Household Debt Within The Syrian Displaced Population In Lebanon

IN GENERAL The Lebanon Cash Consortium (LCC) is a body of 6 INGOs working together to provide multi-sector cash assistance to acutely vulnerable Syrian refugees in Lebanon. The members are Save the Children (lead agency), IRC (M&E and research lead), CARE, ACTED, Solidarités International and World Vision International. Working to harmonize national approaches to multi-sector (unconditional) cash transfer programming, the LCC and its members also engage in multilateral forums in Lebanon and provide technical leadership on targeting approaches, delivery mechanisms for cash transfers and the monitoring and evaluation of cash programming.   Within the country Since the beginning of the Syrian conflict, refugees have been crossing the border into Lebanon. As of January 2015, there are 1,148,844 Syrian Refugees. As there are no formally established refugee camps in the country, they disperse into cities and towns where sub-standard buildings (e.g. unfinished apartments, garages or agricultural buildings) can be rented. Others build temporary shelters in Informal Settlements (IS), which are cold, leaky and prone to flooding or fire. In most cases, they lack access to electricity and safe water and sanitation. In Lebanon’s highly privatized health sector, many refugees cannot afford to access health services. Lebanon’s economy is already weakened by the influx of so many people, and refugees find it difficult to get work, even on a casual or temporary basis. Syrian refugees are now in an extremely precarious situation. Many have exhausted their savings, sold their assets and have become destitute. Although they receive food and other assistance from UN and other agencies, for these families the amount is never enough to cover their average monthly expenses (calculated as the Survival Minimum Expenditure Basket, SMEB). WFP also reduced its food assistance (from $ 30 per person per month, to $ 19 per person per month) adding additional strain on families. Therefore, refugees are increasingly in debt, relying on credit to pay for basic essentials, or are unable to meet rental payments. This situation leads to refugees to adopt negative coping mechanisms such as removing children from school, reducing quality, diversity and quantity of foods consumed, residing in crowded and unclean settlements, begging, child‐labour, early‐marriage, engagement with armed groups and other high‐risk income‐generating activities. In response to those needs, the humanitarian community launched several programs. Among the community, six agencies implement the following projects: ACTED works in WASH, Shelter, Cash/ NFIs and Community Support in the South, Beirut/ Mount Lebanon and Akkar. CARE works in WASH, Winterisation, Cash and Newcomer support in Mount Lebanon and Tripoli. IRC works in Cash, Livelihoods, Women’s Protection and Empowerment, Child Protection and Education in Akkar, Tripoli T5, Bekaa and Mount Lebanon. IRC also works closely with a local partner, AND. SCI works in Shelter, WASH, FSL, Education, Winterisation, Cash and Child Protection in Tripoli T5, Akkar, Bekaa and Beirut/ Mount Lebanon. Solidarités International has programmes in Shelter, WASH, ComMob and Basic Assistance in Tripoli T5 and Akkar. WVI has programmes in Cash, NFIs and Winterisation in Bekaa and South Lebanon. In mid-2014, those six agencies agreed to form the Lebanese Cash Consortium (LCC). In the LCC these INGOs share relevant global and local experience, as well as having current operational capacity for cash programming in Lebanon, having a significant role in the design of the cash response in Lebanon. These agencies are also active in the global Cash Learning Partnership. The objective was to move beyond coordination and to jointly deliver harmonised programming with national coverage, while also harnessing the respective technical strengths of each organisation. The Consortium’s intervention aims at improving the living conditions of Syrian refugees in Lebanon through cash transfers to make up the shortfall in their monthly budgets. Up to now, the LCC has been able to assist 3,800 vulnerable households, through the funds received by DFID and ECHO. Each beneficiaries is provided with a monthly grant of $ 174. 1  Context of the Consultancy The Vulnerability Assessment of the Syrian Refugees (VASyR) conducted in 2014 in Lebanon has highlighted that the percentage of households who had debts increased significantly between 2013 and 2014. Eighty-two percent of households now reported to have borrowed money or received credit in the preceding three months. These findings have been confirmed by Solidarites International in November, when the second Living Conditions Assessment was conducted. On average, the households had a debt of $US805. The main sources of loans or credits were relatives or friends (69%), shop owner (33%) or landlord (22%). While debt is increasing, on the other hand, the sources of incomes are decreasing, as is the assistance (ex: WFP food voucher declining from 30 USD to 19 USD per person per month). Therefore, the shortfall is also growing with no expected solution. This it may result in households adopting extreme negative coping mechanisms, and potentially in security issues for Syrian refugees… In 2015, the Lebanon Cash Consortium wants to increase its understanding of the Syrian refugees’ living conditions in order to tailor its response strategy to their needs. The proposed Consultancy mission should support the LCC in its analysis of the situation. The work should generate learning and influence the strategic direction of livelihoods programming by providing strong analysis and understanding of the debt mechanisms adopted by the Syrian Refugees. 