VZCZCXYZ0002
RR RUEHWEB

DE RUEHNR #2369/01 1501247
ZNR UUUUU ZZH
R 301247Z MAY 06
FM AMEMBASSY NAIROBI
TO RUEHC/SECSTATE WASHDC 2081
INFO RUEHBS/AMEMBASSY BRUSSELS 1684
RUEHRO/AMEMBASSY ROME 4929
RUEHGV/USMISSION GENEVA 3937
RHEHNSC/NSC WASHDC

UNCLAS NAIROBI 002369 
 
SIPDIS 
 
AIDAC 
 
SIPDIS 
 
USAID/DCHA/AA FOR WGARVELINK, LROGERS 
DCHA/OFDA FOR GGOTTLIEB, CGOTTSCHALK, ATRACY, KCHANNELL 
DCHA/FFP FOR JDWORKEN, JDRUMMOND, TANDERSON, TMACRAE 
AFR/EA FOR JBORNS, SMCCLURE 
ROME FOR FODAG 
GENEVA FOR NKYLOH 
BRUSSELS FOR PLERNER 
NSC FOR JMELINE 
 
E.O. 12958: N/A 
TAGS: DJ ER EAID SO
SUBJECT:  BI-LATERAL MEETING BETWEEN USAID/REDSO/FFP AND 
WFP OPERATIONS DIVISION KAMPALA (WFP/ODK). 
 
¶1. Summary: On May 3, 2006, USAID/REDSO/FFP and the 
regional WFP Operations Division Kampala (WFP/ODK) held 
their third annual bi-lateral meeting.  These annual 
meetings are designed to provide a forum for each party 
to discuss topics of mutual concern in managing the 
nearly 1.6 million MTs of Title 2 food aid that are 
programmed in the East and Central Africa region every 
year. Discussions centered on new developments within 
 
each organization, Food for Peace and WFP; logistics 
clusters, regional pipeline and procurement; WFP country 
programs in the Great Lakes, the Democratic Republic of 
Congo, Eritrea, Djibouti and Somalia. Specific follow-up 
action points of the meeting follow. 
 
 
Highlighted Changes in USAID and WFP/ODK 
 
 
¶2.  REDSO/FFP Director and WFP/ODK Director highlighted 
significant changes in their respective organizations. 
USAID shared the following: 
 
  New USAID Administrator and closer programming with 
the U.S. Department of State. 
  New model of coordination between USAID and the U.S. 
Department of Defense. 
  New Food for Peace Director and REDSO East Africa 
Mission Director. 
  Famine Fund projects for the Horn of Africa combating 
Cassava Mosaic Disease and Banana Wilt in Central and 
East Africa. 
  The imminent establishment of additional pre-position 
facilities for processed products in the region. 
 
¶3. WFP/ODK shared the following highlights from their 
side: 
 
   The implementation of a joint assessment for the 
Great Lakes Region PRRO. 
  The departure of Sudan from the WFP/ODK office for the 
establishment of its own country office. 
Decreased resources for operations in WFP/ODK compared 
to the past two years. 
   Child Hunger Initiative launched in collaboration 
with UNICEF and the World Bank. 
 
Logistics Clusters 
 
¶5.  Logistics Cluster meetings have been established by 
WFP at the country level, involving Private Voluntary 
Organizations (PVOs) and other agencies involved in the 
movement of commodities (both food and non-food) in 
order to improve logistics and programming in the 
region. Food for Peace/East Africa (FFP/EA) expressed 
their support for this initiative and indicated that it 
would like to see the effort extended beyond the current 
six month mandate, and be more institutionalized with 
permanent personnel dedicated to cluster management. WFP 
reminded participants that logistic cluster management 
was not a WFP activity, but rather, they are the lead 
for a mix of agencies. Financial support for the 
initiative is lacking, but they are examining the 
inclusion of a line item in future budgets. WFP noted 
reserve that the main interest for the cluster is 
generated by the situation in the Horn of Africa and the 
main beneficiaries are the PVOs. Once the situation 
stabilizes, the interest will also subside; a scenario 
that has been played out in Angola and Somalia. FFP 
indicated that given the substantial amounts of food aid 
coming into various countries, this action may be 
sustainable on the basis of food aid alone, and expand 
to other commodities as the need arises. 
 
