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~Fo&.A ";J~T ;JUff)FEDERAL NEGARIT GAZET A

OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

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CONTENTSProclamationNo. 19/1996

Ethiopian Social Rehabilitation and DevelopmentFund EstablishmentProclamation Page 106

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PROCLAMATIONNO. 19/1996A PROCLAMATIONTOPROVIDEFORTHE

ESTABLISHMENTOF THE ETHIOPIAN SOCIALREHABILITATIONAND DEVELOPMENT FUND

WHEREAS, it is necessary to help the rural poor haveaccess to basic social services, and to raise their incomegenerating potential through the provision of economicinfrastructureand services;

WHEREAS,to this end, it is found necessary to expandthe EthiopianSocialRehabilitationFund, initially establishedon a pilot basis, into a country-wide programme;

WHEREAS, it is necessary to create an organ for theimplementation of this programme and for the suitablemanagement of a bottom-up approach of project iden-tification,formulationand implementation;

NOW,THEREFORE,in accordancewith Article 55(1)of the Constitution of the Federal Democratic Republic ofEthiopia, it is hereby proclaimed as follows:

PART ONEGeneral

1. Short Title

This Proclamationmay be cited as the' 'Ethiopian SocialRehabilitation and Development Fund EstablishmentProclamationNo. 19/1996."

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Negarit G.P.O.Box 80,001

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2. Establishment

I) There is hereby established the Ethiopian SocialRehabilitation and Development Fund (hereinafter"the Fund") as an autonomous government entityhaving its ownjuridical personality.

2) The Fund shallbe accountable to the Prime Minister.

3. Objectivesof theFund

The Fund shall have the following objectives:I) to improvethe living standardsof rural communities

through the provision and strengthening of basicsocial services;

2) to enhance the income generating capacity of poorcommunities by laying down economic infrastruc-ture and providing services;

3) to promote a community-based approach in projectidentification,preparation,implementation,adminis-tration and maintenance;

4) to assist in the formation and development of self-sustainingmicrofinanceinstitutionsto providecreditservicesto the poor;

5) to assist grassroots organizations and communitiesdevelop theirtechnicalandmanagerialcapabilitiesinall aspects of project activities.

4. Powersand Duties of the Fund

The Fund shall have the powers and duties to:I) provide assistance in the establishment and streng-

thening of basic social servic~s;2) provide assistance in the creation of employment

opportunities through the execution of sub-projectsat the local leveland the provision of micro-creditona pilot basis, with a view to having the rural poorengage in sustainableincome-generatingactivities;

3) organize community-training programmes to en-hance the participation capabilites of grassrootscommunity organizations and communities in allaspects of project activity;

4) encourage women to participate in all projectactivities;

5) own property;6) enter into contracts;7) sue and be sued in its own name;8) perform such other activitiesas are necessary for the

attainmentof its objectives.

5. Organizationof the FundThe Fund shall have:

I) at the Central Level:(a) a Board of the Ethiopian Social Rehabilitation

and Development Fund (hereinafter' 'theBoard"); .

(b) a Central Office;(c) a General Manager, a Deputy General Manager

and the necessarystaff.

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2) In each Region:(a) a Regional Steering Committee;(b) a RegionalFund Office;(c) a Regional Fund Office Manager, a Deputy

Manager, as required, and the necessary staff.

PART TWO

CentralOrgansof the Fund

6. Members of the BoardThe Board shall have the following members:1) the PrimeMinister or his

representative .......................................2) the Head of the Regional Affairs Sector

of theOfficeof thePrimeMinister "

3) the Minister of Finance "...............4) the Minister of Economic Development

and Cooperation .....5) the Minister of Water Resources ..........6) the Minister of Agriculture ,............7) the General Manager of the Fund ........

Chairman

member. "

"

"

"

Member &

Secretary7. Power."and Duties of the Board

I ) The Board shall direct and supervise the overalladministration and operation of the Fund.

2) Without limiting the generality of the foregoing, theBoard shall:

(a) formulate policies as well as Operational Direc-tives and amendments thereto;

(b) approve the annual budget and work programme;(c) approve the annual financial report;(d) determine the salary scales for personnel;(e) secure the cooperation of Regional and, ap-

propriate, Federal government organs for theefficient and smooth implementation of theFund's overall activities;

(f) decide on other policy matters of the Fund.

8. Meetings of the Board

1) The Board shall meet once every three months;provided, however, that extraordinary meetings maybe held at any time at the call of the Chairman.

2) There shall be a quorum where more than half of themembers of the Board are present at a meeting.

3) Decisions of the Board shall be made by a simplemajority vote of the members present. In case of a tie,the Chairman shall have a casting vote.

4) The Board may adopt its own rules of procedure.

