52276 Five Years after the Tsunami: Continuing the Commitment to Reconstruction MDF Progress Report December 2009 MDF Office Jakarta Indonesia Stock Exchange Building Tower I/9th Floor Jl. Jend. Sudirman Kav. 52-53 Jakarta 12910 Indonesia Tel: (+6221)5229-3000 Fax: (+6221)5229-3111 www.multidonorfund.org Printed in 2009 This publication is the product of the Multi Donor Fund for Aceh and Nias 1st Winner photo by Rajyasri Gayatri Acknowledgements This report was prepared by the Secretariat of the Multi Donor Fund with contributions from the Partner Agencies (UNDP, WFP, ILO and the World Bank) as well as the project teams. The Multi Donor Fund Secretariat is led by the MDF Manager Shamima Khan, with team members: Sarosh Khan, Safriza 2nd Winner photo by Muhammad Haikal Sofyan, Anita Kendrick, Shaun Parker, Lina Lo, Lanny Oktavia, Akil Abduljalil, Nia Sarinastiti and Geumala Yatim. The team is supported by Rachmawati Swandari, Inge Susilo, Friesca Erwan and Olga Lambey. Contributing Writer: Christiani Tumelap Editorial Support: Kate Redmond Design & Layout: BYBWN 3rd Winner photo by Chaideer Mahyuddin Printer: PT. Mardi Mulyo (above) Winners of the 2009 Multi Donor Fund Photo Competition (this spread/cover) A new jetty at Gunung Sitoli was constructed under the Infrastructure Reconstruction Financing Facility Project. Photo: MDF Secretariat Five Years after the Tsunami: Continuing the Commitment to Reconstruction MDF Progress Report December 2009 MDF Progress Report December 2009 | Messages Message from the co-chairs of the MDF "Notable results have been achieved This proud home owner and her children pose outside their new home funded through the REKOMPAK program. In Aceh and Nias, a total of in rebuilding physical assets at the 10,514 houses have been constructed and 6,999 rehabilitated, with community level." a further 1,599 new houses under construction as of September 30, 2009. Photo: REKOMPAK Project Team 2 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Messages December 26, 2009 marks the fifth anniversary of the and Nias remains relevant as the MDF moves well into the earthquake and tsunami that caused unprecedented and second half of its mandate, which ends in December 2012. widespread devastation in Aceh and Nias. A subsequent The last of the remaining funds are now being allocated to earthquake in March 2005 caused severe damage in Nias and projects within the MDF portfolio. parts of Aceh. The Multi Donor Fund for Aceh and Nias (MDF) was formed in response to the efforts of the Government of The closure of BRR in April this year was a significant milestone Indonesia to mobilize and coordinate donor support for the in the overall reconstruction of Aceh and Nias. Following this reconstruction and rehabilitation of the affected areas. The momentous occasion, and with the appointment of the new results achieved by the Government of Indonesia over the cabinet after the presidential elections, new government past five years since the disasters are remarkable and the representatives were welcomed as Co-Chairs to the Steering MDF is proud to be part of that success. Committee of the MDF. The Steering Committee also welcomed new donor representatives. The MDF continues to play an important role in the reconstruction process. The Co-Chairs are pleased to note Going forward, we would like to reiterate our continued that the portfolio is progressing well and that impact of commitment to Indonesia by "building back better" for the the work done to date is now evident throughout Aceh and future of the people of Aceh and Nias and establishing MDF Nias. The MDF remains committed to working closely with supported reconstruction as a platform for continued growth the Government of Indonesia in ensuring that the MDF's and development. contribution to the reconstruction and rehabilitation of Aceh Armida S. Alisjahbana Irwandi Yusuf Joachim von Amsberg Julian Wilson State Minister Governor of Aceh Country Director Head of Delegation National Development Planning World Bank European Commission 3 MDF Progress Report December 2009 | Contents Contents "The Capacity Building for Local Resource-based The people of Mesjid Dijiem in the Indra Jaya sub-district of Pidie, Aceh, worked hard to improve the road connecting their village to Rural Roads Project has required contractors to the provincial road. The women pictured here are involved in clearing buy materials locally and to hire local villagers, shrubs and dirt from the roadsides, laying crushed stones, and including women." spreading sand. Photo: Christiani Tumelap 4 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Contents Message from the co-chairs of the MDF ..................................................................................................................... 2 Contents ................................................................................................................................................................ 4 Executive Summary................................................................................................................................................. 6 MDF Operations in the Changing Reconstruction Context .................................................................................................7 Status of the Portfolio ..................................................................................................................................................... 9 Looking Ahead ...............................................................................................................................................................10 Chapter 1 | MDF Operations Five Years after the Tsunami:Seeing Results and Facing Challenges ....................................12 MDF Operations in the Changing Reconstruction Context ............................................................................................... 13 Providing Effective Coordination, Communications and Outreach ..................................................................................15 Chapter 2 | Portfolio Progress and Performance.........................................................................................................18 Recovery of Communities ...............................................................................................................................................21 Recovery of Larger Infrastructure and Transport .............................................................................................................23 Strengthening Governance and Capacity Building .......................................................................................................... 27 Sustaining the Environment ...........................................................................................................................................28 Enhancing the Recovery Process ....................................................................................................................................30 Economic Development and Livelihoods ........................................................................................................................ 31 Chapter 3 | Finances................................................................................................................................................ 34 Pledges ..........................................................................................................................................................................35 Cash Available ................................................................................................................................................................35 Funding Allocation and Commitments ............................................................................................................................35 Disbursement ................................................................................................................................................................35 Outlook .........................................................................................................................................................................36 Chapter 4 | Looking Ahead: The Changing Operational Context ..................................................................................38 The Changing Portfolio ...................................................................................................................................................39 Supporting the Overall Reconstruction Process ..............................................................................................................39 Beyond Building Back Better ..........................................................................................................................................42 Quality at All Levels of the Portfolio................................................................................................................................43 Annexes | Project Portfolio ......................................................................................................................................44 List of Acronyms and Abbreviations ........................................................................................................................ 68 5 MDF Progress Report December 2009 | Executive Summary Executive Summary "Projects focused on community recovery were This village office in Amandraya, Nias Selatan, is being built by the Nias Kecamatan-based Reconstruction and Recovery Planning (KRRP) the first to get underway in the MDF program." Project, which provides housing and assists communities to reconstruct vital community infrastructure. Photo: KRRP Project Team 6 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Executive Summary December 26, 2009 marks five years since the earthquake MDF Operations in the Changing and tsunami that caused unprecedented devastation Reconstruction Context and loss of life across Aceh and Nias. The Multi Donor Fund for Aceh and Nias (MDF) was formed in response to BRR's achievements were celebrated as their mandate the Government of Indonesia's (GOI) efforts to coordinate came to an end in April 2009. The achievements of the and mobilize donor support for the reconstruction and reconstruction were also showcased at the final Coordination rehabilitation of the affected areas. The MDF pools Forum for Aceh and Nias (CFAN4) which was held in February approximately US $ 685 million in grant resources provided 2009. The MDF paid tribute to BRR at the final MDF Steering by 15 donors to support implementation of the government's Committee meeting with BRR as co-chair, which was held in rehabilitation and reconstruction program. April. The overall goal of the MDF is to contribute efficiently With BAPPENAS at the helm, the MDF has provided and effectively to the reconstruction of a "better" Aceh support to new partners, including the governments and Nias following the earthquakes and tsunami. MDF of Aceh and Nias, during the transition following the projects not only reconstruct infrastructure and rehabilitate closure of BRR. As the reconstruction and rehabilitation the economy in accordance with GOI's Master Plan, but phase has come to an end with BRR's exit, approval, funding also address concerns such as reducing poverty, improving and implementation procedures have reverted to regular livelihoods, increasing gender equity and the sustainable government processes, with BAPPENAS now playing a management of the environment. key role. The Coordinating Body for the Sustainability of Reconstruction in Aceh and Nias (BKRAN at National level; Five years after the tsunami and earthquake, the overall BKRA at Aceh Provincial level and BKRN covering Nias at recovery and reconstruction of Aceh and Nias can claim the North Sumatra Provincial level) was set up to support remarkable achievements. The MDF contributed 10% continuing implementation of the reconstruction efforts of the overall reconstruction funds, and its contributions until December 31, 2009. With BAPPENAS in the lead, the have supported the Government of Indonesia's efforts and MDF works closely with these and other new government provided a forum for dialogue with central, provincial and partners at all levels to facilitate the timely and smooth local governments, and other major stakeholders on the implementation of the portfolio. broader sectoral strategy on reconstruction. The Agency for the Rehabilitation and Reconstruction of NAD-Nias Coordinating with key stakeholders in the reconstruction (BRR), the GOI's agency set up to coordinate the recovery and rehabilitation process ensures that the MDF offers and reconstruction in Aceh and Nias, closed as scheduled in a relevant response to the needs of the people of Aceh April 2009 as its mandate came to an end. BAPPENAS, the and Nias. Through a consultative process involving various national planning agency, has been tasked to coordinate the stakeholders, the MDF is supporting government priorities remaining reconstruction efforts with provincial government and filling gaps in the overall reconstruction. The MDF is also and all relevant line ministries. The MDF continues to add playing an important coordination role in bringing together value after the closure of BRR by working closely with key players from various levels of government, donors, and BAPPENAS and the Governments of Aceh and North civil society in this process. The MDF continues to use a multi- Sumatra to identify and respond to remaining needs in the faceted outreach approach aimed at increasing the public reconstruction process. This evolving role for the MDF will and beneficiaries' awareness and understanding of MDF- continue until it closes in December 2012. funded activities. Donors are kept abreast of developments 7 MDF Progress Report December 2009 | Executive Summary at project and portfolio levels through various Donor Update meetings, Technical Review Group meetings and Steering The MDF is fulfilling its mandate Committee meetings. and remains committed to the The MDF is fulfilling its mandate and remains committed reconstruction process. to the reconstruction process. The MDF continues to work closely with the Government of Indonesia to support the transition processes as a result of the closure of BRR and the handing over of completed assets to various government entities. BAPPENAS now has taken over the leading role in identifying and endorsing new projects and additional funding of existing projects. The MDF continues to forge strong ties with the new partners at all levels of government to continue the reconstruction and rehabilitation effort and promote sustainability of the investments made. The last of the remaining funds are now being allocated to projects within the MDF portfolio. Only 7% of the funds remain unallocated, or approximately US $ 47 million. New allocations with a focus on economic development, some remaining strategic infrastructure needs and strengthening local capacities, all aimed at promoting sustainability and continued development of the affected areas, are starting up or are expected to be endorsed soon. It is now a critical priority for the remaining funds to be allocated quickly to allow adequate time for projects to be completed before the MDF's December 2012 closing date. The MDF remains committed to channeling funds for projects through the government budget, where possible. The MDF's recently-completed Mid Term Review (MTR) found that the MDF is highly relevant and performing well. The MTR was commissioned to assess the performance of the MDF at the project, portfolio and operational levels. The review concluded that the MDF is on track in achieving results, has been a successful mechanism for post-disaster funding and coordination, and is relevant and responsive to Government priorities. No major changes were recommended, only minor ways of improving operations, including a recommendation that the Secretariat should Approximately 290 kilometers of district and provincial roads have been provided through large infrastructure investments. Photo: MDF Secretariat 8 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Executive Summary support opportunities to contribute lessons learned to future land titling program, RALAS, which had experienced post-disaster trust funds. The MDF has already begun to implementation problems during its lifetime, closed on June follow up on many of the MTR recommendations, and will 30, 2009. Since September 30, 2009, an additional project develop an action plan for following up on the remaining was allocated funding, the ILO's Rural Access and Capacity recommendations through a consultative process. Building Project in Nias. One more project, also focused on Nias, is under preparation. Some projects with closing dates scheduled in 2010 are expected to request additional Status of the Portfolio financing or extensions to closing dates in the coming months. These extensions and additional funds would be As of September 30, 2009, the MDF has a total of US $ used for completing or scaling up activities, with a focus on 685 million in pledges, of which US $ 511 million has been improving the project's exit strategy and sustainability. received from the donors. The MDF has allocated US $601 million to 21 projects as of September 30, 2009. Approximately Community recovery projects have proved particularly 73% of funds allocated to projects are on-budget and successful in their approach as well as meeting their therefore channeled through the Government of Indonesia's objectives. Notable results have been achieved in rebuilding national budget. The remaining funds are implemented by physical assets at the community level. Housing targets have the United Nations Development Programme (UNDP), the been reached in Aceh and good progress is being made in World Food Programme (WFP), the International Labour Nias, with a total of 19,112 houses completed, rehabilitated, Organization (ILO), and non-governmental organizations. or under construction as of September 30, 2009. Community Approximately 66% of allocated funds have been disbursed Recovery projects have assisted communities to reconstruct (US $ 399 million) to projects. Disbursements during the past vital community infrastructure, including 1,473 kilometers of year were higher than in previous years as the majority of village roads, 936 bridges, and 1,473 kilometers of irrigation projects have moved into full implementation. and drainage channels. Utilization rates for infrastructure and occupancy rates for housing are high, and surveys The MDF has a total of US $ 47 million1 remaining in indicate that beneficiaries are highly satisfied with what unallocated funds. Taking into account the time required these projects have delivered. In addition, community for project preparation and implementation, it is imperative empowerment is an important outcome of the MDF's that these remaining funds be allocated quickly. It is expected community recovery projects that will have lasting impact. that the remaining funds will be used for additional financing for existing projects in order to reduce the time needed for Other areas of the portfolio have also shown significant project preparation. progress in achieving targets during the past year as the majority of the projects are now in the full implementation The MDF has 22 projects with one in the preparation stage. The large infrastructure investments currently being stage. Many of the MDF projects that were initiated at the implemented are drawing to a close, with 41 of 53 sub- start of the program are drawing to a close. As of September projects now completed. These investments have provided 30, 2009, three projects have closed, and another 14 projects the people of Aceh with about 290 kilometers of provincial are currently scheduled to close in the next year. The MDF's and district roads, 9 municipal water systems, and have rehabilitated three vital ports. Results in the environment sector are positive, and work in the economic development 1 This estimate may vary due to fluctuations in exchange rates and interest rates. sector, which represents a later phase of MDF funding, is now 9 MDF Progress Report December 2009 | Executive Summary moving towards implementation. The overall reconstruction Community Recovery projects have process is receiving continued support from the MDF through technical assistance, governance and capacity proved particularly successful in their building programs. approach as well as meeting their New institutional arrangements for the MDF as a result of targets. BRR's closure have resulted in delays in progress across the portfolio. Return to regular government mechanisms for channeling funds has resulted in some cases in stalled implementation, pending budget approval. There is concern that if these delays continue projects may not be able to complete implementation. This is one of the biggest challenges currently facing the MDF. Looking Ahead Five years after the tsunami and earthquake, the overall