Concept Note: DRAFT Special Protection Unit Stipend Payments Project

Special Protection Unit Stipend Payments Project, Puntland and Somaliland

Supported and implemented by:

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Concept Note: DRAFT Special Protection Unit Stipend Payments Project

Project Title: Area of Intervention: Beneficiaries:

Project Objective

Special Protection Unit Stipend Payments Stipend Payments for Security Forces/Somali Compact/PSG 2, Priority 1 Direct: Special Police Unit, Somaliland and Puntland Indirect: NGO Consortium To develop, implement and manage an electronic stipends payment system for the special protection unit of Somaliland and Puntland based on biometric registration of all police members posted to the Special Protection Unit (SPU), transitioning from a current UNDP managed system.

Duration of Project (indicative)

1 year

Project Estimated Value

USD 3.2 Million

Contact

[email protected]

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Concept Note: DRAFT Special Protection Unit Stipend Payments Project 1. Background Somalia is in the midst of major new political and security developments that will offer a greater possibility for peace and security than the country has seen in over 20 years. On 16 September 2013, the Federal Government of Somalia (FGS) and the international community endorsed the Somali Compact. The Compact provides an overarching strategy that sets out Somalia’s peace-building and state-building priorities between 2014 and 2016. It also enshrines principles for a renewed partnership between Somalia and the international community based on the Busan “New Deal for Engagement in Fragile States” agreement. The re-building of functioning government institutions and processes centred on the New Deal Compact is central to the return of stability and security in Somalia at all levels. The Governments of Somaliland and Puntland, with the encouragement and financial support from the donor and the United Nations Country Team for Somalia, have established a Special Protection Unit (SPU) tasked with providing compound security and the escort security for the international community including humanitarian and development actors. The functions of the SPU are to provide host government police protection to the international community and humanitarian and development actors. SPU operations are designed to ensure the ability of the international community to implement humanitarian and development activities. The following SPU services are provided on the request of the agencies/actors: 1) 2) 3) 4)

Static Security on 24/7 basis to UN/INGO staff residences and offices as required; Armed escort teams to UN/INGO missions in country; Quick response capacity during an emergency situation as required; and, Mobile security patrol services to UN/INGO staff residences and offices.

The NGO Safety Programme (NSP) for Somalia and Somaliland aims at contributing to international and national NGOs operating safely and securely in the region. NSP was established in 2004 by the Somalia NGO Consortium and takes the lead role in liaising with the SPU Commander and the relevant NGOs to arrange missions. Paying SPU officers and operations is crucial in the context of the humanitarian work that takes place in Somaliland and Puntland. SPU allows the UN and the various NGOs working in the areas to carry out the much needed development support to Somaliland and Puntland. If payments to SPU are not made the development support that can reach the relevant parts of the community is greatly jeopardised. SPU is a fully dedicated force for the protection of the Users. As such, the member of the units cannot be employed in any other tasks. This implies, moreover, that the operational costs of the entire unit need to be covered in full by the fund-contributing entities.

2. Justification Regular payments to the security forces are essential for creating stability in the government and in ensuring improvements in the security situation within the country. In 2014, UNOPS embarked on a stipend payments programme for Somalia Security Institutions Human Resources Project (SSIHRP) funded by US Department of State and UK Department for International Development to develop and implement an electronic payroll that would transform the existing cash-based system and significantly lessen corruption and duplication associated with stipend payments to the security forces.

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Concept Note: DRAFT Special Protection Unit Stipend Payments Project In January 2015, the NGO Consortium approached UNOPS to support them in paying stipends to the SPU in Somaliland and Puntland through a similar mechanism. These payments were previously being managed by UNDP on behalf of the UN as well as the NGO Consortium, who have since also approached UNOPS to take over payments to the SPU. Through the experience and expertise gained and established in the SSIHRP, UNOPS is well positioned to advance the Human Resources Management System for SPU Somaliland and Puntland to an electronic-based platform linking identity verification to stipend payments.

