2015 ARC Agency Programme of Work

Transcription

1 2015 ARC Agency Programme of Work The African Risk Capacity (ARC) Specialized Agency of the African Union (AU) was established on 23 November 2012 by a Conference of Plenipotentiaries convened by the African Union. ARC was designed to improve the capacity of AU Member States to manage natural disaster risk, adapt to climate change and protect food insecure populations. To do this, the ARC offers weather insurance to participating governments through its commercial affiliate, the ARC Insurance Company Limited (ARC Ltd or the Company). This African-owned financial entity uses Africa RiskView, an advanced satellite weather surveillance and software to estimate and trigger readily available funds to African countries hit by severe weather events. Because such events do not happen in the same year in all parts of the continent, pan-african solidarity in the creation of a disaster risk pool like ARC is financially effective. Pooling risk across the continent significantly reduces the cost to countries of emergency contingency funds, while decreasing reliance on external aid. By merging the traditional approaches of disaster relief and quantification with the concepts of risk pooling and risk transfer, ARC will help create a pan-african disaster response system that meets the needs of those affected in a timelier and more efficient way and provides an important step forward in creating a sustainable African-led strategy for managing extreme climate risks. MILESTONES ACHIEVED SINCE ESTABLISHMENT The activities of the Agency can be divided into four work-streams: 1) Operations: strategic direction, support to the ARC Agency Governing Board, organization of Conferences of the Parties, legal and media advisory services 2) Research and Development: early-warning system enhancement, development of new hazard models for Africa, economic research on early intervention 3) Government and Client Services: customization of Africa RiskView software, development of operations plans linked to payouts, structuring of risk transfer contracts, preparatory assistance when an insurance payout is imminent 4) Thought Leadership and Policy Development: collating best practices across member countries, documenting and sharing experiences from Africa in global fora, ensuring global debates with regard to climate change, food security, resilience, etc. engender solutions suitable to the African context, helping to harmonize policies in disaster risk management and early intervention at the national, regional and continental levels 1. Operations Work-stream In 2013, the Agency entered into an Agreement for Administrative Services with the UN World Food Programme through December The Secretariat is currently evaluating other potential service providers for the Board s consideration ahead of the expiry date of the current Agreement. The legal team has also begun drafting ARC Agency s own administrative policies and procedures as well as 1 The Administrative Services Agreement was subsequently extended to 31 August

2 terms of reference for pre-selection of potential auditors and evaluators of the Agency and country emergency response operations, in the event of a payout. In 2014, under the guidance of the interim Director General and the interim Director of ARC Insurance Company Limited (ARC Ltd), the Company was incorporated in Bermuda and capitalized with the first tranche of ~ US $100 million, with an additional US $100 million in commitments by the German and UK governments. The Secretariat also assisted in the recruitment of Company Board of Directors and continues to provide services to ARC Ltd in organization of Members Meetings and finalization of insurance policies. The Secretariat will be reimbursed for the cost of these establishment services and for some services to the Company going forward. In order to provide the additional focus and support requested by the policy-holding countries and to ensure sustained coordination with the Company, the interim Director General recruited an ARC Lead Client Services Manager, who served for five years as the Vice President of Client Relations for ARC s sister organization, the Caribbean Catastrophe Risk Insurance Facility. In the remainder of 2014, the Secretariat will continue to assist the Governing Board in recruitment of the first regular Director General. 2. Research and Development Work-stream Following the findings and review of the ARC Cost Benefit Analysis conducted by Oxford University and International Food Policy Research Institute (IFPRI) experts, as well as further studies by Boston Consulting Group (BCG) Munich, the ARC Secretariat developed Standards and Guidelines for Contingency Planning in 2013 through a consultative process with principal stakeholders, with a view to the practical application in the African context of this academic undertaking. At their second meeting on 7 June 2013 in Abuja, Nigeria, the ARC Agency Governing Board adopted these ARC Contingency Planning Standards and Guidelines provisionally, with the intent of testing the guidelines, reviewing the process this year and improving the guidelines and process as necessary in the future. After reviewing the operational plans submitted by ARC Member States and the related work of an independent Technical Review Committee, the Peer Review Mechanism (PRM) subcommittee of the Board recommended and the ARC Agency Governing Board decided that the ARC Secretariat update the Standards and Guidelines based on experience of and lessons learned from the review process for these plans. From there, the ARC Secretariat would collate and disseminate these lessons learned on contingency planning for drought-related food security risk management, and in particular, the efficient channelling of funds to the relevant sectors. Pursuant to the Board s decision to endorse the PRM s request for a summary of lessons learned and best practices from the initial application for Certificate of Good Standing process, the ARC Secretariat commissioned an independent review of ARC contingency planning standards, the current status of operational planning and the overall ARC contingency planning process. The purpose of the review is to identify options for improvements in the ARC contingency planning process described above for current and future rounds of the insurance pool, and to give recommendations for how the ARC could achieve its overall goal of catalyzing improved drought risk management across Africa through promoting effective and efficient contingency planning and financing. In 2014, Kimetrica was selected through a competitive procurement process to conduct the review and has already submitted their Inception Report for consideration by the independent review Steering Committee, composed of members of the Board, the ARC Secretariat and donor partners. 2