recovery and reconstruction of Aceh and Nias can claim remarkable achievements. The MDF reflects good practice as a post-crisis funding mechanism, harmonizing donor efforts and increasing the effectiveness and efficiency of the reconstruction effort. Benefits from completed MDF investments are now being felt by beneficiaries. With the reconstruction effort drawing to a close, the need for improving economic opportunities for the people of Aceh and Nias has become an urgent concern of local governments. New MDF projects such as the Aceh Economic Development Financing Facility and the Nias Livelihoods and Economic Development Project (still in preparation stage), both expected to start activities in 2010, are intended to boost the sustainable economic development of Aceh and Nias. Facilitating smooth implementation of projects will continue to be a major concern to the MDF. The BKRAN, BKRA and BKRN, the temporary agencies set up to assist with the transition from BRR, will be ending their mandate at the end of December 2009. BAPPENAS now plays a 10 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Executive Summary A mother and her children smile in front of their new house provided through the Kecamatan-based Rehabilitation and Reconstruction Planning Project in Nias. Photo: MDF Secretariat key role in coordination with the relevant line ministries, Ministry of Finance and provincial government in overseeing reconstruction implementation and programming of the remaining MDF funds. The MDF will support BAPPENAS in this role as implementation of MDF projects transitions to regular government mechanisms. BAPPENAS coordinates with the Ministry of Finance to ensure the timely release of the budget notes (DIPAs) so that funds can be disbursed and projects will be able to implement activities on schedule. However, disbursement of funds through the government budget is expected to remain an on-going challenge for the MDF and its stakeholders. As the MDF portfolio matures and projects reach completion, valuable lessons learned are emerging. The MDF is uniquely placed to identify strategic lessons from the post-tsunami and earthquake experience in Aceh and Nias. These can contribute to more efficient and effective recovery and reconstruction in future post-disaster responses in Indonesia and around the world. The Nias Kecamatan-based Rehabiliation and Reconstruction Planning Project (KRRP) reconstructs schools in communities across the island of Nias that were damaged in the March 2005 earthquake. Photo: MDF Secretariat 11 MDF Progress Report December 2009 | Chapter I: Seeing Results and Facing Challenges Chapter 1 | MDF Operations Five Years after the Tsunami: Seeing Results and Facing Challenges "Participating in high profile events further draws More than 1,500 people visited the MDF display at CFAN4. About 1,000 of those took part in the "How much do you know about the MDF?" attention to the work that the MDF is doing." quiz. Photo: MDF Secretariat 12 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Chapter I: Seeing Results and Facing Challenges The Multi Donor Fund for Aceh and Nias pools about Five years after the tsunami and earthquake, the overall US $ 685 million in grant resources provided by 15 recovery and reconstruction of Aceh and Nias can claim donors to support implementation of the government's remarkable achievements. In line with the Paris Declaration rehabilitation and reconstruction program after the on Aid Effectiveness2 and the OECD-DAC Principles for Good December 2004 earthquake and tsunami and subsequent International Engagement in Fragile States and Situations3, March 2005 earthquake. At the request of the Government the MDF is evidence of good practice as a post-crisis funding of Indonesia (GOI), the World Bank serves as the trustee to mechanism, harmonizing donor efforts and increasing the administer the MDF which is in turn governed by a Steering effectiveness and efficiency of the reconstruction effort. Committee comprised of donors, GOI, and civil society representatives, with the United Nations and international nongovernmental organizations participating as observers. MDF Operations in the Changing The 15 donors contributing to the MDF are: the European Reconstruction Context Commission, the Netherlands, the United Kingdom, Canada, the World Bank, Sweden, Norway, Denmark, Germany, The Multi Donor Fund for Aceh and Nias aims to efficiently Belgium, Finland, the Asian Development Bank, the United and effectively support the Government of Indonesia's States of America, New Zealand and Ireland. Master Plan for the reconstruction efforts. The Agency for the Reconstruction and Rehabilitation of NAD-Nias (BRR) The overall goal of the MDF is to contribute efficiently and supported the MDF to coordinate the reconstruction until effectively to the reconstruction of a "better" Aceh and BRR closed in April 2009. Now with BAPPENAS as the lead Nias following the earthquakes and tsunami. Therefore the coordinating agency at the central level, the MDF continues projects not only reconstruct infrastructure and rehabilitate to work closely with the provincial governments of Aceh and the economy in accordance with GOI's Master Plan, but also North Sumatra (Nias) in the reconstruction process. address social concerns such as reducing poverty, improving livelihoods, and increasing gender equity. BRR's achievements were celebrated as their mandate came to an end in April 2009. BRR prepared a report marking the MDF's successes and noting areas it could improve its effectiveness in the reconstruction process. The achievements of the reconstruction were also showcased at the final Coordination Forum for Aceh and Nias (CFAN4) which was held in February 2009. The MDF paid tribute to BRR at the final MDF Steering Committee meeting with 2 The Paris Declaration on Aid Effectiveness of 2005 commits all signatories to achieving aid effectiveness through the principles of (i) national ownership; (ii) alignment; (iii) harmonization; (iv) managing for results; and (v) mutual accountability. Indonesia has endorsed the Paris Declaration together with 117 other partner countries and international organizations, who have committed to follow these principles. 3 The OECD Development Assistance Committee (DAC) endorsed a set of Principles for Good International Engagement in Fragile States and Situations in 2007 that aim to complement and inform the commitments set out in the 2005 Paris Declaration on Aid Effectiveness which also notes the need to adapt and apply aid effectiveness principles to differing country situations, particularly fragile states. The MDF booth at CFAN4 displayed information of the MDF projects in Aceh and Nias. A deck above the display was used to receive dignitaries, donors and other stakeholders of the MDF. Photo: MDF Secretariat 13 MDF Progress Report December 2009 | Chapter I: Seeing Results and Facing Challenges BRR as co-chair, which was held in April. At the meeting, help these institutions to take on their new roles. The MDF the BRR presented an overview of the reconstruction works closely with these entities to facilitate the timely and process and achievements, and noted the pivotal role that smooth implementation of the portfolio. the MDF played as partner to BRR. The BRR also published a book series, funded by the MDF, which comprehensively The MDF partners with BAPPENAS to ensure documents the overall reconstruction efforts in Aceh and implementation of quality projects aligned with the Nias. reconstruction goals for Aceh and Nias. The MDF is in the final stages of project selection and funding commitment; The closure of BRR posed a number of institutional and approximately 7% of the total funds remain uncommitted. operational challenges for the MDF, and these have been The process for allocating remaining funds is now being addressed. The overall coordination of the recovery process driven by BAPPENAS in line with its coordination role, in has been passed on from BRR to BAPPENAS, including the close consultation with the Governments of Aceh and North role as co-chair of the MDF's Steering Committee. Within Sumatra. The MDF project review and approval process the MDF, BAPPENAS now plays the critical role of endorsing continues as BAPPENAS provides endorsements for new proposals for the allocation of remaining funds. Revised projects to the MDF Secretariat for Steering Committee operational procedures reflecting these new arrangements approval. Requests for additional funds for existing projects and lessons learned have been endorsed by the Steering are now being received so it is expected that the majority of Committee. remaining funds would be allocated in the near future. The MDF remains committed to channeling funds for projects Eleven projects in the MDF portfolio were affected by the through the government budget, where possible. Donors transition process from BRR to other GOI entities and all are kept abreast of developments at project and portfolio legal agreements have been changed to reflect the new levels through various Technical Review Group meetings and partnership arrangements. Measures were successfully put Steering Committee meetings. in place to ensure the transfer of implementation roles from BRR to line ministries. Four MDF infrastructure projects were MDF operations are guided by the Multi Donor Fund's co-financed by BRR. Recovery Assistance Policy (RAP). The RAP defines both the priority sectors as well as the approach for funding for The MDF has provided support to new partners, including the MDF. It also outlines a range of quality issues and cross- the governments of Aceh and Nias, during the transition cutting themes that should be considered in MDF projects, following the closure of BRR. As the reconstruction and such as environmental sustainability, gender equity, and rehabilitation phase has come to an end with BRR's exit, poverty alleviation. Other cross-cutting issues include funding and implementation procedures have reverted conflict sensitivity and ensuring a geographic balance in to regular government processes. The Coordinating Body delivering reconstruction assistance. for the Sustainability of Reconstruction in Aceh and Nias (BKRAN at National level; BKRA at Aceh Provincial level The Mid Term Review (MTR) of the MDF found that the and BKRN covering Nias at the North Sumatra Provincial MDF is highly relevant and performing well. The MTR level) was set up through Presidential Decree 3/2009 to was commissioned to assess the performance of the MDF support continuing implementation of the reconstruction at the project, portfolio and operational level. A Social efforts until December 31, 2009. The MDF provides Sustainability Review and an Environmental Sustainability targeted support, prioritizing resources and capacities to Review were undertaken separately; these reviews 14 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Chapter I: Seeing Results and Facing Challenges provided input into the overall MTR. The review teams' Providing Effective Coordination, findings and recommendations were presented to the Communications and Outreach Steering Committee on November 16, 2009. The review concluded that the MDF as a mechanism for post-disaster Coordinating with key stakeholders in the reconstruction reconstruction is a success, with many opportunities to and rehabilitation process ensures that the MDF offers contribute lessons learned to future post-disaster trust a relevant response to the needs of the people of Aceh funds. The MDF has already begun to follow up on many of and Nias. Through a consultative process involving various the MTR recommendations, and will develop an action plan stakeholders, the MDF supports government priorities and for following up on the remaining recommendations through fills gaps in the overall reconstruction. The MDF plays an a consultative process. important coordination role in bringing together key players from various levels of government, donors, and civil society in this process. This coordination role for the MDF has increased with the closure of BRR. Consultants and project teams inspect the quality of works at the Lhokseumawe drainage project during a supervision mission. Photo: MDF Secretariat 15 MDF Progress Report December 2009 | Chapter I: Seeing Results and Facing Challenges Participating in high profile events further draws attention that information reaches wide-spread audiences. A website to the work that the MDF is doing in the reconstruction provides details on projects and MDF governance at and rehabilitation process. The MDF displayed its activities www.multidonorfund.org. The MDF Secretariat also plays at the CFAN4 event, which served as a venue for hosting a key role in facilitating visits to the projects by donors and all MDF stakeholders, including donors and government delegates from various agencies, enabling the visitors to officials. The display was visited by more than 1,500 people. gain firsthand experience of project activities and meet with The MDF also hosted a series of documentary film screenings beneficiaries and project teams. at the event. Photograph exhibitions were held in Jakarta and Aceh, and the MDF took part in the Aceh International The MDF portfolio is enhanced by effectively managing Expo ­ Cultural Week which served as a further platform to and responding to feedback. All projects in the MDF highlight portfolio activities. portfolio are required to implement an Anti Corruption Action Plan (ACAP). The MDF also provides a hotline, monitored by The MDF's outreach efforts raise awareness of project the MDF Secretariat, through which queries, complaints and activities. The MDF uses a multi-faceted outreach comments can be submitted. All issues raised are handled at approach aimed at increasing the public and beneficiaries' project level, following up directly with the communities and awareness and understanding of MDF-funded activities. the complainants. Live radio broadcasts and regular media briefings ensure An infrastructure project team discusses progress and challenges of road construction during a supervision mission in Aceh. Photo: MDF Secretariat 16 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Chapter I: Seeing Results and Facing Challenges Working Together for a Safer and Cleaner Banda Aceh Parts of low-lying areas of post-tsunami Banda Aceh have become less prone to flood, thanks to the MDF-funded renovated drainage and pumping system coupled with a concerted effort to reduce the buildup of garbage in the city's drainage systems. "After the tsunami, the battered old drainage system meant our neighborhoods got easily flooded during heavy rains," says Kartini, the city's only female pump operator who runs one of the city's eight pump Ibu Kartini explains the operation of one of the city of Banda Aceh's pump stations, stations. "Thank God, with all the new facilities in place, we've seen less built through the Banda Aceh Flood Mitigation Project (BAFMP), implemented by flooding." the NGO Muslim Aid. Three of the pump stations were rehabilitated by the NGO Muslim Aid Photo: Christiani Tumelap under MDF's Banda Aceh Flood Mitigation Programme, which also system under another project funded by the MDF: the Tsunami Recovery developed a 16-kilometer drainage system and dozens of flood valves Waste Management Programme. This program has built multiple across three sub-districts in the city's Zone II. sanitary dumpsites for waste in areas across Aceh, such as the Gampong Of the training on pump house operations and maintenance she and Jawa landfill and recycling plant in Banda Aceh. To reduce the amount of fellow operators received through the program Kartini says, "I have city trash disposed of in these dumpsites, hundreds of garbage collectors, learned a lot... it really helps boost my confidence." or pemulung, were taught to collect and sort plastic waste by Palapa However, she warns that the modern flood control facilities will be useless Plastic Recycling (PPR), an organization that works with the waste if the city's garbage problems are not fixed. "The most recent flooding management program. occurred mostly because the sluice gates and valves were clogged up Executed by the UNDP, the waste management program initially focused with garbage." on clearing tsunami debris while creating short-term employment. Now Thus the flood mitigation project has also addressed the issue of waste it has evolved into a vehicle for both environmental improvement and management. "Communities are encouraged to manage trash collection local enterprise in the communities, creating livelihood opportunities and disposal and learn about waste recycling and composting," says through more efficient waste management. Over two hundred pemulung Muslim Aid Project Manager Saliza Mohamadar. "The municipality's in Banda Aceh and Aceh Besar have increased their incomes by up to 70% sanitation department has been equipped with 18 motorized three-wheel by selling the sorted plastic waste at better prices to PPR, according to garbage collecting vehicles to collect trash in areas unreachable by larger Pak Daardaak, the coordinator of the PPR recycling site near Banda garbage trucks," she adds. Aceh's main dump site in Gampong Jawa. Trash collection efforts in Zone II link up with a larger waste management At the PPR recycling site, the sorted plastic waste is cleaned and processed by 10 laborers. Among them is Nurhasanah, a single mom of two teenagers who was a pemulung before joining PPR last year to work as a sorter and cleaner, earning between IDR 30,000 and IDR 50,000 a day. "Sometimes I earn less when plastic prices drop or there's only a little waste to process, but at least I can bring food to the table," she says. The PPR's Gampong Jawa site produces at least 700 kilograms of plastic chips a day ­ a significant amount of plastic that is no longer clogging drains or filling dumpsites. All of these efforts at managing Banda Aceh's solid waste are having an impact. In June 2009 the President of Indonesia presented the Mayor of Banda Aceh with the 2009 National Adipura Clean City Award. Plastic waste is collected and sorted at a recycling plant near the Gampong Jawa landfill in Banda Aceh. The recycling plant provides employment to Ibu Nurhasanah and others as well as reducing the volume of solid waste going into Banda Aceh's landfill. The MDF's Tsunami Recovery Waste Management Programme (TRWMP) assisted in the establishment of the PPR recycling plant. Photo: Christiani Tumelap 17 MDF Progress Report December 2009 | Chapter 2: Portfolio Progress and Performance Chapter 2 | Portfolio Progress and Performance "Community empowerment is an important In Nias, women are involved in the construction of a community road being funded by the Nias Kecamatan-based Reconstruction and outcome of the MDF's community recovery Recovery Planning (KRRP) Project. The sense of community ownership projects that will have lasting impact." fostered through the community-driven approach in the MDF's projects such as KDP, UPP, REKOMPAK and KRRP has resulted in generally high levels of beneficiary satisfaction. Photo: KRRP Project Team 18 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Chapter 2: Portfolio Progress and Performance Five years after the tsunami and earthquake, the overall This evolving role for the MDF will continue until it closes in recovery and reconstruction of Aceh and Nias can claim December 2012. remarkable achievements. The MDF contributed 10% of the overall reconstruction funds, and its contributions have had The MDF has allocated additional resources to the Nias significant impact. The MDF's Mid Term Review conducted Islands this year. During 2009 two new projects, both focused in 2008-2009 found that the MDF had made a positive on Nias, were approved: the Nias Islands Transition Project contribution to harmonizing donor efforts and to increasing (NITP) with UNDP as Partner Agency, and the Nias Rural the effectiveness and efficiency of the reconstruction effort. Access and Capacity Building Project, with the ILO as Partner Agency. The Nias Livelihoods and Economic Development Overall reconstruction has almost come to a close, but Project (Nias LEDP), with World Bank as Partner Agency, some gaps remain. The official closure of BRR in April 2009 is in the final stages of preparation and is expected to be signaled the end of the reconstruction phase for many presented for Steering Committee approval early in 2010. actors, and many international donors and NGOs ended their These projects will supplement other MDF projects already post-disaster programming in Aceh and Nias during 2009. providing investments in Nias, including IREP and IRFF, However, there are still some needs and gaps, as identified the CSO Strengthening project, the Waste Management by the local government and communities. Remaining MDF Project (TRWMP), Capacity Building for Local Resource- resources are limited and can address only a small portion of Based Rural Roads, and the Nias housing and community those needs. recovery project, Kecamatan-based Reconstruction and Rehabilitation