53337 MULTI DONOR FUND FOR ACEH AND NIAS Three Years After the Tsunami Delivering Results, Supporting Transition PROGRESS REPORT IV DECEMBER 2007 Winners of the 2007 Multi Donor Fund Photo Competition Livelihood opportunity- trash picker at Gampong Jawa (1st Winner) The Tsunami Recovery Waste Management Program, implemented by UNDP and Dinas DKP Banda Aceh, registers trash pickers to allow them to select recyclable trash I Gampong Jawa landfill. Since the start, this project has employed an average 962 temporary workers per day. (Photographer: Fakhrurazi, Program Assistant UNDP) Taking a raft to school (2nd Winner) Kids in uniform at Binjai village in Aceh Tamiang wait for a raft to cross the river funded by the Kecamatan Development Program (KDP). Now they do not need to swim to go to school. With support from KDP, communities have rebuilt 864 bridges in Aceh and Nias. (Photographer: Siti Rahmah, World Bank Consultant) Boy scooping water (3rd Winner) A child scoops water from a water supply system built with the help of the Kecamatan Development Project in Aceh Barat Daya. With support from KDP, communities have rebuilt 588 clean water systems in Aceh and Nias. (Photographer: Milena Seibold, World Bank Consultant) MDF OFFICE JAKARTA Indonesia Stock Exchange Building Tower II/12th Fl. Jl. Jend. Sudirman Kav. 52-53 Jakarta 12910 Tel: (6221) 5299-3000 Fax: (6221) 5299-3111 www.multidonorfund.org Printed in 2007 This volume is a product of the Multi Donor Fund. Multi Donor Fund for Aceh and Nias Three Years After the Tsunami Delivering Results, Supporting Transition PROGRESS REPORT IV DECEMBER 2007 Acknowledgements This report was prepared by the Secretariat of the Multi Donor Fund with contributions from the Partner Agencies (UNDP, WFP, and the World Bank) as well as the project teams. The Multi Donor Fund Secretariat team is led by the MDF Manager Christian Rey, with team members: Sarosh Khan, Safriza Sofyan, Georgia Wimhöfer, Bowen Uhlenkamp, Lanny Oktavia, Faisal Siddik, Nia Sarinastiti, and Geumala Yatim.The team is supported by Rahayu Novianty, Inge Susilo and Rachmawati Swandari. Concrete education The rice farming area in Cot Mane village, Baktiya, North Aceh previously relied on rain water as source of water. Through the Kecamatan Development Project, villagers have built a concrete system irrigation at a cost of Rp. 172.5 million to increase production capacity. (Photographer: Siti Rahmah, World Bank Consultant) Message from the Co-Chairs of the Multi Donor Fund The Co-Chairs of the Multi Donor Fund for Aceh and Nias are proud to report that the partnership of the Government of Indonesia, through the Reconstruction and Rehabilitation Agency (BRR), and the international community has resulted in significant progress as we reach the end of the third year of the tsunami recovery efforts. When it was set up in May 2005, the Multi Donor Fund was considered distinctive. The distinction was not just being able to attract commitments from 15 donors, but also to align them to the Government of Indonesia's program with enhanced coordination. Our goal was clear: to provide grants for quality investments that are based on good practice, stakeholder participation and coordination to fill critical gaps in the recovery. Looking back on two and a half years, we believe that the strong commitment of all parties ­ the National Government, the Governments of the Aceh and North Sumatra Provinces, the Donors, international non- government, and international and civil society organizations­ has allowed the Multi Donor Fund to fulfill the expectations of its stakeholders. It has contributed significantly to the goals of the Paris Declaration on Aid Effectiveness: creating ownership, alignment with country priorities, harmonizing donor programs and managing for results. The Multi Donor Fund not only strives to ensure the quality of projects that are being represented in this report, but also that its results are demand oriented through a consequent engagement of all relevant stakeholders. This helps ensure that achievements will have beneficial impact to communities in Aceh and Nias. As we look forward to the years to come, we acknowledge the need to even further increase our engagement with the Provincial and District Governments, while continuing our collaborative relationship with BRR throughout transition and the closure of the Agency. We believe that this will make the Multi Donor Fund remain a strong player in the reconstruction and rehabilitation for Aceh and Nias. Dr. Kuntoro Ir. Irwandi Yusuf Joachim von Amsberg Jean Bretéché Mangkusubroto Governor NAD World Bank European Commission BRR Multi Donor Fund Progress Report IV 2007 i Patroling The Leuser Ecosystem to safe the forest The Aceh Forest and Environmental Project supports the Aceh Tamiang Forest Protection & Monitoring Unit that conducts rounds to protect the forest. The project has trained over 1,000 forest monitors. (Photographer: Muhammad Rivai, staff of Leuser International Foundation) Contents Message from the Co-Chairs of the Multi Donor Fund i Contents iii Executive Summary 1 A Strong Partnership 1 Enhancing Coordination 1 Key Achievements from May 2005 to September 2007 2 Ongoing Challenges for Project Implementation 4 Financial Status of the Multi Donor Fund 4 Transition and Safeguarding of Reconstruction Investments 5 Chapter 1 Success Factors of the Multi Donor Fund Operations 7 Working with the Government 7 Enhancing Coordination of the Recovery Process 8 Two-way Communication to Beneficiaries 8 Managing for Results 9 Coordination on the Ground 9 Chapter 2 Sectoral Achievements Until September 2007 11 Recovery of Communities 11 Housing and Infrastructure 12 Rebuilding Communities 13 Recovery of Larger Infrastructure and Transport 14 Rebuilding Governance 15 Sustaining the Environment in the Reconstruction Process 17 Establishing Sustainable Waste Management 17 Supporting the Government's Agenda to Protect Aceh's Valuable Forests 17 Alternative sources of income 18 Recovery of Economy 19 Chapter 3 Financial Report 21 Pledges 22 Cash Available 22 Allocation per Sector 22 Implementing Partners 22 Disbursement 23 Outlook 23 Chapter 4 Looking Ahead: Safeguarding the Investments of Reconstruction 25 Managing the Transition 26 Recovery of Livelihoods to Promote Growth and Sustainability 26 Annexes: 28 Project Portfolio 28 Project Fact Sheets 29 Multi Donor Fund Progress Report IV 2007 iii Irrigation canal built by the community The community constructs an irrigation system for Senebok Aceh village in the Bendahara sub-district with a minimum budget, through the Kecamatan Development Program. In total, communities have built over 1,200 units of irrigation and drainage. (Photographer: Arfan, SE, KDP facilitator) Executive Summary Following the unprecedented worldwide support and decision-making by its Steering Committee. for the victims of the tsunami and earthquakes, the Hence, the whole portfolio is aligned with the Government of Indonesia and the international Government's Master Plan for Reconstruction and community, in May 2005, established the Multi the BRR's assessment of the most critical gaps. Donor Fund for Aceh and Nias to assist in the Further, over 80% of the funds are implemented coordination of funds that were made available for by national government agencies, and funds post-disaster reconstruction. Today, this multi-donor are channeled through the Government's trust fund pools approximately US$ 673 million of budget. Alignment has been enhanced by BRR's pledges from 15 bilateral and multi-lateral donors: commitment to contribute US$ 236 million in co- the European Commission, the Netherlands, United financing to four Multi Donor Fund projects. Kingdom, World Bank, Sweden, Denmark, Norway, Germany, Canada, Asian Development Bank, United Close alignment with local priorities is of increasing States of America, Belgium, Finland, New Zealand importance as the reconstruction process has and Ireland. evolved from an emergency phase to focusing on longer term sustainability. In January 2007, a The Multi Donor Fund aims to efficiently and new Governor of Aceh took office. He faces the effectively contribute to the reconstruction of a challenge of rebuilding all levels of administration better Aceh and North Sumatra. At the end of its in a region which was affected by 30 years of lifespan, the Multi Donor Fund expects to have conflict, and ensuring that all the reconstruction contributed to the following goals in Aceh and investments can be made sustainable. To ensure Nias: that further projects meet these needs, the Multi · Communities and community Donor Fund has invited the Governor of Aceh to infrastructure regenerated increase his role in its Steering Committee and · Poverty alleviated project selection process. The Government of North · Larger infrastructure repaired or replaced Sumatra also holds a voting seat on the Steering · Governance rebuilt Committee to represent Nias. · Environment sustained · Livelihoods restarted Enhancing Coordination A Strong Partnership In the past two and a half years, the Multi Donor Fund has proven to be a strong framework for The Multi Donor Fund has achieved strong realizing the goals of the Paris Declaration in ownership for the program on the Government the context of the recovery. The Fund's Steering side. The Multi Donor Fund has a very close working Committee represents more than 75% of all relationship with the Government of Indonesia's pledged funds, valued at US$ 5.8 billion, including Agency for Rehabilitation and Reconstruction the National Government, both Provincial (BRR) in Aceh and Nias. Based on the Government's Governments, the donors, civil society members, Master Plan for Reconstruction and the BRR's as well as the United Nations, international NGOs assessment of the most critical gaps, the Multi and non-contributing donors (Australia, Japan). Donor Fund receives project proposals for review The programming mechanism that starts with Multi Donor Fund Progress Report IV 2007 1 EXECUTIVE SUMMARY Government selection has led to high Government Reconstruction in other areas, such as the ownership, helped align donor funds with the development of large scale infrastructure investments country priorities and streamline aid flows. or building capacities for local governments or civil society organizations have taken longer to show The Steering Committee has also been an results. This can be attributed to various factors that important forum for coordination and policy are intrinsic to the recovery process, such as scarcity of dialogue. It regularly provides its stakeholders human resources or coordination issues. However, on with the opportunity to discuss the status of the the upside it can be said that strong involvement of all reconstruction process and also its challenges. stakeholders, while being time consuming, has shown These discussions, further supported by technical to lead to strong ownership of the reconstructed level meetings, have also influenced the assets by communities and local governments. programming of the Multi Donor Fund ­ helping to avoid overlaps and ensuring investments are made The following results have been achieved since the in areas of need. In this way the Multi Donor fund start of the Multi Donor Fund: has effectively supported harmonization. · Community-Driven Recovery of Housing. In Aceh, communities in Aceh have built 4,434 Key Achievements from May 2005 new houses and rehabilitated 5,129 houses to September 2007 while the remaining houses will be largely finished in December 2007 (total target: 8,112 After its formation in May 2005 the Multi Donor new houses and 7,077 rehabilitated houses). Fund has a diverse portfolio of projects under A further 5,000 housing recipients have been implementation in four areas of reconstruction identified in Nias and will receive their initial valued at US$ 492 million: recovery of communities, funds in the upcoming months. A satisfaction reconstruction of large infrastructure, rebuilding survey of over 1,300 recipients in early 2007 governance and sustaining the environment. In has shown that satisfaction with the houses 2007, three projects in the infrastructure sector provided is above 90%. Through September and waste management received further funding 2007, 104,551 landowners have received land valued at US$ 10.4 million. titles (10% to women/ joint titles), while 122,900 entitlements have been registered in the land On top of this ongoing program, the Multi Donor book, thus securing property rights. Fund in 2007 has approved the preparation of two new projects in the areas of disaster risk reduction · Community-Driven Recovery of Vital and economic recovery, totaling US$ 59.9 million. Infrastructure. Communities have also been These projects are currently under preparation. supported in the rebuilding of vital infrastructure in over 3,500 target communities in both Aceh To date, US$ 270 million have been disbursed. A and Nias. By September 2007, community large part of disbursements has gone to community infrastructure reconstructed and rehabilitated reconstruction which has also made the largest included 2,529 km of rural and urban roads and overall progress in terms of sectoral achievements. 825 bridges; 1,075 km of drainage and irrigation This is due to the fact that these projects have built canals; provision of 1,148 clean water units on pre-existing delivery mechanisms and that, and 1,302 sanitation units; 19 markets and 282 once communities receive funds, after extended schools, 43 health posts and 262 waste disposal planning, implementation usually happens very units. Two years after their start, these activities fast. are coming to an end. 2 Multi Donor Fund Progress Report IV 2007 EXECUTIVE SUMMARY · Large Scale Infrastructure. Large scale also supports the strengthening of capacities infrastructure investments have been prepared of NGOs through a training and small grants in close cooperation with the BRR and local program. To date, 16 grants (US$ 300,000) have governments. To date, 185 km of national been delivered to local communities. level roads are under construction. Further infrastructure works (approx. 