9. Powers and Duties of the Central Office

The Fund's Central Office shall have the powers andduties to:

I) promote the activities of the Fund throughout the

c~}Untry;2) assist Regional Fund Offices develop their capability

in project preparation, promotion, appraisal, im-plementation, monitoring and follow up;

3) prepare and consolidate the annual budget and workprogramme of the Fund and submit same to the

, ',' .~'

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4) monitor the budgetary and work programme implemen-tation as well as the financial operations ,of Regionalf,und Offices an4, ensure, their c:ompliance with theOpera:~ion~CDir~tivesof the Fu.nd;

5) effect exPenditure in accordance with the budget ap-proved for the Central Office;.. ,

6) review replenishment requests from Regional Fund Of-fices and forward same to financing sources;

7) undertake, and effe<;tpayments for, foreign purchases;8) prepare and submit to the Board quarterly, semi-annual

and annual reports on the activities and financialsituation of the Fund; .

9) manage the ov;erall capacity building, training and, r~search programmes of the Fund;

10) forward to the Board policy }?f9PO,salson the Fund;11) oversee the execution of the Fund's activities.

10. The General Manager and the Deputy General Manager ofthe Fund

1) The General Manager ,and the D~puty'. GeneralManager of the Fund shall be appoin~d by the Board.

2) The General Manager shall, subje~t to the overalldirecting of the Board, be responsible for the properexecution of the activities of the Fund in accordance

with its Operational Directiyes.3) Without limiting the generality of the foregoing, the

General Manager shall:. (a) exercise the' powers and duties of the Central

,. Officeprovidedfor in'Article9 herein;(b) employ and administer employees of the Central

Office in accordance with federal civil servicelaws;

(c) effect expenditure in accordance with the budgetapprQved,for the Central Office;'

(d) represent the Fund in all its dealings with thirdparties at the level 'of the Central Office;

(e) delegate his authority to employees of the CentralOffice where found necessary for the efficientperformance of the Fund's activities.

4) In the absene of the General Manager, the DeputyGeneral Manager shall discharge all the functions ofthe General Manager.

PART THREE

Regional Organs of the Fund

II. Members of the Regional Steering Committee

A Regional Steering Committee shall have the followingmembers:1) the Chairperson of the Regional

Council or hislher representative "'"'''''' Chairperson2) the Head of the Social Development

Sector Member(s)3) the Head of the Economic

Development Sector ................................4) the Head of the Planning and Economic

Development Bureau ...............................5) the Head of the Finance Bureau ..............6) a Representative of the branch of the

Commercial Bank of Ethiopia or of theDevelopment Bank of Ethiopia ...............

7) Representatives of CivicOrganizations .

8) the Manager of the Regional FundOffice'.""'"'''''''''''''''''''''.''''''''''''''''''''''''''''' Member&

Secretary

"

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! ;., ;; ',c';rc;:""rrr (~ I:':~, fhAA h"""I1I1~ tlO'/,'I.' 1.'t\tfJ1t; ""'l'IC I 12:""Powersand Dilties of a "Regional Steering Cotnmittee

",f1p,1}',. fhAA h"""I1I1~ tlO'/,'f; fO'/,h',.I\..)' Each Regional Steering Committee shall have the power

1.'AtlJ')C,' ""'II1C:"}" f..1 ;.:J'A : and duty to:

~, flt..AI\' lD-,..rr fOil.tl'tY,1D- fl.,1}',. "1"""',.JI(I. -nlLU '1) ensure that the"'activities of the Fund within thehCP:~" : fll..').I;, fl.'/., hl..1.1.IJD oooo~,fC; flf1C}',. Region are carried out in accordance with thisIV'I)).9"'}" 001"/;'1' oohC,'m.,,1 ,f/;:J"ltlJA : ..c Proclamation, the Operational Directives and the

~, ftIAI\' I.,') Y: 1.'1"'1..:" (}.'1' hll:J~:,r, fO'/"f"'Cf11D-1 decisions of the Board;

ftIAI\") "ioo:J'~ fl.'/.' '\'r:"I/.,9°c.. O'~'1' O"'"l1.'y,"" 2) approve the annual work programme and budgetOl.:),~ "'"IiJh4\~ 1.',.'111...1' (W' h"'"ltlf..~')' t\00{;L1.~'l)' I ' proposed by the Regional Fund Office and submit

ID-I)). t\f1(;}',. ,f"'C'lA : ...same to the Board, through the Central Office, forj;, ftIAI\'1 1.'~I.,:" fW' f"I"'"I'{i qoo'1,c.."ioo'J'~ fFI,. ;! final decision;., hl..1.1.9°1.. f~"r..C..'),.. ~;I'(;,r...}'. ,f1.,r:,.JIA :' , ~; 3) app~ove the semi-a~nual and a~nu~1 reports of ~he

fj- ,.. A A, .1 ~ V, '.. :" , ,'" .,. ' "",,, ".. -"..-;" i ( RegIonal Fund OffIce on physIcal ImplementatIon., 1111",,1 iI,I..., 1. 1"1., f" 'I 00'/, (.0 'I \ C:,(),II'I I' t "" d f" 0 I 0 0 .