Planning Project (KRRP). The MDF has significantly contributed to the overall reconstruction and its role remains important in the post- The MDF has 22 projects with one in the preparation BRR period of reconstruction. The Mid Term Review (MTR) stage. Figure 2-1 depicts the status of projects in the MDF found the MDF to have been successful overall in achieving portfolio as of September 30, 2009. its mandate as a gap-filling mechanism responsive to government priorities. The MDF continues to add value after The MDF portfolio has shown significant progress in the closure of BRR, by working closely with BAPPENAS and achieving its targets during the past year as the majority of the Governments of Aceh and North Sumatra to identify and the projects are now in the mature implementation stage. respond to remaining needs in the reconstruction process. Large infrastructure projects such as the Infrastructure Reconstruction Enabling Program (IREP), the Infrastructure Reconstruction Financing Facility (IRFF), and the Banda Aceh Flood Mitigation Project (BAFMP) moved into full implementation over the past year, with the majority of these projects now complete. In Aceh, almost all of the MDF housing reconstruction targets have been met, with nearly 8,000 new houses constructed and 6,999 damaged homes rehabilitated. Several projects are nearing completion and scheduled to close at the end of 2009. Some of these (KDP, UPP) will close on schedule, but others (KRRP, TA to BRR and BAPPENAS) A village hall constructed under the Urban Poverty Project. Photo: UPP Project Team 19 MDF Progress Report December 2009 | Chapter 2: Portfolio Progress and Performance Figure 2-1: MDF Project Status as of September 30, 2009. Community-based Settlement Rehabilitation and Reconstruction Project (REKOMPAK) Nias Kecamatan-based Recovery and Planning Project (KRRP) Sea Delivery and Logistics Programme (SDLP) Recovery of Communities Infrastructure Recovery of Larger Infrastructure and Transport Reconstruction Enabling Program (IREP) Building Capacity and Governance Infrastructure Sustainable Management of the Environment Reconstruction Financing Facility (IRFF) Enhancing the Recovery Process Economic Development and Livelihoods Capacity Building for Local Resource-based Rural Roads (CBLR3) Support to Strengthen the Banda Aceh Flood Role and Capacity of CSOs Mitigation Project (BAFM) in the Recovery Process (CSO) Reconstruction of Aceh Technical Assistance to Support for Poor and Disaster Risk Reduction - Land Administration BRR & BAPPENAS (TA to Disadvantaged Areas Aceh (DRR-A) System Project (RALAS) BRR & BAPPENAS)** (SPADA) Community Recovery Aceh Forest and Aceh Government Nias Rural Access and Lamno-Calang Road through the Kecamatan Environment Project Transformation Capacity Building Project Maintenance Project Development Project (AFEP) Programme (AGTP) (RACBP)* (KDP) Tsunami Recovery Community Recovery Tsunami Recovery Waste Nias Livelihoods and Nias Island Transition Economic Development Ports Redvelopment through the Urban Poverty Management Programme Economic Development Project (NITP) Financing Facility (EDFF) Programme (TRPRP) Program (UPP) (TRWMP) Project (Nias LEDP) Full implementation with Full implementation with Winding down with closing Inception and early start- Closed (3) scheduled closing 2010** closing scheduled for after Preparation phase (2) by December 2009 (4) up (1) (10) 2010 (3) * RACBP became effective after September 30, 2009 ** Extensions may be requested by some projects need extensions of time to finalize their activities. Other delays in the government budget process affected its fund projects will seek additional financing in the coming months disbursement. Other projects such as AGTP, DRR-A, and for scaling up activities, often with a focus on improving the NITP have experienced lags in approval of their institutional project's exit strategy and sustainability. arrangements, thus stalling activity implementation on the ground. Time critical allocation of remaining funds has New institutional arrangements for the MDF as a result also been impacted due to delays in decision making on the of BRR's closure have resulted in delays in progress pipeline of new projects as a result of the new institutional across the portfolio. The much-anticipated Aceh Economic arrangements. Development Financing Facility (EDFF) has not been able to advance to full implementation stage because 20 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Chapter 2: Portfolio Progress and Performance Recovery of Communities Community recovery projects have achieved notable results in rebuilding physical assets at the community Projects focused on community recovery were the first level. Housing targets have been reached in Aceh and good to get underway in the MDF and work in this sector progress is being made in Nias. A total of 10,514 houses have is now drawing to a close. Projects in the community been constructed and 6,999 rehabilitated, with a further recovery sector leveraged existing mechanisms (the KDP 1,599 new houses under construction as of September 30, and UPP projects and approach) to achieve these results. 2009. Between them, KDP, UPP, REKOMPAK and KRRP This successful strategy became a model for the housing have assisted communities to reconstruct vital community reconstruction efforts following the earthquake in Central infrastructure, including 1,473 kilometers of village roads, Java and Yogyakarta in 2006, and can be relevant for 936 bridges, and 1,473 kilometers of irrigation and drainage reconstruction following the recent earthquake in West channels. Utilization rates for infrastructure and occupancy Sumatra. rates for housing are high, and surveys indicate that Pak Yatim, a satisfied beneficiary from Pidie, outside his house that was rebuilt through the REKOMPAK program. Photo: MDF Secretariat beneficiaries are highly satisfied with what these projects have delivered. This result can be attributed to the high degree of ownership and participation of beneficiaries in project design and implementation. Community empowerment is an important outcome of the MDF's community recovery projects that will have lasting impact. MDF's Mid Term Review noted that the community recovery projects have made important contributions to community development. Capacity development for local A team inspects the construction of a road in Nias funded by the KRRP program. Between KDP, UPP, REKOMPAK and KRRP projects, communities have been assisted in the reconstruction of vital community infrastructure. Photo: MDF Secretariat 21 MDF Progress Report December 2009 | Chapter 2: Portfolio Progress and Performance facilitators, the creation of community processes and the Recovery of Communities sense of community ownership have important impacts far Funds Allocated Project beyond specific project objectives in terms of reconstruction in US $ million of infrastructure and housing. Community-based Settlement Rehabilitation and Reconstruction 85.00 RALAS, the MDF's land titling program, experienced Project (REKOMPAK) problems in implementation but has still made important Community Recovery through the contributions to the reconstruction efforts. A series of Kecamatan Development Program 64.70 (KDP) implementation and management issues prevented RALAS from performing as expected and meeting its targets, and Community Recovery through the 17.96 Urban Poverty Project (UPP) it closed on June 30, 2009. Nonetheless, it successfully distributed 222,628 land titles to beneficiaries in Aceh. It also Nias Kecamatan-based Reconstruction and Rehabilitation Planning Project 25.75 trained over 400 facilitators from local communities and (KRRP) NGOs/CSOs in community land mapping and supporting the Reconstruction of Aceh Land and community-driven adjudication process and trained over 640 28.50 Administration Project (RALAS) government personnel on community-driven adjudication. Total 221.91 The construction of this village health center in Pidie was funded through the REKOMPAK program. Photo: MDF Secretariat The community-based housing and infrastructure project in Nias, KRRP, has experienced delays due to the unique challenges of reconstruction in Nias. The difficulties encountered in implementation such as recruiting and retaining qualified staff and delivering materials to remote rural areas are being addressed and the project will be extended in order to deliver on the commitments made to Setting out the footprint of a new school for construction in Nias. The school is part of the community infrastructure that is being funded through the KRRP program. Photo: KRRP Project Team 22 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Chapter 2: Portfolio Progress and Performance beneficiaries who are awaiting the expected houses and Work in the Community Recovery sector is entering the schools. Progress continues to improve, with 1,281 houses "lessons learned" phase as projects reach completion. having been completed during this reporting period, and The success of the MDF's community recovery projects construction started on more than 1,500 additional houses. has demonstrated that community-driven approaches can be successful in a post-disaster situation. This sector has The transition from BRR has been relatively smooth in the performed well over all and offers numerous lessons for Community Recovery sector. Because many of the projects future post-disaster reconstruction efforts. are nearing completion or are part of national programs, the transition to normal government administrative channels has gone smoothly for most projects. The exception is Recovery of Larger Infrastructure and REKOMPAK, where delays in issuing the budget (DIPA) Transport through regular government channels have held up implementation. The MDF continues to respond to the extensive infrastructure needs after the tsunami. Approximately 30% of the total MDF funds have been allocated to rebuilding or rehabilitating large scale infrastructure. The MDF infrastructure projects are nearing completion and are generally delivering strong results. 41 out of 53 sub projects under IRFF are now completed and at various stages of handover. These projects have provided more than 288 kilometers of national, provincial and district roads, 9 municipal water supply systems, and the rehabilitation of three ports. The SDLP project has delivered on the infrastructure element of the project and now promotes sustainability of the investments in ports by focusing on training programs linked to the University of Syiah Kuala. The Banda Aceh Flood Mitigation Project has completed implementation and is operational, with a community garbage collection component that not only keeps the drainage system functioning by preventing garbage from clogging the drains and sluice gates, but also provides jobs and a cleaner environment. The Lamno-Calang Road Maintenance Project and the Tsunami Recovery Ports Redevelopment Programme completed their activities at the end of 2007 and have both closed. Previous implementation challenges have been addressed but new challenges have emerged. Although some IRFF sub-projects are lagging, project consultants are working Construction of drainage along a new road built under the IRFF project in Aceh. Proper drainage reduces the risk of flooding and damage to roads during heavy rains. Photo: MDF Secretariat 23 MDF Progress Report December 2009 | Chapter 2: Portfolio Progress and Performance Restoring Port Facilities in Gunung Sitoli, "Crowds flocked the new jetty, Nias enthusiastically welcoming the ship The completion of a new MDF-funded pier at the Gunung Sitoli as it landed here for the first time port in Nias, North Sumatra, late last year has resulted in a major improvement in the flow of people and goods to and from since the March 2005 earthquake." the island. The opening of the 200-meter long and 11-meter deep jetty and trestle allowed the passenger ferry MV Lawit to resume its regular service in January 2009, reconnecting Nias with Padang, Medan, and Jakarta. "Crowds flocked the new jetty, enthusiastically welcoming the ship as it landed here for the first time since the March 2005 earthquake," recalls Makmur Polem, the head of Gunung Sitoli Port Administration (Adpel). The new port facility is the island's main entry point for importing almost all basic commodities and manufactured goods from Medan and Padang, explains Semuel Parinussa of the Infrastructure Reconstruction Enabling Program, the MDF project responsible for the design of the new jetty development. The jetty was built under the Infrastructure Reconstruction Funding Facility, also funded by the MDF. The new pier also helps ease cargo congestion in the smaller and more worn old jetty which has been long-overwhelmed by the average of 120 ships it serves each month, says E. Sitompul, an assistant manager at the Gunung Sitoli branch of state- owned port operator Pelindo. "Off-loading activities used to be unbearably slow. We heard complaints over delays almost every day," he says. "Now, customers are happy because we've been offering speedier services," he explains. "Owners of ships and goods can save time and cost because they no longer need to wait for days to off-load their goods." The MDF's support for the construction of physical infrastructure at the Gunung Sitoli port is complemented by another MDF program focused on improving management and technical skills of port employees from across Aceh and Nias. Gunung Sitoli port employees have joined colleagues from 18 other ports in Aceh and North Sumatra in a training course on port operations and management organized by the World Food Programme's Logistics Support Unit under the MDF's Sea Delivery and Logistics Program. The one-year course developed by the Singapore Maritime System includes 22 modules aimed at building capacity for modern port management. The course is held at Syiah Kuala University in Banda Aceh. The university will soon take over the administration of the course and there The new jetty at Gunung Sitoli Port in Nias constructed under the MDF's Infrastructure Reconstruction Financing Facility (IRFF) project. Photo: Christiani Tumelap 24 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Chapter 2: Portfolio Progress and Performance are plans to further develop the course into a full degree program, according to WFP-LSU shipping officer/port captain Syariful A-Lubis. Of the 232 course participants, 60 are from Nias, among them Adpel's Makmur Polem and Pelindo's general affairs head M. Yusuf Chaniago. "Overall, the course helped broaden my horizon about proper operations and management of a modern port," says Polem, who completed the port general management, finance, human resources, IT and effective communication modules. While Gunung Sitoli is still only a conventional port at present, Polem hopes that "in the future, such training can help the next generation to run a modern, primary Gunung Sitoli port." M. Yusuf Chaniago proudly displays his certificate. Photo: Christiani Tumelap Course participants in a class for port management and administration supported by the Sea Delivery and Logistics Program. Photo: Christiani Tumelap Chaniago, who took the English module, has had ample opportunity to apply his coursework, reporting, "The English class turned out to be very fruitful. I got to learn essential topics like navigation, port and ship safety and security, and regulations of port entry and exit." He now gladly assists colleagues at the port with English inquiries from foreign shipping or cargo lines. At home, he encourages his children to learn English, and notes proudly, "My son, who studied at the local merchant marine academy, found my course materials very useful too!" 25 MDF Progress Report December 2009 | Chapter 2: Portfolio Progress and Performance closely with contractors to improve performance, and the Recovery of Larger Infrastructure and Transport project in general is delivering results. A significant challenge Funds Allocated Project that has emerged over the past year is that the DIPAs are in US $ million consistently issued after considerable delays, affecting Banda Aceh Flood Mitigation Project 6.50 project implementation not only in this sector but across the Infrastructure Reconstruction Enabling MDF portfolio. 42.00 Program (IREP) Infrastructure Reconstruction 100.00 Financing Facility (IRFF) Lamno-Calang Road Maintenance 1.46 Project Sea Delivery and Logistics Programme 25.03 (SDLP) Tsunami Recovery Ports 3.78 Redevelopment Programme (TRPRP) Total 178.77 The construction of this protective sea wall as part of the Lhokseumawe port project has reduced the risk of flooding during high tide and rough seas. Photo: MDF Secretariat The pedestrian crossing and sign on this road constructed under the Physical conditions on site pose challenges and lead to increased IRFF project allows children to cross safely on their way to school. contract costs. Contractors are constantly facing natural challenges, Photo: MDF Secretariat such as in the case of this road in Aceh where the retaining wall to the new road has been damaged by a landslide as a result of a local earthquake. Photo: MDF Secretariat 26 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Chapter 2: Portfolio Progress and Performance Government has identified further needs for investment in Strengthening governance through capacity building was infrastructure and building capacity aimed at ensuring the identified as an important target of the MDF effort from sustainability of the investments. Given the limited time the outset. Building capacity for improved local governance remaining for implementation by 2012, additional financing is the primary objective for three projects in the portfolio for existing projects is recommended rather than starting up (CSO, SPADA, and the CBLR3). Three other projects (AGTP, new projects. NITP and TA to BRR and BAPPENAS) that directly contribute to enhancing the efficiency and effectiveness of the recovery process have also specifically included building governance Strengthening Governance and Capacity capacity to manage reconstruction responsibilities after Building the closure of BRR as an important outcome. In addition, almost all MDF projects include project-specific capacity The MDF's Mid Term Review noted that broad-based building elements as a means for ensuring sustainability of capacity building across all of Aceh and Nias has emerged the investments after the reconstruction ends. as the foremost achievement of the MDF. Strengthened institutional and organizational capacity, as well as skills The Capacity Building for Local Resource-based Rural development, impacted primarily the public sector at Roads project (CBLR3), implemented by the ILO, works provincial and district levels as well as to some extent the with BAPPEDA at the district level to build capacity to sub-district and agency levels. use local resources for constructing village roads. The project also builds capacity of local small contractors and strengthens community capacity to be involved in decision- making. The ILO's new RACB project in Nias will further develop this mechanism and will strengthen the capacity of local government, communities and contractors to improve access to remote rural areas in Nias. The Support to Strengthen the Capacity of Civil Society Organizations (CSO) Project, under UNDP, is seeing impact as the project winds down. Over 200 CSOs have been trained in key strategic competencies through the project, including 80 in Nias. Project assessments indicate that local governments have become more responsive to community voices, and communities have become more aware of their ability to make their voices heard. The project has reported on its community-based monitoring of reconstruction to local governments in both Aceh and Nias. Through the project 141 small grants have been provided to CSOs to support income generation, basic social services, and specific women-led activities in communities. Community representatives from Mukim Lamteungoh, Aceh Jaya District, work together to identify land use activities and boundaries of their Mukim. Mukim are the traditional Acehnese institutions responsible for governing natural resource management. FFI-AFEP is supporting Mukim residents to identify and map their land and forest boundaries and to rebuild their institutional and management capacity for natural resource management, as part of a sustainable, equitable and appropriate livelihood strategy. FFI's Mukim strengthening initiatives are community-driven and designed to be integrated into the annual government planning process. Photo: AFEP Project Team 27 MDF Progress Report December 2009 | Chapter 2: Portfolio Progress and Performance Strengthening Governance and Capacity Building designed with inclusion of women in project activities as part Funds Allocated of the project strategy. Project in US $ million Capacity Building for Local Resource- 11.80 based Rural Roads Sustaining the Environment Support for Poor and Disadvantaged 25.60 Environmental sustainability was an early concern for the Areas MDF in the immediate post-tsunami period, and it remains Support to Strengthen the Role and 6.00 an important focus. The MDF emphasized environmental Capacities of CSOs sustainability as a cross-cutting theme to be addressed in (Nias Rural Access and Capacity Building (10.00)* projects across the portfolio as well as the primary focus of Project)* certain projects. The Aceh Forest and Environment Project Total 43.40* (AFEP) was created specifically to address the issue of the * This project became effective after September 30, 2009 and is not included in the total shown. potential negative impact reconstruction might have on Aceh's important forest ecosystems. In addition, the Tsunami Recovery Waste Management Programme aimed not only Implementation issues with the Support for Poor and to assist with the clean up after the tsunami but to create Disadvantaged Areas Project (SPADA) have been resolved, clearing the way for significant progress in the coming months. The project is requesting an extension until June 2011 in order to complete implementation that has been delayed due to budget release and other issues. The MDF also aims to enhance the capacity of local governments to manage reconstruction assets after the closure of BRR. The Aceh Government Transformation Programme (AGTP) works with the provincial government in Aceh and the Nias Islands Transition Project (NITP) works with district governments in Nias to build capacity specifically aimed at managing the reconstruction assets and process. The MDF's commitment to supporting good governance in the reconstruction includes an emphasis on equity issues, ensuring the inclusion of women and disadvantaged groups. As part of the MDF's MTR process, a study on social sustainability in the MDF portfolio was undertaken and a workshop held in Banda Aceh in May 2009 to discuss ways to improve social sustainability across the portfolio. MDF projects that work directly with beneficiaries, including CSO, UPP, KDP, RALAS, KRRP, CBLR3 and SPADA, have been The MDF emphasized environmental sustainability both as a cross- cutting theme to be addressed in projects across the portfolio as well as the primary focus of certain projects. This signboard, erected by the Infrastructure Reconstruction Financing Facility project in Aceh, cautions against the removal of sand from the beach for construction purposes. All IRFF projects are required to comply with the Government of Indonesia's environmental safeguard policies. 