59566 MDF Progress Report December 2010 Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth MDF Office Jakarta Indonesia Stock Exchange Building Tower I/9th Floor Jl. Jend. Sudirman Kav. 52-53 Jakarta 12910 Indonesia Tel: (+6221) 5229-3000 Fax: (+6221) 5229-3111 www.multidonorfund.org Printed in 2010 This publication is the product of the Multi Donor Fund for Aceh and Nias. Acknowledgments This report was prepared by the Secretariat of the Multi Donor Fund with contributions from the Partner Agencies , , (UNDP WFP ILO and the World Bank) as well as the project teams. The Multi Donor Fund Secretariat is led by the MDF Manager Shamima Khan, with team members: Sarosh Khan, Safriza Sofyan, Anita Kendrick, Akil Abduljalil, Harry Masyrafah, Lina Lo, Puni Ayu Indrayanto, Shaun Parker, and Geumala Yatim. The team is supported by Rachmawati Swandari, Inge Susilo, Friesca Erwan and Olga Lambey. Editorial Support: Christopher Stewart (English) Printer: PT. Lumbung Kencana Makmur (this spread/cover) Children pose in front of their new neighborhood built with support from the MDF's CSRRP/ Rekompak project in Tubuk Lancang, Pidie Jaya district, Aceh. Photo: Tarmizy Harva for MDF MDF Progress Report December 2010 Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth "The MDF recognizes the importance of ensuring program sustainability so that benefits and impacts continue after the MDF closes." The Gido bridge and the sealed pathway connecting to it have reduced travel time and improved access to markets, schools and services for people living in three remote villages in Nias. Photo: Shaun Parker/MDF Secretariat iv Message from the Co-Chairs Message from the Co-Chairs of the MDF It has been six years since the devastating tsunami of Since its establishment, the MDF has taken a phased 2004 and earthquake of 2005 shattered the lives of approach to reconstruction, which began with meeting people in Aceh and Nias. Today traces of that devastation urgent needs for community recovery, followed by are barely visible, local economies are beginning to focusing on large infrastructure, environment, and thrive and people's lives have been rebuilt in better capacity building, and in the last phase laying the ways. The massive undertaking by the Government of foundation for sustainable economic development Indonesia for rehabilitation and reconstruction in the through recovery of livelihoods. affected regions has earned worldwide recognition as a successful multi-stakeholders effort in post disaster Today we are pleased to report that the program recovery. is achieving remarkable results, with projects on course to meet targets by closing in June 2012. The The Multi Donor Fund for Aceh and Nias (MDF) was community based housing approach that was adopted set up to support the government in leading this by the MDF has now become a model for post disaster immense effort. As the BRR completed its mandate in reconstruction. Infrastructure investments have April 2009, Bappenas has taken over the coordination revitalized economic activity and enhanced access role of reconstruction and rehabilitation for Aceh and for dispersed populations. Environment and waste Nias, including as one of the MDF Co-Chairs. The management investments have helped to mitigate strong commitment and leadership, both from the negative impacts of reconstruction. At this time we National Government of Indonesia and the Provincial are actively working to strengthen the capacity of local Governments of Aceh and North Sumatera have institutions and to lay the foundation for sustainable made possible the MDF's significant contribution to economic growth and continued development in Aceh the government's agenda of `building back better.' and Nias. The Government of Aceh, together with district governments, are committed to filling the remaining With a portfolio of mature projects, the MDF will reconstruction needs for infrastructure, livelihoods, remain focused and committed to the implementation and most importantly the housing sector gap, in line of projects in order to meet the desired objectives by with the Action Plan 2010-2012, as well as ensuring program end. The MDF also recognizes the importance operation and maintenance of investments made by of ensuring program sustainability such that MDF MDF and other development partners. benefits and impacts continue long after it closes. Therefore, capturing lessons learned and disseminating best practices will be an important part of MDF activities in the coming years. Armida S. Alisjahbana Irwandi Yusuf Stefan Koeberle Julian Wilson Minister Governor of Aceh Country Director Head of Delegation National Development Planning World Bank European Union v "The MDF is performing well and the majority of the active projects in the portfolio are nearing completion." Three generations of Wulandari's family live side by side in their new homes built through the CSRRP/Rekompak project. Wulandari, 55, lost her husband and one of her three daughters during the tsunami in 2004. She and her daughter are now rebuilding their lives in the new houses built by the MDF in Ulee Lheue village in the city of Banda Aceh, one of the areas worst hit by the wave. Photo: Abbie Trayler-Smith/Panos Pictures/Department for International Development (UK) vi Contents Contents Message from the Co-Chairs of the MDF ....................................................................................................... v Executive Summary .................................................................................................................................... 1 Portfolio Progress and Performance ....................................................................................................................1 MDF Operations and Communications ............................................................................................................... 2 Finances ..............................................................................................................................................................3 Outlook ...............................................................................................................................................................3 Chapter 1: MDF Operations and Communications .......................................................................................... 5 MDF Operations ..................................................................................................................................................5 Enhancing Stakeholder Engagements Through Communications .......................................................................7 Feature Story 1 - Crossing the Gido Bridge ........................................................................................................ 