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Cash Working Group – Philippines
24 March 2015
Cash Working Group-Philippines
YIAS, Tower 2 RCBC Plaza, Makati City
24 March 2015
AGENDA:
Time
9:30-10:00 am
10:00-10:15 am
10:00-10:30 am
10:30-10:45 am
10:45-11:00 am
11:00-11:15 am
11:15-11:30 am
11:30-11:45 am
11:45 – 12:15 pm
12:15-13:00 pm
13:00-13:30 pm
Activity
Registration
Opening Remarks
Introduction of Participants*
Rationale of the Activity
Innovative Solution for Disaster Recovery
Electronic Pre-paid Solution
Innovations in Humanitarian Interventions:
Last Mile Mobile Solutions (LMMS)
Updates on Cash Transfer and DSWD 4Ps (Pantawid Pamilyang
Pilipino)
Open Discussions
Information Management Products – Typhoon Haiyan
Infographics and FSP Mapping
Agency and FSP Mapping
Minimum information required
Knowledge Sharing Platform (for information)
Humanitarian ID
Lunch Break
Presentation and Finalization of TOR – Steering Committee
13:30-14:00 pm
Presentation and Finalization of Proposed TOR – Cash Working
Group
14:00-14:30 pm
Setting of Priority Preparedness Activities for 2015
14:30 pm
Closing
Person/s Responsible
DAVID CARDEN
Head of Office OCHAPhilippines
AGNES PALACIO
NDRA, OCHA-Philippines
Oxfam
World Vision
DSWD
Plenary
NOEL VICTORINO
OCHA IM
JOSEPH ADDAWE
OCHA IM
EILEEN TUFAY
WFP
DEMOS MILITANTE
Coordinator, FSL
ACF
WADEL CABRERA III
Capacity Building Officer
CALP
AUGUSTO RODRIGUEZ
Chief, Social Policy Section
UNICEF
*Attendance is attached separately.
Business Proper:
This is the first meeting of the Cash Working Group- Philippines for 2015. This is also the 1st meeting, at the national
level, post-Haiyan Emergency response. The meeting was presided over by OCHA. The agenda was followed as proposed.
The first part of the meeting was allocated for innovative solutions used by Oxfam and World Vision in providing CTP 1
assistance.
1.
Innovative Solution for Disaster Recovery –
Electronic Pre-paid Solution Oxfam and Visa: Electronic prepaid card
Attach Oxfam PPT
 Conceptualized in July 2014 and is being piloted in the Haiyan- and Hagupit- affected areas since December
2014.
 Programme goals: (1) to leverage PPP to improve disaster recovery CTP; and (2) to improve speed, security
and transparency of CTP
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Cash Transfer Programming
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Cash Working Group – Philippines
24 March 2015
Deliverables: (1) reduced admin cost, (2) improved security, (3) increased speed of distribution, (4)
improved monitoring and targeting, (5) improved logistics and (6) reduced inflation impact (through speedy
distribution).
Complementary capabilities through multi-stakeholder partnerships including payment program partners
(Government, Oxfam, Visa, issuing and acquiring banks) and cash-out partners (merchants, payment
processors, mobile companies, etc.)
Key accomplishments: (1) card user’s education and awareness, and (2) compliance to bank’s know-yourcustomer (KYC) and anti-money laundering policies
Among the challenges were: Previous challenges: documentary requirements for compliance (often washed
away in storms/floods), speed and transparency
The results of the piloting period, December 2014 to March 2015:
o Transferred USD 76,500+ through the use of 1,142 cards, yielding 100% successful transactions.
o Approximately, 95% of beneficiaries using the cards at point of sale (POS).
o The cards were used for saving, financial inclusion, household investment on disaster emergency fund,
and increasing resiliency on disaster impact.
o Two months after the pilot began; many cards were still “active” with savings left, with average of P500
per user.
Benefits:
o For Oxfam: reduced admin cost, faster, safer, more transparent, etc.
o For beneficiary: faster, safer, more transaction options and increased agency, etc.
o For businesses/BSP: leverage skills, reduced reliance on cash, financial inclusion rather than CSR,
accelerated BSP e-Master plan, etc.
Remaining challenge: commodity prices controlled by partner merchants. There is a need to get more
partner-merchants to mitigate inflation and avoid monopoly.