3. Proposed steps for implementation The project will take on a phased approach whilst UNDP transitions the payment process to UNOPS. The project will be broken down into the following phases:

Phase 0: Needs analysis The amount of SPU officers needed by Users is driven by the number of facilities to protect and escorts required. Additionally, a buffer pool of officers (+ 5%) needs to be in place in each location to cover operational peaks and sick or absent officers. Currently, the approximate number of SPU officers is estimated at approximately 700 in Somaliland (awaiting confirmation and subject to potential increase of 200 if funds are available) and at about 350 in Puntland. Changing security conditions in Puntland following the terrorist attack of April 2015 might result in an increase of SPU officers. Determining the monthly amount to be paid is a decision of the SPU Technical Working Group (STWG), and would need to be clarified and agreed upon before the implementation of the project begins. As for now, the locations where the SPU operate are: Puntland: Garowe, Galkayo and Bosasso, and in Somaliland: Hargeisa, Berbera, Boroma, Burco and Erigarvo.

Phase 1: Registration of the SPU Payment of stipends is subject to a biometric registration of the SPU officer. Once UNOPS has taken over the project from UNDP, it will follow its current biometric registration project procedures to register SPU members. Each SPU officer will obtain a unique TCN number and ID card that will be used for attendance records. Accordingly, UNOPS will use the first payment to ensure the registration of the SPU officers. In Puntland, the UNDP Police project acquired registration equipment to register SPU officers and, consequently, issue identity cards. Building upon the existing registration database, UNOPS will confirm the identities through a verification process of all SPU members for the purposes of paying stipends. In Somaliland, the registration and verification process of all SPU officers will require procuring the necessary equipment. Once the equipment is acquired, a registration exercise will have to be conducted. The electronic biometric payment kits can later be utilised for verification purposes in order to issue the relevant payment orders through the relevant financial institutions. While being biometrically registered, each SPU staff member will need to provide financial institution details with nominated account details for the payment of the stipends. This is on 4

Concept Note: DRAFT Special Protection Unit Stipend Payments Project the assumption that electronic payments are accepted in Somaliland and Puntland. Alternatively, mobile money accounts on any of the applicable mobile phone carriers will be accepted. Failure to provide such financial details will result in being unable to conduct the payment of the stipends to the individual. It is expected however, that cash payments will be made in the interim period.

Phase 2: Reporting to Duty Verification Biometric registration data and kits will be used for verification of static and escort SPU officers at the appointed duty stations and SPU facilities through daily monitoring and reporting, conducted by agency focal points with the assistance of SPU site commanders. These checks will attempt to ensure numbers of static guards and also the identities of those who are present are recorded for audit purposes. Specifically, in order to improve accountability, cost effectiveness and performance, as well as ensuring that compounds actually meet UN Minimum Operating Security Standards, the following measures are proposed:  

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As established in Somaliland since 2014, arrangements will be implemented to assign SPU site commanders and agency focal points for daily monitoring and reporting of SPU static guard presence; Attendance records of SPU officer can be traced in two different ways: o Manual records: UN Agencies and non-UN Agencies focal points will report daily to the UNDSS local focal point and to the NSP focal point, respectively, on the number and TCN numbers of static SPU officers that have reported to duty on the morning and evening shifts since the last communication as well as the nature and specifics of any incident. Moreover, focal points are responsible for keeping track and reporting the number and TCN numbers of the SPU officers on escort services. This system, while cheaper, implies a much higher chance for human error and a more time-consuming approach. o Electronic records: It is expected the manual records system will migrate to biometric registration kits, which are connected to electronic attendance equipment at every facility in order to create an electronic registrar of SPU officers reporting for duty. Escort guards will report to the facility of the NGO or Agency requiring the services. This system will allow for automatic generation of attendance records and usage service for each SPU officer and User, respectively. Reporting of attendance records will be based on the system implemented to generate the attendance records: o Manual reporting: UNDSS and NPS will collect daily information of SPU officers reporting for static and escort duties and report it to the UNOPS focal point in Puntland and Garowe via email. UNDSS and NPS will also compile a monthly report for submission to UNOPS; o Electronic reporting: The system should automatically generate attendance records and send them to the UNOPS focal points in both Puntland and Garowe; UNOPS will conduct random checks at any of the Users facilities and SPU facilities to verify attendance; UNOPS will report monthly on attendance, complaints, and performance records to the SPU Technical Working Group (STWG) for action. This will also include the results of the random checks; STWG will share the records with the different SPU commanders for action and continuous improvement;

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Concept Note: DRAFT Special Protection Unit Stipend Payments Project In order to more easily identify SPU officers, thus increasing transparency of their activities and ensure that human resources are not allocated to other tasks, it is advisable to study the possibility of issuing SPU-customised uniforms. Each SPU officer will be dressed in a uniform that easily identifies them as a SPU officer. The TCN number should be clearly visible. Whilst there might some potential negative consequences in the differentiation of the uniforms, this could help not only in identification purposes but also on building professionalism and in rebranding SPU as a professional dedicated security service provider.