10 Chapter 2: Portfolio Progress and Performance ............................................................................................13 Overview of the MDF Portfolio .......................................................................................................................... 13 Recovery of Communities ..........................................................................................................................14 Reconstruction and Rehabilitation of Large Infrastructure and Transport...................................................16 Strengthening Governance and Capacity Building .....................................................................................18 Enhancing the Recovery Process ...............................................................................................................20 Sustaining the Environment .....................................................................................................................22 Economic Development and Livelihoods ..................................................................................................23 Challenges ........................................................................................................................................................24 Feature Story 2 - Banda Aceh's New Town Access Road: a Catalyst for Growth ................................................... 26 Chapter 3: MDF Finances ........................................................................................................................... 29 Pledges ............................................................................................................................................................ 29 Cash Available .................................................................................................................................................. 29 Funding Allocations and Commitments ............................................................................................................ 29 Disbursements ................................................................................................................................................. 31 Outlook ............................................................................................................................................................. 31 Feature Story 3 - Going Clean and Green in Aceh and Nias.................................................................................. 32 Chapter 4: Looking Ahead ......................................................................................................................... 35 Feature Story 4 - Supporting Postdisaster Recovery through Community-based Organizations in Nias ................ 38 Annexes | Project Portfolio ........................................................................................................................ 41 List of Acronyms and Abbreviations ........................................................................................................... 65 Map of Aceh and Nias ................................................................................................................................ 66 vii "Through its 23 projects, the MDF is delivering high- quality results." The SDLP provides training for key staff from 18 ports in Aceh and Nias to ensure the continued effective operation of the infrastructure investments made by the MDF. Approximately 80 percent of all ports staff in Aceh and Nias have been trained through the 138 training courses that have been held. These course materials are being handed over to the University of Syiah Kuala to be included in their Masters Degree program. Photo: SDLP collection Executive Summary Portfolio Progress and Performance Executive Summary Through its 23 projects, the MDF has delivered high- quality results. The majority of the projects in the portfolio are complete or nearing completion: eight projects have closed, 12 are under full implementation and three are in early stages of implementation. Following the devastating earthquakes and tsunami of Thousands of large and small infrastructure projects are December 2004 and March 2005, the Multi Donor Fund completed and making a contribution to revitalizing the for Aceh and Nias (MDF) has supported the Government economy. Homes and schools are occupied, community of Indonesia (GoI) in the reconstruction of Aceh and organizations are active and interconnected, local Nias. With US$678 million pooled in contributions from institutions are stronger and more resilient, and local 15 donors (about 10 percent of the overall reconstruction governments are better equipped to manage the funds), the MDF's goal is to contribute efficiently and remainder of reconstruction and future development. effectively to the reconstruction of a "better" Aceh Support to environmental sustainability has helped and Nias. This is achieved by filling gaps in the overall mitigate possible adverse impacts of reconstruction reconstruction in line with government priorities and on Aceh's valuable natural resources. Communities and bringing together key players from various levels of individuals, and especially women, are more empowered government, donors, civil society and communities. to play a role in planning for future development in It has also greatly contributed to harmonizing donor their communities. Livelihood opportunities have efforts, and has been a critical platform for policy improved for many through project activities and more dialogue, bringing together many stakeholders. The specifically targeted economic development work is MDF's Mid-Term Review (MTR) concluded that the just getting underway. overall approach and direction of the MDF is appropriate and relevant, and that it is performing well. Social sustainability concerns have also been incorporated into all aspects of the MDF's program. The reconstruction and rehabilitation of Aceh and Nias A strong gender dimension is embedded in projects is continuing through regular government processes. across the portfolio to ensure that women, and other Bappenas (Badan Perencanaan Pembangunan Nasional marginal groups, play a role in the community decision- or the National Development Planning Agency) plays a making processes. The MDF has also adopted a conflict- leading role in the MDF and is responsible for overall sensitive approach that takes into account