WFP Operational Priorities - 22 Mar 2007

Report
from World Food Programme
Published on 22 Mar 2007


Funding Trends and Their Impact on Operations

With the finalization of the Standard Project Reports (SPRs), actual commodity carryovers have now been calculated for all operations, and the Programme of Work for 2007 has been adjusted accordingly. In comparison with previous estimated figures published in the Blue Book, WFP now requires 4,604,497 mt to assist 79 million beneficiaries in 2007 (249,459 mt less than previous figures). EMOPs now need 1,034,227 mt (93,000 mt more at a cost of US$107.4 million), PRROs require 2,802,320 (282,000 mt less, reducing resources to raise by US$183,000) and Development tonnage required is now 767,950 mt (reduced by 60,000 mt or US$44,000). However there has been an increase in transport and storage costs (LTSH) which has also affected the operational needs of the organization.



In the period since the last Operational Priorities List (1 February – 22 March 2007), WFP has received more than US$411 million of confirmed contributions, which are broken down in the table below.


More than US$88 million of these contributions are multilateral, representing 22 percent of the total. This significant increase from previous months in multilateral funding can largely be attributed to donations by Denmark, the Netherlands and Norway. Funds have been allocated to PRROs (37 percent), Development (32 percent) and EMOPs (9 percent) and also include more than US$16 million contributed to the Immediate Response Account (IRA). Multilateral funds enable WFP to be flexible in allocating resources, ensuring that the operations with the greatest need have the opportunity to receive assistance.

This period also registered noteworthy cash contributions. Some 69 percent of all donations were received in cash, substantiating recent trends away from in-kind donations. Indeed, aside from the USA, only US$1.5 million in-kind contributions were received in this period. Cash allows WFP to purchase commodities locally or regionally, resulting in an appropriate response to beneficiary needs.

An additional US$39.1 million in cash was confirmed in this period from the USA, covering support costs associated with in-kind contributions from previous years. Since this sum is unrelated to operational needs in 2007, it is not reported in the table above.



The Sudan EMOP received the most funding in this period (US$99 million) followed by the PRROs in Uganda (US$30 million), Burundi (US$21 million), Afghanistan (US$16 million) and Southern Africa (US$15 million).

Noteworthy contributions during this period include Brazil's first donation to WFP in many years - to assist the flood victims in Bolivia - and Luxembourg's continued support to Burkina Faso and Mali with donations to their PRROs. Saudi Arabia gave significant contributions to Mauritania and Guinea, and United Arab Emirates supported the PRRO in Cambodia. Important donations from France, Italy and Poland are pending allocation and will be reviewed in more detail in the next report.

More than US$17.4 million was allocated to eleven operations from the Central Emergency Response Fund (CERF). Angola, Burundi and Côte d'Ivoire (under the West African Bureau Regional) received support as under-funded emergencies, while Bolivia, Chad, Guinea (under the West African Bureau Regional), Indonesia and Mozambique benefited from the rapid response mechanism.

Seven donors replenished the IRA with US$16.8 million of fresh funds. IRA loans of US$17.2 million were granted to new operations in Burundi, Mozambique, Nepal and Tanzania, and to projects suffering pipeline breaks in Algeria, Central African Republic, Guatemala and Mozambique. A new EMOP in Bolivia to assist flood victims received IRA support under delegated authority, as did preparedness activities in Mozambique and Guinea. The current balance of the IRA fund stands at US$45.7 million.