2  General objective Assist the Lebanon Cash Consortium in understanding of household debt within the Syrian Displaced population. 3  Specific objectives The specific objectives of this consultancy mission are: Identify the main actors involved in the debt cycle and its components. Determine the debt profile (grace period, loan terms, interest rates, size, guarantees, consequences in case of incapacity to repay, etc.) for the various lenders. Understand the various profiles of the indebted households, including what the borrowed money was used for. Evaluate potential programs to be developed support the most indebted households efficiently. Investigate where getting into debt lies in comparison to other coping mechanisms, such as, selling assets, restricting food expenditure, restricting education expenditure, accepting dangerous work, etc. 4 Methodology The detailed methodology will be included in the technical proposition by the consultant and approved by Solidarités and IRC. At a minimum, the evaluation should draw on: Existing data available (see list of Annexes). Review of existing quantitative data collected by the LCC on basic household debt.  Collection of quantitative data through mixed method individual interviews with lenders and borrowers/indebted households. Collection of qualitative data through Focus Group Discussions with lenders, borrowers/indebted households and Case studies. 5 Deliverables Inception report including methodology and draft tools. Debrief with program and management staff. Workshop to  present findings. Draft report. Final report (including data set for quantitative and qualitative data). 6 Duration and dates The consultancy should be completed during June and July 2015. Up to 20 days of field work in T5 and Akkar is anticipated, and an additional 5 days of report preparation and writing. The final version of the deliverables should not be handed out later than July. The consultant commits to integrate in its planning some space for briefing at arrival on the mission as well as one day to debrief the mission with Solidarités and with the LCC coordination team. 7  Budget The proposition should include all consultant’s fee and all expenses. It is anticipated this scope of work will take up to 25 working days to complete. 8  Profile of the consultant Training and qualifications: advanced degree Economics, Social Sciences, planning, monitoring and evaluation General professional experience: Minimum of 5 years of relevant job experience with Advanced University/Master's Degree; Significant professional or practical knowledge of Micro Economics policies, Households’ Economics. Specific professional experience: Experience in conducting consultancy mission in the field of Economics. Knowledge of Micro Economics, Households’ Economics, Debt Analysis. Knowledge of Lebanese context an advantage. Required qualities: Excellent written and oral communication skills to convey complex situations in a clear, concise manner. Demonstrated analytical skills. Languages: Excellent English writing, editing and verbal skills. Arabic is a heavily preferred. 9 Application Interested candidates should submit: A technical offer including: An understanding of the issues at hand in the study and the Terms of Reference (ToR): development of problems and formulation of questions which the offer will aim to answer (approximately 2 pages); Methodology and proposed tools; The timetable showing the details for the completion of each of the evaluation phases. The proposed schedule should include time for briefing and debriefing on the mission. • Full CV including references. 1 or 2 examples of final evaluation/research reports from previous evaluations of cash transfer or voucher programs, or other relevant programs in which the candidate was the lead consultant. A covering letter explaining how you meet the qualifications and skills required; indicating your daily rate (in USD); and confirming your availability in June and July 2015 The LCC will consider individual candidates or teams equally. 10   Procedures and logistics Security: briefing will be provided by SOL on arrival in Beirut and in Tripoli, and by IRC in Akkar. The consultant immediately agrees to respect all specific security instructions of Solidarités and based on Solidarités’ security analysis and knowledge of the area and those involved there. In case of an incident encountered during the consultancy, the consultant agrees to contact SOLIDARITES INTERNATIONAL as quickly as possible. Accommodation: to be determined.  In Akkar, accommodation provided by IRC. Transportation: Solidarités vehicles will be used for travels during working hours at all time in Tripoli, and between Tripoli and Beirut.  IRC vehicles will be used in Akkar.   No data can be used by the consultant concerning this study without the written permission of SOLIDARITES INTERNATIONAL for a duration of 5 years. The consultant acting as service provider will make sure to present himself as such for all discussions held within the framework of the consultancy. 11   Annexes List of Assessments conducted by INGOs and UN Agencies (non exhaustive list): -          Lebanon Emergency Market Mapping and Analysis (EMMA) - April 2013 released by IRC / Save the Children / DRC / Oxfam; -          Vulnerability Assessment of Syrian Refugees in Lebanon – 2013 & 2014 reports released by the WFP / Unicef / UNHCR; -          Economic and Social Impact Assessment of the Syrian Conflict - September 2013 released by the World Bank; -          Livelihoods Assessment Report - August 2013 released by Handicap International; -          Survey on the livelihoods of Syrian Refugees in Lebanon - November 2013 released by Oxfam; -          Living Conditions Assessment - January 2014 conducted by Solidarités International -          Draft Vulnerability Assessment of the Syrian Refugees – 2014, released by WFP