the unique coordination of the reconstruction and rehabilitation. operating environment in Aceh, which encompasses The provincial governments of Aceh and North both postdisaster and postconflict, to the extent Sumatra are also playing an increasingly important role possible within its mandate. in the reconstruction and in implementing the Action Plan for the Continuation of the Reconstruction 2010- MDF projects are overcoming a variety of physical 12 ("Action Plan 2010-2012") together with the central and other implementation challenges. In Nias, factors government. The MDF provides direct support to the such as the remoteness of subproject sites, poor central and provincial government in these coordination transportation networks, long rainy seasons, lack of and implementation roles. access to quality materials, and difficulty in recruiting 1 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth and retaining qualified field staff have all contributed to portfolio progress and challenges. Currently the MDF delays for projects. All MDF projects have faced a new Secretariat is discussing exit strategies and closing set of challenges in transitioning to regular government monitoring and evaluation (M&E) arrangements processes and responsibility, especially the transition with projects, to ensure that the MDF's impact in the to regular government budget processes for the reconstruction of Aceh and Nias and important lessons disbursement of funds. These issues are compounded learned are captured for stakeholders and a wider by the tight timelines to complete implementation of audience. Lessons learned workshops are also being the last set of projects. All stakeholders have indicated held as part of the closing activities of several MDF their commitment to work together to facilitate smooth projects. Transparency and accountability within the project implementation. With this commitment, MDF portfolio is strengthened through complaints- the MDF is well-positioned to continue its strong handling mechanisms which have been set up and are performance until all projects close in June 2012. regularly monitored. Projects are further supported and showcased through MDF outreach activities. These events build a broader MDF Operations and Communications public awareness of the MDF's work and also give the public an opportunity to provide feedback to the MDF. The quality and implementation of projects are The MDF's outreach efforts engage stakeholders at regularly monitored to ensure the MDF portfolio is multiple levels in discussions on policies, approaches on track and delivering results of a high standard. The and strategic outcomes as well as on project activities, MDF Secretariat reports to the Steering Committee on and promote transparency and accountability. "The MDF generates lessons learned for future postdisaster recovery and reconstruction efforts." SPADA supports school rehabilitation and provides school-based management training as well as books, tools, and furniture to village schools. Students in a classroom of a state elementary school in Bando Baru, Kabupaten Aceh Utara. Photo: Akil Abduljalil/MDF Secretariat 2 Executive Summary Finances strategies, supporting the transfer of reconstruction assets to the relevant local authorities, and putting The MDF has allocated and committed US$646 million appropriate operations and maintenance arrangements to its 23 projects in line with GoI priorities. Approximately in place. The two economic development projects, the one-third of the MDF portfolio is allocated to the last round of infrastructure, and the continuing capacity infrastructure outcome area, and another one-third building and institutional strengthening agenda are to community recovery projects. Allocations to the focused on ensuring that the impacts of reconstruction remaining four areas of economic development and will be felt by the people of Aceh and Nias long after the livelihoods, sustaining the environment, capacity close of the MDF. building and governance, and enhancing the overall recovery process together represent the remaining Currently MDF funds are fully allocated to approved one-third of MDF funds allocated. About 77 percent of projects. 1 Some unspent residual funds will remain funds allocated and committed to projects have been as individual projects close, and these will be disbursed (US$500 million), and projects have spent reprogrammed to the extent possible within the US$436 million or 87 percent of funds disbursed. limited remaining timeframe. The GoI has prioritized the use of any unspent residual funds for strengthening The MDF has provided the government the flexibility capacity of local institutions and the reconstruction of to implement projects through line ministries and local infrastructure within the framework of existing other development partners. About 73 percent of projects. MDF funds have been channeled to projects through the government's national budget. Approximately 23 The MDF will be assessing outcomes and the impact of percent of funds are implemented in partnership with its efforts with a focus on lessons learned. Recent local United Nations agencies (United Nations Development and global natural disasters have prompted renewed Programme - UNDP, WFP and ILO), and the remaining interest in the successful models and approaches 4 percent through NGOs. The government has also pioneered under the MDF. The MDF is strengthening led the appointment of Partner and Implementing programs and activities at all levels of government, Agencies for projects funded by the MDF, taking improving capacity for ongoing development as well as into consideration comparative advantages and core responding to possible future disasters. Nationally and competencies. globally, the MDF is providing feedback into the setting up of new disaster-response programs. Building on its Outlook experience with the MDF, the Government of Indonesia has set up the Indonesia Multi Donor Fund Facility for The MDF remains committed to continuing the Disaster Recovery (IMDFF-DR) for disaster response support for reconstruction until the end of its mandate. and prevention. The MDF will continue to generate Continued strong coordination and cooperation lessons that can contribute to fragile situations and from all partners is needed to ensure the smooth to recovery and reconstruction efforts in future implementation of remaining projects by MDF closing. postdisaster settings around the world. Remaining MDF projects are focused on helping to lay the foundation for economic growth and a secure and 1 Taking into account the reduction in donor pledges as detailed in stable future in Aceh. Projects are implementing exit Chapter 3: Finances. 