¶6.  The following action points were identified in 
relation to logistics cluster: 
   The successes of the cluster should be highlighted by 
WFP so that donors are inspired to contribute.  FFP will 
liaise with other donors to generate interest and 
support. 
 
   Focus on food aid as a foundation for cluster 
management. Look into REDSO/FFP's regular meetings with 
Title II partners as a potential starting point. 
   Examine the possibility of private sector involvement 
as a means to fund the mechanism. 
   WFP to incorporate cluster management as part of 
their operational budgets. 
 
REGIONAL PIPELINE 
 
¶7.  In a horizon tour, WFP gave pipeline highlights for 
various countries. Somalia has relatively little other 
donor support than FFP and that has created some 
shortfalls. Rwanda and Burundi have insufficient funding 
to cover the effects of their drought. The regional 
market was "dry" for quick regional purchases (primarily 
in Uganda). The Democratic Republic of Congo program has 
an existing debt of $6.2 million through the WFP 
Business Process Review (BPR), so that even if/when 
contributions come in, they would go towards paying off 
the debt, and in the interim no further advances can be 
made. 
 
¶8.  WFP indicated that a total of 1.6 million MTs were 
projected for 2006. Given the current situation in the 
Horn of Africa, that estimate has increased to 2.1 
million MTs, representing 39 percent of WFP's global 
food aid budget. The USG's Continuing Resolution often 
forces FFP to disburse funds late. Because no other 
donor can match FFP's contribution, pipelines in the 
region are often deeply affected. 
 
¶9.  Follow up action points in regard to the regional 
pipeline included: 
   FFP should attempt to limit the number of Call 
Forwards and place as many as possible in the first 
quarter; 
   FFP should increase the pre-positioning of stocks to 
avoid breaks and to provide faster response; 
   Both parties should follow up with the Kenyan 
government in regards to a number of stringent controls 
recently placed on food aid imports. 
 
PROCUREMENT 
 
¶10.  WFP shared that there is a good history of 
procurement in Uganda where 210,000 MTs were procured in 
¶2005. However, in the current situation, local markets 
have been depleted by drought in neighboring countries 
and food commodities flowing to Rwanda, Kenya and 
Tanzania.  This has led to little food availability in 
the market as well as higher prices.  WFP indicated that 
they do not issue small tenders to discourage traders 
from going to the local market and buying out the local 
supply.  WFP cannot buy large quantities as the 
available food is in the hands of three to four traders 
offering little competition.  FFP shared that there is 
discussion in Washington to allow a limited cash 
disbursement of up to 25% of FFP's annual budget for 
local or regional procurement, while increased pre- 
positioning of stocks would alleviate the need for cash 
disbursements for quick purchase. 
 
¶11.  There was a lively exchange regarding the 
flexibility of using cash as well as in-kind food 
contributions. WFP indicated that they do not want to 
appear to be clamoring for cash when their capacity and 
the local market conditions may not allow for prompt 
delivery, as is currently the case in Uganda. They 
recommended that decisions on "cash versus food" should 
be done based on proper research given the availability 
of each. 
 
 
ERITREA 
 
¶12.  WFP provided an extensive historical overview of 
the current complicated situation in Eritrea. In short, 
there are 68,000 MTs of food aid warehoused in Eritrea 
 
that the government will not allow WFP to access. WFP 
estimates that 47,000 MTs risks expiring within the next 
three months. Apart from 7,000 MTs that were distributed 
by CRS, the government will not allow targeted 
distributions to occur and has indicated that it wants 
the current stocks to be absorbed into their current 
food security program.  Meanwhile, WFP's 100 plus staff 
are sitting idle since no distributions are occurring. 
The running costs of the program leave WFP with limited 
options regarding a continued presence in Eritrea. 
However, at the same time, closing the operation is just 
as costly with the payment of separation allowances. 
WFP shared that the population has limited options as 
well:  trade has been restricted; there is limited cash 
in the economy; female-headed households work as cooks 
in military barracks; there has been a 20 percent cattle 
loss due to the lack of fodder, etc.  The WFP/ODK 
Director is scheduled to visit Eritrea in mid May in 
another attempt to find resolution to the issues faced 
by WFP. 
 