:.. -, , .' ~ an mancla sItuatIon,"...?,-},Cj f1,,"I\o-). ill.,')}',. fhAA fF/., '\'('."'I/.,IJD 0'

, ' .4) decIde on project proposals and plans recommendedhl..1.1.IJD :J(. O""IOO}',. .,"I'f}-}' 4\rJ ID-I)). f..(ltlJA :: ft by the Regional Fund Office as well as on other

j:j~' ftlAA h"""I1I1~ tlD?'f.- ""0(1'1 ! oj' issues relating to the implementation of the Fund'sb' fhAA hla"'l1l1~ tI"'"I,'f; 0""",1, aJ(; h1.\': ,u.." work programme for the Region.., ,r..laOlal1A I' (fc;'IJD filO'/,'I.'W' h"':'~~,r.. ""O(lI1l}J..)', 13. Meetings of a Regional Steering Committee

f1la111)f1.1D- 'r~ O"'"l');;:W'IJD 'l'" t\.Y,~1' f..""""I\' :: I) The Regional SteeringcCommittee shall meet once~, htl"'"l.'f;1D- hl1":" h"I"'"I'{i 04\,r.. O""O(l111D- 4\,r..1'1. .,')', every three months; provided that extraordinary

IJDAO'" ",'It.. ,r..'... /.,A :: meetings may be held at any time at the call of thej;, ftlO'/.'I.'1D- W'I)). O,..11(1111D- "fJ 0""")" h'l4\'1' ." Chairman.., O.\'.'IJDiJ ,f1A""'1, rJ(ltlJA :: ,r:IJDiJ "h'A t\" it.A ~ 2) There shall be a quorum where more than half of the

.h"'hl..1\ (l11I)O,W' ,('1\0,1' aJ"'} aJ'l"-'i .\':IJDiJ memob~rsof t~e Committe~ are present at a meeting.,r..cP CPA:: 3) DecIsIons of the CommIttee shall be made by a

~ ~ simple majority vote of the members present. In case

fj. "O'/,'I:ID- f l,.la.1 f,..,O (111 P"I--/"'(;"i'l' .".1,{1 t\.!aJtfJ .,. 0., , ." of a tIe, the ChaIrman ~hall have a castIng vote.,r..r"A :: ,.,ry' ; 4) Ttle Committee may"adopt its own rules of

'i!:!, fhAA I.:}.\': 1.'~I...1' fl.:" IVA£I")Cj ""'1'1(; procedure...h!1p,1}',. ftlAA I.:} ,r: 1.' ~1...1' (}.'1' f"'"l,h"'1\'-1- 14. Powers and D~t[es ofa Regional Fund Oflice

FAtfJ1Cj ""'I'lC:")" rJI ;.:J'A : Each Regional,Fund Off~Ge shall hav~ the power andb' fl.:),~ "1"""',4' 9""'" OnAI\' 1D-,..'1' "1~(l1,.'1;\: duty to: ...., "'"I,r:~"I: 1) promote the act,IYltles of the Fund within the Region;

.2) Prepare the annual work Programme and budgetPropo-g, ft,AI\'1 qoo:J'~ o'~"1,Cj fp'/,. '\'r:"II,.IJD h";J~'" .co.' .

',' ~ sals for the RegIon and sumblt same to the SteerIngI\'IAA hla"'I1'l~ IIO'/,I:ID- "'"Icr/; '0 (' f1i1D'l'f;1D- ..r':" ID- " " ,." :.. " , .CommIttee and to the Central Office upon approval

1'1.1..,... I\"'"I~h"~ 1. ~1..1 (}.1 "'"I...l (.t.' .-by the former;

j~' OhooAit:Y::y. fOil. ".(; 0' 10"" '\'('.':~t""r1 OD"IJD 3) appraise sub-project proposals submitted by ap-

',IJDC; hID-I)), '/1)'0 :J(; I\nAI\' h"""I1I1~ tI"'"I.'I.' plicants and forward same to the Regional Steering"'"I""~11 : Committee together with its recommendations

!!, '\'('.':~h"'1' ""'I'l/.,~ fO'/.(r."f1-1-1C; h,..I.."'llD- fhl.. thereon;