28 Photo: MDF Secretariat Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Chapter 2: Portfolio Progress and Performance Sustaining the Environment Funds Allocated Project in US $ million Aceh Forest and Environment Project 17.53 (AFEP) Tsunami Recovery Waste Management 39.41 Programme (TRWMP) Total 56.94 a sustainable solid waste management system in Aceh. The MDF's Mid Term Review noted that both of these projects contribute innovative approaches and increased awareness on environment and waste management. This innovative packaging of asphalt used by one of the IRFF projects reduces the impact on the environment. The asphalt, including the package, is processed by the asphalt mixing plants, thereby reducing Tsunami Recovery Waste Management Programme waste. The transport of asphalt in this way is also easier than the (TRWMP), now in its third phase, is building local conventional large drums that asphalt is normally packaged in. capacity for sustainable solid waste management. The Photo: MDF Secretariat project constructs key infrastructure including interim and permanent landfills, and builds capacity in local government sanitation departments to effectively manage, operate and maintain waste collection and disposal systems. Developing fee-based systems for waste collection services is a core activity which promotes long-term sustainability of the waste management systems after project funding ends. In addition, the TRWMP supports the development of small businesses in recycling and other waste-related activities. AFEP continues to respond to a dynamic and challenging context and the project is making significant progress. The project has continued to work with government partners such as the Governor's Green Aceh initiative, the BPKEL, and TIPERESKA. Its activities require flexibility and responsiveness in order to support enhanced local capacity for effective monitoring and sustainable management of Aceh's forest resources. Some key accomplishments include training more than 255 forest rangers and 90 community forest monitors, replanting more than 2299 hectares of forest, protecting livelihoods through mitigating human- wildlife conflict, establishing 47 community nurseries, Rehabilitation of landfills has been a key activity of the TRWMP. Ten interim landfills/dumpsites have been upgraded or rehabilitated with more than 26 hectares of waste cells constructed. Photo: TRWMP Project Team 29 MDF Progress Report December 2009 | Chapter 2: Portfolio Progress and Performance developing environmental awareness curricula and materials priorities. The MDF portfolio is largely government led and for use in schools, and training more than 875 teachers. The implemented through government systems. project continues to monitor and provide analysis of changes in forest coverage and works closely with law enforcement Some projects in the MDF portfolio were designed to to build capacity to follow through on cases of illegal logging support government in coordinating the overall post- from arrest through conviction. tsunami and earthquake recovery and reconstruction. Technical Assistance to BRR (TA to BRR) provided technical expertise to assist in coordinating the recovery and Enhancing the Recovery Process reconstruction. The MTR notes that the BRR was satisfied with the outcomes of this support. In its last year the BRR The Multi Donor Fund was designed to enhance the began to focus more on lessons learned and preparing effectiveness and efficiency of the overall reconstruction for the transition to local government. This included process in addition to achieving results in particular preparing the RAN data base of reconstruction activities sectors. The MTR found that the MDF was highly relevant for handover to local government, KNOW (the center for as a gap-filling instrument responsive to Government knowledge management), and the publication of the book Despite often challenging conditions, reconstruction efforts have made good progress. Heavy equipment provided by the World Food Programme's Sea Delivery and Logistics Programme (SDLP) works in the heavy rain to assist in the delivery of construction materials on site. Photo: Bambang Suseno 30 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Chapter 2: Portfolio Progress and Performance Enhancing the Recovery Process to build capacity and sustainability through support to the Funds Allocated Tsunami Disaster Mitigation and Research Center (TDMRC) Project in US $ million based at the Syiah Kuala University. Financial support to the Technical Assistance to BRR and TDMRC has been delayed, however, due to difficulties in 22.48 BAPPENAS setting up channels for funds to flow to the university. Disaster Risk Reduction ­ Aceh (DRR-A) 9.87 Aceh Goverment Transformation Programme (AGTP) 13.98 Economic Development and Livelihoods Nias Islands Transition Project (NITP) 3.89 The Multi Donor Fund has demonstrated a commitment Total 50.22 to supporting economic development and livelihoods as part of the recovery process. As much of the physical reconstruction in Aceh and Nias nears completion and series on lessons learned. In May the TA to BRR project was the recovery efforts wind down, economic development renamed "TA to BRR and BAPPENAS," and extended until and livelihoods have become a prime concern of the local 31 December 2009 to provide support to BAPPENAS in its governments. new coordination role. The Aceh Economic Development Financing Facility The Aceh Government Transformation Programme (AGTP) (EDFF) became effective in the first quarter of this year. and the Nias Islands Transition Project (NITP) provide This US $ 50 million project will fund a range of sub-projects similar support to the provincial government of Aceh and designed to support economic development in Aceh's key the district governments in Nias. Both the AGTP and NITP livelihood sectors such as agriculture and fisheries. The have encountered difficulties in formalizing institutional project issued a call for proposals in April 2009. Interest in arrangements. The 2009 budget was released and the 2010 the project is strong as evidenced by the more than 100 budget is on target to be released on schedule in January. proposals received from NGOs and agencies partnering With the budget issues mostly resolved, AGTP should be with local governments. The sub-project selection process is on track to make progress with implementation during the currently underway. Start up was delayed due to issues with next reporting period. The NITP started up in May and is still the release of the budget, but these issues appear to have working out the details of implementation arrangements to been resolved.4 be formalized in an agreement with the Ministry of Home Affairs (MoHA). The business environment in Aceh is being improved through a component of the SPADA project that Projects focused on Disaster Risk Reduction (DRR) are strengthens provincial government capacity for issuing contributing to enhancing recovery by supporting disaster business licenses. The Asia Foundation implements this resilience. Two MDF projects focus on DRR: the Disaster component which has set up a one-stop service for businesses Risk Reduction-Aceh Project (DRR-A), and NITP which seeking a license to work in Aceh, removing a key constraint incorporates a DRR component. DRR-A is working with the to investment in the local economy. Department of Education in the development of disaster preparedness education materials in the local language, 4 Governor Irwandi highlighted the importance of this project to Aceh in his some targeted specifically at women. The project is intended opening remarks to the 20th Steering Committee in November. 31 MDF Progress Report December 2009 | Chapter 2: Portfolio Progress and Performance The TRWMP supports the development of small businesses in recycling and other waste-related activities, such as this plastics recycling plant in Nias. Photo: MDF Secretariat Nias Livelihoods and Economic Development Project (LEDP) is in the final stages of preparation. Once approved, this US $10 million project would provide communities in key economic clusters with technical assistance and inputs to support livelihood improvements. The targeted economic clusters will be closely coordinated with the Rural Access and Capacity Building Project being implemented by ILO to ensure that improvements in agricultural production is supported by increased access to markets and services. Economic Development and Livelihoods Funds Allocated Project in US $ million Economic Development Financing 50.00 Facility (EDFF) Total 50.00 A woman picks chilis she has grown with support from the Aceh Forest and Environment Project. Communities living on the edge of the forest receive funds to help them develop sustainable ways of earning income as alternatives to illegal logging. Photo: Rajyasri Gayatri 32 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Chapter 2: Portfolio Progress and Performance Strengthening Aceh's Disaster Research Center disaster mitigation, including providing policy makers with important recommendations during the drafting and subsequent passing of The MDF has sponsored the strengthening of a disaster research center Aceh's recent disaster mitigation qanun (bylaw). in Aceh through its Disaster Risk Reduction for Aceh (DRR-A) program, "We need to keep providing local government officials with the implemented by the United Nations Development Programme (UNDP). knowledge of disasters, the technology available for their mitigation The disaster research center aims to ensure that the lessons learned and handling as well their monitoring and evaluation. We have shared from the 2004 tsunami disaster are well archived and shared among with them various lessons learned from disasters and aftermath local and overseas stakeholders for better future disaster mitigation handling from all over the world," says Dr. M. Dirhamsyah. efforts. TDMRC has capacity building schemes set out in a Memorandum of Dr. M. Dirhamsyah, MT, director of the Tsunami Disaster Mitigation Understanding with all Satkorlaks ­ the disaster handling coordination and Research Center (TDMRC) based at the Syiah Kuala University, unit attached to local government offices ­ in Aceh. The center has says: "DDR-A is a strategically important project as it prepares both encouraged the active involvement of Satkorlak staff in developing the local governments and people for disasters." the government's local action plan, disaster drills, and various other The DRR-A has recognized the importance of the project, allocating work plans. US $ 5.06 million for the research center. MDF support to TDMRC aims Though several other disaster research centers have been established to strengthen the capacity of local institutions, including Syiah Kuala in post-tsunami Aceh, the TDMRC is special in that it has developed University, to manage disaster-preparedness activities, in order to close partnerships with the local governments, notes Dirhamsyah. ensure the impact of DRR-A work carries on after the project ends. Researchers have made themselves available as a resource for various The center's main activities include assisting local governments public discussions organized by school across Aceh, and the center has and government institutions to train staff on various aspects of undertaken disaster risk assessment studies and developed a disaster management information system for Aceh. "These are all very important to be able to engage people here effectively, to get people and local governments more aware of and prepared for disasters, and help them become well-versed with some know-how for handling disasters," says Dirhamsyah. This approach includes exploring and archiving existing disaster mitigation-related traditional wisdoms and cultures, as Dirhamsyah notes, "part of our job is to actively seek data from stakeholders involved in the Aceh rehabilitation." According the center's website, it has published several documents on various topics related to disasters, especially tsunamis, since its establishment in 2006. The center recently collaborated with both the Canada-Sri Lanka Consortium for Post Tsunami Restoration and New Mexico State University as well as with international research centers such as the Pacific Tsunami Museum-Hawaii, Earthquake Megacity Initiatives, and the Tsunami Research Center in Sydney. The center has just successfully organized its annual conference, the International Workshop & Expo on Sumatra Tsunami Disaster & Recovery (AIWEST-DR). Researchers from 15 countries took part in the workshop, presenting over 70 papers, says Dirhamsyah, who also reports, "we have aimed from the beginning to create a sustainable research center, a regional center of excellence, and therefore will continue to work and build trust with multiple stakeholders." The rector of the University of Syiah Kuala speaks at TDMRC's Annual International Workshop and Expo on Sumatera Tsunami Disaster and Recovery (AIWEST) in November 2009 in Banda Aceh. Photo: Rosly Syamsurizal 33 MDF Progress Report December 2009 | Chapter 3: Finances Chapter 3 | Finances "The majority of funds (37%) allocated by the Children play in front of a new school constructed with support from the MDF. MDF are for the recovery of communities." Photo: Abbie Trayler-Smith / Panos Pictures / Department for International Development (UK) 34 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Chapter 3: Finances Pledges Approximately 73% of funds allocated to projects in the Multi Donor Fund portfolio are on-budget and therefore As of September 30, 2009, the Multi Donor Fund (MDF) channeled through the Government of Indonesia's has a total of US $ 685 million in pledges from 15 different national budget. The remaining funds are implemented donors as presented in Table 3.1. Not all pledges are made by the United Nations Development Programme, the World in US Dollars and some have not yet been received. The total Food Programme, the International Labour Organization and amount pledged varies based on the exchange rate at the Non-Government Organizations, as shown in Graph 3.2. time that funds are made available to the MDF, as well as the date of the MDF reporting. All pledges have been formalized through signed contribution agreements between the MDF Disbursement and the respective donors. As of September 2009, the Multi Donor Fund disbursed US $ 399 million (approximately 66% of allocated funds) Cash Available to 21 projects. Approximately US $ 269 million has been To date, the MDF has received US $ 511 million of the total Table 3.1: Multi Donor Fund Pledges and Contributions as of pledges from the donors. Cash projections are monitored Sept. 30, 2009 on a regular basis to ensure that the MDF has sufficient funds Pledge to continue financing project activities. amount and Cash Contribution Source Received US Agreements $ million signed in US Funding Allocation and Commitments $ million European Commission* 272.11 174.01 As of September 30, 2009, the MDF has allocated US $ Government of Netherlands 171.60 100.00 601 million to 21 projects in five outcome areas: recovery Government of United 68.50 68.50 of communities, infrastructure and transport, rebuilding Kingdom Government of Canada 24.51 20.22 governance, supporting sustainable management World Bank 25.00 25.00 of the environment and economic development. The Government of Sweden 20.72 20.72 Government of Indonesia committed to contribute an Government of Norway 19.57 19.57 additional US $ 168 million in co-financing for four projects Government of Denmark 18.03 18.03 in the MDF portfolio. Government of Germany 13.93 13.93 Government of Belgium 11.05 11.05 The majority of funds (37%) allocated by the MDF are for Government of Finland 10.13 10.13 the recovery of communities, as set out in Graph 3.1. The Asian Development Bank 10.00 10.00 infrastructure and transport sector received 30% of allocated Government of United States 10.00 10.00 funds, while projects implemented in the environment, Government of New Zealand 8.80 8.80 governance and livelihood sectors received the remaining Government of Ireland 1.20 1.20 33% of funds. Based on allocations and commitments in the Total Contributions 685.15 511.17 reporting period, 11% of the MDF portfolio now includes *Exchange rate as at Sept. 30, 2009; Source World Bank support for livelihood and economic development. 35 MDF Progress Report December 2009 | Chapter 3: Finances Graph 3.2: Allocations of Funds per Implementing Agency as Graph 3.1: Sectoral Allocation as of Sept. 30, 2009 of Sept. 30, 2009 Sustainable Management Livelihood and Economic Recovery of ILO WFP Ministry of of the Environment Development Communities 2% 4% Disadvantaged Areas 9% 8% 37% 12% UNDP Land Administration Agency 17% 5% off-budget NGOs 4% on-budget Building Capacity Ministry of Ministry of and Governance Infrastructure and Transport Home Affairs Public Works 16% 30% 15% 41% disbursed to the Government of Indonesia for the funding of been a critical challenge to project implementation and on-budget project activities, while the remaining funds were disbursement rates. Now that all transition arrangements disbursed to off-budget projects. have been set in place and formalized, it is expected that disbursements to projects will pick up in the coming year, as 15 projects are in full implementation. Outlook After September 30, 2009, US $ 10 million was allocated The total amount of unallocated funds within the Multi to the Nias Rural Access and Capacity Building Project Donor Fund budget as of September 30, 2009 is US $ 47 with the ILO as Partner Agency. The Nias Livelihoods and million.5 The remaining funds are expected to be utilized Economic Development Project, totaling US $ 10 million, is for additional financing to projects under implementation. still in the preparation stage, and approval is expected by the Taking into account the time required for project preparation first quarter of 2010. and implementation, the swift allocation of these remaining funds is imperative to fully disburse by 2012. Graph 3.3: Sectoral Allocations and Commitments as of September 30, 2009 Disbursements during the past year (October 2008 ­ Sustainable Management Livelihood and Economic Recovery of of the Environment Development Communities September 2009) are higher than in the previous year. 9% 11% 36% Disbursements from April to September, 2009 were slower than during the period of October 2008 to March 2009. The exit of BRR in April and the transition in implementation arrangements of projects are among the reasons for the slowdown in disbursements over the last six months leading up to September 2009. Budget release through DIPA has Building Capacity and Governance Infrastructure and Transport 5 The estimate of remaining funds may change due to fluctuations in exchange 15% 29% rates and interest rates. 