OGSM: 
COUNTRY: MALAWI

AGREEMENT BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND
. PLANET AID, INC.
FOR THE SUPPLY OF AGRICULTURAL COMMODITIES
UNDER THE FOOD FOR PROGRESS ACT

Preamble

The Government of the United States of America, acting through the Commodity Credit
Corporation (hereafter referred to as and Planet Aid, Inc. (hereafter referred to as
the Cooperating Sponsor);

In an effort to use the food resources of the United States in support of countries that have
made commitments to introduce or expand free enterprise elements in their agricultural
economies through changes in commodity prices, marketing, input availability,
distribution, and private sector involvement;

Desiring to set forth the understandings that will govern the supply of agricultural
commodities to the Cooperating Sponsor for distribution in Malawi pursuant to the Food
for Progress Act of 1985, as amended;

Agree as folloWs:

PART I
GENERAL PROVISIONS

A. This Agreement is subject to the terms and conditions set forth in 7 CFR. Part 1499,
except as maybe specifically provided herein.

B. agrees to provide to the Cooperating Sponsor the agricultural commodities, and
quantities thereof, specified in Part II, Item I (hereafter referred to as the "commodities")
for assistance in Malawi and, to the extent speci?cally included in Part 11, Items II and Ill,
pay ocean transportation and other costs associated with providing the commodities.

C. The Cooperating Sponsor agrees to use the commodities only in accordance with this
Agreement and the approved Plan of Operation, Attachment A, which is attached hereto
and made apart of this Agreement, and shall not sell or barter the commodities except as
specified in Attachment A or otherwise speci?cally agreed in writing by 

2

D. Except as may be authorized by all deliveries of the commodities will be made
within the supply period(s) speci?ed in Part Ii, Item 

E. The Cooperating Sponsor shall not sell or transship the commodities to locations
outside of Malawi.

F. The Cooperating Sponsor shall distribute or, if approved by sell the
commodities provided under this Agreement within Malawi at the earliest practical time.

G. The Cooperating Sponsor shall submit semiannual logistics reports (Form 
required by 7 C.F.R. section 1) and, where applicable, monetization reports
(Form required by 7 C.F.R. section as follows:

For agreements signed October 1 through March 31, the first report(s) is due by the
following May 16 and shall cover the period from the agreement signing date through
March 31. For agreements signed April 1 through September 30, the ?rst report(s) is due
by the following November 16 and shall cover the period from the agreement signing date
through September 30.

Thereafter, logistics reports shall cover each subsequent six (6) month period until all
commodities have been distributed or sold. Monetization reports, where applicable, shall
also cover each subsequent six (6) month period until all proceeds from commodity sales
Under this Agreement have been disbursed. 

These reports shall be submitted to the Director, Food Assistance Division, 
1400 Independence Avenue, S.W., Stop 1034, Washington, DC. 20250?1034.

H. Notwithstanding the provisions of7 C.F.R. section the quarterly ?nancial
statements relating to this Agreement shall be submitted to the Director, Food Assistance
Division, 

I. The Cooperating Sponsor shall submit a copy of the annual audit required by 7 C.F.R.
section 1499.17 to the Director, Food Assistance Division, 

3
PART 11
PARTICULAR PROVISIONS

Item I Commodities

A. The commodities to be made available under this Agreement are as follows:

 

 

 

 

 

 

 

 

 

Commodity Packaging Maximum Quantity Supply Period FY of
5 Metric Tons (MT) to US. Port(s) Funding
Hard Red . Bulk (bags, 10,000 June 2009 2009
Spring/Dark 5 needles and 10,000 June 2010 2009
Northern Spring twine) 10,000 June 2011 2009
(DNS) .
Total 3 30,000

 

may, at its option, substitute packaging of a different size or type or both.

B. The commodities to be provided by will be in accordance with the speci?cations
in Attachment B, which is attached hereto and made a part of this Agreement.

C. will endeavor to provide to the Cooperating Sponsor the maximum quantities of
the commodities speci?ed above. may, however, provide quantities of commodities
that are less than the maximum quantities, to the extent that in estimation the total
cost of commodities, freight, and any US. dollar assistance provided under this
Agreement would otherwise exceed $26.62 million.

