSNP ............................................ 184

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PART 3: THE PSNP PROGRAMME MANAGEMENT CYCLE

CHAPTER 6: INTRODUCTION TO THE PSNP PROGRAMME MANAGEMENT CYCLE

6.1 The PSNP Programme Cycle ..................................................................................... 99

6.2 Timing of the PSNP Programme Cycle..................................................................... 100

98
CHAPTER 6: INTRODUCTION TO THE PSNP PROGRAMME MANAGEMENT
CYCLE

6.1 The PSNP Programme Cycle

The PSNP follows a regular programme management cycle that is common across the
programme and is repeated each year. The cycle is shown in Figure 5: PSNP Programme
Cycle.

Figure 5: PSNP Programme Cycle

Physical reporting
Financial reporting 1. Community and kebele
Rapid response mechanism planning
2. Woreda level planning
Performance management
and incentives 3. Regional level planning
Auditing 4. Federal level planning
Evaluation

Monitoring &
Planning
Evaluation

Contingency Budget Risk Approval

management 1. Woreda review & approval
Management of kebele plans
Risk financing mechanism
management 2. Regional review & approval
of kebele plans
Joining up with other
mechanisms for support 3. Federal review & approval
of regional plans
Implementation

Procurement
Cash transfer logistics
Food transfer logistics
Management of Public
Works
FM and payment

The Planning phase is divided into four sections according to the level of planning and the
product of the planning. These are:

• Community and Kebele-level planning: The product of this process is the Kebele
Annual Safety Net Plan
• Woreda level planning: The product of this process is the Woreda Annual Safety Net
Plan
• Regional-level planning: The product of this process is the Regional Annual Safety Net
Plan
• Federal-level planning: The product of this process is the Federal Annual Safety Net
Plan

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In the Approval phase, the following actions are taken:
• Kebele review of community public works plans
• Woreda review of Kebele plans
• Zonal review of woreda Plans (in some Regions)
• Regional review of woreda plans
• Federal review of Regional plans

In the Implementation phase, the following actions are taken:

• Procurement
• Cash transfer logistics
• Food transfer logistics
• Implementation of Public Works
• FM and payment

In the Risk Management phase, the following actions are taken:

• Contingency Budget management
• Risk financing mechanism management
• Joining up with other mechanisms for support

In the Monitoring and Evaluation phase, the following actions are taken:
• Physical reporting
• Financial reporting
• Auditing
• Evaluation

Part three of the PIM describes each phase of Programme Cycle Management in detail,
with one chapter for each of the main Project Cycle Management stagesxxvii, in sequence. It
provides the detail on programme procedures, applying the guidance information
presented in Part Two in practice. It provides step-by-step guidance on each of the key
processes so that it is very clear who does what and when to make the PSNP successful.

6.2 Timing of the PSNP Programme Cycle

The PSNP planning cycle follows the Ethiopian Government Financial Year which runs
from 8th July to 7th July or Hamle 1 to Sene 30. Planning for the PSNP occurs before the
new Financial Year in order to release funds in early August. Specific dates for key stages
are:
• KASNP to Woreda by 30 March
• WASNP to Region by 30 April
• RASNP to Federal by 30 May
• Then Federal interacts with Regions during June so the plan is ready before end June
• Approval of Federal-level plan by JSOC and Parliament and release of funds, by end
June
• Final communication back down from Federal level to Regions and then on to woredas,
beginning of July
• First disbursement for cash transfers to Regions, beginning August (this transfer covers
costs for contingency budget, capital and [partial] admin budget only)
• Other quarterly cash transfer disbursements to Regions, start of October, January, and
March (these transfers cover costs for the transfers to clients, management budget and
the balance of administration budget).

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These dates must be followed accurately and have no flexibility. It is the responsibility of
managers at each level to ensure this is the case. Failure to meet the deadline risks
delaying funds arrival, timeliness of transfers, and achievement of PSNP objectives.

However the dates at which the actual planning is undertaken are flexible, to allow variation
between woredas and Regions. Each level must organise itself to deliver its report by the
deadline, but when the planning actually takes place can be planned at a convenient time.

When making this decision, the following should be taken into account:
• Availability of community members and convenience in relation to busy periods for
agriculture (including harvest) and other important livelihood activities for both men and
women.
• Availability of Government staff and those who facilitate planning.
• Impacts on PSNP programme, such as Public Works
• Accessibility of locations due to rain
• In all cases the community availability must be given highest priority

The timeframe for planning is fixed, but implementation of the PSNP – including public
works and transfers – can be at any time of year. The implementation schedule is driven by
the needs of food insecure people in programme areas rather than administrative
timetables. It is not restricted to specific months.

The needs of PSNP clients vary across the country with rainfall, cropping cycles, and
livelihood systems. The PSNP accommodates this difference, and so dates for each stage
of the programme cycle will vary in different places. This will be driven by local planning for
local needs, at woreda level. But the PSNP programme cycle, and the actions it requires, is
common across the programme.

The following table highlights some key considerations planners should take into account
when preparing their woreda-specific PSNP plans:

Table 5: Factors influencing PSNP schedule

Key Factor How it might influence decision making

Timing of rainy May affect ease of transporting food and cash. This could mean that
season there is a need for pre-positioning of food, or some pragmatic
compromises to facilitate timely payments

Households living in pastoral areas may divide during the dry season
making disbursing payments challenging. It may be easier to make
payments during the wet season when the family is together, or it may
be necessary to reach agreement on who should receive the payment if
part of the family is travelling.xxviii On the other hand inaccessibility during
the rains presents a challenge.
Agricultural Will affect availability of clients for meetings since they will be busy at
peak times various times, some of which intensively. This includes land preparation,
planting, weeding, and harvest periods. The periods of heaviest
workload may fall on woman and men differently. In agricultural areas,
for example, women tend to work most during the pre-harvest and
harvest periods
Timing of It is critical that public works be timed to coincide with the slack labour
slack labour period to ensure minimum disruption to core livelihood activities. Slack
period labour periods can vary enormously over short distances. For example
the dry season is a period of peak labour in exclusively pastoral

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Key Factor How it might influence decision making
populations as households travel long distances in search of pasture;
whereas in neighbouring agro-pastoral areas the set season is an
intense labour period as households have to prepare, plant and weed
the land.
Peak hunger Households should receive PSNP payments before or during the period
season where they experience the most severe hunger. If payments do not start
by this time, households may have to sell productive assets in order to
meet immediate food needs, undermining a key objective of the PSNP.
Given that the slack labour period and the peak hunger period rarely
coincide, and few households are willing to defer payments more than a
short time period matching payment, this is an area which requires
significant consultation before a decision can be reached. While public
works must be matched with slack labour periods, there is room to time
transfers to the period before the hungry season rather than focusing on
a direct match.
Prices of Programme clients tend to prefer food during periods of high prices and
major staple cash when prices are lower. Therefore seasonal price variations might
foods influence the general timing of transfers, but might also influence when
households will receive food and when they receive cash in woredas
where a combination of food and cash have been requested.

The following Gantt charts provide examples of how these considerations might be used to
adjust the programme timing in different locations. Activities for which dates are the same
regardless of the transfer and public works schedules are bolded and shaded in darker
grey colour. The key dates for PSNP planning and reporting are found at the top of each
chart.

The following chapters of Part 3 of this PIM provide guidance on each of the stages of the
PSNP programme management cycle.

102
Figure 6: Indicative PSNP timetable: Meher dependent kebeles

103
Figure 7: Indicative PSNP Timetable: Belg Dependent Kebeles

104
Figure 8: Indicative PSNP Timetable: Pastoral Area

105
Chapter 7: PLANNING AND APPROVAL STAGE

7.1 Introduction .............................................................................................................. 108

7.2 Preparation of the Community Public Works Plan and the Kebele Annual Safety Net
Plan (KASNP) ................................................................................................................... 109
7.2.1 Annual Targeting and Graduation by Kebele and Community Food Security Task
Forces 109
7.2.1.1 Graduation .................................................................................................. 112
7.2.1.2 Targeting for the PSNP ............................................................................... 112
7.2.1.3 Determining labour availability within households eligible for PSNP ............ 113
7.2.1.4 Community verification of proposed list of eligible PSNP households .......... 115
7.2.1.5 Submission of client list for approval ........................................................... 115
7.2.2 Appeals Process ................................................................................................ 115
7.2.3 Issue Client Cards ............................................................................................. 117
7.2.4 Community Annual Public Works Planning ........................................................ 118
7.2.5 Preparation of the Kebele Annual Safety Net Plan ............................................. 120
7.3 Preparation of the Woreda Annual Safety Net Plan .................................................. 121
7.3.1 Client numbers and their categorisation ............................................................. 122
7.3.2 Type of transfers - cash or food ......................................................................... 122
7.3.3 Cash and food transfer plans ............................................................................. 122
7.3.4 Staffing .............................................................................................................. 123
7.3.5 Equipment needs ............................................................................................... 124
7.3.6 Training.............................................................................................................. 125
7.3.7 Procurement ...................................................................................................... 125
7.3.8 Contingency plans ............................................................................................. 126
7.3.9 Coordination ...................................................................................................... 126
7.4 Regional Level Planning and Approval / RASNP ...................................................... 127
7.4.1 Public Works ...................................................................................................... 128
7.4.2 Staffing .............................................................................................................. 129
7.4.3 Training.............................................................................................................. 130
7.4.4 Equipment ......................................................................................................... 131
7.4.5 Transfer Planning: Cash and Food .................................................................... 132
7.4.6 Procurement ...................................................................................................... 133
7.4.7 Contingency Planning ........................................................................................ 133
7.4.8 Coordination ...................................................................................................... 133
7.4.9 Regional Budget ................................................................................................ 134
7.5 Federal-level Planning and Approval / the FASNP ................................................... 134
7.5.1 Public Works ...................................................................................................... 135
7.5.2 Staffing .............................................................................................................. 135
7.5.3 Training.............................................................................................................. 136

106
 7.5.4 Equipment ......................................................................................................... 137
7.5.5 Transfer Planning: Cash .................................................................................... 138
7.5.6 Transfer Planning: Food .................................................................................... 138
7.5.7 Procurement ...................................................................................................... 139
7.5.8 Contingency Planning ........................................................................................ 140
7.5.9 Coordination ...................................................................................................... 140
7.5.10 Federal Budget ................................................................................................ 140
7.6 Dissemination of approved Federal Annual Safety Net Plan..................................... 141

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CHAPTER 7: PLANNING AND APPROVAL PHASE

7.1 Introduction

PSNP planning takes place in time to release the budget for the start of the Ethiopian
Government Financial Year from 8th July.

The PSNP planning process is a multi-level process which marries a bottom up and top
down approach, and produces nested annual safety net plans at each level, as illustrated
in figure 9 below

Figure 9: PSNP Planning Process

The process is as follows:

• It begins with community, which with the assistance of the DA produces the Community
Annual Public Works Plan.
• These plans are reviewed, approved and combined together at kebele level, and
combined with kebele level client selection to produce the Kebele Annual Safety Net
Plan.
• This in turn informs woreda planning and, along with specific woreda level activities,
results in the development and approval of the Woreda Annual Safety Net Plan
• The Regional Annual Safety Net Plan combines the Woreda Annual Safety Net Plans
along with specific activities to be conducted at regional level, and is approved at
Federal level, and
• The Federal Annual Safety Net Plan is the highest level planning document which
summarises plans across the whole programme for the coming year as well as
describing specific activities to be conducted at Federal level

Each of these steps is detailed in the sections below.

For each of these products there is an approval process which involves a) scrutiny of plans
by oversight mechanisms (such as Woreda Cabinet and Council, at woreda level) at the
same level, and b) scrutiny by higher levels of the lower-level plan.

Each of the plans, following final approval, is distributed back down to the lower levels
immediately following Federal approval so that all participants are aware of final planning
decisions that have been taken and resources allocations that have been made. This also
allows greater downward accountability.

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Once the PSNP annual plan and budget has been approved at Federal-level, MoFED will
post the annual woreda-by-woreda budget on its website.

The final woreda PSNP Annual Plan and budget is posted in a public location in the
woreda and kebele centres, together with the approved client list and list of appeals, as
they are issued. This will help ensure that clients and non-clients in PSNP areas are well
informed of which households will participate in the PSNP for the coming year, the overall
budget and expected public works activities. The Plan and budget should remain posted for
the full year.

The Client Bill of Rights and Responsibilities is posted next to the PSNP plan and budget in
the woreda and kebele centres and, if possible, among PSNP communities. This should
remain posted throughout the year. Woreda officials should also ensure that all other
PSNP posters and information materials are publically displayed. If the posters have
become old or have disappeared, woreda officials should request new posters from the
Regional Food Security Office.

As a first step in planning at all levels there is a review of the planning organisations and
their membership, to ensure that:
• The planning bodies all exist and are functional
• The correct members are present
• Members have been adequately informed of their task and have the necessary skills
and information to conduct it
• Any new members, for example where there has been staff turnover in Government
placeholders, have been adequately trained

To simplify the presentation of the guidance presented here, and to bring it in line with the
actual sequence of processes in practice, this chapter integrates the two Programme Cycle
Management phases of Planning and Approval described in section 6.1.

The following sections are structured according to the hierarchy of planning and the
planning product produced, starting with Community and kebele, moving to woreda, and
then Regional and Federal level planning. Each of these sections contains sub-sections
with guidance on how the planning documents at each level are produced.

7.2 Preparation of the Community Public Works Plan and the Kebele Annual
Safety Net Plan (KASNP)

The Kebele Annual Safety Net Plan is the lowest level planning document in the PSNP. It
is prepared from PSNP planning processes that begin at the community-level and are
aggregated at the Kebele. The key elements of this planning process and the Kebele plan
are:
• Client selection (graduation and targeting)
• Graduation process
• Appeal process
• Issuing of Client Cards
• Public Works planning

The following sections describe the planning processes for each of these elements at
community and kebele level, and the approval processes they are subject to.

7.2.1 Annual Targeting by Kebele and Community Food Security Task Forces

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As the PSNP has now been operating for five years, this is largely a process of updating
the existing PSNP client list to: (i) identify households participating in the PSNP that are
ready to graduate from the PSNP, (ii) correct for inclusion and exclusion errors and (iii)
identifying new entrants.

Targeting under the PSNP, which corrects for inclusion and exclusion errors and identifies
new entrances, is a combined administrative and community targeting approach. The
administrative elements include the provision of a PSNP client allocation (the number of
clients which can be targeted in a specific region, woreda, kebele etc.) input into the key
targeting criteria used within a locality, and oversight of the accuracy and transparency of
the targeting system. The key community elements of the approach include the actual
identification of target households by the Community Food Security Task Force; and the
verification of the client list by a public meeting in which the entire PSNP client list is read
out and discussed among all community members, with changes made to the list as the
community deems appropriate.

Targeting and graduation process/revision of the participant list takes place annually in
March according to allocations provided to regions, woredas and kebeles. A further key
element of the targeting system is the existence of an appeals procedure, which is
discussed in detail in section 7.2.2. The woreda contingency can be used to accommodate
changes in client numbers which result from appeals.

Note that there is a commitment to move towards a transfer system which takes household
food gap more closely into account, rather than providing all clients the same 6-month
transfer entitlement. This is based on the Variable Levels of Support (3-6-9 month) pilot,
and may be introduced later on, in which case these guidelines for targeting will be revised.

Once targeting, graduation and appeals are complete and the list of PSNP clients has been
approved at woreda level, households will be issued with client cards (detailed in section
7.2.3).

The key targeting actions and steps undertaken within the Kebele, including the actions of
Kebele staff, the KFSTF and the CFSTF are detailed below:

1. The Kebele Food Security Task Force (KFSTF) receives information on the number of
PSNP clients allocated to their Kebele. If this number is significantly different from what
they were anticipating (based on previous years’ experience and their knowledge of any
graduation which has been agreed within the kebele) they should immediately report their
concerns to the woreda Food Security Desk and seek clarification. The KFSTF may also
receive guidance from the WFSTF on specific criteria to be used within the woreda for the
identification of clients. Such criteria will be related to locally relevant indicators of poverty
such as livestock holdings, land size, access to irrigation, and other locally predominant
assets (fruit trees, timber trees, perennial crops, employment status, receipt of remittances,
small businesses etc.).

2. The KFSTF will discuss and agree the specific allocations which will be passed onto the
Community Food Security Task Forces which cover the kebele. In discussing and agreeing
these allocations the KFSTF should consider the following criteria:
• Previous years’ PSNP allocations
• Number of households and household members who have graduated from the PSNP in
previous years (the exact process by which client numbers should be adjusted through
graduation is discussed in more detail in section 7.2.1.1 below).
• Any serious events which may have affected the number of chronically food insecure
households (severe droughts or other disasters).

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• Prevailing conditions affecting food security within different areas of the kebele (agro-
ecology, access to irrigation, soil quality and degradation, etc.).

3. The KFSTF informs the CFSTFs of their respective PSNP client number allocations. If
this number is significantly different from what the CFSTFs were anticipating (based on
previous years’ experience and their knowledge of any graduation which has been agreed
within the kebele) they should immediately discuss their concerns with the KFSTF and
seek resolution. If any issues cannot be resolved within the kebele, the complaint should
be passed on to the WFSTF for clarification and resolution.

4. The CFSTF has the main responsibility for both identifying which households are within
the PSNP, but also whether these households should participate in public works or have
direct support status. The rough process followed by the CFSTF is indicated in Figure 10:
Determining Household Eligibility.

Figure 10: Determining Household Eligibility

Does household
meet criteria to
participate in the
PSNP?
Yes No

HH may participate in HH may not participate

the Safety Net in the safety net

What is the
labour
availability
within the
household?

No adult labour is Adult labour is Adult labour is

available available but is not available and is
sufficient to undertake more than
public works to cover sufficient to
full household needs undertake public
works for all
members of
household

HH is HH is categorised as HH is
categorised as public works, but categorised as
direct support. actual work provided public works
Transfer amount is capped at a and provides
based on size of maximum of 15 days labour sufficient
HH per adult able-bodied to meet the
person. Transfer needs of all
amount is based on household
size of HH, even members
though less work is
provided

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In order to complete the above process the CFSTF undertakes the following steps:

7.2.1.1 Graduation

As mentioned in section 2.6, it is anticipated that clients of the PSNP, who also benefit from
support from the HABP, will improve their food security status to the point where they are
food sufficient and are no longer in need of the transfers provided by the PSNP.

A household can be considered for graduation from the PSNP when, in the absence of
receiving PSNP transfers, it can meet its food needs for all twelve months and is able to
withstand modest shocks. Clients will remain in the PSNP for multiple years until they
reach the graduation threshold. They will not be excluded from the PSNP through the
annual retargeting exercise if they are better off than other households but have not yet
reached the graduation threshold, as defined by the regional graduation benchmarks.

Each year an assessment will be undertaken as a first step in the process to determine the
eligibility of clients for the PSNP to assess how many PSNP households have achieved
this status and are ready to graduate from the Programme.

Households identified as being ready for graduation will remain in the PSNP for one more
(Ethiopian) year and should therefore continue to receive PSNP transfers for the full year
after they are assessed to be ready to graduate.

The process for familiarising PSNP clients on the graduation process and the steps taken
to assess which households have graduated are outlined below:

The KFSTF receives a copy of the woreda based benchmarks (approved by the Region).

Kebele representatives and the CFSTF, with support from woreda staff, conduct
awareness raising events to both build support for achieving graduation and to ensure that
all kebele members (PSNP clients, FSP clients and the wider community) understand the
graduation criteria (based on the above benchmarks) and the process for assessing
graduation.

The DAs in each kebele prepare an overview of the asset holdings of PSNP households.
Once information on household assets has been collected, the DAs calculate the value of
the assets per household member using a set of agreed asset value prices.

Based on the household profiles prepared by the DAs, the CFSTF prepares a list of
households that can graduate from the PSNP by comparing the value of the asset holdings
of each household with the agreed benchmarks. In other words, those households with
asset holdings equal or higher than the benchmarks will be proposed for graduation to the
woreda.

For more details, please refer to the Graduation Guidance Note (2007).

7.2.1.2 Targeting for the PSNP

In updating the existing client list to correct for inclusion and exclusion errors or identify
new entrance, the CFSTF should refer to the basic and supplementary criteria for targeting
PSNP support, as follows:

Basic PSNP Eligibility Criteria:

• The households should be members of the community;

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• Chronically food insecure households who have faced continuous food shortages (3
months of food gap or more per year) in the last 3 years, AND who have received food
assistance prior to the commencement of the PSNP;
• Households who suddenly become more food insecure as a result of a severe loss of
assets (financial, livestock, means of production, assets), especially if linked to the
onset of severe chronic illness, such as AIDS, and who have been unable to support
themselves over the last 1 to 2 years; and
• Households without adequate family support and other means of social protection and
support.

Supplementary criteria to assist in the refinement of the client list (further guidance on
supplementary criteria may be provided by the WFSTF and forwarded by the KFSTF):
• Status of household assets: land holding, quality of land, livestock holding, food stock,
labour availability etc;
• Income from agricultural and non-agricultural activities
• Specific vulnerabilities such as female-headed households, households with members
suffering from chronic illness, elderly headed households caring for orphans etc.

Further considerations that influence targeting include:

Full Family Targeting: If a household is identified as being chronically food insecure and
eligible for the PSNP, all household members will be listed as clients of the programme.
That is, the transfer that a household receives each month will be calculated using the
prevailing wage rate multiplied by all family members, regardless of their age, even if some
family members are only infants.

Polygamous households: The ‘family’ should be treated as the man and one wife and the
children of that wife, while each other wife and her children should be treated as a separate
female headed household. Each of these separate households should be assessed as to
whether or not they should be eligible for the PSNP. For those households considered
eligible for the PSNP, the transfer each household receives, and associated work
requirements, will be calculated separately.

Divorce: In the case that a husband and wife become divorced during the course of their
inclusion in the PSNP, all family members residing in the kebele should continue as clients
for the year. The transfer each household receives should correctly reflect the number of
family members dwelling together. For example, if the children reside with their mother, she
should receive their transfer, while the father would receive a payment for himself only. The
next year, the food security status of the separate households should be assessed to
determine their eligibility for the PSNP, with each household being treated equally.

Duration of client eligibility: Clients will remain in the PSNP for multiple years until they
reach the graduation threshold. They will not be excluded from the PSNP through the
annual retargeting exercise if they are better off than other households but have not yet
reached the graduation threshold, as defined by the regional graduation benchmarks

For more details, please refer to Targeting Guidelines.

7.2.1.3 Determining labour availability within households eligible for PSNP

Once the CFSTF has determined those households eligible for the PSNP, by identifying
existing PSNP households for graduation and any new entrance or households that were
previously excluded from the PSNP, it must allocate the eligible households to Public
Works and Direct Support.

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The majority of PSNP clients are required to contribute labour to PSNP public works and
are entitled to 5 days of paid work per month per household member. However, some
households lack any able bodied labour due to disabilities or long-term illnesses and
cannot be supported by other immediate family members; while others suffer from labour
shortages constraining their ability to participate sufficiently in public works to meet the
needs of all their household members. Therefore, once those households eligible for the
PSNP have been identified, the next step is to determine whether a household should
participate in the direct support component, the public works component, or a combination
of both.

The following criteria are used to determine whether an individual should be considered
eligible to participate in public works (all those not eligible are not counted as an able-
bodied adult):
• The household member should be above the age of 16.
• The household member should not be chronically sick, disabled or mentally challenged
in such a way as to prevent them from undertaking work
• The household member should not be pregnant after the sixth month
• The household member should not be a lactating woman within the first ten months
after her child’s birth.

In the event that no-household members meet the above criteria, the household should be
considered for Direct Support.

All other households will be reviewed to assess the number of able-bodied adults and
determine whether or not the household should be included fully as public works, or
whether a cap should be set on the amount of labour the household will provide. If the
labour cap is used, the household is still classified as a Public Works household.

The following table, with descriptive examples illustrates the work that the CFSTF should
complete:

Table 6: Illustration of an integrated (public works and direct support) client list

Household Total Number of Household Monthly Monthly

ID Household Able- category: transfer work
Size Bodied PW/DS entitlement requirement
a) adults a) x 50 Birr a) x 5 days,
b) up to a
maximum
of b) x 15
001 2 0 DS 100 0
002 3 1 PW 150 15
003 5 2 PW 250 25
004 5 1 PW 250 15
(capped)
Note: the basis of these calculations is the wage rate of 10 Birr per day which was current
at the time of writing. If this changes, the calculations will also need to change

Example I:

Household 2 (ID: 002)

Household 002: 3 members receives 3 x 50 Birr = 150 Birr per month.

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1 member who is able to work delivers 5 days of work for him/herself and for each member
who is not able to work, up to the maximum of 15 days. In this case the household receives
conditional support for 3 x 5 days.

Example II:

Household 4 (ID: 004)

Household 004: 5 members, receives 5 x 50 Birr = 250 Birr per month.
1 member who is able to work delivers 5 days of work for him/her and each member who is
not able to work, up to the maximum of 15 days and receives unconditional transfers for
two member of the family. In this case the household receives support from on a
conditional basis for 3 x 5 days = 15 days per month and 2 x 5 days on unconditional basis.

7.2.1.4 Community verification of proposed list of eligible PSNP households

The results of the graduation and targeting processes, that result in a list of eligible
households, will then be verified by the wider community. In order to ensure adequate input
into this verification process, the list of proposed participants, including a clear indication of
those households proposed for graduation from the PSNP, will both be displayed in a
public place and discussed during a full general meeting of village residents. The proposed
list of participants, and their labour requirements, will be displayed in public for at least a
week prior to a full general meeting of village residents. During this meeting the CFSTF will
present the full targeting and graduation processes and the results, prior to allowing a
thorough discussion by community members, which will result in changes to the list if the
community does not agree with the assessment of the CFSTF. The meeting should be
concluded when there is broad agreement on the list of PSNP participants.

7.2.1.5 Submission of client list for approval

Following community verification, the CFSTF will finalise the list of PSNP participants,
including the list of households identified for graduation, and forward it to the KFSTF for
approval and further action. The KFSTF will collect the participant lists from all CFSTFs
prior to compiling a full list for the kebele to be forwarded to the WFSTF for verification,
approval, and/or necessary adjustment. This process may include minor adjustments in
proposed client numbers (deviations from the originally projected allocations). If any of
these minor adjustments increase the client number above the allocation the woreda may
approve the use of the 5% woreda Contingency Budget to cover this increase.

Once the list of PSNP clients is approved, the CFSTF briefs the community on the final list,
including those households that will graduate from the PSNP, and raises awareness that
they can raise complaints through the appeals committee (see section 7.2.2 below).

The list of PSNP clients submitted to the woreda and the list that is approved by the
woreda should be posted in a public location in the woreda and kebele centres.

Households that graduate from the PSNP remain in the PSNP for one additional year.
When these households are identified for graduation, they should be contacted by the DA
and other relevant technical staff at woreda level to start or strengthen their participation in
the HABP. This will enable them to access the financial services and technical support
required to further improve their livelihoods and protect against them sliding backwards.

7.2.2 Appeals Process

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An appeals process has been established for all aspects of PSNP implementation and
includes a Kebele Appeals Committee and access to the Woreda Cabinet for unresolved
complaints. While it is expected that concerns about the client selection process (both
targeting and graduation) may make up the majority of appeals, clients and non-clients can
also make complaints about the management of public works, timeliness and
completeness of transfers and any other perceived abuses of the PSNP. A list of possible
complaints has been included in Box 5 below, although these should not be seen as
exhaustive:

Box 5: Client Selection Related Complaints

• Exclusion from PSNP participant list despite meeting criteria and being poorer than
others included on participant list
• Exclusion from the PSNP participants list despite meeting the criteria because a
household member suffers from HIV and AIDS
• Inclusion of non-poor community members on participant list
• Nepotism by members of CFSTF towards friends and family members prioritising
their inclusion over other community members who are more needy.
• Failure to include all family members as PSNP clients
• Mis-categorisation of household as able to participate in public works despite lack of
adult able-bodied labour.
• Failure to properly set labour cap to the actual level of adult able bodied labour
available to participate in public works (no more that 15 days per able bodied adult).
• Mis-categorisation of household member as able bodied when she is pregnant
beyond 6 months, in first 10 months of breastfeeding a child or s/he is under 16,
sick or disabled.
• Selection as a graduate when household is not yet food sufficient and does not
meet the criteria for graduation.

Other Possible Complaints

• Client rotated off programme after only two months of public works and transfers
• Transfers are delayed
• Transfers are incomplete
• Kebele or woreda officials are deducting money (for any reason) prior to transfer
being distributed
• Public work hours are too long
• Public works are located too far from area of residence
• Physical or verbal abuse by officials involved in PSNP implementation, particularly
that directed to female participants

In order to manage the appeal process the following steps should be taken:

In Kebeles where a Kebele Appeals Committee (KAC) is not yet established, the Kebele
council (with support from the woreda) should support the establishment of the KAC. The
membership of the KAC is in the Institutional Arrangements Chapter.

The costs associated with establishing and running the KAC is financed from the woreda
administrative budget in all PSNP woredas.

The Kebele Council, CFSTF and Kebele Appeals Committee members will use every
opportunity to inform PSNP clients and non-participants as to the availability of the Appeals
Mechanisms, how it functions, and the timing of Kebele Appeals Committee meetings.

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The Kebele Appeals Committee meets quarterly. One of these meetings will be convened
within one month of a new annual listing of PSNP participants being produced to hear
appeals related to the client selection process. During these meetings all individual
complaints and appeals regarding PSNP matters will be heard, considered and as much as
possible resolved. The KAC is expected to resolve 95% of appeals within one month of the
appeal being heard. Therefore, within two months of the new annual listing of PSNP
participants being produced, the KAC will have provided a listing of the appeals and the
associated resolutions to the Kebele Council, Woreda Council and Woreda Rural
Development Office

Following each meeting, the KAC will submit a complete listing of appeals cases, appeals
resolutions and unresolved appeals to the Woreda Council and Woreda Rural
Development Office (therefore such a submission will be made once a quarter).

Grievances taken to other formal structures at community, kebele or woreda level, such as
women raising grievances to the Women’s Affairs Office, will be transmitted to the KAC for
action and resolution.

The list of appeals heard and their outcome is posted regularly in public locations in both
the woreda and kebele centres.

7.2.3 Issue Client Cards

Once the targeting process has been completed, and the participant list approved by the
WFSTF (following approval from regional and federal levels), all PSNP clients should be
issued with a Client Card. The costs associated with issuing a Client Card is covered by
the woreda administrative and Regional management budgets in all woredas. Under no
circumstances will PSNP clients be asked to pay for a Client Card.

All PSNP client households must hold a PSNP Client Card, with the photograph and
signature of both spousesxxix. The Card is proof that a household has been targeted for the
Programme, and thus improves the security and predictability of their transfers. The Card
also details how many days each household must participate in public works and the level
of transfer they will receive. This provides clear information on the type of transfer each
household can expect to receive. This provides clients certainty of their inclusion in the
Programme and on their entitlements. A copy of the Client Card is included as 0

The use of the Client Cards reduces the risk of rotation of households on and off the
Programme. It also improves the security of the transfer mechanism by ensuring clients’
attendance during payments. This is because each client must present their card if they are
to receive their payment; without presenting their card they will not receive payment. All
clients must be informed of the requirement to bring their Client Card with them on each
payment day. A member of the CFSTF may be delegated to collect transfers on others’
behalf if no one from the household is able to attend. In this case the representative takes
the Client Cards and returns them to the clients with their transfers.