3 Under the direction of the Programme Director, in 2013 and 2014 the ARC Technical Team made improvements to the back-end infrastructure, usability and visualization aspects of the Africa RiskView software in response to the first round of Africa RiskView customization with Pool 1 countries (see below) and in preparation for taking ARC Ltd s inaugural insurance portfolio to the reinsurance market. In April 2014, ARC Ltd s first insurance portfolio attracted great interest in the reinsurance market the final reinsurance price was below that anticipated, and subscriptions at that price were three times more than required in part a testament to the underlying quality of the Africa RiskView model. Development of a parametric flood model commenced in 2014, with the aim of being able to offer flood coverage through ARC Ltd to ARC Member States in time for the third, 2016 insurance pool. The Netherlands-based company e-leaf has been selected, through a competitive procurement process, as ARC s modelling partner. Together with ARC Ltd, the Secretariat could move forward with a cyclone model for coverage in the latter half of 2015 and, funds permitting, start work on a locust risk model in Government and Client Services Work-stream The in-country risk pool pre-participation process focuses on three work-streams: the customization of Africa RiskView, training on and the selection of insurance contract parameters and the development of contingency plans for potential insurance payouts. Countries that successfully complete all three components are issued a Certificate of Good Standing by the ARC Agency Governing Board and are eligible to buy insurance from ARC Ltd. In 2013, the Secretariat entered into pre-participation agreements with 11 countries and offered training on the Africa RiskView software. Through these pre-participation agreements, the following countries finalized customization of Africa RiskView in anticipation of participating in the first ARC Ltd insurance pool: Kenya, Malawi, Mauritania, Mozambique, Niger, Senegal. All of these countries completed the risk finance training for structuring of their individual contracts and all developed contingency plans and submitted them to the PRM of ARC Agency Governing Board as part of the Certificate of Good Standing application process. In 2014, the process culminated in the granting of Certificates of Good Standing to five countries in March -- with Kenya, Mauritania, Mozambique, Niger and Senegal and launch of the first ever continental disaster risk pool on 1 May [As of 9 October 2014, ARC Ltd has received premium payments from Mauritania and Senegal.] The remaining five countries with active MoUs will be added to the group preparing to join the second pool: Burkina Faso, Chad, The Gambia, Lesotho, Madagascar, Malawi, Mali,, Rwanda, and Zimbabwe. While the political process of negotiating remaining MoUs is ongoing, the Secretariat moved forward with the technical training on Africa RiskView for the Francophone countries bringing together agro-meteorologists, vulnerability experts, contingency planners and government coordinators in Bamako, Mali from May. The government coordinators and some technicians from the first pool countries played a key role in sharing their experiences with the second group. The Anglophone country teams will come together in Johannesburg, South Africa from 30 June 4 July for a similar training. Ultimately, ARC aims to provide a continental platform for information, ideas and best-practice exchange among government technicians working towards better disaster risk management. 4. Thought Leadership and Policy Development Work-stream 3