Item 11 us Payment of Costs

The payment of all costs associated with the processing, packaging, transporting,
handling, and other charges incurred in the distribution of the commodities will be
apportioned as follows:

A. agrees to donate the commodities without charge and pay the following costs
after delivery to the Cooperating Sponsor: ocean transportation to the designated
discharge port(s) and reasonable transportation costs incurred in moving the commodities
from the designated discharge port(s) to the initial storage site(s).

13. The Cooperating Sponsor agrees to arrange for the following: ocean transportation
and transportation, handling, storage and distribution in Malawi. The Cociperating
Sponsor will arrange for transportation from the designated discharge port(s) to the initial
storage site(s) 'using a through hill of lading.

4

C. will provide the Cooperating Sponsor not more than $1,902,9l7'to provide
assistance in the administration and monitoring of food assistance programs undertaken
by the Cooperating Sponsor.

The Cooperating Sponsor may make expenditures of funds generated from a sale of the
commodities that is otherwise permitted under this Agreement (henceforth referred to as
the "monetization proceeds") or funds provided in dollars by for the costs, and up to
the amounts, specified in the approved Program Operation Budget in Attachment C,
which is attached hereto and made a part of this Agreement. Notwithstanding the
provisions of 7 C.F.R. section the Cooperating Sponsor may make adjustments
between items identified under "Direct Costs" in Attachment of up to 20 percent of the
"Total Direct Costs" approved for all funds or $50,000, whichever is less, without any
further approval; provided, however, that the Cooperating Sponsor may not make any
adjustment to the amounts provided in dollars by for items designated "Activities"
or "Internal TranSportation, Storage and Handling if any. Adjustments beyond
these limits must be speci?cally approved by If the Cooperating Sponsor uses less
than the total amount that is specified in Attachment under "Grand Total Costs?
approved for monetization proceeds, if any, the Cooperating Sponsor will either use the
unused portion of the monetization proceeds for an alternative use that may be specified
in section 6(e)fof Attachment A or request to amend the Agreement to permit an
alternative use.

D. The amounts speci?ed for indirect costs in Attachment are based upon a provisional
rate contained in a Negotiated Indirect Cost Recovery Agreement (NICRA). In the event
that the NICRA final rate for a particular period is lower than the provisional rate, the
Cooperating Sponsor: in the case where has made an indirect cost recovery
payment in dollars, will return the difference to and in the case where the
indirect cost recovery payment will come from the monetization proceeds, will return the
difference to use the difference for an alternative use that may be specified in
section 6(e) of. Attachment or request to amend the Agreement to permit the
Cooperating Sponsor to use the difference for an alternative use. In the event that the
NICRA final rate for a particular period is higher than the provisional rate, the
Cooperating Sponsor: in the case where has made an indirect cost recovery
payment in dollars, will not be entitled to additional funds for the difference or any part
thereof; and in the case where the indirect cost recovery payment will come from the
monetization proceeds, may shift an amount of the monetization proceeds equal to or less
than the difference from direct costs to indirect costs, to the extent permitted in section
6(e) of Attachment A, or request to amend the Agreement to permit the Cooperating
Sponsor to use the difference for an alternative use. In evaluating a request for an
amendment, will consider the effect that such an amendment may have on the
successful implementation of the Agreement.

Item - Ocean Carrier Loss and Damage

A. The provisions of7 section Ocean carrier loss and damage, will
not apply to the ocean transportation of any commodities which are to be sold in
accordance with the Agreement if the Cooperating Sponsor notifies prior to delivery
of the commodities to the Cooperating Sponsor that: (1) the commodities have been sold
on terms that require full payment based upon bill of lading quantities, or (2) the
Cooperating Sponsor is the purchaser of insurance against marine cargo loss and damage
(including general average losses) for at least the landed value of the commodities.

B. In the event that 7 C.F.R. section Ocean carrier loss and damage, does
apply to the ocean transportation of commodities provided under this Agreement, 
will pay for an independent cargo surveyor to attend the discharge of the cargo and
prepare a report of its findings. Unless determines otherwise, the Cooperating
Sponsor will arrange for an independent cargo surveyor in accordance with 7 C.F.R.
section 

Item IV Certification Regarding Terrorist Financing

By signing this Agreement, the Cooperating Sponsor provides the certi?cation set forth in
the ?Foreign Agricultural Service Terrorist Financing Certi?cation for Food Aid Grant
Agreements, April, 2005,? Attachment D, which is attached hereto and made a part of
this Agreement.

