Select Committee on International Development Written Evidence


Further supplementary memorandum submitted by the Department for International Development, following the IDC visit to Iraq, February 2005

1.  US AID STRUCTURES FOR IRAQ

Iraq Relief and Reconstruction Fund (IRRF)

  The Iraq Relief and Reconstruction Fund (IRRF) comprises $2.48 billion for humanitarian and reconstruction work approved in April 2003, plus the Supplemental Appropriation of $18.4 billion approved in November 2003. The latter was allocated primarily to: electricity ($5.6 billion), water resources and sanitation ($4.3 billion), security and law enforcement ($3.2 billion), justice and civil society ($1.5 billion), oil infrastructure $1.7 billion), health and education ($1.1 billion) and other infrastructure ($0.8 billion). In September 2004, primarily in response to the security situation, about $3 billion was reallocated from longer term investments, mainly in power and water, to more immediate impact projects in the security and employment sectors. The US Department of State reports quarterly to Congress on IRRF progress.

Iraq Reconstruction Management Office (IRMO)

  The Iraq Reconstruction Management Office (IRMO) is part of the US Embassy in Baghdad. It leads on policy and priority setting for the reconstruction effort, and provides support and policy guidance to the Iraqi Government through US advisers attached to Iraqi ministries.

Iraq Project and Contracting Office (PCO)

  The Project and Contracting Office (PCO) is the main implementation body for IRRF, providing for the oversight, management and execution of infrastructure reconstruction projects. Most day-to-day programme management is undertaken by contractors.

USAID

  USAID implements a number of IRRF financed projects, including in infrastructure ($2.4 billion), local governance ($237 million), economic governance (US$183 million), community action ($166 million) and education ($108 million). USAID has also committed $950 million in emergency relief by way of food aid and support to UN agencies and NGOs, and provided the US contribution of $10 million to the United Nations and World Bank trust funds.

US Army Corps of Engineers

  The US Army Corps of Engineers (USACE) manages reconstruction contracts from IRRF in a number of sectors, including oil and gas.

Commanders Emergency Response Program (CERP)

  CERP provides finance for the US military to undertake the equivalent of the UK military's Quick Impact Projects: small scale local activities such as renovating health clinics, digging wells and painting schools. By October 2004, 34,512 projects had been completed and $578 million disbursed. Funds are drawn from the Iraqi budget and US Department for Defense. Some CERP money has been made available to UK forces. In October 2004 an additional fund, Commanders Humanitarian Relief and Reconstruction Projects (CHHRP) was established to focus on small scale projects in areas of high instability such as Samarra, Ramadi and North Babil. $86 million was allocated from US funds, which is being matched by the Iraqi government.

2.  FREE PRISONERS ASSOCIATION (FPA) GRANT APPLICATION

  There are several reasons why the managers of the Political Participation Fund decided not to grant funding to FPA following the FPA's recent project proposal:

    —  The project cost of over half a million US dollars would have been by far the largest single grant disbursed by the PPF. There was concern that the FPA did not have the capacity to manage such a large project effectively.

    —  It was apparent from the FPA proposal that a large proportion of the grant would go to FPA infrastructure and equipment rather than capacity building or networking.

    —  There are several reports—unsubstantiated, but impossible to ignore —which raised questions over the reputation of the FPA in terms of financial management of funds previously given by other donors.

  The British Council's suggested course of action now, with which DFID concurs, is for the FPA to submit a new proposal for between $20-$80,000 with more achievable aims to the Civil Society Fund. The team will also keep Ms Clwyd's office informed of any further developments.


3.  UPDATE ON CIVIL SOCIETY FUND AND POLITICAL PARTICIPATION FUND

Civil Society Fund and Political Participation Fund

  NB  It has become clear that linkages between Iraqi organisations and DFID or the UK Government could inhibit the work of Iraqi NGOs and potentially threaten their security. Names of Iraqi NGOs and locations have therefore not been provided in the tables below.

CIVIL SOCIETY FUND
Civil Society Fund (CSF)
2004 to 2006AIM: Strengthen capacity of Iraqi Civil Society Organisations to better address the needs of the most vulnerable groups. Mechanism to support the development of small and medium civil society organisations (CSOs) across Iraq. 80% of funds provided in the form of block grants to international NGOs to enable them to foster long-term partnerships with Iraqi NGOs and build local capacity. The other 20% will go direct to Iraqi CSOs. £5 million
As at 24/2/05 £4.1 million committed