The following steps are taken to issue client cards at kebele level.

• The Kebele administration (KFSTF or Administrator) collects cards with written serial
numbers from woreda based on the planned number of PSNP clients in the respective
kebele (plus five extras to account for error or loss).
• The Woreda FSD contracts a photographer to take photographs of each client.
Photographers should be contracted and a schedule should be created and
communicated to kebele officials by the woreda FSD. Any costs associated with this

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 process are covered by the PSNP through the woreda administrative budgets. Clients
should not pay for the photographs nor for any other part of the Client Card, or any
other PSNP process. Client Cards are issued to PSNP clients free of charge. The
schedule should identify when photos will be ready for distribution by the photographer
or pick up by kebele officials. Kebele officials, based on the schedule, call client
households for their photos to be taken.
• After photos have been received, kebele officials meet with household clients
individually to fill out the card and affix photo. Clients (household head and spouse)
should also sign the card after they approve that the information entered is correct.
• Cards are then taken to the woreda office for final authorisation. At this time, kebeles
return any voided or unused cards to the woreda. All voided cards are filed and all
unused cards are stored in a safe place at the woreda office.
• Kebeles collect cards from woreda and bring back to kebele to distribute to clients.
Kebele officials must confirm that all clients have received a card. If a household has
not received a card, kebele officials should immediately take appropriate actions to
ensure that a card is assigned.
• If a card is lost, this loss should be reported immediately to the Kebele Administration
who will request an additional card from the woreda and re-issue a new card.
• When a client graduates or decides to leave the PSNP he/she hands in the Client Card
to the KFSTF, which will arrange for the card to be stamped ‘Graduated’ thereby
rendering the client non-eligible for PSNP transfers. However the graduated client
retains the card in order to prove preferential access to Household Asset Building
Programme. It also helps for monitoring progress of PSNP graduates. If the PSNP
graduate achieves food security and graduates from the FSP (see section 2.7), then
the card is submitted to the KFSTF which records the ID number on graduation records
prior to passing the card to the Woreda Food Security Desk.

Other Card Management Issues:

• Cards will be renewed, as required, on an annual basis following the annual re-
targeting process, by the Kebele Chair on the recommendation of the KFSTF. The
cards can remain valid for five years. The renewal is done by indicating the year and
receiving an official stamp.
• When a household is a combination of direct support and public works, the household
is registered in PASS as a public works household.
• The expected transfer type is filled out at the time the card is issued or renewed using
columns for pulses and oil when necessary.
• Client Cards are non-transferable. Households may not sell their card nor exchange
their card for any other benefits.
• If a household divorces or a family-member dies or is born, the Client Card is re-issued
with the new amended details.

7.2.4 Community Annual Public Works Planning

The Development Agents assist the communities to prepare their Annual Public Works
Plan based on sub-projects selected through the community development planning
process (refer to CBPWDG Part I, pages 30-49) in order to identify community needs,
prioritise activities based on those needs, and ensure community ownership of the sub-
projects as appropriate.

The public works planning process starts by the community conducting a survey in order to
create a map and an inventory of community assets. The next step is identification of
community needs – this should include careful consideration of the needs of both men and
women and different groups within the community. Then, the key intervention requirements

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are determined. This leads to a list of potential sub-projects, which are then prioritised. The
highest priority sub-projects are then matched to the resources available under the PSNP
for the coming year. The prioritisation process should include projects that are a priority for
both men and women. Table 7 lists the types of sub-projects that are typically implemented
under the PSNP.

Table 7: Typical examples of Public Works Outcomes and sub-projects

Outcomes Community Level sub-projects*

Improved land productivity, soil Area closures/wood lots
fertility restoration, and increased Multi-layered/storied agro-forestry
land availability Physical conservation measures, e.g. hill side
terracing.
Micro-niche development
Biological measures
Mulching of degraded areas
Gully control
Land reclamation of extremely degraded land

Improved market infrastructure Community Roads

Market yards and storage
Stock routes
Improved access to drinking and Community water projects such as stream diversion,
irrigation water spring development, shallow wells.
Small dams
Water ponds
Drainage and water canals/conduits
Infiltration pits
Seepage control measures

Increased availability of fodder Area closure incorporating Vegetative fencing and

fodder belts
Conservation measures
Fodder seed collection
Paddock systems
Water logging control
Multi-purpose nurseries
Improved school and health Repairing classrooms and health facilities
facilities, high school enrolment Build latrines
and improvement health Build classrooms and health facilities rehabilitating,
standards extending and constructing primary schools,
Rehabilitating and constructing health posts
Conducting literacy classes among PSNP
households

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Outcomes Community Level sub-projects*
Improved nutrition security Promotion of legume systems for improved land
productivity and soil fertility restoration.
Promotion of nutrient-rich foods like groundnuts, oil
seeds, legumes and vegetables in irrigated areas.
Promotion of bee-keeping in area closures / wood
lots.
Promotion of nutrient-rich trees in multi-
layered/storied agro-forestry.
Behavioural Change Communication (BCC) using
Entertainment Education for increased consumption
of nutrient-rich foods for pregnant-lactating women
and children under two years.
Responding to women’s Establishment of self-support groups among PSNP
reproductive responsibilities public works participants to take care of young
children during public-work time.
Note: Specific projects and labour organisations for pastoral areas will be identified in
collaboration with the regions and clan leaders concerned.

This process should also consider the time during the year when the public works sub-
projects will be carried-out. This process should consider the factors in section 6.2.

The DA is then responsible for the designing of the sub-projects with the assistance of
woreda, zone or regional experts, as appropriate. The DA also undertakes ESMF
screening for each sub-project, and attaches the completed and signed screening form to
the sub-project file. For sub-projects of particular environmental concern, the DA ensures
that the sub-project file is earmarked according to the procedures set out in the ESMF.

The ESMF Screening is overseen by the woreda Environmental or NR Expert, who takes
responsibility and signs the completed ESMF Screening Form.

The DA then completes for each sub-project form PSNP-PW002: PW Sub-project &
Activity Identification and Description, setting out details of the sub-project including non-
labour inputs, technical assistance likely to be needed for implementation, and operations
and maintenance requirements. In accordance with the guidelines published by the federal
PWCU and disseminated in the PSNP Annual Training Course.

The result of the compilation of these documents is the Community Annual Public Works
Plan (CAPWP), which is submitted by the CFSTF to the kebele.

7.2.5 Preparation of the Kebele Annual Safety Net Plan

Using the results of the graduation, targeting and appeal processes, and the CAPWP, the
following process takes place for preparation of the Kebele Annual Safety Net Plan:

1. The KFSTF is responsible for preparation of the KASNP

2. The KFSTF consolidates all lists of needs and priorities prepared by the CFSTF which
are part of the kebele

3. The Kebele Annual Safety Net Plan identifies and specifies which activities within the
broader Kebele Development Plan will be undertaken under the PSNP, and ensures that
the KASNP and the Kebele Development Plan are fully integrated in all respects, and has
the following content:

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• A brief technical description of proposed sub-projects
• A list of activities to implement those sub-projects
• An estimate of workdays required for each sub-project, based on standard work norms
which are found in Part 1 of the CBPWD Guidelines
• Requirements for technical assistance for the design of the project or during
implementation
• Requirements for non-labour capital or administrative inputs
• Operations and maintenance and future management plan for all new infrastructure
• A list of identified PSNP clients, including categorisation for conditional or unconditional
transfers
• Note that budgets are not prepared at Kebele level

4. The KFSTF verifies that the KASNP pays particular attention, where relevant, to
incorporating management and rehabilitation of the watershed as a key activity for
promoting long-term food security.

5. The content of the KASNP is used to update the wider Kebele Development Plan as
appropriate

6. The completed Kebele Annual Safety Net Plan within the context of the wider Kebele
Development Plan is presented to a general meeting of all communities in the kebele for
review and endorsement.

7. The endorsed KASNP is sent to the Woreda Food Security Task Force

The Kebele Annual Safety Net Plans are then submitted to the woreda for approval:

1. The KASNP is technically assessed by the WFSTF, which arranges a technical

appraisal of the proposed projects by experts from the woreda or regional Agriculture and
Rural Development Bureau and other line Bureaus, if not done already. This includes
project screening with ESMF (see 0).

2. If this process results in technical concerns with any of the proposed activities these
concerns are discussed with the WFSTF and may result in the suspension or rejection of
some of the proposed projects. However this is not grounds for delaying approval of the
wider KASNP. Any appeals arising from this process will be heard by the Woreda Council
or Cabinet, as appropriate.

7.3 Preparation of the Woreda Annual Safety Net Plan

Kebele Annual Safety Net Plans, which have been approved by the Woreda, form the basis
for all PSNP interventions. They are developed from community assessment of priorities as
described in section 7.2.4.

Woreda Annual Safety Net Plans (WASNP) are prepared from all of the Kebele Annual
Safety Net Plans in a woreda. Woreda Annual Safety Net Plans are prepared by Woreda
Office of Agriculture and Rural Development (WOARD), working together with other sector
offices. This helps ensure that their roles and responsibilities are acted on and duplication
of plans is avoided. The woreda plan is more than just a Public Works plan: it integrates all
safety net activities in the woreda, including the woreda–level functions.

The WASNP includes the following content:

1. Client numbers and their labour-based categorisation for conditional or unconditional
transfers

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2. Planned Public Works sub-projects, indicating those requiring specialised technical
input, and including the schedule for the year
3. The proportion of resources required in cash and food, and when each is needed based
on community demand
4. Transfer plans for cash and food, including when transfers will be needed, and where
and when they will be distributed
5. Staffing needs in the woreda
6. Equipment needs in the woreda
7. Training needs and plans for the woreda
8. Procurement needs and plans
9. Contingency plans
10. Coordination plans
11. Woreda Budget and schedule

The woreda Environmental or NR Expert ensures that any planned sub-projects of

environmental concern are clearly earmarked.

The WASNP is prepared in April when all the KASNPs are available, although planning
must occur in time to ensure that the WASNP is submitted to the Region by the end of
April. The process for planning and approval of the key elements of the Woreda Annual
Safety Net Plan is described in sections below.

7.3.1 Client numbers and their categorisation

The WASNP summarises the Kebele level data on client numbers and their categorisation,
with the following process.

1. Kebele client lists, which have taken into account graduation and any other adjustments
and are presented as a part of the KASNP, are sent to the WOARD and shared with sector
offices for better consolidation and analysis, and discussed by WFSTF. The client lists are
part and parcel of the KASNP.

2. The woreda Cabinet checks and approves the list of participants in each Kebele,
ensuring that adequate resources will be available during the year to support this number
of clients.

3. If any adjustments are needed, the WFSTF informs the KFSTF, which revises its client
list and KASNP accordingly.

4. If adjustments are needed that increase the client number above the PSNP budget
allocation, the woreda council may approve use of the woreda contingency to cover the
increase, see section 9.2.

7.3.2 Type of transfers - cash or food

The types of transfers or preference of food or cash is one of the KASNP sections,
discussed at community and kebele levels. The availability and price of food grain in the
market is the main parameter considered while making decision on cash, food or cash-food
mix. The woreda consolidates this information into an overall resource plan for the woreda,
taking into consideration official data from the woreda.

7.3.3 Cash and food transfer plans

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Timely and predictable transfers are key to the success of the PSNP. The Woreda Annual
Safety Net Plan is the source of information that allows regions and Federal level plan
adequately to make this so. The process is as follows:

1. WFSTF receives Kebele Annual Safety Net Plans and prepares analysis including the
following:
• Total client number per kebele based on approved number of clients after initial
appeals
• Total cash and food resources required for each kebele based on proposed cash-food
split (see section 7.3.2)
• Timing of cash needs based on kebele plans for timing of transfers across the year

This process is done in all PSNP woredas, whether government or NGO implementers

1. WFSTF and WOFED plan the PSNP payment schedule (including disbursement sites
and dates) for the year, along with client numbers receiving transfers from each site.
WFSTF and WOFED inform PSNP clients of the planned payment schedule.

2. This payment schedule for cash and food transfers is annexed to the WSNAP.

2. If cash and/or food flow plans are amended during the year, Woreda FSD informs
WFSTF and WOFED in a timely manner and woreda plans are amended. The amended
payment schedule is communicated to PSNP clients.

7.3.4 Staffing

Staff turnover is a critical challenge at kebele and woreda levels, which should be
assessed at least once a year by each line sector, and compiled by WOARD. The
assessment result will indicate the staffing capacity and measures to be taken. The woreda
needs to plan to ensure it has sufficient staff, both permanent and on contract, to
implement the PSNP effectively. The following process is followed to ensure such plans
are entered in the WASNP:

1. WFSTF reviews KASNP and identifies support requirements from woreda-level staff
from all departments and other organisations, including itself. This should be
comprehensive but may include:
• Staff for financial management
• Staff for food management
• Staff for programme oversight
• Staff for provision of required and anticipated technical support
• Staff for monitoring and evaluation
• Staff to provide training
• Staff for procurement

2. WFSTF circulates kebele plans and its initial assessment of support required from
woreda staff to Line Departments and other organisations required to provide support to
kebele level and play a role in PSNP implementation. This should be comprehensive based
on local arrangements but may include:
• WOARD (including Development Agents) and WOFED,

and as appropriate:
• Roads desk
• Education office

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• Health office
• Others

3. All Departments and other organisations assess needs for the coming year against
current staffing availability, taking into account any known changes for the coming year.

4. WFSTF assesses staffing levels against minimum standards for effective PSNP
implementation if relevant, and any subsequent capacity assessments as specified in
section 3.5.2.

5. All Departments submit reports on staffing status and its adequacy to serve needs in the
current year, with proposals for any changes and proposed budget for permanent or
contract staff, to the WFSTF

6. WFSTF compiles analysis of staffing adequacy and staffing requirements, and discusses
with departments until agreement is made.

7. WFSTF compiles Annual Staffing Plan, and inserts this as a section in the Woreda
Annual Safety Net Plan

8. Following Regional and Federal approval processes, woreda is informed of approved

staffing plans, and adjusts the WASNP as necessary.

7.3.5 Equipment needs

Each woreda must make sure that all equipment that will be needed for the coming year
will be available when it is needed. The following process feeds into the WASNP.

1. WFSTF reviews minimum requirements for equipment, as described in section 3.5.4.

2. WFSTF reviews KASNPs and identifies any further requirements for equipment at
woreda level to support kebele plans.

3. WFSTF refers to other capacity assessments for equipment for the PSNP under
capacity building or procurement initiatives to identify further equipment needs.

4. WFSTF requests all cooperating Departments and Organisations at woreda level to

submit their own equipment needs under the PSNP, with justification.

6. WFSTF compares existing equipment holdings with requirements and identifies where
additional equipment is needed for effective implementation of the PSNP.

7. WFSTF plans how each type of equipment need may be met. This may include:
• Pooling arrangements
• Other sharing arrangements
• Repairing existing equipment
• Purchasing second-hand equipment
• Purchasing new equipment

7. WFSTF reconciles priority needs with available budget and prepares an equipment plan
for the Woreda Annual Safety Net Plan, including items to be purchased and sourced by
other means.

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8. Any equipment requiring purchase are included in procurement planning process, see
below.

7.3.6 Training

The training plan includes: awareness creation on PSNP, refresher training for newly
recruited or appointed staff in PSNP guidelines. The training plan needs to be structured by
types of training, training clients (KFSTF, communities, development agents, woreda staff),
resource persons/institutions to provide training. The training plan may also consider
experience sharing (local or regional).

Woreda offices are responsible to:

• Provide whatever role is required of them to ensure adequate training and Human
Resource Development for lower levels.
• Ensure woreda staff are adequately trained, both new staff and existing staff.

The following process feeds into the development of the Woreda Annual Safety Net Plan:

1. WFSTF reviews minimum requirements for regular training, as described in section

3.5.3, and plans for what is needed.

2. WFSTF reviews kebele plans and identifies any further requirements for a woreda role in
training

3. WFSTF refers to other training assessments for the PSNP under capacity building
initiatives to identify further training needs

4. WFSTF requests other Departments and Organisations to submit their own training
needs under the PSNP.

5. WFSTF compiles an annual training needs assessment for needs that cannot be met at
woreda level. It also compiles an annual training plan for training which can be delivered at
woreda level. These are submitted to DPPFSC for approval and planning as a part of the
WASNP.

6. Following Regional approval and planning, the DPPFSC provides the woreda with an
approved annual training schedule for training organised at Regional or Federal levels.

7. The WFSTF amends the WASNP as necessary.

7.3.7 Procurement

The rules for PSNP procurement are summarised in section 8.2.2. Woreda responsibility
for procurement comprises:
• Procuring items allowed at the woreda level, and
• Passing on procurement needs where Regional or Federal action is required

The following steps are to be followed:

1. WFSTF to identify procurement needs from the process of identifying equipment

described in section 7.4.4 above and the capital inputs for public works based on the Public
Works plans.

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2. Identify other non-equipment procurement needs from training needs assessment
(section 7.4.3) and other sources.

3. Procurement officer in WoARD prepares a procurement plan according to the

procurement guidance, and following the format in Annex 5.

4. Procurement plan is included in Woreda Annual Safety Net Plan which is submitted to
DPPFSC.

5. The Region may seek further justification for procurement proposals, particularly those
for equipment.

6. Following Regional and Federal approval processes, the woreda will receive feedback
from DPPFSC on procurement plans, and will modify the woreda procurement plan if
necessary.

7.3.8 Contingency plans

Each woreda should have a woreda Contingency Plan for how it will deal with transitory
shocks, describing the use of the resources available from the PSNP Contingency Budget,
the PSNP Risk Financing Mechanism and the emergency relief system. The process for
developing and updating plans is described in the RFM Guidelines.

As part of the Woreda Annual Safety Net Plan preparation process, woreda Contingency
Plans should be updated with the following process:

1. Review CP and revise if needed, using RF guidelines.

2. Annex the revised plan to the Woreda Annual Safety Net Plan and submit to the Region.

7.3.9 Coordination

Coordination is specified as an Output in the PSNP logframe and is essential if PSNP is to

achieve its own objectives and also contribute effectively to graduation from food
insecurity. As described in section 3.6, coordination can be divided into two: coordination
for programme implementation, and coordination for enhancing programme impact.
Coordination is something that you do, not something that happens automatically. As such
it needs to be planned like any other activity. The steps for planning coordination at woreda
level are as follows:

1. WFSTF defines all the needs for coordination at woreda level, and all the mechanisms
that are available for facilitating that coordination, following the format at 0. As far as
possible specific events and dates should be identified.

2. WFSTF circulates the coordination list to all concerned stakeholders and asks them to
confirm that they have entered their obligations in their own annual plans.

3. The WFSTF translates the coordination list into an action plan that it will implement over
the coming year for proactive coordination

4. The WFSTF ensures that it has sufficient resources to fulfil its obligations regarding
coordination, and enters any additional resources into the relevant section of the annual
plan.

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5. The WFSTF includes the coordination plan in the woreda Annual Safety Net Plan, for
submission to Regional level

7.3.11 Woreda Budget and schedule

PSNP budgeting takes place at the woreda level, together with preparation of the Woreda
Annual Safety Net Plan. The PSNP woreda budget consists of four components:

The transfer budget. This represents 80% of the overall PSNP budget and has two
elements:
• Public Works, which covers transfers to public works clients,
• Direct Support, which covers transfers to direct support clients,

The capital budget. This represents 15% of the budget and covers capital inputs and
material for public works activities (woreda level expenditures). If a Public Works project
requires capital costs higher than 15%, the woreda can allocate the capital budget across
projects as it sees fit.

The administrative budget. This represents 5% of the budget and covers human
resources, small office equipment and materials, travel and transport, training, monitoring
and evaluation activities, and other costs (i.e. costs related to the operation of RRTs).

The Contingency Budget. Once the total budget has been established (transfers, plus
capital, and administrative costs), the woreda adds 5% for contingency funds. Management
of the contingency is described in detail in section 9.2.

The budget is linked to the Woreda Annual Safety Net Plan so that it is clear what each
allocation will be spent on. A timetable will also be produced showing what expenditures
will be incurred at what point during the Ethiopian Fiscal Year, with a clear overview of the
public works and transfer schedules.

The budget is submitted for approval to the Woreda Council and Cabinet and then
submitted to the Region for approval.

7.4 Regional Level Planning and Approval / RASNP

Regional level planning starts early enough to have a complete plan for submission to
FSCD by the end of May, and involves two parallel processes:
• Bringing together and ensuring quality and adequacy of plans emerging from woredas
• Putting into place plans for Regional-level functions

The product of the Regional planning process is the Regional Annual Safety Net Plan. This
document covers the following areas, each of which is described in following sections:
• Public Works
• Management
• Regional Staffing
• Training
• Equipment
• Transfer planning: cash and food
• Procurement
• Monitoring
• Regional Contingency Planning
• Coordination
• Budgeting

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The overall process for the RASNP is outlined below:

1. DPPFSC receives the WASNPs. These plans will already have been checked by the
Woreda to ensure that they are compatible with woreda development plans. In some
regions, these plans may be submitted through the Zonal Offices. The DPPFSC reviews
these plans to ensure that they are complete and accurate. The DPPFSC then circulates
the plans to NRMCP through its PWFU, EWRCP and BoFED.

2. BoFED receives and review plans and makes an allocation schedule that reflects the
resource flows required. NRMCP and EWRCP review the plans as required (see the
sections below).

3. DPPFSC consolidates the plans from Regional NRMCP, EWRCP and BoFED, together
with its plan and a resource allocation plan, into the Regional Annual Safety Net Plan.

4. The Regional PSNP Steering Committee reviews and approves the plans and submits
them to the Regional Cabinet for final approval.

5. Cabinet verifies that FSP annual plans and budgets are in line with strategic regional
priorities (growth corridors, natural resource conservation, etc.) and harmonises with
Government agendas.

6. If plans and budgets are not approved by the Cabinet, they are sent back to the
DPPFSC. The DPPFSC then communicates with woredas and zones to discuss the
issue(s) blocking approval and to find a solution. Plans are then resubmitted to the
DPPFSC.

7. Approved Regional Plan is then submitted to DRMFSS and NRMD at Federal level.

8. When the final Regional Annual Safety Net Plan is approved by the Federal level, it is
circulated down to woredas so they are fully informed on the decisions affecting them.

7.4.1 Public Works

The Woreda Annual Safety Net Plans are submitted to the DPPFSC, which submits them
immediately to the Regional NRMCP.

DPPFSC reviews woreda proposals for capacity building and administrative budgets and
regional line department proposals for capital and management budgets. DPPFSC verifies
that proposals are based on need. DPPFSC should verify woreda plans against a set of
minimum requirements for capacity at the woreda level and approve the capacity budget
based on this.

First, DPPFSC submits WSNAP to NRMCP. NRMCP then circulates the Line departments
review woreda plans to check if they are compatible with regional development plans,
priorities, targets and the wider watershed. If they are not, the line departments
communicate their concerns to NRMCP, through its PWFU. These concerns are
consolidated and then communicated to the woredas. The woreda may be asked to adjust
their WASNP in response to these comments.

Secondly, the woreda plans and woreda and regional sector department budget proposals
are discussed in the Regional Public Works/CCI Joint Technical Committee. The
Committee approves the final plans before submission to DPPFSC, and onward
submission to the Regional Cabinet.

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The ESMF Focal person in the PWFU passes the files for any sub-projects of
environmental concern to the Regional EPA for a decision as to whether or not an
Environmental Impact Assessment (EIA) is required.

If the Regional EPA decides than an EIA is required, the PWFU informs the concerned
woreda Environmental or NR Expert, who arranges for the EIA, in accordance with the
procedures set out in the ESMF (0).

If the Regional EPA decides that an EIA is not required, then EPA should approve (or
modify) the proposed mitigating measures in the Screening Form, sp that the DA can
finalise the sub-project design.

Thirdly, the Regional NRMCP, supported by the PWFU, receives proposals from regional
line departments for management budgets based on the WASNP. Regional management
budget is 2% of overall budget. NRMCP consolidates these requests and submits them to
the DPPFSC.

Fourthly, the Regional NRMCP, supported by the PWFU, should provide technical
backstopping and quality control for all sectors of Public Works through the TCC in the plan
approval process. Acting as secretary for the PW/CCI TCC, the Head of the PWFU is
therefore responsible for convening meetings and circulating comments on the plan for
discussion.

The Regional Technical Coordination Committee on PW/CCI has 3 main functions:

1. Reviewing the annual regional public works plan to ensure the feasibility of projects, a
balanced portfolio of project under public works; and inclusion of all public works actors.
2. Ensuring budget provisions from the regular government budget for the operation and
maintenance of new infrastructure in all sectors including health and education; and
3. Ensuring the active participation and technical inputs of the relevant line bureaus and
offices in the implementation and monitoring of the public works programme.
Based on the feedback from the Regional PW/CCI TCC, Regional NRMCP, supported by
the PWFU, makes necessary changes to the WASNP after consultation with woredas and
consolidate final woreda public works plans and budgets and send to DPPFSC.

Fifth, Regional NRMCP, supported by the PWFU, based on their analysis of the plans,
devises a plan for itself that outlines the technical backstopping, etc, needed for the year to
come including the associated management budget required.

Sixth, Regional NRMCP, supported by the PWFU, consolidates the final woreda public
works plans, together with its plans to support Public Works implementation in the Region
and the plans of the sectoral line agencies into a single Regional public works plan. This is
submitted to the DPPFSC.

7.4.2 Staffing

Staff turnover is a critical challenge at different levels, which should be assessed at least
once a year by each line sector, and compiled by DPPFSC. The assessment result will
indicate the staffing capacity and measures to be taken.

The Region plays a role in ensuring woredas and Zones have adequate levels of staff to
implement the PSNP effectively. It also has a role to ensure sufficient staff with the
necessary skills are available at Regional level to play the roles required of them. The
following process is followed to allow staff planning

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1. DPPFSC reviews woreda plans and identifies support requirements from Regional-level
staff from all departments and other organisations, including itself. This should be
comprehensive but may include:
• Staff for financial management
• Staff for food management
• Staff for programme oversight
• Staff for provision of required and anticipated technical support
• Staff for social development issues
• Staff for monitoring and evaluation
• Staff to provide training
• Staff for procurement

2. DPPFSC circulates woreda plans and its initial assessment of support required from
Regional staff to Line Departments and other organisations required to provide support to
woreda level and play a role in PSNP implementation. This should be comprehensive
based on local arrangements but may include:
• DPPFSC
• PWFU / NRMCP
• Roads
• Education
• Health
• BoWA
• Water
• Women’s Affairs Desk in Board
• Others

3. All Departments and other organisations assess needs for the coming year against
current staffing availability, taking into account any known changes for the coming year.
They also assess staffing levels against minimum standards for effective PSNP
implementation if relevant, and any subsequent capacity assessments as specified in
section 3.5.2.

4. All Departments submit reports on staffing status and its adequacy to serve needs in the
current year, with proposals for any changes and budgets, to the DPPFSC

5. DPPFSC compiles analysis of staffing adequacy and staffing requirements, and

approves the plans. If plans are not approved, they are returned to the relevant
organisation with explanation, for further discussion.

6. DPPFSC compiles Annual Staffing Plan, and inserts this as a section in the Regional
Annual Safety Net Plan.

7. DPPFSC allocates available regional management budget on priority basis in the plan,
and reports back to relevant organisations on budget allocations through circulation of the
Regional Annual Safety Net Plan.

7. Sector bureaux and organisations plan approved recruitment.

7.4.3 Training

The training plan includes: awareness creation, refresher training for newly recruited and
appointed staff in PSNP guidelines. The training plan needs to be structured by types of
training, training clients (KFSTF, woreda and regional staff), and resource

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persons/institutions to provide training. The training plan may also consider experience
sharing (local or abroad).

Regional offices are responsible to:

• Provide whatever role is required of them to ensure adequate training and Human
Resource Development for lower levels
• Ensure Regional staff are adequately trained, both new staff and existing staff

The following process feeds into the development of the Regional Annual Safety Net Plan:

1. DPPFSC reviews minimum requirements for regular training, as described in section

3.5.3, and plans for when, how, where, by whom it will be conducted. A budget is prepared
for each item.

2. DPPFSC reviews woreda plans and identifies any further requirements for a regional
role in training.

3. DPPFSC refers to other training assessments for the PSNP under capacity building
initiatives to identify further training needs

4. DPPFSC requests other Departments and Organisations to submit their own training
needs under the PSNP.

5. DPPFSC compiles an annual training plan, which also describes whether Regional or
federal level is responsible for financing and providing each training requirement.

7.4.4 Equipment

The Region must make sure that all equipment that will be needed for the coming year will
be available when it is needed. The following process feeds into the annual plan:

1. DPPFSC reviews minimum requirements for equipment, as described in section 3.5.4.

2. DPPFSC reviews woreda plans and consolidates any equipment requests from
woredas. It also identifies any further requirements for equipment at regional level.

3. DPPFSC refers to other capacity assessments for equipment for the PSNP under
capacity building or procurement initiatives to identify further equipment needs.

4. DPPFSC requests other Departments and Organisations to submit their own equipment
needs under the PSNP, with justification.

5. If requests are not approved then they are returned to their source with explanation and
further discussion takes place.

6. DPPFSC compares existing equipment holdings with requirements and identifies where
additional equipment is needed for effective implementation of the PSNP.

7. DPPFSC plans how each type of equipment need may be met. This may include:
• Pooling arrangements
• Other sharing arrangements
• Renting vehicles or other equipment
• Repairing existing equipment
• Purchasing second-hand equipment

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• Purchasing new equipment

8. DPPFSC reconciles priority needs with available budget and prepares an equipment
plan for the Annual Regional Plan. From this equipment plan, procurement needs are
identified and addressed through the procurement planning process described below.

7.4.5 Transfer Planning: Cash and Food

Timely and predictable transfers are key to the success of the PSNP. In order to ensure
this in practice there are some preparations Regions can make, as follows:

1. DPPFSC receives Woreda Annual Safety Net Plans and prepares analysis including the
following:
• Total client number per woreda based on approved number of clients after initial
appeals.
• Total cash and food required for each woreda based on proposed cash-food split (see
section 7.3.2).
• Timing of cash and food needs based on woreda-specific plans for timing of transfers
across the year.

This should include all PSNP woredas, whether government or NGO implementers. This
should be done in parallel of an analysis of food requirement to create a complete picture
of woreda-level resource requirements.

2. DPPFSC uses this information to compile a cash and food flow requirement analysis for
the Region, which also proposes timing for Contingency Budget allocations. DPPFSC
shares the cash flow information with BoFED for planning purpose. BoFED shares this
planning information with the Commercial Bank to allow it to address liquidity constraints
on banks in PSNP woredas.

3. Based on this analysis DPPFSC and BoFED plan cash transfers to woredas following
the normal financial processes, as described in section 8.3.1, making sure everything is in
place for timely disbursement. DPPFSC prepares a food resource plan by month. This plan
should include a clear indication of where and when food resources will need to be pre-
positioned.

4. The Regional cash and food flow analysis is included in the Regional Annual Safety Net
Plan, which is submitted to FSCD end May.

