Arl PLAN OF OPERATIONS FOOD FOR PROGRESS FY 2006 1. NAME, ADDRESS AND CONTACT PERSON: Planet Aid, Inc. Development Ald from People to One Cross Streeli People in Malawi, MA 01746, USA PrlvaIe Bag 342, Chichirii Blantyre 3, Malawi Contact Principal contact and negotiator for Planet Aid, Inc.: Contact: --ExemptIon 5 Marie Lichtenberg Director of DAPP in Malawi #1 Inter-national Partnerships Phone: Exemption 6 #2 Planet Aid, Inc. and Humana Ermail: -- ExemptCOUNTRY OF DONATION: Malawi 3&4: KIND 8: QUANTITY OF COMMODITIES REQUESTED 8: DELIVERY SCHEDULE Commodity Use of Quantity Metric Package Size Delivery at U.S. Commodity tons (MT) Port I-Iard White Winter Monetization 10000 Bulk July 2005 Wheat 10000 Bulk July 2007 10000 Bulk July 2008 TOTAL 30,000 5. PROGRAM DESCRIPTION (3) Activity Objectives This is a threeryeaI program. The agricultural development activities will start in the tirst year, as monetization proceeds become available A-2 Monetization: Planet Aid, Inc. (PAI) will monetize 30,000 metric tons of Hard White Winter Wheat in Malawi, at an estimated 10,000 metric tons per year. PAI will enter into a recipient agency agreement with its local counterpart in Malawi, Development Aid from People to People (DAPP in Malawi), a locally registered nongovernmental organization, to use sales proceeds to:  Establish 230 Farmers’ Clubs, benefiting 11,500 farmers (approximately 69,000 individuals). 180 of these Farmers Clubs will be implemented under the existing DAPP Child Aid program in Lilongwe and Chiradzulu, while 50 will be integrated into the HIV/AIDS program (TCE).  Establish and operate 4 Total Control of Epidemic (TCE) programs covering 240,000 people residing in some of the most HIV- affected rural areas of Malawi.  Recruit and train 150 rural primary school teachers at the DAPP Teacher Training College in the district of Blantyre. (b) Methods of Choosing Beneficiaries Beneficiaries of Monetization Proceeds The Child Aid program managers and TCE key staff will be tasked to identify the beneficiaries of the Farmers’ Club program in cooperation with local leaders and the community itself. The selection of the members of the Farmers Clubs will be based on the interest and dedication of each person to participate in the program and comply with all required demands. Priority will be given to households with at least ½ acre of land. For the HIV/AIDS Total Control of the Epidemic Program (TCE), PAI will require DAPP to collaborate with the National AIDS Commission and local and national authorities in Malawi to determine the 4 sites that will receive the program infrastructure giving priority to the rural areas within Blantyre, one of the hardest hit Districts of Malawi with an HIV prevalence of 26.9 % within the adult population. PAI will have DAPP select 150 individuals to become primary school teachers based on academic qualifications, commitment to work in rural areas of Malawi for a minimum of 2 years, and satisfactory skills in reading, writing and speaking. Selection will be undertaken by the Teacher Training College in Blantyre, where applications for scholarships will be processed in close cooperation with local authorities and the Department of Education. At least 50% of the teachers will be recruited from the areas where Farmers Clubs and TCE are in operation, thus linking the three programs together - as teachers are expected to play a key role in securing continuation of the Farmers Club program after graduation. This is a long-term investment in rural agricultural development. A-3 (c) Program Administration Title % of Time President of Planet 10% Aid, Inc. Director of Int. 15% Partnerships/ HPP/PAI Director, DAPP 20% Farmers Club Coordinator 100% Program Coordinator DAPP Teacher training Program TCE Corps Commander 80% TCE Division Commander 100% Monetization Manager 100% DAPP Financial Director 50% Bookkeeper 30% 75% Main Responsibilities Overall responsibility for program oversight, monitoring and quality reporting to USDA. Chief Coordinator of program development, quality supervision and liaison work between PAI, DAPP and WISSH. Overall responsibility for program oversight, development and reporting to PAI/USDA. Responsible for starting up and implementing the Farmers Club component complying with all described demands and timeline in the Project’s Operational Manual. Overall responsible for carrying out the teacher training program ensuring quality of the education with the result that the graduated teachers are ready to