KENYA: PROPOSAL FOR A GRANT OF US$ 500,000 AS EMERGENCY ASSISTANCE TO SUPPORT GOVERNMENT INITIATIVES PREVENTING AVIAN INFLUENZA IN 2008

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1 AFRICAN DEVELOPMENT FUND Language: English Original: English KENYA: PROPOSAL FOR A GRANT OF US$ 500,000 AS EMERGENCY ASSISTANCE TO SUPPORT GOVERNMENT INITIATIVES PREVENTING AVIAN INFLUENZA IN 2008 SCCD: N.G.

2 1 KENYA: PROPOSAL FOR A GRANT OF US$ 500,000 AS EMERGENCY ASSISTANCE TO SUPPORT GOVERNMENT INITIATIVES ON PREVENTING AVIAN INFLUENZA IN Introduction 1.1 Avian Influenza (or Bird Flu) is viral infection that has the ability of infecting human beings that are in contact with ill birds or in an environment where the virus is present. There are two forms of the bird flu the mildly pathogenic Avian Influenza (MPAI) and the highly pathogenic Avian Influenza (HPAI). The most pathogenic strain is the H5N1. Since the first outbreak in 2003, about 150 persons have contracted the deadly H5N1 virus from direct contact with infected domestic birds and about half of them have died from H5N1 respiratory infection in countries such as Indonesia, China, Thailand, Vietnam, Laos, Cambodia, Japan, Egypt, Nigeria, Korea and Malaysia. During this period, over 150 million chickens have either died from the disease or have been culled, resulting in an estimated economic loss of about US$ 10 billion. WHO has reported a total of 77 human cases with 50 fatalities in 7 countries-(cambodia, China, Egypt, Indonesia, Lao People s Democratic Republic, Nigeria and Viet Nam). 1.2 Since 2003, the H5N1 virus has been spreading rapidly and the second wave of outbreak in 2005 was reported in Western China, Kazakhstan, Mongolia and Russia. The virus has been further identified in both wild birds and domestic chickens. In Europe, Russia has experienced outbreaks of HPAI (H5N1) in poultry throughout Germany reported outbreaks in poultry (ducks and geese) and several cases in wild birds during the European summer. Other countries in Europe that reported outbreaks in 2007: Czech Republic (poultry and wild birds), France (wild birds), Hungary (geese), Poland (poultry), Romania (poultry) and United Kingdom (poultry). The first outbreak in Africa was reported in Nigeria early in 2006 and since then outbreaks have occurred repeatedly in Nigeria, Egypt and Sudan and occasionally in Cameroon, Niger, Cote d Ivoire, Ghana, Benin, Togo and Djibouti. In Africa, HPAI (H5N1) is now considered endemic in Egypt and possibly in Nigeria. Several countries in West, Central, South and North Africa are at risk of becoming infected and early warning, surveillance and preventive measures are urgently being taken. The sudden spread of the Bird Flu to Africa has created an overwhelming fear that containing the virus may pose major problem on a continent where backyard poultry keeping is a normal practice, health infrastructure is weak and many governments lack the funds to operationalize the plan to contain any possible outbreak of an infectious disease like Avian Influenza. 1.3 The outbreak of the deadly H5N1 strain of Bird Flu in Sudan poses a big risk to its immediate as well as regional neighbours. The alarming rate at which the Flu has spread from Asia through Europe to Africa has made experts to categorize some neighbours of Sudan as high risk countries, including Kenya, Ethiopia, Uganda, Democratic Republic of Congo, Central African Republic and Chad. This, therefore, emphasizes the need to take urgent preparedness actions to prevent outbreaks and to contain the Flu in the event of an outbreak. The spread of the Flu to any of these economically fragile countries without ensuring adequate preparedness measures could result in a social, economic and health catastrophe on a regional scale, with devastating impacts on the livelihoods of millions of poor people in the East African sub-region. 1.4 In response to this situation, and consistent with the strategy adopted by the international community of integrated national action plan with primary focus on poultry these high risk countries, including Kenya, are taking urgent measures to control and prevent the spread of the Avian Flu into their borders. These measures include stepping up protective measures, banning imports of poultry, putting out educational radio announcements and compensating the farmers