Questions and Answers:
Q:
How is this going to work immediately after the disaster when the telecom and electronic transfer system is
down?
A:
Through the use of mobile laptop and WIFI, satellite access, mobile ATM (operated by generator or by solar) and
other banking services. During the first few days of response, merchants can still bring basic commodities and without
cash they can already start using these prepaid cards distributed as part of the unconditional CTP. OCHA also shared that
during Typhoon Hagupit, the telecom companies took down the connections as preparedness measure, which made
reconnecting easier after the storm.
Q:
How soon would it be available in the affected areas, including rural areas?
A:
Pilots is run also in rural and highland areas, the system is so far working as long as there is a certain level of
signal for mobile banking/shopping.
Q:
What is the cost?
A:
Set-up cost for the pilot was USD65,000. However, there was 50-60% reduction on Administrative costs
compared to implementing direct cash payout.
Q:
What is the transaction cost? Is there a computation for cost efficiency?
A:
Once the system is there, the pilot is replicable in other regions. Transaction cost is shouldered by Oxfam for the
first 4 transactions for the piloting. This is also estimated to be the number of tranches that the CTP will be released. As
the card is designed as a savings tool, succeeding transaction costs will be shouldered by the beneficiary.
Transaction cost varies: P12/ATM withdrawal; P24 per transaction at the Philpost (post office)
Q:
Is there an additional cost if merchants go to the affected communities?
A:
Some companies do this for free (or bring customers to the store) as part of their Corporate Social Responsibility
(CSR)
Q:
Was there any relaxation of KYC2?
A:
There was reduction in the information required to fast-process the CTP. This can be integrated as part of
preparedness measures, such as pre-arranged agreements between the Government and FSPs on the minimum KYC
requirement during emergencies. Instead of the beneficiaries presenting Government-issued ID, when most of them lost
their legal documents, a barangay certificate sufficed and was accepted by the FSPs.
Q:
Was there a timeframe for monitoring transactions?
A:
Revalidation of the disbursements or a PDM3 was done after 2 weeks.
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Know your Customer
Post Distribution Monitoring
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2.
Innovations in Humanitarian Interventions
World Vision Use of Last Mile Mobile Solutions (LMMS) and partnership with Mastercard
Attach PPT and LMMS video
 A short video was shown about LMMS
 The programme was originally developed for humanitarian beneficiary analysis and monitoring of in-kind
assistance. In the last two years, it has been used for CTPs as well.
 This technology is also being used by World Vision in Haiti and Yemen. In the Philippines, this was used for
Hagupit-affected areas in Eastern Samar. Other partners that are using LMMS are: Oxfam, Save the Children,
World Vision, among others.
 The benefits, using LMMS, identified were: LMMS saves time and money, reduced administrative cost, less time
in beneficiary analysis based on vulnerabilities, easier financial service distribution field monitoring and
reporting.
 Recommendation: This should be connected to DSWD’s Disaster Assistance Family Access Card (DAFAC) system,
which does similar beneficiary analysis but manually.
 The partnership with Mastercard:
o
The partnership is similar to the partnership between Oxfam and Visa, except for the following: 1)
Mastercard does not use FSP, rather it is a tripartite partnership that includes World Vision, Mastercard
and beneficiaries, (2) Mastercard is only providing financial transaction service through “point of sale”
(POS), not direct cash payout, (3) World Vision profiles the beneficiaries, merchants and their pricing of
goods (equated to points), and updating/monitoring card usage (points).No data is shared with
Mastercard, therefore, World Vision still maintains data confidentiality.
o
The pilot period for the partnership with Mastercard in the Philippines is January-September 2015. As this
is still being developed, this is not commercially available. Yet other partners can do bilateral negotiations
only. This same partnership mechanism is being piloted in Yemen.
o
Mastercard embeds its chips in the LMMS cards so it can be used for the POS transactions.
o
At the initial stage, World Vision approached the local government units first to help facilitate engagement
with local businesses. Most of the partner merchants are local businesses.
o
With the Oxfam and Mastercard partnership, reporting on the usage of CTP is automatic. The users do not
have to remember how they used the cash while coping with an emergency. The system captures which
items were purchased using the card.
Questions and Answers:
Q:
What is the cost of setting up such system, LMMS with Mastercard?
A:
Basic equipment includes roaming server laptop (USD800), router, card printer, cards and mobile phones;
installation, staff training, and licensing.
