ICC Briefing No.2, 18 December 2000

 

Information Co-ordination Centre

A joint ERREC/UN Venture to facilitate the humanitarian intervention in Eritrea

 

 

 

REHABILITATION/RECONSTRUCTION/RECOVERY INITIATIVES IN ERITREA

 

 

Recent months have seen the situation in Eritrea stabilising.  Population movements are much fewer than during and immediately after the third offensive of May 2000 and in the majority of cases are returns, which can be viewed in a positive light.  The UN Mission in Ethiopia and Eritrea (UNMEE) has been established and the first peacekeepers have arrived.  Given this stabilisation, focus of the humanitarian intervention has begun to shift from emergency relief to include rehabilitation, reconstruction and recovery (3 Rs).  Beyond a theoretical debate about a linear continuum from relief to development with the 3R’s somewhere in between, what does this mean in reality?

 

Currently in Eritrea, there are ongoing relief programmes, but there are also small-scale interventions of a rehabilitation nature and more are planned. Some are bilateral interventions such as school rehabilitation by DANIDA, rehabilitation of the hospital in Tessenai by ICRC and various activities by a number of international NGOs. In addition, there are two large-scale integrated initiatives:

 

 

This briefing paper aims to give an overview of these two programmes with specific attention to links with the ongoing emergency relief programmes and co-ordination mechanisms. 

 

POWER

Background and Objectives

The POWER (post-war emergency and rehabilitation) Programme,[1] mainly funded by the Italian Government, can be seen as a bridging programme between emergency relief interventions and rehabilitation.  A joint programme between the Government of Eritrea (GoE) and UNDP, POWER aims ‘to link relief and development from the outset so as to facilitate the transition from emergency relief to sustainable rehabilitation and to support the resumption of economic and social development.’

 

To do this, during the first six months, POWER will focus on meeting urgent needs but at the same time promoting the underpinning concept of sustainable and integrated recovery activities in the field of settlements as well as rehabilitation of social infrastructure, agricultural production and human capital.  During the remaining period of the project emergency needs will be met as they arise but the focus will be on contributing to the long process of rehabilitation and development. To promote the link further, POWER also includes a capacity building element to facilitate local government and civil society to plan implement and monitor as well as manage and co-ordinate interventions.  Capacity building will be at both the central level and local, sub-zonal level.

 

The POWER Programme aims to be flexible.  As yet the situation, levels of destruction, numbers of beneficiaries and specific needs in the occupied territories are not known and therefore it is difficult to predict the exact nature of either emergency relief or rehabilitation interventions in these areas.

 

Sectors for intervention

 

Implementation

Money under POWER is available for interested organizations to implement programmes as long as they fit within the project framework.  This includes government bodies, UN agencies and both international and national NGOs.  Interventions will be focused on (but not limited to) the most affected zones of Debub and Gash-Barka.  Criteria for the selection of interventions include:

 

To date four projects have been implemented and completed, all by Italian NGOs in IDP camps in Debub and Gash-Barka focusing on emergency interventions in the sectors of health, WatSan and shelter.  A further six projects have been approved and two are under discussion (seven emergency interventions and one reconstruction of a hospital).

 

Management

POWER has a Project Management Unit (PMU), Project Appraisal Committee (PAC) and a Steering Committee. The PMU consists of UNDP staff and as its name implies manages POWER. The PAC consists of the Ministry of Local Government (MoLG), the Eritrean Relief and Refugee Commission (ERREC), Cooperazione Italiana and the PMU. A steering committee and a technical committee are being established to manage and oversee the implementation of this programme. It takes recommendations on project proposals, which are then approved by the Steering Committee that consists of Ministry of Local Government, Ministry of Finance, ERREC, UNDP and Cooperazione Italiana.

 

Budget and Funding

The planned duration of the Programme is two years from mid-2000 and the total budget is set at $18 million of which $15 million has been provided by Cooperazione Italiana and $100,000 by UNDP.  Therefore there is a shortage of $3 million.  Additional funds are being sought, from UNDP and other donors.

 

 

ERP

Background and Objectives

The Eritrean Emergency Reconstruction Programme is a Government/multi donor, multi sectoral programme.[2] The ERP aims to begin the process of long-term reconstruction and economic recovery and will be implemented in two years. The ERP recognizes ongoing efforts co-ordinated by ERREC in response to immediate humanitarian needs and is ‘designed to finance a set of complementary actions in support of the public and private sectors that will have the most impact in restarting the economy’.

 

The World Bank contribution of $90 million to the ERP was approved by its Board on 22 November.  Whilst the World Bank has maintained their presence in Eritrea during the last two years since the beginning of the border dispute, and continued with approved projects, there was no new investment until July 2000 when the Integrated Early Childhood project was approved.

 

Components of intervention

The ERP comprises of five component parts with various sub-components:

1.      Agriculture:

1.1 Land resources and crop production

1.2 Mechanized agriculture and support services

1.3 Animal resources

2.      Reconstruction and rehabilitation of infrastructure:

2.1 Roads

2.2 Energy

3.      Private sector development:

3.1 Support for affected enterprises including debt relief

3.2 A loan fund

3.3 Technical assistance programme


4.      Social protection – Replenishing the Eritrea Community Development Fund[3] (ECDF) to support:

4.1  Rehabilitation and development of basic social and economic infrastructure in the following areas:

4.11     Education

4.12          Health

4.13          Access roads (particularly to camps or areas of return)

4.14          Water supply

4.2  Income generation

4.3  Housing – rebuilding of 20,000 houses

4.4  Strengthening community based safety nets

5        Balance of payments support.

 

Implementation

ERP projects will focus on the Debub and Gash-Barka zones, which were most affected by the recent conflict but will not exclude other zones.  Actual implementation of the projects will be the responsibility of the relevant line ministries and other government agencies.