3 2 who report mortalities in birds and have to cull their flocks. Borders are being closely monitored to prevent birds being carried across, as well as raising awareness on basic hygiene and the dangers of slaughtering chickens with bare hands. Given the weak economies of most of these high risk countries, there is a serious financial constraint in undertaking key preparedness activities such as development and dissemination of surveillance materials, training of health staff and farmers in surveillance for H5N1, upgrading laboratory standards for testing for H5N1, supply of chemicals and purchasing equipment and protective clothing for veterinary personnel in the event of outbreak, all of which are enlisted in their emergency plans. 2. Overview of the Appeal for Emergency Assistance 2.1 The Situation in Kenya So far no case of Bird Flu has been reported in Kenya. However, poultry birds in Kenya are traditionally free ranging and backyard chickens are kept in and around homesteads and mingle freely with the family. This system creates multiple opportunities for human exposure to the H5N1 virus in the event of an outbreak. The possibilities for migrating wild birds intermingling with domestic birds which in turn mingle with humans are high, with associated risks of transmission from wild to domestic birds, and to humans. Amongst the most vulnerable victims of such outbreaks would be children and women who tend the poultry. Given the Kenya s strategic location and ramified social and trade relationships with Sudan that involve massive influx of people, merchandise and agricultural goods including poultry and poultry products, the Government of Kenya is in a state of alertness in expectation and preventing the H5N1 outbreak at any time. Thus, the Government has been asserting concerted efforts to prepare itself to avert a health crisis and an economic disaster in the event of an outbreak When the Avian Influenza (AI) was reported in South East Asia and Europe, Kenya started putting emergency measures in place against the disease. A national multisectoral task force was put in place to oversee the activities on prevention of entry and control should the virus enter the country. This task force prepared a National Action Plan (NAP) which is currently being used for the country s preparedness. The NAP on AI is an integrated approach targeting both animal and human aspects of AI. The guiding principle of the plan is to protect human lives and national poultry stock, to ensure human welfare and safety by preventing the disease from entering the country and to eradicate it should it enter. The plan is comprehensive and involves a variety of stakeholders, and is consistent with the Africa Regional Pandemic Influenza Preparedness Plan of the World Health Organization (WHO). The Preparedness Plan is in place but the sudden need of mobilizing resources due to increased risk from the outbreak is beyond the capacity of the Government of Kenya. The Government has formally approached the Bank, through the Ministry of Finance and Economic Planning, vide their letter Ref EA/FA 237/001/8 dated 28 th November 2007, for financial assistance to fund its Emergency Bird Flu Preparedness Plan. This funding will enable the government to address key elements of the Emergency Preparedness Plan such as sensitization campaigns, procurement of necessary logistics, undertake regular screening of birds and poultry, surveillance of wild birds and compensations arrangements to farmers who might loose their flock of poultry in the event that an outbreak of the disease occurs The application is very timely as the Flu is already at the door steps of the country in neighbouring Sudan. Donors have already pledged technical and financial support (e.g. the World Bank, FAO, WHO, CDC and EU). The country is already working with the Food and Agriculture Organisation (FAO), the World Health Organisation (WHO) and the World Organisation for Animal Health (OIE). Therefore the Bank s proposed support of US$ 500,000,

4 3 to Kenya will compliment assistance by these development partners to avert a social and economic catastrophe by making it possible to prevent an outbreak or contain the Avian Flu in the event of an outbreak. 3 Avian Influenza Emergency Assistance Operation 3.1 Objectives and Description of the Assistance The general objective is to contribute to the Bird Flu Emergency Preparedness, and enhance combating the disease in the event that there is an outbreak in Kenya. It is also to strengthen national capacity to maintain functional laboratories and prepare long-term strategic plans and programmes to contain and control the spread of the pandemic should there be an outbreak The Animal Health component will be supported with a lump sum of US$ 300,000 and will provide for the: Supply of chemicals and equipment for screening of birds/poultry and prevention of flu spread in the event of an outbreak; Provision of protective clothing for veterinary personnel and flu control teams Purchase of vaccines; and Awareness and sensitization campaigns and information dissemination to farmers Training of Staff The human health component will be allocated a lump sum of US$ 200,000 and the activities will include the strengthening of human disease surveillance and diagnostic capacity. The focus will be put on: The development and dissemination of surveillance materials, and training of health staff in surveillance and laboratory standard operating procedures; Improvement of communication and networking between Flu Laboratories, including veterinary and public health laboratories; Development of laboratory guidelines and data system for pandemic influenza; and Dissemination of data management tools for influenza surveillance within Kenya. 3.2 Implementation Arrangement The emergency assistance for the human aspects of disease control and prevention will be channelled through the United Nations (UN) World Health Organization (WHO) Africa Region (WHO-AFRO), which has a well-established network in sub-saharan Africa. The assistance for the control and prevention in animals shall be channelled through the African Union-Inter-Africa Bureau for Animal Resources (AU-IBAR), which has been designated by the Commission of the African Union as its lead technical agency for the Avian Influenza threat in Africa. The AU-IBAR has tremendous experience managing projects of this nature for the Africa region. AU-IBAR shall work with Pan-African Vaccine Control Centre (PANVAC) in Addis Ababa, Ethiopia, that has the experience in vaccine control and management. WHO- AFRO will be responsible for implementing the Bank s emergency assistance in support of the integrated emergency preparedness plans against the potential onslaught of the Avian Influenza and possible Human Influenza Pandemic in the Africa region. Both institutions shall collaborate closely with the Kenyan Ministries of Livestock and Fisheries Development and the Ministry of Health, Offices of the Food and Agriculture Organization (FAO) and the World Organization for Animal Diseases (OIE) in Africa.

