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Viewing cable 09ADDISABABA2660, RISK BASED ASSESSMENT ON AMBASSADOR'S SPECIAL SELF-HELP

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Reference ID Created Released Classification Origin
09ADDISABABA2660 2009-11-10 14:06 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Addis Ababa
VZCZCXYZ0003
PP RUEHWEB

DE RUEHDS #2660/01 3141406
ZNR UUUUU ZZH (CCY-ADXD7AB51-MSI2071-413)
P 101406Z NOV 09
FM AMEMBASSY ADDIS ABABA
TO SECSTATE WASHDC PRIORITY 6781
UNCLAS ADDIS ABABA 002660 
 
SENSITIVE 
 
C O R R E C T E D   C O P Y (ADDED SBU TO ALL THREE PARAS MARKING) 
 
SIPDIS 
 
DEPARTMENT FOR AF and AF/EPS -TDAVISON 
 
E.O. 12958: N/A 
TAGS: EAID ECON AFIN ET
SUBJECT: RISK BASED ASSESSMENT ON AMBASSADOR'S SPECIAL SELF-HELP 
PROGRAM 2009- ETHIOPIA 
 
SUMMARY 
------- 
 
1. (SBU) Embassy Addis Ababa received an allocation of USD 90,000 for 
the Ambassador's Special Self-Help Program (SSH) for the fiscal year 
2009.  Eight projects were selected for funding according to the SSH 
selection criteria and Mission objectives.  We estimate that a total 
of 14,163 people will benefit through these projects.  The following 
is a short description of the projects selected and an assessment of 
program-level associated risks based on the Negroponte's Risk-Based 
Assessment Directive of February 2008. All of the prospective 
grantees will get US Government support in the form of cash. Out of 
the eight potential grantees, four of them (Community Vision 
Ethiopia, Mahi Difu Child Care and Development Organization 
(MDCCDO), Global Team for Local Initiatives (GTLI)and Integrated 
Development Association of Sebeya) are local Ethiopian NGOs;  three 
of them (Alemu Woldehanna Primary School, Guri Luchicha Primary 
School and Nano Jidu Elementary School) are community-level local 
government schools; and one of them (Bedele Rural Water Resource 
Supply and Sanitation Office) is a local government office entrusted 
with the supply of pure drinking water to ten surrounding 
communities. Out of the eight prospective grantees, six of them are 
new, and two of them, namely, Mahi Difu and Nano Jidu, were former 
USG grantees under the Special Self-Help program with excellent 
track records. 
 
2. (SBU) FY09 prospective grantees: 
 
Holder:Community Vision Ethiopia (CVE) 
Project Title:Women-Led Dairy Value Chain Development in 
Kucha 
 
Location:Kucha woreda, Southern Nations, Nationalities 
andPeoplesRegional State, Ethiopia 
 
Project Duration:  One year 
 
Estimated Beneficiaries: 
a) Number: 300 women 
b) Type: Poor rural women 
Project Cost: 
a) USG Contribution Requested: USD 10,757.09 
b) Community Contribution:  USD 560.00 in the form of labor 
and material 
c) Total:USD 11,317.09 
 
Holder: Alemu Woldehanna Primary School 
Title:  Alemu Woldehanna Primary School Library Construction 
Project 
 
Location:   Hosanna, SNNPR 
Project Duration: One year 
 
Estimated Beneficiaries: 
a) Number:   3,598 
b) Type: Students and the community 
 
Project Cost: 
a) USG Contribution Requested: USD 10,044.82 
b) Community Contribution: USD 24,127.00 
c) Total:USD 34,171.82 
 
Holder: Bedele Rural Water Resource Supply and Sanitation Office 
Title: Doranteba et al Spring Water Development Location:Bedele 
Woreda, Illubabor Zone, Oromia Region 
Duration:1 year 
 
Estimated Beneficiaries: 
a) Number:  4,000 
b) Type: Farmers residing in 10 rural communities 
 
Project Cost: 
a) USG Contribution Requested: USD 10,769.03 
b) Community Contribution:  USD 2,909.00 (in labor) 
c) Total:USD 13,678.03 
 
Holder: Global Team for Local Initiatives (GTLI) 
Title:GTLI Rural Trading Center Pilot Program 
Location:Wassemu, Minogelti, Hamer Woreda, SNNPR 
Duration:  One year 
 
Beneficiaries: 
a) Number:  4,000 
b) Type: Pastoralist population of Minogelti 
 
Project Cost: 
a) USG Contribution Requested: USD 11,062.46 
b) Community Contribution: USD 10,656.00 (in the form of 
labor, land and local construction materials for the 
construction of store, market shade , pit latrine and shop) 
PROGRAM 2009- ETHIOPIA 
 
c) Total: USD 21,718.46 
 
Holder: Guri Luchicha Primary School 
Title: Guri Luchicha Primary School Construction 
Location: Luchicha Kebele, Kersa Woreda, Arssi Zone, Oromia Region 
Duration: 1 year 
 