4 Once operational in 2014, the ARC has been the subject of much attention in global policy discussions around climate finance including the African Finance Ministerial, the UN Secretary General s Climate Summit, to be held in September, the Africa Regional Platform for Disaster Risk Reduction Post-2015 Hyogo Framework of Action, the World Economic Forum in Davos, as well as IFPRI s Resilience 2020 Conference. Emerging from these discussions and from the contingency planning review process are two new products that could meet significant need and demand from African governments: 1) Sovereign Disaster Finance Ratings Mechanism and 2) Extreme Climate Facility 2 (XCF). These are elaborated in more detail in the ARC Agency Programme of Work for PROPOSED PROGRAMME OF WORK FOR 2015 There are six major milestones to be achieved in 2015: 1) Construct and finalise ARC s second insurance portfolio and begin work on the third (Government and Client Services) 2) Enhancement of ARC s Contingency Planning component (Government and Client Services) 3) Refinement of the drought model and incorporation of a new flood model and tropical cyclone model into Africa RiskView (Research and Development) 4) Design and partial implementation of an Evaluation of ARC (Operations) 5) Development and design of the Extreme Climate Facility concept (Research and Development/Thought Leadership) 6) Pilot the Sovereign Disaster Finance Ratings Mechanism (Thought Leadership) 1. Construct and finalise ARC s second insurance portfolio and begin work on the third (Government and Client Services) Five countries have entered into insurance contracts with ARC Ltd: Kenya, Niger, Senegal, Mauritania and Mozambique. The ARC Agency will continue to support these countries to ensure capacity transfer in holistic risk management, and with a view to renewal of coverage with the second pool in May The following countries have expressed interest in joining the second pool: Burkina Faso, Chad, The Gambia, Lesotho, Madagascar, Malawi, Mali, Rwanda, and Zimbabwe. In early 2015, preparations for the third pool will begin. Prior to taking out insurance, countries enter into MoUs for capacity building services from the ARC Agency Secretariat. This is a fee-for-service structure whereby the ARC facilitates the salary of a dedicated ARC Coordinator (government employee) and focused time of selected government experts 2 A provision for a financial mechanism like XCF falls within the framework of the existing ARC Agency Establishment Agreement (see The ARC Agency was mandated to develop the concept further by African Ministers of Finance at the Seventh AU-ECA Joint Annual Meetings on 30 March 2014 in Abuja, Nigeria (Resolution L15). 4

5 in meteorology, agriculture, food security, contingency planning and finance in return for certain deliverables in the pre-participation programme. Throughout the month programme, the ARC Secretariat guides the in-country team in customizing ARC s proprietary weather risk quantification software, Africa RiskView, building a contingency plan aligned with the standards adopted by the ARC Conference of the Parties (CoP) for early intervention to drought-affected populations and finally assisting the country in selecting the optimal coverage and structure of its insurance contract. Africa RiskView Customization. Customization of the Africa RiskView (ARV) software entails defining criteria for each of the four layers of the software rainfall, drought, populations affected and response costs. The aim of the ARV customization process is to produce a robust model that can accurately capture drought events in a country and, as well as possible, predict the impact of these drought events on vulnerable households. In addition to allowing countries and their partners to review the efficacy of ARV for their risk management needs, this process will also ensure each participating country understands how the model inputs and limitations work, and how it can be used as the basis for indexing ARC insurance contracts and triggering ARC payouts. The ARC Secretariat and ARC Technical Team liaise with in-country counterparts on a weekly basis and in person monthly. Opportunities for peer-to-peer learning across countries will be taken advantage of as much as possible during the year-long capacity building programme. Risk Transfer Simulations. Once ARV has been customized, a country will have to decide what portion of that modelled risk it wants to transfer to the ARC risk pool via an insurance contract by specifying its ARC risk transfer parameters. This decision will depend on several factors unique to the each country, from its ARV-defined drought risk profile vis-à-vis available resources to fund potential drought responses, to the country s premium-payment capacity. To support this decision making process, the ARC Secretariat will provide training and guidance to countries on risk transfer, particularly on risk transfer parameter setting and its impact on premium levels. It will also work with countries to ensure that premium payment schedules align with national budget processes when possible. In some cases, countries will need donor support to meet their initial annual insurance premium payment requirements. It is envisaged that these discussions will be primarily bilateral between countries and their existing development and humanitarian partners in the context of on-going food security and disaster risk management programmes. As requested, the Secretariat will support countries in these discussions with partners. Contingency Planning. ARC is more than an insurance mechanism. In return for an annual insurance premium, ARC will provide participating African Union Member States access to financial resources in order to implement pre-approved drought response plans quickly and proactively in the event of an extreme drought. ARC insurance payouts are designed to be released to countries early often before other funds are available reducing the time it takes to assist vulnerable populations impacted by drought. It is expected and supported by research carried out both through in-country discussions and ARC s Cost-Benefit Analysis 3 that this provision of early funds linked to robust operations plans will result in greater livelihood savings for beneficiaries in participating countries who will receive assistance earlier. Preparing ARC operations plans for potential ARC insurance payouts is a key part 3 In 2012, ARC commissioned a Cost Benefit Analysis to determine the economic impacts of earlier drought intervention in countries that would potentially participate in ARC. This study was conducted by Ruth Vargas Hill at IFPRI and Daniel Clarke from Oxford University. 5