1.1.IJD h'H'AC; (;t,t"o fO'/.Y,l"10-1-1 001.,.\': 0-1\, 4) make arrangements for the implementation as well as"'"I";J:~ -1- : for the necessary monitoring and handover of

?;.. I\'\'C::~h"':y. f",ooY,01D-1 '11""1 f1h"ll1{1- f1FI,. projects to beneficiaries;"f.. "'"ICPA : 5) put project funds to proper use; ,;

j' f"I"'"I'{i qoo,.,. f~f..Cj1'" hC; fFI,. hl..1.1.IJD ~;I'c'1' 6) prepare, and submit to"the Steering Committee, semi-h,f",~~~ I\hAI\' h"""'lf}~ tlO'/.'f; "'"I""l'f1C; tI"'"I.'1:1D- annual and annual financial and physical implemen-1'1.!1..r.""ID-IJD I\"'"IiJtl"~1D- 1\'~I..-1- fl."" "'"I""~11 : tation reports, and forward same to the Central Office

'I.' "'"IC;:'~1D-1IJD f~,r..Cj1"'C; fT(":'~h"" I..tlC~' I\"'"IiJh upon approval by the former;., " , '

"~ID- 1\' ~1.,-1- fI.-1- t,r.:-1- "'"I.r.'l"l : 7) give access, to the Central Office, to any financial::r;' fhl.,1.1.IJD ODOO~!ID- f1"'"1.!"1D- ODIP~"" fhCJ;:! and project records;

oo".i..! 'r ,('-I:9"'}"1 h";J~.y.-h£.:! h1~1..1.IJD 8) prepare replenishment requests as per the OperationalI\"'"IiJtl4\lflD- 1.'~I..-1- fl."" "'"I""l'f1 :: Directi~es and submit same to the Central Office for

processIng.j:r., fhAA 1..1.\': 1\'~I..-1- fI.-1- FI,. h~h.!~ 15. TheManagerofaRegionalFundOffice

~, "!'}p,1}',. fhAA 1..1.\': 1.'~I..-1- fI.-1- FI,. h"'h.!~ 1) The Manager of a Regional Fund Office shall bef1tIAI\' h","'f}f}~ tlO'/.'I.' ,r..'(1"""IA :: appointed by the respective Regional Steering Com-

mittee.

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2) TheManager shall,subject to the overall directing ofthe Steering Conlmittee, be responsible for theproper execution of the Fund's regional activities inaccordancewith the Operational Directives.

3) Without limiting the generalityof the foregoing, the.Manager shall:(a) exercise the powers and duties of the Regional

Fund Office provided for in Article 14hereinabove;

(b) employandadministeremployeesof the RegionalFund Office in accordance with federal civilservice laws;

(c) effect expenditurein accordancewith the budgetapproved for th~Regional Fund Office;

(d) represent the Fund in all its dealings with thirdparties at the level of the Regional Fund Office;

(e) delegate his authority to employees of theRegional Fund Office where found necessaryfor the efficient performance of the Fund'sactivities in the Region.

PART FOURMiscellaneousProvisions

16. Uniformity of Practice

With a view to ensuring uniformity of practice, theOperational Directives shall govern all operations andactivitiesof the fund.

17. Budget

1) The budgetof theFund shallbe drawnfrom financialcontributions by the Federal Government, donoragencies and the community at large as well as fromloans by the World Bank.

2) Additional resources may be made available to theFund, in the form of office space, equipment,materials or otherwise by Regions, th.e FederalGovernmentand donor agencies.

3) The budget shall be utilized in conformity with thecredit and grant agreements under which con-tributions have been made.

18. Bank Accounts

1) The contributions referred to in Article 17(1)hereinabove shall be deposited in a bank in thename of the Fund.

2) The Central Office shall have bank accounts for:(a) foreign currency, received from foreign

creditors and contributing donors; and(b) local currency.

3). A Regional Fund Office shall have two separateaccounts of local currency for:(a) sub-project use, and(b) operatingcosts.

19. Audit

The accounts of the Fund shall be audited annually byexternal auditors.

20. ProcurementandDisbursementProcedures

The Fund shall have its own profurement and disbur-sement procedures as provided for in its OperationalDirectives.

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21. Transferof Rights and Obligations

The rights and obligations of the Ethiopian SocialRehabilitationFund are hereby transferred to the Fund.

2~, Duty to Cooperate

\f':ny individual, government organs and private or-~anizations shall have the duty to cooperate with theF~nd in the execution of its activities.

23. Effective Date

This Proclamationshallcomeinto force as of the 13thdayof February, 199~

Done at Addis Ababa, this 13thday of February, 1996.

NEGASO GIDADA (DR.)

PRESIDENT OF THE FEDERAL DEMOCRATICREPUBLIC OF ETHIOPIA

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