5. Following its own planning and approval processes (see section 7.5) and at/before the
start of the Financial Year, Federal FSCD will supply to DPPFSC in each Region a full
annual budget and cash and food flow statement stating when payment tranches will be
paid, and the amount of the cash disbursements.

6. The DPPFSC sends approved cash and food flow information to each WOARD, and the
woreda amends its own cash and food flow plan if necessary. At the same time, DPPFSC
sends the approved cash flow information to BoFED, which sends a copy to WOFEDs. The
approved distribution plan is communicated to PSNP clients through public meetings and
the positing of the approved distribution plan in public locations.

7. If cash flow plans are amended during the year, FSCD informs DPPFSC in each Region
in a timely manner and Regional and woreda plans are amended as per steps 6 and 7. Any
amendments are communicated efficiently to BoFED and WOARD and WOFED. WOARD
then informs PSNP clients of any changes in the PSNP cash transfer schedule.

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8. Reporting: Submitting financial and physical reports on quarterly basis is necessary to
ensure that funds are available at Federal level when required. This is the responsibility of
BoFED and DPPFSC.

7.4.6 Procurement

The rules for PSNP procurement are summarised in section 8.2.2. Regional responsibility
for procurement comprises:
• Procuring items allowed at the regional level, and
• Passing on procurement needs where Federal action is required

For Public Works capital items and office facilities, procurement takes place at woreda
level, unless an agreement is in place for the Region to undertake the bulk procurement of
capital goods on behalf of the woreda, such as in times of accessibility/supply problem.
Similar approach applied between region and federal level, as required.

The following steps are to be followed:

1. DPPFSC to Identify procurement needs from the process of identifying equipment

described in section 7.4.4 above.

2. Identify other non-equipment procurement needs from training needs assessment

(section 7.4.3) and other sources.

3. Procurement officer in DPPFSC, and in coordination with other sector office

procurement officers prepares a procurement plan according to the procurement guidance,
and following the format in Annex 5. This should be accompanied by a maintenance plan
for any items that will be procured to determine the cost of purchasing spare parts.

4. Procurement plan is included in Regional Annual Safety Net Plan which is submitted to
Federal level, together with the maintenance plan.

5. Federal level will either approve procurement plan or provide feedback with explanation
and begin a discussion.

7.4.7 Contingency Planning

Each Region should have a Regional Contingency Plan for how it will deal with transitory
shocks, describing the use of the resources available from the PSNP Contingency Budget,
the PSNP Risk Financing Mechanism and the emergency relief system. The process for
developing and updating plans is described in the RFM Guidelines.

As part of the Regional Annual Safety Net Plan preparation process, regional Contingency
Plans should be updated with the following process:

1. Review CP and revise if needed, using the RFM Guidelines.

2. Annex the revised plan to the Regional Annual Safety Net Plan

7.4.8 Coordination

Coordination is specified as an Output in the PSNP logframe and is essential is PSNP is to

achieve its own objectives and also contribute effectively to graduation. As described in

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section 3.6, coordination can be divided into two: coordination for programme
implementation, and coordination for enhancing programme impact. Coordination is
something that you do, not something that happens automatically. As such it needs to be
planned like any other activity. The steps for planning coordination at regional level are as
follows:

1. DPPFSC and PWFU defines all the needs for coordination at regional level, and all the
mechanisms that are available for facilitating that coordination.

2. DPPFSC circulates the coordination list to all concerned stakeholders and asks them to
confirm that they have entered their obligations in their own annual plans.

3. The DPPFSC translates the coordination list into an action plan that it will implement
over the coming year for proactive coordination

4. The DPPFSC ensures that it has sufficient resources to fulfil its obligations regarding
coordination, and enters any additional resources into the relevant section of the annual
plan.

5. The DPPFSC includes the coordination plan in the Regional Annual Safety Net Plan, for
submission to Federal level, and back down to woredas when complete

7.4.9 Regional Budget

The Annual Regional Plan budget pulls together all budget items from woreda and
Regional plans, for submission to Federal level, with the following steps:

1. The full costs of all Woreda Annual Safety Net Plans are compiled in the prescribed
format, as described in section 7.3, by the DPPFSC. This includes both cash and food, and
both Government and NGO woredas.

2. The full costs of all Regional-level expenses as identified in this section are added to the
same format, by DPPFSC.

3. The DPPFSC checks this budget and ensures that all cost categories have been
included for all levels, including transfers, capital and administration, Contingency Budget,
and capacity-building.

4. The checked budget is included in the Regional Annual Safety Net Plan, and submitted
by DPPFSC to FSCD.

5. Following its own budgeting and approval processes, Federal level will return the final
annual budget to the Region in early July. If the budget has been revised, DPPFSC will
revise its own budget and inform other departments and woredas of their own revised
budgets. DPPFSC also inform other sector offices/bureaus regarding the approved budget.
DPPFSC will also inform all PSNP woredas of the approved budget. Woredas revise their
budget as necessary and post the final approved budget in a public location.

6. Regions and woredas will then revise their own Annual Plans to fit with the final budget
allocation. The final, approved Annual Plans are posted in a public location or available
publically.

7.5 Federal-level Planning and Approval / the FASNP

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The product of Federal planning is the Federal Annual Safety Net Plan, which summarises
all key dimensions of the programme and compiles an overall programme budget for the
year. The Federal planning process takes place at the same time as planning processes
for lower levels, in time for the new Financial Year.

The format for the Federal Annual Safety Net Plan has the following sections, for each of
which guidance is provided in the sections below:
• Public Works
• Management
• Staffing
• Training
• Equipment
• Transfer planning: cash
• Transfer planning: food
• Procurement
• Contingency Planning
• Coordination
• Budgeting

When the final Federal Annual Safety Net Plan is approved, it is circulated down to
Regions, to other Federal agencies, and to Development Partners so all are fully informed
on the decisions that have been made. Any amendments to the Annual Plan are
communicated formally to Regions and Development Partners.

7.5.1 Public Works

The PWCU:
• Verifies consistency of regional public works plans and their correspondence with the
resources available.
• Verifies that the regional public works plans follow the principles of PSNP.
• Verifies that the ESMF procedures are followed and that the plans are in line with
federal priorities.
• Submits the regional public works plans to the federal PWJTC for information,
discussion and review.
• In the event that there are concerns about the regional public works plans, these
concerns are communicated to the regional PWFUs for their appropriate action.
• When all the regional public works plans are finalised appropriately, they will be
forwarded to the FSCD.
•
The PWCU also prepares an annual plan that details how it will support the implementation
of the RASNPs together with their overall mandate.

7.5.2 Staffing

Federal level is responsible for ensuring adequate staffing in Federal level organisations
with PSNP responsibilities, and also approving staff requests from Regions. The process is
as follows:

1. FSCD reviews Regional plans and identifies support requirements from Federal-level
staff from all departments and other organisations, including itself. This should be
comprehensive but may include:
• Staff for financial management
• Staff for food management

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• Staff for programme oversight
• Staff for social development
• Staff for provision of required and anticipated technical support
• Staff for monitoring and evaluation
• Staff to provide training
• Staff for procurement

2. FSCD circulates Regional plans and its initial assessment of support required from
Federal staff to Line Departments and other organisations required to provide support to
Regional level and play a role in PSNP implementation. This should be comprehensive
based on local arrangements but may include:
• NRMD, EWRD and MoFED
• And if relevant:
• Roads
• Education
• Health
• Water
• Women’s Affairs in MoA
• Others

3. All Federal Departments and other organisations assess needs for the coming year
against current staffing availability, taking into account any known changes for the coming
year. They also assess staffing levels against minimum standards for effective PSNP
implementation if relevant, and any subsequent capacity assessments as specified in 3.5.

4. All Departments submit reports on staffing status and its adequacy to serve needs in the
current year, with proposals for any changes, to FSCD

5. FSCD compiles analysis of staffing adequacy and staffing requirements, and approves
the plans. If plans are not approved, they are returned to the relevant organisation with
explanation, for further discussion.

6. FSCD compiles Annual Staffing Plan and inserts this as a section in the Federal Annual
Safety Net Plan

7. FSCD allocates available staffing budget on priority basis in the plan, and reports back
to relevant organisations on budget allocations through circulation of the Federal Annual
Safety Net Plan

8. FSCD reviews proposed staffing plans in the Regional Annual Safety Net Plans and
approves them as part of the wider process of approval of these Regional plans. If FSCD
does not approve the staffing proposals then an explanation is provided to the Region and
the issue is resolved through discussion. Regions then update their plans and resubmit to
FSCD for final approval. FSCD sends final approved plans back to Regions as described.

9. Departments and organisations plan approved recruitment.

7.5.3 Training

FSCD, in coordination with MoFED, EWRD and NRMD, is responsible for

• Providing whatever role is required of them to ensure adequate training and Human
Resource Development for lower levels
• Ensuring Federal staff are adequately trained, both new staff and existing staff

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The following process feeds into the development of the Federal Annual Safety Net Plan:

1. Capacity-building taskforce and general management technical committee in FSCD

reviews minimum requirements for regular training at Federal level, as described in section
3.5.3.

2. FSCD reviews regional training plans and identifies additional requirements for a Federal
role in training.

3. FSCD refers to other training assessments for the PSNP under capacity building
initiatives to identify further training needs requiring Federal input.

4. FSCD requests other Federal Departments and Organisations to submit their own
training needs under the PSNP.

5. FSCD compiles an annual training plan that fulfils its obligations and describing when,
how, where, by whom it will be conducted. A budget is prepared for each item.

6. The training plan is included in the Federal Annual Safety Net Plan.

7.5.4 Equipment

Federal level must make sure that all equipment at Federal level that will be needed for the
coming year will be available when it is needed. This might include:
• Vehicles
• Motorcycles
• Computers and other computer-related equipment
• Furniture
• Accessories for computers, photocopy machines, fax machines, etc

The following process feeds into the annual plan

1. FSCD reviews minimum requirements for equipment at Federal level, as described in

section 3.5.4.

2. FSCD reviews the Regional Annual Safety Net Plans and identifies any implications for
further equipment required at regional level, like vehicles, motorbikes, computers, etc.

3. FSCD refers to other capacity assessments for equipment for the PSNP under capacity
building or procurement initiatives to identify further equipment needs.

4. FSCD requests other Departments and Organisations to submit their own equipment
needs under the PSNP, with justification.

5. If requests are not approved then they are returned to their source with explanation and
further discussion takes place.

6. FSCD compares existing equipment holdings with requirements and identifies where
additional equipment is needed for effective implementation of the PSNP.

7. FSCD plans how each type of equipment need may be met. This may include:
• Pooling arrangements
• Other sharing arrangements
• Renting vehicles or other equipment

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• Repairing existing equipment
• Purchasing second-hand equipment
• Purchasing new equipment

7. FSCD reconciles priority needs with available budget and prepares an equipment plan
for the Annual Federal Plan.

7.5.5 Transfer Planning: Cash

DRMFSS and MoFED are responsible for ensuring that cash is available to provide cash
disbursements to make cash transfers timely and predictable. The process for planning
cash at federal level is as follows:

1. FSCD proposes a predicted wage rate for the programme for the coming year in June,
as described in section 3.2.7, which is approved by the JSOC.

2. FSCD decides on the appropriate cash:food split for each Region as described in
section 3.2.8, taking into account:
• Requests expressed in Regional Annual Safety Net Plans
• Predicted food availability for the programme overall
• Predicted cash availability for the programme overall
• Predicted wage rate for the programme for the year
• The risk management principle

3. FSCD analyses Regional Annual Safety Net Plan submissions, calculates the cash
required each month of the year, for each Region

4. FSCD produces a cash flow requirements analysis.

5. The cash flow requirement analysis is passed to MoFED. MoFED defines when
disbursements will be made to Regions for the coming year, and the amount of each
disbursement, and returns the analysis to FSCD. MoFED communicates the disbursement
plan to the National Bank of Ethiopia, which provides this to the Commercial Bank, to
enable it to address any liquidity constraints.

6. The final cash flow analysis and disbursement plan is circulated by FSCD to MoFED,
Government Line Departments, Development Partners, and DPPFSC in the Regions as
part of the reporting downwards process. MoFED sends to BoFED.

7.5.6 Transfer Planning: Food

Federal level FSCD is responsible for ensuring that food is available to provide food
disbursements and transfers timely and predictable. The process for planning food at
federal level is as follows:

1. FSCD identifies the likely food availability for the coming year taking into account:
• Carry-over stocks held by EWRD, NGOs and WFP.
• Agreed provision from development partners, especially USAID, and the timeline for
these deliveries.
• Current stocks in EFSRA and the possibility of accessing them.
• Predicted market trends, nationally and internationally.
• Predicted emergency requirements.
• Possibility of procuring food nationally or internationally.

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2. FSCD decides on the appropriate cash:food split for each Region taking into account:
• Requests expressed in Regional Annual Safety Net Plans.
• Predicted food availability for the programme overall, including ability of FSCD to
procure food locally or internationally.
• Predicted cash availability for the programme overall.
• Predicted wage rate for the programme for the year.

3. FSCD analyses Regional Annual Safety Net Plan submissions, calculates the food
required each month of the year, for each woreda in each Region.

4. FSCD produces a food flow requirements analysis, including an assessment of the

source of food for each monthly payment. Any amounts to be borrowed from the EFSRA
are secured in advance.

5. The food flow requirement analysis is passed to EWRD. EWRD defines when
disbursements will be made to woredas for the coming year and the amount of each
disbursement. EWRD provides a copy of this analysis to FSCD. After food flow
requirement is analysed, FSCD and EWRD (logistic department) need to jointly develop
allocation plan, dispatch plan and delivery reporting plan

7. The final food flow analysis and disbursement plan is circulated by FSCD to DPPFSC
and EWRD, and to NGOs, WFP and USAID as part of the reporting downwards process.

7. EWRD and FSCD plan the sourcing of the food to meet this schedule, including a
timetable for specific actions that are needed to ensure the food is available where needed
on time.

8. If any changes are required during the course of the year, EWRD informs FSCD which
informs Regions as soon as possible, and provides revised schedules. Regions then inform
woredas, and woredas revised their woreda plans accordingly to ensure predictability for
PSNP clients. Woredas communicate any changes in the distribution plan to PSNP clients.

7.5.7 Procurement

The rules for PSNP procurement are summarised in section 8.2.2. Federal responsibility
for procurement comprises:
• Procuring items required at the Federal level, and
• Approving procurement proposals from Regions

The following steps are to be followed for the Federal Safety Net Plan:

1. FSCD to identify procurement needs from the process of identifying equipment

described in section 7.5.4 above.

2. Identify other non-equipment procurement needs from training needs assessment

(section 7.5.3) and other sources.

3. FSCD reviews procurement proposals in draft Annual Plans from Regions and approves.
If Regional plans are not approved then FSCD provides an explanation why and addresses
the situation through discussion.

4. FSCD identifies items from Regional procurement plans requiring Federal procurement.

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5. Procurement officer in FSCD prepares an annual procurement plan according to the
procurement guidance, and following the format in Annex 5. This is accompanied by a
maintenance plan for all equipment to be purchased.

6. Procurement plan is included in Federal Annual Safety Net Plan which is circulated back
to Regions as described in section 8.2.1 so they can see what items are included in the
procurement plan relevant to their needs.

7.5.8 Contingency Planning

The Federal level has a Contingency Plan for how it will deal with transitory shocks,
describing processes for the use of the resources available from the PSNP Contingency
Budget, the PSNP Risk Financing Mechanism and the emergency relief system. The
process for developing and updating the Federal Contingency Plan is described in the RFM
Guidelines.

As part of the Federal Annual Safety Net Plan preparation process, the Federal
Contingency Plan should be updated with the following process:

1. Review CP and revise if needed, using guidelines summarised in the RFM Guidelines.

2. Annex the revised plan to the Federal Annual Safety Net Plan

7.5.9 Coordination

Coordination is specified as an Output in the PSNP logframe and is essential if PSNP is to

achieve its own objectives and also contribute effectively to graduation. As described in
section 3.6, coordination can be divided into two parts: coordination for programme
implementation, and coordination for enhancing programme impact. Coordination is
something that you do, not something that happens automatically. As such it needs to be
planned like any other activity. The steps for planning coordination at Federal level are as
follows:

1. FSCD defines all the needs for coordination at Federal level, and all the mechanisms
that are available for facilitating that coordination. As far as possible specific events and
dates should be identified, but many items will be processes rather than specific meetings.

2. FSCD circulates the coordination list to all concerned Federal stakeholders and asks
them to confirm that they have entered their obligations in their own annual plans.

3. The FSCD, EWRD and NRMD translate the coordination list into an action plan that it
will implement over the coming year for proactive coordination

4. The FSCD ensures that it has sufficient resources to implement the coordination action
plan, and enters any additional resources required into the relevant section of the annual
plan.

5. The FSCD includes the coordination action plan in the Federal Annual Safety Net Plan,
for circulation to programme partners and back down to Regions.

7.5.10 Federal Budget

The Annual Federal Plan budget pulls together all budget items from the PSNP, with the
following steps:

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1. The full costs of all approved Regional Annual Safety Net Plans are compiled in the
prescribed format, as described in Chapter 4:, by the FSCD. This includes both cash and
food, and includes both Government and NGO woredas.

2. The full costs of all approved Federal-level planned expenditures as identified in this
section are added to the same format.

3. The FSCD check this budget and ensure that all cost categories have been included for
all levels, including transfers, capital and administration, Contingency Budget, capacity-
building and management budgets.

4. The final budget is included in the Federal Annual Safety Net Plan, and submitted by
end July to MoFED for approval with the regular Government Budget and Development
Partners at federal level, and in the final Federal Annual Safety Net Plans back down to
Regions who in turn provide relevant information to Zones and woredas.

7.6 Dissemination of approved Federal Annual Safety Net Plan

Once the PSNP annual plan and budget has been approved at Federal-level, MoFED
posts the annual woreda-by-woreda budget on its website. Each woreda also posts the
annual PSNP plan and budget in a public location in the woreda centre and in each kebele
centre. This should remain posted for the entire year.

At woreda level, the approved PSNP annual plan, budget and list of clients is posted in
public locations on the woreda and kebele centres. If possible, this list is also sent to all
PSNP communities to be posted. This will help ensure that clients and non-clients in PSNP
areas are well informed of which households will participate in the PSNP for the coming
year, which Public Works will be undertaken and the overall budget for this work. .

The Client Bill of Rights and Responsibilities is posted next to the client list. The Client Bill
of Rights and Responsibilities is also be posted in the woreda and kebele centres and, if
possible, among PSNP communities. This should remain posted throughout the year. Any
other PSNP posters or information material are also be posted in public locations. If these
have been destroyed or lost, the woreda requests new materials from the Regions.

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CHAPTER 8: PSNP IMPLEMENTATION

8.1 Introduction .............................................................................................................. 143

8.2 Procurement ............................................................................................................ 143
8.2.1 Management of Procurement............................................................................. 145
8.2.2 Procurement Processes and Procedures ........................................................... 147
8.3 Financial Flow .......................................................................................................... 150
8.3.1 Flow of cash resources ...................................................................................... 150
8.3.2 Financial reports ................................................................................................ 153
8.3.3 Replenishment of PSNP pooled account at Federal-level .................................. 154
8.4 Food Logistics .......................................................................................................... 155
8.5 Implementation of Public Works ............................................................................... 157
8.5.1 Public Works Implementation Procedures.......................................................... 157
8.5.2 Public Works Labour Organisation ..................................................................... 157
8.5.3 Labour rules ....................................................................................................... 159
8.5.4 Attendance and Discipline ................................................................................. 161
8.5.5 Public Works Verification Process...................................................................... 161
8.6 Payment procedures ................................................................................................ 162
8.6.1 Introduction ........................................................................................................ 162
8.6.2 Use of PASS ...................................................................................................... 162
8.6.3 Types of payment .............................................................................................. 162
8.6.4 PSNP Attendance Sheets preparation ............................................................... 163
8.6.5 PSNP Payroll preparation .................................................................................. 164
8.6.6 How are payments to clients made? .................................................................. 164

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CHAPTER 8: PSNP IMPLEMENTATION

8.1 Introduction

Chapter 8 outlines the important implementation processes followed by the PSNP. These
concern the following subjects, each of which are described in sections below:
• Procurement
• Financial logistics / flow
• Food logistics / flow
• Management of Public Works
• Payment procedures

8.2 Procurement

All procurement for the PSNP will follow standard government procedures for the National
Competitive Bidding (NCB) and shopping method of procurement. World Bank procedures
will be followed for all International Competitive Bidding (ICB) method of procurement,
which is carried out at Federal-level only. These procedures are designed to ensure
transparency of the procurement process. This includes ceiling amounts and procedures
for “shopping”, National Competitive Bidding and International Competitive Bidding.
Although there will be some procurement for federal and regional government
requirements as part of the PSNP, the majority of procurement will be for Public Works
which is implemented at the woreda level.

The PSNP Procurement Guidelines, which are aligned with Government procedures and
are the source of detailed guidance for PSNP procurement management. They provide
guidance on procurement planning, implementation and reporting, and are summarised in
the section below.

Value for money. A key principle for procurement for the PSNP is that the supplier with
the lowest price should be awarded the contract only when the purchaser is satisfied that
the products being supplied are adequate to meet the need. This assessment will take into
account quality of the good, and also practical considerations such as the availability and
price of spare parts or consumables in local markets in Ethiopia. It will also take into
account reliability and past performance of specific suppliers.

In some cases it will be necessary to purchase goods that are not the lowest price, when
the comparison of price between suppliers is not comparing goods of the same quality or
availability. The technical specifications and future sustainable use of the goods to be
purchased must be clearly agreed with those for whom the procurement is being tendered
at the planning stage. This will ensure that goods procured meet the needs of end-users. It
is the responsibility of procurement planners to ensure that the right goods are procured,
not just the cheapest.

Record-keeping. Proper record keeping of procurement processes is essential for a

successful outcome. The experience is that lack of record keeping or an efficient filing
system causes long and costly delays in the search for documents at critical moments
when procurement issues arise or when procurement post reviews need to be done
(procurement assessments, post reviews, IPRs or project audits).

Procurement filing has specific characteristics. Files must be based on the three
procurement categories (works, goods, consultant services/training) and span the entire
procurement process per contract in each category in an efficient and easily accessible

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 manner (from advertising to contract signature and management.). This system should
best be maintained professionally in order to remain useful.

Some of the basic records to be kept are indicated in the following tables both for goods,
works and selection of consulting firms.

Important records to be kept for procurement of Goods and Works for different method

Note:
ICB related procurement records shall be kept at federal level
NCB related procurement records shall be kept at federal/regional level as required
Shopping related procurement document/records shall be kept at woreda level

Important records to be kept for selection of consultancy services

Nr Description IC N Local
B C Shoppi
B ng
1 Copy of the GPN with publication date √ √
2 Copy of the Specific Procurement Notice with publication date √ √
3 No-objection from World Bank to draft Bidding document √
4 Modifications/addenda to bidding documents (if any) √ √ √
5 Final bidding documents/RFQ issued to bidders √ √ √
6 Bid-opening report √ √
7 Government notice on composition and start of evaluation √ √
committee
8 Clarifications requested from bidders and written replies √ √ √
9 Bid Evaluation Report /quotation comparison report √ √ √
10 Analysis of Bid Evaluation Report and recommendation √ √
11 Comments by the World Bank and/or no-objection on award of √
contract
12 Copy of Letter of Acceptance √ √ √
13 Copy of signed contract √ √ √
14 Copy of letter to the World Bank transmitting signed contract for √
disbursement
15 Publication of Award in UNDB online and dg-Market or national √ √
press
16 Contract amendments √ √ √
17 Inspection certificates √ √ √
18 Payment Certificates √ √ √
19 Completion certificates √ √ √
20 Copies of guarantees √ √
21 Claims and Disputes √ √ √

O. Description Selection Selection

Nr of of
consulting Individual
firm consultant
1 Copy of the general Procurement Notice √

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2 Advert for Request for Expression of Interest and publication date √
3 List of Consulting firms having expressed their interest √
4 Documentation provided by Consultants √
5 report for the evaluation of EoIs (short listing report) √
6 Comments/no-objection from the World Bank to proposed short list √
7 Request for Proposal (RFP) and Terms of Reference √
8 No-objection/Comments by the World Bank to draft RFP √
9 Notice by Borrower of RFP sent to short listed firms √
10 Notice by Borrower of proposals received and opening of technical √
Proposals
11 Notice by Borrower of appointment of evaluation committee √
12 Technical Evaluation Report √
13 Analysis/comments by the Bank of Technical Evaluation Report. √
14 Minutes of Opening of Financial Proposals. √
15 Financial Evaluation Report. √
16 Combined Technical and Financial Evaluation Report √
17 No-objection by the World Bank to recommendation for selected √
consultant and authorisation to negotiate
18 No-objection by the World Bank to negotiated initialled draft √
contract)
19 No-objection from the World Bank to initialled draft contract √
20 Copy of signed contract √
21 Letter to the World Bank transmitting copy of signed contract for √
disbursement
22 Publication of Award √
23 Contract Amendments √
24 Consultant Reports √
25 Technical Assistance Reports √
26 Claims and Disputes √
27 Folders for Contracts with Individual consultants for technical
assistance and training: Name on a folder for each individual
√
consultants, terms of reference, request for EoI, short list, CVs and
evaluation report

8.2.1 Management of Procurement

a) Procurement at the Federal level

Procurement needs at Federal level based on the Federal PSNP Annual Plan.

The FSCD is responsible for procurement at Federal-level, through the Finance and
Procurement Case Team. Procurement related to the annual work plans of MoFED and
NRMD will be carried out by these institutions, unless FSCD is requested to carry out the
procurement on their behalf.xxx

FSCD develops a consolidated procurement plan based on an assessment of capacity

building requirements at Federal-level carried out by FSCD, NRMD, EWRD and MoFED
and food procurement requirements. The procurement plan also includes items that the
Regions have requested that the Federal-level procure on their behalf.

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FSCD (NRMD or MoFED) then procures the goods and services listed in the procurement
plan in line with the procurement procedures detailed below. The steps of these processes
are as follows:

Step Activity Responsibility

1 Preparation of Procurement Plan Procurement Specialist
2 Approval of Procurement Plan Director, FSCD
3 Preparation of bidding Procurement Specialist
documents/RFPs
4 Approval of bidding documents/RFPs Tender Committee
5 Bid/proposal opening Tender Committee
6 Bid/proposal evaluation Technical/Tender Committee
7 Approval of evaluation reports FSCD Director/DRMFSS State
Minister
8 Preparation of contract document Procurement Specialist
9 Contract award/signature FSCD Director/DRMFSS State
Minister

b) Procurement at the Regional level

BoARD is responsible for PSNP procurement at Regional level. As part of the planning
process, the DPPFSC collects the procurement plans for all woredas in May, which are
based on an analysis of any capacity gaps, and any procurement requests from the
Regional departments implementing the PSNP. These requests, together with the
justification provided, are reviewed. If properly justified, these requests are consolidated
into a regional procurement plan, which is submitted to the FSCD together as part of the
PSNP Annual Regional Safety Net Plan at the end of May.

The procurement section of BoARD (and other line ministries) is responsible for
procurement of goods and services under National Competitive Bidding (see below). The
Regional Procurement Officers provide technical assistance to the procurement planning
process and supervise the procurement activities.

To ensure efficient procurement by the regional government, the BoARD consolidates

procurement requests from different woredas into packages to allow competitive pricing
through bulk supply. After purchase orders have been received by the BoARD, a request
for transfer of funds is made to the woreda administration to enable payment for the goods
or services

Procurement contracts for goods will normally include a requirement for suppliers to deliver
the goods to the regional department or, if the procurement is for a woreda, as close to that
woreda as possible. This location will normally require secure storage facilities. The
woreda administration will be responsible for receiving the goods at this location and
providing transport to the woreda.

In all cases, procurement requests will be dealt with as efficiently as possible to ensure that
the required goods and services are available for timely implementation of Safety Net
activities.

Step Activity Responsibility

1 Preparation of Procurement Plan Procurement Officers
2 Approval of Procurement Plan Head/Process
Owner/Commissioner
3 Preparation of bidding Procurement Officers

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 documents/RFPs
4 Approval of bidding documents/RFPs Tender Committee
5 Bid/proposal opening & Evaluation Tender Committee
6 Approval of evaluation reports Head/Process
Owner/Commissioner
7 Preparation of contract document Procurement Officers
8 Contract award/signature Head/Process
Owner/Commissioner

c) Procurement at the Woreda Level

As part of the technical appraisal of Public Works projects during the formulation of the
Woreda Safety Net Plan during April, all goods and services required for implementation of
public works will be identified by the DA and technical specialists at the same time. These
procurement requirements will be consolidated, along with any woreda level procurement
requirements for the overall implementation of the PSNP, into the Woreda Safety Net
procurement plan. The responsibility for preparation of the Procurement Plan at woreda
level lies with WOFED and WoARD.

Woredas are primarily responsible for national shopping and small-scale procurement of
works (see definitions below). Woredas with adequate procurement capacity may
undertake procurement for goods and larger civil works following established national
competitive procedures. Contract awards will follow established Government procedures
regarding composition and mandate of the tender committee.

Some products will be available at the woreda level, for instance small office equipment
and supplies, and sundry items for Public Works. In many cases the quantities of goods
and services required to implement Public Works across the woreda will not be available
locally at a competitive price or in an adequate quality or quantity to meet woreda
procurement requirements. In these cases procurement requests will be passed to the
regional government for procurement on behalf of the woreda administration.

Step Activity Responsibility

1 Identification of procured items Development Agents/other staffs
2 Preparation of Procurement Plan Woreda procurement staff
3 Approval of Procurement Plan Head of woreda Fin. & Eco. Dev.
Office
4 Preparation of bidding documents/RFQ Woreda procurement staff
5 Approval of bidding documents/RFPs Woreda Tender Committee
6 Bid/proposal opening & Evaluation Woreda Tender Committee
7 Approval of evaluation reports/ price Head of woreda Fin. & Eco. Dev.
comparison report Office
8 Preparation of contract document Procurement staffs
9 Contract award/signature Head of woreda Fin. & Eco. Dev.
Office

8.2.2 Procurement Processes and Procedures

a) Procurement of goods and works

Prequalification of suppliers will be used for the supply of food grain. World Bank’s
standard prequalification document, issued May 2007, will be used for the purpose of
prequalifying potential suppliers.

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The procurement of goods and works will be using the World Bank’s Standard Bidding
Documents for all ICB. NCB will use national Standard Bidding Documents that are
satisfactory to the World Bank.