6 of the in-country pre-participation process. This contingency planning process will contain three steps for participating countries. The first step for countries is to submit an initial operations plan to the ARC Governing Board for approval in order to obtain a Certificate of Good Standing that allows the country to access the insurance pool. In order to be approved by the Board, each activity specified in the plan will have to satisfy ARC s basic eligibility and implementability criteria. As a second step, a final operations plan submission will need to be made by a country one to two months before an imminent payout. This final submission gives a country receiving a payout an opportunity to refine their initial submission and effectively update their payout use proposal using the most up-to-date information about the current food security and operational costs. Last is a reporting step, in which countries implement the activities associated with the payout and report on progress against their logframe. The ARC Secretariat will assist countries in preparing these submissions and establishing systems for meeting the reporting requirements. 2. Enhancement ARC s Contingency Planning component (Government and Client Services) The final results of the independent review of ARC Contingency Planning, as outlined above, were shared with the independent review Steering Committee in the first week of July This Steering Committee has shared its comments with a view to discussing and submitting a final set of recommendations in October 2014 for consideration by the Governing Board on potential improvements to a) the standards required, b) the procedures for approval and c) the existing operations plans as they are converted into potential Final Implementation Plans (FIPs) in the event of a payout. It should also consider d) future investments to ensure that ARC, in the long-term, can best serve as the peer review mechanism for food security risk management on the continent. Following the finalization of the independent review and based on the recommendations that may be adopted by the Governing Board, the Secretariat will proceed in 2015 to incorporate the necessary changes into the design of the programme at the country level and at the Secretariat level in three phases. The resulting budget implications are indicated here. The first and immediate phase is implementation of simple, no cost improvements including the use of new Operations Plan (OP) and Final Implementation Plan (FIP) Templates and Standard Operating Procedures for conversion of an OP to a FIP with Pool II countries and implementing a new scoring system (pending Board approval). The templates will be utilized as learning tools in the countries while also serving to formalize the process of plan development at the technical level. The Secretariat had already budgeted for but not yet hired additional staff dedicated to Contingency Planning. Now that the review has assessed the specific gaps in the Secretariat capacity, these funds will now be allocated to hiring a Monitoring & Evaluation Specialist as well as one or two additional Planning Officers, as needed. Pending approval of the Governing Board, the Secretariat recommends a second phase in which the Technical Review Committee is enhanced for better results including higher honoraria for experts and a longer period for plan review ($85,000). Given the responsibilities of the Governing Board, with the support of the Secretariat, to monitor the use of payouts and given the high probability of a payout already in 2014, the Secretariat will need to commission the design of a process audit flexible such that the depth of the audit is commensurate with the size of the payout (e.g. $5 million payout is monitored differently than a $30 million payout). Additionally, the Secretariat requires the ability to undertake or outsource the implementation of the process audit. Currently, there is $100,000 in the 6