Phase 3: Payment of stipends to the SPU Together with the biometric registration of the SPU officers, the electronic payment of the stipend directly to the officer, without any interference by the Host Government, is the crucial component of this project if transparency is to be ensured. UNDP will carry on making payments until the end of December 2015 and UNOPS will take over from 1 January 2016. UNOPS will implement its standard procedures in stipend projects establishing bi-monthly payments. Thus, by 31 January 2016, UNOPS should proceed to the first payment. UNOPS will establish ID verification for payment in a way that it does not interrupt the conduct of the SPU services. In order to be paid, the procedures establish that each SPU officer (i) must be on the approved list that will be generated by the UNOPS administration/pay staff in conjunction with the SPU Commander, and that (ii) they report for a pay parade at the duty station for identification by the Commanding Officer and by biometrically-verification payment kits. UNOPS and the SPU commanders will establish a mechanism of checks and balances to proceed with the payment of the stipend to officers who cannot show up at the pay parade because they are sick or guarding a facility or on an escort mission. The SPU officer will be provided with a receipt generated by the payment kit as proof that he reported to the pay parade and is entitled to the payment of the stipend. Moreover, UNOPS will proceed to reconcile payments based on the previous period’s attendance and performance records of each SPU officer. Based on attendance and usage records of static and escort SPU officers, UNOPS will produce payment orders and will report to STWG the charges incurred by each User for future invoicing. The list of electronic payments generated by the biometric verification will then be transmitted to the chosen Money Transfer Payment Service Provider (MTPSP), who, on its turn, will transmit on the designated payday the biometrically authorised payment to the nominated account at the financial institution provided by each SPU officer. Payments to SPU officers will only be made from funds coming from a Common Fund.

Cost-sharing and Stipends payment Pool For the purpose of paying stipends, a Common Fund shall be established, funded by UN Agencies and donors, and managed by UNOPS. However, the STWG will be responsible for collecting the funds from as well as invoicing the contributing entities. The SPU Steering Committee will be responsible for determining the cessation of SPU protection services to non-compliant Users, and notifying them of the same. The SPU Steering Committee shall decide on the cost-sharing agreements and tranches. The funds required to implement the project are divided into operational costs and stipends.

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Concept Note: DRAFT Special Protection Unit Stipend Payments Project Operational costs include managing the funds, registering SPU officers, conducting random checks and running any other activities required by the project implementation team. Many of these are fixed costs that need to be funded upfront. For instance, armoured and soft vehicles, uniforms or registration kits cannot be paid in tranches, as they are needed from the onset. On the other hand stipends, being monthly outlays, can be funded based on the proportional usage of SPU-officer days. SPU-officer-days The SPU is a fully dedicated force to the protection of the Users and is composed of a pool of officers from which users utilise resources. As such, SPU officers cannot be employed in any other tasks unrelated to the protection of the Users. Thus, SPU officers must be always ready to respond to the operational needs of the Users, whether these arise or not. SPU officers might report to static or escort duties or be on stand-by. In any case, incentives have to be paid every month. Therefore, the overall usage of SPU can be expressed as SPUofficer-days. For instance, if the total number of SPU officers in Hargeisa is 200, the total number of SPU-officer-days in any given month would be 5,200, which is 200 times 26 (this number of working days in any given month, deducting one weekly rest day). The cost-sharing agreement for the stipend could be set up as follows: 

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Users of SPU services will contribute to the Common Fund by paying, at least, three months in advance for services projected in the following three-month period. For instance, payment of services projected for the July-September period will be paid the latest May; The share of the stipends to be paid by each user will depend on the proportional usage of total SPU officer-days in a given month. The total cost of the number of SPU officer-days employed for on-standby officers will be shared based on the proportional usage of the total SPU force in a given month.