3 "Project monitoring and feedback are important for ensuring quality of the MDF portfolio." The IRFF project is financing a range of infrastructure reconstruction works including this clean water supply system in Pria Laut village, Sabang, Aceh. Photo: Tarmizy Harva for MDF 4 Chapter 1: MDF Operations and Communications MDF. Other key stakeholders, such as the United Chapter 1: MDF Operations Nations Coordinator and a representative of the international NGO community, participate in the and Communications Steering Committee as representatives of development partners and to support coordination in the field. The Steering Committee is co-chaired by the Indonesian Government (Bappenas), the Government of Aceh, the The Multi Donor Fund (MDF) remains committed European Union as the largest donor and the World to supporting the Government of Indonesia (GoI) Bank as Trustee. in the continued reconstruction of Aceh and Nias. Established in April 2005, the MDF pools US$678 million in contributions from 15 donors to support the implementation of the government's rehabilitation MDF Operations and reconstruction efforts after the December 2004 earthquake and tsunami and the subsequent March Bappenas is leading the coordination of the 2005 earthquake. The 15 donors contributing to the reconstruction and rehabilitation activities following MDF are: the European Union, the Netherlands, the the closure of BRR. Interim transitional arrangements United Kingdom, the World Bank, Sweden, Denmark, that were put into place after BRR closed have ended. Norway, Germany, Canada, the Asian Development The MDF now functions completely within the context Bank, the United States of America, Belgium, Finland, of the GoI's regular agencies and processes, and in New Zealand and Ireland. close coordination with the provincial governments of Aceh and North Sumatra. The interim reconstruction The MDF is governed by a Steering Committee with coordination agencies that were set up at provincial representatives from the government, donors, trustee government level to support the transition from BRR and civil society. At the request of the government, to regular government processes have closed. At this the World Bank was appointed as the Trustee of the time, MDF funds are fully committed to approved projects. Any unspent, residual funds from ongoing projects may be allocated to other existing projects if endorsed by Bappenas in its coordination role, working closely with the provincial Governments of Aceh and North Sumatra. The MDF is performing well and the majority of the active projects in the portfolio are nearing completion. Projects going into their final phase are now focused on developing exit strategies to promote sustainability. The last wave of new projects and existing projects that have been allocated additional funding are focused on capacity building, economic development and key infrastructure to support economic growth, as CBLR3 and RACBP use a local resource-based approach to contract a local workforce and use appropriate road construction technologies and work methods to complete road construction and maintenance. Photo: Shaun Parker/MDF Secretariat 5 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth prioritized by the government. A portfolio review of the the MDF's closing date, any remaining funds would be MDF was presented by the Partner Agencies (UNDP, ILO, allocated to existing projects in line with the priorities WFP and the World Bank) to the Steering Committee in of the government. September 2010. The Steering Committee expressed its satisfaction with the progress and results of project The MDF has fully committed available funds to implementation and the strong financial management approved projects. At a meeting of the Co-Chairs of the of the MDF provided by the Trustee. MDF Steering Committee convened in March 2010, the co-chair representatives, including the Government of The MDF continues to work closely with Bappenas Aceh, supported the top two priority needs outlined by and the governments of Aceh and North Sumatra to Bappenas as infrastructure investments and continued ensure the delivery of high-quality projects through coordination of the reconstruction. The Steering a phased approach and as prioritized by the GoI. Committee subsequently endorsed additional financing Bappenas, in close consultation with the Governments for the TA to BRR and Bappenas Project implemented of Aceh and North Sumatra, has developed the Action by UNDP, and additional financing for the IRFF project Plan for the Continuation of the Reconstruction and to construct a road along the west coast of Aceh. Rehabilitation of Aceh and Nias 2010-2012. The Action Plan identifies gaps in the reconstruction effort, with an implementation plan ending in December 2012. Guided by the government's priorities, the overall goal of the MDF is to contribute efficiently and effectively to the reconstruction of a "better" Aceh and Nias by filling the gaps identified in the government strategy documents. The projects not only reconstruct housing and infrastructure and rehabilitate the economy in accordance with these strategy documents, but also address social concerns such as reducing poverty, improving livelihoods, and enhancing gender equity. The MDF continues to follow up on recommendations from the Mid-Term Review (MTR) within the context of GoI priorities, and within the scope and timeline of "A strong gender dimension is the MDF. The MDF's comprehensive MTR process was embedded in MDF projects to completed in November 2009. The findings reiterate ensure that women play a role in the message that the MDF portfolio is performing the community decision-making well, and its overall direction is appropriate and processes." relevant. The results of the MTR were presented to the Steering Committee on November 16, 2009. Based on the recommendations of the MTR, the Steering Committee in March 2010 decided that, due to the short implementation time remaining before A member of a producer group in Lam Cot village, Kabupaten Aceh Besar, Aceh, making the traditional snack of kue karah (karah cake). She and other members of her group were able to revitalize their income-generating activities with the help of microfinance loans from the KDP. Photo: Irwansyah Putra for MDF 6 Chapter 1: MDF Operations and Communications Key decisions related to the use of possible residual funds from closed projects were reached during this reporting period. With all remaining funds fully committed, the Steering Committee in