5 4 3.3 Procurement Procurement of goods and services would be carried out using the UN Rules of Procedures for Procurement of Goods and Services for WHO-AFRO support and the African Union-Inter-African Bureau for Animal Resources Rules of Procedure for Procurement of Goods and Services in support of the activities for the animal side. In this regard, AU-IBAR would use the provision of PACE program (Pan African program for Control of Epizootics) which was successfully implemented with the support of the EC. In administering this assistance, both organizations will ensure that the ADB resources shall only be used to finance Goods and Services only from eligible Member Countries of the Bank Group. 3.4 Disbursement Given the nature and procurement arrangement for this operation, it is recommended that the grant resources will be exceptionally disbursed in two tranches with 75% of the total grant disbursed upon approval by the Board and 25% disbursed after signature of the Protocol of Agreement between the Bank and the Republic of Kenya; as well as the Memoranda of Understanding between AU-IBAR and the Republic of Kenya, for disbursement to AU-IBAR; and between WHO-AFRO and the Republic of Kenya for disbursement to WHO-AFRO. The justification for the proposed exceptional disbursement is based on the delays resulting from the Bank s hold on emergency assistance to review those activities generally. 3.5 Implementation Schedule of the Emergency Assistance The total duration of the emergency assistance will not exceed twelve (12) months. 3.6 Reporting, Supervision and Auditing The WHO-AFRO and the AU-IBAR will submit to the Bank detailed completion reports and financial audit reports on the activities funded by the Bank Group within a period not exceeding six months after completion of the emergency activities. From the animal health component provision, AU-IBAR will set aside US$ 15,000 for auditing both components emergency operation. WHO-AFRO will deduct not more than 13% while AU-IBAR will deduct not more than 5% of the budget as administrative costs. There will be no field supervision mission but the Bank will closely monitor the progress made in the emergency response intervention especially through its field office in Kenya and the activities of the coalition of development partners supporting the work of the Government of the Republic of Kenya on Bird Flu. 3.7 Justification The present operation of Emergency Assistance is in accordance with the Bank Group Policy Guidelines and General Regulations of the Special Relief Fund and is consistent with the current Bank Group provisions under the Emergency Assistance Policy Guidelines (ADB/BD/WP/98/41/Rev.2) - (ADF/BD/WP/98/41/Rev.2) and the Procedures for Humanitarian Relief Assistance (ADF/BD/WP/2003/34/Rev.1) (ADF/BD/WP/2003/34/Rev.1). Furthermore, the request is consistent with the provisions of the General Counsel advice to Operations as contained in its memorandum under the subject Eligibility of Avian Influenza and Human Influenza Pandemic for Fund Assistance.