Item Compliance with Debarment and Suspension and Drug-Free Workplace
requirements

The Cooperating Sponsor agrees to comply with the applicable provisions of 7 C.F.R.
part 3017, Government-wide Debarment and Suspension (Nonprocurernent), and 7 C.F.R.
part 3021, Government-wide Requirements for Drug?Free Workplace (Financial
Assistance).

6

PART 
FINAL PROVISIONS

A. This Agreement may be terminated by either party for any reason by notice of
termination, in writing, to the other party.

B. This Agreement shall enter into force upon signature.

In witness whereof, the respective representatives, duly authorized for the purpose, have
signed the Agreement.

FOR THE GOVERNMENT OF FORAPLANET AID, INC.
THE UNITED STATES OF AMERICA

 

 

 

Title: Title:
Acting General Sales Manager President
and Acting Vice President,
Commodity Credit Corporation

 

Date: Date:  

ATTACHMENT A

PLAN OF OPERATION
FOOD FOR PROGRESS

FY 2009

1. NAME AND ADDRESS OF APPLICANT

Planet Aid Inc.

One Cross Street

Hollistona MA 01746

Marie Lichtenberg

Planet Aid Inc_., and I-Iumana People to People
1nariel?chembada.co.zw
cell: +27~73 2005690
cell: +1 202 386 2128

2. COUNTRY OF DONATION

The Republic of Malawi

Contact at US. I~Ieadquarters
Ms. Ester Neltrup

President, Planet Aid, Inc.
E-mail: eneltrquDplanetaidorg
Cell: 1-703?447?0335

Contact in Malawi:

 

 

Mrs. Lisbeth Thomsen

Director, Development Aid from People
to People in Malawi,

Private Bag 342, Chichiri, Blantyre 3
Malawi

Phone: 265?996-0306

E?mail: 

3. and 4. KIND AND QUANTITY OF COMMODITIES REQUESTED AND
DELIVERY SCHEDULE

 

 

 

Table I
Commodity Use of Quantity Requested Supply Period
Commodity Metric Package Size to US. Port

Tons (MT)
Hard Red Monetization 103000 Bulk (bags, June 2009
Spring/DNS 10,000 needles and June 2010
10,000 twine) June 2011

Total 30,000

 

 

 

 

 

 

 

The Commodity Credit Corporation will not deliver the commodities to PAI until
PAI noti?es in writing, that has entered into a contract(s) with a buyer(s) for
the sale of the commodities.



5. PROGRAM DESCRIPTION

Activity Objectives

PAI will monetize 30,000 MT of hard red spring wheat and, over a period of
approximately three years, use the proceeds from such sale to implement the following
activities in Malawi:

0 Expand Existing Farmers Clubs to complete an already established training
program, deveIOp market linkages and achieve greater sustainability

0 Establish and Support New Farmers Clubs to increase farm income
through training in agricultural production and marketing and through
provision of small agribusiness grants

a Support Total Control of the Epidemic (TCE) Program to promote
behavior modi?cation and reduce the spread of 

0 Provide Teacher Training to prepare teachers to work in rural primary
schools

0 Construct and Establish a New Teacher Training College to serve as a
learning and a boarding school

Method of Choosing Beneficiaries

PM will select six geographic areas within two regions of Malawi to carry out its
activities under this agreement by using information from the following sources:

Information assessments in consultation with local non-governmental
organizations (NGOs) in Malawi
Official Malawi government statistics

Existing presence and infrastructure of development aid projects operated by
NGOS in Malawi

The targeted areas are:

Chiradzulu District, Southern Region

Blantyre Rural District, Southern Region

Zomba District, Southern Region

South West Division, Blantyre Rural, Southern Region
Shire Highlands Division, Southern Region

Lilongwe District, Central Region.

Central East Educational Division, Dowa District



PAT staff will select the most needy families, individuals or communities for
participation. For specific activities, PAI will give priority to those who meet the
following criteria:

New Farmers Clubs
6 Those who have access to land
a Have demonstrated a desire to commit to the requirements of Farmers Clubs
Are willing to work collaboratively with other farming families

Teacher Training
9 Have committed to work in rural areas for a minimum of 2 years after graduation
0 Have satisfactory skills in reading and writing
a Have completed 12 years in school

(C) Program Administration

PAI will dedicate four staff personnel from Development Aid from People to
People (DAPP)/Malawi and three headquarters staff personnel to implement this
agreement.

