Quarterly Administrative and Financial Update January – March 2015 Coastal City Adaptation Project (CCAP)

The project began in 2013 and is in its second year of implementation. The CCAP team, led by Chemonics International Inc., is working to address major implementation issues that have arisen during the second quarter of 2015. Operational challenges have hindered the project's progress, with Chemonics facing difficulties in obtaining work authorizations for expatriate staff. Despite efforts to resolve the issue, the Tax Authority's Declaration of Good Standing was only received on February 24, and the Social Security Institute provided a correct extract on March 27. To mitigate this issue, CCAP is pursuing a parallel strategy of establishing a new foreign branch office registration to host Chemonics/CCAP activities. Technical implementation issues have also been encountered, with three major challenges requiring flexibility and creativity to manage. Firstly, the team had to redirect significant staff time to build community support and align partnerships with the municipality, other government agencies, academic institutions, and local associations to take advantage of the mangrove seeding season in Quelimane. Secondly, finalizing the scopes of work for four critical contracts and grants has taken longer than anticipated, including a climate smart household infrastructure project with UN Habitat and a municipal adaptation planning initiative with Africa Climate Change Resilience Alliance (ACCRA). Lastly, the team has experienced staff turnover, with two staff members resigning, including the Quelimane Municipal Advisor and the Communications Specialist. Administrative updates have also been significant, with the formal joining of CCAP's Senior Technical Advisor, Sharmila Moiane, on January 5, 2015. Additionally, CCAP separated with Communications Specialist Lécio Munguambe effective March 31, and the Municipal Advisor for Quelimane, Manuel Lencastre, indicated his intention to separate from CCAP on or around April 15. The team has published vacancy announcements and will recruit to fill these positions in the next reporting period. Financial information for the second quarter of 2015 shows that actual expenditures have totaled $3,336,414, with a grand total of $4,277,351. Salaries and fringe benefits account for the largest share of expenditures, totaling $827,079 and $352,573, respectively. Other direct costs, including equipment, vehicles, and freight, have also been significant, totaling $510,487. The team has executed a commercial lease to establish a satellite office in Pemba and finalized and executed a procurement for 15 emergency management kits, which were accepted in Pemba and Quelimane in mid-March.