6 5 4. Conclusions, Recommendations and Conditions 4.1 Conclusions The outbreak of Avian Flu in Sudan poses a huge threat not only to the country but also to the East African Sub-region. Experts have already classified Kenya as a high risk country, based on its interwoven social, demographic and economic linkages with Sudan, involving massive exchange of agricultural goods including poultry. Kenya thus needs to make urgent actions towards emergency preparedness to contain and combat the disease in the event of an outbreak. Given the urgency of the situation, which has been expressed in the request from the Government of the Republic of Kenya, this proposal for a grant to the country is timely and will complement efforts of the Government and other donors. 4.2 Recommendations It is, therefore, recommended that the Board of Directors assist the Government of the Republic of Kenya with a grant of US$ 500,000 to support national efforts in preventing and preparing to combat Avian Influenza and avoid possible Human Influenza Pandemic in the Country. 4.2 Conditions for Disbursement The grant resources will be exceptionally disbursed in two tranches with 75% of the total grant disbursed upon approval by the Board and 25% disbursed after signature of the Protocol of Agreement between the Bank and the Republic of Kenya; as well as the Memoranda of Understanding between AU-IBAR and the Republic of Kenya, for disbursement to AU-IBAR; and between WHO-AFRO and the Republic of Kenya for disbursement to WHO-AFRO. The justification for the proposed exceptional disbursement is based on the delays resulting from the Bank s hold on emergency assistance to review those activities generally.

7 6 AFRICAN DEVELOPMENT BANK BOARD OF DIRECTORS Resolution No. B/KE/2008/09 Adopted on a lapse-of-time basis on 23 rd June, 2008 Grant to the Republic of Kenya from the Special Relief Fund to finance part of the cost of the Humanitarian Relief Assistance to support Government Initiatives Preventing Avian Influenza in 2008 THE BOARD OF DIRECTORS, HAVING REGARD to Articles 1, 2, 8, 12, 13, 14, and 32 of the Agreement Establishing the African Development Bank (the "Bank"), the Emergency Assistance Policy Guidelines, (the "Guidelines"), the Procedures for Humanitarian Relief Assistance (the "Procedures"), the General Regulations (the "Regulations") of the Special Relief Fund ("SRF"), as amended, and the Grant Proposal contained in Document ADB/BD/WP/2008/[ ]/Approval (the "Proposal"); RECALLING the dangers posed by the outbreak of the highly pathogenic H5N1 virus and the possible Human Influenza Pandemic with the socio-economic and human consequences in Africa; HAVING NOTED that the Bank responded to the Appeal of the International Community following the Geneva Conference of November 2005 and the Beijing International Pledging Conference of January 2006 to assist the Africa region as a high risk area on the flyways of the migratory birds to prepare for the possible invasion of the highly pathogenic H5N1 virus; HAVING FURTHER NOTED the request to the Bank from the Republic of Kenya dated 28 November 2007 to assist with the emergency situation; DECIDES as follows: 1. To award to the Republic of Kenya, from the resources of the SRF, a grant not exceeding Five Hundred Thousand United States of America dollars (US$ 500,000) to finance part of the cost of the Humanitarian Relief Assistance to support Government Initiatives preventing avian influenza in 2008; 2. To authorize the President to conclude with the Republic of Kenya a Protocol of Agreement on the terms and conditions specified in each of the Guidelines, Procedures, Regulations and in the Proposal; 3. The Grant will be provided to two Executing Agencies, namely the African Union-Inter-Africa Bureau for Animal Resources ("AU-IBAR") for the animal health component in an amount of three hundred thousand United States Dollars (USD 300,000) (the "AU-IBAR Allocation"); and (ii) the World Health Organisation Africa Region ("WHO-AFRO") for the human health component in an amount of two hundred thousand United States Dollars (USD 200,000) (the "WHO Allocation"); 4. To authorize, exceptionally upon approval of this Resolution, the disbursement of amounts not exceeding seventy five percent (75%) of the AU-IBAR Allocation or two hundred and twenty five thousand United States Dollars (USD 225,000); and an amount not exceeding seventy five percent (75%) of the WHO Allocation, or one hundred and fifty thousand United States Dollars (USD 150,000). The balance of the AU-IBAR Allocation shall be disbursed upon the signature of the Protocol of Agreement and the Memorandum of Understanding to be concluded between the Republic of Kenya and AU-IBAR (the "AU-IBAR MOU"); and the balance of the WHO Allocation shall be disbursed upon the signature of the Protocol of Agreement and the Memorandum of

8 7 Understanding to be concluded between the Republic of Kenya and WHO-AFRO (the "WHO MOU"); 5. The President may cancel the Grant, if the Protocol of Agreement, the AU-IBAR MOU and the WHO MOU are not signed within one hundred and eighty (180) days from the date of approval of this Resolution; and 6. This Resolution shall become effective on the date above-mentioned.

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