The procurement methods for goods and works are implemented in coherence to the
revised threshold and include primarily:
• International competitive bidding (ICB) threshold for goods is equivalent to US$
500,000 and above and US$ 5,000,000 and above for works.
• All ICB methods are subjected to World Bank prior review.
• National Competitive Bidding (NCB) threshold for goods and works is with estimated
values of less than US$ 500,000
• National shopping (NS) procurement method is used for goods with estimated values of
US$ 50,000 and below. Procurement of this method is on the basis of quotations from 3
qualified domestic contractors (see the Shopping guideline below).
• Direct contracting will be used where it is to the benefit of the project and in accordance
with the provision of paragraph 3.6 of the World Bank’s procurement guidelines.

b) Selection of consultant

Most contracts with firms will be awarded through the use of the Quality and Cost Based
selection described under section II (2.1 – 2.31) of the World Bank Consultants Guideline
using the World Bank’s revised request For Proposal (December 2008). Consulting service
for audit and other contracts of standard or routine nature may be procured under Least
Cost Selection method described under paragraph 3.6 of World Bank Consultants
Guideline.
• Selection process of consulting firm for the estimated budget of US$ 200,000 and
above are subject to World Bank prior review and the shortlist shall contain a maximum
of 2 firms from the same country.
• Selection process of consulting firm for the estimate budget which is less than US$
200,000 is subject to World Bank post review and can contain shortlist of national
consulting firms only.
• Selection of individual consultant is carried out by advertising for Expression of Interest
and by comparing the qualification of at least three qualified candidates in accordance
with section V of the World Bank Consultant Guideline.
• Selection process for the individual consultant with estimated budget of USD 100,000
and above is subject to prior review of the World Bank.
• Single sources selection may be used where it is to the benefit of the project in
accordance with the provision of paragraph 3.9 or 5.4 of the World Bank’s Consultant
Guideline.

The first two (2) contracts of each procurement method, irrespective of their amount, will be
subject to World Bank prior review. All single-source selection and all direct contracts,
irrespective of the amount, will be subject to World Bank prior review.

c) Operating Costs

Expenditures made for operational costs such as fuel and stationery, cost of operation and
maintenance of equipment, communication charges, transportation costs and travel
allowances to carry out field supervision, will follow approved Ethiopian Government
practices.

d) Training and workshops:

It will be based on capacity building needs, identified as described in Chapter 6.

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• Venues for workshops and training and purchase of materials will be done on the basis
of at least three quotations (refer local shopping guidelines).
• The selection of institutions for specialised training will be done on the basis of quality
and therefore use the Quality and Cost Based selection method.
• Regional Annual training plans and budget shall be prepared according to the process
described in Chapter 6 and submitted to FSCD by end May. They are then incorporated
in the Federal Annual Safety Net Plan by end June, which is approved by the JSOC in
advance of the training.
• Any training subsequently required but not included in the Annual Training Plans will
require special justification and approval from General Management Technical
Committee or JSOC as appropriate.

e) Guidance to shopping

Basic steps followed in handling the shopping procurement procedure are:

• Purchaser to obtain and compare at least three quotations to establish reasonableness
of price. Comparison of two quotations is justified only when there is evidence
satisfactory to the World Bank that there are only two reliable sources of supply.
• It is possible that not all the suppliers invited will respond to the request for quotations.
To minimise the risk of getting only one or two quotations, clients are advised to initially
request more than three quotations. Clients may also at the time of the request, verify
whether those being invited will make an offer or not.
• When there is more than one source for the goods, at competitive prices, in the country
the client may use national shopping, but must obtain at least three quotations.
• The executing agency exercises due diligence to satisfy itself that the firms invited to
quote are reputable, well established, and are suppliers of the goods or services being
purchased as part of their normal business. In case the executing agency receives
unsolicited quotations, these may be accepted after carrying out a similar due diligence
exercise to verify the nature and reputation of the firms.
• The purchaser requests quotations by letter, fax, telex, electronic messaging, etc., (with
proof of receipt and record keeping). The request includes the description and quantity
of the goods, as well as the required delivery time and place for the goods or services,
including any installation requirements, as appropriate. The request indicates the date
by which the quotations are needed.
• Suppliers submit their quotations in writing, i.e., by fax, telex, letter, or electronic
messaging (copies to be kept for the records). No bid or performance securities are
required. There is no requirement for strict time and date for submission of quotations
and for public opening, but normally requests for quotes indicate the expected date of
submission of quotes, within one or two weeks of the initial request. In other cases, if
the purchaser has not received at least three quotations within the time set, it verifies
with the missing suppliers whether they intend to do so and how soon. Unless there is
extreme urgency or there are already three or more quotations available, the executing
agency may give a reasonable amount of additional time; say three more days, to get
additional quotations. At this point the client may proceed with the comparison of the
proposals received.
• Quotations are compared after adding to the quoted price for goods, the estimated cost
of inland transportation and insurance, if any, to the final destination. The lowest priced
offer is selected. Purchasers may exercise discretion in selecting a quotation that is not
the lowest priced, as far as there is a good justification. For example, a slightly higher
price may be justified for faster delivery or immediate availability in cases of extreme
urgency, when late delivery may result in heavy consequences for the purchaser. In
such cases, the intention should be indicated in the request for quote.
• The client documents the award decision and its rationale and keeps it for review and
audit by the World Bank, as needed. The record contains also the list of firms invited

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 and the list and value of the quotations received and documents clearly that the award
is based on sound economic criteria.

f) Standard Bidding Documents

The World Bank’s Standard Bid Documents will be used for all tenders for procurement of
goods and works under ICB. Domestic preference would be applicable under ICB in
accordance with paragraph 2.55 and 2.56 of the World Bank Procurement Guideline. The
borrower may grant a margin of preference of 15% the evaluation of bid under ICB
procedure to bids offering certain goods produced in Ethiopia, when compared to bids
offering such goods produced elsewhere.

The Federal Government’s standard bidding document for procurement of goods and
works (issued by the PPA Version 1, January 2006) for NCB were reviewed by the World
Bank and found to be generally consistent with the World Bank’s guideline and procedure.
However some provisions in the Government’s standard bidding documents need to be
adjusted to ensure that the documents are fully compatible with the World Bank’s
guidelines. The standard documents of the government can be used for procurement of
goods and works provided that:

• The Recipient’s standard bid documents for procurement of goods and works shall be
used;
• If pre-qualification is used, the World Bank’s standard prequalification document shall
be used;
• Margin of preference shall not be applicable;
• Bidders shall be given a minimum of 30 days to submit bids from the date of availability
of the bidding documents;
• Use of merit points for evaluation of bids shall not be allowed;
• Foreign bidders shall not be excluded from participation; and
• The results of evaluation and award of contract shall be made public.

8.3 Financial Flow

8.3.1 Flow of cash resources

The section below describes how the cash resource component of the PSNP Annual Plan
is implemented, together with other elements of financial management that are critical to
ensuring the sound implementation of the PSNP. The overall flow of funds for
implementation is seen in Figure 11: Financial Flow.

For the current phase, new arrangements for disbursements from Federal level are
introduced, with regular Quarterly disbursements for cash transfers at the beginning of the
month in August, October, January, and March. This reflects the shift towards use in 2010
of the Ethiopian Government Financial Year running from 8th July to 7th July or Hamle 1 to
Sene 30. More specifically, cash resources will be disbursed to Regions each year by:
- August 10
- October 1
- January 1
- March 1

The overall timeline for the steps that follow are found in Table 8 and Table 9. The overall
timeline is drive by the PSNP performance targets.

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Table 8: Timeline for Dissemination of PSNP Annual Cash Resource Distribution
Plan

Once the Federal Annual Safety Net Plan approved:

FSCD submits to MoFED and Regions the PSNP Annual Cash Resource
Within 3 days Distribution Plan by Region and woreda
MoFED sends the PSNP Annual Cash Resource Distribution Plan to National
Within 2 days Bank and BoFEDs

Regions review PSNP Annual Cash Resource Distribution Plan and resolve any
Within 5 days discrepancies with FSCD and MoFED. Final Plan is resubmitted, as needed

Regional Food Security prepares a Regional PSNP Annual Cash Resource

Within 3 days Distribution Plan and sends it to BoFED and the WoARDS

BoFED submits the Regional PSNP Annual Cash Resource Distribution Plan to
Within 2 days the Regional Commercial Bank and WoFEDs

Table 9: Timeline for transfer of cash resources from federal to woreda level

FSCD requests MoFED to transfer cash resources as per the schedule. This
request is copied to the Regional Food Security

MoFED instructs the National Bank to transfer cash resource to the Regional
Within 2 days PSNP accounts. This instruction is copied to BoFED and FSCD.

Within 2 days National Bank complies with this request.

Upon receipt of FSCD instruction to MoFED, DPPFSC instructs BoFED to

transfers cash resources to PSNP woredas and regional account(s) in line with
Within 2 days the PSNP Annual Cash Resource Disbursement Plan

Upon receipt of instruction from DPPFSC, BoFED instructs the Commercial Bank
Within 2 days to transfer the cash resources

Step 1: Development partners deposit loans and grants into segregated US Dollar (USD)
bank accounts at the National Bank. These loans and grants are made according to the
agreements signed with the Federal Government, and in line with agreed disbursement
percentages. Development partners can only deposit loans and grants into the MoFED
account after they have received PSNP Financial Reports from MoFED, as per the agreed
format.

Step 2: MoFED transfers money from the segregated USD bank accounts and deposits the
equivalent amount in Birr into the pooled Birr bank account for the PSNP as required. This
ensures a continuous cash flow to the Programme.

Step 3: Once the PSNP Annual Federal Safety Net Plan has been approved in June,
FSCD submits to MoFED an annual cash resource distribution plan by Region and woreda,
within 3 days of the approval of the Annual Plan. At the same time, FSCD sends this
information to DPPFSCs. Within two days of receiving the Resource Distribution Plan,

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MoFED communicates the annual cash resource distribution plan to BoFED and the
National Bank. This is completed by July 15 of each year.

If MoFED, DPPFSCs or BoFEDs note any discrepancies between the annual cash
resource plan and the approved Annual Plan, these should be corrected immediately by
FSCD and MoFED. Any corrections should be completed within 5 days.

Upon receipt of the annual cash resource plan from FSCD, DPPFSCs prepare a regional
annual cash resource plan, which is communicated to BoFED and the Zones and woredas
within 3 days. BoFED communicates the Plan to the Regional Commercial Bank and
WoFEDs within 2 days.

Step 4: FSCD requests MoFED to transfer the frontloading to Regions, as per the annual
cash distribution plan, by 10 August. FSCD also informs MoFED if there are any changes
in the annual cash resource allocation plan. This information is sent to DPPFSC at the
same time via fax.

Within 2 days of receiving this request, MoFED instructs the National Bank to transfer the
cash resources to BoFED, to be deposited into PSNP specific bank accounts at Regional
level. This instruction is copied to BoFEDs via fax. National Bank complies with this request
within 2 days.

Step 5: Upon receipt of the copy from FSCD to MoFED requesting the transfer of cash
resources to BoFED, DPPFSC writes a letter to BoFED requesting that onward
disbursement of resources to woreda bank accounts, and Regional department accounts,
as per the Region’s annual cash resource plan. A copy of this letter is sent by fax to
woredas. This letter is prepared within 2 days of receipt of the communication from FSCD.

Upon receipt of the notification that MoFED has instructed the National Bank to transfer
resources and the instruction from DPPFSC, BoFED prepares a letter to the Commercial
Bank instructing the onward disbursement of resources to woreda accounts, and to
regional department accounts. This letter is sent by fax to the WOFED.

BoFED follows-up with the Commercial Bank by telephone and in person to make sure that
the money was received and sent to the woredas in a timely fashion. If there are delays,
BoFED should communicate these to MoFED, which will follow-up with the National Bank.

Step 6: WOFED follow-up with their Commercial Bank to confirm receipt of the funds in
their PSNP account. WOFED checks that the amount received in the PSNP account
matches the amount expected as per the annual cash resource allocation plan. If there are
any discrepancies, the WOFED communicates immediately to BoFED by telephone.

Step 7: The WOFED withdraws money and makes payments to clients, based on requests
from the Woreda Food Security Desk and as per the PASS payroll and attendance sheet.
Please see the payment section for a description of this process. WOFED also transfers
funds to the sectoral desks, as per the WASNP.

Step 8: WOFED maintains a record of the use of PSNP resources based on the agreed
accounting procedures. BoFEDs (and Zones) provide assistance to the WOFEDs on a
regular basis to ensure that these procedures are carried-out correctly.

Step 9: Any PSNP cash resources that are not used during the fiscal year are NOT
returned to the federal account and are instead rolled-over for use during the next fiscal
year.

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Figure 11: Financial Flow

8.3.2 Financial reports

The timely submission of quality financial reports is critical to ensuring that cash resources
flow to the PSNP as required by the Annual Plan. Financial reports trigger the
replenishment of the PSNP pooled account at Federal-level by development partners and
also determine whether or not deductions will be made to transfers from Federal to
Regional to account for carry-over balances. Because of this, it is vital that WOFEDs,
BoFEDs, and MoFED work diligently to submit quality reports on time. If IFRs are not
received on the due date and are of insufficient quality, disbursements from the
Development partners may be delayed to all Regions, until reports of adequate quality are
received. This means the entire PSNP may not function properly because of IFR quality,
and 8.3 million PSNP clients may receive late transfers. It is also important that they
communicate with the Food Security and Natural Resource Management line departments
to ensure they reach agreement on bank balances to avoid future problems.

The process for financial reporting is described below.

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Step 1: Each WOFED submits monthly financial statements and procurement reports
prepared using the agreed reporting formats to the BoFED 20 days after the month has
ended. The financial reports are produced from the existing government accounting
system.

Before submission to BoFED, WOFED should confirm with the Woreda Food Security
Desk that the amounts recorded are correct. WOFED submits a copy of the final report to
the Woreda Food Security Desk, which reconciles the financial report with the physical
progress reports (see section on M&E for more information on this).

Step 2: The BoFED consolidates and analyses the financial report it receives from the
woredas (via the Zones). The BoFED reviews the quality of the reports, ensuring that they
are complete and meet all expected standards. BoFED follows up with the WOFED if there
are discrepancies in the reports, any gaps or incomplete information. If required, the
BoFED staff will travel to the woredas to work with WOFED staff to produce a complete
report that meets the expected standards.

BoFED analyses its own records and discuses the findings with DPPFSC to reach
agreement on the balances, etc. The financial reports are produced from the existing
government accounting system.

BoFED submits the final Regional Financial Report to DPPFSC (which analyses it together
with the physical progress report) and to MoFED, as per the agreed reporting format.

Step 3: MoFED reviews the reports it receives from the BoFEDs to verify the quality and
completeness of the information and analysis submitted. MoFED then analyses the
information it receives from Regions and the accounts held at Federal level. The financial
report is generated from the existing government accounting system.

It discusses this report with FSCD. The final consolidated interim financial report is then
submitted to development partners within 60 days after the end of the quarter. A copy of
the report is also submitted to FSCD. Delays in submission or issues related to quality may
mean that future disbursements are compromised for the entire programme.

Step 4: On a six-monthly basis, the BoFED analyse the dates WOFEDs received the cash
resources to determine if there are any delays in the system and, if so, how these can be
fixed. This information is submitted to MoFED, which analyses the reports from all the
BoFED and takes steps to address any delays.

Step 5: On an annual basis, MoFED will prepare annual financial statements, which will be
submitted to development partners. This will follow the same format as the quarterly
financial reports and may include other issues.

8.3.3 Replenishment of PSNP pooled account at Federal-level

MoFED will submit the following to the World Bank and other Development Partners for
replenishment of the PSNP account:
• Interim (un-audited) financial reports (IFRs), prepared for actual expenditures;
• Withdrawal Application;
• Cash forecast for the next six months.

Any delays in the submission of these reports or the submission of low quality reports will
result in delays in the replenishment of the PSNP pooled accounts, and will therefore affect

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delivery of transfers in all Regions. In this way all regions are accountable to other Regions
for the timely delivery and quality of their IFR.

8.4 Food Logistics

The PSNP Annual Plan at Federal level has detailed information on the planned
distribution of food resources to woredas by month over the 12-month period and the
source (Government, NGO or WFP) for all of these planned transfers. These plans are the
same as those agreed between NGOs and USAID for support to PSNP. This section
describes how the food resource component of the PSNP Annual Plan is implemented.

Changes in the cash-food split can be considered during implementation but must be
approved by FSCD. If a woreda suddenly faces a change in their situation that makes their
decision to transfer cash to clients no longer realistic, the woreda may submit a request to
DPPFSC to change transfers from cash to food, specifying the requested number of
transfers to change and the reason why. DPPFSC verifies this request and, if it is
reasonable, submits it to FSCD. FSCD reviewed the request. The request is accepted only
if (i) it is reasonable, backed with sufficient evidence, and (ii) there are sufficient food
resources available in the PSNP.

All PSNP food resources are allocated from the Federal-level to woredas, with information
of the timing of the dispatch and delivery date communicated to Regions. These steps are
described below:

Step 1: FSCD submits to EWRD the annual food resource plan that outlines the amount of
food to be delivered each month, by woreda distribution site(s) and source of food
(Government, EFSRA, NGO or WFP). This is done immediately following the approval of
the PSNP Annual Plan at Federal level in July. The annual food resource plan is also
communicated to Regions and onwards to woredas, so that appropriate arrangements can
be made for the receipt and storage of the food. This is done by 15 July of each year.

Within 5 days, Regions confirm receipt of the annual food resource plan and communicate
any discrepancies between the annual food resource plan and the approved PSNP annual
plan.

Step 2: If loans are required from the EFSRA to cover all the food resources of the PSNP
in the short-term, FSCD communicates to EFSRA the schedule of the loans required.
FSCD borrows the required amount of food from the EFSRA against a guarantee of a
donor grant in food or FSCD’s planned procurement. FSCD communicates to EWRD the
schedule of loans that has been approved, and the location of these food stocks.

Step 3: FSCD requests the EWRD logistic team to dispatch the first and second month
transfer, as per the food resource allocation plan from FSCD stocks, EFSRA or WFP. This
request is copied to WFP. If there are any changes to this plan, FSCD communicates these
in writing to EWRD and WFP and submits a revised food resource allocation plan. EWRD
and WFP inform FSCD if the source of food identified is not possible (i.e. stocks are
unexpectedly low in the EFSRA). In this case, FSCD, EWRD and WFP identify alternatives
sources for the food in coordination with WFP and NGOs.

As NGOs have their own stores, they are responsible for transport and distribution through
their own channels, in line with the annual food resource allocation plan.

Step 4: Within 2 days of receipt of the request from FSCD, EWRD initiates the tender
process for Government food. WFP initiates the tender process for food resources housed
within the WFP within 2 days of receiving the request from FSCD. The tender process

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should be completed within 5 days. EWRD informs FSCD and DPPFSC/EWRD that the
tender has been awarded and the expected delivery date of the food in the woreda
distribution site. DPPFSC communicates this to the woredas. The transport company has 3
days to begin transporting food from the day the contract is awarded. The agreement with
the transport company should require delivery within 15 days from dispatch.

Step 5: EWRD communicates the food dispatch allocation plan to the hub warehouses
within 10 days of the contract agreement with transporters. WFP communicates the food
dispatch allocation plan to their warehouses within the same timeframe. The warehouses
release the food to the transporter. The warehouse manager gives two dispatch notes to
the transporter which include how many MT have been released to the transporter.

Step 6: EWRD confirms to the DPPFSC and FSCD that transfer operation has started, as
per the annual food dispatch plan or any agreed revisions to this plan. Regions pass
information to woredas, stressing the expected delivery date at the distribution sites.
Woreda assign a person to follow the progress of the food delivery through communication
with Regions. Woreda assign staff to meet the food delivery when it arrives at the assigned
distribution point. The woreda also ensures that the required staff are present at the
distribution site, such as the storekeepers and managers.

EWRD follows up and communicates with FSCD and DPPFSC if operational issues arise.
These are communicated promptly by the DPPFSC to the woredas. NGOs also
communicate to FSCD and DPPFSC if operational issues arise.

Step 7: When the transport company arrives at the distribution site, the woreda checks the
amount of food delivered, the quality and reports the date by which the full allotment
arrived. Woreda warehouse operators verify that the amount received from the transporter
matches their official allocation. If correct allocation has been received, transporter submits
two receiving notes to the warehouse staff for approval and signing. If a woreda distribution
site has not received the intended amount, losses are identified and immediately reported
to the DPPFSC, be this a Government-, WFP- or NGO-supported area.

If there are any shortfalls in the amount received, this is investigated immediately by the
DPPFSC, EWRD and FSCD. Additional food is dispatched immediately from Federal level
to cover any shortfall to ensure that clients receive the full transfer as expected. If possible,
this shortfall may be covered by any food contingency budget at woreda and/or Regional-
level.

Step 8: Woreda warehouse staff writes comments on the receiving note presented by the
transporter. The transporter will then submit the receiving note to the woreda. If correct
allocation is received by warehouse, woreda stamps receiving note submitted by
transporter.

One receiving note is kept by the woreda for their records while the other is returned to the
transporter for submission to EWRD logistics case team for payment.

Woredas distribute food to clients within 7 days after food is delivered to woredas. Please
see the section on Payments for this process. Any carry-over food stocks should be
communicated to the DPPFSC and to FSCD.

Step 9: EWRD notifies FSCD when the transport company has completed the food
delivery. NGOs notify FSCD when their food deliveries are complete. This includes
information on the date the food arrived in the woreda distribution site and the total
resources delivered. If any food has been misallocated, EWRD or NGOs notify FSCD of
this and initiate an investigation. FSCD verifies this information with the DPPFSC. If the

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information of the DPPFSC differs from that of EWRD, FSCD requests DPPFSC, EWRD
and NGOs to verify their information. If discrepancies remain, FSCD investigates.

Step 10: The transporter submits receiving note to EWRD logistics case team. EWRD
releases the performance bond back to transport operator if amount allocated and amount
received is matching. EWRD then pay the transporter only if the correct amount of food is
delivered to woredas, as per the agreed schedule.

Step 11: If food diversions were reported at any point in the food delivery process, EWRD
is responsible to investigate these reports. After food is received at warehouses, woredas
are responsible for following up food diversions.

Step 12: Food resource dispatch, delivery and payments are reported monthly, as per the
agreed reporting format. NGOs submit this report to USAID and USAID to FSCD. Woreda
Food Security Desk reports on food delivery and payments to the DPPFSC on a monthly
basis, which in turn reports to FSCD monthly. FSCD analysis this data as compared with
that received from EWRD and WFP on food dispatch and delivery and prepares an overall
report.

8.5 Implementation of Public Works

8.5.1 Public Works Implementation Procedures

Public works will be implemented as follows:

a) Timing

Public works must not undermine normal agricultural activity and therefore the bulk of
public works projects should take place during the agricultural slack season to avoid
interfering with the peak period of labour demand in the agricultural cycle.
• The majority of public works will therefore take place during the dry season. Public
works can be undertaken at other times of year. These should be on a reduced scale
so as not to compete with the need for labour in agriculture and should be technically
feasible in wet conditions.
• Since the dry and rainy seasons occur at different times in different parts of Ethiopia,
Public Works timing is planned locally at woreda level as explained in section 7.2.4.
Other than the principles outlined here there are no restrictions on Public Works timing.

b) Allocation of labour days at the household level

The procedure for defining labour days for each client household is conducted at the
planning phase during the targeting process, and is described in section 6.2. The
procedures for payment of days of labour are presented in 8.6 below.

c) Non-labour costs

Non-labour costs such as consumables, administration, hiring foremen/women, and capital

items are set as a percentage of the transfer budget as described in Chapter 4:

8.5.2 Public Works Labour Organisation

a) Key points concerning labour organisation

• Labourers are organised in work teams, and work is assigned to teams not to
individuals.

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• Teams elect their own team leaders; the implementing agency appoints site personnel
and, where necessary for a large project, foremen/women.
• The WOARD/ Woreda Food Security Desk establishes labour rules; the responsible
woreda desk and/or DA fixes the number of hours to be worked; labourers and the
agency agree on hours of starting and finishing.
• Disciplinary problems are dealt with within teams, wherever possible. The kebele
disciplinary body decides on serious cases, including dismissals.
• The CFSTF should periodically monitor the Public Works to ensure that they are
undertaken as prioritised by the community.
• Any concerns or problems noted should be raised in the first instance with the KFSTF
or the woreda line offices.

b) Formation of work teams and work units

• For efficient coordination and management of works, public work labourers will be
organised in work teams and, where necessary, the teams into work units. This will be
done by the implementing agency (i.e. woreda desks), the DAs /site manager,
foremen/women and other experts, in close consultation with the Kebele/Woreda
Cabinet.
• Public work is assigned to teams and the sharing of work within the team is the
responsibility of the team leader. Work is not contracted to individuals. Generally, a
team will consist of 15-30 labourers, the actual number being determined locally by
taking into account the nature of the work, the work culture of the people, and the type
and availability of hand tools. Some activities such as childcare may require only one or
two workers. Each team will elect its own team leader with women encouraged to take
leadership roles.
• Based on the breakdown of work activities and the skill requirements for each type of
work, specific teams can be assigned for specific types of work. Teams can be shifted
from one activity to another within a sub-project, or between sub-projects managed by
the same line department in the same area, in order to facilitate the works and the
sharing of employment opportunities.
• Where necessary to facilitate the overall management of large numbers of workers
within a single large-scale project work team can be grouped together in work units,
each coordinated by a foremen/women. This can also facilitate the distribution and
management of resources when a project is operating in a number of scattered sites.
Where needed, a labour unit would generally consist of 5 to 10 work teams.
• Most projects, therefore, will have team leaders, a chief artisan, a DA or site manager
and, occasionally, guards. In a large project, foremen/women may be required and an
assistant to DA/site manager may also be assigned. An implementing agency
supervisor would normally provide technical and managerial guidance to community
projects.

c) Composition of Work Team

• Teams can be formed by grouping selected clients who reside in the same
neighbourhood, are from nearly villages or are close relatives, or on the basis of
traditional (e.g. Clan) groupings. This helps to ensure cooperation within teams, such
as covering each other’s tasks willingly when some are unable to attend, monitoring
each others’ attendance, and ensuring that each other arrive at work on time.
• Each work team should have a fairly balanced composition taking into account gender,
age, skill ability and strength. Women can be part of mixed teams or form their own
teams. They can also be team leaders.
• Orientation on the fundamental principles of Public Works, cooperation, participation,
and Safety Net precautions should be given to all public work labourers before starting
work.

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d) Duties and Responsibilities of Team Leaders and Supervisory Personnel

Team leaders chosen by each team should be motivated, literate and have some
knowledge of record keeping. A team leader:
• Controls, monitors and records the attendance of the team members;
• Demonstrates ability in all aspects of the work to be done by the team;
• Gives advice on safety measures to be taken by labourers;
• Distributes and arranges for the maintenance and repair of hand tools, and the
collection and storage of them at the end;
• Records attendance and reports weekly to the foremen/women on attendance, work
accomplished, and the amount of wages to be paid to each labourer; and
• Reports disciplinary problems in the team to the foreman/women.

Where required for a large-scale project, foremen/women are recruited by the

implementing agency. They should have good organisational skills. A foreman/woman:
• Directs, coordinates and monitors works undertaken by all teams in the unit;
• Supervises the team leaders, providing advice and guidance to them;
• Checks and approves the attendance list of labourers and persons-days accomplished
as reported by each team leader;
• Compiles these into a report for the unit and sends it to the DA/site manager for final
approval and payment of wages; and
• Refers any disciplinary situations which he/she cannot resolve to the DA/site manager.

A site manager is a technical person from the implementing agency and is responsible for:
• Supervising and providing technical and managerial guidance to the team leaders and
the foreman/women involved in the project;
• Ensuring the satisfactory completion of works according to the work plan and approving
the outputs of each team and the payment of labourers;
• Issuing warnings to labourers reported for discipline problems, informing the
implementing agency, and referring serious cases to the kebele Council/Cabinet or
KFSTF;
• Performing other tasks given to him by the supervisor.

An assistant site manager is responsible for coordinating activities, and managing food and
non-food resources in the project. He/she would report to the site manager on work outputs
and use of resources. Women should be encouraged to take leadership positions.

A supervisor is assigned by the implementing agency, makes periodic (at least weekly)
visits to all work sites, and can be assigned to more than one project. He is responsible for
the overall technical, administrative and managerial performance of the project/s and
provides guidance to the site manager and other on-site staff.

8.5.3 Labour rules

The Woreda Office of Agriculture and Rural Development (WOARD), in consultation with
the KFSTF, Kebele councils/cabinets, the DA and other implementing agencies, defines
the rules with respect to labour organisation in general, and disciplinary measures in
particular. The WOARD, in consultation with the above entities, may amend these rules
from time to time, as necessary.

The WOARD will guide and monitor the system of labour organisation in Public Works, and
ensure a consistent overall approach while allowing for local flexibility.

The implementing agency in consultation with WOARD will establish:

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• The number of hours to be worked per day and per week; and
• The overall organisation structure (organogram) and number of foreman/women and
other supervisor personal required.

Work can be for a full day or a half-day, depending on local conditions. Work can be
undertaken on a shift basis within a day (one set of workers in the morning, another in the
afternoon) depending on the need of clients and the resumption of agriculture activities.

The work requirements of women can be reduced to response to their responsibilities for
reproductive labour, such as cooking and caring for children. Women can work a shorter
day than their male counterparts for the same daily wage rate (i.e. come late and leave
early). Women may also work fewer days than men for the same monthly wage rate.
Women can also be assigned activities that are less physically demanding.

Before work commences, the implementing agency and the labourers, or representatives
of the work teams in the presence of the representatives of the kebele task force council,
will agree on:
• The actual hours of work (hours of starting and ending work each day) for male and
female workers;
• The number of days needed for complete a project, and the public and local holidays to
be observed (except for special functions, such as guarding);
• Frequency of payment;
• Arrangements to ensure that children will not be present at or working on public works
sites (see Amenities at work sites and regulation that children below 16 years of age do
not work on PSNP public works); and
• Other practical aspects related to labour organisation.

Box 6: Examples of Items to be included in Public Works Labour Rules

Labourers working in Public Works must meet the basic eligible criteria for the PSNP
and agree to undertake the various types of work required at the established wage rate:
10 birr or 3 kgs of cereals per person-day of work accomplished. Payment will normally
be on a task rate basis calculated on the basis of established work norms.

Each labourer will work the number of hours agreed between the implementing agency
and representatives of the work teams in the presence of members of the Kebele
Cabinet.

Children are not expected to participate in public works; any children sent will be
immediately sent home and a day’s payment forfeited (unless an adult from the same
household makes up the missed day).

Labourers will bring sufficient drinking water for their own use to the work site

Any labourer who is absent without valid reason, sends an ineligible family member
(see Box 7 below) as a labourer cheats or disrupts the work, or loses or damages tools
through wilful neglect, will be publicly warned and reported to the KFSTF. If the
problems continue, the labourer will be dismissed and excluded from any further work.

Wages will be withheld from any labourer who loses any tool provided by the agency
until he/she finds and returns the tool. If the tool is not returned, the equivalent value will
be deducted from his/her wages.

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8.5.4 Attendance and Discipline

Attendance of labourers will be taken twice a day generally before starting the morning and
after completion of the day’s work. Copies of the attendance records will be forwarded to
the foreman and the DA/Site manager. The attendance of the labourers should be strictly
checked by the DA/site manager, foreman and Task forces. In recording attendance, the
foreman, and DA/site manager should assess the eligibility of the participant to participate
in public works (see Box 7), and reject attendance by those who are ineligible.