Activity Budgets

PAI, through DAPP, has obtained a commitment from The Ministry of Education of
Malawi and other partners to fund approximately 40 percent of the total training costs for
the primary school teachers, or approximately $1,700,000.

through DAPP, has obtained a commitment from The Ministry of Foreign Affairs of
Finland to contribute approximately $600,000 towards construction and equipment of the
new teacher training college.

The National AIDS Commission of Malawi may contribute to the operation of the TCE
program by funding the field testing elements of TCE.

All other costs not covered by resources provided by the will be borne by PAI.
Recipient Agency

will select one or more recipient agencies (RAs) from among local organization(s)
that have the following:
0 Experience operating in the targeted region;
I Experience in working with PAT
0 Demonstrated experience in agricultural and rural empowerment projects; and
0 Demonstrated management experience in handling financial matters.



PAI will enter into an agreement with each RA selected that will de?ne the
responsibilities of both parties. PAI will consult with prior to the selection of any
RA and provide a copy of each signed RA agreement to 

Governmental or Non-governmental Entities

PM will work directly with following entities:
0 Malawi National AIDS Commission
6 Malawi Ministry of Education
0 Ministry of Agriculture and Food Security

Method of Educating Consumers

will publish noti?cations in local newspapers to highlight its programs in the
country. The United States Department of Agriculture (USDA) will be identi?ed as the
funding source of the project in these publications. In activities conducted under this
agreement, PAI will notify participants that USDA provided funds for the program. In
addition, PAI will recognize USDA in all printed materials produced by the program with
USDA resources.

Criteria for Measuring Progress

Anticipated monetization completion date: August 31, 2011
Anticipated activity completion date: December 31, 2012

Table Ii

 

 

i2,000 Farmers Outputs:

install 500 rope pumps

Carry out 360 farming workshops

Plant 4 million tree seedlings

Provide livestock as pass?on grants

Provide health and hygiene education

Outcomes:

240 existing demonstration tieids have been sustained

75 percent of farmers and their families are food secure

- 80 percent of farmers have improved market linkages

70 percent of farmers have access to water for drinking

40 percent of farmers have access to water for irrigation

70 percent of farmers have improved farming techniques

80 percent of farmers engaged in environmentally friendly
practices

75 percent of farmers engaged in animal husbandry

75 percent of farmers have increased knowiedge about basic
health and have improved nutrition and hygiene

Expand Existing
Farmers Clubs

 

 

 

 



 

Activity Objectives

Type and
Number of
Bene?ciaries

Progress Measures

 

Establish and Support New
Farmers Clubs

6,000 Farmers

Outputs:

Establish 120 model ?elds

Provide training in farm management and economy

Carry out 720 farming workshops

install 532 irrigation wells and rope pumps

Provide seeds (approximately 55 MT for project duration)
Distribute 2,000 hoes

Provide 1,500 pass on grants in the form of iive stock
Outcomes:

75 percent of farmers are growing one acre of food for
consumption and have a garden for vegetabic production

40 percent increase in income for participating farmers

- 60 percent of farmers have access to water for drinking

- 40 percent of farmers have access to water for irrigation

- 80 percent of?farmers practicing environmentally friendly
farming methods

50 percent increase in number of people engaged in animat
husbandry

 

 

Support Total Control ofthe
Epidemic (TCE)

 

- 300000 Family
Members

 

Outputs:

- Provide and AIDS counseling for behavior change

- Refer people to existing voluntary counseling and testing services

Refer pregnant women to Prevention of Mother to Child Treatment
Programs

Establish 316 gardens with vegetables and nutritional herbs for those
living with 

Outcomes:

- 70 percent of recipients have increased knowledge about 
prevention practices

- 60 percent of the program recipients have made an individual risk-
reduction plan

60 percent increase in number of people having access to Voluntary
Counseling and Testing

- 50 percent increase in number of women receiving assistance to
prevent transmission of HIV to their child

- 60 percent of the people in the operational areas have improved their
nutritional status