meet the challenges in rural areas after graduation. Responsible for excellent organization and development of the TCE process in Malawi, including education of key staff, liaison and coordination with national authorities, preparations of quarterly gatherings and other major events. Responsible for the implementation of the TCE Program in the 4 targeted areas including identification of Field Officers and Passionates, training programs, providing inputs for donor reports, monitoring day-today activities and troubleshooting. Responsible for preparing and carry out the monetization process, including coordination with The Ministry of Industry, complying with all rules of the tender process, final negotiations with customers and securing funds are received according to contracts signed. Responsible for financial management and preparation of financial reports, preparing budgets, completing budgets versus actual, reconciliations, overseeing the monetization bank account and ensuring grant compliance Responsible for assisting the Finance Director in project accounting. Funding Source PAI PAI/HPP Monetized proceeds Monetized proceeds Monetized proceeds Monetized proceeds Monetized proceeds Monetized proceeds Monetized proceeds Monetized proceeds A-4 (d) Activity Budgets DAPP will provide central office space, material inputs, while Humana People to People will provide developmental and technical support valued at an estimated $25,000 per year. All other costs not covered by USDA will be borne by PAI. (e) Recipient Agency PAI will sign recipient agency agreements with DAPP and WISHH to implement this program. PAI will deposit proceeds into an account in Malawi or in the United States and transfer funds to bank accounts designated for the recipients in quarterly installments for the duration of the program. DAPP is an experienced and registered local organization established under Malawian law with a successful 10-year history and track record in implementing rural training programs, income generating activities and programs within education and health. (f) Government or Non-government Entities DAPP will consult and collaborate with the Ministry of Agriculture in carrying out the Farmers Club program. It will increase its on-going activities with the Malawian National AIDS Commission through the TCE program and will further strengthen its collaboration with the MOE through the selection and training of rural primary school teachers. (g) Method of Educating Consumers Families engaged in the Farmers Club program will receive a flyer, and will be informed verbally or with literature provided by Child Aid and TCE staff, that the people of the United States of America provided the funding for the program through a U.S. Government donation. PAI will advertise USDA as the donor of program funds on its web sites, in newsletters, and in any video produced. (h) Criteria for Measuring Progress Activity Type & Number of Beneficiaries Timeframe for Implementation Region Monetize Commodities N/A 4 months to complete each year Blantyre Identification of 4 TCE areas Recruitment of Field Officers Training of TCE Field Officers N/A Within 1st. month 200 TCE Field Officers 200 TCE Field Officers Within 2nd month Blantyre rural Blantyre rural Blantyre rural Within 3rd. month Food Tonnage (MT) 10,000 MT per year N/A N/A N/A A-5 Introduction of the Field Officers to the community Continuous educational visits to homes within the TCE areas Weekly meeting for the training and monitoring of Field Officers Recruitment of members of Farmers’ Clubs under Child Aid and TCE 200 TCE Field Officers Within 4th month Blantyre rural N/A 240,000 people within the 4 geographical areas 200 Field Officers Start within 4th. month, and continue for 32 months Blantyre rural N/A Start within 3rd month and continue 33 months Blantyre rural N/A Extension workers and management Start within 2nd. month and continue 34 months N/A Start up Farmers Clubs in rural areas 11,500 farmers Start within 3rd. month and continue 33 months Training of primary school teachers 150 rural teachers Technical Assistance and training from WISHH 210 staff trained Starting within 1st month, training for 29 months (Total training duration is 30 months) Within 2nd. month, continues 34 months Lilongwe, Chiradzulu and Blantyre rural Lilongwe, Chiradzulu and Blantyre rural Blantyre rural Lilongwe, Chiradzulu and Blantyre rural N/A N/A N/A Effects on Private Sector Development This program will support private sector