Box 7: Household Members ineligible to participate in public works

• Children (under the age of 16)

• Elderly (over 55 years old)
• Physically disabled
• Mentally disabled
• People temporarily unable to work including:
• Women from the sixth month of pregnancy
• Lactating mothers in the first 10 months after birth
• People who are sick

If participants arrive for work but are prevented from working by factors outside their control
(e.g. delays in the delivery of required public work materials) participants should receive
100% of the transfer for that day and do not have to work for it. It would be necessary to
reduce the output of the works due to a proportion of the funds spent on non-productive
time.

Disciplinary problems will be solved within the work team or unit as much as possible. The
existing disciplinary body of the kebele council, in consultation with the concerned line
departments, will approve disciplinary measures including dismissals.

8.5.5 Public Works Verification Process

Basis of payment: Wage payments are made on the basis of attendance, quantity and
quality of work completed as determined by the DA and Kebele Chairperson, in
consultation with the foreman/woman, based on the standards set out in the CBPWD
Guideline.

Technical Assessment: Technical assessment is carried out at verification stage by DAs

or woreda experts, supported by backstopping from zonal or regional experts if necessary,
depending on the type of activity. However, payments to clients do not depend on technical
approval of the works by a woreda/zonal/regional expert.

Correcting defects:
• If a defect is identified by a regional, zonal or woreda expert in terms of quantity or
quality of the works during the implementation, the defect is corrected by the
community during the following month. If this was due to a planning or technical errors,
this is counted as additional work days for which PSNP clients are paid.
• If, after completion of an activity, a regional, zonal or woreda expert identifies defects in
terms of quantity or quality of works, the community, with the support of the DA, can: (i)
complete the works on a self-help basis; (ii) apply to the woreda for contingency funds

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 to complete the works; or (iii) include the outstanding works in the safety net plan for
the following year.

8.6 Payment procedures

8.6.1 Introduction

A core principle of the PSNP is that payments to Public Works and Direct Support clients
are timely and predictable. This means that all payments are made to clients within 6
weeks after the end of the month when the public works were completed. To be
predictable, payments are made regularly, that is, payments are made at the same time
each month or within a set period after public works are completed. To be predictable,
clients must also be aware of when the payment will be made, where it will be made and
how much it will be in cash or food. Any and all delays in the payment process MUST be
communicated as soon as a possible to clients.

PSNP cash transfers flow directly through MoFED to BoFED and then WOFED based on
requests by the Food Security line agencies (see 8.3). PSNP food transfers follow the
processes established for emergency response through Government, WFP or NGO
systems (see 8.4) to local distribution sites or warehouses, where food is received by the
storekeeper and held until payment day.

For public works participants, payments are made on the basis of attendance, quantity and
quality of work completed as determined by the DA and kebele chairperson, in consultation
with the foreman. However, should there be delays in public works arising from
administrative problems, such as interruptions in planning or procurement, payments to
clients are not delayed. Payments to direct support clients are made monthly regardless of
the status of public works payments.

8.6.2 Use of PASS

Use of the payment software – PASS - is mandatory in all PSNP woredas in Amhara,
Oromiya, SNNP and Tigray Regions, including those supported by NGOs. WOFED will
always use the PASS to prepare the attendance sheet and payroll. Should the PASS
malfunction, WOFED, in coordination with the WOARD, will contact the IT Helpdesks at the
Regional level for assistance. However, payments to clients should not be delayed if these
problems persist. In this case, attendance sheets and payrolls can be prepared in Excel.
Once PASS is up and running, the information from Excel will be entered into PASS. The
Excel file with the record of clients receiving their payment (through signing or thumbprint)
will be kept on file for future reference.

PSNP client cards provide the basis for all transfers to clients. They record the names of
the people entitled to receive transfers, and the size of their entitlement. See 7.2.3 for more
information.

8.6.3 Types of payment

PSNP clients are paid in food or cash and all clients are always paid the same wage. The
type of payment(s) that will be made in each woreda is determined in the planning process.
Each woreda will know before implementation begins if PSNP payments will be made in
cash, food or food and cash. For food and cash, this combination of payments may cover
different groups of people at the same time (some kebeles receive food while other receive
cash). This is called a geographic cash-food split. In contrast, other areas may receive

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cash payments for all clients followed by food payments, often cash for three months
followed by food for three months. This is called a temporal cash-food split.

The Woreda Food Security Desk (WFSD) in coordination with WOFED posts the approved
disbursement of cash and food payments, by month, in central locations in each kebele so
that clients and implementers know what kind of payment to expect and how much it will
be. This information is also communicated to clients through village meetings and other
events.

If the type of mix or timing of payments changes during the year, this is clearly
communicated by the WFSD and WOFED to kebeles and a revised disbursement schedule
will be posted to replace the original disbursement plans.

In some woredas, in particular USAID-supported NGO woredas, clients may receive oil and
pulses in addition to their grain transfers. This is not an entitlement but an additional
benefit, which depends on resources being available, and may be withdrawn when
resources are not available.

8.6.4 PSNP Attendance Sheets preparation

Payments to Public Works clients are made on the basis of attendance, quantity and
quality of work completed as determined by the DA and Kebele Chairperson, in
consultation with the foreman.

a) Attendance at public works sites

The foreman/woman records the attendance of Public Works labourers twice a day
generally before starting the morning and after completion of the day’s work. The workday
is generally no more than 8 hours, and may be less for women.

Each week, the foreman/woman gives the attendance sheet to the site manager or DA,
whoever is responsible for the public works site. The DA, site manager and Community
Food Security Taskforce monitors attendance at public work sites and checks the
attendance sheet.

If participants arrive for work but are prevented from working by factors outside their control
(e.g. delays in the delivery of required public work materials) participants should receive
100% of the transfer for that day and do not have to work for it. The planned public works
input for that group of people for the month is reduced accordingly. This is done by the DA
and communicated to the Woreda Food Security Desk.

b) Public Works: Verification Process

Technical supervision of Public Works projects is carried out by woreda, zonal or regional
experts depending on the type of activity. These experts remain accountable for the quality
of Public Works. However, payments to clients do not depend on technical approval of the
works by a woreda/zonal/regional expert.

The attendance sheet for each public works project is collected by the responsible DAs and
submitted to the KFSTF. These are approved by the KFSTF and submitted to the Woreda
Food Security Desk. At the same time, the KFSTF informs communities that the
attendance sheets have been submitted for processing and that payments should be
expected within 10 days.

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8.6.5 PSNP Payroll preparation

The Woreda Food Security Desk enters the data on attendance into the Attendance Sheet
of PASS. If problems with the attendance sheet are noted, the Woreda Food Security Desk
requests clarification from the Kebele Food Security Taskforce.

The Woreda Food Security Desk records the entitlement of unconditional transfer clients.
The Attendance Sheet for both Public Works and Direct Support clients is then transferred
to WOFED in electronic form as required by PASS.

WOFED then enters the attendance sheet data into PASS and generates the payroll for all
Public Works and Direct Support clients. The WOFED then sets the payment schedule,
depending on when transport, security and staffing can be arranged. Priority should be
given to ensure that the payments are made as per the performance target.

The WOFED then communicates to the kebeles the payment schedule for cash and food
payments. The aim is to minimise the amount of time clients will have to wait to receive
their payment. If the WOFED can, it should indicate the time at which payments will start in
each payment site and the list of households that will be paid in the morning and then in
the afternoon. This will allow the households to come in the morning or afternoon rather
than waiting the whole day. If a household misses its payment time, it can collect the
payment at later during the payment process.

8.6.6 How are payments to clients made?

For cash payments, the WOFED cashier and accountants then collect the cash from the
bank to make the transfers and travels to the payment sites. Payment sites are as close to
clients as possible, at least in the kebele centre and ideally in the communities.

The WOFED should mobilise sufficient cashiers and accountants (those working both on
PSNP and the regular government program can be mobilised) to make the payment
process as fast as possible to meet the agreed performance target.

For food payments, food resources are delivered to distribution points and clients are
asked to assemble at these points. The payments are made against the PASS payroll and
attendance sheet prepared by the WoFED. Payments may be made by the WoFED or the
Woreda FS Desk staff.

The actual payment process follows that for cash payments. The cashier will have the
PASS list on hand to verify that the Client Card ID number matches the PASS ID number
corresponding to the client’s name. The cashier will also verify that the photo on the Client
Card is a match to the person presenting the Card.

After the identity of the client is verified, the cashier pays the clients the total payment due
to his or her household, including both Public Works and Direct Support payments. For
polygamous households, each household is paid separately. For divorced households, the
man and woman are paid separately (see 3.2.3).

The cashier asks the client to sign on the PASS payroll to indicate receipt of payment.
Immediately afterwards, the cashier will enter the PASS generated data onto the Client
Card corresponding to:
• Public works days worked or direct support days eligible
• Transfer: type and amount
• Date transfer is received

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Clients will not receive their payments if they do not present their Client Card to the
cashier. If a client does not have their card, the client and cashier will mutually agree if: (i)
the client will travel to the woreda capital to collect the payment from WOFED, (ii) if the
cashier will return at a later day that month; or (iii) if the payment will be made during the
next payment cycle. The cashier should, to the extent possible, assist the client to receive
their payment as soon as possible. The cashier makes a note of the agreement reached
with the client.

If a client is unable to collect his or her payment, such as an elderly or disabled Direct
Support client, someone else may collect the payment on his or her behalf. This should be
agreed with the Community Food Security Taskforce. The CFSTF then informs the KFSTF,
which informs the cashier that this arrangement has been made.

If the client feels that he or she did not receive the correct payment, they should NOT sign
the payroll and should instead ask the cashier to verify that the payment is correct. If this
does not resolve the problem, the client can lodge a complaint with the Appeals
Committee. The Appeal Committee then investigates within 5 days.

Under NO circumstances should clients be asked to pay from their PSNP payment any
costs associated with the payment process, such as having their identification verified, their
Client Card checked or their name found on the PASS payroll. All payments to PSNP
clients MUST be made in full, as stated in the PASS payroll.

If the kebele of woreda officials believe that elders should be asked to verify the identity of
PSNP clients, for example, and that they should be paid for this service, this payment
should be made from the administrative budget of the PSNP NOT from clients.

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Chapter 9: RISK MANAGEMENT PHASE

9.1 Introduction .............................................................................................................. 167

9.2 How do I use the woreda Contingency Budget? ....................................................... 167
9.2.1 To address new chronic food insecurity in the woreda ....................................... 167
9.2.2 To address transitory food insecurity in the woreda ........................................... 169
9.3 How do I use the Regional Contingency Budget?..................................................... 169
9.3.1 Components of the Regional Contingency Budget ............................................. 169
9.3.2 Steps for use of the Regional Contingency Budget ............................................ 170
9.3.3 How is the Contingency Budget allocated and used once a decision is made to
release funds? ............................................................................................................... 174
9.3.4 How is targeting for the Contingency Budget conducted? .................................. 174
9.3.5 How are resources transferred and payments made? ........................................ 175
9.3.6 How are Public Works carried out? .................................................................... 176
9.3.7 How is the use of the Contingency Budget reported?......................................... 176
9.3.8 Transitioning to the Risk Financing Mechanism ................................................. 176
9.3.9 What if the contingency is not used by the end of the year?............................... 176
9.4 What is the Process for the Risk Financing Mechanism? ......................................... 177

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CHAPTER 9: RISK MANAGEMENT PHASE

9.1 Introduction

The food insecure woredas in which the PSNP works are prone to shocks of various kinds,
such as drought, flood, and weather and price shocks. In addition, very poor people such
as those who are PSNP clients, often have very vulnerable livelihoods in which not
everything always goes according to plan.

For these reasons the PSNP programme cycle contains a risk management phase, which
allows the PSNP to adapt to these circumstances that we know will happen, rather than be
caught by surprise or rely on other mechanisms which may not have the same flexibility
and responsiveness as the PSNP. This enables the PSNP to take actions which will protect
programme objectives of guaranteeing food security and preventing asset loss for both
chronically and transitorily food insecure people in food insecure woredas.

As described in section 4.3, the PSNP has two primary mechanisms for managing risk,
which are internal to the programme:
• The PSNP Contingency Budget, and
• The PSNP Risk Financing Mechanism

As described in section 4.3, the Contingency Budget has two components:

• The Woreda Contingency Budget, which represents 5% of the total PSNP cost and is
governed by woreda-level decision-making. This focuses on both additional chronic
needs and transitory needs as identified at woreda level; and
• The Regional Contingency Budget, which represents 15% of the total programme cost
and is governed by Regional-level decision-making. This focuses only on transitory
needs.

The Risk Financing Mechanism focuses only on transitory needs, and provides additional
resources if the Contingency Budget is insufficient to address transitory needs in PSNP
woredas. The main difference is that the RFM is governed by Federal-level decision-
making.

This section outlines the processes by which both the Contingency Budget and Risk
Financing Mechanism are used in practice, drawing on the background information
provided in section 4.3. The information on the functioning of the Contingency Budget
provided here is the only comprehensive description on the CB. However for the Risk
Financing Mechanism there is an accompanying set of Risk Financing mechanism
guidelines which provide more detailed information on how the RFM works. They should be
used by readers needing to access and manage the Risk Financing Mechanism.

9.2 How do I use the woreda Contingency Budget?

The woreda contingency budget can be used for two purposes:

• To address new chronic food insecurity needs in the woreda, and
• To address transitory needs in the woreda

9.2.1 To address new chronic food insecurity in the woreda

There are circumstances under which households may become unable to support
themselves. These include:
• When a misfortune affects the household, such as a sickness, injury, or death which
causes the household to dispose of key livelihood assets

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• When the household loses assets as a result of a shock
• When new households are formed without sufficient assets to make a viable livelihood.

There are also circumstances where eligibility for PSNP is established only after the annual
targeting process. For example following a successful appeal for unfair exclusion for
someone who fulfils entry criteria but was excluded from the PSNP.

When this happens, the household is likely to need some support from some source,
whether through the local community, through the emergency system, or through the
PSNP. The PSNP annual retargeting exercise in preparation of the Kebele Annual Safety
Net Plan may recognise these households and add them to the programme if it is able to,
as part of the ‘annual adjustments’ described in the PSNP coverage formula described in
section 3.2.

This may happen when:

• The need arises before the targeting process,
• There is space in the budget allocation to the kebele to add other members, for
example if other households who were PSNP clients have graduated,

However this is not always possible. For example where:

• The need arises after the targeting process, or
• The budget allocation to the kebele for PSNP clients is at its maximum

In these situations, the woreda 5% PSNP Contingency Budget can be used. This budget
can be used to add the household temporarily to the PSNP client list, in addition to existing
PSNP clients. The household then remains on the client list until the next annual
retargeting exercise reviews the decision as to whether the household should:
• Be added to the chronic caseload if budget and prioritisation permits
• Continue on the temporary PSNP client list using woreda 5% Contingency Budget
resources if there is no room in the regular caseload, or
• Leave the PSNP client list

To use the woreda 5% Contingency Budget in this way, the following steps are taken:

If the need is identified prior to the annual retargeting process:

1. The Community Food Security Task Force assesses whether, following completion of
the targeting exercise, there is sufficient space in the budget to add further households to
the client list. See section 6.2 for further detail on this process.

2. If there is adequate budget then the household(s) is/are added to the regular PSNP
client list.

3. If there is no space in the budget, then the Community Food Security Task Force makes
an appeal to the Kebele Food Security Task Force to use the woreda contingency budget
on the basis that its participant list is higher than the baseline because new chronic food
insecure households have been identified. This happens when new chronic needs are
identified before the targeting process and there is no space in the regular budget to add
new clients.

4. The claim is checked and verified by the KFSTF.

5. The KFSTF submits a request for contingency funds to the WFSTF.

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6. The WFSTF and WOARD verify that the Kebele request is valid.

7. The WOARD submits the request for approval to the Woreda Council.

8. The Woreda Council approves the request and authorises release of the appropriate
quantity of funds from the woreda 5% Contingency Budget.

The use of the woreda Contingency Budget for the purposes described above is NOT
verified by the Region. The woreda should, however, carefully record the reasons for the
use of the woreda budget and submit this together with the early warning data to the
Region (see section B below).

If the additional chronic need is identified in the community after the targeting process and
budget has been allocated, the appeal process is the appropriate mechanism to investigate
the issue (see section 6.2 for further detail).

9.2.2 To address transitory food insecurity in the woreda

On occasions shocks may affect a kebele or woreda and immediate remedial action is
required. In the past the emergency response system has been used to play this role. The
PSNP has resources through the woreda 5% Contingency Budget to mount a limited and
flexible response in PSNP woredas only, in two situations:
a) When the shock is of limited duration and extent, and the 5% woreda Contingency
Budget is adequate to cover the needs
b) When an early response is needed while arrangements for a larger response are put in
place.

In these situations, the following steps are taken:

Please read the section below on ‘How do I use the Regional Contingency Budget’ and
refer to the sections that discuss processes at woreda level only (Steps 1 and 2).

1. The Community Food Security Task Force makes an appeal to the Kebele Food
Security Task Force that a response to transitory food insecurity is required.

2. The claim is checked and verified by the KFSTF.

3. The KFSTF submits an urgent request for contingency funds to the WFSTF.

4. The WFSTF and WOARD verify that the Kebele request is valid.

5. The WOARD submits the request for urgent approval to the Woreda Council.

8. The Woreda Council approves the request and authorises release of the appropriate
quantity of funds from the woreda 5% Contingency Budget.

9.3 How do I use the Regional Contingency Budget?

9.3.1 Components of the Regional Contingency Budget

The Regional Contingency Budget is calculated at 15% of the overall PSNP budget and is
exclusively used for transitory needs, whether for existing PSNP clients, or for new
transitory cases among non-PSNP clients in PSNP woredas. Up to 10% of the PSNP

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Regional Contingency Budget can be used to address transitory needs among non-PSNP
clients.

The Regional Contingency Budget (and the woreda contingency budget for transitory food
insecurity) follows different rules and procedures from the woreda 5% Contingency Budget.
The processes used are similar to those used for the Risk Financing Mechanism. Like the
Risk Financing budget, the PSNP Contingency Budget uses the PSNP systems and
processes. However, to respond to transitory needs, two additional components are
required in addition to the contingency fund. These are:
• The Early Warning System
• PSNP Contingency Plans

These two components are discussed in detail in the RF Guideline. They are defined briefly
below.

Early Warning System: Use of the Contingency Budget at Regional level, but not at
woreda level, is driven by the Early Warning System (EWS), which also drives the use of
the RFM. The use of the EWS for both the Contingency Budget and RFM ensures that the
two mechanisms work in harmony and in a sequenced fashion, which is what they are
intended to do. The EWS for the RFM, which the Contingency Budget also uses, utilises
and integrates a number of data sources that already exist. The principle source of primary
early warning data derives from the revised EWRD EWS. This system works through data
collection at the Kebele level, which is collected at the woreda level, sent on to the
Regional level for further collation and analysis and finally transmitted to the Federal level,
where it is combined with other data sources and further analysed.

Contingency Plans: In the context of Risk Financing, contingency planning is a process of

having a set of precautionary measures that should be taken in PSNP woredas where
transitory food insecurity is anticipated. It is meant to allow efficient, effective and equitable
use of resources to appropriately meet potential humanitarian needs while at the same
time protect livelihoods of the people in PSNP woredas. Contingency planning allows
advance preparation and expedites programme implementation as soon as the EWS
confirms the likely occurrence of shock(s) and the release of Contingency Budget
resources.

The RF Guideline also considers how to ensure that there is sufficient implementation
capacity in place to deliver timely transfers to transitory food insecure households. This
PIM does not consider this in detail. However, should the increase in PSNP clients due to
transitory requirements stretch existing capacity, the woreda and Region should take pre-
emptive measures to ensure that transfers continue to be delivered on time. This could
include: (i) reassigning staff between kebeles and woredas; (ii) sending Zonal or Regional
staff to support implementation; (iii) hiring additional contract staff through the
administrative budget provided through the Contingency Budget. For a more detailed
discussion of possible capacity related issues, please see the Risk Financing Guideline.

9.3.2 Steps for use of the Regional Contingency Budget

The following steps are to be followed to manage transitory needsxxxi:

Step 1. How are Early Warning data collected and analysed at woreda level?

Data are always collected between the 10th and the 15th of each month by the DAs from
Kebele level using the sampling methods and a standard recording form. The types of data

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collected must conform to the revised formats that have been passed down to the EWTF.
The data is passed on to the Woreda EWTF by the 17th of the month.

The Woreda EWTF uses the DA recording form to fill in the revised early warning format
and conducts a ‘light analysis’ by summarizing the data using a standard hardcopy chart,
and interpreting the significance of the data in terms of PSNP transitory needs. If the early
warning data shows that the food security situation is deteriorating, it should include an
analysis of:
• The extent and severity of any shock
• Early estimates of numbers and the location of people who could become transitorily
food insecure as a result of the shock
• The likely timing of the shock
• This is sent on to the Woreda Council where it is authorised and verified if required
(usually only if a resource decision is needed). The data format is completed,
authorised, and sent to the Regional level by the 20th of each month.

The interpretation of early warning information is a mandatory part of the data format, and
is designed to make sure that transfer of early warning data up the administrative system
does not become bureaucratic. Rather, the data should be used at the Woreda level for
planning and, within the PSNP context, to forward-plan when the Contingency Budget held
by the Region will be required, and make the necessary justification for its release.

Step 2. How are the data used to make decisions on resources at the woreda level?

If the woreda EWTF is concerned that their analysis of the EWS data shows a negative
situation is emerging, such as the onset of drought, and that households will be negatively
affected, they must include this assessment in their report to the Woreda Council. This
should include an assessment of the number of people affected and the duration of support
required. The EWTF should contact the WFSTF to determine how much of the woreda
contingency fund remains unspent. This information should also be included in the report to
the Woreda Council.

The Woreda Council then verifies this assessment to determine the actual need in the
woreda. Woreda committee considers whether the woreda Contingency Budget needs to
be allocated, and if so how long it will last. If additional resources are also required, the
Woreda Council includes a request for contingency funds from the Region. This is sent as
part of the early warning report to the Region.

Having submitted a request to the Region, the woreda should continue to assess the
emerging situation through the EWTF using the regular EWS procedures. This will assist
with forward planning on the need for further assistance from the Region’s Contingency
Budget and possible shift to the Risk Financing Mechanism and, if needed, emergency
system. This will mean that PSNP transfers can continue without any gaps. Remember,
drawing down on funds held at the Region and Federal levels takes some time, even in
emergencies.

Step 3. How is woreda-level data put together at the Region?

The data being sent up from the woreda level are entered into the EW-DBS which is
shared between Region and Federal early warning staff. Initial processing (cleaning,
review) is done by data processing specialists and verified by the early warning analyst.
Data are compared to other available data sets at the Region (CSA market prices, NMA
rainfall, etc) to check quality. Wherever necessary, follow-up is made with woredas to

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modify the data. Data from agencies working in the Region should also be included in the
overall data analysis if appropriate.

Step 4. How are the data analysed at the Regional level?

The cleaned and verified data are used to produce automated outputs. Key parameter data
that have been pre-identified for each broad Livelihood Zone are exported from the EW-
DBS into Livelihood Impact Analysis Sheets (LIAS) in the same way that seasonal
assessment data is input. The LIAS spreadsheet will calculate the household economy gap
that is relevant to the current situation and calculates numbers of people falling under the
livelihood protection threshold. Predictive scenarios are also entered into the spreadsheet
to develop most likely future scenarios based on time series analysis and extrapolation,
taking into account normal seasonal variation. As much as possible, LIAS outputs are
triangulated against other data sources, such as qualitative data (relative rainfall
observations, crop performance, livestock condition etc) to increase the confidence in the
analysis. LIAS results are stored for historical reference. The results from the LIAS need to
be verified by the woreda if inconsistencies arise.

Step 5. How is the analysis used to make a decision on resource use at Regional level?

The Regional Early Warning department drafts a report detailing the analysis of woreda
data, together with an interpretation of the current and future food security situation in the
Region as a whole. Particular areas of concern should be highlighted as part of this
reporting procedure. If a situation is arising for which households will require assistance,
the Regional Early Warning Department identifies:
• The extent and severity of any shock
• Early estimates of numbers and the location of people who could become transitory
food insecure as a result of the shock (from the LIAS analysis)
• The likely timing of the shock

This information, together with the estimated budget for this support is included in the
report. The estimated budget is based on the estimated number of clients to be covered by
the Contingency Budget, including PSNP clients under the regular Programme that require
additional transfers. This figure is then used to calculate the budget based on the formulas
of the regular budget (i.e. 80% transfers, 15% capital and 5% administrative budget).

The Regional Early Warning and Response Core Process should also include an overview
of how the Regional Contingency Budget has been used or committed to date, which it
receives from the Regional Food Security Section.

Regional Reports are prepared and sent on to the Federal Level by the 25th of each
month. In the case of a situation arising that requires specific action involving resources
(such as utilising the Regional Contingency Budget), the report may need to be authorised
by the Regional FSP Steering Committee (see below). The report submitted to the Federal
EWRD, with a copy to FSCD, should always include an overview of the status of the
Regional Contingency Budget.

Step 6. How does the analysis trigger the use of the Regional Contingency Budget?

The Regional FSP Taskforce analyse the report from the EWTF in terms of implications for
current and future PSNP requirements. The key question here is: “will the current and
expected transitory needs (if any) be met by the Contingency Budget held at Regional
level?”

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Based on the analysis the Regional FSP Steering Committee authorises the release of the
Regional Contingency Budget for those woredas that are negatively affected. If both cash
and food resources are available in the contingency fund, the Regional FSP Steering
Committee decides which of these resources, or the combination of resources, will be
used. In most cases, only cash resources will be available. Once released, these resources
are channelled to woredas in the same way as regular PSNP resources. These cash
resources cannot be used to purchase food or fertiliser at Regional level for distribution in
woredas.

If no Regional Contingency Budget is available or it is insufficient to meet the projected

transitory needs, the Regional FSP Steering Committee needs to put together a request to
the EWRD at Federal level for additional resources from the Risk Financing budget. This
needs to be comprehensively justified by the early warning analysis from the EWTF report.
It must also include an overview of how the Regional Contingency Budget has been used,
including the supporting justification for this use. The request is submitted to the Federal
EWRD, with a copy to the FSCD.

Once this request is submitted to Federal level and Regional Contingency Budget
released, as possible, the Region must continue to monitor the evolving situation through
regular early warning procedures. This will allow the Region to make additional requests to
the Federal level for Risk Financing budget, as required, on a timely basis.

What is the role of the Zone?

The importance of the Zonal administrative level varies between Regions. Because of this,
this PIM does not include the Zone in the overall flow, compilation or analysis of data.
However, for Regions in which the Zone is important, it may be necessary to include an
additional level of compilation of Woreda level data before being sent on to the Regional
level. This may mean incorporating additional time into the overall period between data
collection at the Kebele level to receiving the information at the Regional level. However, it
remains the responsibility of the Regional EWTF to ensure that data is received at the
Regional level by the 20th of each month and submitted to the Federal level by the 25th of
the month.

What is the role of the Federal level?

In the EWS for the RFM, the Federal level plays a critical role in data analysis and fund
release. This is not described here but can be found in the RF Guideline. For the
Contingency Budget, there are two important things to note regarding the role of the
Federal level:

Because of the nature of the EWS, the Federal level may receive analysis that shows the
emergence of a negative situation arising that will require a response earlier than woredas
and Regions. If this is the case, the Federal level will communicate this information to
Regions. Risk Financing Mechanism resources will not be authorised before the woreda
and regional Contingency Budgets are used or planned to be used.

The Federal level does NOT verify regional data and analysis or the decision to release the
Regional Contingency Budget. The Federal can verify requests for resources from Risk
Financing.

The PSNP Contingency Budget can be released at ANY point during the year provided that
the Early Warning System shows convincing evidence of a deteriorating food security
situation. The Federal DRMFSS will begin frontloading PSNP regular resources at the
beginning of the Ethiopian Fiscal Year to ensure that resources are available throughout

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the year. In addition, any Contingency Budget not used during one year is rolled over to the
next fiscal year and can be used immediately, as needed.

9.3.3 How is the Contingency Budget allocated and used once a decision is made
to release funds?

The process that follows the release of Contingency Budgets to respond to transitory
needs is broadly similar if this is at the woreda or Regional level. The section below
describes the process for the Regional contingency. If the decision was made at woreda
level, the reader should refer to the section on the role of the woreda only.

Once a decision has been made at Regional level to release contingency funds, the:
Contingency Plans are updated
Funds are released

Step 1. Contingency Plans are updated

Each woreda will have prepared a Contingency Plan to guide the use of all PSNP
resources for transitory needs. This includes the use of the woreda and Regional
Contingency Budgets.

Information on how to prepare a Contingency Plan is found in the Risk Financing

Guideline.

The decision of the Regional FSP Taskforce to release Regional Contingency Budget will
trigger the immediate revision of Contingency Plans (CPs) in affected woredas based on
known resource availability.

The CP is based on hypothetical scenarios and not actual figures. Updating the CP means
that the actual client figures sent from the Regional EWRCP are input into the CP to
determine: (i) the actual budget; and (ii) the actual number of public work sub-projects to be
undertaken. The revision process will be done again by the WFSTF in consultation with the
concerned kebeles.

Woredas will submit updated CPs to the DPPFSC including details of how the available
resources will be used. Funds will be transferred to the woredas only when these are
signed off at the Regional level. The revised woreda-level CPs will be consolidated into an
updated Regional CP. This will be submitted to the DRMFSS with the next Regional early
warning report.

The CP will also have identified the type of response (cash or food) and possible scale of
each response. While this is critical for the RF, it is less important for the Contingency
Budgets because these are almost always provided in cash only. If both cash and food
resources are available in the Region, a request for one or both resources can be sent to
the Region. However, the decision to allocate cash and/or food to a woreda is made by the
Regional FSP Taskforce.

9.3.4 How is targeting for the Contingency Budget conducted?

The KFSTF in collaboration with the Community Food Security Taskforce and the wider
community conducts the targeting exercise, with client numbers that correspond to the
number of clients indicated by the Region. Targeting is done immediately after the woreda
(for the woreda contingency) or Region (for the Regional contingency) has made a decision

174
to allocate funds according to estimated client numbers, on the basis of the early warning
figures.

Usually not all people in PSNP Woredas are equally affected by shocks. There are always
people who have better resilience or who can cope better than the others. It is because of
this that a targeting exercise is necessary. There are three purposes of targeting:

• To identify the eligible households to be included in the PSNP (new transitory food
insecure households)
• To identify those PSNP clients that are in need of additional support
• To identify those households that are eligible for Direct Support and those for Public
Works

Targeting is conducted in all areas where Contingency Plans need to be implemented due
to transitory food insecurity, including both PSNP and non-PSNP Kebeles in PSNP
Woredas.

The targeting process follows the wider PSNP process, as described in section 7.2.1. In
brief:

1. The Region (for the regional contingency) and woreda (for woreda contingency)
allocates resources to a woreda on the basis of early warning assessment of client
numbers. Woredas allocate resources to Kebeles based on the assessment of transitory
needs.

2. Following the PSNP targeting guidelines, communities and Kebeles inform woredas who
are the most needy clients who have been selected, up to the number of approved clients.

3. Selected clients are categorised as either available for Public Works or qualifying for
Direct Support, as per the PSNP Targeting Guidelines.