7 Operations Budget for this task. The review suggests an additional $300,000 may be needed to design and implement for the current portfolio and even more as the portfolio grows. Depending on the strategic direction given by the Governing Board, the review suggests that a third phase may include the further development of ARC as a standard setting body for preparedness, developing a normalized scale or rating including contingent reserves and planning as a key component along the lines of a sovereign rating such and Standard and Poor s, the Human Development Index, among others. The ratings would provide an input to the Agency s peer review process for operations planning, but could also be utilized by other interested parties to provide complementary financial products more relevant to African governments. While the development of a ratings mechanism would be separate and apart from the current proposed budget, the initial study coincides with the need for the Agency to document its experiences through one or two case studies per year exploring governments needs, risk appetite and ARC s role in addressing the financial or capacity gaps. With the existing human resources, an initial study and some definitive field research could be completed with an additional $50,000 which would be catalytic. 3. Refinement of drought model and incorporation of new flood model into Africa RiskView (Research and Development) Development of a Flood Model. The ARC has secured USD 300,000 from the Swiss Agency for Development and Cooperation to cover the development of a flood component to Africa RiskView. Using these funds, the ARC Secretariat has partnered with the Netherlands-based high-tech water management research and modelling firm, e-leaf, to develop an African flood model that could be used for ARC insurance purposes. A tender to select a firm was completed in May 2014 and work is scheduled to begin in the summer of Given the complexity of modelling flood risk across the continent, 18 months has been allocated for the work, which means at the very earliest ARC could begin offering flood coverage to countries in May Part of the modelling process will include ground-truthing the model with ARC Member States interested in purchasing flood coverage from ARC Ltd. The bulk of this ground-truthing work is scheduled for 2015, once a prototype model has been developed. ARC will be creating the first parametric flood model in the world. Refinement of Africa RiskView and Addition of Other Risks. Africa RiskView has already been designed to be flexible both as an early warning and as a risk transfer tool, and work will continue to ensure Africa RiskView is as user-friendly for the widest range of stakeholders as possible. In addition to the current work-plan of in-country customization and scheduled improvements, including those suggested through user feedback and the experiences of the first insurance pool, the ARC Technical Team plans to further improve the drought modelling component in 2015 (see below), add seasonal forecasts and new hazards (such as flood outlined above), and further develop Africa RiskView s software desktop and online interfaces. The aim of this work is to secure Africa RiskView s position as the go-to early warning software for disaster risk management, research and development for weather and climate risk in Africa, providing a cutting edge operational tool for ARC Member States to use. From the second half of 2014, the ARC Agency will be a technical partner to the World Bank-led Africa Drylands Report designed to contribute to the ongoing dialogue among policy makers and development practitioners about measures to reduce the vulnerability and enhance the resilience of populations living in drylands regions of sub-saharan Africa. 4 This collaboration should lead to 4 7

8 additional refinements to Africa RiskView s drought model, particularly in the pastoral areas of the continent, in The ARC Technical Team will also support ARC Ltd in the development of a tropical cyclone model for coverage in the latter half of 2015 should the Company decide to start the development of this insurance product, by providing advice on agricultural risk and food security and ensuring back-end compatibility with Africa RiskView. As index-based cyclone risk is a more standardized off-the-shelf insurance product, the Company is well equipped to lead the development work, with ARC Technical Team s support. Funds and human resources permitting, work on additional risks, such as locust risk, may begin within the ARC Technical Team in Design and partial implementation of an Evaluation of ARC (Operations) As ARC is newly operationalized, the Secretariat is in the process of designing a five-year dynamic evaluation of ARC to begin in The process should provide program staff with ongoing feedback for program modifications (formative) as well as periodic review of long-term progress on major program goals and objectives (summative), and to meet regular reporting requirements for the Governing Board and donor partners. Some of the broader questions it may aim to answer include: - Does ARC protect against asset depletion at the household level? - Does ARC s holistic risk management philosophy change the planning or budgeting practices of participating governments? - Does ARC have a greater impact on ensuring food security in the event of a drought than alternative financing mechanisms? - Is ARC crowding in the private sector to provide similar or complementary financial products? DFID have set aside GBP 2 million over the next five years to cover any additional associated costs to the Agency. 5. Development and Design of the Extreme Climate Facility (Research and Development/Thought Leadership) Significant investments in resilience and adaptation will be necessary in Africa over the coming years to manage the impacts of climate change, particularly for chronic, year-on-year risks faced by millions of vulnerable people across the continent. The capital required for adaptation investments is substantial, with the World Bank estimating a global cost of USD billion per year through 2050 for developing countries to meet their needs. 5 However, despite the need at scale, such funds have, to date, not been forthcoming in the magnitude required. The ARC Agency leads the ARC Group as a development finance institution providing financial tools and infrastructure needed to manage natural disaster risk and adapt to climate change. Addressing key market failures through its unique institutional structure, ARC Group harnesses pan-african solidarity to bring together a politically legitimate, standard setting AU agency with effectively regulated financial entities to undertake catalytic transactions. The first of these financial affiliates, 5 World Bank, 2010: Economic of Adaptation to Climate Change: Synthesis Report (accessible online at 8