Q:
How do you ensure protection and confidentiality of beneficiary data?
A:
Both Oxfam and WV respect legal requirements, and beneficiaries have options to disclose certain data (e.g.
photos). Implementing agency will be responsible for beneficiary data management and it is not shared with the private
sector partner (Mastercard).
Q:
What happens if the beneficiaries lose or have damaged cards?
A:
Beneficiaries can report to the implementing agency or partner banks and get a replacement. No risk for the
stolen cards being misused as the user is verified before each transaction (via photo, barcode, national ID#, etc.).
Q:
Why did World Vision use a point system rather than peso value for items purchased using the card?
A:
Mastercard did not want the complication involved in handling cash transfers but would rather provide the
platform for point system and immediately make the system work for POS.
3. DSWD Presentation: Emergency Unconditional Cash Transfer (EUCT)
Share PPT from DSWD
 The government’s social protection programme named “Pantawid sa Pamilyang Pilipino Programme”, popularly
known as 4Ps, is the 3rd biggest social safety net programme in the world.
 Approximately, PhP152M released from July to December 2014. There are about 4.5M HHs benefited so far and
it is continuing to expand. Based on NHTS data, there are additional 600,000 households to be included, based
on recent validation.
 The 4Ps has a well-established infrastructure that includes a grievance system, compliance monitoring and
updating system. There are family development sessions (FDS) that are conducted every month to monitor the
progress of the beneficiaries.
 DSWD in partnership with UNICEF and WFP used Emergency UCT during the recovery phase of the Haiyan and
Hagupit responses. UNICEF provided EUCT amounting to P4000m pe month, good for six months.
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Cash Working Group – Philippines
24 March 2015
WFP covered 4Ps and non-4ps families, totaling to around 500,000 beneficiaries.
No actual cash transfer is made to DSWD from either UNICEF or WFP. Instead, DSWD’s role is to validate
beneficiaries based on HH data and affected areas/communities), identify transfer networks and models (ATMs,
banks, over the counter), assess market functions and monitor distribution.
The identified challenges in this CTP were:
o
Targeting was a major challenge during the Haiyan response, as some 4P beneficiaries received layers of
UCT and CCT assistance while other poor HHs did not receive any.
o
For the UNICEF partnership with DSWD, the payout was made through Landbank of the Philippines (LBP).
However, LBP lacks buffer funds to cover additional emergency payout. This resulted in a delay in
distribution of cash to the beneficiaries by three months. It should have been the responsibility of
Landbank (rather than DSWD) to report or liquidate the UCT fund. The partnership has no POS capability.
The LBP payment system includes conduits such as ML Lhuillier, Smart Money, NATCCO- National
Confederation of Cooperatives and PhilPost but there is no existing MOU or policy on this which makes it
more difficult to invoke accountability of conduits towards UNICEF or other partners of DSWD.
Correspondingly, UNICEF and DSWD are looking for additional FSPs to expedite releases.
The DSWD Inclusion Request Facility is a way of including vulnerable affected families in the 4Ps. A list of
vulnerable/poor households needs to be brought to DSWD for validation and eligibility.
On another note, DSWD is now updating the National Household Targeting System (NHTS) which is expected to
be released in October. It will guide humanitarian agencies in beneficiary targeting as the data will vulnerability
families and identify potential beneficiaries during emergencies.
World Bank and DSWD are working on a partnership to provide food assistance and money during emergencies
through the Disaster Risk Reduction and Response Operations Office (DRR-ROO) led by Dir. Briones.
4. Cash Information Management (IM) preparedness tools by OCHA
Provide link for infographics and FSP mapping
CWG information management is being firmed up during this preparedness period (non-emergency). Using existing
resources and information during the Haiyan response, OCHA is supporting the CWG, to map out FSPs and do other IM
products.
 FSP mapping
o
The mapping exercise is part of the preparedness measures to map out location and capacity of cash
transfer programming partners
o
The existing map, which was developed through the SIMM4 Project under the USAID, So far data
concentrated in Luzon (handed over by USAID), still being developed with more data in other regions of the
country
o
Data already available on HDX website. Final version of the map will follow.
o
FSPs are now part of Cash WG and the focal points will continue to provide additional data
 Cash Infographics
o Comments to be sent to OCHA, deadline is 31 March 2015.