9.3.5 How are resources transferred and payments made?

The amount of resources transferred from the Regional Contingency Budget to woredas
will be based on:

1. Early warning trigger estimates of client numbers. This is used to determine the level of
transfers

2. A 20% budget for capital and administration budgets, to enable the running of the public
works activities and scaling up of implementation capacity

For cash transfers and capital and administrative budgets, the PSNP Accountant in the
Region will initiate the transfer to WOFED, based on request from the DPPFSC.

For food resources, the Regional FSP Taskforce will request the FSCD to release the food
stocks allocated to the Regional Contingency Budget in the PSNP Annual Plan to the
affected woredas. This will be done automatically following the procedures used for the
PSNP regular programme. If the Region is supported by NGOs, the Regional FSP
Taskforce will request the NGO to release food resources to the affected NGO-supported
woredas.

It is mandatory to use PASS for the PSNP attendance and payroll. This applies to use of
the woreda and Regional Contingency Budgets as well. Woreda PSNP cashiers update the

175
PASS database with information on those new households that have been targeted for
support through the woreda and/or Regional Contingency Budgets. If PSNP clients are to
receive additional transfers, this information should be recorded in PASS as well. No Client
Cards are issued to households covered by the Contingency Budget. However, these
households should sign for payments on the PASS payroll, just as those participating in the
regular Programme do.

Payrolls are prepared based on the attendance sheet submitted by the DA and verified
through the normal PSNP procedures.

9.3.6 How are Public Works carried out?

Procedures for Public Works conducted using the Contingency Budget are identical to
those conducted in the PSNP. The PSNP PIM and any updated Public Works guidance
should be followed.

A specific issue for the Contingency Budget is that public works may be conducted at any
time of year. In this case, PSNP rules and procedures also apply as follows:
Normally public works are not implemented during peak agricultural seasons. If the
Contingency Budget is required during this period, Direct Support should be provided.
If Contingency Budget requires a response in the rainy period, which is also a peak
agricultural season for most PSNP Woredas, all participants of PSNP should be covered
through Direct Support at times when public works cannot be conducted.
If under certain conditions (e.g. no agricultural activities due to drought), PSNP clients are
required to do public works, the type of activities recommended are tree planting, road
construction, school maintenance, and others that can be done outside of the farm lands.
Woreda CPs must plan which types of activities are appropriate at different times of year.

9.3.7 How is the use of the Contingency Budget reported?

The use of woreda and Regional Contingency Budgets should be reported in line with the
procedure for (i) the physical progress reports; (ii) financial reports and, as necessary (iii)
the food management reports (see 10.3).

The EWS reports submitted to higher administrative levels always include an overview of
the status of the Contingency Budget.

9.3.8 Transitioning to the Risk Financing Mechanism

The reports produced regularly through the EWS should continue to monitor the situation
as it evolves. The regular reports should clearly state if the situation is deteriorating and
additional resources are required. If the woreda and Regional Contingency Budgets are
exhausted, likely to be exhausted, or otherwise committed, the Region is responsible to
transmit a request to the Federal Level for Risk Financing resources. The process for this
is outlined in the Risk Financing Guidelines.

This information should be used at woreda and Regional level to forward plan to ensure a
smooth transition from the Contingency Budgets to Risk Financing and, if needed, the
emergency system. This second transition is particularly important if there are non-food
needs among the affected communities. The transition from the Risk Financing to the
emergency appeal system is described in the RF Guideline.

9.3.9 What if the contingency is not used by the end of the year?

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At the end of the fiscal year, unused woreda or Regional Contingency Budget funds will be
rolled over as part of the contingency funding for the following year. The Contingency
Budget for that year will be replenished only up to 20% of that year’s programme base
cost.

9.4 What is the Process for the Risk Financing Mechanism?

The Risk Financing Guideline discusses the use of the Risk Financing Mechanism in detail.
Use of the Risk Financing Mechanism funds follows these very summarised steps:

Step 1. The Disaster Risk Management Working group (DRMWG) meets monthly to
discuss routine Early Warning data. When the combined message from the three main
aspects of the EWS suggest that a shock is predicted, EWRD prepares a report and calls a
meeting of the RF Management Committee (RFMC) within 3 days

Step 2. The RF Management Committee reviews the EWRD advice and decides if RF
resources need to be released and if so the balance of cash and food resources.

Step 3. If a decision to release resources is made, FSCD authorises MoFED to release

cash funds to Regions, and authorises EWRD to release food resources according to
predictions of the resources needed through the EWS, and on to affected woredas.

Step 4. Subsequent RF MC meetings will continue to closely monitor EWS data to ensure
that timely and appropriate action is taken until the potential shock is declared to be over.

Step 5. The decision to release funds is communicated to Regions and triggers the
immediate updating of Contingency Plans in affected woredas, the Regions, and the
Federal level.

Step 6. Woredas submit updated CPs to DPPFSC on the basis of actual figures and funds
approved by RFMC as communicated through the Region, including details of how
available resources will be used. Funds are only transferred to woredas when these CPs
are approved at Regional level.

Step 7. KFSTFs in affected Kebeles are instructed to conduct a targeting exercise for
transitory support, if they have not already done so recently for Contingency Budget use,
including categorisation for conditional or unconditional support. The numbers selected
must correspond to the number of transitory clients approved by the RFMC

Step 8. At the same time, woreda implementation capacity is assessed as part of the CP
updating process and plans updated.

Step 9. When funds and cash are received at woreda level, woreda PSNP cashiers
establish a separate payroll for RF funds and food.

Step 10. Cash and food are distributed to transitory clients according to the standard
payment procedures. Reporting also follows PSNP rules and procedures.

Step 11. When funds and/or food are received, Contingency Plans are implemented

Step 12. If it appears – through continued close monitoring – that the scale of the response
to the shock will exceed available resources the woreda PSNP accountant prepares a
budget for future additional needs. He/she informs the Regional PSNP accountant. Regular
reviews of capacity, fund availability, size of shock are made.

177
Step 13. Public Works should be stopped and transfers continued on an unconditional
basis, if necessary. Public Works may begin again when assessment shows that the
conditions for PSNP implementation according to the rules can be met.

Step 14. If forward planning suggests that RFM funds will not cover the full extent of the
shock, or capacity to implement RF according to PSNP transfer rules is exceeded and
cannot be met, then transition to emergency response system is required. Since the RF
response is an early preventive one, the EWS will provide sufficient information on the
future course of the shock. The RFMC assesses the EWS evidence, plans allocation of
funds to various funding mechanisms, and decides to launch an emergency response,
planning for a smooth transition.

Step 15. Woreda CPs indicate the steps to be followed for a transition to an emergency
response.

Step 16. When regular monitoring of the shock shows either a smooth transition to the
emergency response or the end of the shock, the RF response is terminated by the RFMC.

A comprehensive description of use of the Risk Financing Mechanism may be found in the
Risk Financing Mechanism. These guidelines should always be used when the RFM is
used in practice, to avoid risky errors.

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CHAPTER 10: MONITORING AND EVALUATION

10.1 Introduction

The monitoring and evaluation of the PSNP is integrated into the overall monitoring and
evaluation of the Food Security Programme (FSP). The FSP has an overall logical
framework laying out Goal, Outcome, Outputs and Activities along with the indicators
required to measure their achievement. It is the combination of the various components of
the Food Security Programme, including the PSNP, working together and complementing
each other which are expecting to bring about the achievement of the objectives of the
FSP. Assessment of programme impacts and of progress in achieving these objectives will
therefore be conducted in an integrated manner, assessing the effects of the combination
of programmes.

The PSNP also has its own logical framework, nested within the overall FSP logical
framework, which includes greater detail of the Outputs that will be delivered and Activities
that will be conducted through this programme. This more detailed description of expected
Outcome, Outputs and Activities, along with their indicators for measuring achievement,
will be the basis for monitoring programme efficiency and effectiveness and will inform day-
to-day management decisions to improve the running of the programme. The PSNP logical
framework (logframe) is found in Annex 1.

The main purposexxxii of monitoring and evaluation within the PSNP is for programme
implementers to assess how the programme is doing against its objectives, whether it is
having impact, whether it is working efficiently and effectively, and to learn how to do things
better. Monitoring and evaluation allows implementers, at all levels (Woreda, Regional, and
Federal) and in all organisations (Food Security, Natural Resource Management, Finance)
to see whether or not plans are working and whether circumstances have changed. It
provides them with the evidence they need to continue the programme and/or to make
changes and improvements. Within such a process, the objectives of the programme
remain constant but our monitoring and evaluation enables us to improve the programme
so that we can better meet these objectives. The figure below illustrates this process.

The Food Security Programme’s Monitoring and Evaluation system is described in detail in
a separate document (the FSP Monitoring and Evaluation Plan). This monitoring and
evaluation system is currently being reviewed to reflect the revision to the overall Food
Security Programme and to make the following adjustments:
• Introduction of a Performance Management System which includes key targets,
assessing achievement of targets and providing incentives to implementers who
achieve these targets;
• Improved systems for analysing and consolidating data to make it more usable by
decision makers at all levels including woreda level; and
• Strengthening of the monitoring and evaluation of public works to improve availability
and accuracy of information concerning both the quantity and quality of work
undertaken.

179
Figure 12: Monitoring and Evaluation Cycle

10.2 Monitoring and evaluation tools and processes

Until the revised document is available, the current Food Security Programme Monitoring
and Evaluation Plan should be used. The M&E system described in this chapter, and to be
revised, will provide information that informs the management systems – such as
performance management, performance incentives – described in Chapter 3, and more
generally to enable much stringer use of evidence-based decision-making across the
PSNP.

Key elements of the monitoring and evaluation system are described in brief in the table
below:

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Table 10: Monitoring and Evaluation Tools Currently in Place

Tools Responsible Parties Level they

assess
(activity,
output,
outcome,
impact)
Kebele and Woreda Monthly DAs are primarily responsible Activities
monitoring for collecting information at
Kebele level. The NR desk
A series of reporting formats are collates information related to
filled out by kebeles and woredas on public works, WOFED details
a monthly basis on client numbers, cash transfer information, while
transfers, appeals and public works the Food Security Desk
completes the information and
consolidates it into a monthly
report for decision making by
WFSTF and for forwarding to
the Region.

Quarterly Financial reports (IFRs) WOFEDs provide financial Inputs

The quarterly (and annual) financial
reports provide information on
budget expended according to
agreed line-items
information on a monthly basis
which are consolidated at
regional and federal level by
BoFEDs and MoFED.

Technical Implementation Regional Food Security Activities

Reports
These reports tend to consolidate
some of the woreda information with
added data from regional and
federal level
Sections consolidate
information from woreda level,
before forwarding to Federal
level who produce an overall
consolidated report

Public Works Monitoring The NR Desks compile woreda Activities and

This focuses both on the quantity
and quality of public works
undertaken and will help to identify
areas where further technical
support is needed.
level public works information Outputs
which is then analysed and
further assessed by Regional
PWFU. The PWCU may also
provide input

Market Information The RIC and FIC collect price Risks

data regularly.
Already existing sources of market
information will be used to provide FSCD commissions real time
PSNP implementers with relevant products.
real-time products focusing on the

181
Tools Responsible Parties Level they
assess
(activity,
output,
outcome,
impact)
price of key staples in PSNP
operational areas.

Audits MoFED commissions the audits Inputs

Two financial audits are in place (the

general audit and the roving audit)
to ensure the completeness and
veracity of financial information
included in the above financial
report

Roving Appeals Audit FSCD commissions the audit Activities and

Outputs
This independent audit looks at
whether proper procedures are
followed and records kept in the
appeal system

Information Centre Reporting FSCD and DPPFSC, who will Outputs

collect information from Woreda
Regional: Bi-weekly information Food Security Desks
collection from all PSNP woredas
largely focused on timeliness of
transfers, but also includes price
data. Occasionally additional data
requirements are included during
the period that transfers are not
distributed.

Federal: Bi-weekly collection of

similar from 81 woredas to provide
rapid real-time information at a
federal level and to verify accuracy
of Regional Information Centre
reporting.

Performance Management The FSCD makes decisions Outputs

System concerning the release of
incentives for those who
Performance targets are a means of achieve targets. All
improving and assessing implementers at all levels play
programme implementation. By a role in monitoring progress
setting performance targets for key towards achieving targets and
concepts, such as timeliness and addressing constraints.
predictability of transfers,
implementers at all levels are aware
of, and can better work towards,

182
Tools Responsible Parties Level they
assess
(activity,
output,
outcome,
impact)
common goals for programme
implementation.

The Regional and Federal

Information Centres described play
a key role in measuring performance
against standards.

Rapid Response Team RRTs exist at Federal, Risks and

Regional and Woreda level and Outputs
A key risk management tool which are comprised of
assess woreda performance with a representatives of relevant line
view to ensuring that any departments as well as
humanitarian risk is minimised. interested donors (federal) and
NGOs (woreda).

Purchasing Power Study FSCD commissions study Risks

Annual review assessing market

prices of key cereals in PSNP
woredas in order to inform an
appropriate wage rate for the PSNP

Public Works Review NRMD takes the lead in Activities,

coordination with Regional Outputs and
Twice yearly reviews: the first review PWFU. FSCD, donors and Outcomes
each year focuses on planning; the NGOs participate
second review on sub-project
implementation.

Public Works Impact Assessment NRMD commissions study Impacts

An assessment of the impact of

PSNP public works in a sample of
watershed. It looks at both
discernable and potential impacts of
public works.

Market Impact Studies FSCD commissions studies Outcomes and

Impacts
These will assess periodically the
positive and negative impacts the
programme has on markets,
whether as a result of transfers
(both cash and food) or as impacts
of public works.

183
Tools Responsible Parties Level they
assess
(activity,
output,
outcome,
impact)
Annual Household Survey (every FSCD commissions the survey Outcomes and
two years) and the external technical Impacts
support
Conducted by CSA with technical
support and analysis by an
internationally recognised institution,
the household survey assesses
outcomes and impacts of both the
PSNP and other components of the
Food Security Programme. It
includes both quantitative and
qualitative information).

Ad Hoc Studies FSCD and other implementers As indicated

will commission studies as by the study
A number of ad hoc studies have needed with inputs from donors
been and will continue to be
commissioned to provide decision
makers with detailed information on
specific areas of concern. In the
past such studies have included a
Gender Contextual Analysis, a
Financial Transparency and
Accountability Perception Survey, a
Banking Sector Assessment, a
Cash-Food Study, a Direct Support
Review, an HIV contextual study
and a targeting study. Future studies
are likely to include nutrition and
graduation.

All monitoring data should collect data that is sex-disaggregated and analysed from a
gender perspective. The review o f the FSP monitoring system will revise the reporting
formats and guidelines in this regard.

10.3 Roles and responsibilities for monitoring the PSNP

The regular monitoring system, which includes kebele and woreda monthly monitoring
reports, the regional and federal quarterly reports, and the interim financial reports, is
aligned with the institutional arrangements for the PSNP. The lines of reporting are detailed
in Figure 13 below.

184
Figure 13: Reporting Relationships

Within the reporting processes outlined in the Figure above the responsibilities to collect
and analyse: (I) financial data remain with MoFED line agencies, (ii) for public works with
NRMD, supported by its PWFU, at each level, and the support of other Technical Units, as
required, and (iii) food transfers with EWRD at each level. FS line agencies are responsible
to analyse data from these different streams into a consolidated report that provides a
comprehensive overview of progress towards the stated objectives of the PSNP. These
consolidated reports will then be shared with all implementing bodies at each level.

These lines of reporting are also used in woredas supported by NGOs. In these woredas,
NGOs coordinate with the woreda to prepare a monthly progress report that is submitted to
the Region by the agreed deadline. This information is consolidated together with reports
from all other PSNP woredas and submitted to the Federal level.

Additionally, in line with the Memorandum of Understanding, USAID and WFP, and other
development partners, will submit to FSCD on a quarterly basis information on food
resources, specifically: opening balances, receipts, distribution, transfers to clients, and
ending balances. For WFP, this information will be provided on receipts and distributions to
the main hubs only. For in-kind resources channelled through NGOs, NGOs will report on
these resources to FSCD.

Within this overall structure, M&E staff at Federal, Regional and Zonal levels in each of the
responsible agencies will provide technical backstopping to lower level staff. This will
include regular feedback on the quality of reports, such as that currently in use in Oromiya.
A rolling-training programme on M&E will also be implemented, to ensure that new staff is
trained in a timely fashion.

185
 ANNEX 1: PSNP LOGFRAME
Hierarchy of Objectives Objectively Verifiable Indicators Means of Verification Assumptions
Super Goal (Programme Context)
xxxiii
Food security for chronic and 1. By 2015, malnutrition among children National nutrition surveys
transitory households in rural under 2 years of age decreases by 1.5
Ethiopia achieved percentage points per year on average
2 By 2015, 80% of all households in rural FSP panel survey
Ethiopia access sufficient food at all Other national food
times for an active and healthy life in the security surveys
absence of PSNP transfers [food
xxxiv
security]
Goal
Food security status for male and 1. 50% of male and female members of FSP panel survey 1. Sufficient livelihood opportunities and
female members of food insecure chronically food insecure households sustainable support exist to allow food
households in CFI woredas participating in PSNP public works insecure people in CFI woredas to
improved access sufficient food at all times for an reach food security.
active and healthy life in the absence of 2. Sufficient enabling support is
FSP support by 2014 [food security] available to enable food insecure
2. 80% of male and female members of FSP panel survey people in non-CFI woredas to become
chronically food insecure households food secure
participating in PSNP public works yet to 3. Protection from transitory shocks in
achieve food security have sufficient food CFI woredas is sufficient to prevent
for 12 months and can resist moderate food secure and food sufficient people
shocks in the absence of PSNP transfers from losing assets
by 2014 [food sufficiency] 4. Protection from transitory shocks is
3. 90% of male and female members of Information on graduated sufficient to allow and maintain progress
chronically food insecure households households generated to food security in non-CFI woredas for
participating in PSNP Direct Support through FSP M & E those not yet food secure
have sufficient food from sustainable system and independent
sources for 12 months and can resist assessments
moderate shocks by 2014 [food
xxxv
sufficiency] .
4. 90% of male and female members of Information on graduated
(non-chronic) food insecure households households generated
involved in the FSP have sufficient food through FSP M & E
for an active and healthy life in the system and independent
absence of FSP support by 2014 [food assessments
security].

186
Hierarchy of Objectives Objectively Verifiable Indicators Means of Verification Assumptions
Outcome (Outcome to Goal)
In chronically food insecure
xxxvi
woredas : 1. 90% of PSNP participants achieve 12 FSP panel survey, 1. Other elements of the FSP are
xxxvii xxxviii
Food consumption assured and months food access from all sources progress reports and available to PSNP participants at the
asset depletion prevented for food including PSNP from December 2010 programme assessment required scale
insecure households onwards. 2. Other rural development programmes
2. Asset levels in 75% of PSNP and services beyond FSP are available
households stable or increasing by in PSNP areas
December 2011. 3. Enhanced access to markets,
3. Asset levels of 90% households services and natural resources
receiving transfers from Risk Financing contribute to food sufficiency
or Contingency Budget stable or 4. Other programmes (OFSP and
increasing by December 2011. others) are effective at enabling food
4. Utilization of PSNP transfers benefits sufficiency
all household members equitably from 5. Gains from FSP and other sources
December 2010. are distributed equitably within
Markets stimulated and access to 1 75% of traders report increased trade 1 market study households
services and natural resources volume by December 2014. 6. PSNP participants do not deliberately
enhanced for PSNP and other 2 75% of households in PSNP woredas 2 and 3. Household deplete assets
households, and report improved access to health clinics economy approach 7. Shocks do not deplete household
and primary schools by December 2012 surveys and panel assets
3 75% of households in PSNP woredas survey on trends and 8. Alternative mechanisms to ensure
report improved use of health and transfers food sufficiency for direct support
education services attributable to PSNP participants exist
xxxix
by December 2012. 4 PW impact 9. Alternative mechanisms for
4 75% of households in PSNP woredas assessment and FSP effectively addressing transitory food
report improved availability of clean panel survey insecurity in place
water and livestock fodder by December 10. Rehabilitated and enhanced
xl
2012. environment contributes to food
Natural environment rehabilitated 1 90% of households reporting that 1 Public Works impact sufficiency
and enhanced their environment has improved for the assessment 11. Enabling macroeconomic
benefit of the community by 2012 environment remains
Outputs (Output to Outcome)
1.Appropriate timely and predictable 1.1 90% of PSNP transfers delivered to 1.1 Progress reporting 1.1 Participants use transfers to
transfers (cash and/or food) participants within 45 days after previous and IC reporting assure food consumption and protect
received by households in response month from April 2010 onwards. assets
to chronic requirements 1.2 75% of participants report they are 1.2 Food is available and affordable

187
Hierarchy of Objectives Objectively Verifiable Indicators Means of Verification Assumptions
able to plan ahead on the basis of PSNP 1.2 FSP panel survey in local markets
transfers by December 2012. 1.3 Participants’ other livelihood
1.3 90% of transfers received have a activities continue at similar levels
value of at least 15 kg of grain per month 1.3 Annual wage rate 1.4 No significant dilution of
by January 2010. study transfers occurs
1.4 95% of pregnant female participants 1.5 Other larger shocks do not
are moved between PW and DS 1.4 FSP panel compromise food consumption or
according to PIM rules by January 2010 survey deplete people’s assets
onwards. 1.6 Participants use cash transfers
1.5 70% of participants receive cash or to increase use of health, education and
food transfers at a place within one to 1.5 FSP panel survey other services (demand)
three hour of their home by December 1.7 Non participants able to
2011 onwards. increase access to enhanced health,
1.6 90% of households participating in education and other service provision
the PSNP for at least 3 consecutive 1.6 FPS panel survey 1.8 Sufficient resources are
years by December 2011. available to address all chronic cases
2.Transitory cash and food needs 2.1 90% of transfers to participants within 2. Risk Financing Review 2.1 Transitory cash and food needs
addressed effectively in PSNP 75 days after RF triggered by 2012 and FSP panel survey being met is adequate to protect lives
woredas, to the limit of risk financing 2.2 50% of participants reporting they are and livelihoods or other elements of
resources able to plan ahead on the basis of response covered adequately by other
transfers from PSNP Risk Financing or actors
Contingency Budget by December 2012. 2.2 Transitions with other financial and
2.3 90% of transfers received have a delivery mechanisms and actors for the
value of at least 15 kg of grain per month transitory response are smooth
by 2010. 2.3 Migration into PSNP woredas does
2.4 70% of participants receive cash or not compromise effectiveness of
food transfers at a place within one-three resource use
hour of their home by 2011 onwards.
3.Quality, new and existing, 3.1 100% of PW plans developed 3. Public Works Review 3.1 Community assets achieve
community assets with operational following community planning guidelines and progress reports technical objectives
management mechanisms by December 2010. from PSNP public works 3.2 Effective and sustainable
established 3.2. 95% of public works have an monitoring system management maintained
established management mechanism at 3.3 Community assets integrated into
completion starting from December wider planning and management
2010. processes
3.3. 90% of public works reaching 3.4 Budgets available as necessary
satisfactory standards and sustainability 3.5 Maintenance conducted as

188
Hierarchy of Objectives
4.Institutional capacity to manage
the PSNP strengthened
189
Objectively Verifiable Indicators Means of Verification Assumptions
ratings by December 2010. necessary
3.4 100% of PW projects screened by 3.6 Community interest persists
ESMF by December 2010. 3.7 Health, education and other relevant
service supply enhanced through public
work infrastructure provisions
3.8 Community assets continue to be
relevant to livelihoods
3.9 PSNP and non-PSNP households
able to access and benefit from
community assets
3.10 Public works activities contribute
positively towards rehabilitating or
enhancing the natural environment
3.11 Environmental safeguards are
effective
4.1 90% of woredas meeting minimum 4.1 FSCD, NRMD 4.1 Capacity is applied to ensure
staffing standards by December 2010 and MoFED bi-annual effective management in practice
onwards and 90% of staffing positions staffing update; Progress 4.2 Critical components of PSNP
agreed at federal and regional levels filled reports managed effectively
by December 2010 onwards. 4.3 Capacity to manage maintained
4.2 Progress reports over time
4.2 75% of equipment purchased and 4.4 Negative effect of staff turnover can
delivered as planned at all levels by be overcome
December 2010 onwards. 4.5 Ongoing government reform and
4.3 Programme future directions does not negatively
4.3 Incidence of poor programme
assessments affect PSNP implementation capacity
performance caused by low prioritisation
by local administration reduced to less
than 10% of woredas by December 2010.
4.4 70% of beneficiaries received all 4.4 FSP panel survey
information needed to understand how the
program works by December 2012
4.5 FSP panel survey
4.5 85% of beneficiaries and non-
beneficiaries reporting that the targeting
and graduation processes are fair by 4.6 Programme
December 2010. assessments
Hierarchy of Objectives Objectively Verifiable Indicators Means of Verification Assumptions
4.6 70% of PSNP staff report timely
access to key Programme documents by
December 2010. 4.7 Reports
4.7 90% of physical and financial reports
and audits submitted on time by December
2010.
5.Coordination, complementarity 5.1 90% of PSNP plans fully incorporated 5.1 PW reviews and PW 5.1 Government systems can be
and synergy promoted within in woreda development plans by monitoring reports improved
Government systems and with other December 2010. 5.2 Improvements to Government
relevant programmes and 5.2 PW impact systems can enhance coordination,
organisations 5.2 90% of PW schools and clinics assessment complementarity and synergy
providing services 2 years after completion 5.3 Existence of other relevant
by December 2010 onwards. programmes and organisations in
5.3 90% of PW roads adequately PSNP areas
maintained 2 years after completion by 5.3 PW impact 5.4 Other Government systems and
assessment other programmes and organisations
December 2010 onwards.
can contribute to food security, asset
5.4 70% of PSNP households have access 5.4 Progress reports and protection, community assets, and
to financial service through HABP by end FSP panel survey market stimulation
2011 onwards. 5.5 Linkages will be beneficial:
5.5 Progress reports and 5.6 Other programmes are big enough
5.5 90% of graduating households have FSP panel survey 5.7 Synergy manifests in practice
access to financial service through HABP 5.8 Other government systems deliver
xli
from January 2011 . services and investments as expected

Activities (Inputs) (Costs) (Activity to Output)

1. Appropriate timely and Government staff at Federal, Regional 13,490,244,000 birr for General:
predictable transfers and woreda-levels cash transfers, capital, 1. Government and donor commitment
1.1 Identify eligible participants Donor staff time administrative and to PSNP continues
through annual targeting and Food transfers management costs 2. Institutional capacity to deliver
graduation process (ensuring the Cash transfers appropriate transfers exists
mainstreaming of gender and Technical Assistance 2,200,608 MT of food for PSNP is understood and prioritised at
HIV/AIDS) Equipment food transfers all levels by key decision-makers
1.2 Resolve any appeals concerning Materials Roles and functions of relevant
targeting government departments agreed and

190
Hierarchy of Objectives
1.3 Undertake annual wage rate
study to ensure parity between food
and cash wage rates
1.4 Identify appropriate transfer,
prepare relevant sections of annual
plan and develop disbursement plan
(including food/cash split)
1.5 Ensure that programme
participants have full understanding
of programme principles and
procedures (including size of
transfer and disbursement
schedules)
1.6 Transfer resources from federal
to woreda level
1.7 Make cash and/or food transfers
to participants.
1.8 Ensure robust market monitoring
1.9 Provide data concerning type
and timing of transfers to concerned
traders
1.10 Monitor activities related to
timely and predictable transfers
2. Risk Financing
2.1 Accurate early warning of
shocks achieved
2.2 Appropriate contingency plans
ready when needed
2.3 Adequate contingent financing
resources available where and when
needed
2.4 Planned systems and processes
for the risk financing mechanism
function effectively
2.5 Effective coordination with other
financial and delivery instruments
and actors achieved
191
Objectively Verifiable Indicators
Means of Verification Assumptions
carried-out effectively.
Gender and HIV/AIDS able to be
mainstreamed meaningfully
Appropriate timely and predictable
transfers:
1. Community cooperation with
targeting and other processes exists
2. Transitory requirements can be
identified accurately at the right time
3. Resources for transfers and
implementation continue to be available
4. Security, weather or other situations
do not hamper transfers
5. Participants available to receive
transfers
Sufficient food and cash available to
allow community choice regarding the
desired cash/food split to be
implemented
Risk Financing:
1. EW warning information is helpful,
believed and acted upon
2. Contingency Plans are appropriate
and can be operationalised.
3. Sufficient resources for Contingency
Plans are available in time
4. Contingency Financing resources
used for intended purposes and are the
resources needed
5. Institutional systems function as
intended
6. Guidance on transitory strategy is
clear, well understood and implemented
Hierarchy of Objectives Objectively Verifiable Indicators Means of Verification Assumptions
7. Communication between key
stakeholders is effective
8. Planning and response is joined up
and effective
3. Community assets Community assets:
3.1 Identify public works through 1. Sufficient technical capability to
participatory planning, including support the planning and
contingency planning implementation of public works at
3.2 Ensure gender and HIV/AIDS is community level available to the
mainstreamed in public works Programme
planning and implementation 2. Communities are willing to participate
3.3 Ensure appropriate technical in the planning of public works
design 3.Community and relevant local
3.4 Ensure ESMF compliance authorities are willing to manage new
3.5 Construct public works and existing community assets
3.6 Identify and plan management 4. Effective and sustainable
and maintenance arrangements for management regimes for community
new and existing public works assets can be identified
3.7 Monitor activities related to
public works
4. Institutional capacity Institutional capacity:
4.1 Assessment of programme 1.Commitment to applying improved
management systems for adequacy, capacity to PSNP implementation exists
accountability and transparency and at all levels
identify capacity gaps. 2. Management systems are affordable
4.2 Make available adequate and practical
budgets for capacity building 3. Improvements to institutional capacity
4.3 Develop and revise manuals and result in implementation improvements
guidelines (as written records of in practice
systems and procedures) as 4. Staff turnover does not compromise
necessary. capacity gains
4.3 Address staffing gaps through
both mainstream government
channels and contract staff or
technical assistance
4.4 Support the development of
physical capacity through provision

192
Hierarchy of Objectives Objectively Verifiable Indicators Means of Verification Assumptions
of equipment and services.
4.5 Undertake rolling training
programme
4.6 Monitor and evaluate capacity
building efforts, including trainings.
5. Coordination Coordination
5.1 Agree and implement measures 1.Other programmes and organisations
to scale up safety nets in response are able and willing to cooperate and
to shocks in existing programme link with PSNP
areas 2.Coordination leads to
5.2 Agree and implement measures complementarity and synergy in
to enhance collaboration and practice
synergies for graduation
5.3 Agree and implement measures
which enable PSNP to impact on
other desired outcomes
5.4 Ensure access to a permanent
safety net for those who need it.
Preconditions
1. PSNP Government and donor
agreements in place
2. Commitment of Government and
donors to PSNP in place
3. Initial resources are available
4. Security situation conducive to PSNP
activities

193
 ANNEX 2: LIST OF WOREDAS (GOE AND NGO)

AFAR
Mille
Dalol
Koneba
Berahle
Afdiera
Abala
Megale
Erebti
Bure mudayetu
Gewane
Amibara
Dulecha
Argoba spacial
Awash fentale
Yalo
Teru
Awra
Gulina
Ewa
Telalak
Dewe
Artuma/dalifagie
Fursi
Semurobi gelallo
Afambo
Asayta
Chefra
Dubti
Elidar
Jore
Adaare
Bidu
AMHARA
E/Gojam E/Sar Mider
Gonca Siso Enessie
Shebel Berenta
N/Gonder Adiarkay
Beyeda
Dabat
Debark
Janamora
Mirab Belesa
Misrak Belesa
Tselemt
Wogera
N/Shoa Angolela Tera