development in a variety of ways. Monetization will enable buyers to obtain a product of extremely high quality that is not available regionally. In addition, milled waste/ by-product is used by livestock farmers to improve the quality of their feed, resulting in improved animal status, thus contributing to increased milk production in cows and increased sales prices for animals sold. The waste/ by-product is mixed with other grains to improve the nutritional profile of animal feed. A-6 6. USE OF FUNDS OR GOODS & SERVICES GENERATED (a) Quantity & Type of Commodities Commodity Hard White Winter Wheat TOTALS Amount to be Monetized (MT) 30,000 30,000 (b) Impact on Other Sales Given the high level of wheat imports into Malawi, the monetization of 10,000 MT of wheat annually will not distort local markets. Malawi produces extremely limited amounts of wheat, importing the vast amount of wheat consumed. (c) Amount of Sales Proceeds Anticipated Amount to be Commodity Sold (MTS) HARD WHITE 30,000 WINTER WHEAT Interest TOTAL 30,000 Estimated Sales Price Per Ton $200 Estimated Proceeds $6,000,000 6,000 $6,006,000 The above are net prices. (d) Private Sector Participation in the Sale of the Commodities: PAI will bring on board an experienced Monetization Manager for the sale of the hard white winter wheat, and will manage the accounting of the received funds. PAI will ensure that the sales are open to all eligible private sector bidders. Consumers might include millers, processors, traders, and other corporate consumers in Malawi. Buyers will be selected on the following criteria: price, quantity requested, corporate liquidity, and payment terms. Contracts will be signed each year with customers, prior to departure of the commodities from the US. A-7 (e) Use of Sales Proceeds Expense Categories Direct Costs: ITSH Sales Expenses – 5% of Grand total Agricultural development – Child Aid Farmers’ Clubs Agricultural development – TCE Farmers’ Clubs TCE - HIV/AIDS Education and Mobilization Training of rural primary school teachers, development and supervision and improvement of infra structure Technical support and training in nutrition (ASA) Measurement and validation costs (ASA) Indirect Costs – applied to program activity costs (10%) TOTAL DIRECT and INDIRECT COSTS 1st Year Estimated Dollar Amount of Monetization Proceeds 2nd Year Estimated Dollar Amount of Monetization Proceeds $0 $110,000 $0 $110,000 $0 $110,000 $0 $330,000 $600,000 $600,000 $600,000 $1,800,000 $166,000 $166,000 $166,000 $498,000 $594,000 $594,000 $594,000 $1,782,000 $250,000 $250,000 $250,000 $750,000 $65,000 $65,000 $65,000 $195,000 $15,000 $15,000 $15,000 $45,000 $202,000 $202,000 $202,000 $606,000 $2,002,000 $2,002,000 3rd Year 3-Year Estimated Programme Dollar Totals Amount of Monetization Proceeds $2,002,000 $6,006,000 NOTE: Any additional monetization income will be re-allocated by PAI to the Farmers Club component and Teacher Training, while any reductions in monetization proceeds will be subtracted from the funds available for the TCE Program. Description of Monetization Program Activities Agricultural Development – Child Aid Farmer’ Clubs: PAI will provide DAPP, the local Humana People-to-People NGO affiliate in Malawi with approximately $ 600,000 yearly from monetization proceeds for DAPP’s Child Aid Program to mobilize and organize 9,000 farmers into Farmers’ Clubs, under the administration of the Child Aid programs in Lilongwe and Chiradzulu to improve their farming skills and introduce simple agricultural techniques to 1) improve yield by utilizing organic fertilizing and introduce rope pump water technique with the aim to secure low cost irrigation. 2) ensure decrease in loss of A-8 harvest by teaching families simple drying techniques and management of storage safety 3) Utilize analyses of local commodity market and prices to advice members of Farmers Clubs on types of crops to produce and give direction as to how to market their products resulting in increased income 4) Assist to organize and negotiate price of transport of commodities enabling farmers to develop new markets and achieve higher prices. The main objective of the Child Aid Program of DAPP is to empower poor, mainly rural, families to improve their living conditions within health, nutrition, food security, education and economic sectors. Child Aid has been very effective in mobilizing, organizing, and building the capacity of communities in Malawi. After Farmers’ Clubs are organized and working, Child Aid