100 km of national · Sustaining the Environment: Waste and over 300 km of provincial roads, several Management and Forest Protection. ports, water systems, etc.) are in the final Environmental sustainability has been enhanced preparation stage. All infrastructures will be through clearing tsunami wastes from urban handed over to the appropriate government and rural areas (1,113,557m3 removed ­ 20% of agencies, supported by planning for operations total tsunami debris cleared) and re-establishing and maintenance needs. The Sea Delivery and municipal waste services in currently eight Logistics Project shipped 96,000 metric tons districts, reaching over 78,000 households. of reconstruction goods until December 2006, Approximately 1,400 households have returned and now continues providing a logistics service to farming on cleared agricultural lands. These for all reconstruction stakeholders. Lastly, services are being expanded to another five local governments and local contractors have districts over the next two years. The Multi Donor been trained to build infrastructure with an Fund has also invested in the protection of employment intensive approach, involving the Aceh's forests from increased deforestation due reconstruction of 98km of district roads (44% to timber needs in reconstruction. This project completed). supports the Provincial Government in creating a multi-stakeholder governance framework · Rebuilding Governance Structures: for forest management. Forest monitoring Immediate Needs. The Multi Donor Fund has resulted in a baseline on forest status, has also invested strongly in enhancing BRR's capacities to plan, coordinate and reforestation of 670 ha, training and support implement reconstruction. Fifty seven technical for local forestry and conservation agencies, experts have advised on the development community involvement in conservation as well of the policy framework for reconstruction as awareness programs for traditional leaders, and the implementation of the BRR's own teachers and pupils. reconstruction portfolio. Service contracts have · Rebuilding Livelihoods. Employment creation supported critical functions of the agency such to date has largely been based on short-term as information technology and human resource work in reconstruction, with a total of more than management. 13 million man-days of labor to date. Further · Rebuilding of Governance Structures: to this, Multi Donor Fund projects have also Longer Term Needs. Multi Donor Fund projects employed over 1,300 local staff. The upcoming currently provide technical support and training challenge is the development of sustainable for hundreds of local government staff to economic opportunities to ensure that, as the enhance capacities in areas such as planning reconstruction-driven employment boom and budgeting, health, education, infrastructure ends, long-term employment opportunities construction, waste management and drainage, are created. The Multi Donor Fund supports forest management, spatial planning and land this through the development of an Economic administration. Over 1,900 persons have been Development Financing Facility for Aceh that trained in total to date. The Multi Donor Fund will be located at the Provincial Government. Multi Donor Fund Progress Report IV 2007 3 EXECUTIVE SUMMARY Ongoing Challenges for Project maintain them (O&M), will be a challenge in the upcoming months and years. Projects responded Implementation by increasing assistance to develop O&M plans, prepare adequate budgets, and sign agreements Like many other stakeholders in Aceh, Multi Donor with local governments prior to construction which Fund projects face delays on the ground, especially identify the financial needs to sustain the new during the start-up period. Main challenges assets. Whether local governments will eventually occur during the recruitment of qualified staff provide the funding and staffing required can only in a competitive environment, the setting up of partially be influenced by projects today. coordination and cooperation mechanisms in a complex stakeholder environment, and the At the end of 2008, BBR will cease to function as a contracting of high quality consulting services budget-channeling agent for on-budget projects. which are able to operate in the dynamic With its closure in April 2009, its coordination environment of Aceh and Nias. Projects that are function will cease which is critical to many Multi on the Government's budget face the further Donor Fund projects. Together with the BRR, the challenge of establishing all mechanisms needed projects will have to prepare transition plans in to channel funds. the upcoming months to ensure there is a smooth transition to other governmental partners ­ who in Coordination is a critical condition for the success some cases still need to be designated. Discussions of the reconstruction. The coordination of activities for this have begun. with other stakeholders who implement or intend to commence in similar activities is an ongoing challenge and causes delays in implementation. Financial Status of the Multi Donor In community-driven projects, lack of coordination Fund has often forced communities to re-plan their activities since external parties may implement · Initial Contributions: initial pledges in 2005 infrastructure works that communities intended to from the fifteen donors stood at US$ 525 undertake with block grant funding. (based on the Euro-US Dollar exchange rate in December 2005). The creation of benefits for women in Aceh is an ongoing challenge. Involvement alone, even if · Additional Contributions: in 2006 and 2007, intended participation levels can be reached, does the Multi Donor Fund has received additional not necessarily mean that women benefit equitably. pledges from four donors. As of September Approaches need to be fine-tuned, as shown by 30, 2007, a total of US$ 673 million has been the Urban Poverty Project that developed a pilot pledged and all pledges have been formalized approach for enhancing women's involvement. The through contribution agreements. Resource-based Rural Road Rehabilitation Project · Allocations to Projects: US$492 million have responded by including employment targets for been allocated to 17 projects. This means that women in road construction contracts. Because 73% of pledges have been allocated. of the specific Acehnese cultural situation, gender sensitivity needs to be further enhanced and new · Disbursements to Projects: the Multi Donor solutions found. Fund has disbursed US$270 million to project accounts. This is 55% of allocated project funds. A large portion of Multi Donor Fund investments · Further committed funds: in 2007, two support the recovery of physical assets. Making projects were approved at the concept stage, these assets sustainable through ensuring that valued at US$ 59.9 million. The detailed projects local governments are prepared to operate and are currently being prepared. 4 Multi Donor Fund Progress Report IV 2007 EXECUTIVE SUMMARY · Remaining funds: the Multi Donor Fund budget allocations starting from 2008 due to the currently has US$126 million in unallocated Special Autonomy Funds which should enable funds. Further programming discussions are them to continue the recovery process and render ongoing to ensure that funding will be used to investments sustainable. Nias on the other hand fill the most vital gap during the last phase of will be faced with a significant decrease of funds the Government of Indonesia's reconstruction after the reconstruction wanes off. Both regions program to focus on transition and safeguarding will need further assistance in managing the next reconstruction investments by focusing on rebuilding livelihoods. phase of the reconstruction when a large part of external support will have left. Transition and Safeguarding of Fostering economic growth will be of equal Reconstruction Investments importance during the remainder of the reconstruction. The recent economic growth rate The reconstruction program of the Government in Aceh is closely linked to the reconstruction. and other reconstruction actors will largely come Unemployment rates are expected to increase to closure in December 2008. Besides completing upon completion of reconstruction activities. the ongoing works on time, the biggest challenge Therefore additional support to the recovery of the is the transition process. Transition in this context economy is needed to create long-term livelihood means a sustainable phasing out of the current opportunities that are in line with the potentials of actors by transferring reconstructed assets to their each region. recipients in a legally valid process while ensuring that it is done in a strategic and equitable manner For the Multi Donor Fund these upcoming which will support the longer term development challenges have clear implications in terms of of the region. programming and discussions about the best use of remaining Multi Donor Fund monies are In order to ensure sustainability, especially of public ongoing. It is to be expected that remaining funds assets and rebuilt public services, it will be essential will be largely used to 1) support short-term and that Provincial and District Governments of Aceh longer term needs for technical capacities of and Nias have sufficient means and capacities local governments related to the transition and (human resources, technical expertise, etc.) to beyond; 2) support the recovery of the economy; properly operate and maintain the transferred and 3) scale up ongoing projects with a proven assets. Both the Provincial and District Governments track record of results delivery, where this will fill in Aceh will see a very significant increase of remaining critical gaps. Co-chair leading the Multi Donor Fund Steering Committee on September 7, 2007 in Jakarta. Multi Donor Fund Progress Report IV 2007 5 Flying bridge at Kecamatan Gido The hanging bridge in Gido, Nias Island is the main connection to the main road. Villagers have to make extra efforts to move construction materials over this bridge to build houses in with support from the Kecamatan-based Reconstruction and Rehabilitation Planning Project. (Photographer: Catrini Kubontubuh, Consultant, World Bank) Happy story for Ied Mubarak The family of Jalal Fida A. Thaleb in Samuti Makmur village, Gandapura, Kabupaten Bireuen is happy to move to their new home from the Aceh housing project REKOMPAK prior to the Ied holiday. They wish other families are as happy as they are. REKOMPAK has helped over 3,900 families to date to rebuilt their lost houses. (Photographer: R. Yoliandino Susilo, ST, Asisten Pengawasan Mutu) Success Factors of the Multi Donor Fund Operations The Multi Donor Fund governance structure forged: all projects are submitted by the BRR for 1 and operational setup support the goals of the review and decision-making by the Multi Donor Paris Declaration on Aid Effectiveness: creating Fund's Steering Committee. ownership, alignment with country priorities, harmonizing donor programs and managing In this way, the whole portfolio is aligned with for results. Since its beginnings the Multi Donor the Government's Master Plan for Reconstruction Fund has strongly engaged its stakeholders and the BRR's assessment of the most critical and beneficiaries through various dialogue gaps. The portfolio also reflects the priorities of mechanisms that contribute to the effectiveness of its operations. the Government over time: in the first phase, support for the recovery of communities and other immediate action activities such as environmental Working with the Government and social safeguards, and in the second phase, reconstruction of infrastructure as well as social Since its inception, the Multi Donor Funds has strived to involve the Indonesian Government and institutional development. In its third phase, at all levels. A close working relationship with the Multi Donor Fund supports to the recovery of the Government of Indonesia's Agency for the economy and the transition process of phasing Rehabilitation and Reconstruction (BRR) was out the reconstruction program. Three Years After the Tsunami ­ Achievements and Challenges 7 CHAPTER 1 SUCCESS FACTORS OF THE MULTI DONOR FUND OPERATIONS Further, over 80% of the funds are implemented strategic areas of need for which the Multi Donor by national government agencies, and funds are Fund is considered the funding partner of choice. channeled through the Government's budget. This two-tiered process has resulted in a strong This ownership is further underlined by the BRR's Government ownership of the Multi Donor Fund commitment to contribute US$ 236 million co- program and its alignment with governmental financing to four Multi Donr Fund projects. priorities. As the reconstruction process has evolved from Another important function of the Steering the emergency phase to the current need to focus Committee is to enhance the coordination and on longer term sustainability, the alignment of policy dialogue for reconstruction to ensure reconstruction with local programs is of increasing harmonization of efforts. Steering Committee importance. Through close coordination with meetings present an opportunity to discuss the Provincial Governments regarding the synergies of the Multi Donor Fund portfolio with programming discussion for remaining Multi the wider reconstruction efforts and to help avoid Donor Funds, it is expected that these funds will overlaps. The Multi Donor Fund also organizes serve best the remaining priority recovery needs, "Policy Dialogue Meetings" with key stakeholders on while increasing local capacities to manage the current issues such as sustaining the environment reconstruction, too. On the level of individual in reconstruction, disaster risk reduction and ­ projects, Provincial, District and Municipal most recently ­ transition and governance capacity Governments and their agencies are being building. These discussions also reinforce the involved in planning processes, infrastructure alignment of the program with the Government's funding decisions and direct implementation of strategic priorities. works. Two-way Communication to Enhancing Coordination of the Beneficiaries Recovery Process The Multi Donor Fund Secretariat has developed The Steering Committee is the governance an Outreach Strategy that includes regular mechanism of the Multi Donor Fund. The radio talk shows, field visits to meet and discuss Steering Committee consists of the Indonesian with beneficiaries and communication through Government (central and provincial level), donors advertisements as well as a telephone hotline. The and representatives of local civil society. The United Secretariat's Outreach Officer receives questions Nations Coordinator and a representative of the and also complaints, directs the communications international NGO community are official observers, to the relevant parties and follows up with the while Australia and Japan as two other major senders to inform them