APPROVED PROJECTS

OrganisationTitle of Project
Funds RequestedDescription
Christian Aid in partnership with a Kurdish NGO Civil Society Development Programme
£813,670Proposal to develop CSOs in Northern governorates.
International Centre for Trade Union Rights in partnership with Iraqi trade union groups Trade Union work
£94,390Training, and providing services to Iraqi unions and to influence labour law and policy.
UNISON in partnership with Iraqi trade union unions Training for Iraqi
trade union leaders
£228,600Build the capacity of democratic Iraqi Trade Unions by training a new generation of union leaders.
Women for WomenBuilding Women's Leadership Capacity
£515,000The project has 3 components:
rights awareness and leadership training for women;
building the capacity of women-focused NGOs by building a cadre of local trainers; and
Salvation ArmyInter-agency training
in delivery of humanitarian relief activities
£240,000Proposal to train NGOs and ministry officials in delivery of emergency humanitarian relief activities. This project will work with local NGOs to build capacity to manage humanitarian work.
Women's National CommissionWNC Internship Programme
£350,000The WNC proposes to provide 4 placements for interns to learn about the experience of the WNC in UK, and to build their capacity to engage with national policy-making processes on gender-related issues in Iraq.
Mines Action GroupDe-mining and mine safety education
£1.25 millionMine clearance and education. Project will develop the capacity of civil society to reduce the impact of mines and unexploded ordnance.
Save the Children UKPartnerships for Development: Child Rights-based capacity building for Civil Society Organisations in Iraq
£559,722Two year country strategy plan, with three priorities:
child rights based capacity building of CSOs;
primary education for out of school 6-12 year olds; and

PROPOSALS UNDER DEVELOPMENT

War ChildCivil Society Capacity Building
£661,178Establishment of four local NGOs (one in each of the four southern governorates) to empower marginalised groups through the development of an association of NGOs, serving the needs of the most vulnerable.
Prince's TrustCapacity building NGOs for Youth Development Building on previous DFID funded work (South Iraq Employment and Services Programme), with AMAR as a local partner to provide local linkages with 4 Iraqi organisations across the south.
HelpAge£700,000 Support to community outreach services in health and social welfare and refresher training for health and social workers possibly in collaboration with British academic institutions.
TUCGrassroots Iraq: building a grassroots leadership
£355,320 (may be expanded)Work on a non-sectarian unemployed, women and disabled people's political involvement programme,teaching skills such as organising, negotiations, public speaking, web and radio based communication strategies, conflict resolution.
Norwegian Church Aid & Iraqi NGOs
International Legal Assistance Consortium Plans to develop the capacity of the Iraqi Bar Association.
Serene CommunicationsICT training and capacity building for women in Iraq Development of ICT skills to improve employment opportunities for women, using Community Development methods.
AMARNone as yet
Iraqi NGO protecting women victims of violence Protect Women Victims of violence £63,720 (or possibly £33,000) The project aims to care for women victims of violence, and to influence public and political opinion concerning the rights of women.


POLITICAL PARTICIPATION FUND
Political Participation Fund (PPF)
2004 to 2006AIM: to support the development of legitimate and inclusive political institutions in Iraq, to promote political and social cohesion Initiatives across Iraq to improve processes of policy-making or advocacy, the provision of public information and promotion of dialogue, voter or civic education. Funds will be provided to both international and local organisations. £5 million
As at 24/2/05 £1.24 million committed

APPROVED PROJECTS
OrganisationDescription of project Agreed funding
Arab Gulf Studies CentrePolitical Awareness Research Project
1 year$59,000
Iraqi centre for civic educationRapid Voter Education and Domestic Election Monitoring
1 month$100,000
Institute for War and Peace ReportingElection Coverage Training for Iraqi Journalists
1 month$147,200
Iraqi elections groupDomestic Election Monitoring and Co-ordination.
1 year$100,000
Iraqi NGORapid Voter Education
1 month$35,000
Iraqi confederationIraqi Women's Voter Education
1 month$45,000.00
Iraqi CentreElections Project in Maysan
8 months$59,100
Iraqi democracy centrePolitical Participation for Rural and Urban Dispossessed
3 months$41,500
Iraqi group promoting civil societyVoter Education through Media
1 month$25,000
Iraqi NGOPolitical Awareness and Information Campaign.
1 year$50,000
Iraqi FoundationVoter Education "Give your voice, get your rights."
1 month$23,200
Iraqi NGOWomen's Political Participation project
2 month project$28,000
Iraqi women's NGOVoter Education
1 month$12,820
Iraqi women's NGOCultural Symposium on Democracy
1 month$3,850
Iraqi NGO promoting advancement of women Women's Electoral Participation Workshop
1 month$22,000
Iraqi women's unionVoter Education
1 month$20,800
AMARMarsh Arab Political Participation Project $330,000
Iraqi Centre"Women Have a Right to Vote" Electoral Education Seminars
1 month$31,000
Iraqi organisation supporting refugees Civic Education, Election Training & Civil Society Network project
To March 2006$300,000
Iraqi Radio station"Voices for Elections" radio programming
1 month$52,000
Iraqi student coalitionThe student coalition continues to distribute voter education posters and brochures.
NGO supporting Marsh Arabs in the political process Approved provided the length of the project matches the timeline of the PPF (up to March 2006). $580,000
Ministry of Human RightsHuman Rights festival—completed. The British Council has disbursed all committed funds to the Ministry. $67,200
Social Development DirectCompleted. 23 participants from 15 Iraqi Women's Organisations attended two five-day workshops on campaigning on women's rights and the political process presented by Social Development Direct in Amman, from 21 November to 2 December 2004. $260,000
Human Rights NGO ConferenceRepresentatives from 25 Iraqi Human Rights Organisations and a further 15 regional and international representatives attended a four day Human Rights conference in Amman from 10 to 14 December 2004. $265,000
Iraqi women's NGOThe group has completed its media campaign encouraging Iraqi voters, particularly women, to ensure that they were correctly registered to vote by the 15 December deadline. $150,000


Proposals being developed

    —  Iraqi NGO promoting democracy: Political Participation for the Rural and Urban Dispossessed (1 month $41,000 with a subsequent $31,000 proposal for post election activity to be submitted).