Training Capacity development or equipment support to the SPU, or both is to be extended separately in the context, and as part of the ongoing Rule of Law and Security programmatic support to the Government in Somaliland, or Puntland, or both. In such case, UNOPS will provide logistical support for training of the SPU such as travel, food and provision of training materials subject to funding but training of SPU must be supervised and conducted by an UN-approved police body. Training may include but not restricted to; Rules on use of force, convoy escorts, human rights, asset protection and self-defence. Further clarification would be required on any form weapons training/handling. SPU training, uniforms and equipping will ensure a robust professional security force who takes pride in their roles and underline a new opportunity to rebrand the SPU as a professional dedicated security service provider.

Technical Support A technical support package shall be agreed for maintenance and support of software and hardware used for biometric payment and registration. 7

Concept Note: DRAFT Special Protection Unit Stipend Payments Project

Interim Period UNOPS will work closely with UNDP to assume responsibility for the manual payment of SPU whilst the equipment for biometric registration and payment is being procured by UNOPS

Staffing UNOPS SPU Stipend Payment Management Team: Select members of this team will be shared across the different stipend payments projects of other and others and will be managing the day to day operations to ensure the smooth functioning of the stipend payments, verification of payment checklist, provide regular narrative and financial reporting to the donors and enable funds transfer to the MTPSP. The team consists of the following: 

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Project Manager: UNOPS EAH will appoint a dedicated international Project Manager, with the appropriate skills and experience in Project Management in challenging environments, for the Somali Police Stipends Project that will be shared between Puntland and Somaliland. The Project Manager will assume overall responsibility for the delivery of the project, on a day-to-day basis, and will report directly to the Project Board, through the UNOPS EAH delegated point of contact. The Project Manager will further conduct pay kit training to local UNOPS staff. The Project Manager will be located, full time, in Hargeisa, Somaliland with substantial time spent in Puntland. Biometric Registration/Electronic Payments Mentor: The Biometric Registration/Electronic Payments Mentor will be international officers. The Mentor is responsible for maintaining contact with the field teams to ensure the timely flow of data. The Biometric Registration/Electronic Payment Mentor employed under this project will be shared between Puntland and Somaliland. The Mentor will also facilitate the smooth functioning of the registration teams and payment teams in the field, and troubleshoot and problem-solve when roadblocks are encountered at the field level to ensure delivery of quality information. The Mentor will also conduct formal and “on the job” training and instruction to ensure the field teams are operating at peak efficiency and to enhance the capacity of the Somaliland and Puntland police forces. The Mentor will also have primary responsibility to maintain the hardware and software including the management and delivery of upgrades, new or replacement equipment to the project. Public Finance Management Specialist (10% of the time): A Public Finance Management (PFM) Specialist will be a national officer or from the Somali Diaspora and will be shared between the Somali Police Stipends Project and the SNA Stipends Payment Project(s). The PFM Specialist will make sure that all UNOPS systems are compliant with and fully compatible with Somali Financial regulations and international banking standards. The PFM Specialist will assist in the alignment of the payment systems in Puntland and Somaliland with government finance systems. National Project Assistants (one in each location): The Project Officer Assistants, located in Puntland and Somaliland, will be Somali Nationals recruited for their community and will be the main point of contact with the Somali Police and SPU hierarchy in their location. They will support the Project’s operations in this region especially in the conduct of random and scheduled spot checks and biometric verifications. Drivers: One Somali national officers in Garowe and one more in Hargeisa chosen for their local knowledge who will be licenced to drive armoured vehicles around their region to support the operations. 8

Concept Note: DRAFT Special Protection Unit Stipend Payments Project 

Data Handlers: Six Data Handlers for Puntland and Somaliland will be Somali National Officers tasked with operating the Biometric registration data and payments kits.