 

Management

The ERP will be co-ordinated by a Programme Management Unit (PMU) established within the Ministry of Finance.  The PMU (consisting of a PMU Manager, Finance Officer and Procurement Officer) will be responsible for overall programme management including financial management and reporting to all co-operating partners.  There will also be a Steering Committee under the chairmanship of the Director General of the Ministry of Local Government and comprising all Director Generals of implementing sector ministries. The committee will oversee implementation of the ERP and take policy decisions related to the effectiveness of implementation.

 

Budget and Funding

The total cost of the ERP is $287 million of which $257 million is funded by the World Bank, Italy, European Union, Government of Eritrea, African Development Bank, Denmark and France. The programme implementation period is two years from the first financial disbursement  (expected in December 2000).  There is a provision for retroactive financing whereby up to 35% of the World Bank funds can be used to cover relevant expenditures incurred since 31 May 2000 and before approval of the programme.

 

The money from the World Bank and African Development Bank are soft loans. Funds from other donors are grants. 

 

 

Similarities and Differences

Both the POWER Programme and ERP were conceived around the same time in response to the impact of the recent and most destructive round of fighting between Ethiopia and Eritrea[4]. In this respect both focus on Debub and Gash-Barka zones although benefits from both will go beyond these two zones.  Neither focus on concerns relating to the drought although it is likely that there will be indirect benefits particularly through agricultural inputs. International donors mainly fund both POWER and the ERP.  However, both programmes represent the Government’s plans for rehabilitation, reconstruction and recovery.

 

Despite these similarities there are a number of differences between the two initiatives. POWER can be seen as a bridging programme between emergency operations and rehabilitation.  The ERP recognises the need for ongoing emergency relief programmes but is itself a rehabilitation, reconstruction and recovery programme that complements such activities. POWER on the other hand includes support to emergency relief needs as well as rehabilitation, reconstruction and recovery. 

 

Co-ordination

Given the fact that both programmes represent the Government’s plans for rehabilitation, reconstruction and recovery, the Government remains responsible for the coordination of, and between, both programmes so as to ensure an integrated intervention that promotes long-term recovery. Currently there are clear mechanisms in place within each programme to co-ordinate projects and components that make up the programme. In the main part, this is achieved through the project appraisal process. As yet, there are no formal links between the two programmes, but the ERP has only just been approved and implementation has not begun.

 

Agencies that buy into rehabilitation programmes have a responsibility to co-ordinate with the relevant government line ministries.  Currently ERREC is the body for co-ordinating the emergency response in Eritrea.  In this capacity UN agencies and national and international NGOs work closely with the Commission.  ERREC will play an important role in the transition from emergency relief to rehabilitation programmes.  ERREC is a member of the PAC and in recent restructuring, ERREC has established a rehabilitation department to further facilitate the process. In the ERP the focus for co-ordination rests with relevant line ministries.

 

Whilst co-ordination mechanisms are clear within the two programmes, at present there is not a single mechanism that could co-ordinate and give an overview of all rehabilitation, reconstruction and recovery interventions in Eritrea. This was recognized at the monthly General Humanitarian Meeting held in October and a 3R sectoral working group (SWG) was proposed.

 

Linkages

As noted at the beginning of this paper, there are ongoing emergency relief needs in Eritrea. To meet these needs the GoE launched an appeal for 2000, as did the UN Country Team (UNCT).[5] Both were revised upwards in mid-2000 due to the conflict and additional humanitarian needs. At the end of October 2000, funding against the UNCT Appeal was at 64%. This represents 100% funding in the food sector but only 36% funding in the non-food sector where there have been critical shortfalls. Funding of humanitarian interventions in drought-affected areas in only at 48%.[6] Initial observations from the countrywide Annual Needs Assessment  (ANA) exercise, which completed its fieldwork in November 2000, clearly indicate that there will be humanitarian needs into 2001. Furthermore, much more attention ought to be paid to those areas impacted by the drought where needs are likely to go beyond 2001.

 

Conclusion

Initiatives in the 3R domain are likely to gain momentum and grow in importance during 2001. However, there are still uncertainties particularly relating to return and reintegration, as well as conditions and needs in the Temporary Security Zone, which still is yet to be established.  In addition, there are the ongoing needs relating to drought-affected areas. Therefore, 3R initiatives cannot simply replace emergency relief interventions. Rather they need to complement and be co-ordinated with each other, at least for the short term.



[1] POWER is sometimes referred to as the Umbrella Programme

[2] The ERP is often referred to as the World Bank programme.  The World Bank is the major donor (almost 30%) but not the only donor.

[3] ECDF was launched in 1993 by the GoE and operates as a semi-autonomous unit in the Ministry of Local Government. Since 1996, ECDF has had a Savings and Credit Programme funded by GoE, World Bank, grants from donors and savings from members. The aim is to provide credit services to vulnerable groups in rural and urban areas mainly through the establishment of village banks typically serving 35-80 members.

[4] According to the University of Asmara’s Report ‘Consequences of Ethiopia’s Invasion of Eritrea: A preliminary monetary estimate of destroyed and looted properties’ the financial impact of the fighting is estimated at NFR 5.6 billion (US$ 560 million).

[5] The UNCT Appeal can e considered as s sub-set of the Government Appeal based on priorities and UN agencies’ expertise to respond to needs.

[6] Humanitarian interventions by UN agencies are funded through a Regional Drought Appeal for the Horn of Africa including Djibouti, Eritrea, Ethiopia, Kenya and Somalia. The funding figure of 48% represents funding of the Eritrea component of the Regional Appeal.