Beneficiaries: 
a) Number:563 (287 boys and 276 girls) 
b) Type:School-aged children in a mostly-Muslim highland 
community 
 
Project Cost: 
a) USG Contribution Requested: USD 12,338.20 
b) Community Contribution:   USD 5,068.75 
c) Total: USD 17,406.95 
 
Holder: Mahi Difu Child Care and Development Organization (MDCCDO) 
 
Title:Training-Based IGA Project for Destitute Women 
Location:Gewane woreda, Hanakis Kebele 
Duration:  One year 
 
Beneficiaries: 
a) Number:   100 
b) Type: Destitute women 
 
Project Cost: 
a) USG Contribution Requested: USD 10,117.91 
b) Community Contribution:  USD 22,446.23 (in the form of labour and 
start up raw material mainly cotton) 
c) Total: USD 32,564.14 
 
Holder:Nano Jidu Elementary School 
Title:Construction of Additional Classrooms 
Location:Tikur Enchini Woreda, West Shoa Zone, Oromia Region 
Duration: 1 year 
 
Beneficiaries: 
a) Number: 840 (452 boys and 388 girls) 
b) Type:School children in grades 5-8 
 
Project Cost: 
a) USG Contribution Requested: USD 12,671.46 
b) Community Contribution:  USD 11,443.50 (in local materials and 
labor) 
c) Total: USD 24,114.96 
 
Holder:Integrated Development Association of Sebeya 
Title:Construction of six additional classrooms in Kudu Enqui 
Primary School 
Location:Sebeya Kebele, Gulomekeda woreda, Tigray region 
Duration: One year 
 
Beneficiaries: 
a) Number:  762 (out of which 340 are females) 
b) Type:  School-aged children 
Project Cost: 
a) USG Contribution Requested: USD 12,239.02 
b) Community Contribution:  USD 2,089.90 in cash and free labor. 
c) Total: USD 14,328.92 
 
3. (SBU)  Assessments of Risks: 
All eight prospective grantees for FY09 are local NGOs, local 
government/municipalities, and primary schools. None of the grantees 
has a sub-grantee. All of the above potential grantees were checked 
against the OFAC, SDN, and Suspension and Debarment lists and no 
results were obtained. None of them are related to 
narco-trafficking. Out of the eight grantees, three of them are 
primary schools with school or library construction/expansion 
projects to benefit an additional 5,763 school-aged children, four 
of the grantees are local NGOs with income-generating projects to 
benefit 4,400 poor and marginalized rural men/women who have little 
to no income, and one grantee is a local government office with a 
water supply and sanitation project that will provide more than 
4,000 rural people with clean drinking water. The areas where the 
eight projects will be implemented are not designated or suspected 
by Ethiopian federal, regional, or local governments to be areas 
where terrorists operate. With the exception of the school projects, 
which are accountable to government education bureaus of their 
respective local governments, all local NGO grantees are 
legally-registered entities either under the Ethiopian Federal 
Ministry of Justice, or re-registered under the recently established 
Charities and Societies Federal Agency or equivalent legal entities 
in the regional states. Moreover, each potential grantee's project 
site falls within the jurisdiction of the local government where the 
grantee intends to implement its project, and it is mandatory for 
each grantee to work closely with the respective local government 
sector office (water, health, agriculture, microenterprise, etc.) 
where it operates. This cooperation includes submitting a support 
 
 
letter for the US-funded project from the applicable local 
government office to the American Embassy in Addis Ababa. This has 
the added advantage of knowing who the grantee is and being able to 
identify potential risks at an early stage. 
 
The amount of a grant for each of the grantees ranges from USD 
10,044 to USD 12,671. To ensure there is no possibility of money 
being diverted or misused to benefit terrorists, small grantees' 
project locations, type of beneficiaries, project progress and 
project financials are tightly-monitored by the US Embassy Addis 
Ababa Ambassador's Special Self-Help Program. In addition, the Small 
Projects Office ensures that each grantee complies with 
host-country's legal requirements and administrative checks. 
Payments to grantees usually incorporate two methods, namely, on an 
advance and/or reimbursement basis. Reimbursement against receipts 
is the preferred approach.  However, resource-limited Ethiopian NGOs 
rarely have the funds to operate on a reimbursement basis. In rare 
cases (and only under special circumstances), a grantee will receive 
full payment upfront if the written request is convincing. 
 
Here are the procedures we follow in providing fiscal oversight of 
our grantees:(1)Immediately after signing their agreements, the 
grantee is required to submit a work-plan detailing the activities 
that will be implemented using the first advance, which usually 
amounts to 50% of the award, along with implementation time frame 
(2) (sbu) The transference of money to grantees is through the domestic 
banking system (3)The grantee is expected to submit receipts for the 
first advance along with an interim implementation report as per the 
timeframe indicated in its work-plan. At this point, the grantee is 
also required to submit an official request for the release of the 
second advance together with a new work-plan to be implemented using 
the second advance (4)Before releasing the second advance, the Small 
Projects Office staff conducts a site visit to verify the grantees' 
reported progress. 
MEECE