Productive Safety Nets Program (APL III) Additional Financing

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The development objective of the Third Productive Safety Nets Program (APL III) Project is to reduce household vulnerability, improve resilience to shocks and promote sustainable community development in food insecure areas of rural Ethiopia. There are four components to the project. The first component is safety net grants. This component will provide cash and in-kind transfers to chronically food insecure households through: (i) labor intensive public works for able-bodied households; and (ii) direct support to labor-poor households. This component will also allocate financing for administrative costs and capital inputs for woredas to provide complementary inputs as well as technical supervision and monitoring of transfers and public work activities. This includes additional incentives to woredas that demonstrate improved performance in timeliness and predictability of transfers to households and public works implementation. The second component is drought risk financing. This component aims to provide timely resources for transitory food insecurity in response to shocks within the existing program areas. This component will be financed using a contingent grant, which will provide resources for scaling up activities under first component in response to localized or intermediate weather or price related shocks in PSNP woredas. In the event no shocks occur, the resources of this component can be utilized to finance activities eligible under first component of the 2013/2014 annual plan. The third component is institutional support. This component will support institutional strengthening activities focusing on (i) program management at all levels; (ii) capacity building support for the overall program and needs specific to the risk financing facility; (iii) monitoring and evaluation; and (iv) transparency and accountability. The fourth component is support to the Household Asset Building Program (HABP). This component will finance a core set of interventions aimed at: (i) strengthening the delivery of demand-driven and market-oriented advisory services for household investments; (ii) improving the efficiency and effectiveness of financial service delivery to food insecure households; and (iii) supporting program management.