September 2010 responded to remaining government needs by agreeing that any possible residual funds would be prioritized for capacity building of local institutions and the reconstruction of local infrastructure. This would need to be funded through existing projects. Project monitoring and feedback are important for ensuring the quality of the MDF portfolio. Regular supervision missions were carried out by the Partner An elementary school building in Nias constructed by the MDF through the KRRP project. The project has so far Agencies to monitor project progress and quality, completed 32 schools and 4,300 houses in Nias. often attended by the MDF Secretariat and donors. Photo: Anita Kendrick/MDF Secretariat Consultations are being held with project teams and Partner Agencies to discuss exit strategies and closing M&E arrangements to ensure that the MDF's impact in the reconstruction of Aceh and Nias and important Enhancing Stakeholder Engagements lessons learned are captured for stakeholders and for Through Communications use in future postdisaster recovery programs. Feedback received through various complaints-handling The MDF plays an important coordination role in mechanisms continues to be regularly monitored and bringing together key players from various levels of follow-up actions are taken as required. government, donors and civil society. The partnerships being forged among these stakeholders have allowed The MDF will continue working closely with central, the MDF to effectively respond to the recovery needs provincial and local governments to support the of Aceh and Nias. During this reporting period the MDF reconstruction agenda of the affected areas until the stakeholder engagements had mostly been aimed end of the MDF's mandate. The MDF donor community at discussing project progress and the sustainability continues to maintain a keen interest in the operations of MDF investments. At the last Steering Committee of the MDF. With representatives at Technical Review meeting, it was also agreed that the capturing of and Steering Committee level, the donors continue lessons learned and dissemination of best practices to be closely involved in monitoring MDF progress with key stakeholders will be part of MDF activities and results, as well as in decision making on funding towards closing. This is to ensure that the full impact allocations and other key strategic issues. All MDF of the program is well-documented and disseminated projects will close in June 2012, and the MDF program for future postdisaster recovery efforts in Indonesia will end in December 2012. and the rest of the world. The MDF provides a unique forum for discussion of policies and strategies on reconstruction of Aceh and Nias with a broad range of stakeholders. 7 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth Various outreach activities have been conducted project also conducted closing workshops during 2010 to support project implementation and to enhance which included lessons learned. The Sea Delivery and awareness of the MDF program. These activities range Logistics Programme (SDLP) conducted a workshop from maintaining relationships with local governments, on lessons learned in November 2010. More of these communities and NGOs, disseminating information types of workshop and closing events are planned as through publications and other communications projects wrap up their activities. material, as well as holding workshops or other public events which often generate media interest. These The MDF and its projects also utilize formal media outreach efforts are not only effective in communicating outlets in order to reach a wider audience and to increase progress, but also in responding to and tackling various public profile. In addition to holding events which drew project-related issues. During this reporting period the media attention, the MDF also proactively engaged MDF and its projects have conducted over 250 outreach with the local media to disseminate information and activities. Lessons learned workshops have been held as part of the closing activities of several MDF projects in the past year. The Community-based Settlement Rehabilitation and Reconstruction Project (CSRRP, also known by its Indonesian acronym, Rekompak), held several activities in conjunction with its closing in April 2010. These included a one-day lessons learned workshop, a media tour to project sites and an official closing and handover ceremony. The lessons learned workshop included the participation of diverse stakeholders and captured valuable lessons and experiences from the implementation of the innovative community-based housing approach. It concluded that a community- based approach to housing reconstruction, working through government systems but with communities in the lead, can be an effective strategy for postdisaster housing reconstruction. Over 100 participants attended the Rekompak workshop, including the local and central governments (Ministry of Public Works, BNPB 2 , and Bappenas), donor representatives, local NGOs, and local think tanks/academics. The Kecamatan Development "The MDF will continue to work Program (KDP) and Support to Strengthen the Role with central, provincial and local and Capacity of Civil Society Organizations (CSO) governments until the end of its mandate." 2 BNPB: Badan Nasional Penanggulangan Bencana. National Agency for Disaster Management. Governor of Aceh, Irwandy Yusuf (left) officially handed over CSSRP/Rekompak's final report to one of the 14 regents and mayors during the project's closing ceremony in May 2010. Also in the picture is the previous Country Director of the World Bank for Indonesia, Joachim von Amsberg (center). Photo: M. Nasir/MDF Secretariat 8 Chapter 1: MDF Operations and Communications address various concerns which have surfaced from The MDF promotes transparency and accountability time to time in the public domain. Media outlets in its program implementation. All MDF-funded mostly being used are radio and local newspapers, projects are required to establish complaint-handling using interactive talk shows and article placements. In mechanisms through which stakeholders, particularly order to encourage positive media coverage from local beneficiaries, can channel their feedback, queries and national media, the MDF also held special media and grievances regarding project targeting and events such as journalist site visits/press tours and implementation. These mechanisms are continually media gatherings. During this reporting period, the monitored. Nearly all complaints and queries received MDF and its projects have conducted over 