1. Local and Regional Procurement: Update on USAID Initiatives April 8, 2009 Brian Bacon USAID Office of Food for Peace

2. 2 Local and Regional Procurement (LRP) What is LRP? LRP is not new (WFP 2007: $612 m) Former Administration request for authority to use 25% of Title II budget Farm Bill Pilot (USDA) (FY09-12): $60 m President’s May 1 Global Food Security Response request to address the impact and underlying causes of global food price increases Administration request: $125 m for LRP (USAID) Supplemental (FY08/FY09 Bridge): Up to $75 m IDA + $50 m DA = $125 m

3. LRP Funding - USAID ComponentIDADATotal 1) Meeting Emergency Needs Up to $75 m (FY 08/FY 09) Up to $20 m (FY 09) Up to $95 m 2) Making Local and Regional Procurement Work for Farmers Up to $30 m (FY 09) Up to $30 m Total: (Up to)$75 m$50 m$125 m Supplemental: $20 m to WFP for Purchase for Progress (P4P)

4. Meeting Emergency Needs with LRP USAID Office of Foreign Disaster Assistance (OFDA), in consultation with USAID Office of Food for Peace (FFP) Up to $75 m IDA and $20 m DA = Up to $95 m Guidelines for Unsolicited Proposals and Reporting, Sub-sector: Local and Regional Procurement of Food http://www.usaid.gov/our_work/humanitarian_as sistance/disaster_assistance/resources/ http://www.usaid.gov/our_work/humanitarian_as sistance/disaster_assistance/resources/ Approx. $63 m committed 10 awards (3 PVO, 7 WFP)

5. LRP – Criteria and Reporting Requirements Minimum criteria: Demonstrate an urgent need for food assistance Save lives, reduce suffering and/or serve more people than by using international procurement of Title II food aid Precipitating, contributing and/or exacerbating factors associated with the emergency are directly related to the global food price crisis Reporting requirements: General procurement information Timeline Impact on procurement market Beneficiaries

6. LRP – USAID/OFDA Grants CountryAmount ($ mil)PartnerCommoditySource market Ethiopia3.90WFPFamix, White beans Ethiopia Somalia20.10WFPMaizeSouth Africa Somalia (2)1.80WFPCSBKenya, Uganda Nepal5.00WFPRice, Pulses, Salt, WSB, Vegetable oil Nepal, India Tajikistan3.35Save the Children/Mercy Corps Wheat, Lentils, Vegetable oil Kazakhstan, Russia Kyrgyzstan7.09Mercy Corps/Save the Children Wheat, Beans, Vegetable oil Kazakhstan Ethiopia (2)10.00WFPFamix, PulsesEthiopia Kenya0.31WFPCSBKenya Pakistan8.85WFPWheat, Pulses, WSB Pakistan Zimbabwe2.6Mercy CorpsMaize meal, Sugar, Salt, Vegetable oil Zimbabwe, South Africa Total63.00WFP (7), PVO (3)

7. Making LRP Work for the African Farmer USAID Africa Bureau, Office of Sustainable Development; USAID Missions Up to $30 m DA Support a targeted response to meet urgent food security needs and strengthen staple food markets to support local and regional procurement East Africa focus: Ethiopia, Kenya, Uganda, Rwanda Regional organizations; CAADP

8. Expected Outcomes: –Efficient linkages to markets –New financial management tools –Measured impact on food staple trade Current Status: –Operational Plans in place in Kenya, Ethiopia, Uganda, and Rwanda –Multi-donor support for ACTESA –WFP P4P proposal ($20 million) approved Making LRP Work – Outcomes and Status