Project Document

SUPPORT TO THE TRUST-BUILDING PILLAR OF THE NATIONAL RECOVERY STRATEGY

June 2008

Entirely funded by AusAID

I.

SITUATION ANALYSIS

The upheaval of April and May 2006 thrust the country into a socio-political crisis with potentially catastrophic consequences for its future social and economic development. Long simmering tensions and divisions, some of which pre-date the Portuguese colonisation of Timor-Leste, the subsequent Indonesian occupation and the struggle for independence, gave rise to open conflict triggered by the dismissal of close to 40% of the defence force. By the time order was restored, the state security institutions had for all intent and purposes collapsed, and the fledgling nation was teetering dangerously on the verge of civil war. Fighting between the army and the police resulted in many casualties. An estimated 145,000 people were displaced with many taking refuge in IDP camps in Dili and throughout the country (70,000 in Dili, more than half of Dilis population), while an estimated 5,000 houses and buildings were damaged or destroyed in Dili. The presidential and parliamentary elections were held in 2007 in a free and fair manner, although further conflict between politically aligned groups triggered significant displacement in Ermera in the wake of the Presidential elections and again in Viqueque after the Parliamentary elections. The Fourth Constitutional Government was sworn in on 8 August 2007. One of the first acts of the new Government was the delineation of three areas of national priority. Two of these related to the resolution of factors affecting national security: the case of the petitioners group previously discharged from the army and that of Alfredo Reinaldo and his rebel group. The third was finding a sustainable solution for the displacement problem. Whilst all three priorities have seen significant steps forward, the plight of the displaced population remains a significant area for concern. Peace remains fragile with recurring violent incidents as witnessed in 2006 and 2007. The armed attacks on the President and the Prime Minister in February 2008 further underscored the fragility of the nation. Approximately 30,000 IDPs remain in camps with the majority in the nations capital Dili.4 Recent government estimates suggest that at least the same volume are displaced and living with host families. Through the successful implementation of the Governments Hamutuk Harii Futuru National Recovery Strategy, adopted in December 2007, more than 1,090 IDP families have returned to their homes5. As past experience shows, their successful resettlement and reintegration requires not only a range of assistance packages but also a process that can pave the way for repairing the community relations strained in the aftermath of the 2006 Crisis. Finding a sustainable resettlement and reintegration solution constitutes a high priority for the Government and the international community. It is broadly agreed that addressing the set of interlinked social, political, and economic factors associated with displacement is a prerequisite for political stability, sustainable recovery and national reconstruction. Accordingly, Hamutuk Harii Futuru, is comprised of 5 pillars (housing, stability, socioeconomic development, trust building and social protection), in a concerted strategy that aims to meet the needs of the displaced population as well as the wider communities into which they will be (re)integrating. To support this process a Transitional Strategy and Appeal (TSA) was launched during the Timor-Leste and Development Partners Meeting (TLDPM) on

Recent reports from CRS, the principal NGO working with camp populations in Baucau, the only other location of recognized IDP camps, estimates the total number there to be around 1000. MSS figures provided as of the 23rd April 2008

29 March 2008 to bridge public funding gaps and support (1) remaining humanitarian needs, (2) implementation of the National Recovery Strategy, and (3) disaster risk management. At the TLDPM the Australian Aid Programme committed AU$1.5 million through the UNDP to support pillar 5 of the National Recovery Strategy, Hamutuk Harii Konfiansa, including working with the MSS to promote dialogue between relevant government ministries, local receiving communities and returning IDPs. Other pillars of the NRS are being funded and implemented by other partners.

II.