of the outcome. To date, reconstruction owners also join meetings. In this seven radio shows have been held to reach out to way, more than 75% of all pledged reconstruction nine tsunami-affected districts and municipalities, funds, valued at US$ 5.8 billion, are represented. including Nias. Regularly updated information on To date, 14 Steering Committee Meetings have the Multi Donor Fund can also be found on its been held, supported by over 40 meetings at the website (www.multidonorfund.org). technical level. At the individual project level, projects have also Funding decisions are taken after the review set up complaints handling systems that enable of proposals which have been submitted by beneficiaries to directly relay their complaints. This proponents through BRR. BRR, as the agency is especially important for the community recovery responsible for the overall coordination of the programs where many small activities need to be reconstruction effort, is best positioned to identify monitored for inconsistencies. Such complaints 8 Multi Donor Fund Progress Report IV 2007 CHAPTER 1 SUCCESS FACTORS OF THE MULTI DONOR FUND OPERATIONS have largely been resolved at the community This engagement has created strong ownership, level. especially on the side of donors, regarding the successful operation of the Multi Donor Fund Where far-reaching complaints systems have been established, following up on all requests and possible complaints can pose a managerial Coordination on the Ground challenge when the reconstruction environment is as demanding as in Aceh. Yet, while the solution Coordination on the ground is important in of all complaints might not be immediate, it is two respects: to avoid duplication and to create important to recognize that such direct access synergies. Besides joining the established is important to the beneficiaries and the anti- reconstruction coordination forums or sectoral corruption initiative. working groups, many Multi Donor Fund projects have set up Steering Committees that bring together the most relevant stakeholders: local Managing for Results government and their sectoral agencies, local The Multi Donor Fund applies a multi-tiered NGOs and universities, communities and other quality control system. The first level of monitoring major players in the sector. for quality is the Implementing Agency which implements the activities. All Implementing An outcome of good coordination is the creation of Agencies are regularly supervised by a Partner synergies, both with other actors as well as between Agency which is responsible for the appropriate Multi Donor Fund projects. The Support to Poor and use of funds and reports on progress to the Disadvantaged Areas Project has partnered with the Steering Committee. The Secretariat of the Multi USAID Local Government Support Program and of Donor Fund, which manages the funds on behalf The Asia Foundation to benefit from their existing of the Trustee, then monitors and evaluates the overall portfolio through a streamlined reporting experiences and capacities on the ground. The system, by conducting portfolio level reviews, Tsunami Recovery Waste Management Program and by commissioning independent assessments has collaborated with GTZ in preparing the design on the performance of the portfolio. Through the and supporting the site identification for a regional Secretariat, the World Bank reports to the Steering landfill for Banda Aceh and Aceh Besar. Committee on the status of the funds and portfolio Examples of synergies between Multi Donor Fund in which it has been entrusted. projects are: Following the principles of `Managing for · While ports construction is supported by Results', outcome orientation during monitoring, the Ports Redevelopment Project and the assessment and reporting is a core principle of the Infrastructure Recovery Financing Facility (IRFF), Multi Donor Fund. The Steering Committee of the the Sea Delivery and Logistics Project currently Multi Donor Fund is actively engaged in its quality is preparing a capacity building program for control system by attending supervision missions, ports management to ensure that rebuilt ports reviewing the progress of the portfolio and the will become sustainable investments. projects in technical meetings and providing feedback on the content of assessments that are · IRFF also has committed to finance sanitary commissioned by the Secretariat. Individual donors landfills that are being prepared through the also commission independent evaluations of the Tsunami Recovery Waste Management Project. Multi Donor Fund portfolio. Recently, first steps have been made to a further harmonization: the · The Support to Poor and Disadvantaged Areas Mid-term Evaluation in 2008 will be conducted as Project builds on bottom-up planning facilitated a joint exercise by the World Bank and the donors. by the Kecamatan Development Program. Multi Donor Fund Progress Report IV 2007 9 Building a steelframe house The housing project is managed by BRR in Calang, Aceh Jaya as part of the MK II - BRR. Through the Technical Support to BRR project, the MDF has helped introducing light steel frame houses. (Photographer: Fakhrurazi, Program Assistant UNDP) `Srikandi' - Indonesia's heroine SRIKANDI is a women salt farmer group of 30 people founded in 2002 at Bluka Teubai village in Dewantara, North Aceh. In 2006 the group received a productive economic business loan from the Kecamatan Development Project at the value of Rp. 30 million. (Photographer: Siti Rahmah, World Bank Consultant) Sectoral Achievements Until September 2007 2 This chapter provides an overview of the major Funds allocated achievements of the Multi Donor Fund to date Recovery of Communities US$ million and an outlook on future activities. Kecamatan Development 64.70 Project (KDP) Recovery of Communities Urban Poverty Project (UPP) 17.96 The reconstruction of houses and the recovery Community-based 85.00 of communities were the first priority of the Settlement Rehabilitation reconstruction process. Here, the Multi Donor and Reconstruction Project Fund has contributed to the reconstruction (REKOMPAK) of houses; the rehabilitation of community Nias Kecamatan-based 25.75 infrastructure and emergency/ social support; Reconstruction and and the preparation and delivery of secure land Rehabilitation Planning titles. The Multi Donor Fund has allocated US$ 222 Project (KRRP) million or 45% of its allocated funds to this area. Reconstruction of Aceh 28.50 In addition, the BRR has committed to contribute Land Administration Project US$ 30.75 million co-financing in this area. (RALAS) Three Years After the Tsunami ­ Achievements and Challenges 11 CHAPTER 2 SECTORAL ACHIEVEMENTS UNTIL SEPTEMBER 2007 Housing and Infrastructure in early 2008. While occupancy in early 2007 was even lower (72%), a satisfaction survey of the first All community recovery activities are managed 1,300 housing recipients, carried out at the time, and implemented by the communities showed that 90% of beneficiaries were satisfied or themselves, supported by a strong network of highly satisfied with the community-driven process over 13,000 local facilitators. Through REKOMPAK, and the results. communities in Aceh have built 4,434 new houses and rehabilitated 5,195 houses under strong quality Village infrastructure in Aceh needs further control mechanisms to ensure earthquake safety. sizeable investments. In August 2006, KDP Through KRRP in Nias, the reconstruction of 4,462 conducted a survey on infrastructure and social houses is about to begin, while it is expected that conditions in 5,698 villages in Aceh, showing that houses in Aceh will be mostly completed by the approximately US$752 million is needed to restore end of 2007. In total these two projects will build village and productive infrastructure. Another 13,112 new houses and rehabilitate 7,000 houses, important finding of the survey was that over 50% all equipped with basic infrastructure (access to of the main infrastructure was damaged by the roads, water, sanitation, and link to the electrical tsunami, earthquakes, and conflict.1 network). The Multi Donor Fund contributes 11% to the total housing target of 120,000 houses. KDP and UPP have provided important support to rebuild settlement infrastructure. By Almost all completed houses are occupied. September 2007, infrastructure reconstructed and In fact, 100% of owners have moved into their rehabilitated included 2,529 km rural and urban rehabilitated houses, while the occupation rate for roads as well as 825 bridges; 1,075 km of drainage new houses is lower at 82%. This compares to the and irrigation canals; provision of 1,148 clean occupancy rate of for instance UN-Habitat houses water units and 1,302 sanitation units; 19 markets (82%) that are built following a similar approach. and 282 schools, 43 health posts and 262 waste The Aceh Housing Project will analyze the reasons for lower occupancy of newer houses and steps to 1 2006 Village Survey in Aceh. An Assessment of Village Infrastructure and Social Conditions. Kecamatan Development Program. Ministry be taken during an upcoming impact assessment of Home Affairs/ World Bank. March 2007. Still in progress The Community-Based Settlement Rehabilitation and Reconstruction Project (REKOMPAK) in Lambung, Banda Aceh is still ongoing. Several houses are being built. The project also provides vital infrastructure to 130 villages. (Photographer: Muhammad Nasir, World Bank, IT Aceh) 12 Multi Donor Fund Progress Report IV 2007 CHAPTER 2 SECTORAL ACHIEVEMENTS UNTIL SEPTEMBER 2007 disposal units. Further infrastructure will be built support mechanism in tsunami-affected villages. through both housing projects. While KDP and Further, communities supported 8,649 students UPP activities funded by the Multi Donor Fund are with scholarships at a total value of US$368,000. close to completion, the programs will continue to support communities in Aceh and Nias with Women have been involved in planning National Program funding. and implementation of community-driven activities. More than 1.1 million women Land titles have been handed out to 104,551 participated in planning activities which represents owners, while 122,900 entitlements were registered in the land book. The project has also more than 65% of all participants. Women have also had broader impacts in preventing land grabbing been represented in village-based management and speculation and accommodating inheritance units at a rate of 24%. Experience has shown and gender concerns through joint titling (10% that involving women, especially for training of titles distributed to date). The approach of land and employment opportunities, in Aceh poses a mapping, enhanced by utilization of a standard stronger challenge than in Nias. Also, participation manual across Aceh, facilitated the resolution of does not automatically lead to benefits for women. many land disputes at the local level. The Urban Poverty Project has reacted to this fact with reallocating US$ 2.35 million specifically to Rebuilding Communities women-directed activities. Communities allocated substantial funds to Community-driven projects have created over support households in need. In the early stages of 13 million man-days of labor. This is achieved recovery, nearly US$ 3.4 million were made available mainly in community infrastructure projects, largely as emergency or social funds as an emergency benefiting local populations in need of income. Female worker at wood recycling site A female worker builds furniture from recycled tsunami wood. Women workers are a common sight at this facility set up with the help of the Tsunami Reconstruction Waste Management Program. About one third of temporary workers employed through this project were women. (Photographer: Muhammad Nasir, World Bank, IT Aceh) Multi Donor Fund Progress Report IV 2007 13 CHAPTER 2 SECTORAL ACHIEVEMENTS UNTIL SEPTEMBER 2007 Recovery of Larger Infrastructure The Multi Donor Fund responded to the emergency need of keeping transportation and Transport corridors open. Both the Sea Delivery and Logistics Project and Lamno-Calang Road Maintenance The BRR has identified large needs in the Project helped keeping transportation routes infrastructure sector for Multi Donor Fund open to the Aceh west coast and islands of Nias funding. In fulfilling its commitment to address and Simeulue. Until the end of 2006, the Sea major needs, the Multi Donor Fund has invested Delivery Project transported 98,185mt/256,006m³ approximately US$176 million, or 36% of the total of reconstruction goods; it continues to provide programmed funds, to projects dealing with the transportation logistics support to reconstruction reconstruction of large scale infrastructure works. stakeholders. From January to October 2007, the In addition, the BRR has committed to contribute Lamno-Calang Road Maintenance Project has kept US$ 191 million co-financing in this area. These the west coast corridor open in a time when the investments will provide communities with the need for reconstruction materials transport has necessary safeguards against environmental steadily risen. dangers, access to goods and reconstruction During 2007, construction of large scale materials, and access to markets which will infrastructure has made solid progress. Under encourage economic recovery and growth of the the Infrastructure Reconstruction Enabling Project province. and the linked Financing Facility, 184.5 km of national roads are under construction. Further Recovery of Larger Funds allocated infrastructure works such as approx. 100 km of Infrastructure in US$ million national and over 300 km of provincial roads, several ports and water systems are in the final preparation Sea Delivery and Logistics 24.70 stage. All infrastructures will be received by the project appropriate government agencies for ongoing operations, supported by planning for operations Tsunami Recovery Ports 3.78 and maintenance needs. On the district level, a Redevelopment Programme Local Resource-based Reconstruction Project has built 43 km of district roads, while works for 48 km Banda Aceh Flood Mitigation 4.50 are ongoing. Project Provincial and District Governments have Infrastructure Reconstruction 42.00 approved all infrastructure investments based Enabling Project (IREP) on integrated infrastructure planning with technical support from the Multi Donor Fund. Infrastructure Reconstruction 100.00 Through technical support to the BRR, a Strategic Funding Facility (IRFF) Infrastructure Plan for the Province of Aceh and Lamno Calang Road 1.46 the Nias Districts is being developed that will line Maintenance Project out investments needed until 2012. 