PRRO: Democratic Republic of Congo and the Great Lakes 
 
¶13. Donors have recently requested that the PRROs in the 
Democratic Republic of Congo (DRC) and the Great Lakes 
Region be re-assessed to better reflect current 
situations that would have direct bearing on food aid 
programming in- country.  In the case of the DRC PRRO, 
FFP expressed concerns that though most of the analysis 
was good, it seemed to be "rubber stamped", and 
expressed their interest to be included in the process 
much earlier.  Further, the upcoming elections and its 
outcome should be reflected in the final document. 
Though WFP contends that the PRROs are designed with 
enough flexibility to reflect key events as they occur, 
they concurred with the need to delay its final 
presentation to the WFP Executive Board scheduled for 
November 2006. REDSO/FFP opined that the PRRO should be 
extended for an entire year in order to conduct a proper 
assessment, similar to the one recently completed for 
the Great Lakes PRRO and to allow sufficient time to 
adjust for fall-out from the July elections. 
 
¶14.  The findings of the Great Lakes PRRO assessment 
were presented to REDSO/FFP in April 2006. The draft of 
the assessment is expected to be available by mid-May, 
¶2006. It is expected that the recommendations will guide 
the next steps of Great Lakes PRRO and may mean the 
disbanding of the regional program and shifting to 
individual country programs to be presented at the 
November 2006 WFP Executive Board meetings. 
 
 
 
DJIBOUTI, SOMALIA, FAMINE FUND, NEXT MEETING 
 
¶15.  The Djibouti government has expressed its desire 
handle food distributions directly and would like rice 
instead of the wheat flour that has been provided these 
past 10 years.  WFP provided insight that it is likely 
that this move has political undertones in light of the 
upcoming elections. Rice is the preferred commodity of 
the urban areas while wheat is most preferred in the 
rural areas.  Though the strategic interests of the 
country are well known, WFP requested that FFP be 
mindful that once rice is distributed, it will be 
difficult to have them accept wheat flour again. 
 
¶16.  FFP briefed WFP on the Famine Fund which is a 
regional initiative of USAID to combat Cassava Mosaic 
Disease and Banana Wilt in Tanzania, Rwanda, Burundi, 
Uganda, eastern DRC and western Kenya.  The $5 million 
dollar grant will be managed by Catholic Relief 
Services. REDSO/FFP envisions food aid as a support 
activity for this initiative and invites WFP to attend 
the regional planning conference in Rwanda in June. 
 
SUMMARY CONCLUSIONS 
 
¶17.  The summary of conclusions are as follows: 
On logistics clusters: FFP encourages WFP to identify 
means to sustain and institutionalize the forum. 
Possibly through multi-donor food aid funding as the 
basis for organization with flexibility to include non 
food items as the demand arises; the encouragement of 
private sector involvement; wider donor awareness. 
 
  On regional pipeline: the number of FFP Call Forwards 
should be limited and the pre-positioning of food stocks 
in the region should be increased. 
 
   On local procurement:  cash disbursements versus in- 
kind food aid should be done following adequate research 
on each individual country's circumstances. 
 
   On Eritrea: decisions need to be made on WFP's 
presence in the country in light of existing staff costs 
and the stoppage of its operations by the government. 
 
   On DRC PRRO:  WFP should examine the possibility of 
extending the DRC PRRO for one year as opposed to the 
current six month planned. 
 
   On Great Lakes PRRO:  WFP is to share the final draft 
of the Great Lakes PRRO assessment when it becomes 
available and should also involve donors in future 
planning for the Great Lakes. 
 
   On Djibouti: The Djibouti government should be 
discouraged from requesting a change from wheat to rice 
as rice is mainly the preference of the urban 
populations that are ultimately less food insecure. 
 
   On WFP/ODK and REDSO/FFP bilaterals: that the next 
meeting should be scheduled for September 2006, in 
Nairobi. 
 
BELLAMY