4.4 Medicine production phase The transformation of raw poppy materials into finished medicines would be another key phase in a Poppy for Medicine project. Careful documentation and supervision from trained project participants, in conjunction with central and district government administrators, would track the entire harvest to prevent diversion and to ensure that the medicines would not be further transformed into illegal drugs. The process necessary to transform raw poppy materials into finished medicines would begin during the harvest period, during which trained project participants within the individual project villages would dry the daily harvest of raw poppy Afghan village-based Poppy for Medicine projects June 2007 37 Penalties for sale and delivery phase offences With all locally-produced medicines to be sold to the Afghan government, a failure for sales documentation to match production documentation will be prosecuted as diversion by the Afghan government. Upon delivery, the failure of delivery documents to match sales documents will be prosecuted as diversion by the Afghan government. Attempted or actual interruption of the delivery process will be prosecuted as diversion and theft under Afghan counter-narcotics and criminal laws. materials.30 These dried materials would then be tested within the village for morphine content, the result of which would determine payment to farmers. With the support of external security actors, project villages would then securely transport their dried, tested raw materials to the district processing facility for transformation into medicines. The morphine content of these raw materials would then be tested again, and the results documented by government administrators.31 Under the supervision of pharmaceutical experts, the raw materials would then be processed into morphine medicines, and the entire production process would be subject to stringent quality control tests, administered with the support of experts supplied by international development agencies. The complete physical security of the district processing facility would be ensured through security support from the Afghan National Police. 4.5 Sale and export of medicines phase Coordinated by the representatives from individual project villages managing the district processing facility, the finished medicines would then be sold directly from the district processing facility to the district branch of the Committee for Drug Regulation, on behalf of the Afghan government. Building on its records of a village’s medicine production output, these Afghan government administrators would verify the full purchase of all medicines manufactured in a village during one project cycle. With support from the Afghan National Police, district’s participating security guards would then securely transport the purchased medicines to Kabul by road or by air for local use in Afghan hospitals and as an international export commodity. 30 Raw poppy materials can be dried to the consistency required for medicine manufacture within 4-5 days. During the day, the raw materials are exposed to direct sunlight in special trays, and stirred continuously. The trays are then stored securely at night. 31 Indicating the quantity of finished morphine medicines that a project village’s raw materials would yield, this test result would form the basis of a transformation contract between the individual project village’s formal business entity and the district processing facility. Afghan village-based Poppy for Medicine projects June 2007 38 Offences identified during evaluation phase Any offences by members of the Afghan National Police committed while controlling a Poppy for Medicine project and identified in evaluation would be prosecuted under Afghan counter-narcotics and criminal law. 4.6 Receipt of medicine revenues, and economic diversification phases Representatives from the individual project villages in charge of managing the district processing facility would take receipt of payments for the district-produced medicines from the Afghan government. Dispersal of these payments to each project village would be made according to the quantity and quality of medicines produced from an individual village-based Poppy for Medicine project’s raw materials.32 Individual project shuras would then oversee the dispersal of this payment to individual project participants, according to the payment parameters set out during the project planning phase (see Part A1, section 3.1), and would channel a proportion of these revenues into a special village fund for economic diversification. In this way, the shura would begin to discharge its co-guarantor duty to ensure that Poppy for Medicine projects result in economic diversification. With the support of external development experts from international development agencies, and documented by Afghan government administrators, the shura would identify, select, and arrange the funding and implementation of village-level economic diversification projects. Also with the support of external development experts, the shura would advance microloans to project participants to fund individual economic diversification activities. 4.7 Evaluation phase At the end of each Poppy for Medicine project production cycle, the entire project would be evaluated. As well as evaluating individual project participants’ involvement in the project, the shura would evaluate the quantitative evolution of sales, losses and profit as well as the profitability ratios, with the support of international development experts. These would be used to assess the economic impact of the project. The Afghan National Police would be required to provide an evaluation of its involvement in the project, and to generate securityrelated recommendations. The Afghan government would assess the capacity of the Integrated 32 Throughout the medicine production process, individual Poppy for Medicine project villages would retain legal ownership of the raw materials produced by that project village, and the medicines they yield. Afghan village-based Poppy for Medicine projects June 2007 39 Control System to secure the project throughout each phase, and would generate overall recommendations to enhance the capacity of Poppy for Medicine projects to rein in illegal poppy cultivation.