 

 



 

Activity Objectives

Type and Number of
Bene?ciaries

Progress Measures

 

Provide Teacher Training

- 600 Student Teachers
4000 Community
Members

Outputs:

- Train students as primary school teachers

- Develop model gardens at existing teacher training colleges
Develop teacher training program and curriculum to tit
changing needs

improve and expand infrastructure facilities of existing
DAPP colleges

Outcomes:

- 85 percent of students graduate and become full time,
highly quali?ed teachers in rural areas

- 60,000 chiidren received lessons from student teachers
- The teacher training colleges supply l5 percent of
vegetables consumed at the cotleges

 

Construct and Establish a

New Teacher Training College

- 250 Student teachers
- 1.000 Community
Members

Outputs:

- One new teacher training college constructed and equipped
Outcomes:

- Improved capacity ot?Malawi?s cdueatirmal system

250 morejobs added to local economy during the
construction period

125 teachers wiil graduate each year

 

 

Total Number of
Bene?ciaries

- i8,000 armors

- 300,000 Family Members
- 600 Student Teachers

- 250 Student ?l"eachers

- 5,000 Community
Members

 

 

 

6. USE OF FUNDS OR GOODS AND SERVICES GENERATED

Quantity and Type of Commodities to be Sold or Bartered

 

 

 

Table 
Commodity Amount to he Monetized
(MT)
Hard Red 30,000
Spring/DNS
Total 30,000

 

 

 

 

Impact on Other Sales

has provided suf?cient documentation for to conclude that any sale or barter of
the commodities to be supplied under this Agreement would not displace or interfere with
any sales of like commodities that may otherwise be made within Malawi.

 



Amount of Sales Proceeds Anticipated

 

 

 

 

Table IV
Amount to be Estimated Sales Estimated
COmmOdity Sold (MTS) Price Per Ton Proceeds
Hard red spring/DNS 30,000. $350 $10,500,000
Anticipated Interest 10,500
Total 30,000 $10,510,500

 

 

 

 

 

 

Private Sector Participation in the Sale of Commodities

will sell the commodities through a negotiated sales methodology. PAI surveyed the
market and determined that a negotiated sale would ensure the most favorable price. 
will keep the local  Embassy informed throughout the sales process.

Anticipated Use of Sales Proceeds

Subject to Part 11, Item 11, Paragraph C, PAI will use proceeds as set forth in the following
table and in Attachment C:

 

 

 

 

 

 

 

Table 
Activities Estimated Dollar Amount of
Proceeds

Expand Existing Farmers Clubs $2,068,000
Establish and Support New Farmers Clubs $1,497,600
Support Total Control of the Epidemic (TCE)
Program $1,655,000
Provide Teacher Training $2,171,900
Construct and Establish a New Teacher
Training College $3,1 18,000
Total $10,510,500

 

 

 

 

If actual proceeds differ from the anticipated amount or PAI uses less than the total
amount that is specified in Attachment under ?Grand Total Costs? approved for
monetization proceeds, PAI will increase or reduce the amount of proceeds allocated to
one or more of the activities listed in the table above and make necessary adjustments to
any indirect costs associated with such activity.


Expand Existing Farmers Clubs

PAI will use proceeds to sustain the progress made with existing farmer clubs established
under PAl?s previous agreement with USDA by conducting training workshops that will
further develop farming techniques, expand irrigation access to ensure higher yield,
develop environmentally friendly farming practices, and improve market linkages to
ensure sustainability. In addition, PAT will install rope pumps, plant tree seedlings,
provide livestock in the form of grants, and provide training in health and hygiene
education.

Establish New Farmers Clubs

PAI will organize farmers into new farmers clubs. PAI will conduct workshops to train
new club members in farm management and economics in order to develop their basic
skills in agricultural production to increase crop yields/production, product quality, and
farmer incomes. will also establish model ?elds, install irrigation wells and rope
pumps, provide seeds, distribute hoes, and provide livestock in the form of grants to
recipients.