STRATEGY

The main objective of the umbrella programme is intended to operationalise the trustbuilding or Hamutuk Harii Konfiansa pillar of the national strategy and enhance coordination and complementarities among interventions undertaken by different concerned stakeholders. Trust-building is an essential component that crosses all elements of the NRS. The objective of the HHK pillar is to increase the trust between the people and the government and to

strengthen communities guaranteeing the participation of the displaced in the planning and management of initiative for the promotion of return, resettlement and reintegration.
The UNDP will (a) take a leading role in assisting the GoTL in the associated dialogue process and (b) provide overall management of an umbrella programme, with organisations that submitted proposals to the TSA and others invited to review their proposals in light of agreed criteria and re-submit. The project entitled Strengthening Institutional Structures and Mechanisms for Dialogue will be integrated under the umbrella programme for more coherence and synergy under the HHK pillar. Given the central nature of the above project to the National Recovery Strategy and the necessity for a Government-led response, the MSS/UNDP project will be pre-selected to be funded from the AusAID fund to cover all remaining operational costs of $498,548 USD. The majority of the fund allocated by AusAID will establish a small grants fund to support trust building activities and will be administered by a Programme Steering Committee comprising of MSS, UNDP and AusAID. The Hamutuk Harii Konfiansa Working Group shall be the forum for initial vetting and submission of proposals. A member of the Hamutuk Harii Konfiansa Working Group may be invited to attend meetings of the Steering Committee as an observer to ensure transparency. Implementing agencies selected for support under the small grant fund shall be invited to sign an MoU with UNDP governing the terms and conditions of the funds allocated In order to facilitate the interlinked processes of return, relocation and reintegration certain key areas need to be addressed to enable viable and durable solutions:

Repair/reconstruction of homes that were damaged or destroyed in 2006 and in 2007; Vacation of homes which have been occupied by others in the absence of their preCrisis occupants; Clarification of the occupancy rights of returning/relocating IDPs; Ensuring security and safety for all community members; Reconciliation and peace building to promote and sustain community harmony; and

Addressing of the wider socio-economic needs of communities witnessing high return rates and the reduction of key factors contributing to chronic unemployment thus making return more viable and attractive.

Strategy are to a large extent dependent on the strengthening of trust throughout society and, crucially, between the citizens and their Government.6

While many of these inter-linked ingredients are reflected within the NRS, the promotion of community reconciliation is cross-cutting, representing as it does the key to securing the stability and understanding that will be central to the relocation and integration of IDPs currently displaced across Timor-Leste. In recognizing dialogue and reconciliation as an essential component of the recovery strategy, it is also accepted that All elements of the

A Do No Harm approach needs to be taken when addressing the needs of the IDPs. Given the levels of poverty throughout East Timorese society, any approach to return, integration or re-integration of IDPs in communities requires a holistic approach that recognises and responds to the material and emotional needs of the community receiving IDPs. While IDPs face daunting prospects in re-building their lives, the receiving community also faces genuine socio-economic challenges. As a consequence, the reintegration process must take a broader perspective to ensure the long-term stability of communities. The Government through its NRS has identified an overall framework under which mechanisms can be developed by which the needs of both IDPs and recipient communities can be addressed. Particular thought has been given to the operational plans under which IDPs can receive support to return to their former homes, including recovery packages geared towards supporting the repair and reconstruction of damaged and destroyed housing. Additionally, mechanisms are being developed by which IDPs can be offered viable options for relocation to new housing. Central to processes of return and relocation, however, will be the need for a range of programs that can support short, medium and long term needs associated with the social aspects of the different stages of IDP resettlement. Community relations that were severed must be repaired and new ones must be established. Fundamental to the success of these processes will be a range of trust-building activities with a dialogue-based reconciliation process playing a central role.

Hamutuk Harii Futuru A National Recovery Strategy, Hamutuk Harii Konfiansa section: Principles. Approved by the Council of Ministers, December 2007.

III.

SELECTION PROCESS AND CRITERIA

The Hamutuk Harii Konfiansa Working Group shall be the forum for initial vetting and submission of proposals. A Steering Committee, comprising representatives of the MSS, UNDP and AusAID (with a possible observer from the HHK working group) will assess all applications, ensuring complimentarity of projects and a holistic approach under this initiative. Its funding allocation decisions are final. Proposed projects must address the following eight (8) selection criteria in their application for funding support. I Links to Hamutuk Harii Konfiansa within the Hamutuk Harii Futuru Projects applying for funding should demonstrate how they contribute to the objective of HHK and address the key activities outlined in the Hamutuk Harii Futuru National Recovery Strategy (NRS) as related to Hamutuk Harii Konfiansa. The NRS document identifies the following areas for confidence-building: 1. 2. 3. 4. Strengthening the Governments capacity to engage in dialogue; Engaging with Martial Arts Groups to encourage positive contributions; Information dissemination about the NRS and its implementation; Promotion of internal tourism to support exchange of ideas and understanding (this shall include the promotion of go-and-see visits between communities and between IDPs and their former communities); 5. Post-return/relocation monitoring of IDPs and their host communities; and 6. Dissemination of educational materials highlighting a common and shared history and culture.