will monitor them and continue to provide organizational and technical support. Farm families who already participate in the Child Aid Project of DAPP in the targeted areas will be eligible to join the Farmers’ Clubs project, as will other poor farmers in the surrounding areas. The Farmers’ Clubs project will also include a small grants program to enable farmers to increase their income through agriculture. Up to 100 small grants will be made, at $500-1,000 per grant. Approximately two-thirds of the grants will be made for agriculture activities, with the remaining one-third to be made for activities such as water systems, health improvement, construction of latrines and similar rural needs Agricultural Development – TCE Farmers’ Clubs: PAI will provide DAPP, with approximately $ 166,000 yearly from monetization proceeds for DAPP’s TCE Program to mobilize and organize 2,500 family members into Farmers’ Clubs, utilizing the same model and methology as described above under Farmers Clubs implemented under Child Aid. Overall measurable results expected from the Farmers Club program over 3 years are; Indicator: Total number of beneficiaries of the program (11,500 farmers x 6 family members) Number of direct beneficiaries, which are members in the Farmers Club program Number of Farmers Clubs in operation Increase in yield per acre or M2 cultivated in average Decrease in loss of harvest in kilos in average per farmer Increase in annual income per farmer in average (from starting point) Year 1 Year 2 Year 3 69,000 69,000 69,000 11,500 11,500 11,500 230 230 230 10% 25% 35% 10% 20% 30% 25% 50% 100% As preparations for the Farmers Club program, a base line survey will be carried out with the aim to measure results and evaluate the program impact on an annual basis. A-9 TCE - HIV/AIDS Education and Mobilization: PAI will provide DAPP with proceeds to initiate and operate an HIV-education and mobilization drive, aimed at behavior change - and referred to as the TCE program. There will be 4 TCE programs each covering approximately 60,000 people. Each area will cost approximately $148,500 per year, thus all 4 areas will have an estimated cost of $594,000 per year. PAI will use about 55 percent of these funds to pay salaries and other allowances for employees of DAPP and use the remaining proceeds for training in counseling, mobilization and behavior change, increasing general HIV/AIDS knowledge about how one can prevent contracting HIV and improve the understanding on how to live longer, if the individual is already infected. Expenses will also include materials, rent, equipment, transport, printing, monitoring, supervision, and program development. PAI will allow DAPP to use funds for any travel required to organize a number of meetings with local leaders to discuss program application and to seek cooperation in program implementation. Funds may cover costs for DAPP to conduct a survey to determine if the TCE program needs any changes for adaptation to a particular area. The TCE systematic approach to behavior change aims to reach every single person in a specific geographical area annually and will include recruiting and training of field officers for each of the four target areas. The field officer will visit homes, schools and workplaces. The officer 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 HIV/AIDS is, how to prevent it, or to teach coping mechanisms. Additionally, officers will train peer educators, refer people to health services for voluntary counseling and testing, and educate in the prevention of mother to child transmission. PAI will require DAPP to arrange for and pay experts to provide an initial four-week training period for the field officers and DAPP will coordinate weekly meetings to provide ongoing training and monitoring for these 200 TCE field officers. Training of rural Primary School Teachers: PAI will provide DAPP approximately $250,000 per year to cover recruitment and training of a total of 150 student teachers at the DAPP teacher-training college. PAI will allow DAPP to use an additional $50,000 annually to cover program development and supervision. PAI will require DAPP to collaborate closely with local and regional governmental bodies. DAPP will train teachers to work in rural primary schools and will provide instruction in the basic core subjects. Teachers will furthermore participate in specialized courses in small business development, health, women’s advocacy or community leadership. The teacher training