9 ARC Ltd, is already operational and is providing insurance against severe drought to five AU Member States. To meet the long-term needs of both the adversely affected countries in sub-saharan Africa as well as the industrialised governments, a new financial facility that can utilise both public and private sector capital is required. Such a facility would avoid the current and persistent impasse between dialogue and action by securing direct access for African governments to much needed climate finance based on the demonstrated needs for enhanced adaptation measures. Such a facility would also provide a fair and objective mechanism for the allocation and distribution of climate finance and prioritisation of the geographical location of the available investment flows. Building on the Africa RiskView and insurance work to date and on the climate change simulations conducted by the ARC Technical Team and the Italian National Agency for New Technologies, Energy and Sustainable Economic Development (ENEA) over the period , the ARC Secretariat is proposing that a feasibility study be undertaken with a view to designing an Extreme Climate Facility (XCF) in order to provide African governments with direct access to climate finance for adaptation in the event that the frequency and magnitude of severe weather events increases. Such a facility would track extreme weather events in Africa over time using an objective index, potentially including excess severity and frequency of heat, drought, rain or other extreme weather events. Payments to countries from the facility would be entirely data-driven over a 30-year period; if there is no significant increase in extreme events over current climatology over that time, as measured by the index, no payment is made. Should payments be made, funds would be used for investments in disaster risk reduction, the agricultural sector and/or climate change adaptation measures specified in pre-defined country-level adaptation plans. The XCF would function as an additional financing mechanism for countries already managing their current weather risks through ARC Ltd ensuring that investment and risk management are harmonised in a holistic climate-resilience approach. The ARC Secretariat in currently in the process of securing funding for such a study with the aim of conducting work to develop the XCF concept and design in

10 ARC Agency 2015 Budget Overall Direct Costs 8,881,595 Overall Indirect Support Costs 621,712 Overall TOTAL Costs 9,503,307 Operations Budget Item Unit Unit Cost Quantity Cost PERSONNEL COST USD Payroll Director General, ASG Month 27, ,080 General Counsel P4 Month 17, ,240 Legal Officer, Consultant Month 5, ,520 Communications and Donor Relations Officer, Consultant Month 6, ,800 Project Manager (includes financial reporting), NOC Month 6, ,040 Senior Administrative Assistant, G5 Month 8, ,280 Executive Assistant, G5 Month 2, ,000 Programme Assistant, G5 Month 2, ,000 Documentalist/Admin, NOA Month 4, ,280 Procurement Cost Sharing, G5 Month 2, ,000 HR Cost Sharing Support Month 9, ,000 Other staff costs - Drivers, Overtime, Medical Insurance Month ,600 Sub-total Personnel Costs 1,119,840 CONSULTANTS Media Consultancies Lump sum 100, ,000 Graphic Designer Lump sum 10, ,000 Legal Consultant Days ,000 Legal Consultant Days ,600 Sub-total Consultants 177,600 TRAVEL AND PER DIEM Staff & Consultant Duty Travel Month 10, ,000 Sub-total Travel and Per Diem 120,000 PROGRAM COSTS State Party Consultations and Conferences of the Parties Event 85, ,000 ARC Agency Governing Board Meetings 2x Board meetings per year Event 75, ,000 (KIMETRICA REC TO INCREASE Audit of Country Operations (possible) BY 200K) Lump Sum 1 300,000 Development of M&E Framework (Once Off - KIMETRICA) Lump Sum 1 300,000 ARC Visibility Events 2 x Events per year Event 40, ,000 Sub-total Program Costs 1,000,000 EQUIPMENT AND SUPPLIES Office Supplies & Equipment Month 3, ,000 TC/IT Equipment Month 1, ,000 TC/IT Services ICT per capita cost $2,000 pp/year Month 2, ,000 Sub-total Equipment and Supplies 84,000 OTHER COSTS Translation Services Month 3, ,000 Rent & Utilities - Johannesburg Office Month 10, ,000 ARC Retreat 2 x Events per year Event 30, ,000 Staff Development & Training Month 1, ,000 Sub-total Other Costs 234,000 10