15 radio talk were handled by the respective projects through direct shows and have generated over 50 instances of positive verification with the communities and complainants media coverage. involved. Recent local and global natural disasters have prompted renewed interest in the MDF. Considered by many as one of the most successful multidonor trust funds for postdisaster rehabilitation and reconstruction in the world, the MDF has become a valuable source of information for those implementing postdisaster reconstruction and recovery programs in other settings. Numerous organizations, including prominent development agencies and universities, governments of disaster-affected countries, and the media have sought lessons learned and best practices from the MDF Secretariat, the World Bank as Trustee, the Government of Indonesia, the Government of Aceh and North Sumatra, and individual project teams. Such requests have come from such diverse sources as BBC Radio, The Washington Post, the Government of Haiti, and various units and programs within the World Bank such as the Multi Donor Trust Fund in Pakistan. Lessons from the MDF are therefore helping to inform global responses to disasters and fragile situations. 9 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth Feature Story 1 Crossing the Gido Bridge Providing year-round safe access for communities On the island of Nias it rains, on average, 268 days a year. Heavy rainfall and flash floods are common. Bridges and other water crossings on the island are mostly made of natural materials that degrade rapidly and are susceptible to being swept away by turbulent currents. When bridges are in poor repair, communities are often temporarily isolated or have to find alternative routes which often make it more expensive and time consuming to reach main access roads. The village of Loloana'a, located in the subdistrict of Gido, Nias district, North Sumatra, covers an area of 562 hectares of hilly terrain, with 96 households and a population of 521 people. Rubber cultivation provides the main livelihood for most of Gido's inhabitants. To supplement their income, most people also produce cacao, bananas and betel nut. The rubber latex produced in Loloana'a is sold every Friday at the "pekan" or weekly market in Hiliweto village. Rubber latex is also commonly sold to collectors in the nearby village of Lahemo. Access to neighboring villages and the "pekan" was formerly via a dirt path and a river crossing which became impassable during the rainy season. Since the construction of two vital pieces of infrastructure supported by the Multi Donor Fund for Aceh and Nias ­ a suspension bridge and associated sealed pathway ­ access to markets, schools, and other services has greatly improved for inhabitants of Gido Loloana'a. The trail made of concrete slabs was constructed by the Nias Kecamatan-based Reconstruction and Rehabilitation Planning Project (KRRP, also known as PNPM-Rehabilitasi Rekonstruksi Pulau Nias or PNPM- R2PN), while the bridge was constructed by the Capacity Building for Local Resource-based Rural Roads (CBLR3) project, implemented by the International Labour Organization (ILO) in partnership with the United Nations Development Programme (UNDP). The synergy of these two MDF projects has multiplied the benefits of each one for the surrounding communities. The Gido bridge was completed in September 2010 by community work groups and contractors with technical input from the ILO. Construction commenced in 2008. Mr. Walter Illi, ILO Team Leader for Nias Rural Access Students returning from school using the Gido suspension bridge built by the ILO- implemented rural roads project in Nias. During the rainy season it was previously unsafe for children to cross the river. The bridge has made it possible for children in three isolated communities to now go to school year round. Photo: Akil Abduljalil/MDF Secretariat 10 Chapter 1: MDF Operations and Communications and Capacity-building Project (RACBP) and previously with the CBLR3 project, has been working in Nias since 2005. On the two projects implemented by ILO he comments, "Communities need durable transport infrastructure. Local transport infrastructure providers need technical advisory services in choosing the right technology for Nias conditions. We try to respond to these twin challenges by identifying where similar terrains exist and where specialized expertise is tested and proven successful." Construction of trail suspension bridges is not a new concept in Indonesia, including Nias, and the construction methods have been used for centuries. Most of these traditional designs, however, relied on the use of high-quality hardwood timber as one of the key construction materials. Hardwood timber has become a rare commodity in recent times and, for environmental reasons, should no longer be used even in areas where it is still available. As hardwood became more difficult to obtain, insufficient research into alternative construction materials and methods was done, and construction design standards were not adjusted to take into account the substitute materials used. As a result, many trail bridges in Nias today are considered unsafe. In addition, continued deforestation has resulted in higher flood peaks on many rivers. As no feasible solution to these challenges was apparent, the ILO project team sought assistance from the Nepal program of Helvetas, an international NGO that has been involved in the construction of trail suspension bridges in several countries for over 50 years. The Gido bridge is a prototype for the more than 1,100 meters of bridges "Rain or shine, I can now cross the that will be rehabilitated and constructed under Nias-RACBP until 2012. Gido River! So now my children The ILO team will be working closely with engineers from Nepal to create can go to school, I can bring my standard technical designs and specifications that can easily be adapted and produce to the market quicker, replicated in Nias's conditions. Through capacity building delivered by ILO and traders and aid workers can and Nepali engineers from Helvetas, local governments and infrastructure providers will be observing and acquiring the skills required to build these regularly visit us in the village." effective, durable bridges and water crossings under the Nias-RACBP. The concrete pathway built under KRRP provides direct access to the Gido bridge for Akhelawe, Hiliotalua, and Sihare'o Sogaeadu villages. Stretching for more than a kilometer, the 1.5 meters wide pathway, together with the bridge, provides the villages with safe, year-round access for pedestrians and motorbikes