WFP Regional Bureau for Asia and the Pacific - 2016 SPRs RBB 2016 SPRs by project type | Page 178

Standard Project Report 2016
Project Type
Cereals
Total Food
Distributed in 2016
Oil
6,442
Pulses
535
Mix
926
Other
4,232
Total
399
12,534
Cash Based Transfer and Commodity Voucher Distribution (USD)
Project Type
Country Programme
Single Country EMOP
Total Distributed in 2016
Cash
Value Voucher
Commodity Voucher
475,637 - -
4,000,113 - -
4,475,750 - -
Supply Chain
WFP has over 40 years of experience importing, locally procuring and distributing food assistance in Nepal. The
country's terrain, landlocked and along the world's highest mountain range, requires multiple methods of in-land
transportation (trucks, tractors, pack animals and porters) to reach programme beneficiaries. WFP has developed
the necessary storage facilities and transportation infrastructure that is sufficient to reach beneficiaries in all
programme locations. Furthermore, WFP has a logistics plan that will prevent spoilage and waste, while maximising
the project's benefits. Specifically for this purpose, WFP's partners—international and local non-governmental
organizations (NGOs) and government agencies—maintain a schedule of regular warehouse inspection and
cleaning. WFP also provides regular training to own and partner staff on food quality control and warehouse
management, while privately contracted truck and transport companies are trained on safe and secure transport of
commodities. Tied to WFP's in-country rice fortification strategy are future plans to transition to local production and
procurement of food commodities, to be developed from 2017.
Food procurement
WFP imports all commodities for all projects into Nepal completely free of customs duties. No taxes or duties are
applicable for food items provided through WFP, as per the umbrella agreement signed between WFP and the
Government. WFP requests exemption certificates from the Government for each imported consignment and also
for local purchases where taxes are applicable.
For all food procurements, local purchases are prioritised to motivate and strengthen local markets and gain value
for money in cheaper prices and shorter delivery times. However, this also depends on the availability of food items
within the country, their cost-effectiveness and also on the preference of donors.
In 2016, 90 percent of food was sourced from the local markets supported under the country programme (CP), and
the remaining requirement was received as international contributions. Given the large volume of in-kind rice
contributions from the Government for Component 1 and Super Cereal for Component 3 and the immediate
response emergency operation, the amounts procured by WFP from local manufacturers was limited. The PRRO
200787 and the PRRO 200875 both purchased the majority of food (over 95 percent) from the local market. Only
vegetable oil for the PRRO 200787 was primarily procured internationally, mainly because of higher
cost-effectiveness. International purchases consisted only of the ready-to-use supplementary food (RUSF),
Plumpy'Sup, which was not available in Nepal. The EMOP which was launched to support earthquake-affected
populations, concluded in early 2016, hence the required quantity of rice was purchased from the local market.
Logistics management
WFP uses two modalities to deliver food: 1). direct delivery of food up to the final distribution point (FDP) where the
partners distribute food to the beneficiaries, and 2) delivery of food up to the extended delivery point (EDP), where
the field-based government structure takes over the further transport of food to the FDPs; thereafter the community
becomes responsible to deliver the food to the distribution sites, such as schools. In order to more effectively
manage the delivery of food, WFP rolled out the logistics management tool—Logistics Execution Support System
(LESS)—in 2016.
Nepal, State of (NP)
12
Country Programme - 200319