Support Total Control of the Epidemic (TCE) Program

PAI will, through its RA, allocate funds to initiate and operate an HIV~education and
mobilization program, aimed at behavior change and referred to as the TCE program.
The TCE systematic approach to behavior change aims to reach every single person in a
speci?c geographical area and will include recruiting and training of ?eld of?cers for
each of the target areas. The ?eld of?cer will visit homes, schools and workplaces. The
?eld of?cers will talk, listen, answer any questions, facilitate decisions about safe sexual
behavior and will mobilize people to become volunteers in educating others as to what
is, how to prevent it, and to teach coping mechanisms. Additionally, the ?eld
of?cers will train peer educators (Passionates), refer people to health services for
voluntary counseling and testing, educate in the prevention of mother to child
transmission, and develop vegetable gardens to improve the nutritional status of those
living with 

Provide Teacher Training

PAI will allocate proceeds to train teachers at existing Teacher Training Colleges. The
trained teachers will work in rural primary schools and provide instruction in core
subjects. Teachers will also participate in specialized courses in small business
development, health, women?s advocacy or community leadership. The teacher training
curriculum will include a component of business skills and the importance of economic
development through agriculture. PAT will also allocate proceeds to supervise, develop
and promote the teacher training program. Additionally, PAI will allocate proceeds to
improve infrastructure and equipment at existing teacher training colleges.


Construct and Establish a New Teacher Training College

PAI will use proceeds to construct and equip one new teacher training college located in
the Central East Educational Division. The teacher training college will serve as a
learning institute and a boarding school.

(0 Procedures for Assuring Receipt and Deposit of Sale Proceeds

PAI will sell the commodities on terms that. require the payment to be through an
irrevocable letter of credit, or secured by either a bank guarantee or another form of
payment through a reputable bank in sound ?nancial condition. PAI will immediately
deposit the funds into the account of a bank in sound ?nancial condition. The account
will be interest bearing unless agrees to otherwise in writing. An apprOpriate
official ofPAl will supervise such account and must approve all disbursements from the
account. PM will maintain full accounting of all funds under the agreement.

DISTRIBUTION METHODS
Description of Transportation and Storage

will nominate a freight agent in the United States to arrange for delivery of the
commodities to Malawi. PAI intends that the commodities initially be delivered to the
Port ofBeira. The port is fully adequate to meet the needs of vessel harboring and
discharge of the donated commodities. PAI will make appropriate arrangements for
customs clearance, internal transportation and storage.

Description of Any Reprocessing or Repackaging

PAI intends that there will be no reprocessing?or repackaging of the commodities. lfit
later determines that reprocessing or repackaging of the commodities is necessary, 
will inform 

Logistics Plan

PAI has provided sufficient documentation for to conclude that the port,
transportation, storage and warehouse facilities in Mozambique and Malawi are adequate
to handle the flow of commodities to recipients without undue spoilage or waste.

8. DUTY FREE ENTRY

will provide in its sale contract(s) that the buyer(s) will be responsible for the
payment of any duties or taxes imposed on the commodities.


9. ECONOMIC IMPACT

PAI has provided suf?cient documentation for to conclude that the commodities to
be supplied under this Agreement can be imported and distributed without a disruptive
impact upon production, prices and marketing of the same or like products within
Malawi.

ATTACHEMENT 

HARD RED SPRING
(Dark Northern Spring/Northern Spring Wheat)

COMMODITY FACT SHEET

1. Class Hard Red Spring

2. Subclass Dark Northern Spring
3. Grade US. No 2/ob

4. Protein (Min): 13.5%

5. Moisture (Max): 13.5%

6. Dockage (Max): 0.6%

7. Test weight lbs/bu (Min): 57

8. Falling Number (Min): 300

9. Wheat of Other Classes (Max): 3.0%

10. Total Defects (Max): 1/ 3.5%

1/ Includes damaged kernels, foreign material and shrunken broken kernels
PACKAGING

Bulk or bagged shipment. The bags shall be of 50?kilogram woven polypropylene fabric
and circular?woven style bags.

Source: 2005 (Contact 202?690?0194)

Country: Malawi

Planet Aid, Inc.