II Links to Government Projects applying for funding should demonstrate clear links to Government bodies identified within the NRS as responsible for oversight in these areas. The Hamutuk Harii Futuru document delineated Government oversight responsibilities in the six areas mentioned above to the following statutory institutions, respectively: 1. Ministry of Social Solidarity; 2. Secretary of State for Youth and Sport; Ministry of Economy and Development; 3. Ministry of Social Solidarity; Ministry of State Administration and Territorial Management 4. Ministry of Tourism; Ministry of State Administration and Territorial Management, Ministry of Social Solidarity; Ministry of Education (Secretary of State for Culture); Ministry of Agriculture and Fisheries; 5. Office of the Provedor for Human Rights; Ministry of Social Solidarity; and 6. Ministry of Education (Secretary of State for Culture); Ministry of State Administration and Territorial Management; Ministry of Social Solidarity. Each applicant organisation should therefore produce supporting evidence in the form of an endorsement by a government body from the relevant area of activity covered by their proposal

Applying organisations are also encouraged to identify their links to other agencies and organisations working in this area III Links to the MSS-led Dialogue Process Given the central role of dialogue in securing stability and understanding in the relocation and integration of IDPs, all programs applying for funding will need to demonstrate how they aim to interface and support the dialogue process as led by the Ministry of Social Solidarity with support of UNDP. IV Previous experience and capacity A history of executing similar projects, or projects that rely upon a similar skill or knowledge base, will be considered. This includes the implementation capacity and impact of the agency/ies previous project implementation. Organizations should demonstrate their institutional capacity for the skills and/or knowledge represented as core elements of the proposed project. V Limitations on funding per Programme/Project There shall be a maximum grant of US$150,000. Projects applying for sums larger than $100,000 should demonstrate: a) considerable merit on the grounds outlined in parts I - IV above; and b) commitment of at least $50,000 of existing funds from the applying body or another donor/funding source. VI Coverage In considering applications for funding, the Steering Committee will try to ensure maximum coverage for areas affected by the Crisis, both geographically and across the six areas of HHK as envisaged within the NRS policy document. Additionally, proposals that benefit both the IDPs and the wider community into which they are (re)integrating will be prioritised. This includes a focus on preventing future conflicts by better equipping community leadership to mitigate against future crises. Programme activities targeting women and youth are envisaged as cross-cutting priorities and will be similarly prioritised VII Timeframe and Sustainability Organisations and agencies applying for programmatic funding shall be limited to a period of 12 months starting from the date of transfer of funds after approval of their application by the Steering Committee. Funds administered under the programme can be utilised until the 30th June of 2009. The Steering Committee will ensure a balance of programs that target short, medium and long term needs in addressing trust-building, as identified by the Hamutuk Harii Konfiansa Working Group TOR: Short-term: Availability and access to reliable sources of information about the support on offer and the ways in which it can be obtained. This includes programming to help IDPs and their intended recipient communities begin to communicate directly and visit one another.

Medium-term: Programmatic support to promote community cohesion and stability and ensure the durability of return as well as to help communities resolve any outstanding disputes or other obstacles to the social inclusion of returning/relocating IDPs. Longer-term: Monitoring of returnees in order to ensure that communities are maintaining stability. This could include wider consultations to identify and meet broader community needs and thus demonstrate that not only IDPs are supported in the recovery process. Central to this long-term viability will be training and capacity building for community leadership to mitigate against the negative effects of future crises. In addition, consideration will be given to programs seeking to build a broader, sustainable enabling environment for returns to take place and remain stable such as those targeting youth/martial arts groups; inter-area visits to promote understanding and cultural events strengthening national unity/ cohesion. VIII Monitoring and Evaluation Each proposal will also be evaluated based on the monitoring and evaluation mechanism and strategy that has been proposed. This will include how the activities contribute to the HHK objective, as well as documentation of the process and lessons learned and demonstration of a regular review of progress which includes adjustments made based on this evaluation. Central to the monitoring and evaluation mechanism will be a risk log, which should at the onset of the project outline the key risks to the success of the project. These should include external (i.e. enabling environment) and internal factors (i.e. project dynamics).