to schools, markets and other transportation networks. The settlements of Lahemo and Lewa-Lewa have also benefited from this new pathway which has provided them with ease of access to their kebun karet (rubber garden plots). The pathway, which was constructed at a cost of Rp289 million (US$ 32,000),3 took just over a year to complete. Auxiliary infrastructure constructed under this project includes two box culverts and a 26 meter long retaining wall. The project employed 56 workers (six of whom were women), and was completed on October 28, 2010. Being able to cross the river and get their products to market throughout the year has enhanced the economic prospects for residents of the villages on the other side of the Gido bridge, and promises a better future for their children who can now attend school regularly year round. The impact of the construction of the suspension bridge and sealed pathway is summed up by Ibu Refensi Suriana Ndraha, a happy beneficiary and resident of Loloana'a village: "Rain or shine, I can now cross the Gido River! So now my children can go to school, I can bring my produce to the market quicker, and traders and aid workers can regularly visit us in the village." 3 The exchange rate at September 30, 2010 was US$ 1 = Rp. 9,015. 11 "Significant outcomes are being achieved as the MDF portfolio matures." The MDF has helped to restore vital transportation networks across Aceh and Nias through the construction and rehabilitation of national, provincial and district roads. These roads not only restored linkages destroyed during the disasters but help to lay the foundation for future economic growth and development. Photo: Irwansyah Putra for MDF 12 Chapter 2: Portfolio Progress and Performance enhancing the overall recovery process, and economic Chapter 2: Portfolio Progress development and livelihoods. and Performance Based on the guidance of the Steering Committee, the MDF strategy has been a phased approach to support for reconstruction. The first phase met urgent needs for recovery of communities and rehabilitation Remarkable achievements have been made towards of transportation networks. This was followed by a recovery and reconstruction in Aceh and Nias in the focus on large infrastructure, mitigating the impacts six years since the devastating natural disasters of of reconstruction on the environment, and capacity December 2004 and March 2005. The Multi Donor building. The last phase is focused on economic Fund has contributed about 10 percent of the overall development and continued strengthening of local reconstruction funds, and has responded effectively to capacity. This last set of projects includes the EDFF, the priorities and needs identified by the Government Nias LEDP and RACBP. of Indonesia. The MDF has also made a positive contribution to harmonizing donor efforts and to The MDF has now fully allocated all of its financial increasing the effectiveness and efficiency of the resources. The last new project in the MDF portfolio, the reconstruction process. Nias LEDP, was endorsed by the Steering Committee in May 2010. Additional financing was also endorsed Reconstruction through the MDF will continue until for three other projects during the past year­the IRFF, December 2012. Bappenas has developed the Action the Nias RACBP (to expand coverage to additional Plan for the Continuation of the Reconstruction and subdistricts), and for TA to BRR and Bappenas to Rehabilitation of Aceh and Nias 2010-2012 which has enhance coordination of the Action Plan 2010-2012 identified gaps and prioritized needs for both Aceh through to the end of the MDF mandate. and Nias. The Action Plan coincides with the remaining years of the MDF's mandate for contributing to the The MDF portfolio is performing well and projects are recovery of Aceh and Nias until December 2012. on course to meet targets by closing. The portfolio's Economic development is a priority as the government first and second wave of projects are in their final sees jobs and economic growth as vital to maintaining phases or already closed. Eight projects have closed, the gains of the reconstruction and peace in Aceh. 12 are under full implementation and three are in the early stages of implementation. Several projects have extended their closing dates in order to meet their objectives. All projects under the MDF will close by Overview of the MDF Portfolio June 30, 2012, with the overall program closing on December 30, 2012. The MDF portfolio consists of 23 projects in six outcome areas. MDF funds are allocated to projects Significant outcomes are being achieved as the in the areas of community recovery, rehabilitation and portfolio matures. The MDF has provided a forum reconstruction of large infrastructure and transport, for policy dialogue on Aceh reconstruction that has strengthening governance, sustaining the environment, brought together many stakeholders. The community- 13 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth based housing approach is a model for postdisaster The KDP, UPP, CSRRP-Rekompak and KRRP reconstruction, and infrastructure investments have projects have also delivered impressive results in the revitalized economic activity and access across Aceh reconstruction of community infrastructure. These and Nias. Environmental outcomes are positive, projects have assisted communities to construct and the potential for major negative impacts on the 2,623 kilometers of village roads, 7.51 kilometers environment from the reconstruction process has of bridges, and 1,549 kilometers of irrigation and been avoided. In addition, the MDF is contributing to drainage channels. In addition, 483 schools and 395 strengthened local institutions and sustained economic local government offices or village/town halls have growth. been built or rehabilitated. Water and sanitation improvements include nearly 6,000 wells or other sources of clean water and 1,195 sanitation units. Beneficiary satisfaction rates for these projects are Recovery of Communities generally high, signifying the importance of ownership and empowerment to the recovery of communities. The first group of projects endorsed by the MDF supported the recovery of communities through the RALAS has made an important contribution to the existing mechanism and approach of Community- reconstruction effort with more than 220,000 land driven Development (CDD) projects. Leveraging certificates distributed. Of these, 63,000 were issued in the existing KDP and Urban Poverty Project (UPP) the names of women or as joint titles. Although a series programs and approach, this group of five projects either scaled