11 TOTAL Direct Costs 2,735,440 Indirect Support Costs Rate 7% 191,481 TOTAL Costs 2,926,921 Research & Development Budget Item Unit Unit Cost Quantity Cost PERSONNEL COST USD Payroll Director for Research & Development, P5 Month 21, ,640 Food Security Analyst, P3 Month 16, ,260 Vulnerability Analyst, P3 Month 14, ,640 Sub-total Personnel Costs 627,540 CONSULTANTS Agronomist & ARV Trainer Days ,500 Risk Modelling Manager Days ,000 ARV Developer Days ,500 ARV Developer Days ,850 Early Warning Consultant & Trainer Month 11, ,540 Sub-total Consultants 387,390 TRAVEL AND PER DIEM Staff & Consultant Duty Travel Month 20, ,000 Sub-total Travel and Per Diem 240,000 PROGRAM COSTS Workshops, Trainings & Meetings Event 60, ,000 Commissioned Policy and Economic Work (new CBA) Lump Sum 100, ,000 Sub-total Program Costs 340,000 EQUIPMENT AND SUPPLIES Office Supplies & Equipment Month ,600 TC/IT Equipment Month 1, ,000 TC/IT Services Month 3, ,000 Sub-total Equipment and Supplies 57,600 OTHER COSTS Translation Services Month 3, ,000 Sub-total Other Costs 42,000 TOTAL Direct Costs 1,694,530 Indirect Support Costs Rate 7% 118,617 TOTAL Costs 1,813,147 11

12 Capacity Building & Government Services Budget Item Unit Unit Cost Quantity Cost PERSONNEL COST USD Chief of Staff, D1 Month 26, ,760 Programme Director, P5 Month 21, ,640 M&E Specialist (KIMETRICA) Month 19, ,360 M&E Junior Officer, P2 (KIMETRICA) Month 12, ,880 Policy Officer, P2 Month 12, ,880 Operations Planning Contingency Planning Manager, P4 (KIMETRICA) Month 19, ,360 Contingency Planning Officer (Francophone), P3 Month 16, ,260 Contingency Planning Officer, P2 Month 12, ,880 Risk Transfer Risk Management Advisor, P4 Month 19, ,360 Government Services Country Engagement Manager, P3 Month 16, ,260 Country Engagement Manager, P3 Month 16, ,260 Country Engagement Manager (Francophone), P2 Month 12, ,880 Country Engagement Manager (Francophone), P3 Month 16, ,260 Junior Programme Officer, P1 Month 8, ,980 Junior Programme Officer, based in Bamako Month 3, ,000 Sub-total Payroll 2,806,020 In-Country Teams ARC Government Coordinator plus Expert Top Ups Burkina Faso Month 3, ,500 ARC Government Coordinator plus Expert Top Ups Chad Month 3, ,000 ARC Government Coordinator plus Expert Top Ups The Gambia Month 3, ,000 ARC Government Coordinator plus Expert Top Ups Lesotho Month 3, ,000 ARC Government Coordinator plus Expert Top Ups Madagascar Month 3, ,000 ARC Government Coordinator plus Expert Top Ups Malawi Month 3, ,000 ARC Government Coordinator plus Expert Top Ups Mali Month 3, ,000 ARC Government Coordinator plus Expert Top Ups Rwanda Month 3, ,000 ARC Government Coordinator plus Expert Top Ups Zimbabwe Month 3, ,000 Pool 1 Country Programme Kenya, Mauritania, Mozambique Lump Sum 150, ,000 Niger, Senegal Sub-total In-Country Teams 496,500 CONSULTANTS Risk Transfer Consultant (Francophone) Days ,105 Senior Risk Transfer Expert Days ,200 Senior Risk Transfer Expert and Learning Development Specialist Days ,800 Sub-total Consultants 65,105 TRAVEL AND PER DIEM Staff & Consultant Duty Travel Month 40, ,000 Sub-total Travel and Per Diem 480,000 PROGRAM COSTS Workshops, Trainings & Meetings Lump Sum 1 150,000 Operations Plans Technical Review (Chair Honorarium, Travel, Wkshp - KIMETRICA) Lump Sum 1 85,000 Final Implementation Plan Consultants Lump Sum 30, ,000 Online Learning Devt/ Training Portal (KIMETRICA) 150,000 Sub-total Program Costs 415,000 EQUIPMENT AND SUPPLIES Office Supplies & Equipment Month 2, ,200 Potential Office Renovations Lump Sum 30, ,000 TC/IT Equipment Month 1, ,000 TC/IT Services Month 6, ,000 Sub-total Equipment and Supplies 139,200 12

13 OTHER COSTS Translation Services Month 3, ,800 Other costs (Printing, Visa fees, local transport) Month 1, ,000 Sub-total Other Costs 49,800 TOTAL Direct Costs 4,451,625 Indirect Support Costs Rate 7% 311,614 TOTAL Costs 4,763,239 13