Equipment 

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Offices: The offices will be located in Garowe and Hargeisa and equipped with data connections to allow for the regular operation and support of the biometric registration equipment and the electronic payment systems. The offices will need to include furniture, equipment, LAN, and regular furniture for up to eight staff, data services and communications equipment. Vehicles: The recent Body-Borne Improvised Explosive Devise (BBIED) attack in Garowe, previously considered a safe location, underscores the need for an armoured B6 Vehicle in this location. Locations outside Garowe, such as Galkayo, Bosasso and Aarmo have always been considered a higher-security risk and any registration or verification missions outside of Garowe would need the use of an armoured B6 vehicle. Fuel, servicing and repair of vehicles will have to be budgeted for. Communications Equipment VHF and HF equipment and mobile phones will be required for security of staff operations Vehicles will be equipped with mandatory trauma kits PPE will be required for all staff. Biometric Registration Kits will be required for registration in Somaliland. Biometric Payment Kits will be needed to pay stipends in both locations. Biometric Verification Units will be essential to provide the verification and audit for all stipends payments

Travel Travel for the PM, and the biometric registration and payment teams are required around the location of Puntland and Somaliland where SPU units will be based for verification of SPU officers, random checks and payments. Travel to and from Nairobi and Mogadishu will also be required.

4. Coordination mechanism with UN Agencies and other development partners UNOPS will communicate reports and payment orders to the STWG. UNOPS will manage the funds from the Common Fund for the provision of this service.

5. Consistency with relevant development partners The assessment adheres to the Somali Compact Peacebuilding and State building Goals (PSGs). Under PSG 2, Priority 1, “Strengthen the capacity and accountability of state security institutions to recover territory, stabilise and provide basic safety and security” a requirement for this priority to be achieved is to ensure the security institutions be properly paid, equipped and sustained in order to enable them to deliver effective security alongside AMISOM and other partners. The objective of the assessment is consistent with PSG2 and its priorities.

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Concept Note: DRAFT Special Protection Unit Stipend Payments Project 6. Project deliverables Project output 1 Project output 2

Biometric registration of the SPU personnel. Stipend Payments to be made to the SPU

7. Budget and timeline Here below is the budget needed to start the project, covering for initial costs for a period of three months, against twelve months. SL No. 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11

2 2.1

3 3.1 3.2 3.3 3.4 3,5 3.6 3.7 3.8

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Costs

12 Months Value USD

Personnel Costs 3rd-party personnel Registration/Payment Mentor Puntland and Somaliland Senior Management supervision Security officer Project Manager Puntland and Somaliland Project Officer Puntland and Somaliland National Project Officer Assistant Somaliland National Project Officer Assistant Puntland Driver Puntland and Somaliland PFM specialist Finance officer Subtotal personnel 25% at the onset Travel Travel to Puntland and Somaliland, DSA, Transport, VISA, Terminal Cost Subtotal Travel 25% at the onset Equipment Biometric Registration Equipment SL Biometric Payment Equipment PL and SL Biometric Verification Equipment ID Printer equipment SL IT Office Equipment IT Support Costs Security Equipment Vehicle B6 Subtotal Equipment 100% at the onset Direct Project Costs

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3 Months Value USD

161,647

40,411

78,000

19,500

18,000

4,500

180,000

45,000

42,000

10,500

30,000

7,500

30,000

7,500

24,000

6,000

13,200 9,000 585,847

3,300 2,250 146,461

114,460

28,615

114,460 28,615 76,000

76,000

68,000

68,000

12,000

12,000

30,000 20,000 20,000 10,000 280,000 516,000

30,000 20,000 20,000 10,000 280,000 516,000

Concept Note: DRAFT Special Protection Unit Stipend Payments Project

4.1 4.2 4.3 4.4 4.5 4.6 4.7

5 6 6.1 6.2

7 8 9

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Other costs SSAFE Office Rent PL and SL Security Costs Vehicle costs UNOPS PL and SL PPE SPU Costs Uniforms Fuel Subtotal Project Costs Upfront cost Contingency (excluding stipends) 25% at the onset Payment of stipends Stipends (812 x 12 months x 100) Money handler transfer cost Subtotal Stipends 25% at the onset SUBTOTAL Project + Personnel Upfront cost at the onset Total Direct Support Costs 25% at the onset Indirect costs 25% at the onset

GRAND TOTAL

6,300 108,000 30,000

6,300 108,000 7,500

48,000

12,000

9,600

9,600

137,700 84,000 422,900

0 21,000 164,400

122,940 30,735 974,400

243,600

38,976 1,013,376

9,744 253,344

2,775,523 1,139,555 150,333 37,583 274,177 68,544

3,200,033 1,245,682

Upfront cost at the onset

Cost of SPU: Calculated at overall cost $3,200,033 / 812 SPU = $3,941 per SPU officer for 12 months. Calculation based upon a minimum number of 812 SPU officers, if number of SPU increased costs will decrease. 9. Project Challenges 