36 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Chapter 3: Finances Supporting Communities to Safeguard and improved enforcement of environmental laws. Through Livelihoods and the Environment: AFEP, Fauna and Flora International (FFI) is training former combatants, illegal loggers and wildlife poachers as Community Rangers and Community `Community Rangers.' Candidates, such as those pictured Response Unit Patrols here, undergo a grueling, 10-day orientation to test their skills and commitment. By transforming an illegal logger or wildlife A coordinated, multi-faced approach is key to reducing illegal poacher into a conservationist, this AFEP initiative is producing logging and the threat it poses to ecosystem services and double benefits for the forest. therefore human wellbeing. The Aceh Forest and Environment Human-wildlife conflict poses a persistent and wide-spread Project (AFEP) works on various levels to monitor and protect threat to the livelihoods of forest-edge farming communities Aceh's vital ecosystem resources of the Leuser National - as well as to human life. AFEP works closely with these Park and the Ulu Masen Ecosystem. At the community level, communities in managing problem elephants and tigers that this approach includes both positive incentives, such as the destroy their crops and livestock. In response to requests from creation of alternative environmentally-friendly employment, community and government stakeholders, the project has Community Response Units use elephant-mounted patrols to monitor the forest and protect villager's crops and livestock from attack by wild animals. Photo: Abbie Trayler-Smith / Panos Pictures / Department for International Development (UK) established Community Response Units (CRU) in Aceh Jaya and Pidie. A CRU uses elephant patrols (pictured) for driving problem wild elephants back into the forest as well as for routine forest monitoring patrols. Through these CRU and with support from the Forestry Department, communities are monitoring and protecting the forest and at the same time protecting their livelihoods. The Aceh Forest and Environment Project recruits and trains former combatants, illegal loggers and wildlife poachers to become Community Forest Monitors. Photo: AFEP Project Team 37 MDF Progress Report December 2009 | Chapter 4: Looking Ahead Chapter 4 | Looking Ahead: The Changing Operational Context "New projects are expected to Reconstruction of bridges like this one through the RACB project provide access to markets and services for remote rural villages in boost the sustainable economic Nias. development of Aceh and Nias." Photo: MDF Secretariat 38 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Chapter 4: Looking Ahead MDF projects have matured and delivered on their targets Approximately US $ 47 million remains unallocated. during this fifth year of implementation. As it enters its sixth The MDF faces a number of challenges in allocating the year of operations and makes final allocations of funding, a remaining MDF funds and facilitating the timely release of shift in the composition and focus of the MDF portfolio is project funds from the national budget. It is imperative that evident as projects approach their closing dates and more the funds are allocated in the coming months to allow for emphasis is placed on capacity building and strengthening sufficient time to implement activities so that projects close the economy. The MDF will see a number of projects coming by June 2012, with the MDF closing in December 2012. to completion in the next year and at the same time the start-up of the last wave of projects under MDF funding. The use of remaining funds will focus on infrastructure, institutional support and improving capacities within these BAPPENAS has now become a key player in the contexts. This approach will address the remaining gaps reconstruction efforts, having taken over the central and enhance sustainability of the investments made to date. role of coordination from BRR. The BRR formerly played It is anticipated that these remaining funds will be allocated coordinating, executing and implementing roles. With primarily through existing MDF projects. By strategically BAPPENAS at the helm, government agencies at various providing additional funds to projects that are successfully levels have now taken over the range of these responsibilities implementing activities through MDF funding currently, the for the reconstruction and rehabilitation efforts that were period from allocation of funds to the implementation of formerly housed in one institution, the BRR. With the roles activities can be accelerated. Using institutional structures and responsibilities for reconstruction now shifted from BRR and funding channels already set up will allow more time for to relevant line ministries, regular government procedures projects to focus on implementing activities. The MDF will for the administration and implementation of projects support BAPPENAS in its role of coordinating the remaining must be followed. As a result of these new institutional reconstruction efforts and will also support the two provincial arrangements, the MDF has forged new working relationships planning agencies (BAPPEDA) in their delegated roles. with a broader set of government partners. Supporting the Overall Reconstruction The Changing Portfolio Process The composition of the MDF portfolio is changing after Temporary agencies set up to assist with the transition five years of implementation. A large portion of the MDF from BRR will end their mandate at the close of December projects that were initiated at the start of the MDF are 2009. The MDF is providing targeted support to the BKRA, drawing to a close. As of September 30, 2009, three projects BKRN, and BKRAN, assisting in policy development and have closed, and a further 14 projects are currently expected the management of the transfer of assets from BRR. After to close by the end of 2010. Some projects have indicated these transition bodies close in December 2009, the MDF that they may request extensions to the closing dates to will be available to support the next phase of transitioning achieve project objectives. Three projects are completed, fully to regular government mechanisms for managing and one project is in start-up phase. After September 30, reconstruction assets and coordination of remaining 2009, one further project was allocated funding, while one reconstruction efforts. more is under preparation. 39 MDF Progress Report December 2009 | Chapter 4: Looking Ahead Community Recovery Programs: a Community-Driven Approach Improves Lives and Livelihoods Nearly five years after the tsunami, villagers of Mesjid Gigieng in Simpang sub-district near the coast of Pidie, Aceh, have rebuilt their community with support from the MDF. Two of the MDF's Community Recovery programs, the Community- based Settlement Rehabilitation and Reconstruction Program (CSRRP) and the Kecamatan Development Program (KDP), have supported a community-led process through which villagers have constructed their houses and community infrastructure. The CSRRP program, better known in Aceh by its Indonesian acronym REKOMPAK, has provided housing through a community-driven approach. Wardiyati, a housing project beneficiary, says: "The new house we built using the IDR 53 million REKOMPAK fund helped my family to return to our village and start over. Once we were in our new home I could resume making emping melinjo (bitter nut crackers) at home so we could start earning income again." She and many Ten new public washing areas were constructed in Mesjid Gigieng, other beneficiaries in Mesjid Gigieng moved into their new Simpang sub-district in Pidie through the MDF's REKOMPAK project. Villagers also built 54 new houses and rehabilitated 23 others with permanent houses in early 2008. support from the project. The REKOMPAK program has helped the villagers to rebuild 54 Photo: Christiani Tumelap houses, rehabilitate 23 others, and revamp the drainage system and public washing areas. During project implementation would suffer from our delays. We didn't want that to happen!" last year, beneficiaries worked hard to plan and carry out the As a reward for the villagers' achievement, the MDF approved construction works themselves, recalls M. Nur, who led the their proposal for additional funding worth IDR 366 million. village's program implementation team (TPK). The villagers used the funds to build ten deep wells along "The REKOMPAK program was unique. We beneficiaries with a water piping system, with each well serving at least 10 worked in groups and everyone was involved at every step of houses. The idea for the water system came from the village the process," he says, attributing their success to hard work women, says Mauluddin, treasurer of the village's TPK. The and cooperation. community also revamped the village's drainage system and Wardiyati, who was the treasurer in her group, recalls the long sanitation facility with the infrastructure grant, which was hours of deliberative meetings and meticulous administrative disbursed under the REKOMPAK program. reporting tasks that they had to undertake. "But our hard Along with assistance from REKOMPAK, the villagers also work was worth it," she says proudly. In fact their efforts received aid from MDF through the Kecamatan Development resulted in making Mesjid Gigieng the first village to complete Program (KDP). Since KDP also focused on infrastructure REKOMPAK's housing reconstruction program, after just 10 development, villagers worked to ensure the infrastructure built months. under KDP did not overlap with that built under REKOMPAK, Wardiyati says: "We worked fast, and kept things in line with says Safridayani, one of the village facilitators tasked to assist the project requirements. We could not make mistakes or miss the villagers in implementing both the REKOMPAK and KDP deadlines, because if we did other housing beneficiary groups programs. 40 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Chapter 4: Looking Ahead "The villagers who handled the implementation of REKOMPAK and KDP kept open communications and shared updates on each project so that they did not duplicate proposals," Safridayani affirms. The IDR 500 million KDP fund was used to repair the Mesjid Gigieng road, resulting in a new 1.9-kilometer concrete-based road that has significantly improved lives, says Safridayani. "With this road built through our community's efforts, people can now go to the market, school or work safely, even during the rainy season. And wholesale buyers can come more often to buy crackers from the women here," smiles the village facilitator. Ibu Waridiyati and Ibu Cut Halima show their Community Settlement Plan Book developed as part of the community-driven approach of the MDF"s REKOMPAK project. Photo: Christiani Tumelap Ibu Wardiyati (right, holding her daughter), one of REKOMPAK's housing beneficiaries in Mesjid Gigieng village, Pidie, and her neighbors returned to their village and were able to resume their livelihood making emping melinjo (bitter nut crackers) once their new homes were completed. Photo: Christiani Tumelap 41 MDF Progress Report December 2009 | Chapter 4: Looking Ahead Smooth implementation of projects in the remaining lifetime of the MDF program is a major concern. Normal government budget procedures are now being used for channeling funds to projects. Delays in the registration and approval of budget notes (DIPAs) have held up project implementation over the past year. BAPPENAS is tasked with coordinating the various government agencies that now have a role to play in implementing the reconstruction activities post-BRR. The MDF is working closely with BAPPENAS, Ministry of Finance and relevant line ministries to ensure the timely release of the budget notes (DIPAs), in order to enhance the ability of projects to implement activities as scheduled. The Tsunami Recovery Waste Management Programme provides training on composting techniques to teachers and students. Beyond Building Back Better Photo: TRWMP Project Team Benefits from completed MDF investments are now evident and affecting the daily lives of beneficiaries. Substantial investments have been made in both physical outputs as well as technical assistance and capacity strengthening. The immediate impacts of infrastructure and other physical investments are clearly evident in improved accessibility and movement of goods and people through the roads, bridges, and ports that have been rehabilitated and reconstructed. The impact of the institution and governance strengthening work that has been a core focus of the MDF portfolio is less tangible, but outcomes in these areas can be seen as local institutions take on increasing responsibility for managing the remaining reconstruction activities and assets. Cross-cutting governance and capacity building support across the portfolio has equipped local communities, civil society organizations, and governments to better manage and protect their environmental resources, plan for future spatial and community development and prepare for the possibility of future disasters. Aceh and Nias are now also better equipped to maintain and build on the investments made within the region. 42 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Chapter 4: Looking Ahead New projects are expected to boost the sustainable Quality at All Levels of the Portfolio economic development of Aceh and Nias. With the reconstruction effort drawing to a close, the need for Following up on the recommendations of the independent improving economic opportunities for the people of Aceh and external Mid Term Review (MTR) of the MDF will be a Nias has become an urgent concern of local governments. priority in the coming year. The MTR found that the MDF Activities under the new Economic Development Financing is on track in delivering results, and the key findings and Facility are expected to start implementation in Aceh, and a recommendations made were presented and discussed at new livelihoods and economic development project in Nias Technical Review Group and Steering Committee Meetings is expected to be approved, both in 2010. These projects, in November. Many of the MTR's recommendations are combined with the allocation of the last remaining MDF already being acted upon. An action plan will be developed funds are expected to contribute towards a more secure and by the MDF Secretariat, in consultation with stakeholders, to sustainable future for Aceh and Nias. respond to key recommendations of the review. Various MDF projects work to strengthen the capacity for local-level planning. Here mukim planning is supported by the AFEP project in Aceh Jaya. Photo: Mohammad Haikal As the MDF portfolio matures and projects reach completion, valuable lessons learned are emerging. The MDF is uniquely placed to identify key lessons from the post- tsunami and earthquake experience in Aceh and Nias. These can contribute to more efficient and effective recovery and reconstruction in future post-disaster responses in Indonesia and around the world. Opportunities for replication and building on successful approaches used in the MDF for the reconstruction and rehabilitation of Aceh and Nias can be instrumental for effective disaster response, both as immediate and longer term strategies. Besides building schools, the MDF supports educational activities through various projects. These include curriculum development in environmental awareness (AFEP) and disaster risk reduction (DRR-A); student and teacher training in environmental awareness and waste management (AFEP and TRWMP); and teacher training and capacity building for improved school management through SPADA. In Nias, KRRP's school improvement program not only builds schools complete with furniture, equipment and books, it also provides materials and training for students and teachers on the island's rich cultural heritage. Photos: Rajyasri Gayatri 43 MDF Progress Report December 2009 | Annexes: Project Portfolio Annexes | Project Portfolio "Working with the Aceh Department of Education, All school children aged 6-17 will receive environmental education through the AFEP-supported environment project, which is planned the Aceh Forest and Environment Project (AFEP) has for incorporation into the formal provincial education curriculum. developed and is now piloting high quality, innovative This approach aims at instilling an environmental ethic in future environmental education training tools and curricula for generations of Acehnese. use in high schools across the entire province." Photo: AFEP Project Team 44 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Annexes: Project Portfolio Funds Allocated No. Project in US $ million Recovery of Communities: 1 Community-based Settlement Rehabilitation and Reconstruction Project (REKOMPAK) 85.00 2 Community Recovery through the Kecamatan Development Program (KDP) 64.70 3 Community Recovery through the Urban Poverty Project (UPP) 17.96 4 Nias Kecamatan-based Reconstruction and Rehabilitation Planning Project (KRRP) 25.75 5 Reconstruction of Aceh Land and Administration Project (RALAS) 28.50 Recovery of Larger Infrastructure and Transport: 6 Banda Aceh Flood Mitigation Project (BAFMP) 6.50 7 Infrastructure Reconstruction Enabling Program (IREP) 42.00 8 Infrastructure Reconstruction Financing Facility (IRFF) 100.00 9 Lamno-Calang Road Maintenance Project 1.46 10 Sea Delivery and Logistics Programme (SDLP) 25.03 11 Tsunami Recovery Ports Redevelopment Programme (TRPRP) 3.78 Strengthening Governance and Capacity Building: 12 Capacity Building for Local Resource-based Rural Roads (CBLR3) 11.80 13 Support for Poor and Disadvantaged Areas (SPADA) 25.60 14 Support to Strengthen the Role and Capacities of CSOs (CSO) 6.00 15 Nias Rural Access and Capacity Building Project (RACBP)* (10.00)* Sustaining the Environment: 16 Aceh Forest and Environment Project (AFEP) 17.53 17 Tsunami Recovery Waste Management Programme (TRWMP) 39.40 Enhancing the Recovery Process: 18 Technical Assistance to BRR and BAPPENAS 22.48 19 Disaster Risk Reduction for Aceh (DRR-A) 9.87 20 Aceh Government Transformation Programme (AGTP) 13.98 21 Nias Islands Transition Project (NITP) 3.89 Economic Development and Livelihoods: 22 Economic Development Financing Facility (EDFF) 50.00 Total Allocation to Projects 601.23** * This project became effective after September 30, 2009. ** Excluding the Nias Rural Access and Capacity Building Project (US $ 10 million) that became effective after September 30, 2009. 45 MDF Progress Report December 2009 | Annexes: Project Portfolio | Recovering of Communities 1. Community-Based Settlement Rehabilitation and Reconstruction Project (REKOMPAK) The Community-Based Settlement Rehabilitation and Reconstruction Project provides grants to 130 village communities to rebuild and repair houses and rehabilitate their settlement infrastructure through a community-driven approach. Grant Amount US $ 85.00 million Implementation Period November 2005 ­ February 2010 Partner Agency World Bank Implementing Agency Ministry of Public Works Disbursements US $ 84.97 million This project supports village communities to jointly map and assess damage in their communities and identify construction needs for housing beneficiaries. The project fills remaining housing gaps in 130 village communities and it is the only project that provides support to rehabilitate damaged houses. Grant recipients will rebuild 8,004 new houses and repair 6,999 damaged houses in the 130 villages. The project also provides grants for the rebuilding of community infrastructure. Achievements to date The community-driven approach used in the project has proved effective in rebuilding houses within a limited timeframe and resulted in a strong sense of ownership from the beneficiaries. On average, more than 99% of the targeted houses have been built or rehabilitated. The occupancy rate of rehabilitated houses is 100%, while an increase in occupancy of new houses is evident over the past year and is now at 91%. All 126 targeted villages have completed their Community REKOMPAK not only builds and rehabilitates houses, but also supports community planning and supporting infrastructure such as roads, drainage and water and Settlement Plans (CSPs) and received their first installment of funds. sanitation systems. Second installments have been disbursed to 120 villages (95%), with 5 Photo: MDF Secretariat villages receiving reward funds for excellent performance. The project has also strengthened capacities for the local communities and local Results as of Sept. 30, 2009 Targets Achievements economy through various trainings related to business and technical Houses reconstructed 8,004 management. In addition, the project stimulates the local economy Complete 7,922 through job creation and encouraging the support of local businesses. Under construction 82 Houses rehabilitated 6,999 Challenges Complete 6,999 The delay in the issuance of the DIPA for the local infrastructure Under construction n/a program has posed a major challenge during this reporting period. The Community Settlement Plans 126 126 occupancy rate of the new houses, while not yet at a desired level, has Short-term employment created (work days) 7,800,535 increased to over 90%. 