Agreement 

Budget #2 2009-252
Amendment: 0

Attachment (FY 2009)

 

 

 

Item Total Appr. Total Appr. Total
Mon. USDA Approved
All Funds
Direct Costs:
Activities $10,510,500 $0 $10,510,500
Bene?ts $0 $0 $0
Equip. Leases $0 $0 $0
Equip. Purchases $0 $0 $0
Equipment $0 $0 $0
Of?ce $0 $0 $0
Of?ce US HQ $0 $0 $0
Prof. Services $0 $442,000 $442,000
Salaries $0 $337,194 $337,194
Travel $0 $11,669 $1 1,669
ITSH $0 $0 $0
TOTAL DIRECT COSTS: $10,510,500 $790,863 $11,301,363
TOTAL INDIRECT $0 $1,112,054 $1,112,054
COSTS:
GRAND TOTAL COSTS: $10,510,500 $1,902,917 $12,413,417

 

ATTACHMENT 1)

FOREIGN AGRICULTURAL SERVICE
TERRORIST FINANCING CERTIFICATION FOR
FOOD AID GRANT AGREEMENTS,
APRIL, 2005

l. The Cooperating Sponsor, to the best of its current knowledge, certi?es that it did not
provide, within the previous ten "years, and will take all reasonable steps to ensure that it
does not and will not knowingly provide, material support or resources to any individual
or entity that commits, attempts to commit, advocates, facilitates, or participates in
terrorist acts, or has committed, attempted to commit, facilitated, or participated in
terrorist acts, as herein de?ned. For the purposes ofthis certi?cation:

a. ?Material support and resources? means currency or monetary instruments or ?nancial
securities, ?nancial services, lodging, training, expert advice or assistance, safehouses,
false documentation or identi?cation, communications equipment, facilities, weapons,
lethal substances, explosives, personnel, transportation, and other physical assets, except
medicine or religious materials.

b. ?Terrorist act? means?

an act prohibited pursuant to one of the 12 United Nations Conventions and Protocols
related to terrorism (see UN terrorism conventions Internet site:
or

(ii) an act of premeditated, politically motivated violence perpetrated against
noncombatant targets by subnational groups or clandestine agents; or

any other act intended to cause death or serious bodily injury to a civilian, or to any
other person not taking an active part in hostilities in a situation of armed conflict, when
the purpose of such act, by its nature or context, is to intimidate a population, or to
compel a government or an international organization to do or to abstain from doing any
act.

 

c. ?Entity? means a partnership, association, corporation, or other organization, group or
subgroup.

It. The following steps may enable the Cooperating Sponsor to comply with its
obligations under paragraph I, above:

a. Before providing any material support or resources to an individual or entity, the
Cooperating Sponsor will verify that the individual or entity does not appear on the
master list of Specially Designated Nationals and Blocked Persons, which list is
maintained by the US. Treasury?s Office of Foreign Assets Control (OFAC) and is
available online at website:

(ii) is not included in any
supplementary information concerning prohibited individuals or entities that may be



provided by Commodity Credit Corporation or the United States Department of
Agriculture to the Cooperating Sponsor; and has not been designated by the United
Nations Security (UNSC) sanctions committee established under UNSC Resolution 1267
(1999) (the ?1267 Committee?) [individuals and entities linked to the Taliban, Usama bin
Laden, or the Al Qaida Organization] by referring to the consolidated list available online
at the Committee?s website:


b. Before providing any material support or resources to an individual or entity, the
Cooperating Sponsor will consider all information about that individual or entity of which
it is aware and all public information that is reasonably available to it or of which it
should be aware.

c. The Cooperating Sponsor will also implement reasonable monitoring and oversight
procedures to safeguard against assistance being diverted to support terrorist activity.

111. References in this Financing Certification to the provision of material support and
resources shall not be deemed to include the furnishing of funds or commodities to the
ultimate beneficiaries of assistance, such as recipients of food, medical care, micro~
enterprise loans, shelter, etc., unless the Cooperating Sponsor has reason to believe that
one or more of these beneficiaries commits, attempts to commit, advocates, facilitates, or
participates in terrorist acts, or has committed, attempted to commit, facilitated or
participated in terrorist acts.

IV. The Cooperating Sponsor?s obligations under paragraph I are not applicable to the
procurement of goods or services by the Cooperating Sponsor that are acquired in the
ordinary course of business through contract or purchase, utilities, rents, office
supplies, gasoline, etc, unless the Cooperating Sponsor has reason to believe that a
vendor or supplier of such goods and services commits, attempts to commit, advocates,
facilitates, or participates in terrorist acts, or has committed, attempted to commit,
facilitated or participated in terrorist acts.