IV.

RESULTS AND RESOURCES FRAMEWORK

Intended Outcome as stated in the Country Programme Results and Resource Framework: UNDAF and CPD 2003-2005 were formulated prior to the 2006

crisis, and therefore did not include an outcome related to Crisis prevention and recovery. Given the context in TL, they were extended without major changes till 2008. However, during target setting for 2007, the Country Office introduced the following under Practice 4 - Crisis Prevention and Recovery: Comprehensive and sustainable reintegration programmes for IDPs, returning refugees and ex-combatants in place. Outcome indicators as stated in the Country Programme Results and Resources Framework, including baseline and targets: n/a

well as communities receiving IDPs.

Applicable Key Result Area (from 2008-11 Strategic Plan): Conflict Prevention and Recovery Partnership Strategy: The project will strengthen the partnership between MSS, UNDP TL, concerned government authorities, local stakeholders and active NGOs/CBOs, as Project title and ID (ATLAS Award ID): Support to the Trust-Building Pillar of the National Recovery Strategy
INTENDED OUTPUTS
1.1. Approving the funding allocation mechanism and procedures

INDICATIVE ACTIVITIES 1.1.1. Criterion discussed and agreed upon for the 1.1.2. 1.1.3. 1.2.1. 1.2.2. 1.2.3.
selection of projects Small-Grant procedures and protocols guidelines developed and agreed to for the grant fund including reporting arrangements Call for proposal implemented Acting on the project management board of the dialogue project Securing technical and financial oversight and monitoring of progress Promoting synergies and complementarities with other initiatives under HHK and umbrella programme

RESPONSIBLE PARTIES
UNDP MSS

INPUTS
Project Manager/ Reintegration Specialist: USD 80,000

Indicators: Allocation mechanism endorsed in consultation with stakeholders No. of applications received Small-Grant procedures approved 1.2. Integration of the project entitled Strengthening Institutional Structures and Mechanisms for Dialogue within this project Indicators: Trained dialogue teams operating in Dili and 2 in Baucau & Ermera7 Availability of: o Training materials o Dialogue plans and stakeholder mapping for target communities No. of proactive visits to communities to try to promote dialogue and subsequent number of meetings initiated/facilitated resulting in durable return of IDPs 1.3. Determining the funding of recipients Indicators: Proportion of funds allocated Delivery rate Signed contracts for all successful proposals 1.4. Monitoring, Evaluation and Reporting Indicators: M&E plan approved by PSC Monitoring reports approved by PSC
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UNDP MSS

Project Manager/ Reintegration Specialist

1.3.1 1.3.2

Convening Steering Committee to assess and select proposals Signed contracts and transfer of funds

UNDP MSS

o Project Manager/

Reintegration Specialist
o Micro-Capital Grant for

NGOs: USD 775,122 1.4.1 1.4.2 1.4.3 Convene PSC to monitor and review reports Conduct mid-term and final evaluation Prepare final report UNDP
o Evaluation consultant for

final report (two weeks): USD 20,000 o UNDP PME Unit

A total of five teams will be established in Dili with one in each of the regional areas of Ermera and Baucau

V.

ANNUAL WORK PLAN

Years: 2008-2009
TIMEFRAME EXPECTED OUTPUTS 1.1. Approving the funding allocation mechanism and procedures PLANNED ACTIVITIES 1.1.1. Criterion discussed and agreed upon for the selection of projects 1.1.2. Small-Grant procedures and protocols guidelines developed and agreed to for the grant fund including reporting arrangements 1.1.3. Call for proposal implemented Budget supported by the Strengthening 2008
Q3 Q4