14 Multi Donor Fund Progress Report IV 2007 CHAPTER 2 SECTORAL ACHIEVEMENTS UNTIL SEPTEMBER 2007 Rebuilding Governance employment-creating road construction, municipal and community-based solid waste management, Public administration in Aceh still lacks bottom-up planning processes, forest conservation capacities. In 2006, a detailed review of the financial and status monitoring. One important aspect for management capacities of district governments in the future development of the disaster affected all of Aceh was conducted through collaboration of regions is assistance in facilitating demand-oriented various capacity building stakeholders. On average, development planning and implementation of districts scored around 41% with the study also government programs. Therefore, further capacity revealing dramatic disparities of capacities between building in the areas of planning and budgeting as individual districts (with Aceh Utara showing the well as sectoral know-how on health, education, highest average rating at 69% and Aceh Jaya the and disaster risk reduction are under preparation. lowest at 15%). Capacity development of provincial Technical experts contracted for the BRR have and local governments will be the focus of several been well in demand. The Technical Assistance new projects currently under preparation.2 to BRR Project has provided 57 technical experts (463 person months) that supported policy The Multi Donor Fund has allocated US$ 52 million development, development of projects, and quality for this sector, or a total of 11% of its allocated funds. control. This has helped enhance the overall quality In addition, the BRR has committed to contribute of BRR's work in the areas of housing, infrastructure US$ 14.6 million co-financing in this area. (urban planning, coastal engineering, ports, irrigation, drainage, etc.), environment and timber Funds allocated Rebuilding Governance in US$ million management, spatial planning, health, as well as overall coordination and good governance. Technical Assistance to the BRR 14.70 Project Contractual services have been important in enhancing BRR's operational capacities. A Local Resource-based 6.42 human resource management company has been Reconstruction Project contracted to support the BRR's Human Resources Support for Poor and 25.00 Department. The team has developed standard Disadvantaged Areas procedures for human resources (HR) management Support to Strengthen the Role 6.00 and various HR related instruments. The service and Capacities of CSOs also supported BRR's recruiting needs in screening more than 2,000 candidates. Under an IT contract, Local government capacity building is critical all IT infrastructure has been set up in the BRR head to sustain the rebuilt assets and revive public office and regional offices. A hotline that reacts to services. As part of their core activities, Multi IT needs of BRR staff has answered most requests Donor Fund projects provide technical support within four hours. BRR has also received legal and on-the-job training for local government staff support through an in-house lawyer as well as a which leads to enhanced capacities in areas such professional legal services company as needed. as infrastructure construction, waste management The Local Resource-based Reconstruction and drainage, forest management, spatial planning Project has trained 77 government staff (6 and land administration. women) and 166 managers and technical staff In total, more than 1,900 persons (5% women) of local contractors (1 woman). While physically have received formal training in areas such as local helping to rebuild district roads, the main goal of the project is to train local governments and contractors in road construction methods which 2 Public Financial Management in Aceh. Measuring the performance of district governments in Aceh. World Bank. March 2007. The create local employment by relying on local review was conducted with support from the Ministries of Home contractors and a low-tech approach. To date, the Affairs and of Finance, AusAID, ADB, CIDA, GTZ, USAID and the DSF. project has also created over 123,000 man-days of Multi Donor Fund Progress Report IV 2007 15 CHAPTER 2 SECTORAL ACHIEVEMENTS UNTIL SEPTEMBER 2007 labor for local workers in Aceh and Nias. In Aceh, and education. Actual block fund usage will start the rate of employed women was only 16%, while in 2008. in Nias 36% could be hired locally (target 30%). A Civil Society Resource Center (CSO) in Aceh The project has reacted by including mandatory has been initiated, while a similar center is still in employment rates for women in construction preparation under the Support to Strengthen the contracts, which is showing first effects. Capacity and Role of CSOs Project. Managed by a The Support for Poor and Disadvantaged local NGO umbrella organization, the center will Areas Project supports integrated bottom-up become a focal point for local NGOs for training planning through targeted block grants to all and dialogue while also facilitating the exchanges districts in Aceh and Nias. The project has set up with the government and wider society. The first 16 its operational structure and trained hundreds of grants have been provided to community-based government staff, civil society members, university organizations to support livelihoods activities in staff and community representatives to facilitate rural areas to benefit 339 women and 520 men. the process of subproject selection and conducted More grants will be provided on a competitive needs assessments for district services in health basis, supported by training throughout 2008. Field Orientation The monitoring team is conducting an orientation program at the Leuser Ecosystem in Kemuning, East Aceh. Under the Aceh Forest and Environment Project, the team monitors the whereabouts of wild animals and illegal activities in the Leuser area. (Photographer: Zul Asfi, Data Analyst, World Bank) 16 Multi Donor Fund Progress Report IV 2007 CHAPTER 2 SECTORAL ACHIEVEMENTS UNTIL SEPTEMBER 2007 Sustaining the Environment in the waste in urban and rural areas (20% of all such debris removed to date). Clearing of 800 ha agricultural Reconstruction Process land as allowed over 1,400 families to return to their farmlands. These activities will continue until the The valuable natural resources in Aceh and Nias end of 2008 to rehabilitate the most fertile lands can only be protected through mainstreaming still covered by silt. environmental concerns into reconstruction. In line with recommendations that resulted from Support for solid waste management focuses the BRR's Third Coordination Forum for Aceh and on establishing sustainable systems that could Nias (CFAN 3) in April 2007, the Multi Donor Fund also provide a model for use beyond the province. supports the sustainability of the environment In the first phase the Waste Management Program through (a) supporting a strategic approach to supported 8 districts with the operation of 10 environmental management; (b) adherence to interim landfills and related waste services. Around environmental standards to avoid environmental 115,000 cubic meters of municipal waste has been destruction; and (c) the creation of alternative collected and safely disposed of, currently reaching sources of income to avoid further degradation of over 78,600 households or 48% of the population natural resources. in the areas covered by the landfills. This project The Multi Donor Fund provides support in two will further support local sanitation agencies in the strategic areas of environmental protection: improvement of their services until mid-2009. It waste management and sustainable forest will help the establishment of sustainable sanitary management. With US$ 41.9 million (8% of landfills in selected areas, support local governments funds allocated) the Multi Donor Fund is the in securing the budget for an adequate service largest single contributor to environmental provision and train local government staff to causes in reconstruction. In waste management, raise waste management services to sustainable district governments are enabled to set up levels. This also includes an initiative that is under functioning waste collection and disposal preparation in cooperation with GTZ, to finance services, while livelihoods creation in recycling sanitary landfills at least partially through carbon is expected to render waste management more trading. efficient and provide additional income. In forest management, the aim is to strengthen governance Supporting the Government's Agenda and management systems at various levels to to Protect Aceh's Valuable Forests incorporate the conservation of Aceh's forests into Aceh's long-term development plan. The forests of the Leuser Ecosystem and Ulu Masen are the largest contiguous forest areas Sustaining the Environment Funds alllocated in South East Asia. These forests provide water in US$ million to 60% of Aceh's population and help protect the Tsunami Recovery Waste 24.41 population from rain-induced flooding. The newly Management Program elected Government of Aceh has acknowledged Aceh Forest and Environment 17.53 the importance of protecting these forests by Project issuing a moratorium on logging until an adequate policy and management framework is in place. Establishing Sustainable Waste The Aceh Forest and Environment Project Management (AFEP) cooperates with stakeholders at all levels to enhance forest protection. This four- The Tsunami Recovery Waste Management year project supports the development of an Program has successfully removed more than improved multi-stakeholder forest management 1.1 million cubic meters of tsunami-generated framework, spatial planning processes, forest status Multi Donor Fund Progress Report IV 2007 17 CHAPTER 2 SECTORAL ACHIEVEMENTS UNTIL SEPTEMBER 2007 monitoring, awareness campaigns for traditional Environment project has provided 90 persons (one leaders, teachers, pupils and the wider population, woman), many of them former illegal loggers, with reforestation and community nurseries, and the a stable income as forest monitors. The planned assessment of opportunities to use carbon trading creation of 50 community-managed nurseries will as a funding mechanism for conservation. also create additional incomes. Communities are important stakeholders Recycling of waste has great potential for of the protection strategy. Forest bordering providing additional income. There is still a high communities have already replanted 670 ha of potential for increasing the collection of recyclables forest with project assistance, with a total target in Aceh and Nias, and to process them locally of 5,000 ha by the end of the project. Community- rather than selling them in Medan at a lower profit led reforestation activities provide the opportunity margin. The Waste Management Program supports to demarcate forest and productive land and also the development of recycling-based economic to support communities in the development of activities through the provision of small credits alternative livelihoods. and technical support to local entrepreneurs. Since 2005, the project has set up furniture workshops Alternative sources of income that produce furniture from recycled tsunami One important aspect of environmental wood. In 2007, these workshops employed on protection is the creation of sustainable average 112 carpenters and trained 27 carpenters. incomes that do not depend on the depletion The workshops will later be handed over to be of natural resources. The Aceh Forest and managed e.g. by cooperatives. Forest Monitoring with Community Support The objective of the Aceh Forest and Environment Project is to maintain the status of Aceh's forests despite the dangers of illegal logging. The project has trained more than 1,000 forest monitors of the district Conservation Agencies as well as 90 community-level monitors. The project monitors and reports to the authorities cases of illegal logging activities (e.g. in October 2007, community monitors reported 131 cases in 10 districts) and illegal timber trading. The framework of reference to monitor the status of the forests is a comprehensive database, developed through satellite imagery, aerial photography and on-the-ground monitoring. The table below depicts the current forest status. Forest Cover in Ulu Masen and Leuser Ecosystems in December 2006 Survey coverage Undisturbed forest Disturbed forest Non-forested Ulu Masen: 73% 21% 6% 739,000 ha 539,470 ha 155,190 ha 43,340 ha Leuser Ecoysystem: 68% 20% 12% 2,311,809 ha 1,562,026 ha 465,947 ha 283,836 ha 18 Multi Donor Fund Progress Report IV 2007 CHAPTER 2 SECTORAL ACHIEVEMENTS UNTIL SEPTEMBER 2007 Recovery of Economy months. These figures show that Multi Donor Fund projects have made an important contribution to At this point of the reconstruction, the income creation and they will continue to provide development of sustainable economic short-term employment in 2008 for workers in opportunities has become one of the most small-scale infrastructure projects, housing, and important tasks. As the reconstruction is coming waste management. Projects also have supported to an end, unemployment is expected to increase income generation through the provision of micro- significantly. Analysis of national statistical data credits and the development of livelihoods in from the first semester of 2007 has shown that recycling related activities. unemployment has increased to 10% in 2006 (up from 6% in 2000).3 This can partially be attributed to The challenge will be to ensure that those a growth in the workforce by 5% since the tsunami benefiting from employment or short-term and reduced employment in the agricultural sector. labor will have a secure income when the Sectoral analysis reveals that, while agriculture reconstruction wanes off. Economic analysis has remains the largest employer at 57% in 2007, there shown that the agricultural and manufacturing has been a shift to seek employment in construction sectors remain stagnant, while growth potentials and services, mostly linked to reconstruction. While have been identified in these areas. In supporting the creation of short-term labor is essential to keep the agenda of the Provincial Government, in July households afloat, it will be important to support 2007 the Multi Donor Fund Steering Committee the development of more long-term diversified allocated US$ 50 million for a comprehensive employment opportunities. project to support the recovery