curriculum will include a strong component of business skills and the importance of economic development through agriculture. Model farming will be established at the teacher training college to be used in the practical training and at the same time provide nutritious vegetables for the college and for local sale. The teachers are expected to serve as role models after graduation, bringing new and modern practices into education, and to engage themselves in rural community development. A-10 Technical support and training in nutrition / measurement and validation costs: PAI will provide the ASA with approximately $80,000 per year for three years to provide technical assistance, nutritional training and evaluation. ASA/WISHH will provide the training and technical assistance on the preparation of soy foods to TCE Field Officers. Nutrition education will focus on basic nutrition information, including macronutrients, micronutrients, changing nutritional needs throughout the lifecycle, the impact of nutrition on overall health and disease prevention, and dietary guidelines. In addition to training Field Officers, WISHH/ASA will also train instructors at the DAPP Teacher Training College. Using a TOT model, instructors will pass on their nutrition knowledge to students. Efforts will be made to include handouts, pictures, charts and other visually stimulating material to ease discussion and increase knowledge when trainees share nutrition information with others in their community. (f) Procedures for Assuring the Receipt of Deposit of Sales Proceeds PAI will sign a contract with its sales agent to provide five percent of sales revenues annually to cover monetization services. PAI will require the agent to have the buyer(s) deposit all sales proceeds into an interest-bearing PAI designated bank account in Malawi or the United States. PAI will transfer funds on a quarterly basis to DAPP and the ASA or in accordance with terms of signed agreements. 7. DISTRIBUTION METHODS: (a) Description of Transportation & Storage System: PAI intends to use the port of Beira in Mozambique to bring commodities into Malawi. Located at the mouth of two rivers in central Mozambique, Beira has traditionally served as a transshipment point for moving goods in and out of Zimbabwe and southern Malawi. Beira has eleven berths, allowing for the acceptance of both cargo and bulk shipments. The port has a maximum (springs) draft of 10.5 meters, (neaps) draft of 7.6 meters, and an LOA of 210. Though PAI intends to monetize all commodities prior to arrival, thus reducing the need for storage facilities, PAI will secure warehousing if necessary. Ample warehouse space is available for holding 10,000 MT. The port currently allows for three days of free storage per container, and the following seven days are billed at $9 per day. After a period of ten days, storage costs are increased to $18 per day. Inland transportation costs will be covered by the buyers of monetized commodities. (b) Description of any Reprocessing and Repackaging No re-packing or re-processing is required. A-11 (c) Logistics Plan: PAI will nominate a freight forwarder in the United States to arrange for commodities to be delivered to the port of Beira. PAI will work with buyers to arrange for the pick up and transport of commodities from Beira once they have arrived to avoid and/or defray warehouse costs at the port. It will be the responsibility of commodity buyers to secure appropriate transportation from the port, in addition to paying necessary customs and tax fees to the Government of Malawi for the importation of commodities - buyers of monetized commodities will provide their own transportation and warehousing. 8. DUTY-FREE ENTRY As PAI is not requesting any commodities for distribution, duty-free entry will not be sought. Buyers of monetized commodities will be expected to pay duty, excise, and surtaxes as required by the Government of Malawi. 9. ECONOMIC IMPACT: The commodities being donated for monetization will pose no disincentives to domestic production. Malawi produces very limited quantities of wheat, relying heavily on imports to meet its requirements. In 2003, Malawi produced about 1,500 MT of wheat, while estimates indicate that Malawi consumes 60,000 MT of wheat products annually. 10,000 MT of wheat represent less than 1% of Malawi’s total annual cereal requirements. The milling of wheat will also benefit livestock farmers who use the waste/by-products to improve the quality of their animal feed.