194
 Assagert
Gishe Rabel
Menz Gera Mider
Menz Keya Gebriel
Menz Lalo Mider
Menz Mama Mider
N/Wollo Bugna
Dawunt
Delanta
Gidan
Gubalafto
Habru
Kobo
Lasta
Meket
Wadla
Oromiya Artuma Fursi
Bati
Dewa Chefa
Dewa Harewa
Gile Timuga
S/Gonder Ebinat
Lay Gayint
Libo kemkem
Simada
Tach Gayint
S/Wollo Albuko
Ambassel
Argoba
Debre Sina
Dessie Zuriya
Jama
Kalu
Ketta
Kuta ber
Legambo
Legehida
Mahal sayint
Mekdela
Sayint Ajibar
Tehuledere
Tenta
Wogdi
Worebabo
Woreilu
Wag Hamra Abergele
Dehana
Gazgibla
Sahila

195
 Sokota
Ziquola
Dire Dawa
Dire Dawa
Harar
Hundeine
OROMIA
E/hareghe Deder
Goro Gutu
Kersa
Gola Oda
Babile
Kurfachele
Melka Belo
Jarso
Girawa
Midhega
Fedis
Gursum
Bedeno
Haamaya
Kombolcha
Meyuu Muluke
Meta
Cinaksan
Qumbi
W/hareghe Darelebu
Hawi-Gudina
Boke
Kuni
Oda-bultum
Burjadhintu
Dobba
Guba Qoricha
Meiso
Chiro
Anchare
Tullo
Mesela
Habroo
Gemachis
Arsi Dodota
Sire
Seru
Bale Gasera
Z/Dugda
Golelcha(ARSI)
Merti
Aseko

196
Bale Sewane
Ginir
Meda Walabu
Goro
Dawe Kechen
Lega Hida
Rayitu
Gura Damole
Barbare
Dalo Mena
Harene Bulki
Gololcha(Bale)
DaweSerer
N/Shewa Abichu Gnea
Kuyu
Kimbibit
Wuchale
Jida
W/Arsi Shala
Siraro
Wondogenet
Arsi Negelle
E/shewa Boosat
Fantalle
A/T/J/Kombolcha
Borena Galanaa
Dire
Taltelle
Yabello
Arero
Moyale
Dugda Dawa
Miyoo
Dahahas
Dilo
Melka Sodda
Guji Liben
GoroDola
SOMALI
Afdem
Babile
Barie
Doloodo
Filtu
Dolobay
Hargelle
Charati
Mustahill
Hudet

197
 D/Habour
Harshin
Shinelle
Ener
Gursum
SNNP
Alaba
Amaro
Derashe
Konso
Burji
A/minchi zuria
Bonke
Demba goffa
Boreda
Chencha
Dita
Dardamole
Kemba
Kucha
Mirab abaya
Zala
Ubadebrest
Geze goffa
Oyda
Kocherie
Wonago
Yirgacheffe
Dilla zuria
Miisrak Bedewocho
Mirab Bedwocho
Misha
Gibe
Lemmu
Unlemmu
Shashego
Soro
Gomboro
Duna
Maji
Daesenech
Yangatom
Hamer
Loma
Gena Bosa
Angacha
Kacha Bira
Kedida gamila
Tembaro

198
 Hadero&tu
Demboya
Doyogena
Aleta wondo
Arerosa
Awasa zuria
Bensa
Dale
Dara
Shebedino
Boricha
Hulla
Wondo Genet
Loka Abaya
Chuko
Bona zuria
Hawella tul
Dalocha
Lanfaro
Sankura
Selti
Hulbareg
Meskan
Mareko
Boloso sorri
Damot Gale
Damot Woya
Humbo
Kindo Diday
Offa
Sodo zuria
Duguana fan
Damot Sorri
B oloso-Borri
Damot Fulas
Kindo Koysha
Tigray
Adwa
Ahferom
Degua Temben
Kola Temben
Laelay Maichew
Mereb Lekhe
Naeder Adet
Tahtay Maichew
Werie Lekhe
Tanqua Abergele
Atsebi Wenberta
Ganta Afeshum

199
 Erob
Gulomekeda
Hawzien
Saesi Tsaedaemba
Kilte Awlaelo
Alaje
Alamata
Endamohoni
Enderta
Hintalo Wajerat
Ofla
Raya Azebo
Saharti Samre
Laelay Adiabo
Asgede Tsembila
Medebay Zana
Tahtay Adiabo
Tselemti
Tahtay Koraro

200
 ANNEX 3: GUIDELINES FOR PUBLIC WORKS ON PRIVATE LAND

This table provides general guidance related to interventions on watershed private lands.

Criteria & type of land use Criteria for PW Level of Community and Remarks
interventions Household contribution
Homestead areas’ Not applicable except for
1. Able-bodied HHs need to On community solidarity, the PWs group
conservation and fertility investments for women invest their own labour for the of clients can plant or establish private
management (compost deprived of labour and rehabilitation of their assets for people with handicap or illness
making, etc), plantation, specific vulnerable HHs homestead but able to manage assets (as opposed to
moisture conservation and and groups in need of building assets)
vegetative fencing community solidarity 2. Labour deprived and highly
vuln. HHs can contribute
social skills and other support
services as much as they can
provide
Homestead water harvesting Applicable only as part of Self help contribution need to The HHs ponds can be also selected as
measures (ponds, stone watershed development be about 50% of the total those that are adjacent to homestead
faced wells, etc) for and as PWs group investment gullies and that can be converted into
enhanced productivity and contribution to support productive units
crop diversification & highly food insecure HHs
intensification (in the form of group work
for HHs with food gaps >
6-9 months)
Cultivated land 0-15% Not applicable for able Same as above – applicable In case of significant portions of degraded
slope bodied persons – same only for farmers with specific cultivated lands under this slope range and
logic as per homesteads constraints and illness. high level of stoniness and dryness (kola
and dry weyna dega areas) some 50% of
the labour contribution may be allowed for
PWs (context specific)
Cultivated land 15-30% PWs allowed for 50% of 50% contribution as self-help The level of PWs tot. contribution may
investment and adherence with the exception of those increase to 75% in drier and stony areas or
to high quality work norms highly vulnerable HHs with cultivated area with both vertical and
land placed in the portion of transversal slopes (lateralization of
the sub-watershed to be erosion). These areas need significant
treated investment
Cultivated land 30-50% PWs allowed for 75% of 25% contribution as self-help Under such slopes cultivated areas are
the investment and with the exception of those often dissected by rills and with shallow
adherence to high quality highly vulnerable HHs with soils. The type of measures need robust
work norms and integrated land placed in the portion of design and integration of various measures
activities such as the sub-watershed to be
reinforcements on treated
depressions, small gully
control and green fencing
(e.g. farmland closure)

201
Criteria & type of land use Criteria for PW Level of Community and Remarks
interventions Household contribution
Cultivated land > 50% PWs allowed up to 100% Self-help only for major Slopes > 50% range should not be
slope range investment with self-help stabilization and planting cultivated but millions of hectares of such
on stabilization and grasses & trees. lands are already cultivated and are in dire
planting of cover species. need of rehabilitation. As top down
These lands need intensive approaches such as eviction and shifting
treatment and be gradually of such lands to tree planting do not work,
returned to agroforestry suggestion is made to use labour based
use (through linkage with integrated approaches to first stabilize the
nurseries) slopes and gradually place such lands into
a progressively diversified agroforestry
system. In a few years such slopes can
become productive and farmers shift to
sustainable tree-based production patterns.
A tenure arrangement supporting
certification is also needed. A legal
framework is also essential to avoid abuse
after establishment.
Community nurseries This is a perfect public & Self help should be in the Community nurseries can significantly
group natural resources form of dedicated time to the contribute to reach food security of
development asset and creation of income generation nursery workers while providing HHs with
should be supported groups in the nurseries seedlings and planting materials needed to
following the MERET promote households assets building
model – i.e. nursery (HABP).
workers selected from PWs
clients and participating in
shifts
Gullies for productive uses Large gullies are excellent Self-help in the form of SS dams as excellent examples of
(especially those dissecting areas for PWs investments planting, spillway and apron transformation of waste land in highly
private/ cultivated and with a direct benefit to maintenance and stabilization productive lands for multipurpose uses
grazing lands) HHs through Soil and horticulture production.
Sedimentation (SS) bunds
or SS dams and similar
structures construction –
eligible for 100% PW
contribution
Transformation of Some 50-75% PWs Self-help is largely dedicated Enormous opportunities to rehabilitate and
miscellaneous marginal contribution for leveling, to very significant fertility make productive marginal and degraded
lands and large gullies using major pond construction, management and cultivation lands in medium/high rainfall areas.
a group investment terracing, and gully control techniques such as tie ridges
approach (e.g. 20 HHs – requires sufficient and improved pits, diversions
group investment for 5-10 training and support from and establishment of
ha degraded lands complete technical staff. It is an numerous compost pits and
overhaul) integrated approach vegetative fences
successfully applied in
SNNPR and specific
MERET woredas in other
regions.

202
ANNEX 4: ESMF OPERATIONAL SUMMARY

Introduction

The Productive Safety Net Programme (PSNP) includes a community Public Works (PW)
component, aimed at developing productive and sustainable community assets and
infrastructure in areas of chronic food shortage. These PW are intended to make a major
contribution towards environmental transformation, and consequently improved agricultural
productivity and more sustainable livelihoods. Such changes, in conjunction with household
asset building (HAB) and other interventions, are expected to support eventual graduation
from poverty of the beneficiary households.

Given the nature and large number of these public works and HAB activities, it is important
that their location, design and implementation follow good environmental practice.

Many PW and HAB are intended to enhance the environment and increase the productive
capacity of the natural resource base. However, a large proportion of past mass-mobilization
efforts towards environmental rehabilitation in Ethiopia have failed or have been abandoned,
as a result of which the environment has returned to its degraded state, and some projects
designed to protect or enhance the natural resource base have ended up doing the opposite.
Thus such interventions have the potential for adverse environmental impacts on human
populations or the biophysical environment, if their location or design does not follow good
environmental practice.

The instrument commonly employed to ensure that projects are designed to avoid or minimize
negative environmental impacts is Environmental Impact Assessment (EIA).xlii The EIA
requirements of both the Government of Ethiopian and the PSNP donors are addressed
through an Environmental and Social Management Framework (ESMF).

The World Bank financed Food Security Project (FSP) had adopted the PSNP ESMF
procedure for environmental safeguards and FSP will be folded into the HABP component of
the PSNP in Phase III. This in turn brings the applicability of the PSNP ESMF on HABP
interventions. Thus, the ESMF is equally applicable for HABP with respect to environmental
safeguards.

The present document is an Operational Summary of the ESMF. It contains material on those
sections of the ESMF that are concerned with operational procedures. It is designed for
federal, regional, Woreda and Kebele staff concerned with the PSNP program. This ESMF
incorporates a Strategic Environmental Assessment (SEA) which identifies certain cumulative
environmental impacts that might reasonably expect to occur from massive HAB activities.
This summary document also sets out means to avoid such impacts and monitoring means.

The Regional Public Works Focal Units (RPWFU) and the extension services case team are
responsible for ensuring that the ESMF is implemented. At Woreda level, the Woreda Land
and Environmental Office/Environment and Natural resources Case Teams are responsible
for implementing ESMF having technical backstopping from respective zonal units.

Due to differences in organizational arrangements and capacities, some regions or Woredas

may wish to modify the roles and responsibilities set out in this ESMF. If such variations are
necessary, they should be authorized by the Regional Public Works Focal Unit (RPWFU). Any
variations necessary in this ESMF for implementation in pastoral areas will be developed
based on the results of the pastoral pilot areas incorporated in PSNP Phase II.

Public Works –Eligibility Criteria

The ESMF specifies (i) criteria for PW selection at Kebele level, thereby avoiding PW
locations or designs that might give rise to unacceptable or unmanageable impacts, and (ii)

203
simple procedures for PW design screening at Woreda level to verify that there will be no
significant impacts, and to identify PW that may require EIA.

For PW intended to have environmental impacts (such as terracing), or which involve work on
community roads, environmental mitigating measures should be incorporated into the design
following the MoA Community-Based Participatory Watershed Management Guidelines, which
sets the standards for such PW in the PSNP. Thus it is expected that only in exceptional
cases will the screening process find that it is necessary for a PW to be reviewed at a higher
level. In such cases, the Regional Environmental Protection Authority (REPA) is responsible
for deciding whether an EIA is required, and for ensuring that it is conducted to an acceptable
standard.

Public Works projects must be environmentally sustainable. They should be adapted to local
conditions and protect the environment. They should be based on sound technical advice, and
adequate technical supervision should be available to ensure the quality of work.

The selection of activities to be undertaken under the PW component is driven by a

community planning process. Priorities, desirable outcomes and connected activities will vary
based on location. Examples of outcomes and activities in settled cropping areas such as
typically found in Tigray, Amhara, Oromiya and SNNPR are outlined in Annex 4.1.

ESMF Procedure

At PW selection stage, the concerned Development Agent (DA) checks that the PW does not
fall into a specified unacceptable category.

Based on the community watershed management plan, the DA (with Woreda experts
assistance as appropriate) designs the PW, and the design is sent to the Woreda ARD office.
The design is then screened by Woreda NR case team and environmental case team/focal
person (WEFP) who recommend any design modification required to ensure that no
significant negative environmental impacts will occur. In cases where the potential impacts
cannot be adequately addressed at this level, the PW file is tagged as being of environmental
concern. The RPWFU refers any PW tagged in this manner to the RLEPA for attention. In
such cases, the RLEPA will decide whether an EIA of the PW is required, following which the
PW may be approved, the design modified, special plans drawn up (such as an Integrated
Pesticide Management Plan), or the PW may be disapproved.

Figure 1 sets out the ESMF procedure, which consists of six key steps.

Step (i): PW Check: Guidance for the DA

Check each PW as it is selected:

Table (i): PW Not Allowed for the PSNP PW Programme

Feature of Concern Yes No
PW is in, or next to, internationally-disputed territory
PW requires the physical relocation of residents, or involuntary loss of
assets or access to assets
PW incorporates a dam of more than 15 metres in height

If any project has an answer, ‘Yes’, try to modify the design of the project to avoid the feature
of concern. If you are unable to do so, the project will have to be rejected.
When you are working on PW design, look at the Screening list in Step (ii) below. It may
indicate aspects of PW location or design that you would do well to avoid.

Figure 1: Flowchart showing ESMF Process

204
Figure 1: Flowchart showing the First Five steps in ESMF Implementation,
Within the PSNP Planning Process

Regional PW Focal Unit Regional Environmental

(PWFU) Protection Authority (REPA)
Consolidates woreda plans
and Step (v)
Step (iv): PWFU informs Decides if EIA is required,
REPA of any PW of and notifies PWFU
Environmental Concern

Woreda
Council/Cabinet
Approves plans

Woreda Food Security Desk

Woreda Woreda NR Woreda NR

NR Case Team Expert Expert
(NR Case Team) (Env Prot.
(Review & Case
Consolidate plans) Step (iii) Take Team)
action on Liaison
subprojects
requiring special

Kebele Food Security Task Force

Drafts Kebele Annual Safety Net
Plan
DA
Step (i): PW Eligibility Check

Community/Kebele/DA Step (ii): PW Screening

Identification and Design of PW

Step (ii): PW Screening: Guidance for the Woreda NR case team and Environmental Focal
Person/team

After the projects are designed, the Woreda NR and Environmental teams/Focal Person
conduct a screening of each PW, in order to identify any that are of environmental concern.

Firstly, check whether the PW falls into any of the following categories:
Table (ii): PW needing Special Attention

205
 Feature of Concern Yes No
PW involves disposal of medical waste
PW likely to use pesticides or other agro-chemicals
PW incorporates a dam*
PW involves land acquisition, or loss of assets, or access to assets on the land**

Notify any PW with ‘Yes’ above to the Woreda Head or Natural Resources, to ensure that the
necessary procedures are followed, as set out in Annex 4.2.

Secondly, check whether the PW falls into any of the following categories:

Table (iii): PW of Environmental Concern

Feature of Concern Yes No
PW located within National Park or other designated wildlife area or buffer zone
PW located in a Priority Forest Area
PW involves draining of, or disturbance to, a wetland
PW located within a recognised Cultural Heritage site, or World Heritage site
PW incorporates a dam*
PW involves abstraction from rivers draining into the Nile Basin
*If a PW incorporates a dam, special rules are applicable regarding design and construction, and the
PW should also be referred to REPA for environmental purposes. Thus such projects appear in both
Table (ii) and Table (iii).
** If there is a voluntary asset acquisition, make sure that the Voluntary Asset Loss procedure (Annex 4.5) is
fulfilled.

If there is an answer, ‘Yes’ in Table (iii), try to modify the design of the PW to avoid the
problem. If you are unable to do so, mark the PW file ‘PW of Environmental Concern’.

Thirdly, fill in the checklist in Annex 4.3 for the type of PW concerned. The table lists potential
impacts which may require a PW to be modified or earmarked for special attention. Go to the
relevant section and tick (
) what you judge to be the potential for the impacts listed.

If the PW is likely to have impacts from low to moderate, or has only one high potential impact,
try to determine (with the assistance of other Woreda experts if necessary) if it is possible to
incorporate suitable mitigating measures into the design to overcome the problem. Suggested
mitigating measures can be found in the design specifications in the Community Based
Participatory Watershed Development Guideline, or in Annex 4.4 of the present document.
The following PW should be earmarked as a PW of Environmental Concern (in addition to
those already earmarked):
• Any PW expected to cause more than one high potential impact that cannot be easily
corrected by a simple change in the design;
• Any PW with impacts those are difficult to predict, i.e. several ticks under “unknown”.

Note: Be alert to the possibility that the PW may have impacts which are not listed here.
Consult the guidelines of your REPA or Federal EPA if you are not sure.

Make sure that a list of PWs in your Woreda earmarked as being of environmental concern
accompanies the PW files forwarded to the Woreda Food Security Desk.

Step (iii): Notification of PW of Environmental Concern: Guidance for the Woreda Council and
RPWFU

206
The Woreda Council should ensure that the plans forwarded to the RPWFU are accompanied
by each Woreda’s list of Projects of Environmental Concern, if any.

The RPWFU should consult the REPA, who will determine if any of these PW requires an EIA.

Step (iv): Reviewing Notified PW: Guidance for the Regional RLEPA

When reviewing a planned PW that has been listed by the Woreda as being of environmental
concern, note that:
• Not all of these PW necessarily need an EIA. That decision rests with your office;
• PW that involving medical waste, agro-chemicals such as pesticides, a dam, land
acquisition, or loss of land-based assets or access to assets are likely to require special
procedures or a management plan will already have been earmarked for special
attention, following the guidelines in Annex 4.2.
• For abstraction from rivers ultimately draining into the Nile, check with your office on the
requirements of any applicable international agreements under the Nile Basin Initiative.

For each listed PW, you should prepare for the RPWFU the following:

Your decision as to whether an EIA is required;

If EIA is required, the recommended scope of EIA, indicating aspects to be focussed on,
skills required, and likely duration of the EIA. These will constitute ToR for the EIA.

If EIA is not required, guidance regarding any special needs such as technical
guidelines or an environmental management plan;

Step (v): Conducting an EIA: Guidance for the Woreda ARD Office

The Woreda ARD Office, the NR case team, is responsible for ensuring that the required EIA
is conducted, in liaison with the RPWFU. Normally it will establish a team drawing upon
Woreda sector experts, DAs and others as appropriate, working under the Woreda
environmental focal person. Some of the Woreda experts will have received basic training in
EIA in the PSNP PW training course.

The cost of conducting the EIA should be covered by the PSNP, from the administration fund
for that Woreda. The cost will normally be modest, covering expenses above normal daily
work, such as travel and field expenses. The ToR for the EIA will be based on the
recommendations of the Regional EPA.

The EIA report should consist of a brief environmental baseline, impact assessment,
mitigating measures, and recommendations for implementation and monitoring of the
mitigating measures.

EIA guidelines will be available from the Regional RLEPA, supplemented by PSNP PW
training material. A list of common mitigating measures appears in Annex 4.4 of the present
document.

Step (vi): Reviewing EIA Report: Guidance for the Regional LEPA

The Regional LEPA will review the EIA report, and either approves the PW, recommended re-
design, or reject. Reviews should be conducted as quickly as possible, to avoid delay in the
PSNP PW programme. The results of the review should be notified immediately to the
RPWFU.

Every effort should be made to provide advice to modify a project to enable it to become
environmentally sustainable if at all possible, rather than reject it.

Supervision and Process Monitoring

207
Supervision of project implementation will be at Kebele, Woreda and regional levels:
• The DA, with assistance if required from the Woreda line office concerned, will ensure
that the specified mitigating measures are implemented;
• The Woreda land and environmental office/environmental focal person will verify that the
proper procedures are being followed for all the PSNP PW in the Woreda, and that no
significant negative environmental impacts are taking place. Where such impacts may
occur, the Woreda land and environmental office/focal person (EFP) will provide advice
on actions to be taken.
• The RPWFU will monitor, in conjunction with the Regional LEPA:
o Implementation of the ESMF;
o Eeffectiveness of the mitigation measures in avoiding or minimizing adverse
impacts, and the nature and extent of any such impacts.

Final design of the process monitoring and reporting procedures will be completed during the
first quarter of the PSNP Phase III.

Results Monitoring

Monitoring of the implementation of the PW and HAB is an important aspect of ensuring that
the commitment to environmental and social sustainability of the PSNP is being met.

The monitoring plan has two components:

i. Monitoring of the compliance and effectiveness of the ESMF and application of the
recommended PW and long term cumulative impacts to standards;
ii. Impact monitoring: measuring the biophysical and socio-economic impacts of the PW
and HAB, and the contribution of both within the community watershed management
plan.
Some of this information will be provided by the Food Security Programme (FSP) Monitoring
and Evaluation (M&E) system in general and PW M&E system in particular. Other aspects will
be covered by an annual review, assessing compliance and performance, learning lessons
and improving future performance. The Regional EPA should be involved in the review
process.

The Review will be designed in the first quarter of the PSNP Phase III.

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ANNEX 4.1: Examples of Public Works and Expected Outcomes

Typical Projects Expected Outcomes

 Area closures/wood lots Improved land productivity and soil
 Multi-layered/storied agro-forestry fertility restoration
 Physical conservation measures, e.g. hill
side terracing.
 Micro-niche development
 Biological measures
 Mulching of degraded areas
 Removal of invasive plant species
 Gully control Increased land availability
 Land reclamation of extremely degraded
land
 Roads and bridges Improved market infrastructure
 Market yards and storage
 Stock routes
 Stream diversion Improved access to drinking and
 Spring development irrigation water
 Shallow wells
 Small dams
 Water ponds
 Drainage and water canals/conduits
 Infiltration pits
 Seepage control measures
 Vegetative fencing and fodder belts Increased availability of fodder
 Conservation measures
 Fodder seed collection
 Paddock systems
 Water logging control
 Multi-purpose nurseries
 Repairing classrooms and health facilities Improved school and health facilities
 Build latrines
 Build classrooms and health facilities.
 Build child care centre Improved child care-crèches
 Run child care centre

Projects in Pastoralist Areas

In pastoral areas, the emphasis is expected to be on interventions that reduce risk and
increase the resilience of communities to shocks, such as:
• Development of water points (using both traditional and innovative methods);
• Reclamation and rehabilitation of grazing areas and creation of grazing reserves through
improved water harvesting and conservation-based activities (rainfall multiplier systems for
improved pastures, agro-pastoralist systems, irrigation, etc.);
• Agro-forestry systems in grazing reserves to improve aerial pasture and multipurpose
species, and access to fruits, dyes and gums;
• Other initiatives related to livestock trade and livestock health;
• Development of sustained agro-pastoral systems through rehabilitation of crusted and
desertified areas (use of run-off/run-on systems integrated with dry-land conservation
measures); and
• Windbreaks and fodder belts in protected areas.

209
Annex 4.2: Guidelines for Projects requiring Special Attention

1. Crop protection: Integrated Pest Management (IPM)

The Government supports the use of biological or environmental controls and other measures
to reduce reliance on agricultural chemicals. Integrated Pest Management (IPM) refers to a
mix of farmer-driven, ecologically based pest control practices that seek to reduce reliance on
synthetic chemical pesticides. It involves (a) managing pests (keeping them below
economically damaging levels) rather than seeking to eradicate them, (b) relying, to the extent
possible, on nonchemical measures to keep pest populations low; and (c) selecting and
applying pesticides, when they have to be used, in a way that minimizes adverse effects on
beneficial organisms, humans, and the environment.

The following strategy will be used to address the use of agricultural chemicals and to
promote IPM in the PSNP:
• Public works project funds will not be used for the purchase of pesticides or fertilizers.
• Information on acceptable and unacceptable pesticides will be provided to farmers and
Woreda staff to encourage compliance with government policy and international
standards.
• Training in irrigated agriculture, including pest and fertilizer applications, safe chemical
handling and IPM will be provided to communities as required.
• A basic Guide for IPM in the PSNP will be prepared as a menu of practical methods for
reducing the need for pesticides, covering techniques such as:
 Pest-resistant crops varieties
 Use of disease/weed-free planting stock
 Farming practices that increase resistance to pests (proper soil preparation, spacing,
planting, watering, etc.)
 Farming practices that suppress pest populations (crop rotation, cover crops,
intercropping, etc.)
 Traditional manual control of pests (weeding, removing insect pods, etc.)
 Biological controls (predators, pathogens, pheromones, etc.)
 Targeted chemical use (pest scouting/selective treatments)
• Based on the Guide, an IPM Plan will be produced for each small-scale irrigation
scheme likely to utilize agrochemicals.

2. Health Clinic Projects: Waste Management

It is critical that a medical waste management plan for all sub-projects financed under the
PNSP which include the construction or rehabilitation of health facilities (irrespective of their
size). Therefore project proposals involving the rebuilding of rural health clinics should include
provisions for the safe management of medical wastes.

The following strategy will be used to address medical waste issues in the PSNP:
• A Medical Waste Management Guide for Rural Health Clinics will be prepared to assist
subproject design and operations;
• A preliminary environmental audit of clinic rehabilitation proposals will be undertaken by
a qualified professional;
• All proposals will undergo environmental screening to identify environmental concerns
and environmental assessment and mitigation requirements associated with medical
waste;
• All proposals will be required to prepare a Medical Waste Management Plan following
approval of the project by Woreda Council and before implementation. This plan will be
based on the Medical Waste Management Guide. The Medical Waste Management
Plan should address:

210
  The quantity and quality of wastes generated
 The available disposal and treatment options at the site
 Methods to segregate medical waste from general waste
 Internal rules for waste handling, collection and storage
 Clinic responsibilities for waste management
 Proposed landfill development and operations

3. Projects involving Dams

Projects requiring the construction of dams of 15 metres or more in height will not be
approved. Dams of less than 15 metres in height may be approved, subject to a qualified
engineer being responsible for the design and supervision of construction, and the
construction being carried out by a qualified contractor.

4. Projects involving Asset Acquisition or Loss of Access to Assets

While noting that there will be no projects requiring involving relocation, or involuntary loss of
assets or access to assets, it may nonetheless occur that a project may involve, for example,
voluntary loss of use of a piece of land utilised by a pipe, or by a road-widening project, or
voluntary loss of crops to make room for an irrigation scheme. In such cases, those members
who suffer loss of productive resources may be entitled to compensation from the project.
Wherever possible, such compensation should take the form of having their voluntary asset
loss taken into account in the project design.

211
ANNEX 4.3: Guidelines for Screening Projects

Project Screening Checklist

Roads and Footpaths Potential for Adverse Impacts

Non Low Med Hig Unknown
e h
Soil erosion or flooding concerns (eg, due to highly
erodable soils or steep gradients)
Number of stream crossings or disturbances
Wet season excavation
Creation of quarry sites or borrow pits
Significant vegetation removal
Wildlife habitats or populations disturbed
Environmentally sensitive areas disturbed
Cultural or religious sites disturbed
New settlement pressures created
Other (specify):

Drinking Water Projects Potential for Adverse Impacts

Non Low Med Hig Unknown
e h
New access (road) construction
Existing water sources supply/yield depletion
Existing water users disrupted
Downstream water users disrupted
Increased numbers of water users due to improvements
Increased social tensions/conflict over water allocation
Sensitive ecosystems downstream disrupted
Local incapacity/inexperience to manage facilities
Other (specify):

Irrigation Projects Potential for Adverse Impacts

Non Low Med Hig Unknown
e h
Existing water sources supply/yield depletion
Existing water users disrupted
Downstream water users disrupted
Water storage requirement and viability (soil permeability)
Vulnerability to water logging (poor drainage)
Vulnerability to soil and water salinization
Sensitive downstream habitats and waterbodies
Environmentally sensitive areas disturbed
Cultural or religious sites disturbed
Increased agric. chemicals (pesticides, etc) loading
Increased social tensions over water allocation
Local incapacity/inexperience to manage facilities
Local incapacity/inexperience with irrigated agriculture
Other (specify):

212
Area Closure and SWC activities Potential for Adverse Impacts
Non Low Med Hig Unknown
e h
New access (road) construction
Wet season soil disturbance
Potential for debris flows or landslides
Sensitive downstream ecosystems
Removal of native plant/tree species
Introduced plant/tree species invasion of native species
Wildlife habitats or populations disturbed
Environmentally sensitive areas disturbed
Insufficient capacity to manage catchment ponds
Insufficient capacity to prohibit or control open grazing
Insufficient capacity to manage new plantations/pastures
Other (specify):

Infrastructure such as School and Health Facilities Potential for Adverse Impacts
Non Low Med Hig Unknown
e h
New access (road) construction
Alteration of existing drainage conditions
Vegetation removal
Wet season soil disturbance
Construction materials impact on adjacent forests/lands
Quarries and borrow pits created
Cultural or religious sites disturbed
Water supply development effects in available supply
Effect of sanitation development on existing disposal
sites
Effects of medical waste on existing disposal system
In-migration/settlement induced by facilities development
Local incapacity/inexperience to manage facilities
Other (specify):

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 ANNEX 4.4: Typical Mitigating Measures

The following mitigation measures may be required to help avoid or reduce the potential
adverse impacts. These measures may sometimes be necessary in addition to the measures
built into the project design in the MoA Community Based Participatory Watershed
Development Guideline. Note that in addition, the REPA may be able to provide region-
specific lists of typical mitigating measures.