    —  Iraqi Human Rights NGO: Southern Citizen's Empowerment Project (4 months $92,500).

    —  Danish Institute for Human Rights: Civil Society Electoral Participation Project (1 month $174,000).

    —  Basra Women's Political Participation Project (£55,000 x 4 months).

    —  Iraqi NGO: female voter education.

    —  Iraqi NGO: female voter education.

    —  Kurdish NGO: voter education.

    —  Iraqi NGO: Street Children Conference.


4.  WHY THE BRITISH COUNCIL IS MANAGING CSF/PPF

  DFID contracted the British Council to manage the funds under the Governance Framework Agreement. This Agreement allows DFID to set up a project quickly without having to go through a tender process. The contract was awarded to the British Council based on the quality of the consortium the Council put forward, and because of the Council's proven experience of running similar trust funds. The British Council has also been contracted to manage a number of DFID-funded Small Grants Scheme country programmes, for example in the Maldives.

  The DFID Iraq team did initially consider CARE for the management of PPF and CSF. However, with the worsening security situation CARE decided that it did not have the capacity to manage a programme in Iraq with national coverage. No other NGOs came forward to be considered under the Framework Agreement.

5.  DFID SUPPORT TO AMAR
AgencyPurpose Action to date and in progress DFID Contribution
AMAR
2003 to 2004Provide medical and sanitary support to refugees in Iran. AMAR are providing basic medical care, water and sanitation and education to Iraqis living in refugee camps in Iran.
Project completed £792,135
AMAR
November 2004 -March 2006Marsh Arab Political Participation Programme, Southern Iraq Funding provided under the Political Participation Fund
Project ongoing £315,217


  AMAR has also expressed an interest in securing funding from the Civil Society Fund (CSF), which will require a change in focus from basic service delivery role to the new area of building capacity. No formal project proposal has been submitted to the CSF by AMAR as yet.

6.  BREAKDOWN OF £544 MILLION UK MADRID PLEDGE

  The £544 million pledged by the UK for humanitarian and reconstruction work in Iraq 2003-2006 comprises:

    —  DFID (including our contribution of £38 million to EC spending, 2003 and 2004): £422.5 million.

    —  Foreign and Commonwealth Office (mostly for CPA secondments): £61.5 million.

    —  Ministry of Defence (Quick Impact Projects): £30 million.

    —  Global Conflict Prevention Pool: £30 million.

7.  DIFFERENCE BETWEEN ASIL AND ADAM SMITH INSTITUTE

  The Adam Smith Institute is a free market think-tank which is concerned with trying to influence UK domestic policy. Adam Smith International Ltd is not part of the institute but an independent development consultancy which advises governments around the world on various aspects of government and economic reform. It has contracts with development agencies such as the World Bank, the Asian Development Bank, the African Development Bank, and bilateral donors such as DFID, DANIDA and SIDA, as well as governments in the developing world.

Why DFID is employing ASIL in Iraq

  DFID ran an open and fair competition, in line with EU procurement regulations, inviting companies to tender for work to be carried out in Iraq; Adam Smith International subsequently won this competition.

8.  UNEMPLOYMENT

  The Iraq Multiple Indicator Rapid Assessment survey carried out in Spring 2004 by Iraq's Central Organisation for Statistics and Information Technology (COSIT) in collaboration with Norwegian research institute Fafo reports the overall unemployment level in Iraq as 10.5%. This survey was national in coverage and used the ILO's international standard measure of employment as "having worked a minimum of 1 hour" in the previous week.

  An alternative definition of employment used by COSIT in other surveys is: "having worked a minimum of 15 hours" in the previous week. If this definition is used to interpret the Fafo/COSIT data, the figure is 22.5%.

  These two estimates can be interpreted as: while "unemployment" by a strict definition may be 10.5%, "unemployment and underemployment" is 22.5%.

  These calculations do not take into consideration the low labour force participation rate in Iraq. Whilst "unemployment" may be only 10.5%, Iraq's labour force comprises only 41% of Iraq's working age population. This may reflect cultural norms, for example, women's participation in the labour force is only 13%. It may also reflect large numbers of long-term unemployed who no longer consider themselves to be part of the labour force. Since there are no unemployment benefits, long-term unemployed have little reason to define themselves as members of the labour force (unlike in OECD countries).

March 2005





 
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