Perverse incentive: The rationale to increase the amount paid as a stipend to SPU officers is based on the premise of equating compensation for risk to private security company (PSC) guards offering the same protection services. However, this logic fails to consider why the existing difference before SPU members and PSC guards. Moreover, it is based on a comparison that is not fully accurate. PSCs lure better-trained SPU officers into joining their ranks by offering higher salaries. By matching SPU’s overall monthly income (a combination of the salary plus the stipend) to PSC guards, PSC companies will be forced to increase their financial package in order to keep manning their security services with personnel from SPU. Even more if the project intends to strengthen the training of the SPU force, thus becoming even more attractive to PSCs. This risks launching an inflationary race for the provision of security services. The more training offered to SPUs, the more attractive they become to PSCs, who will increase their offer, forcing UN and INGOs to increase their financial compensation for stipends on the basis of equating salaries to PSCs, thus creating a perverse cycle. 11

Concept Note: DRAFT Special Protection Unit Stipend Payments Project 

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Not the same level of security: Moreover, this concept assumes that PSCs provide the same level of security as that provided by SPU. This fails to account for the fact that PSCs are not allowed to carry weapons, thus offering a lower security. If, indeed, PSCs offered the same level of security, NGOs, especially, and Agencies would have no incentive to join the SPU NGO Consortium project since they could get for a cheaper price – as they would not have to contribute to cover the management costs of the project – and with a higher degree of flexibility the same level of protection. Differences within the police force: Increasing the compensation of police officers assigned to SPU to those of PSC results in doubling their currently monthly income. This risks creating competition among police officers to be part of SPU, weakening the police for other tasks not related to the protection of SPU users. Internal grievances within the police could be the result. The sense of privilege and difference could be aggravated by the provision of unique SPU uniforms. Electronic Payment: Should be considered due to the logistical and security challenges of distributing cash along with the potential for misappropriation of funding, however further discussions are required with Somaliland and Puntland authorities before electronic payments can go ahead. Exit strategy: Unless the government generates enough financial resources, there’s no foreseeable exit strategy. Increasing the amount of stipends paid to SPU officers only aggravates dependency as the financial burden on the government increases. SPU officers will be disgruntled to go back to much reduced salaries.

10. Project Prerequisites

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UNCT/SMT: To agree the following; Number of SPU required in Puntland and Somaliland, with agreement on reserve SPU contingent including escorts. Agreement on cost of SPU stipend, including administrative staff in SPU HQs’. Mechanism devised for collecting funds, UNOPS will not collect the money but will administer the payments to the SPU. Agreement with Puntland and Somaliland authorities on SPU technical working group. Agreement on future training and equipping of SPU, lead agency to be appointed. Agree transfer of funds to UNOPS.

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UNOPS: To complete the following; Arrange bank account/s in Puntland and Somaliland. Devise urgent staffing plan for project start in January. RMU to conduct a risk analysis of the project. Agree office space and transportation requirements in Puntland and Somaliland.

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Concept Note: DRAFT Special Protection Unit Stipend Payments Project 10. Project Timeline Special Protection Unit Stipend Payments Project, Somalia - Project Schedule (v1) 2016 Durati on Project Transition from UNDP to UNOPS

1 2

3

Recruitment and mobilisation Establish offices in Hargeisa and Garowe Procurement of vehicles and equipment for registration and offices

Project Implementation 4 5 6 7

Registration activities, Somaliland Continuation of payments, Somaliland Continuation of payments, Puntland Project reporting Project Completion

8 9 10

End of project evaluation End of project reports (narrative and financial) Project close out

Jan

Quarter 1 Feb

Mar

Apr

Quarter 2 May

Jun

2017 Jul

Quarter 3 Aug

Sep

Oct

Quarter 4 Nov

Dec

Quart 1 Jan

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

3 mths 3 mths 1 mth

3 mths

12 mths 2 mths 12 mths 12 mths 12 mths 5 wks 2 wks 4 wks 5 wks

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