Potential Impacts Mitigation Measure

Roads and Footpaths

Soil erosion/flooding concerns Drainage control measures to be included within construction plans
Number of stream Minimize water crossings in road location and alignment
crossing/disturbances
Wet season excavation Schedule construction for the dry season
Quarry sites/borrow pits Re-contour and rehabilitate sites/pits and avoid collection of standing water
created
Vegetation removal Minimize temporary or permanent removal of natural vegetation
Wildlife habitats or populations Identify and avoid effects on habitats and migration routes of key species
disturbed
Environmentally sensitive Identify and avoid forest, riparian and wetland habitats with particular
areas disturbed biodiversity
Land Acquisition Avoid occupied land. Prepare procedures to ensure equitable resolution.
Private assets displaced Avoid occupied land. Prepare procedures to ensure equitable resolution.
Informal land uses displaced or Avoid interference with informal land users, and take measures to provide
access restricted access to alternative lands or resources
Cultural or religious sites Identify and avoid cultural or religious sites. If disturbance unavoidable,
disturbed agreement on mitigating measures must first be reached with stake holders
(eg Community, mosque, church). If excavation encounters archaeological
artifacts, halt construction and notify relevant authorities.
New settlement pressures Ensure road development is coordinated with local land use plans and discuss
created with the kebele
Other (specify):

Irrigation Projects
Existing water sources supply/yield
depletion
Existing water users disrupted
Downstream water users disrupted
Water storage requirement and
viability (soil permeability)
Vulnerability to water logging (poor
drainage)
Vulnerability to soil and water
salinization
Sensitive downstream habitats and
water bodies
Environmentally sensitive areas
disturbed
Cultural or religious sites disturbed
Assess water supply and existing demands, and manage sustainability
Identify and avoid negative impacts on existing water users in the system
design
Identify and avoid effects of diversion or extraction on downstream users
in the system design
Test the soil percolation and ensure and impermeable layer in the
structure design
Assess soil characteristics and either avoid or provide drainage for areas
prone to waterlogging
Irrigation expert to assess the potential for high salinity and ensure
appropriate irrigation practices to minimize impacts
Identify and avoid effects of diversion or extraction on downstream
ecosystems that depend on the surface or groundwater supply
Identify and avoid forest, riparian and wetland habitats with particular
biodiversity.
Identify and avoid cultural or religious sites. If disturbance unavoidable,
agreement on mitigating measures must first be reached with stake
holders (eg Community, mosque, church). If excavation encounters

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Irrigation Projects
Increased agricultural chemicals
(pesticides, etc) loading
Land Acquisition
Private assets displaced
Informal land uses displaced or
access restricted
Increased social tensions/conflict
over water allocation
Local incapacity/inexperience to
manage facilities
Local incapacity/inexperience with
irrigated agriculture
Other (specify):
Area Closure and SWC Activities
New access (road) construction
Wet season soil disturbance
Potential for debris flows or
landslides
Sensitive downstream ecosystems
Removal of native plant/tree
species
Introduced plant/tree species
invasion of native species
Wildlife habitats or populations
disturbed
Environmentally sensitive areas
disturbed
Land Acquisition
Private assets displaced
Informal land uses displaced or
access restricted
Insufficient capacity to manage
catchment ponds
Insufficient capacity to prohibit or
control open grazing
Insufficient capacity to manage new
plantations/pastures
Other (specify):
Drinking Water Projects
New access (road) construction
Existing water sources supply/yield
depletion
Existing water users disrupted
Downstream water users disrupted
Increased numbers of water users
215
archaeological artifacts, halt construction and notify relevant authorities.
Develop an integrated pest management strategy and provide training to
farmers
Avoid occupied land. Prepare procedures to ensure equitable resolution.
Avoid occupied land. Prepare procedures to ensure equitable resolution.
Avoid interference with informal land users, and take measures to provide
access to alternative lands or resources
Establish a water users committee through the kebele and equitable rules
for water allocation
Establish an operations and maintenance manual, authority and provide
training to persons responsible for operating the system
Provide training to farmers on sustainable irrigated agriculture
Ensure drainage controls on new roads and rehabilitate temporary access
following subproject implementation
Schedule activities for the dry season
Prepare a watershed plan that identifies and address drainage/slope
instability
Identify and avoid effects of diversion or dams on downstream
ecosystems
Protect and encourage regeneration of endemic species
Ensure non-native species are compatible with native species
Identify and avoid effects on habitats and migration routes of key species
Identify and avoid activity in forest, riparian and wetland habitats with
particular biodiversity
Avoid occupied land. Prepare procedures to ensure equitable resolution.
Avoid occupied land. Prepare procedures to ensure equitable resolution.
Avoid interference with informal land users, and take measures to provide
access to alternative lands or resources
Establish a water users committee, where appropriate, and/or kebele
bylaws and provide training to water users
Establish a watershed committee, where appropriate, and/or kebele
bylaws and provide alternative sources of fodder
Establish a local committee, where appropriate, and/or kebele bylaws and
provide appropriate controls
Ensure drainage controls on new roads and rehabilitate temporary access
following subproject implementation
Assess water supply and existing demands, and manage sustainability
Identify and avoid negative impacts on existing water users in the system
design
Identify and avoid effects of diversion or extraction on downstream users
in the system design
Assess water supply and existing demands, and manage sustainability
Drinking Water Projects
due to improvements
Increased social tensions/conflict
over water allocation
Sensitive ecosystems downstream
disrupted
Land Acquisition
Private assets displaced
Informal land uses displaced or
access restricted
Local incapacity/inexperience to
manage facilities
Other (specify):
School and Health Projects
Alteration of existing drainage
conditions
Vegetation removal
Wet season soil disturbance
Construction materials impact on
adjacent forests/lands
Quarries and borrow pits created
Water supply development effects
in available supply
Sanitation development effects on
existing disposal fields
Medical waste increase effects on
existing disposal system
Land Acquisition
Private assets displaced
Cultural or religious sites disturbed
Informal land uses displaced or
access restricted
In-migration/settlement induced by
facilities development
Local incapacity/inexperience to
manage facilities
Other (specify):
216
Establish a water users committee through the kebele and equitable rules
for water allocation
Identify and avoid effects of diversion or dams on downstream
ecosystems
Avoid occupied land. Prepare procedures to ensure equitable resolution.
Avoid occupied land. Prepare procedures to ensure equitable resolution.
Avoid interference with informal land users, and take measures to provide
access to alternative lands or resources
Establish a local committee, where appropriate, and/or kebele bylaws and
provide appropriate controls
Drainage control measures to be included within construction plans
Minimize temporary or permanent removal of natural vegetation
Schedule construction for the dry season
Avoid taking construction materials in an unmanaged manner
Re-contour and rehabilitate sites/pits and avoid collection of standing
water
Identify and avoid negative impacts on existing water users in the system
design
Ensure the necessary facilities and capacity for upgraded facilities,
consistent with health department design standards
Prepare a waste management plan for major facility upgrades; ensure
sufficient facilities and capacity for medical waste
Avoid occupied land. Prepare procedures to ensure equitable resolution.
Avoid occupied land. Prepare procedures to ensure equitable resolution.
Identify and avoid cultural or religious sites. If disturbance unavoidable,
agreement on mitigating measures must first be reached with stake
holders concerned (eg. Community, mosque, church). If excavation
encounters archaeological artifacts, halt construction and notify relevant
authorities.
Avoid interference with informal land users, and take measures to provide
access to alternative lands or resources
Control unplanned settlement near the facilities
Establish/strengthen local committees, where appropriate, through the
kebele and provide appropriate procedures and training to maintain the
facilities
ANNEX 4.5: Principles of the Voluntary Asset Loss Procedure

This Voluntary Asset Loss Procedure applies when a household is making a voluntary
donation of assets or access to assets in exchange for subproject benefits or services. In the
context of Ethiopia, where all land is owned by the Government, “land loss” is taken to mean
“loss of land use”.

In cases where household in effect has no choice, due to their being no alternative site for the
subproject, loss of land would be regarded as involuntary. Such cases are not eligible as
PSNP PW subprojects, and in any case the Voluntary Asset Loss Policy would not apply.

Furthermore the procedure is based on the following principles:

(i) Arrangements for voluntary resettlement must involve no physical displacement, and
no significant adverse impacts on income;
(ii) Voluntary asset loss cannot exceed 10% of an individual’s holdings;
Because determining informed consent can be difficult, the following criteria are suggested as
guidelines:
(i) The land required to meet technical project criteria must be identified and agreed by
the affected community, not only by line agencies or project authorities;
(ii) The land in question must be free of squatters, encroachers, or other claims or
encumbrances;
(iii) Verification of the voluntary nature of asset donations must be obtained from each
person donating the use of land;
(iv) If any loss of income or physical displacement is envisaged, verification of voluntary
acceptance of community-devised mitigatory measures must be obtained from those
expected to be adversely affected.
(v) If community services are to be provided under the project, land title must be vested
in the community, or appropriate guarantees of public access to services must be
given by the private titleholder.
(vi) Grievance mechanisms must be available.

1. Voluntary Asset Loss Procedure

1.1. When each subproject is selected by the community during the annual community
planning, the Development Agent (DA) checks the subproject site, conducts a
preliminary design, and carries out Screening according to the principles of the
Environmental and Social Management Framework (ESMF).

1.2. The DA Screening procedure includes elimination of any subproject likely to involve
involuntary loss of assets or access to assets;

1.3. In the case of potential voluntary loss of assets or access to assets, the DA may still
approve the subproject (subject to the other Screening requirements), but notifies the
Wereda Natural Resources (NR) Expert in the NR Case Team (hereafter referred to as
the Wereda NR Expert) that the subproject has been earmarked as a subproject
requiring Special Attention.

217
 1.4. When the Wereda NR Expert receives the subproject file, he or she passes it on to the
Wereda NR Case Team for review and consolidation into the kebele plan, but also
triggers the following procedure:

1.4.1. The Wereda NR Expert contacts the DA responsible for the Screening, and
requests the DA to meet with the potential voluntary asset donor(s).
1.4.2. After satisfying him/herself that the donor is making the donation on a voluntary
basis, the DA arranges a meeting between the donor(s), the DA, the Chair of the
Kebele Land Administration Committee, and the Wereda NR Expert.
1.4.3. At that meeting the Wereda NR Expert satisfies him/herself that the donation is
being made on a voluntary basis, and that each donor understands the
procedure being followed.
1.4.4. The Voluntary Asset Loss Form is then completed, signed and dated in four (4)
copies by the concerned parties.
1.4.5. One completed copy is filed at the Kebele Land Administration Office; one at the
DA’s office, one remains with the donor, and one is filed at the Wereda NR Case
Team office.
1.5. In the event of a grievance, complaint or dispute being lodged with the Kebele Land
Administration Committee in respect of this donation, the case is heard by the Land
Use Administration Committee. If the matter cannot be resolved at that level, it will be
referred to the Social Court of the Kebele. If not resolved at that level, it will be referred
to the Wereda Civil Court, and will thus enter the regular legal system of the Republic of
Ethiopia.

218
 Productive Safety Net
Voluntary Asset Loss Form

Region: ………………. Wereda: ……………………… Kebele: ………………………

Community: ………………………………………………………………………………

PW Subproject Name: …………………………………….. …………………………….

I/we , ……………………………………… [name(s)] hereby declare that I/we are donating use
of the following land/asset for the benefit of the above-named PSNP Public Works subproject:

Description of land/asset ) or access to asset): Sketch Plan showing donation (attach

separate sketch if necessary):

Location:

Area:

Land Use certificate Number (if any):

I/We also confirm that:

1. The land or asset being donated does not exceed 10% of my/our asset holdings.
2. The community has identified, and is satisfied that this land/asset donation is required
by the subproject.
3. The land being donated is free of squatters, encroachers, or other claims or
encumbrances.
4. The subproject is not site-specific; I/we had a free choice as to whether to make this
donation or not.
5. I am satisfied, and hereby confirm, that any loss suffered by me/us as a result of this
donation is compensated for by:
(i) The benefits I/we will receive from the subproject (tick:…..), or
(ii) Land that I/we have received in compensation, Land Use Cert. No: (tick:….).
6. This donation is being made entirely on a voluntary basis.
7. I hereby grant community access rights to the land donated for the use of the
subproject.

219
Signed (donor) …………………………….. Name: ………………………… Date: ….....

Signed (spouse) ……………………………..Name: …………………………..Date: ……

Signed …………………………………..Name: …………………………..Date: ……

(Witness: Woreda Natural Resources Expert)

Signed …………………………………..Name: …………………………..Date: ……

(Witness: Development Agent)

I hereby witness the above declaration, confirm the contents thereof, and hereby further
confirm that the community has land use rights to the land donated, and that guarantees of
public access has been given by the donor, as required.

Chair, Kebele Land Administration Committee …---------Kebele

220
Matrix of Potential Environmental Impacts and Mitigating Measures (Indicative Example)

Activities: Development of Irrigation Potential
Potential Impacts (i) Extensive use of irrigation may result in
salinisation and consequent soil encrustation.
(ii) Extensive use of irrigation may result in
depletion of ground water
(iii) Shallow wells and water harvesting ponds
may pose a hazard to human and animal life,
especially children.
Cultivation under
Agrochemicals
(i) Uncontrolled or careless use of
agrochemicals may pollute the
groundwater, resulting in health
hazards for human and animal life,
and may pose a hazard for bees.
Animal Feed Production
(i) The reduction in the availability
of sorghum residue for household
energy may cause a significant
increase in the use of animal dung
or fuelwood, with subsequent loss
of dung for fertilizer, and
deforestation.
Animal Purchase and
Fattening
(i) Uncontrolled or careless
use of livestock veterinary
drugs or chemicals may
pollute the groundwater,
resulting in health hazards for
human and animal life.
(ii) Uncontrolled grazing will
cause environmental
degradation.

Mitigating Measures (i) As drip and sprinkler irrigation will be widely (i) An Integrated Pesticide (i) The likely depletion of household (i) A Drugs and Chemicals
used, this is not expected to be a major issue. Management (IPM) plan covering energy supply will be determined Management plan will be
However, in areas where it may be a problem, use of a combination of natural by the wereda agricultural office, drawn up and implemented,
measures will be implemented including methods and agrochemicals will be which is engaged in a parallel covering acquisition,
balanced surface water use, choice of salinity- drawn up and implemented, programme to propagate the use of application, accidents, storage
tolerant crops, and spate irrigation for flushing covering acquisition, application, energy-saving stoves. and disposal of livestock
as appropriate. accidents, storage and disposal of veterinary drugs and
(iii) It is intended that there should be water- agrochemicals. In addition, the New fuelwood and multipurpose chemicals.
table reduction, to reduce extent of location of use will take into account crops will be introduced, to provide (ii) This activity will be allowed
waterlogged land. Water-table levels will be proximity to PAs dependent on additional household energy only if there is adequate
monitored by wereda agric. office. apiculture. sources to the extent that proves forage available from Area
(iii) The project will recommend for shallow necessary. Closure or from the animal
wells: cover or protection, and designs feed plant.
enabling anyone who falls in to climb out. For
ponds: protection, and safer designs.

221
Monitoring Mitigating Measures for Medium-Term Environmental Impacts (Indicative Example)

Activities Development of irrigation potential of the Cultivation with Agrochemicals Expanded Animal Use of Livestock Drugs & Chemicals
PLW Feed Programme
Likely Extensive Shallow wells and water Uncontrolled or careless use of agrochemicals The reduction in Uncontrolled or careless use As a result of
Impacts use of harvesting ponds may leading to pollution of groundwater, leading to the availability of may pollute groundwater, improved livestock
irrigation may pose a hazard to human health hazards for human and animal life. sorghum residue leading to health hazards for health, numbers
result in and animal life, especially for household human and animal life. may increase,
salinisation children. energy may cause leading to
and a significant overgrazing.xliii
consequent increase in the use
soil of animal dung or
encrustation. fuelwood, with
subsequent loss of
dung for fertilizer,
and deforestation
Mitigating Drip and Recommend for shallow Draw up an Implemen Take into Propagate the use Draw up a Implement Encourage
Measures sprinkler wells cover or protection, Integrated t IPM plan account of energy-saving Drugs and DCM Plan enhanced
irrigation will and designs enabling Pesticide proximity to stoves and plant Chemicals community-based
be anyone who falls in to Management kebeles multipurpose trees Management veterinary service
encouraged climb out. For ponds: (IPM) plan dependent (MPTs) will be (DCM) plan, delivery
protection, and safer covering on introduced covering mechanisms,
designs. natural apiculture, acquisition, awareness and
methods, and when application, market linkages, to
acquisition, determining accidents, ensure env.
application, location of storage and sustainable
accidents, use disposal of livestock
storage and livestock production.
disposal of veterinary drugs
agrochemicals. and chemicals.
Indicator Area under Number of shallow wells Existence of IPM plan Coverage of Number of stoves Existence of DCM plan DAs and WoA are
drip/sprinkler with cover/safely IPM plan being topic in distributed and DCM Plan being promoting these
irrigation designed ponds; used by location plan. MPTs planted used by initiatives in FTCs
DAs and DAs and
farmers farmers
Who WoA/RDO WoA/RDO WoA/RDO WoA/RD WoA/RDO WoA/RDO WoA/RDO WoA/RDO WoA/RDO
collects the O
data?
How? Collect data Planning office Check whether Make spot Check Reports from Check whether Make spot Check FTC
from RDO reports/Visits IPM plan is checks on activity Planning office DCM plan is checks curriculum
published site design published

222
 document
When? Annual Annual Annual Annual Before Annual Annualxliv Annual Annual
activity starts
Where? WoA/RDO WoA WoA/RDO Activity RDO/IPMS WoA IPMS Office Activity Wereda FTC Office
site sites

Monitoring Mitigating Measures for Long-Term Environmental Impacts (Indicative Example)

Activities Expanded Irrigated crop production
Potential Unparalleled success of
Cumulative irrigated cotton and
Impacts sesame-growing
programme may result
in uncontrolled growth in
boreholes beyond the
presently planned IPMS
interventions, leading to
a significant reduction in
the water-table.
Mitigating Water-table levels will
Measures be monitored by WoA.,
and Wereda Extension
Unit will restrict grants
and credits for new
household irrigation
schemes.
Indicator Drop down of water
table in cm, and Numbor
of new micro-irrigation
schemes approved.
Who WoA/RDO
collects?
Peri-urban dairy The general
encouragement of
cash crop
production
Loss of species diversity, leading to Extensive use of Uncontrolled adoption of zero-grazing in peri- Crop production
undue narrowing of the genetic base of irrigation may result in urban and high-density urban areas, leading to imbalance, leading to
the crop concerned. This could mean, for depletion of ground health hazards, noise and smell pollution. food shortages within,
example, that in the event of an outbreak water or outside, the PLW.
of disease, there is no alternative strain
available.
Regional or Wereda Agricultural Office Water-table levels will The project will liaise with the urban Public Health Ensure that the
should monitor the production rates of be monitored by WOA. authority and will include their representative in Wereda Agriculture
new crop varieties, and should liaise with training workshops, in order that any regulations Office and the
the Biodiversity Institute to ensure that the controlling the keeping of cattle in the urban areas Regional Food
gene banks contain alternative varieties. are recognized and enforced. Security Bureau have
planning systems to
address such a trend
before it becomes a
problem.
Production Inclusion of alternative Take physical Participation of Evidence that Existence of
rates of new varieties in Biodiversity measurement on drop Public Health regulations are being Wereda/Regional food
crop varieties, Institute gene bank down of water table on representatives in enforced production planning
sample wells training workshops system
Regional or Regional or Wereda WoA WoA/RDO WoA/RDO WoA/RDO
Wereda Agricultural Office
Agricultural

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 Officer
How? Meet Wereda Crop Collect market Collect gene bank Reports Check workshop Physical observation Meet
Head survey data data participation list Wereda/Regional
Crop Head
When? Annual Annual Annual Annual Annual Annual Annual
Where? Wereda Agric Office Wereda Office Biodiversity Institute WoA/RDO IPMS Office Urban and peri-urban Wereda/Regional
areas Agric Office

Monitoring Mitigating Measures for Impacts of Environment on Household Activities (Indicative Example)

Environmental Extended Periods of Drought Flooding and change of course by seasonal rivers Rising Water Table
Phenomenon
Potential Reduced food and feed availability, Reduction in crop and livestock productivity, Conducive environment for malaria to Detrimental impact on human
Impacts leading to deterioration in breed, and spread of water borne and animal heath and a
household livelihoods. diseases. reduction in cultivatable land
Mitigating The encouragement of individual Reclamation Training of farmers Implementation of Encourage use Encourage use of Expanded use of irrigation for
Measures water harvesting ponds and river of abandoned in improved land improved land of treated boiled water/tap cotton and fruits will help to
diversion schemes. land management tools. management tools. mosquito nets water where reduce the water-table
available
Indicator Number of individual water Area of land No. of farmers No. of farmers using Number of Number of Measure increase of water
harvesting ponds and river reclaimed this receiving training on improved land mosquito nets households using table
diversion schemes operational in year improved land management tools distributed tap water
the wereda management tools
Who collects? WoA/RDO WoA/RDO WoA/RDO WoA/RDO WoA/Wereda WoA/Wereda Health WoA/RDO
Health Office Office
How? Data check on water harvesting Physical Collect workshop Physical observation Collect data Collect data from Take physical measurement
ponds and river diversions observation participation data – sample survey from wereda wereda on sample wells
and data check Health/Planning Health/Planning
Office reports Office reports
When? Annual Annual Annual Annual Annual Annual Annual

Where? Wereda ARD Office On site and IPMS Office Wereda sites WoA WoA WoA
Wereda Agric.
Office

224
Summary of Mitigating Measure Indicators (Indicative Example)
Indicator Who How When Where
collects
Monitoring Mitigating Measures (Medium-term)
Area under drip/sprinkler irrigation WoA/RDO Collect data from RDO Annual Wereda Office of Agr.
Number of shallow wells with cover/safely designed pond WoA/RDO Reports/visits Annual Wereda Office of Agr.
Existence of IPM plan WoA/RDO Check whether IPM plan published Annualxlv WoA/IPMS Office
IPM plan being used by DAs and farmers WoA/RDO Make spot checks on site Annual Activity site
Existence of DCM Plan WoA/RDO Check whether PCM plan published Annualxlvi WExt Unit
DCM plan is normally being used by DAs and farmers WoA/RDO Make spot checks Annual Activity sites
DAs and WoA are promoting these initiatives in FTCs WoA/RDO Check FTC curriculum Annual Wededa FTC
Monitoring Mitigating Measures (Long-term)
Drop down of water table in cm WoA/RDO Meet wereda crop head Annual Wereda Office of Agr.
Production rates of new crop varieties Regional/WoA Collect market survey data Annual Wereda Office of Agr.
Inclusion of alternative varieties in biodiversity Ins. Gene bank Regional/WoA Collect gene bank data Annual Biodiversity Institute
Measure drop down of water table from sample wells WoA Reports Annual WoA/RDO in PLW
Participation of public health representatives in training workshops WoA/RDO Check workshop participants list Annual Reg or Wereda Offices
Evidence that regulations are being enforced WoA/RDO Physical observation Annual Urban and Peri-urban areas
Existence of Wereda/Regional food production planning system WoA/RDO Meet Wereda/Regional Crop Heads Annual Wereda/Regional Agric Office
Monitoring Mitigating Measures for Potential
Impact of Environment on the Project
No. of farmers receiving training on improved land management tools WoA/RDO Collect workshop participation data Annual IPMS Office
No. of farmers using improved land management tools WoA/RDO Physical observation – sample survey Annual Wereda sites
Number of mosquito nets distributed WoA/wereda Collect data from wereda Annual Wereda Office of Agr.
Health office Health/Planning office reports
Number of households using tap water WoA/wereda Collect data from wereda Annual Wereda Office of Agr.
Health office Health/Planning office reports
Take physical measurement on sample wells WoA/RDO Take physical measurement on sample Annual Wereda Office of Agr.
wells

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 ANNEX 5: PROCUREMENT PLAN

Format for the preparation of simple procurement Plan (PP)

# Description of Unit Quantity Estimated Procurement Prior/ Invitation Bid Contract Contract
procurement amount method post date closing signature completion
items review date date date

226
ANNEX 6: PSNP CLIENT CARD

227
 ANNEX 7: PSNP ROLLING TRAINING PLAN
(indicative number of trainees)

Training July Aug Sep Oct Nov Dec Jan Feb Mar April May June
Awareness- Awareness
raising creation
(1 day) training days
ToT 1 - 30
trainees
PIM ToT 2 - 408
(4 days) trainees
Main Prog -
266 trainees
ToT 1 (3
days) - 30
trainees
Targeting
ToT 2 - 260
(3 days)
trainees
Main Prog
200 trainees
ToT 1 - 30
trainees
Watershed
ToT 2 - 260
Management
trainees
(14 days)
Main Prog -
150 trainees
ToT 1 - 30
trainees
M&E ToT 2 - 360
(2 days) trainees
Main Prog
200 trainees
ToT 1 - 30
Procurement trainees
(3 days) ToT 2 - 260
trainees

228
 Main Prog
200 trainees
ToT 1 - 30
trainees
Financial
ToT 2 - 310
Management
trainees
(3 days)
Main Prog
200 trainees
Basic Skills Main Progr
(14 days) 255 trainees

229
ANNEX 8: PSNP CLIENT BILL OF RIGHTS AND RESPONSIBILITIES

230
ANNEX 9: REGIONAL PSNP GRADUATION BENCHMARKS

Region Average Asset Value

Oromiya Birr 19,187 per householdxlvii
Tigray Birr 5,600 per capita
Amhara Birr 4,200 per capita
SNNP Birr 2,998 per capita

231
Endnotes

i The contractual agreements between the NGO and USAID may require slightly different
arrangements and processes than those described in this PIM. In this case, the NGO and
woreda will discuss the issue first with USAID and identify issues and possible solutions. If
necessary, these situations will be brought to the attention of the JSOC on a case-by-case
basis. Any proposed special arrangements for an NGO to bypass or modify a particular PIM
directive, when necessary, will be submitted by USAID to JSOC for consensus and then the
agreement reached will be disseminated by DRMFSS and USAID to the affected woredas
and Regions.
ii
Food insecurity is defined as a lack of access, at all times, to enough food for an active,
healthy life. Chronic food insecurity is the persistence of this state over time such that
households are generally unable to meet their own food needs.
iii
Graduation from the PSNP is defined as a household being able to feed itself for 12
months a year, in the absence of programme support, as well as being able to withstand
modest shocks
iv
PSNP 2010-2014 Programme Document, page 8
v
For the avoidance of confusion, please note that in terms of World Bank APL loans, PSNP
Phase 2 referred to here is funded by APL III, since PSNP Phase 1 was divided into APL I
and APL II in lending terms.
vi
As described in the PSNP programme design document, p16
vii
See section 3.6 on coordination for some examples of these important complementary
processes for graduation
viii
Based on definition of PSNP graduation in the PSNP Graduation Guidance Note
ix
New Coalition for Food Security

232
x
The PSNP provides a cash transfer to households that can purchase 3 kgs of the cheapest
cereals on the market.
xi
An anticipated level as defined by maize prices in a given price band will be determined
each year following the wage rate study (e.g. for 2009 the price band is 300-350 birr per
quintal on average in PSNP markets). PSNP Mid-Term Review Aide Memoire October 2008.
xii
This was done in 2008.
xiii
This is the planning tool that assumes all transfers are provided in cash.
xiv
Exceptions are possible in the case of land belonging to poor women headed households.
This is discussed in further detail in Annex 3.
xv
For woredas that are created through ‘administrative splitting’ of PSNP woredas, additional
capacity building activities are required to ensure that all minimum capacities are in place for
the first year of programme implementation.
xvi
Although, as stated above, the actual funds could be used for expenditure eligible under
either the capital or admin budgets
xvii
At present 20% of the budget is allocated to capital and admin, with 15% for capital and
5% for admin i.e. a 75%:25% split. It is proposed that the Performance Reward Grant can be
spent any way the woreda sees fits along as the costs are ‘allowable’. Therefore 100% of
the reward grant could be used for capital expenditure, or 80% on administration.
xviii
A full list of allowable costs can be found on in the chapter on the PSNP Budget.
xix
This information is required to determine in which months payments should have be made
because of the decision in the PSNP programme document to all public works to be carried-
out in any month.
xx
The audits from the previous year will apply.
xxi
Source: HELM report and revised by MOFED.
xxii
For Harar and Dire Dawa minimum of 5 technical staff.

233
xxiii
Source: HELM report
xxiv
This Government section has different titles in different regions. In this document it will
be referred to as the Natural Resource Management Core Process (NRMCP).
xxv
Childcare support mechanisms must be available at each work site or in the village to
free (i) adult-bodied labour and (ii) girls (and boys) of school-going age. Depending on the
needs, each public-work team should assign one-two workers to take care of young
children. To ensure proper care of young children, basic equipment should be made
available like weaved mats to be used as temporary floor and shadow, clean containers of
water for drinking and consumption, toys, etc.
xxvi
The post-BPR structure varies in some Regions. The terms used here refer to the most
commonly used structure.
xxvii
With the exception of planning and approval stages which have been merged to make
presentation clearer
xxviii
Women typically travel less, and keep younger more vulnerable children with them.
Households might, in these circumstances, be encouraged to agree that women should
receive the PSNP payment when their husbands, or other male household members, travel.
xxix
In the case that there is only one adult, the Client Card carries his or her photograph and
signature.
xxx
July 2009 APL III Appraisal Aide Memoire.
xxxi
Note that this only applies to measures to address transitory needs as a result of specific
shocks.
xxxii
Another important, but secondary, purpose of M&E is accountability for the resources
(both government and donor) put into the programme

234
xxxiii
According to the New Coalition for Food Security food security is defined as: “access by
all people at all times to sufficient food for an active and healthy life.”
xxxiv
Direct Support clients of the PSNP are not expected to graduate from the Food Security
Programme.
xxxv
It is anticipated that this will be met through the launch of a social protection policy
framework and associated programmes.
xxxvi
These are defined as PSNP woredas.
xxxvii
Food consumption: Households have sufficient food for all 12 months, including the
support of PSNP transfers.
xxxviii
Food access is defined as the ability to consume adequate food (through production-,
market- or transfer-based entitlements) to meet household needs.
xxxix
This is a measure of perceptions, as baseline data on use of services does not exist at
present.
xl
Availability is defined as follows: improved clean water sources are located closer to
households than former water sources or there are a greater number of improved water
sources in a given locality; fodder is present in greater quantities in closer proximity than had
been previously.
xli
Graduated households may access successive HABP loans within one year of graduating
from the PSNP. They will continue to receive technical support until the loan is repaid.
xlii
In keeping with Ethiopia’s Environmental Impact Assessment proclamation, the term
‘environment’ in this context covers biophysical, social and cultural heritage impacts.
xliii
It is expected that as livestock marketing is enhanced, market take-off will increase and
intensive livestock management will be encouraged. As a result, this impact is expected to
have a low probability.

235
xliv
Once publication of the DCM plan has been verified, subsequent annual checks should
record reprints, updates, etc.
xlv
Once publication of the IPM plan has been verified, subsequent annual checks should
record reprints, updates, etc.
xlvi
Once publication of the DCM plan has been verified, subsequent annual checks should
record reprints, updates, etc.
xlvii
In addition to this Regional benchmark, the criteria for selecting beneficiaries for
graduation are: a) being able to feed himself for 12 months, b) having benefited from other
food security programmes, c) able bodied, d) accumulation of assets greater or equal to the
benchmark, which is totally owned or debt free, and, e) re-paying 75% of the loan received.
Source: Oromiya Food Security DPPA. Productive Safety Net Programme Graduation
Guidance Note. January 2000.

236