46 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Annexes: Project Portfolio | Recovering of Communities 2. Community Recovery through the Kecamatan Development Program (KDP) The Kecamatan Development Program (KDP) provides block grants The majority of MDF funding disbursed through KDP (more than directly to villages for community-led reconstruction. This supports the restoration of community infrastructure in over 3,000 villages 90%) has been used for infrastructure development. Funds have across Aceh and Nias. also been used to stimulate the local economy by providing micro finance, purchasing raw materials from local suppliers and hiring local communities to do the construction activities. Furthermore, the Grant Amount US $ 64.70 million project also strengthened the capacity of local communities, placing a Implementation Period November 2005 ­ December 2009 large emphasis on gender disparities. Partner Agency World Bank Implementing Agency Ministry of Home Affairs The project received a one year extension and will formally end its Disbursements US $ 64.70 million operations on December 31, 2009. Overall, the project has provided planning, training and capacity building support to over 6,000 Through the KDP, communities determine priorities regarding tertiary communities in Aceh and Nias, and approximately 3,000 villages infrastructure, as well as economic and social support needs, and funds received MDF-financed block grants. are allocated accordingly. A total of US $ 64.7 million in block grants have been transferred to sub-districts in the tsunami-affected areas. Challenges A democratic process decides which villages receive funds and what Sustainability of investments should be reinforced through operations amount is disbursed into the selected projects. KDP has a solid multi- and maintenance. With MDF funding for block grants completed, layered control mechanism to prevent corruption throughout planning it will be important to ensure that there is a smooth transition to and implementation of village projects. the nationally-funded PNPM Mandiri program which now covers all villages in the province and provides over Rp. 150 million/village for Achievements to date continued investments. Experience has shown that community-based recovery programs often yield results more quickly than top-down models, and are also more Results as of Sept. 30, 2009 Initial Targets Achievements likely to lead to sustainable solutions. Communities that are involved in Roads repaired/constructed (km) 2,412 2,424 project design feel a great deal of ownership and pride in the program. Bridges repaired/constructed (unit) 1,007 936 The Government has recognized the advantages of community-based Irrigation and drainage (km) 931 1,297 programs as a fast and flexible mechanism. Clean water projects (units) 598 845 Water storage reservoirs (units) 118 178 Sanitation units 939 826 Village level Markets 21 26 School buildings 289 304 Health clinics/posts 33 12 Value of scholarships (US $) 380,604 337,143 Number of recipients 6,052 6,074 Amount for loans (US $) 379,000 1,487,642 Number of recipients 4,045 7,001 Number of businesses/ groups 350 682 Persons employed through sub- n/a 575,352 projects Workdays generated n/a 5,053,529 Emergency relief funds (US $) 4,528,898 4,512,960 Through the KDP project, community roads, such as this one being shown off by village facilitator Safridayani, have been built in Aceh and Nias. * This data is estimated. Though data on land parcels adjudicated and community land maps produced are similar, it does not imply that all of the land parcels for which community land maps Photo: Christiani Tumelap were produced would have been titled. 47 MDF Progress Report December 2009 | Annexes: Project Portfolio | Recovering of Communities 3. Community Recovery through the Urban Poverty Project (UPP) The Urban Poverty Project (UPP) provides block grants directly to 273 Achievements to date communities to rehabilitate and develop community infrastructure in Acehnese municipalities. In general, the project has completed its activities and met most of its objectives. Overall, 99% of the grants have been implemented. The project has spent approximately 94% of its allocated funds, reaching all disaster-affected households in the target areas with Grant Amount US $ 17.96 million improved services. The project applies a planning and implementation Implementation Period November 2005 ­ December 2009 mechanism to ensure that women's needs are represented. Partner Agency World Bank Implementing Agency Ministry of Public Works Achievements in block grant implementation in many areas surpassed Disbursements US $ 17.90 million initial planned targets. The preliminary results of the women's empowerment program (P4-NAD) have been encouraging. Women Community participation is at the core of UPP activities. The project that have participated in this program have significantly improved promotes a bottom-up participatory planning approach so that capacity to direct activities, administer proposals and accountability communities themselves identify core needs for reconstruction reports and to manage relationships with other stakeholders. and the revival of economic activities in urban neighborhoods. Democratically-elected neighborhood committees and volunteers Challenges conduct damage assessments, put together community development All assets will be handed over to local governments by the program plans, and prioritize activities to be funded through the project. The end date of December 31, 2009. Ensuring that correct operations and empowerment communities experience in the process is crucial to the maintenance (O&M) measures are in place remains a challenge for success of the project. the project. To that end, the project has formulated O&M training modules, with standard operating procedures, to enhance facilitator and community awareness of O&M. Results as of Sept. 30, 2009 Achievements Roads repaired/reconstructed (in kilometers) 231 Reconstruction of bridges (in meters) 1,382 Drainage (in kilometers) 176 Clean water projects (units) 4,905 Sanitation units 405 School buildings 158 Students receiving scholarships 3,430 Value of scholarship (US $) 74,043 Health clinics/posts 29 Waste disposal facilities 806 Work days generated 1,124,126 Social Aid funds (US $) 1,218,374 Building of town/village hall 120 The Urban Poverty Program empowers women to participate in community planning and decision making. Photo: UPP Project Team 48 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Annexes: Project Portfolio | Recovering of Communities 4. Kecamatan-based Reconstruction and Rehabilitation Planning Project in Nias (KRRP) The Kecamatan-based Reconstruction and Rehabilitation Planning Progress as of Sept. 30, 2009 Targets Achievements Project in Nias (KRRP) provides block grants for the reconstruction of Project Coverage 5,000 houses, 100 schools, 100 Local Government Offices and other Number of Kabupaten 2 2 public infrastructure in Nias. Number of Kecamatan 9 9 Number of Villages/Kelurahan 123 123 Grant Amount US $ 25.75 million Houses 5000 2,592 complete Implementation Period February 2007 ­ December 2009 1,517 under construction Partner Agency World Bank Schools 100 1 complete Implementing Agency Ministry of Home Affairs through BRR 82 under construction Disbursements US $ 10.15 million Village Office Buildings 44* 4 complete 24 under construction Basic Village Infrastructure KRRP contributes to the recovery of the devastated areas in Nias 149* 7 complete (projects) through supporting local level planning and management of the 102 under construction reconstruction of communities, including the rebuilding of productive infrastructure and social services. The project builds on the KDP * Initial targets of 100 were revised. participatory planning process and strives to enhance sectoral planning of district governments. Achievements to date The project has completed its community-driven selection of beneficiaries for houses, schools and local government offices and has commenced the construction of houses in all nine sub-districts of Nias and Nias Selatan. While construction of houses, schools, village offices, and infrastructure continues to encounter problems due mainly to the remoteness of the project locations, in general housing construction has made significant progress, and work is ongoing in the construction of schools, office buildings and infrastructure. The cultural heritage program under this project participates in the school improvement program, providing more knowledge on Nias cultural heritage to students and teachers, as well as to the community in general. Challenges Reconstruction in Nias is difficult due to the remoteness of many areas, the shortage of legal timber, the general poor quality of the island's infrastructure, overall poverty and the shortage of field facilitators. Financial administrative hurdles delayed disbursement of the MDF portion of the budget and implementation was further delayed due to staffing shortages and the lack of available building materials at the start of the project. A community infrastructure project funded by KRRP under construction in Nias. Photo: MDF Secretariat 49 MDF Progress Report December 2009 | Annexes: Project Portfolio | Recovering of Communities 5. Reconstruction of Aceh Land Administration System Project (RALAS) RALAS project assisted the government in the reconstruction of the satisfactory completion of the AWP 2008 and satisfactory land property rights, development of a computerized land records management system, and reproduction of cadastral maps in post- implementation performance by the time of the May review mission. tsunami Aceh. At the time of the May review, no titles had been distributed by the program and the Partner Agency found that overall implementation performance was unsatisfactory. The Partner Agency closed the Grant Amount US $ 28.50 million project as scheduled on June 30, 2009. Implementation Period August 2005 ­ June 2009 Partner Agency World Bank Results as of Sept. 30, 2009 Initial Targets Achievements Implementing Agency National Land Agency (BPN) Total number of land title certificates to 600,000 222,628 be distributed (by December 2008) Disbursements US $ 14.81 million Total number of land titles registered in 600,000 238,758 the land book The project addressed common concerns regarding protection of Total number of land parcels publicly 600,000 272,912 notified property rights and provided training to local facilitators (including Total number of land parcels officially civil society representatives) on community-driven adjudication. In 600,000 275,945 surveyed support of the reconstruction work, RALAS assisted the National Land Total number of community land maps 600,000 317,170 Agency (BPN) in the adjudication and distribution of title certificates completed* to land owners of parcels affected by the disasters. In addition, the * This data is estimated. Though data on land parcels adjudicated and community land maps produced are similar, it does not imply that all of the land parcels for which community land maps project financed institutional development through the reconstruction were produced would have been titled. of BPN offices and worked to strengthen the capacity of the BPN land offices through automation and computerization of records. Achievements to date The Partner Agency agreed to an initial extension of the project until June 30, 2009, to facilitate an orderly project closure, and the project was closed on schedule on June 30, 2009. Overall, the project contributed modestly to restoring land rights and rebuilding land administration system in the province. Weak management, especially in the areas of oversight and direction setting, procurement, program planning, and monitoring and evaluation led to significant delays and affected overall implementation progress. As of closing a total of 222,628 land title certificates had been distributed to land holders, of which 63,181 were issued in the name of women or jointly in the name of women. Cumulatively, BPN surveyed 275,945 land parcels and notified 272,912 land parcels. Challenges The government requested a closing date extension to December 2011 and agreed upon conditions to be met by May 2009, in order for the Partner Agency to consider this extension. These conditions went beyond the title targets and included governance issues, Before it closed, RALAS provided over 220,000 land title certificates to beneficiaries in Aceh, many of them women. Satisfaction rates among beneficiaries were high. Photo: RALAS Project Team 50 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Annexes: Project Portfolio | Recovery of Larger Infrastructure & Transport 6. Banda Aceh Flood Mitigation Project (BAFMP) The Flood Mitigation Project for Banda Aceh will help protect the central business area of Aceh's provincial capital Banda Aceh against flooding. Grant Amount US $ 6.50 million Implementation Period May 2006 ­ December 2009 Partner Agency World Bank Implementing Agency Muslim Aid Disbursements US $ 5.48 million Tidal and rain flooding present a constant challenge in Banda Aceh. During the tsunami, the flood gates and pumping stations that mitigate the effects of flooding were destroyed, resulting in periodic tidal flooding of low-lying areas of the city, and leaving the reconstructed public and private assets prone to new damage. The project closely coordinates with the overall drainage and flood prevention reconstruction plan of the Municipality. It has installed rubber flood valves and restored the pumping and drainage system Community waste being collected in Banda Aceh under the livelihoods component of the Flood Mitigation Project. The motorized waste collection vehicle and the in Drainage Zone 2. waste bins were supplied through the project. Photo: MDF Secretariat Achievements to date The activities implemented by the Banda Aceh Flood Mitigation Project are substantially finished with full completion expected before Challenges the end of 2009. The project has taken strong steps to mitigate challenges. To promote sustainability of the investments made, training programs are being In early 2006, the project installed 11 flood valves to prevent tidal held for equipment operators. Flood mitigation system maintenance flooding and to drain one of the most flood-prone areas of Banda and operation has also been an integral part of the training sessions Aceh. This reduced the occurrence of flooding after rains and during provided. The project has collaborated closely with another MDF- high tide, and led to increased community satisfaction. Construction funded project, the Tsunami Recovery Waste Management Program to is complete on the three pumping stations of the main civil works promote the sustainability of proper waste management in the area. contract. All flood valve installations are done, and the remaining drainage works is expected to be completed by the end of 2009. Progress as of Sept. 30, 2009 Targets Achievements Immediate flood reduction 11 11 through flood valves Pilot waste management activities have started in several villages. Drainage system reconstructed These activities include collecting and removing household waste to Pumping stations 3 stations Complete municipal waste pick-up points. Motorized 3-wheel waste collection All flood valves Flood valves (Zone 2) Complete vehicles are used in this process, and participating communities in Zone 2 undertook a study tour with Local Government for community waste Drainage (reconstruction/ Completion 4.4km/ 12.3km rehabilitation) expected in 2009 management, composting and recycling. 51 MDF Progress Report December 2009 | Annexes: Project Portfolio | Recovery of Larger Infrastructure & Transport 7. Infrastructure Reconstruction Enabling Program (IREP) The Infrastructure Reconstruction Enabling Program (IREP) provides Achievements to date strategic planning, designs physical infrastructure and gives infrastructure implementation support, enabling the coordinated All five IREP consultant teams were mobilized by May 2007. IREP reconstruction of infrastructure in Aceh and Nias. has prepared all projects implemented by IRFF. Additionally, IREP consultants provided technical input to provincial and district governments relating to the design and implementation of Grant Amount US $ 42.00 million infrastructure projects. Implementation Period September 2006 ­ June 2010 Partner Agency World Bank IREP consultant teams continue to provide support to the IRFF Implementing Agency Ministry of Public Works program. The Management Consultants are responsible for overall Disbursements US $ 20.21 million quality assurance and monitoring and evaluation of the works. An independent Consultant firm was appointed to oversee the Financial IREP provides technical assistance at two levels: post BRR, a Liquidation Management of the project. The progress of these two teams largely team and a Supervisory Project Management Unit were formed to depends on the progress of the other three consultancy teams assist in the coordination of ongoing infrastructure activities for Aceh providing infrastructure technical support. and Nias. Technical teams design and review infrastructure at the National, Provincial and District levels, and provide implementation Challenges support. IRFF and other sources fund design implementation. The Capacity building focusing on sustainability of the IRFF projects project aims to strengthen government capacity to develop the implemented is a key area of IREP consultant activity. region through strategic planning, project design, implementation and supervision as well as operation and maintenance. IREP also ensures that investments are sustainable through continued support to Government at various levels. Consultants and the Project Team on a Supervision Mission discuss construction details and inspect works with the Contractor at the Lhokseumawe drainage project. Photo: MDF Secretariat 52 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Annexes: Project Portfolio | Recovery of Larger Infrastructure & Transport 8. Infrastructure Reconstruction Financing Facility (IRFF) The Infrastructure Reconstruction Financing Facility (IRFF) governments, and both projects support the BRR's transition strategy provides funds for key infrastructure projects identified through the Infrastructure Reconstruction Enabling Program. to progressively involve local governments so that they can eventually take on decision-making and implementation responsibilities. Achievements to date Grant Amount US $ 100.00 million IRFF utilizes local investment plans and the IREP strategy to Implementation Period March 2007 ­ June 2010 identify possible projects for implementation. Environmental Partner Agency World Bank impact assessments and associated management plans ensure that Implementing Agency Ministry of Public Works environmental safeguards are in place. All required Environmental Disbursements US $ 42.47 million Assessments have already been completed. Projects have shown significant progress over the past year with most of the sub-projects Through IRFF, the GOI gains flexibility to fund infrastructure activities, now completed and all remaining projects under construction. The launching projects with funding as soon as they prove ready. portfolio achieved 76.8% physical progress by September, 2009. Of the Infrastructure needs at the National, Provincial and District levels 53 sub-projects, 41 have been completed, with 12 projects at various are identified through the Infrastructure Reconstruction Enabling stages of implementation. Project (IREP) framework and financed by the IRFF. Both IRFF and IREP strongly emphasize capacity building for local and provincial Challenges Many natural challenges are faced by contractors in the construction of projects in Aceh and Nias, including difficult conditions in mountainous areas, rain and flooding and landslides. Contractor capacity has also been a constant challenge, leading to delays in project implementation. It is critical to ensure that the significant investments made in IRFF projects can be sustained beyond the implementation period. Number of Contracts/ Value of Projects Results as of Sept. 30, 2009 Projects (in millions) Completed: 41 US $ 91.9 National roads 5 (155.1 km) US $ 20.06 Provincial Roads 4 (63.9 km) US $ 17.41 Kabupaten Roads 20 (68.9 km) US $ 18.65 Water Systems 9 US $ 15.37 Ports 3 US $ 20.41 Under construction: 12 US $ 111.1 National roads 2 (81.4 km) US $12.80 Provincial Roads 5 (252.7 km) US $ 27.15 Kabupaten Roads 2 (84.4 km) US $ 40.09 Water Systems 2 US $ 16.20 Ports 1 US $ 14.89 At bidding stage: No projects No projects Construction