of the economy by financing selected subprojects. It is expected that Since its inception the Multi Donor Fund has this project will start implementation in early 2008. created approximately 13 million man-days of short-term labor for the local population ­ or A separate program for Nias is under preparation the equivalent of 20,537 full time jobs over thirty as well to support the development of economic activities with growth potential to tackle the 3 The following is a summary of findings presented in the Aceh pressing issues of lack of access to markets and Economic Update. November 2007. World Bank. services throughout the largely rural island. A bridge finds its purpose In Senebok Punti village in Aceh Tamiang, prior to building a bridge with support from the Kecamatan Development Project, villagers had to walk a detour of about 1 km to visit another village or take risk by crossing the coconut tree bridge. (Photographer: Arfan, SE, KDP facilitator) Multi Donor Fund Progress Report IV 2007 19 Salt farmer rakes a life Women beneficiaries from the SRIKANDI group are happy to receive funding from the Kecamatan Development Project to improve their livelihood. Approximately 3,700 persons received micro-credits through KDP. (Photographer: Siti Rahmah, World Bank Consultant) Being diligent In addition to the landfill management in Gampong Jawa, the Waste Management Program also provides a carpentry workshop to re-use tsunami generated wood. The workshop employs carpenters who are also the victims of the tsunami. They are provided with training to improve their skills. (Photographer: Fakhrurazi, Program Assistant UNDP) Financial Report Pledges Source Total of Pledges US$ 3 % Total of Pledges European Commission* 268.03 40% Government of the Netherlands 171.60 25% Government of the United Kingdom* 76.06 11% World Bank 25.00 4% Government of Sweden 20.72 3.1% Government of Denmark 18.03 2.7% Government of Norway 17.96 2.7% Government of Germany 13.93 2.1% Government of Canada 11.04 1.6% Government of Belgium* 10.83 1.6% Government of Finland* 10.13 1.5% Asian Development Bank 10.00 1.5% Government of the United States 10.00 1.5% Government of New Zealand 8.80 1.3% Government of Ireland 1.20 0.2% Total Contributions 673.33 100% * Exchange rate as at 30 September 2007, Source World Bank Three Years After the Tsunami ­ Achievements and Challenges 21 CHAPTER 3 FINANCIAL REPORT Pledges Allocation per Sector To date, the Multi Donor Fund has received a total of As of 30 September 2007, the Multi Donor Fund US$ 673.3 million pledges from 15 different donors has allocated US$492 million to 17 ongoing as illustrated in the table page 21. projects in four sectors: recovery of communities, infrastructure and transport, rebuilding governance In 2006 and 2007 the Multi Donor Fund signed and support of the sustainable management of the environment. The BRR has committed to contribute an additional contribution agreement with the US$ 236 million of its own fund to co-finance four Netherlands, the United Kingdom, Sweden and of the 17 projects. Further, the Multi Donor Fund Germany. The total of the additional contribution Steering Committee has approved two project from those four donors is US$ 117.8 million. proposals targeted at disaster risk reduction and economic recovery, valued at US$ 59.9 million. Cash Available Graph 1 shows the breakdown of the portfolio according to the sectors. As of September 2007, all the pledges have been formalized through contribution agreements. Of Graph 1 Allocation of MDF funds by Sector the US$ 673.3 million, the Multi Donor Fund has Sustaining the Environment in the Reconstruction Process 8% already received US$ 416.0 million for its operations. Building Cash projections are monitored on regular basis Governance 11% to ensure that the Multi Donor Fund always has sufficient funds to continue operations. Recovery of Communities 45% Recovery Larger Infrastructure 36% Construction has started on the section of IREP/IRFF supported national Road near Tapak Tuan. This is one of six sections of national roads (totaling 185 km) supported through IREP/IRFF which will link Meulaboh with Batas Sumut. 22 Multi Donor Fund Progress Report IV 2007 CHAPTER 3 FINANCIAL REPORT Implementing Partners Disbursement The Multi Donor Fund has chosen to implement As of September 2007, the Multi Donor Fund has its projects through various Implementing disbursed US$270 million to 17 projects. A large Agencies. Approximately 79% of the portfolio is part of disbursement has been to the Government channeled through the Government's national of Indonesia, since most of the Multi Donor Fund's budget to national-level agencies, thus enhancing portfolio is "on-budget". The United Nations alignment ("on-budget" implementation). Further, agencies have received US$ 66.1 million, while the the Multi Donor Fund has agreements with three NGOs have received US$5.5 million. In total, UN agencies such as UNDP and WFP, while ILO 55% of all allocated funds have been disbursed. implements one project under UNDP supervision. In most cases, close cooperation with District and Outlook Municipality level agencies have been set up as part of implementation arrangements. Finally, Graph 3 shows the expected timing for allocation one national and two international NGOs have and disbursement during the lifetime of the Fund. been chosen as Implementing Agencies. This It is expected that the remaining funds will be variety of implementing partners aims at marrying allocated by mid-2008. Given that most projects international good practice with local knowledge need at least six to nine months to prepare and to enhance the operations of the Multi Donor Fund. set up operations, an extension of the closing date Graph 2 depicts the breakdown of allocations per of the Fund by an additional two years is under Implementing Agency. preparation. Graph 2 Implementing Agency Ministry for WFP Disadvantaged Areas 5% ILO 5% 1% Land Administration Agency 6% UNDP 10% Ministry of Public NGO Works 21% 4% BRR 29% Ministry of Home Affairs 18% Multi Donor Fund Progress Report IV 2007 23 Waiting for the raft The community of Binjai village at Aceh Tamiang relies on their new raft, built with financing from The Kecamatan Development Project. The community is happy with the raft because they do not need to canoe or swim across the river like they used to. (Photographer: Siti Rahmah, World Bank Consultant). Guarding the forest from depletation This village head joined a field trip for participants from five districts to discuss the protection of Ulu Masen forests, organized by the Aceh Forest and Environment Project in July 2007. (Photographer: Zulfan Monika, staff of Flora Fauna International). Looking Ahead: Safeguarding the Investments of Reconstruction 4 Experience has shown that reconstruction While a large part of reconstruction programs processes after large-scale disasters such as will be completed by December 2008, there the earthquakes and tsunami can last up to is a need to further support the next phase of ten years. While the BRR's reconstruction program the recovery. With US$ 126 million of unallocated will come to an end in 2009, the recovery will have to be carried forward by the Provincial and funds outstanding, the Multi Donor Fund is the District Governments. Many needs remain to be largest source of remaining unearmarked funds fulfilled, but two issues now have become very for the reconstruction. At the same time, the Multi urgent, namely managing the transition from BRR Donor Fund will continue to run beyond the lifespan to the national, provincial and local governments of the BRR and many of the other international and restarting the economy. Both transition and stakeholders (bilateral, multilateral and NGOs). This economic development will be critical for the next phase of the reconstruction which will need to places the Multi Donor Fund in a strong position establish the continuity between reconstruction to provide support to the upcoming transition and the longer term development of the regions. process and economic recovery. Three Years After the Tsunami ­ Achievements and Challenges 25 CHAPTER 4 SAFEGUARDING THE INVESTMENTS OF RECONSTRUCTION Sustaining the peace in Aceh is critical for does not enjoy such benefits and due to its isolation long term growth and development and the and rather low productivity will face budgetary safeguarding of reconstruction investments. constraints once the external support wanes off. The peace agreement signed in Helsinki, the Further, given that Aceh and Nias still face the ensuing Reintegration Program that received challenges of weak governance local governments support by many parties, the development of the in both regions will need further assistance. There Law on Local Governance for Aceh and finally the is a current exercise by BRR, the Aceh Provincial first direct democratic elections in 2006 and 2007 Government, donors, NGOs, project teams as well have laid the foundations for peace and stability. as other stakeholders to determine the needs required to prepare for this transition. However, the conflict years had a lasting impact on the welfare of Aceh's population. By "Building Back The Multi Donor Fund has facilitated a policy Better" the reconstruction program aims to support dialogue meeting in November 2007 to bring all the agendas of peace and equitable growth. The necessary parties together and discuss the draft Multi Donor Fund strives to support a balanced BRR Strategy for Transition as well as the remaining reconstruction process by investing not only in gaps in funding transition. As the strategy and directly affected communities, but also supporting gaps are better understood, the Multi Donor Fund the lesser affected hinterlands, rebuilding key stands ready to provide assistance where needed infrastructure that provides access to larger parts and is currently reviewing two potential projects of the population and protecting resources across that would assist in filling the needs required for a the Province. In the near future, the cooperation smooth transition. with the Provincial Government on economic development will focus on the creation of further chances for equitable growth. Recovery of Livelihoods to Promote Growth and Sustainability Managing the Transition To date the restoration of the productive sectors, With less than one and a half years before the such as enterprises, fisheries or agriculture, Government's reconstruction program through has largely focused on the rehabilitation of BRR will officially be completed in April 2009, physical assets (land waste clearing, rehabilitation the transition process has begun. Over the next of fish ponds, irrigation programs). Only little 12-15 months, assets from both Government-led has been done to contribute to improving the reconstruction as well as other reconstruction competitiveness of those sectors. While Aceh has stakeholders will be transferred to government strong potential for growth, recent growth of the various entities. In order to ensure that this is done Acehnese economy happened in sectors that are in a relatively seamless way, it is of vital importance largely driven by the reconstruction. In Nias, due to that the Provincial and District/ Municipality Governments be enabled to receive and manage the remoteness of many areas of this island, it will reconstruction results in a sustainable manner. be important to strengthen and diversify income opportunities from agriculture and fisheries as The Provincial and District Governments in well as added value on local products. Once the Aceh will see a very significant increase of reconstruction is no longer driving the economy, budget allocations from the Special Autonomy the economy in both regions is likely to stagnate Funds in the upcoming years that should enable and further drive up unemployment, unless them to continue the recovery process and render economic recovery and development receives investments sustainable. Nias, on the contrary, strong support now. 26 Multi Donor Fund Progress Report IV 2007 CHAPTER 4 SAFEGUARDING THE INVESTMENTS OF RECONSTRUCTION To safeguard reconstruction investments and The Fund has already allocated US$50 million in support the prospect of a stabile and peaceful funds to an economic development financing future for Aceh and Nias, it will be important project for Aceh to support the agenda of the to ensure an economy is in place that can utilize Provincial Government of Aceh and financing and maintain the infrastructures built while also selected subprojects. Nias will be covered through encouraging ongoing investment and future a separate project that is currently being designed growth. The Multi Donor Fund in cooperation with in cooperation with the BRR and the Provincial the BRR and the Provincial Governments of Aceh Government of North Sumatra to address such and North Sumatra in 2007 prepared to invest in pressing issues as of lack of access to markets and this critical area. services. Women's participation in house building The Community-Based Settlement Rehabilitation and Reconstruction Project (REKOMPAK) encourages women to participate in the reconstruction of houses. Twenty seven percent of participants in REKOMPAK planning meetings were women. (Photographer: Nazriady, Field Assistant PMC REKOMPAK) Multi Donor Fund Progress Report IV 2007 27 Women's participation in development The Kecamatan Development Program promotes women's participation in implementation and decision making. Over 1 million women were involved in KDP planning processes. (Photographer: Siti Rahmah, World Bank Consultant) ANNEXES Annexes Project Portfolio No Projects Amount 1 Kecamatan Development Project (KDP) US$ 64.7 million 2 Urban Poverty Program (UPP) US$ 18.0 million Community-Based Settlement Rehabilitation and Reconstruction 3 US$ 90.0 million Project * 4 Reconstruction of Aceh Land Administration System Project (RALAS) US$ 28.5 million Technical Support for Badan Rehabilitasi dan Rekonstruksi NAD-Nias 5 US$ 14.7 million (TA to BRR) 6 Tsunami Recovery Waste Management Program (TRWMP) US$ 24.7 million Strengthening Civil Society Organization in Community Recovery in 7 US$ 6.0 million Aceh and Nias 8 Sea Delivery and Logistic Program US$ 24.7 million 9 Tsunami Recovery Port Redevelopment Program (TRRP) US$ 3.8 million 10 Local Resource-Based Road Works in Aceh and Nias US$ 6.4 million 11 Aceh Forest and Environment Project (AFEP) US$ 17.5 million 12 Flood Mitigation Program for Banda Aceh US$ 4.5 million 13 Infrastructure Reconstruction Enabling Program (IREP) US$ 42.0 million 