Dear Members of the Sanaag Community,
Horn Relief (HR) would like to inform you of the status of the Laas Qoray Jetty equipment and follow up on the status of the project since the withdrawal of the key donor, Oxfam Novib, and eventual closure of the project by Horn Relief in 2009.
I would first like to provide you a timeline of the events that have taken place since the inception of the project in 2006. The project obtained funding from one key donor, Oxfam Novib (through Oxfam International).
The amount committed by Oxfam was US$ 4,729,500 in 2006 with the total project budget at that time worth US$ 10,959,739. These funds were provided on the condition that the project implementation would be swift as Oxfam had strict internal deadlines to meet otherwise the funds would be re-allocated to another project.
The other condition was that Horn Relief would need to raise the project deficit (in the amount of US$ 6,230,239) from Diaspora and international donors. From 2006 until 2009 Horn Relief was actively fundraising while simultaneously trying to implement project activities under significant constraints.
First we undertook various meetings with Diaspora and Sanaag community members introducing the project in Europe, Canada and USA. Then we proceed to open an office in Minnesota that would focus on working with the Diaspora on fundraising and advocacy.
That office and other fundraising initiatives organized by the Diaspora community jointly with Horn Relief resulted in US$ 476,036 being raised from the Somali Diaspora but in particular the Sanaag community. As far as we know, this is the largest donation from the Somali Diaspora to a development project in Somalia, a feat that the Sanaag communities should be proud of.
In addition to the Diaspora fundraising, the Nairobi office of Horn Relief has organized donor roundtables, written proposals and traveled to various international capitals and held a series of meetings with many international donors, including governments of Italy, Finland, Japan, UK, Norway, Kuwait, Saudi Arabia, United Arab Emirates, United States, Netherlands, Sweden, Iran, Arab League, and the World Bank as well as Islamic Development Bank (IDB).
These efforts have been taking place from 2006 until late 2009. Although the project has received overwhelming and extensive support from the Somali communities, the required funds could not be raised due to the widespread piracy and kidnapping taking placing in the coast of Somalia.
The disputed nature of the Sanaag region between governments of Puntland and Somaliland along with the increased insecurity from piracy and kidnappings of internationals created an environment in which donors were highly reluctant to engage in this project. Further, while trying to undertake swift implementation of project activities we were also significantly hampered by the worsening security context as even sending engineers and other international consultants was becoming impossible.
Due to our inability to meet the two conditions set forth by Oxfam in raising the funds to meet the project deficit, after two years of support, Oxfam pulled out of the project in 2008.
The project was able to accomplish the following activities with the funds from Oxfam and the Diaspora as well as the community contribution:
- 3 Comprehensive Feasibility studies compiled such as the Economic/financial feasibility, the Environmental feasibility, and Socio-political feasibility study.
- Commissioned DHV, a well renown international maritime firm based in the Netherlands for the Detailed Technical Design of the Port, including a tender document for potential companies including a Bill of Quantities for the construction
- Geotechnical Investigation
- Wave Study
- Resistivity Survey
- Materials
- Investigation
- Soil Investigation
- Design and develop a bill of quantities to establish a quarry operation to construct the embankment
- Purchase of Heavy equipments and Earth movers required for the quarry operations, including a full crusher plant
- Shipment and logistical support for the movement of the equipment from Italy to Djibouti and by road from Djibouti to Bosaso.
- Establish an office in Minnesota to support Diaspora fundraising and advocacy
- Numerous fundraising events in Canada, UK, Australia, USA, Netherlands, UAE, Sanaag, and more organized by the Sanaag and other community supporters, Horn Relief Nairobi, Horn Relief Minnesota and Horn Relief Bosaso offices.
- Detailed project documents for various international donors in English and Arabic
- Hiring the required personnel to undertake the project activities
- Rehabilitation and opening an office space in Laas Qoray
In late 2008, Horn Relief sent a letter informing the Diaspora, the Sanaag communities and all other supporters of the project that Oxfam Novib pulled out of the project. Subsequently, Fatima Jibrell visited both US and UK to discuss the way forward with the Diaspora community and also held various conference calls in which Horn Relief informed the Diaspora as well as the Sanaag community about the Oxfam Novib decision. At this point, Horn Relief invited the community to propose a plan for taking the project forward and Horn Relief even made various suggestions including a private and community partnership. At this stage Horn Relief offered the community full access and use of all the studies, proposals and any other relevant project documents. However, up to now, no serious and concrete proposals or plans were shared with Horn Relief in taking the project forward.
At the time of Oxfam Novib pull out, Horn Relief had procured all the equipment from Italy and was in the process of shipping them to Somalia via Djibouti. Horn Relief prepared an exit strategy for Oxfam that would ensure that all committed costs, including the movement of the equipment to Bosaso, would be covered. However, the funds given by Oxfam prior to the pull out were not enough to cover all the costs. The organization incurred significant expense in moving the equipment from Italy to Djibouti and then by road from Djibouti to Bosaso, a process that took more than 8 months. Since the arrival of the equipment to Bosaso, Horn Relief has been maintaining the equipment and providing security and other expenses without any external funding. This has resulted in an accumulated deficit for the project and Horn Relief by the 2009 audit of US $ 154,228. However, since the 2009 audit, the current Horn 3Relief deficit for this project is slightly over US$ 200,000 and this cost continues on a daily basis for maintenance and security of the equipment.
As of December 31st2009, the project had an income of US$ 2,791,687 and an expenditure of $2,945,915. 79% of this expenditure was funded by Oxfam (US$ 2,315,651) and 17% from the Diaspora and the local Sanaag community (US$ 476,036) and the remaining 4% is the current project deficit of US$ 154,228 funded internally by Horn Relief. It should be noted that the expenditure was for all the activities highlighted earlier, including the cost of staff and offices in Minnesota, Nairobi, Bosaso and Laas Qoray and the technical support and services of various international engineering firms and consultants over a 3 year period. Although the Diaspora successfully raised US$ 476,036, Horn Relief and the project spent more than $240,000 in staff and operating expenses for the Minnesota office over the 3 year period for fundraising efforts - over 50% of the funds raised were used on overheads financed by the project and Horn Relief. Based on international standards for fundraising where only 10% is used towards fundraising expenses, the actual funds raised by the Diaspora is US$283,640.
All the income and expenditure referred to have been audited by external audit firms, which have been posted on the Horn Relief website
As a result of this deficit and the financial burden placed on a small organization such as Horn Relief, the Board of Directors made a resolution in 2009 to officially close the project and sell the equipment to offset the existing deficit and use the remaining funds to implement a project for the benefit of the Sanaag community. Another significant reason for the decision to sell the equipment is that heavy construction equipment needs proper maintenance and to be used regularly otherwise they will be destroyed and lose all value. The project equipment in Bosaso absolutely cannot stay idle as keeping them idle without any concrete plans for their use in theimmediate future will surely result in their destruction. To watch the slow destruction of the equipment is not a scenario that Horn Relief management and Board of Directors is willing to accommodate.
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