work on the Lhokseumawe drainage project. Photo: MDF Secretariat 53 MDF Progress Report December 2009 | Annexes: Project Portfolio | Recovery of Larger Infrastructure & Transport 9. Lamno-Calang Road Maintenance Project The Lamno-Calang Road Maintenance Project maintained the 103 km stretch of road from Lamno to Calang from November 2006 to December 2007. The objective of the project was to ensure uninterrupted overland access to tsunami-affected communities on the west coast of Aceh, thereby facilitating the reconstruction and recovery process, and promoting social and economic recovery. Grant Amount US $ 1.46 million Implementation Period December 2006 ­ December 2007 Partner Agency United Nations Development Programme Implementing Agency United Nations Development Programme Disbursements US $ 1.46 million In 2006 the stretch of road between Lamno-Calang was in critical condition. Overloaded trucks and lack of maintenance often rendered the road impassable to traffic, especially during the rainy season. This project provided urgently needed continuous maintenance services to keep the road passable for a period of fourteen months. Achievements to date The project was completed by December 31, 2007, and a completion report was submitted. The lack of government funding, expertise and equipment resources needed to undertake this emergency maintenance work within the limited timeframe when it was needed underscores the importance of this project. The Lamno-Calang Road is the main transportation route for materials to the west coast. This project is seen as a great success, and, though relatively small, a key investment in the reconstruction and recovery process. Results at Completion December 2007 Roads graveled (km) 52 Ditch excavation and lining (km) 132 Bridge decks repaired (units) 21 Bailey bridges installed (units) 4 Short-term local labor created (workdays) 3,000 This map shows the stretch of road that was maintained under the Lamno-Calang Road Maintenance Project. Source: BRR Book Series, 2009 54 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Annexes: Project Portfolio | Recovery of Larger Infrastructure & Transport 10. Sea Delivery and Logistics Programme (SDLP) This project filled a vital need during the reconstruction by supporting the transportation of reconstruction materials and other cargo to affected areas, including remote areas of Nias and Simeulue. Over the past year, the project has moved its focus to enhancing sustainability of the investments through comprehensive training programs and logistics support. Grant Amount US $ 25.03 million Implementation Period February 2006 ­ February 2010 Partner Agency World Food Programme Implementing Agency World Food Programme Disbursements US $ 25.03 million From 2005 to the first quarter of 2007, the primary goal of the project was to coordinate the transport and shipping of reconstruction materials, and SDLP provided a full shipping service for reconstruction As part of its cargo handling activities, manitous are used to move containers at ports where the SDLP is working. materials. However, now that the shipping of goods has transitioned Photo: Peter Holtsberg to the commercial sector, the project focuses on providing logistics support and ports trainings. The project offers logistics support and consulting services to private sector and humanitarian organizations Achievements to date operating in the NAD-Nias area. Currently, SDLP focuses on providing Transportation of goods to remote destinations throughout the logistics support and training for key staff at various ports to ensure affected areas, including beaches in Nias and Simeulue, has been continued effective operation of those investments. a major benefit of this project. The project transported a total of 98,185 mt/ 256,006 m³ of relief and reconstruction cargo from its inception in 2006 to March 2007. The project has now shifted focus to training programs that build Shipping Service Logistics Services Progress as of September 30, 2009 necessary skills to continue the work done to date. Training modules in (until March 2007) (from 2007) Number of agencies using shipping administration and support functions to the ports have been developed services 25 users 25 users based on international curricula and training sessions commenced on International Red Cross Agencies 51% 0.29% BRR 0% 0.14% the 16th December 2008. This component of the program complements UN Agencies 24% 0.14% the reconstruction of ports in Aceh and Nias through other Multi Donor Other NGO/reconstruction agencies 18% 1.14% Government 0.2% 0% Fund projects. Training is delivered with links through the University of Private Sector 0.1% 96.90% Syiah Kuala, whose aim is to include certain modules of the training Other 6.7% 1.49% into their Master's Business degrees and BKPP. Reconstruction materials shipped 98,185 mt n/a (until Dec 2006, metric tons) Monitored commercial cargo Since October Challenges 1,172,930 mt The training program, now in full implementation, works to meet movement 2006 Port Management Training sessions the challenge of ensuring proper and adequate maintenance and n/a 92 held operational safety of the ports and heavy equipment once these assets are transferred to the relevant authorities. 55 MDF Progress Report December 2009 | Annexes: Project Portfolio | Recovery of Larger Infrastructure & Transport 11. Tsunami Recovery Port Redevelopment Program (TRPRP) This project provided physical designs and further technical support communities and representatives of local fishermen and other sea for the reconstruction of major sea ports and one river port in Aceh and Nias. related stakeholders. Achievements to date This project carried out assessments and studies of sea ports in Calang, Grant Amount US $ 3.78 million Meulaboh, Sinabang and a river port in Lamno, as well as the redesign Implementation Period March 2006 ­ December 2007 of these ports. In Gunung Sitoli the project reviewed a previous Partner Agency United Nations Development Programme design so that works could be tendered. Temporary wharves in Calang Implementing Agency United Nations Development Programme and Sinabang were completed, enabling better docking conditions Disbursements US $ 3.78 million and storage of cargo. All works for this project were completed by December 2007. This project focused on the reconstruction effort through preparing detailed designs, environmental impact assessments and economic Results at Completion Targets December 2007 feasibility studies for port reconstruction on the North and West coasts Roads graveled (km) 5 5 of Aceh. The project also improved the functionality of several ports Functionality of Ports improved through minor rehabilitation works and the construction of temporary Land sites 2 2 wharves. All activities were coordinated with the BRR, the Provincial, District and Municipal Agencies for Transport, and the Department Temporary wharves 1* 2 of Sea Communications, and complemented work done in other * Scope was reduced (no works in Balohan) since local government had taken up the works. ports of Aceh. Activities were also based on close consultation with Many ports were badly damaged or destroyed after the tsunami and earthquakes, making the delivery of construction materials and supplies to affected areas challenging. Here a WFPSS Landing Craft is used for deliveries to Lafakha, Simeulue. Photo: Syariful A. Lubis 56 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Annexes: Project Portfolio | Strengthening Governance and Capacity Building 12. Capacity Building for Local Resource-based Rural Roads (CBLR3) This project builds capacities of local governments and contractors methods. Contracting the local work force and using appropriate road to reconstruct and maintain roads with low-tech methods. It rehabilitates district roads in five districts in Aceh and Nias, drawing technologies and work methods will enable contractors to compete on local resources, creating short-term and long-term employment for road construction and maintenance works during the recovery opportunities. process and beyond. Grant Amount US $ 11.80 million Achievements to date Implementation Period March 2006 ­ December 2009 The project is making good progress in enhancing the capacity Partner Agency United Nations Development Programme of district Public Works and local small scale contractors. Local Implementing Agency International Labor Organization Resources-based Road Works methods generate employment in local Disbursements US $ 11.80 million communities and strengthen local governments' and contractors' capacity to rehabilitate and maintain their rural roads. The project This project trains local governments to effectively manage the also maintains roads funded by PWD and BRR located on the same reconstruction and maintenance of district level roads, and small networks in Nias and Nias Selatan. contractors to build roads with cost-effective local resource-based On-the-job training activities continue, and formal training programs were conducted during this year with technical and social facilitators on planning, managing and implementing road maintenance at the community level. In addition to promoting gender equality in contracts and agreements, the project endeavors to create a conducive environment for the participation of women. Challenges As this is a capacity building project, the full impact of the Project's activities will become evident over a longer period than the project duration. Policy-level deliverables can be affected on a gradual basis, while sustainability is subjected to a longer project timeframe. However, the project has met with enthusiasm from both government and contractors. Results as of Sept. 30, 2009 Targets Achievements Total roads rebuilt/maintained 98 Completed 83.6 Under Construction 19.9 Number of community road supervisors 50 25 trained Short-term employment created 300,000 (days) 240,764 - % of women (Aceh) 28.2% - % of women (Nias) 34.6% The Capacity Building for Local Resource-based Roads project in Aceh and Nias uses small local contractors and local resources to construct and maintain roads in the area. Photo: ILO Project Team 57 MDF Progress Report December 2009 | Annexes: Project Portfolio | Strengthening Governance and Capacity Building 13. Support for Poor and Disadvantaged Areas (SPADA) The Support for Poor and Disadvantaged Areas Project (SPADA) strengthens district government capacity to incorporate bottom-up (village, sub-district and inter-sub-district) planning and needs analysis into district planning and budgeting. SPADA links the participatory sub-district planning process of PNPM Mandiri Perdesaan to district government decision-making, and provides block grants to improve public services and the recovery of basic infrastructure. Grant Amount US $ 25.60 million Implementation Period February 2007 ­ June 2010 Partner Agency World Bank Ministry for Development of Disadvantaged Areas Implementing Agency (MinDA) Disbursements US $ 9.24 million This project provides block grants to districts in Aceh and Nias to fund projects identified for sub-districts through the KDP/PNPM mechanism. SPADA aims at strengthening the capacities of district SPADA works with communities to identify and fill priority construction needs, including health service centers like this one. governments. and promoting economic development through Photo: MDF Secretariat infrastructure investments. Achievements to date Challenges In general, SPADA block grants complement local government Delays in release of the state budget (DIPA) prevented disbursements resources for health and education, and link community needs with from January until after the DIPA was released on August 14, affecting local government priorities. Districts report improved health of project implementation. The World Bank continues to work with young children and mothers in some SPADA locations. Infrastructure relevant entities to minimize possible future delays in the issuance of projects create access to water, markets, health, education and other the DIPA. communities and improve the livelihoods of many. The participatory process accompanied by technical assistance helps build capacity of communities, local governments and consultants. And several local governments have adopted regulations to integrate the SPADA participatory planning mechanism into their regular planning process. Routine supervision during this reporting period indicated that significant progress was made in disbursement of funds. Funds management personnel in the field received training during the past year to strengthen accounting, reporting, documentation and internal controls related to planning grants and block grants. Knowledge and skills gained from the training have been applied to improve financial procedures and report preparation for the project. 58 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Annexes: Project Portfolio | Strengthening Governance and Capacity Building 14. Support to Strengthen the Role and Capacities of Civil Society Organizations (CSO) This project builds technical and organizational capacities of Non- Civil Society Resource Centers (CSRCs) in Aceh and Nias act as focal Governmental Organizations and Community-based Organizations in Aceh and Nias. Small grants enable NGOs and CBOs to engage in points for activities, exchange, training, and dialogue with the local demand-oriented reconstruction activities. governments and civil society. Civil Society Organizations (CSOs) participate in training and compete for small grants that can be used either for monitoring reconstruction activities or as community development grants. Through these grants, the project can support Grant Amount US $ 6.00 million initiatives such as re-building basic social services and income Implementation Period February 2007 ­ June 2010 generating activities. Partner Agency United Nations Development Programme Implementing Agency United Nations Development Programme Achievements to date Disbursements US $ 6.00 million The establishment of resource centers (one in Aceh and one in Nias) has enabled civil society and organizations to more effectively communicate their individual or institutional needs, and the community now has a platform where they are formally able to request assistance. The small grants issued have resulted in social facilities that benefit the whole village, including early childhood facilities in Nias and Aceh and a public well in Nias. Small grants have also facilitated increases in income in communities through various economic activities such as goat farming, local wood-waste handicraft production and chili farming in Aceh and cocoa farming and pig farming in Nias. A number of women's initiatives have been supported by the CSO project, including sewing cooperatives in Aceh. The women describe an increase in self-confidence as they have been able to secure additional income from their activities and as they now have means to engage with their groups in meaningful and productive ways. Challenges The challenge to promote sustainability of the centers by fostering a close link between CSRC and the CSOs still continues. Ongoing funding after the program closes remains a concern, and the program is looking at means of generating funds to continue the operation of the centers. Results as of Sept. 30, 2009 Achievements Small grants provided/value of grants 141/ US $ 2,677,463 Beneficiaries of livelihood grants 33,398 (14,764 women) CSRC staff trained (training of trainers) 83 (25 women) CSO staff trained 1,100 (324 women) Small grants to women's groups allow many women in Aceh and Nias to resume income-generating activities. Photo: MDF Secretariat 59 MDF Progress Report December 2009 | Annexes: Project Portfolio | Strengthening Governance and Capacity Building 15. Nias Islands Rural Access and Capacity Building Project (RACBP) RACBP focuses on the cost-effective and durable improvement of the rural transport network in selected economic clusters, through the rehabilitation, reconstruction and maintenance of core road links. Grant Amount US $ 10.00 million Implementation Period October 2009 ­ June 2012 Partner Agency International Labor Organization Implementing Agency International Labor Organization Disbursements No Disbursements The RACBP aims to improve and sustain access to strategic rural roads in order to develop economic and social services and facilities for communities in the targeted clusters. The project's cultural heritage sub-component seeks to enhance public awareness and ownership, facilitate sustainable public utilization and preservation of Nias Islands' unique cultural heritage assets, and to preserve traditional construction techniques. The project maximizes economic benefits to the selected economic clusters through strategically targeted and durable rural access improvements, and applies Local Resource-based approaches in the design and implementation of the construction and maintenance works. Capacity building and on-the-job training are key elements of RACBP. Achievements to date The project was approved by the MDF Steering Committee in September 2009, and the Fiscal Agency Agreement between the Partner Agency and the Trustee of the MDF was signed in October. The project is in start-up phase, preparing for implementation. Challenges The project will be working with newly-formed district governments, and the capacities of these will need to be strengthened. In the design of RACBP, continued support and cooperation from BAPPEDA, District- level PWD and the involved communities has been assumed. Natural disasters could pose a risk to the Project in terms of interrupted access to the construction sites or damage to the construction works. ILO will work with local communities in Nias to construct and maintain community roads similar to the road pictured here under the ILO project in Aceh. Photo: ILO Project Team 60 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Annexes: Project Portfolio | Sustaining the Environment 16. Aceh Forest and Environment Project (AFEP) The Aceh Forest and Environment Project (AFEP) helps protect Aceh's Achievements to date Leuser and Ulu Masen forest ecosystems from illegal logging. The protection of this 3.3 million hectare area will safeguard not only the The project has continued to scale up its core activities including water supply of approximately 60% of Aceh's population but also monitoring and reporting illegal forest activities, training and Southeast Asia's richest remaining source of biodiversity. equipping forest and community rangers, mitigating human-wildlife conflicts, and strengthening partnerships with the Forestry Service, Grant Amount US $ 17.53 million Conservation Service, police, local NGOs and forest communities. Implementation Period February 2006 ­ June 2010 Through the efforts of AFEP and other partners, the formation of a Partner Agency The World Bank cohesive forest management network is beginning to take shape in Leuser International Foundation (LIF); Fauna and Implementing Agency Aceh. Developing joint activities has generated positive results with Flora International (FFI) Disbursements US $ 12.19 million the police, the Aceh Green and TIPERESKA initiatives, the Forestry Service and other partners. In particular, the project has achieved The Aceh Forest and Environment Project (AFEP) works in Aceh's success in translating its illegal logging field monitoring reports into Ulu Masen and Leuser ecosystems to protect critical environmental on-the-ground action by other actors. resources and services. The project aims to mitigate the negative impacts of reconstruction on the forests of Aceh, mainstream The project has developed a curriculum and materials on environmental environmental concerns into Aceh's overall planning process, and awareness for schools, trained teachers, and established student eco- build sustainable capacity and institutions for forest protection. clubs with over 6,100 members across Aceh. At the community level Protection is based on a multi-stakeholder governance framework, the project has supported village and mukim-level spatial planning forest monitoring and sustainable forest management. The project processes and initiated community nurseries to improve sustainable builds capacity of government forest and park management agencies tree-crop based livelihoods. and also strengthens community awareness and capacity to monitor and protect forest resources. The project also works to protect and In November 2009 the project completed analysis of forest monitoring improve livelihoods of communities in the forest areas through data showing changes in forest cover across Aceh since 2006. This mitigating human-wildlife conflicts and supporting specific livelihood data is used to support the Government of Aceh in its reporting on development activities. the status of Aceh's forests. A large animal survey was also completed during 2009. Challenges The project operates in a dynamic and complex context with many forces contributing to continued problems with forest degradation and illegal logging, as in other