14 Infrastructure Reconstruction Financing Facility (IRFF) * US$ 300 million Kecamatan Rehabilitation and Reconstruction Planning Project for 15 US$ 51.5 million Nias (KRRP) * 16 Support for Poor and Disadvantaged Areas Project (SPADA) * US$ 39.6 million 17 Lamno-Calang Road Maintenance Project US$ 1.5 million Total US$ 738.1 million * Co-financing with BRR. Multi Donor Fund Progress Report IV 2007 29 ANNEXES 1. Kecamatan Development Project (KDP) Overview The Kecamatan Development Program Grant Amount US$ 64.7 million (KDP) provides block grants directly to Implementation Period August 2005 ­ December 2008 villages for community-led reconstruction. Partner Agency World Bank This supports the restoration of community infrastructure in over 2,900 villages across Implementing Agency Ministry of Home Affairs Aceh and Nias. Disbursements US$ 64.7 million (100%) At KDP, communities decide on their priority needs in terms of tertiary infrastructure and support for economic activities or socially vulnerable groups. Block grants with a total value of US$ 49 million have been directly transferred to sub-districts where democratic decisions have been taken on which village receives what amount of funding. KDP has a solid multi-layered control mechanism to prevent corruption throughout planning and implementation of village projects. Challenges With Multi Donor Fund block grants all spent by communities it will be important to sustain community- led development activites from other sources of funding such as the national loan and the upcoming National Community Empowerment Program (PNPM) Achievements to date To date, all funds have been disbursed to sub-district accounts, and all villages have either completed their activities or are in the final stages of construction. More than 90% of the funds were used for infrastructure. All sub-projects are expected to be completed by March 2008. Results Targets* Achievements Roads repaired/constructed (km) 2,412 2,329 Bridges repaired/constructed (unit) 1,007 864 Irrigation and drainage (km) 931 891 Clean water projects (units) 598 588 Water storage reservoirs (units) 118 118 Sanitation units 939 754 Markets 21 19 School buildings 289 262 Health clinics/posts 33 33 Value of scholarships and number of recipients Us$ 380,604 US$ 329,967 6,052 6,022 Amount for loans US$ 379,000 US$ 346,544 Number of recipients · 4,045 · 3,694 Number of businesses/groups · 350 · 350 Persons employed through sub-projects n/a 426,141 Workdays generated n/a 4,922,281 Emergency relief funds US$ 4,528,898 US$ 4,502,586 * Final targets are still being verified through completion reports since changes to the originally planned scope of work can occur, e.g. due to cost increases. Rubber farmer on his way to town A rubber farmer from Aceh Timur is on his way to town where he will sell rubber. The Kecamatan Development Project support in this sub-district has allowed individuals who do not own plantations to acquire participations in existing plantations to farm a certain acreage for a set period of time. (Photographer: Milena Seibold, World Bank Consultant) 30 Multi Donor Fund Progress Report IV 2007 ANNEXES 2. Urban Poverty Project (UPP) Overview Grant Amount US$ 18.0 million The Urban Poverty Project (UPP) provides Implementation Period August 2005 ­ December 2009 block grants directly to 271 communities Partner Agency World Bank to rehabilitate and develop community infrastructure in Acehnese municipalities. Implementing Agency Ministry of Public Works Disbursements US$ 17.9 million UPP promotes a bottom-up participatory planning approach to identify core needs for the reconstruction and the resumption of economic activities in urban neighborhoods. It builds on democratically- elected neighborhood committees and the involvement of volunteers to conduct damage assessments, develop community development plans, and prioritize activities to be funded through the project. Community participation and empowerment are crucial to the success of the project. Challenges One ongoing challenge is coordination on the ground, since urban communities are much more attractive for third party investments as compared to remote rural areas. Replanning of community subprojects, after other parties had done civil works, has slowed down the project in some areas. Increasing tangible benefits for women is another challenge that the project has taken up. Achievements to date Implementation in most communities has been completed. Communities outside of Banda Aceh often opted to provide labor themselves instead of hiring workers. In this way, result could be increased significantly. The remaining 10% are in the final stages of completing works. Reacting to the need to increase direct benefits for women, UPP has also introduced a two-phased component for female empowerment in 2008. Phase I will provide 100 million Rupiah to 50 urban communities for strengthening female roles and participation in project implementation. Results Initial Achievements Plan Roads repaired/reconstructed in km 61 199 Reconstruction of bridges in m 6,150 1,353 Drainage (in km) 37 178 Clean water projects (units) 79 442 Sanitation units 22 278 School buildings - 20 Students receiving scholarships - 2,713 Value of scholarship (US$) - 49,891 Health clinics/posts 29 10 Waste disposal facilities 284 426 Work days generated - 861,980 Social Aid funds - 547,978 These initial priorities of communities have been adjusted when e.g. other actors have taken up planned subprojects and to increase the fund for social. Multi Donor Fund Progress Report IV 2007 31 ANNEXES 3. Community-Based Settlement Rehabilitation and Reconstruction Project (REKOMPAK) Overview The Community-Based Settlement Grant Amount US$ 90 million (incl. US$ 5 Rehabilitation and Reconstruction Project million BRR co-financing) provides grants to 130 communities to Implementation Period October 2005 ­ February 2009 rebuild and repair houses and rehabilitate Partner Agency World Bank their settlement infrastructure through a Implementing Agency Ministry of Public Works community-driven approach. Disbursements US$ 78.2 million Supported by this project, communities jointly map and assess the damages in their communities to establish construction needs and to identify housing beneficiaries. The project fills remaining housing gaps in 130 communities. Grant recipients will rebuild about 8,000 houses and repair about 7,000 houses. This is the only project that has supported the rehabilitation of houses. It also provides grants to rebuild community infrastructure based on jointly developed settlement plans. Housing facilitators strive to ensure that the quality of all works is up to standard. Challenges Due to low technical capacities of workers, reluctance to change and the burden of a strong oversight on each house, building earthquake safe houses has been a challenge. The project has reacted with a comprehensive audit of the quality of houses and introducing structural improvements. Raising the occupancy rate for new houses will be the next challenge. Achievements to date The community-driven approach has proven to be efficient in rebuilding houses within the span of a few months and creates strong ownership with the beneficiaries and a sense of pride in their achievements. However, occupancy of new houses is not optimal at 82% ­ the project investigates the reasons to develop a strategy. Results Targets Achievement Houses reconstructed 8,112* · Complete 4,434 55% · Under construction 3,410 43% Houses rehabilitated 7,077** · Complete 5,192 73% · Under construction 1,725 25% Community settlement plans 128 123 96% Short-term employment created (man-days) n/a 7,480,613 * 162 housing beneficiaries awaiting funding; 106 houses still in identification process. ** 83 rehabilitation beneficiaries awaiting funding; 77 houses still in identification process. A well planned village Based on consensus, community members in Lambung village Banda Aceh -- a REKOMPAK site -- agrees to provide some of their land for roads or for other village spatial planning purposes. (Photographer: Muhammad Nasir, World Bank, IT Aceh) 32 Multi Donor Fund Progress Report IV 2007 ANNEXES 4. Reconstruction of Aceh Land Administration System Project (RALAS) Overview The Reconstruction of Aceh Land Grant Amount US$ 28.5 million Administration System Project identifies Implementation Period June 2005 ­ December 2008 land ownership and issues land titles. Over Partner Agency World Bank three years, landowners in Aceh and Nias will receive legal title documents which will Implementing Agency National Land Administration provide them with a solid foundation for Agency (BPN) restarting their lives. Disbursements US$ 11.7 million All land ownership is restored through a multi-tiered process. Facilitated by NGOs or Land Administration Agency (BPN), communities conduct a land inventory process in accordance with BPN guidelines. BPN adjudicates the results by measuring the parcels and validating community agreements on ownership and boundary demarcation. Results of adjudication are publicized for four weeks, followed by registration and issuance of the land titles. All services are free of charge. The project also establishes a modern land administration data base to prevent the loss of documentation caused by future disasters. In addition, the project also restores some of the land administration buildings that were destroyed due to the tsunami. Challenges Progress has been slower than expected due to management issues and it will be important to speed up the delivery of titles as well as ensure that all newly built houses will have a land title to them. Achievements to date This project has strengthened local capacities in land management. It trained 680 NGO facilitators as well as 480 new BPN staff. Three land offices have been built or are in the final stages of completion. The project further had the following positive impacts: · Helped to jump-start community land mapping and adjudication of land ownership rights as a village/community based exercise · Female landownership through joint titling · Facilitated resolution of land disputes at the local level · Preventing land grabbing and speculation · Introduction of a computerizes land registration system Results Targets Achievements Land titles distributed 600,000 104,429 Joint titles/female ownership n/a 10% Land titles registered in land book 600,000 118,935 Land parcels out for public 600,000 Notification 157,880 Land parcels officially surveyed 600,000 by BPN 210,591 Community land mapping 600,000 211,650 Multi Donor Fund Progress Report IV 2007 33 ANNEXES 5. Technical Support for Badan Rehabilitasi dan Rekonstruksi NAD-Nias (TA to BRR) Overview The Technical Assistance to BRR Project Grant Amount US$ 14.7 million supports the Agency for Rehabilitation Implementation Period July 2005 ­ December 2007 and Reconstruction (BRR) to efficiently implement its mandate in planning, Partner Agency United Nations Development implementing, supervision and Programme coordination of the recovery process Implementing Agency BRR through provision of technical support Disbursements US$ 14.7 million and key services. This project enables BRR to enhance the quality of its operations and the implementation of the Government's reconstruction program in all relevant sectors. It provides national and international expertise tailored to the BRR's specific needs, both in the central as well as regional offices of the BRR. Project support consists of (i) recruitment of individual consultants, (ii) the procurement of key services for BRR operations, and (iii) and enhancing transparency in decision making and strengthened participation of all stakeholders. The project is nearing completion. Challenges In a dynamic environment it is a constant challenge for technical assistance to react to the immediate demands and the structural changes as witnessed by the BRR and to demonstrate the impact of technical assistance when it is strongly embedded in the wider operations. Achievements to date To date, the project has hired 57 technical experts for 463 person months to assist various BRR departments to affectively implement their tasks in areas such as housing, infrastructure (urban planning, coastal engineering, ports, irrigation, drainage, etc.), environment and timber management, spatial planning, and health, as well as overall coordination and good governance. These embedded services have been important to help define quality standards for the reconstruction process and implement them, both for the Government's program as well as the wider reconstruction program. Operational services such as legal support, support to human resource management, installation and management of IT have been contracted through external companies. Further, the BRR Anti-Corruption Unit and the Relocation Unit, that helps Acehnese households to relocate to more suitable land, were set up through this funding. Selected results since January 2007 Achievements* Support to guideline, strategy and policy development 151 Project proposals reviewed 123 BRR projects monitored for quality 192 Households relocated (target: 17,407) 7,258 * Due to the dynamic environment, targets are constantly evolving. 