 Knowledge sharing platform being developed to collectively manage data, maps, presentations, meeting
minutes, etc. The OCHA IM unit will manage this for the CWG. Partners are encouraged to share their CTP
materials or journals for wider circulation.
 The IM team shared that during Haiyan, response, it was quite tedious to capture CTP assistance because there
was no standard reporting for this that would feed into the different clusters. The reporting of cash was done by
filtering/ searching similar keywords. There is a recognized need to improve reporting of CTP for future
responses. The CWG agreed and recommended that a standard set of terminologies and guide to reporting
should be created to better track cash activities.
5. Terms of Reference (TOR) – CWG and Steering Committee
Attach: TORs
The draft TOR for both the CWG and Steering Committee were presented. Specific comments were:
1.
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TOR of CWG
o Under roles and responsibilities, include provision regarding CWG, when necessary, to do external
engagements and advocacy with government agencies and other partners to advance CTP implementation.
Scaling Innovations in Mobile Money (SIMM)
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o Include decision making procedures for non-emergency phase. The determination of quorum is set at 50 plus
1. Voting is based on 2/3 of the members present during the meeting (either personal or via video
conference).
o For emergency phase, the CWG will determine if there is a need to establish a sub national CWG. Based on
circumstances, the CWG may also decide to conduct cash coordination meetings at the sub national level, in
lieu of an organized CWG. Either way, the coordination efforts should feed into the inter-cluster coordination
mechanism at the hub level where there is active cash coordination.
2. TOR of Steering Committee
o Include a provision on decision making procedure for the Steering committee. Determination of quorum is
set at 50 plus 1. On the other hand, voting is determined by 2/3 of members who are present (either
personally attending or via video conferencing)
o Membership of government agencies should be provided. The agencies will be left to decide how their
membership will be, either full fledge or ex-officio with specific task team membership.
The determination of quorum and voting decision should be based on an actual number or membership, both number
and representatives. It was agreed, therefore, that in-country membership should be developed. Correspondingly, a
form shall be completed by the members that will also signify their intent to allocate time and effort in relation to the
CWG.
The basis for appointing or voting the emergency chair at the sub national level should be based on capacity and
resources, particularly designated focal point as well as longer presence in the area.
OCHA also shared that in areas where there is an OCHA sub office, the Head of the SO can take the lead of the local CWG
during emergencies.
Action points:
o For agencies that have other comments on the TORs, deadline for inputs is March 31, 2015, COB.
o OCHA to come up with a membership form to be circulated among the members. OCHA will follow up with
FSPs to become part of the CWG.
6.
Priority Preparedness Activities
The priority preparedness activities were presented by the Steering committee for the approval of the CWG. These are:
1. Finalization of TORs – CWG and Steering Committee
2. Develop common template for MOU
3. Firming up Information Management for CTP
4. Development of common market assessment tool
The proposed activities were approved. An additional activity was recommended by the body. This is on harmonizing
beneficiary targeting. Based on the Haiyan response, the DSWD 4Ps infrastructure was used to provide cash assistance.
However, there is recognition that there are families, not necessarily 4Ps beneficiaries, that were also affected and who
have become vulnerable. There are other government data that can guide the CTP implementers to target vulnerable/
poor families. For one, the 4Ps family profiles are just a sub set of the NHTS 5. OCHA and DSWD have signed a MOA for
the use of the NHTS data.
Other Discussions:
 IOM shared information sheets on Recovery Shelter Kit Programme and Transitional Shelter – Cash for Work. Please
see attachments.
 On the side of the FSPs attendees, they are interested to join the CWG subject to approval of their supervisor. LBC
Express mentioned that it gives its full support to the CWG. Philpost is likewise interested.
 PSBP is expanding to humanitarian response, pending management endorsement. Once this is finalized, PBSP will
signify its membership to the CWG.
 ICRC will attend the CWG as observer. ICRC, for the last two years, has been implementing CTP globally. Currently, it
has its offices in Guiuan and Zamboanga City that do CTP.
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National Household Targeting System
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 Point for consideration for the CWG is how to encourage/ strengthen the partnership between the NGOs and
government on CTP and humanitarian response. The UN and Philippine Government have existing bilateral
agreement. However, there are limited arrangements between NGOs and government agencies.
The next CWG meeting will be within the 1st week of June – to be announced.
Prepared by:
UN OCHA, Chair and Secretariat
24 March 2015