US embassy cable - 04ROME896

UNCLAS  ROME 000896 
 
SIPDIS 
 
 
FROM U.S. MISSION IN ROME 
 
PHNOM PENH FOR AMBASSADOR RAY AND USAID DIRECTOR 
STATE FOR AS/PRM DEWEY, PRM/P, EAP/BCLTV AND IO/EDA BEHREND 
AND KOTOK 
USAID FOR DAA/DCHA GRIGSBY, DCHA/FFP LANDIS, ANE/ESA 
USDA/FAS FOR CHAMBLISS/TILSWORTH/GAINOR 
GENEVA FOR AMBASSADOR MOLEY, RMA LYNCH AND NKYLOH/USAID 
USUN FOR AMBASSADOR NEGROPONTE AND MLUTZ 
BRUSSELS FOR USAID/LERNER 
NSC FOR JDWORKEN 
 
E.O. 12958: N/A 
TAGS: EAID, EAGR, AORC, PREF, KUNR, WFP, UNHCR 
SUBJECT: WFP BOARD APPROVES CAMBODIA PROTRACTED RELIEF AND 
RECOVERY OPERATION (PRRO) VALUED AT U.S. DOLLARS (USD) 46.88 
MILLION - 85,000 METRIC TONS 
 
 
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SUMMARY 
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1. The WFP Executive Board, at its first regular session 
(February 23-26), approved a Protracted Relief and Recovery 
Operation for Cambodia. The project 10305.0, entitled 
Assisting People in Crisis, is for thirty months (July 2004- 
December 2006), and covers 2,491,710 beneficiaries. Total 
cost to WFP is USD 46.88 million. Over the life-of-project, 
WFP will supply (subject to the availability of funds) a 
total of 85,000 metric tons of food aid. End summary. 
 
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Background 
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2. There is a clear justification for continued food aid to 
Cambodia, given that: (i) Cambodia is both a least developed 
(LDC) and a low-income, food-deficit country; (ii) 
agricultural production still suffers from the after-effects 
of war, internally displaced persons and widespread 
landmines; and (iii) the country continues to be wracked by 
natural disasters. Given its recent history, Cambodia has a 
plethora of disadvantaged groups including internally 
displaced people and returned refugees, war widows, orphans, 
child combatants, and disabled. The prevalence of child 
labor and of cross-border trafficking of women and children 
illustrate the difficulties that poor and vulnerable groups 
face in securing more sustainable livelihoods. WFP is 
presently the largest UN player with an annual Protracted 
Relief and Recovery (PRRO) Operation budget (2001-2003) of 
approximately USD 20 million/annum. 
WFP assistance to Cambodia under this proposed PRRO will 
cover: a) disaster management and community asset creation 
(food-for-work), 30,728 tons, 1.46 million beneficiaries 
over life-of-project; b) education sector support through 
school feeding, 38,362 tons, 474,000 beneficiaries; and c) 
health and nutrition, 13,446 tons, 158,500 beneficiaries. A 
3 percent contingency reserve (2,464 tons) is also 
requested. 
 
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U.S. intervention in support of approval of the Cambodia 
PRRO 
--------------------------------------------- ------------ 
 
3. Herewith the essence of the supportive U.S. intervention: 
 
-The work of nurturing the conditions for democratic 
development in an impoverished nation so new to the 
democratic experience and so lacking in basic institutional 
development and human resources must be seen as complex and 
long-term. 
 
-All available data point toward a tremendous need for 
continued assistance, particularly given recent information 
suggesting an increase in child and infant mortality over 
the past five years, alarmingly high anemia and malnutrition 
rates, the highest adult HIV/AIDS prevalence rate in Asia, 
the highest rate of TB in the region, etc. 
 
-While WFP is careful to target its food for work response 
to the poorest communities, special efforts are required to 
avoid "make-work" projects that have only marginal impact on 
the root causes of chronic poverty. WFP is encouraged to 
intensify its focus on post-project maintenance, 
particularly with NGOs and community organizations. 
 
-USDEL stressed the need for a "deeper" partnership between 
 
WFP and the host country which would involve RGC commitment 
to defray a percentage of WFP's operational costs. 
 
-USDEL requested clarification as to how WFP plans to 
involve the other two major Rome-based agencies, namely the 
Food and Agricultural Organization (FAO) and the 
International Fund for Agricultural Development (IFAD) - in 
its 2004-2006 Cambodia relief and recovery agenda. 
 
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Donor support to WFP's Cambodia PRRO operations since 1999 
--------------------------------------------- ------------ 
 
4. Covering the period January 1, 1999 - June 30, 2004 
(PRROs 6038.0 and 6038.1), the United States has provided to 
date 42,919 metric tons through WFP, valued at USD 26.0 
million.  Japan, the largest donor to WFP Cambodia, has 
contributed since 1999 a total of 90,121 metric tons valued 
at USD 40.22 million. 
 
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Other donor comments 
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5. Germany commented that cash-for-work (rather than food- 
for-work) should be seriously explored by WFP. Several 
donors underlined the need to intensify local purchases. 
Note. WFP Country Director Rebecca Hanson estimated that 
about 20 percent of WFP's commodity requirements are met 
through local purchasing. She also informed that WFP was 
assigning a P-3 level international finance officer. End 
note. There were questions related to WFP's exit strategy, 
and concern that results/impacts were mixed. Germany felt 
that the risk assessment analysis on progress related to the 
political process "may be overly optimistic." 
 
 
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Executive Board approval 
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6. The WFP Board approved the Protracted Relief and Recovery 
Operation for Cambodia. The project 10305.0, entitled 
Assisting People in Crisis, is for thirty months (July 2004- 
December 2006), and covers 2,491,710 beneficiaries. Total 
cost to WFP is USD 46.88 million. Over the life-of-project, 
WFP will supply (subject to the availability of funds) a 
total of 85,000 metric tons of food aid. Hall 
 
 
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 2004ROME00896 - Classification: UNCLASSIFIED