34 Multi Donor Fund Progress Report IV 2007 ANNEXES 6. Tsunami Recovery Waste Management Program (TRWMP) Overview The Tsunami Recovery Waste Grant Amount US$ 24.4 million Management Program builds Implementation Period September 2005 ­ December 2009 government capacity in waste Partner Agency United Nations Development management, creates immediate Programme (UNDP) employment and longer-term livelihoods in waste management and provides Implementing Agency UNDP cooperation with local benefits to the environment through governments collection, recovery and recycling of Disbursements US$ 14.4 million waste materials. The project provides a coordinated response to the public health concerns and environmental impacts of tsunami and earthquake waste, and municipal solid waste. Much of the disaster waste is recycled, with potential for use in rehabilitation and reconstruction. The project also creates employment through "cash for work" and sustainable livelihoods in recycling related activities. A second phase of the project will focus on making municipal waste services sustainable by focusing on capacity building as well as operations and maintenance activities. Challenges The main challenge is to provide sustainable services through securing adequate budget support for waste management activities, based on a strong buy-in of local governments and the population. Achievements to date The project removed 20% of all tsunami generated waste in Aceh, enabling 1,400 families to return to working their fields and fish ponds while also reducing environmental and health risks. Municipal waste services in eight districts have resumed supported through setting up or upgrading of interim land fills. In the next phase local governments will be supported in setting up permanent landfills. While two carpentry workshops have already been set up to recycle tsunami wood into furniture, further sustainable livelihood creation programs are currently under development. Results September 2007* Tsunami generated waste cleared (m3) 1,113,557 Municipal waste collected (m3) 114,961 Municipal waste services coverage in target areas (population) 47% Number and size of interim landfills (waste cells in ha) 10 (20 ha) Rice paddies/fish ponds rehabilitated (ha) 800 Private and government buildings demolished (#) 342 Tsunami wood stockpiled and processed for recycling (m3) 17,733/ 2,925 Agricultural grade compost produced (kg) 10,285 Recycled rubble provided for road construction (km) 87.4 Total short-term employment and 400,000 average persons employed per day since project start (man-days) 844 women / IDPs employed (%) 28/ 32 * These results cover Phase 1, where activities evolved as the project moved on. Phase 2 will report (Photographer: Muhammad Nasir, World against set targets. Bank, IT Aceh) Multi Donor Fund Progress Report IV 2007 35 ANNEXES 7. Strengthening Civil Society Organizations in Community Recovery in Aceh and Nias Overview This project builds technical and Grant Amount US$ 6.0 million organizational capacities of Non- Implementation Period December 2005 ­ February Governmental Organizations and 2010 Community-Based Organizations in Aceh Partner Agency United Nations Development and Nias. Small grants enable NGOs and Programme CBOs to engage in demand-oriented Implementing Agency UNDP reconstruction activities. Disbursements US$ 3.0 million The project also supports NGOs and their networks to set up local Resource Centers as focal points for activities, exchange, training, and dialogue with the local governments and civil society. Civil Society Organizations (CSO) will participate in training and compete for small grants that can be used either for monitoring of reconstruction activities or as community development grants. In this way, the project can support initiatives such as building basic social services and income generating activities. Challenges The project faces the challenge to fast track the disbursement of small grants due to start-up delays to ensure that especially monitoring activities will still have a positive impact on the reconstruction process. Achievements to date The Civil Society Resource Center in Aceh has been initiated, while a similar center in Nias is still in preparation. Small grants selection in Aceh is ongoing. Results September 2007 Small grants provided/ value of grants 16/ US$ 300,000 Beneficiaries of livelihood grants 530 men/339 women NGO staff trained (training of trainers) 12 men/2 women Small grants will enable community based organizations to contribute to the living conditions od communities in Aceh and Nias. 36 Multi Donor Fund Progress Report IV 2007 ANNEXES 8. Sea Delivery and Logistics Program Overview This project fills a vital need during the Grant Amount US$ 24.7 million reconstruction as it supports the logistics of Implementation Period March 2006 ­ February 2010 transportation of reconstruction materials. Partner Agency World Food Programme This support enables reconstruction agencies to move cargo critical for the Implementing Agency World Food Programme progress of reconstruction to the West Coast Disbursements US$ 24.7 million of Aceh and even remote landing sites on Nias and Simeulue. This project provided a full-fledged shipping service throughout 2006. Since then, shipping of goods has transitioned to the commercial sector, while the project continues to provide logistics support. It also continues to operate heavy equipment such as forklifts and reach stackers to enable off-loading of cargo in an efficient and safe manner. Challenges Since the project operates valuable heavy equipment, it will be a challenge to ensure that the relevant authorities that receive the equipment (e.g. ports authorities) are capable of operating and maintaining the equipment to enhance ports operations in Aceh and Nias. Achievements to date The project has transported a total of 98,185mt/256,006m³ of relief and reconstruction cargo during late 2005 and throughout 2006. Major discharging ports for the transported goods to date have been Gunung Sitoli on Nias, Sinabang on Simeulue, Calang and Pulo Aceh, three of which are island destinations. Transportation of goods to other remote beaches in Nias and Simeulue has been another major benefit of this project, since many locations cannot be reached by larger trucks. WFP is currently redesigning the project. It will continue to provide logistical support as well as facilitate much needed classroom and on-the-job training to port authorities. Such activity is important to ensure that newly built ports will be managed sustainably and heavy equipment be operated safely. This expansion in scope will complement the reconstruction of ports in Aceh and Nias through other Multi Donor Fund projects, where designs were prepared by the UNDP Ports Redevelopment project to be funded by the IRFF project. Results September 2007 Reconstruction materials shipped (until Dec 2006, metric tons) 98,185 mts Number of agencies that used shipping service (until Dec 2006) 82 users · International Red Cross Agencies 51% · UN Agencies 25% · Other NGO/reconstruction agencies 20% · Government 4% Cargo movement facilitated through logistics services (since Jan 2007, metric tons) about 50,000 mts Rental of heavy equipment has enabled the unloading of reconstruction materials at remote beaches of Simeulue and Nias. Multi Donor Fund Progress Report IV 2007 37 ANNEXES 9.Tsunami Recovery Port Redevelopment Program (TRPRP) Overview Grant Amount US$ 3.8 million This project provides physical designs Implementation Period December 2005 - December 2007 and further technical support for the Partner Agency United Nations Development reconstruction of major sea ports in Aceh Programme and Nias. Implementing Agency UNDP Disbursements US$ 3.6 million The project prepares detailed designs, environmental impact assessments and economic feasibility studies for port reconstruction. The project also improves the functionality of several ports through minor rehabilitation works and the construction of temporary wharves. All activities are coordinated with the BRR, the Provincial, District and Municipal Agencies for Transport, and the Department of Sea Communications and complement work done in other ports of Aceh. Activities are also based on close consultation with communities and representatives of local fishermen and other sea related stakeholders. Challenges The Lamno fisheries port has been built by the local government. For the other designs, it will me important to ensure that the designs will be implemented through other sources of funding (e.g. IRFF). Achievements to date This project has completed the redesign and the required assessments and studies of sea ports in Calang, Meulaboh, Sinabang and a river port in Lamno. In Gunung Sitoli the project reviewed a previous design so that works can be tendered. Temporary wharves in two locations and other works are completed, thus enabling better docking conditions and storage of cargo. In a next step these designs will be funded through BRR. Results Targets September 2007 Ports redesigned 5 5 Functionality of ports improved · land sites 2 1* · temporary wharves 2 2 * Scope was reduced (no works in Balohan) since local government had taken up the works. Temporary wharves have helped facilitate the transport to these locations. 38 Multi Donor Fund Progress Report IV 2007 ANNEXES 10. Local Resource-Based Road Works in Aceh and Nias Overview This project builds capacities of local Grant Amount US$ 6.4 million governments and contractors to Implementation Period January 2006 ­ December 2008 reconstruct and maintain roads with Partner Agency United Nations Development low-tech methods. It rehabilitates district Programme roads in five districts in Aceh and Nias, drawing on local resources, creating Implementing Agency International Labour Organization short-term and long-term employment Disbursements US$ 4.4 million opportunities. This project trains local governments to effectively manage reconstruction and maintenance of district level roads and small contractors to build roads with cost-effective local resource-based methods. Using local work force and a low-tech approach will enable contractors to compete for road construction and maintenance works in the recovery process and beyond. The project provides short-term employment opportunities for the local workforce in the rehabilitation of roads and longer-term opportunities in maintenance of roads. It pursues strong stakeholder involvement, including community involvement as an important part of the planning and implementation processes on the ground. Challenges The project met strong interest on the side of governments and contractors. The challenge is to introduce the local resource-based approach as a regular practice, something for which longer support would be needed than this project currently covers. Achievements to date The project has successfully engaged government officials and communities in the districts of Nias, Aceh Besar, Pidie and Bireuen in building their capacity in local resource-based methods. Results Initial targets September 2007 District roads rebuilt: completed (km) 98* 43 under construction (km) 48 Number of district government staff - Engineers and Supervisors 15 67 - Staff trained in managing public infrastructure 15 43 - % of women 30% 6% Number of local contractors trained - Engineers and Supervisors 60 95 - Managers trained in tendering procedures 20 71 Short-term employment created (days) 300,000* 123,659 - % of women (Aceh) 16.3% - % of women (Nias) 36.4% * Initial targets of 130 km/300,000 man-days were reduced due to cost increase and slight changes in methods since most works consist of reconstruction rather than rehabiliation. Road construction with resource-intensive methods creates local labor opportunities. Multi Donor Fund Progress Report IV 2007 39 ANNEXES 11. Aceh Forest and Environment Project (AFEP) Overview Grant Amount US$ 17.5 million The project helps protect the Leuser and Ulu Implementation Period February 2006 ­ June 2010 Masen forest ecosystems from illegal logging. Partner Agency World Bank Sound protection of the 3.3 million hectare area will help protect the water supply of 60% of the Implementing Agency Leuser International Acehnese population as well as South East Asia's Foundation; Fauna and Flora richest remaining biodiversity. International Disbursements US$ 4.7 million The project seeks to establish an appropriate balance between forest protection and economic benefits and livelihood opportunities to local communities. Protection is based on a multi-stakeholder governance framework, forest monitoring and sustainable forest management. Activities include capacity building for government forest and park management agencies. Environmental sustainability will further be promoted through support to spatial planning, environmental awareness campaigns, community-based rehabilitation activities, and through assessing the use of carbon trading as a funding mechanism for conservation. Challenges In order to sustain protection it is a critical challenge to provide alternative livelihoods to illegal logging ­ something that the project cannot achieve alone. Also, the project must remain flexible to adjust the project support to the political agenda of the Provincial Government, e.g. the recent moratorium on illegal logging. Achievements to date The project has developed a baseline for the status of the Leuser and Ulu Masen Ecosystems: at the end of 2006, 69% of both ecosystems were categorized as undisturbed forests, while the remaining areas were disturbed or even non-forested. It further worked towards the establishment of a multi-stakeholder governance framework, supported spatial planning, trained government officers and forest monitors, conducted monitoring of forest status (satellite, aerial, on-the-ground data), helped set up a Timber Information Center and conducted awareness creation activities (traditional leaders, schools etc.). Also, reforestation activities were continued. Results Targets by 2010 September 2007 Spatial plans (community level/ 40 villages/ 10 9 villages/ 1 district district level) mukims/ 7 districts Teachers trained in conservation 500 281 (43%) (female teachers in %) School Eco-clubs established 500 4 clubs (1,500 (number of members) members) Governmental forest guards trained 1,000 1,000 (89) (number of women) Conservation/Forestry officers 36 (2) trained (number of women) Community monitors trained 15 138 (1) (number of women) Forest replanted (ha) 5,000 670 Field Trip for village leaders A fi ve day study tour of traditional community leaders -- looking after housing, water sources and forestry -- from four locations in Geumpang, Pidie at the Teunom river streams between Pidie and Hilir in Aceh Jaya. (Photographer: Zulfan Monika, staff of Flora Fauna International) 40 Multi Donor Fund Progress Report IV 2007 ANNEXES 12. Flood Mitigation Program for Banda Aceh Overview Grant Amount US$ 4.5 million The Flood Mitigation Program for Banda Aceh Implementation Period April 2006 ­ June 2008 will help protect the central business area of Partner Agency World Bank Aceh's provincial capital Banda Aceh against flooding. Implementing Agency Muslim Aid Disbursements US$ 0.9 million Even in pre-tsunami times, Banda Aceh has been prone to flooding from tide and rains. The destruction of flood gates as well as pumping stations has resulted in periodic flooding of the low-lying areas of Banda Aceh. Without flood protection, reconstructed public and private goods are prone to new damage. The project installs state-of-the-art rubber flood valves and restores the pumping and drainage system in Drainage Zone 2. It closely coordinates with the overall drainage and flood prevention reconstruction plan of the Municipality. Government staff is trained to ensure maintenance and sustainability of the installed hardware. Challenges It has proven to be a challenge to implement this infrastructure project through an