2009
Q1 Q2

RESPONSIBLE PARTY

PLANNED BUDGET
Funding Source Budget Description Amount

UNDP

00055

71100 ALD Employee Costs

80,000

1.2. Integration of the project

within this project 1.3. Determining the funding of recipients

Strengthening Institutional Structures & Mechanisms for Dialogue

Institutional Structures and Mechanisms for Dialogue project

1.3.1 Convening PSC to assess and select proposals 1.3.2 Signed contracts and transfer of funds 1.4.1 Convene PSC to monitor and review reports 1.4.2 Conduct mid-term & final evaluation 1.4.3 Prepare final report

UNDP

UNDP

00055

72600 Grants

775,122

1.4. Monitoring, Evaluation and Reporting

X X

X X X UNDP UNDP 00055 00055 71200 International Consultants 75100 Facilities & Administration 20,000 65,869

TOTAL

940,991

VI.

MANAGEMENT ARRANGEMENTS

The programme will be implemented by UNDP under the leadership of MSS and in close consultation with relevant partners. UNDP will act as the fund manager; it will perform, in addition to substantive functions, general financial management and reporting. Decisions will be jointly adopted within the framework of the Programme Steering Committee, which would include representatives of MSS (Chair), UNDP, AusAID and HHK Working Group (advisory role). The Steering Committee shall have the right to invite a member of the HHK Working Group to join it as an observer to ensure transparency in its processes and discussions. The Programme Steering Committee will (1) Provide overall guidance and direction to the programme, ensuring the programme is well coordinated and remains within specified constraints; (2) Assess proposals referred by the Hamutuk Harii Konfiansa working group and decide on/approve funds allocation to submitting NGO for implementation; (3) Provide direction and advice for exceptional situations when the tolerances are exceeded; 4 Assess and decide on changes; (5) Assess planned deliverables against agreed outcomes and level of delivery; and (6) Review and approve reports and make recommendations for follow-on actions. A Programme Manager will be recruited to manage the umbrella programme. S/He will report to UNDP Senior management through the Assistant Resident Representative/Crisis Prevention and Recovery. S/He will be supported by an Operations Officer and guided by UNDP M&E Unit. The Programme Manager will (1) Provide day-to day management of the programme; (2) Prepare implementation plans, including monitoring and evaluation for the umbrella programme (3) Provide technical advice to programme implementation including development of guidelines and procedures for those making applications to the umbrella programme; (4) convene Programme Steering Committee meetings at least every 2 months, and act as secretariat for this committee; (5) Process fund applications through competitive bidding according to UN rules and regulations; (6) Process invoices upon receipt, certify goods and services and liaise with Finance Unit(s) to ensure timely payment; (7) Maintain record and control systems; (8) Prepare progress and financial reports on achievements and disbursements of funds; (9) Prepare the final programme report; and (10) Manage the asset inventory. The following diagram illustrates the governance structure of the umbrella programme.
Programme Steering Committee
AusAID Project Assurance
(To be determined)

MSS

UNDP

HHK Working Group Project Manager

UNDP (To be recruited)

Project Support
UNDP

Output 1
Approving the funding allocation mechanism & procedures

Output 2
Integration & support to the MSS/UNDP Dialogue Project

Output 3
Determining the funding recipients

Output 4
Monitoring, Evaluation and Reporting

Implementation by funding recipients (NGOs)

VII.

MONITORING FRAMEWORK AND EVALUATION

The M&E Framework will be based on the indicators for HHK as outlined in the Transitional Strategy and Appeal (TSA) based on the NRS. Monitoring and evaluation activities will be undertaken in accordance with UNDP standard policies and procedures, with reference to AusAID M&E guidance. Each proposal will have its own M&E plan, which will be collated into a M&E framework by the Programme Manager with assistance from UNDP M&E Unit. The Final M&E framework will be endorsed by the PSC. Indicators and reporting will be aligned with MSS systems wherever possible, to enable the info to feed into GoTL monitoring and planning. Monitoring results will be shared with the PSC on a quarterly basis. The programme manager will prepare and submit quarterly progress reports (both narrative and financial). A comprehensive final report (both narrative and financial) describing the process, approach, implementation results, recommendations and lessons learned will be submitted upon completion of the programme. A final evaluation will be carried out in accordance with UNDPs results-oriented monitoring and evaluation planning cycle. The M&E plan will be finalised in consultation with the HHK working group. It will include as a minimum the following indicators (refr. TSA) to assess the processes of return or resettlement:

MSS Dialogue programme content developed, documented and trainings conducted. Number of personnel from MSS and implementing partners trained in MSS community dialogue methodology Number of socialisation events on the NRS facilitated by MSS & partners Number of community activities and dialogue events that promote IDP returns and reintegration being implemented in partnership with local leaders. Number of IDPs receiving MSS assistance package to facilitate their return/reintegration. Number of community leaders reporting a positive improvement in social cohesion as a result of the HHK activities in their area Youth participating in the programme attest to having benefited from the training and can cite samples of using new skills in community dialogue. Number of activities implemented by community groups following this programs support. Number of confidence and trust building activities conducted. % of failure to resettle - return of IDPs to IDP camps or host families No. of outbreaks of violence in the host communities of return or resettlement

In addition, Table 1 identifies the main potential risks to be monitored in order to mitigate and/or counteract any resulting negative impacts should they materialize.

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Table 1: Risk Log

Risk No.
1

Risk Description
Volatile security situation

Impact
Failure to reintegrate IDPs in communities and implement the programme

Probability (L, M, H)
L-M

Degree of Impact (L, M, H)

H

Mitigation
Close monitoring of security situation as affected by underlying tensions between IDPs and their communities, food insecurity; and mitigation of potential disagreements through mediation and dialogue, with participation of PNTL UNPOL ISF in dialogue where appropriate. Incremental approach through advances/ installments Frequent monitoring and recovery A highly transparent and participatory approach to design, selection and implementation will be adopted. Regular consultations will be undertaken in two multistakeholder fora (HHK, PMB). Allocation of funds is linked to a delivery schedule to act as an incentive Clear criteria consulted with HHK and choice based on request for proposals programme complies with governments NRS and MSS leadership on HHK group and PSC Advocacy by international community and support to government for parallel implementation of the different HHF pillars

Lack of transparency on behalf of beneficiaries and loss of funds Conflicting interests and agendas among different stakeholders

Lack of accountability and early closure of programme Poor cooperation and delays in progress

M-H

Weak or delayed delivery on behalf of stakeholders Poor transparency in funds allocation Decrease in Government Leadership Poor coordination or delivery of different parts of NRS or Poor/uneven coverage of HHK/HHF

Poor delivery of funds Frustration of communities, poor outcomes Lack of stakeholder participation Lack of ownership

Delay in future returns and poor sustainability for those IDPs involved

Note: L=Low, M=Medium, H=High

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VIII. LEGAL CONTEXT

This document shall be the instrument referred to as such in Article 1 of the Standard Basic Assistance Agreement (SBAA) between the Government of the Democratic Republic of Timor-Leste and the United Nations Development Programme, signed on 20 May 2002. Consistent with the Article III of the Standard Basic Assistance Agreement, the responsibility for the safety and security of the executing agency and its personnel and property, and of UNDPs property in the executing agencys custody, rests with the implementing partner. The executing agency shall: 1. Put in place an appropriate security plan and maintain the security plan, taking into account the security situation in the country where the project is being carried; 2. Assume all risks and liabilities related to the executing agencys security, and the full implementation of the security plan. UNDP reserves the right to verify whether such a plan is in place, and to suggest modifications to the plan when necessary. Failure to maintain and implement an appropriate security plan as required hereunder shall be deemed a breach of this agreement. The executing agency agrees to undertake all reasonable efforts to ensure that none of the UNDP funds received pursuant to the Project Document are used to provide support to individuals or entities associated with terrorism and that the recipients of any amounts provided by UNDP hereunder do not appear on the list maintained by the Security Council Committee established pursuant to resolution 1267 (1999). The list can be accessed via http://www.un.org/Docs/sc/committees/1267/1267ListEng.htm. This provision must be included in all sub-contracts or sub-agreements entered into under this Project Document.

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IX.

ANNEXES

14

UNDP Timor-Leste UN House, Caicoli Street, Dili, Timor-Leste Tel: +670 331 24 81 Fax: +670 331 35 34 Email: registry.tp@undp.org Website: www.undp.org.tl