forest-rich provinces in Indonesia. Aceh's forests are the focus of global attention for their biodiversity and carbon stocks. The project will continue to forge strategic partnerships at all levels in this changing context in order to optimize its impact. A key challenge is continuation of the project's activities supporting the government's forest management efforts beyond 2010. AFEP has requested additional funds to carry on its work until 2012 in order to concentrate on strengthening institutional capacity to protect and sustainably manage Aceh's forest resources in the future. The Aceh Forest and Environment Project supports community nurseries to assist in the development of sustainable alternatives to illegal logging as a means of livelihood. Photo: Chik Rini 61 MDF Progress Report December 2009 | Annexes: Project Portfolio | Sustaining the Environment 17. Tsunami Recovery Waste Management Programme (TRWMP) The Tsunami Recovery Waste Management Programme builds capacity 30% of this has been recycled with the remainder being properly in local government to clear, recycle and dispose of tsunami waste; implement sustainable waste management systems that benefit the disposed. environment through the collection, recovery, recycling and safe disposal of waste materials; and incorporate cost recovery through the Challenges promotion of waste management-related livelihoods. Ensuring the sustainability of the operation and maintenance of the Grant Amount US $ 39.40 million solid waste collection systems remains the major challenge. This is Implementation Period December 2005 ­ December 2010 compounded by the fact that the district-level decision makers have Partner Agency United Nations Development Programme not adequately budgeted for the operation and management of waste Implementing Agency United Nations Development Programme management activities for 2009. Disbursements US $ 24.41 million Results as of Sept. 30, 2009 Targets Achievements Tsunami generated waste cleared (cubic TRWMP, a recovery project, focuses on tsunami waste collection and 1,000,000 1,132,863 meters) land clearance, municipal solid waste management and creation of Municipal waste collected (cubic meters) 300,000 288,155 sustainable waste management livelihoods, which are highly important Number and size of interim landfills 10 (24ha) 10 (26 ha) preliminary conditions for the recovery of the area. This pioneering (waste cells in hectares) Agricultural land cleared & reinstated (in initiative highlights a sector that has so far received insufficient 3,000 891 hectares) attention in Indonesia. Beneficiaries temporarily employed in waste management Livelihoods (# of 800 536 (148) women) Achievements to date Number of SMEs with sustainable Phase 1 of the project began with US $ 14.4 million marked for disaster livelihoods created in Waste n/a 140 recovery activities, including creating immediate employment, Management sector restarting essential services, clearing debris and recovering recyclable Households paying for household or community waste collection (percent per n/a 9% materials for use during the rehabilitation and recovery process, as district) well as resuming municipal waste collection across eight districts in NAD-Nias to reduce potential environmental and health-related risks. During Phase 2 (effective September 2007), the program aimed to safeguard investments by building sustainability into program interventions with an additional US $ 9.98 million grant to extend the project to the end of 2009 and expand to a total of 13 districts. Phase 3 for US $ 15 million currently extends the project to the end of 2010 and enables construction of three priority permanent landfills together with limited essential rehabilitation works elsewhere. The program continues to be relevant, running well and delivering on its development objectives. Currently, 1,377 households are able to restart cultivation on agricultural land cleared of tsunami waste. Ten interim landfills/dumpsites have been upgraded or rehabilitated with more than 26 hectares of waste cells constructed. To date more than 288,155 m³ of municipal waste has been collected. Approximately Water sampling in Sabang to test pollution levels. Tests are done regularly to monitor the effects of proper waste disposal in areas where sanitary landfills are being rehabilitated or constructed. Photo: TRWMP Project Team 62 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Annexes: Project Portfolio | Enhancing the Recovery Process 18. Technical Assistance to BRR and BAPPENAS The Technical Assistance to BRR Project supports the BRR to efficiently to BRR Project, and has supported RENAKSI development. A team implement its mandate to plan, implement, supervise and coordinate the recovery process through providing technical support and key of 13 technical assistants (TAs) will contribute to accomplishing the services. It also provides critical support during the transition period of mandates of the Steering Committee by December 2009. In particular BRR's exit scheduled for April 2009. the TAs will provide technical assistance for managing national and international resources, as well as planning and monitoring Grant Amount US $ 22.48 million rehabilitation and reconstruction activities in affected areas. Implementation Period July 2005 ­ December 2009 Partner Agency United Nations Development Programme The project has also held 15 SIMBADA training sessions in the NAD Implementing Agency Up to April 2009, BRR, now BAPPENAS Province and 25 districts within NAD-Nias. The trainings aim to Disbursements US $ 22.48 million enhance the capacities of local government to operate and maintain the SIMBADA system, and the SIMBADA applications are currently This project was extended from June 1, 2009 to December 31, 2009 under implementation. EIA project support to BAPPEDA continues in late May 2009 and was renamed TA to BRR & BAPPENAS (which to progress, and the EIA assessments are expected to be conducted BAPPENAS internally refers to as TA to R2C3). The amended TA to BRR in the next months. Similarly, support to the KNOW Center has been & BAPPENAS will finalize BRR mandates and facilitate the transition ongoing. of BAPPENAS' coordination role as head of the BKRAN, one of the agencies established to carry on BRR's work based on Presidential Challenges Decree 3/2009. TA to BRR and BAPPENAS closes on Decemeber 31, 2009. The project is working with BAPPENAS to develop the scope of TA activities to Achievements to date ensure continued support to BAPPENAS in its coordination role. Other The project's support has contributed to the enhancement of tasks during this relatively short period include: (i) to safeguard the BAPPENAS' capacities to develop policies and programs and to transition phase from BRR to the respective local government, ensuring monitor and complete rehabilitation and reconstruction activities after a smooth transfer of responsibilities, and (ii) to develop a Policy the closure of BRR. To date, the project has overseen and facilitated Framework Recommendation on Post Reconstruction Accelerated commencement of the BKRAN/Steering Committee's provision of Development for Aceh and Nias. The short implementation period technical support. It has continued activities started under the TA requires a well thought out and executed work plan. With funding from the MDF through the Technical Assistance to BRR and BAPPENAS project, the BRR published this book series documenting the lessons learned from the reconstruction. Photo: MDF Secretariat 63 MDF Progress Report December 2009 | Annexes: Project Portfolio | Enhancing the Recovery Process 19. Disaster Risk Reduction - Aceh (DRR-A) DRR-A is designed to make disaster risk reduction (DRR) a normal part Achievements to date of the development process established in core functions of Aceh's local government and their public and private partners, especially in Although some planned activities were not achieved during this Aceh's local communities where the most effective and direct actions period, several foundation activities have been initiated. The DRR-A can be taken to reduce physical, economic and social vulnerability to project assisted the Aceh Government to draft the Qanun to establish disasters. the Province Disaster Management Authority (BPBD). The Aceh Grant Amount US $ 9.87 million Government declared the establishment of BPBD through Pergub Implementation Period November 2008 ­ December 2011 102/2009, but endorsement process for this is ongoing. The project Partner Agency United Nations Development Programme also supported the local government to develop the Local Action Plan Ministry of Home Affairs and Provincial on DRR, and provided technical and financial support to successfully Implementing Agency Government of Aceh organize the Indian Ocean Wave 2009. DRR-A also provided support Disbursements US $ 5.00 million to the Aceh Government to initiate the establishment of the Aceh Platform for DRR. Training on DRR has been scheduled for the end of The DRR-A project strives to make disaster risk reduction a normal part the year, with participants expected from both Government and non- of the local level development process established in core functions of government agencies. Aceh's local government agencies, its public and private partners, local communities and families with due regard for the different capacities, Challenges needs, and vulnerabilities of the population. DRR-A will establish Information on disaster risk reduction (DRR) is still not readily available institutional arrangements and an enabling environment to facilitate and there is no central database where disaster-related information participatory implementation of disaster risk reduction, involving and guidelines can be found, nor is there clear understanding of DRR established local institutions and using public awareness programs within local institutions. Issues remain on channeling funds from the and gender sensitive projects. Central Government to TDMRC for its activities under DRR-A. Evacuation drill in Banda Aceh during a test of the Tsunami Early Warning System. Photo: Fahmi Yunus 64 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Annexes: Project Portfolio | Enhancing the Recovery Process 20. Aceh Government Transformation Programme (AGTP) The Aceh Government Transformation Programme provides strategic Achievements to date and essential support to the transition by ensuring that the provincial government has the necessary capacity and institutional strength to AGTP led a major reform in the local government budget process, take over projects, assets, functions, capacities and resources from contributing to this year's budget approval in January 2009. Improved BRR and other reconstruction and recovery programs at the end of public expenditure flows require solid anti-corruption measures, and their mandate. AGTP has worked with the Corruption Eradication Agency (KPK) and Grant Amount US $ 13.98 million the Financial Transaction Reports and Analysis Centre (PPATK) to Implementation Period July 2008 ­ December 2011 improve processes in support of anti corruption. The project has also Partner Agency United Nations Development Programme supported the Aceh Government to further extend anti-corruption Implementing Agency Provincial Government of NAD awareness raising through education by integrating anti-corruption Disbursements US $ 9.92 million curricula in schools. All guidelines for asset transfer have been drafted and approved. The project supports BKRA operations and the AGTP provides support to provincial and local governments as they development of a master plan for reconstruction activities from 2010 take over responsibilities of the reconstruction and rehabilitation to 2012. process after the closure of BRR. The Aceh Government Transformation Programme (AGTP) focuses on strengthening the capacity of the Challenges provincial government through support to policy making, the local Newly-formed provincial governments present particular challenges government budget process, the transfer of assets to local institutions for the AGTP. Ancillary regulations that spell out procedures for and anti corruption initiatives. transferring grant funds from the national government to regional government have not yet been developed. In addition, there is a lack of institutional capacity in the local government agencies to implement large amounts of funds. Local government employees sit for an examination on procurement procedures. Photo: NITP Project Team 65 MDF Progress Report December 2009 | Annexes: Project Portfolio | Enhancing the Recovery Process 21. Nias Islands Transition Programme (NITP) NITP aims to enhance district capacity to successfully complete Achievements to date the recovery process and manage ongoing local government responsibilities, applying best practices that improve governance and The first round of transfer of asset identification and location systems reduce risks from future natural disasters. from BRR is under way, and systems have been identified and installed. Although assets are being used by the local government, the full transfer process is not yet complete. The first course of intensive Grant Amount US $ 3.89 million training on asset transfer for government staff has been held, and Implementation Period April 2009 ­ March 2012 further training is planned. Scheduled assistance to the BKRN has Partner Agency United Nations Development Programme been delivered, but capabilities relating to budgeting, monitoring and Provincial Government of North Sumatra and Implementing Agency evaluation still need strengthening. Trainings in financial management district governments in Nias Disbursements US $ 2.5 million have also commenced. The NITP builds on the work of BRR and other rehabilitation Challenges and construction support projects to facilitate the transition A strong commitment from government to allocate sufficient funds for from implementation to ongoing recovery. The NITP supports the operations and maintenance of assets is required. The technical implementation of GOI funded activities at the provincial and district assistance provided by NITP has allowed the agency to start carrying levels as well as the development and implementation of pro-active out its core functions, but significant resources will be required from disaster risk reduction (DRR) in the responsible GOI structures and the national government to ensure sustainability in Nias. supporting NGOs. The majority of project work is dedicated to capacity building, especially relating to the transfer of assets to the relevant authorities. NITP provides training for local government staff in South Nias on the Public Asset Information System (SIMBADA). Photo: NITP Project Team 66 Five Years after the Tsunami: Continuing the Commitment to Reconstruction | Annexes: Project Portfolio | Economic Development and Livelihoods 22. Economic Development Financing Facility (EDFF) The Aceh Economic Development Financing Facility will support sub- Achievements to date project initiatives for the economic development of Aceh and provide assistance in project management and capacity building. The Grant Agreement for EDFF was signed on December 30, 2008 and the project became effective on March 30, 2009. The Government of Aceh has continuously supported the project through co-financing and linking to related technical agencies in order to build project ownership Grant Amount US $ 50.00 million early on. Project implementation was delegated to the provincial Implementation Period March 2009 ­ June 2012 government. To date the major achievements are in the capacity Partner Agency The World Bank building component of the project, which is already showing results. Ministry for the Development of Disadvantaged Implementing Agency The model for using strong economic evaluation criteria to select sub Areas (KPDT) and Government of Aceh Disbursements US $ 5.00 million projects helped set a standard for designing and deciding on economic development projects. The EDFF promotes post-tsunami economic recovery and fosters sustainable equitable long-term economic development in Aceh in line Challenges with the Government of Aceh's own plans for economic development. The late release of the budget note (DIPA) and the restrictions placed The project aims to build a more competitive and supportive business on it are causing serious delays to project implementation. The environment necessary to create broad based private sector job implementing agencies and the World Bank continue working together opportunities and growth, targeting the poor and other vulnerable with the Ministry of Finance to solve this issue. groups. The project will provide sub-grants to create opportunities for private sector job creation and growth. The Government of Aceh has been actively involved in implementation of the EDFF, participating in regular project coordination meetings with consultants. Photo: EDFF Project Team 67 MDF Progress Report December 2009 | Acronyms and Abbreviations List of Acronyms and Abbreviations ACAP Anti-Corruption Action Plan LIF Leuser International Foundation AFEP Aceh Forest and Environment Project MDF Multi Donor Fund for Aceh and Nias AGTP Aceh Government Transformation Programme MTR Mid-Term Review BAFMP Banda Aceh Flood Mitigation Project NAD Nanggroe Aceh Darussalam BAPPEDA Badan Perencana Pembangunan Daerah (Regional NGO Non-Governmental Organization Government Planning Board) Nias-LEDP Nias Livelihoods and Economic Development BAPPENAS National Development Planning Agency Project BKPP Badan Kepegawaian Pendidikan dan Pelatihan NITP Nias Islands Transition Project (Provincial Training & Human Resource Agency O&M Operations and Maintenance BKRA Coordinating Body for the Sustainability of OECD-DAC Organization for Economic Cooperation and Reconstruction in Aceh and Nias at Aceh Provincial Development - Development Assistance Level Committee BKRAN Coordinating Body for the Sustainability of P4-NAD Program Penguatan Partisipasi Perempuan - Reconstruction in Aceh and Nias Nanggroe Aceh Darussalam (Women's Participation BKRN Coordinating Body for the Sustainability of Empowerment Program - Nanggroe Aceh Reconstruction in Aceh and Nias covering Nias at Darussalam) North Sumatra Provincial Level PAD Project Appraisal Document BPBD Province Disaster Management Authority PCN Project Concept Note BPKEL Badan Pengelola Kawasan Ekosistem Leuser (Aceh Pergub Peraturan Gubernur (Governor's Regulation) Conservation Agency) PNPM Projek Nasional Pengembangan Masyarakat BPN Badan Pertanahan Nasional (National Land PPATK Pusat Pelaporan dan Analisis Transaksi Keuangan Agency) (Financial Transaction Reports and Analysis Centre) BRR Agency for the Rehabilitation and Reconstruction PWD Public Works Department of Nanggroe Aceh Darussalam ­ Nias (Badan Qanun Aceh Local Regulation Rekonstruksi dan Rehabilitasi NAD-Nias) RACBP Nias Islands Rural Access Capacity Building Project CBLR3 Capacity Building for Local Resource-based Rural RALAS Reconstruction of the Aceh Land Administration Roads System Project CDP Community Development Plan RAP Recovery Assistance Policy CFAN Coordination Forum Aceh-Nias REKOMPAK Community-based Settlement Rehabilitation and CRU Community Response Units Reconstruction Project CSO Civil Society Organization RENAKSI Rencana Aksi (Action Plan) CSP Community Settlement Plan SDLP Sea Delivery and Logistics Programme CSRC Civil Society Resource Center SIMBADA Sistem Informasi Barang dan Aset Daerah (Public CSRRP Community-based Settlement Rehabilitation and Asset Information System) Reconstruction Program SPADA Support for Poor and Disadvantaged Areas Project DFID Department for International Development of the SSR Social Sustainability Review United Kingdom TA Technical Assistance DIPA State budget execution document TA to BRR and BAPPENAS DRR Disaster Risk Reduction Technical Assistance to Badan Rehabilitasi EC European Commission dan Rekonstruksi NAD-Nias and the National EDFF Economic Development Financing Facility Development Planning Agency EIA Environmental Impact Assessment TA to BRR Technical Assistance to Badan Rehabilitasi dan ESR Environmental Sustainability Review Rekonstruksi NAD-Nias FFI Fauna and Flora International TDMRC Tsunami Disaster and Mitigation Research Center GOI Government of Indonesia TIPERESKA Aceh Forest Redesign Team ILO International Labour Organisation TRPRP Tsunami Recovery Port Redevelopment IREP Infrastructure Reconstruction Enabling Program Programme IRFF Infrastructure Reconstruction Financing Facility TRWMP Tsunami Recovery Waste Management KDP Kecamatan Development Project Programme KNOW Knowledge Management Center UK United Kingdom KPK Anti-Corruption Commission UNDP United Nations Development Programme KRRP Nias Kecamatan-based Reconstruction and UPP Urban Poverty Project Recovery Planning Project WFP World Food Programme 68 Republic of BRR Indonesia European Netherlands United Kingdom Commission Canada World Bank Sweden Norway Denmark Germany Belgium Finland ADB United States of New Zealand Ireland America www.multidonorfund.org