International NGO focused on community development. Further, to ensure that the reconstructed drainage infrastructure will not clog with waste, the project will need to cooperate and integrate its works with other waste management projects in the Banda Aceh urban areas. Achievements to date In early 2006, the project installed 11 flood valves to prevent tidal flooding and drain one of the most flood-prone areas of Banda Aceh. This has resulted in absence of flooding after rains and during high tide, leading to increased community satisfaction. Further, design plans were completed and tendering has begun for the reconstruction of three pumping stations and the installation of flood valves. Construction and rehabilitation of 4,400 meters of main drainage channels and rehabilitation of 12,300 meters of secondary drainage channels has begun. Main civil works are expected to be finished in 2008. Results Targets September 2007 Immediate flood reduction through flood valves 11 11 Drainage system reconstructed · Pumping stations 3 stations Works started · flood valves All flood valves in Zone 2 Design ongoing · drainage (reconstruction/ rehabilitation) 4.4km/ 12.3km Works started Duck bill flood valves are state-of-the-art technology to prevent tidal flooding and allow proper drainage at low maintenance cost. Multi Donor Fund Progress Report IV 2007 41 ANNEXES 13. Infrastructure Reconstruction Enabling Program (IREP) Overview The Infrastructure Reconstruction Enabling Grant Amount US$ 42.0 million Project (IREP) enables a coordinated Implementation Period July 2006 ­ September 2009 reconstruction of infrastructure in Aceh and Partner Agency World Bank Nias. It provides strategic planning, designs for physical infrastructure and implementation Implementing Agency BRR support. Disbursements US$ 3.6 million IREP provides technical assistance at two levels. An Infrastructure Program Management Team, under the supervision of the BRR, assists in strategic planning and coordination of all infrastructure activities for Aceh and Nias. Concurrently, technical teams design infrastructure and provide implementation support. Infrastructure covers national, provincial and district level. These designs will be funded through the Infrastructure Reconstruction Funding Facility, co-financed by the Multi Donor Fund and the BRR, and other funding sources. Local governments are closely involved in the project. The project aims to strengthen their capacities in strategic planning, project design, implementation and supervision as well as operation and maintenance to better prepare them for their role in the future development of the region. IREP will focus on ensuring that investments are sustainable, and that local governments are prepared for the post-BRR setting. Challenges With BRR completing its works at the end of 2008, the project will need to develop on time a transition strategy to support the proper hand-over of both the BRR's infrastructure program, as well as the IRFF program to the relevant authorities. Achievements to date Five IREP consultant teams have been mobilized, some with a few months delay. This explains the current low disbursement rate. IREP consultancy teams are providing ongoing support to the IRFF program and BRR's infrastructure program including the development of the strategic infrastructure plan, annual infrastructure investment plans, and annual procurement plans for the whole of Aceh and Nias. Teams also support the development of investment plans at the regional level for the west coast and Nias. To date, the teams have helped prepare a total of 30 investment packages to build roads on national, provincial and district level (666.3 km), three water systems and three ports. Six contracts are under construction while the others are at various stages of tendering and awarding (see IRFF fact sheet). A stone crushing plant to provide materials for the IREP/IRFF supported Meulaboh-Batas Sumut road is already operating. Together with the BRR, IREP technical assistance will provide quality assurance of materials and construction supervision of all IRFF funded works. 42 Multi Donor Fund Progress Report IV 2007 ANNEXES 14. Infrastructure Reconstruction Financing Facility (IRFF) Overview Grant Amount US$ 300.0 million (incl. US$191 The Infrastructure Reconstruction Financing million BRR co-financing) Facility (IRFF) is a BRR co-financed project Implementation Period July 2006 ­ December 2009 providing funds for key infrastructure projects identified through the Infrastructure Partner Agency World Bank Reconstruction Enabling Program. Implementing Agency BRR Disbursements US$ 10.0 million IRFF increases the flexibility of BRR to fund infrastructure activities, allowing projects to be funded as soon as they are ready. The project finances infrastructure at Province and District level, identified through the Infrastructure Reconstruction Enabling Project (IREP) framework. Like IREP, it strongly emphasizes capacity building for local and provincial governments. Together, both projects strive to contribute to the BRR's transition strategy of progressively involving local governments and eventually handing over decision- making and implementation responsibilities to them. Challenges In the upcoming months it will be critical to identify the right mechanisms that ensure that IRFF works with BRR co-financing can be completed on time, due to the phasing out of the Implementing Agency, the BRR, and the closure of BRR's 2008-budget in November 2008. Setting up a mechanism for handling contracts management and supervision after BRR exit and define new entit(ies) who will take over BRR's role, are key. Achievements to date The project has utilized local investment plans as well as the IREP strategy in developing the project pipeline which is reviewed on a regular basis. Environmental safeguards are ensured by the preparation of environmental impact assessments and associated management plans. To date, $170 million in contracts are either awarded, in the process of being awarded or in the tender process. Results September 2007* Under construction: 6 (US$25.7 m) National roads (number of contracts / km of road/ 184.5 km US$ amount) Number (value) of contracts cleared for awarding: 14 (US$82.2m) water systems 3 systems ports 3 ports roads 43.4 km Number (value) of contracts in bidding stage: 10 (US$63.5) Provincial/district roads 340.1 km National roads 98.3 km * Final targets for IRFF investments are still udner development. In its existing condition, this key interior link (connecting Meulaboh and Banda Aceh) on the provincial Geumbame Tutut road is prone to frequent failure. This road will be rehabilitated through the IREP/IRFF program; construction is expected to start in early 2008. Multi Donor Fund Progress Report IV 2007 43 ANNEXES 15. Kecamatan Rehabilitation and Reconstruction Planning Project for Nias (KRRP) Overview The Kecamatan Rehabilitation and Grant Amount $ 51.5 million (incl. $25.8 million Reconstruction Planning Project for BRR co-financing) Nias (KRRP) provides block grants for Implementation Period November 2006 ­ December 2009 the reconstruction of 5,000 houses, 100 Partner Agency World Bank schools and other public infrastructure in Nias. KRRP builds on the KDP Implementing Agency Ministry of Home Affairs through participatory planning process and BRR strives to enhance sectoral planning of Disbursements US$ 10.1 million district governments. Reconstruction in Nias is difficult due to the remoteness of many areas, overall poverty, and the generally poor quality of the island's infrastructure. Local government capacities were low even before the tsunami, and the cultural diversity of the island requires local solutions that respect community norms and values. The project builds on the experiences of the Aceh housing project REKOMPAK. The project contributes to the rehabilitation of two priority areas in Nias: housing and education. It will construct some 5,000 houses. It will also reconstruct 100 schools and 100 sub-district/village assembly halls. KRRP has a window for the promotion of cultural heritage and also strengthens local governments' ability to facilitate community-led planning in the future. Challenges The remoteness of many construction sites in Nias is a big challenge for all construction in Nias. It will be critical to monitor the effect on project implementation in terms of delays or increased costs. Achievements to date The project has completed its community-driven selection of beneficiaries for houses and infrastructure activities. It has also trained community members in the processes of community-led housing. Beneficiary housing groups are now in the final preparatory stages before receipt of funding to start construction. It is expected that all houses will be completed in 2008. Community road at Sirombu The Nias Kecamatan Rehabilitation and Reconstruction Project, linked to the Kecamatan Development Program, will help villagers to build a better road for vehicles to pass, especially when the rain comes. (Photographer: Catrini Kubontubuh, Consultant, World Bank ) 44 Multi Donor Fund Progress Report IV 2007 ANNEXES 16. Support for Poor and Disadvantaged Areas Project (SPADA) Overview The Support for Poor and Disadvantaged Project Amount US$ 39.6 million (incl. US$ 14.6 Areas Project (SPADA) strengthens district million BRR co-financing) government capacities to promote the Implementation Period February 2007 ­ June 2010 longer-term development of the province. It Partner Agency World Bank links the participatory sub-district planning process of KDP to district government Implementing Agency Ministry of Disadvantaged Areas decision-making, and provides block grants through BRR to improve public services and the recovery of Disbursements US$ 2.5 million economic infrastructure. District government capacities to provide adequate public services are low. It is important to strengthen their capacities ensuring that they will be able to provide sustainable, long-term development. This project provides block grants to all districts in Aceh and Nias to fund larger, technically demanding projects that emerge from sub-district planning within the KDP mechanism. Projects are selected by district development committees with thirty percent of grants reserved for health and education. The project will also promote the improvement of the economic environment through infrastructure investments. To strengthen the capacities of local governments, a combination of training, practical exercises, and technical support will be offered throughout the project. Challenges An ongoing challenge on the ground is to avoid overlaps between the upcoming capacity building activities of SPADA and those of other agencies and to define a minimum package of training to be implemented. Also, SPADA will face the challenge of involving local government resources when civil servants will increasingly focus on the transition and preparing to manage the Special Autonomy Funds at the same time. Achievements to date The project has taken up its activities in all 19 districts of Aceh. Special education and health consultants have been recruited and trained and are working on their initial task of conducting a health/ education district needs survey. Procurement and financial training for local government officials has started. The project has also provided planning grants to all districts. These grants will support the district governments identifying prioritized needs in participatory process which includes multiple stakeholders from Government agencies, civil society, universities, and sub-district representatives. Once district planning activities are complete, the project will disburse block grants in the first quarter of 2008 to build physical, health and educational infrastructures. The project works to asses the needs of district communities in education and health. Multi Donor Fund Progress Report IV 2007 45 ANNEXES 17. Lamno-Calang Road Maintenance Project Overview The Lamno-Calang Road Maintenance Grant Amount US$ 1.5 million Project maintains the 103 km stretch of Implementation Period October 2006 ­ December 2007 road from Lamno to Calang from November Partner Agency United Nations Development 2006 to October 2007, while permanent Programme rehabilitation works are put in place. In this way, smooth reconstruction of tsunami- Implementing Agency United Nations Development affected communities on the west coast Programme of Aceh is supported by is uninterrupted Disbursements US$ 1.3 million overland access . In 2006, the road stretch between Lamno-Calang was in a critical condition due to truck overloading and poor maintenance. This rendered the road sometimes impassable to traffic, especially during the rainy season. This project provides urgently needed continuous maintenance services to keep the road passable for a period of eight months. Permanent road works will be conducted through USAID for those parts of the road that align with the USAID design. USAID will take over from this project in October 2007. Achievements to date Priority emergency repairs have being largely completed and the project is expected to hand over responsibility to the USAID contractor in October. Results September 2007* Roads graveled (km) 52 Road shoulder maintenance (km) 103 Ditch excavation (km) 16 Bridge decks repaired (units) 18 Bailey bridges installed (units) 2/ third ongoing Short-term local labor created (man-days) 1,900 Even heavy equipment needs a break Heavy equipment leased by UNDP conduct routine activities in increasing the height of the roads and cleaning the shoulders at Lageuen, Aceh Jaya, to keep the road between Lamno and Calang open. (Photographer: Marzi Afriko, Researcher, Conflict Team World Bank) 46 Multi Donor Fund Progress Report IV 2007 Forest protection patrol at Leuser The Aceh Tamiang Forest Protection & Monitoring Unit, funded through the Aceh Forest and Environment Project, conducts activities to prevent illegal logging, hunting and opening of land. The main goal is to stop any illegal operations in the Leuser Ecosystem. The project also supports the protection of the Ulu Masen Ecosystem.(Photographer: Fakhrurradhi, Program Assistant UNDP) Contact the Multi Donor Fund Secretariat Jakarta Office Indonesia Stock Exchange Building Tower 2, 13th Floor | Jl. Jendral Sudirman Kav. 52-53, Jakarta 12190 Indonesia | Phone: +62 21 5299 3000 Aceh Office World Bank Office Aceh | Jl. Peurada Utama No. 11A, Gampong Peurada, Kec. Syiah Kuala, Banda Aceh 23115, Indonesia | Phone: +62 651 755 1176 mdf-indonesia@worldbank.org | www.multidonorfund.org