up existing programs in Aceh and Nias (KDP and UPP), or adapted the CDD model to deliver specific reconstruction needs such as housing (CSRRP- Rekompak and the Kecamatan-based Reconstruction and Rehabilitation Planning Project or KRRP) or land titling (Reconstruction of Aceh Land Administration System - RALAS). The MDF's Community Recovery projects have achieved impressive results in rebuilding houses and infrastructure at the community level. These projects demonstrated that communities can take the lead in the decision-making role for their own recovery even in the most devastating circumstances. Housing targets were reached in Aceh in 2010 and are nearing completion in Nias. More than 15,000 houses have been reconstructed or rehabilitated in Aceh with an occupancy rate of 97 percent, while an additional 4,500 houses are completed or under construction in Nias. Communities took the lead in reconstruction of housing under the CSRRP/Rekompak in villages across Aceh. This photo shows newly constructed houses in Lambung village, Banda Aceh. Photo: Tarmizy Harva for MDF 14 Chapter 2: Portfolio Progress and Performance of management and implementation issues prevented has incorporated women's empowerment into project RALAS from fully meeting its targets, the project design to ensure that women play a role in the nevertheless contributed to restoring land rights and community decision-making process. These projects rebuilding the land administration system in Aceh. have piloted efforts to move from not only increasing Training and capacity building in community-driven women's participation in community planning activities adjudication was provided to over 700 government but to also finding ways of ensuring their voices are staff and will continue to have an impact in terms heard. UPP developed a component to enhance of government's delivery of land-titling services. women's empowerment by setting aside specific Perhaps most importantly, increased public awareness funds for their activities. Both KDP and UPP also and understanding of land-titling procedures and supported women's empowerment through providing property rights of women will impact on demand for microfinance opportunities for women. RALAS played these services in the future, as well as the demand for an important role in raising awareness of women's transparent delivery of such services. land rights and by supporting joint land titling. Almost 30 percent of the land titles issued under the project The MDF's community recovery projects have also were joint titles or in women's names. Lessons from made a lasting impact on community empowerment these experiences are feeding into ongoing PNPM across Aceh and Nias. The community processes programming in Aceh and Nias and across Indonesia. created, and high rates of participation, including the strong participation of women, have resulted in a The success of the MDF's community recovery strong sense of ownership over the infrastructure built projects has demonstrated that community-driven and have established expectations for a greater role for approaches can be successful in a postdisaster community members in development planning. The situation and the lessons learned are already being outcomes initiated at the community level across Aceh used in other postdisaster contexts. The Aceh housing and Nias through these projects are likely to continue as project (CSRRP-Rekompak) became a model for the the MDF-supported KDP and UPP projects are merged Government of Indonesia's housing reconstruction under the national government's PNPM 4 program. In program in Java following the 2006 earthquake. More addition, in Aceh the PNPM is supplemented by the than 200,000 houses were constructed adopting this provincial-level BKPG (Bantuan Keuangan Peumakmue approach. This model has been further adapted in Gampong, or the Financial Assistance for Village West Sumatra following the 2009 earthquake. The Welfare) program. These programs will continue the national government has adopted the community- community planning and infrastructure development based approach as part of its overall strategy for of KDP and UPP in all gampong or villages in Aceh. The postdisaster housing reconstruction. In addition, a KDP and KRRP projects in Nias will also be merged with delegation from Haiti recently visited Aceh and Java the national PNPM Rural program. to study the CDD postdisaster reconstruction projects, taking away impressive lessons for replication. Both A strong gender dimension is embedded in the MDF's KDP and CSRRP-Rekompak conducted lessons learned community recovery projects. Each of these projects workshops at project closing to discuss lessons learned, both for future work in Aceh and Indonesia as well as for other postdisaster scenarios around the world. 4 PNPM: Program Nasional Pemberdayaan Masyarakat (National Community Empowerment Program). 15 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth The MDF's work in the community recovery area is infrastructure, which included ports, national, provincial drawing to a close. Three of the projects completed and district roads, water supply and treatment systems, their objectives for supporting the recovery of drainage systems, sanitary landfills and community- communities and closed during the past year (KDP, level infrastructure. Capacity building and attention UPP, CSRRP-Rekompak). The land-titling project to the needs of marginalized groups have been strong (RALAS) closed in June 2009, having strengthened elements present in all these reconstruction projects. institutional capacity on land adjudication. The Nias housing project, KRRP, continues implementation and Three of MDF's infrastructure projects have reached will complete its activities by June 2011. completion, having delivered effective, quality results and fulfilling their objectives. The Lamno-Calang Road maintenance project allowed the major west coast corridor to remain functional in the first two years Reconstruction and Rehabilitation of following the tsunami. The project closed in December Large Infrastructure and Transport 2007 after other donors took over the reconstruction of the west coast corridor road. The Banda Aceh Together with the Government of Indonesia, the Flood Mitigation Project (BAFMP) is completed and MDF is a major contributor to the reconstruction and protects the central business area of Aceh's capital rehabilitation of large infrastructure in Aceh and Nias. In against flooding. The drainage system in this area line with the priorities of the Government of Indonesia's was rehabilitated through construction of three Action Plan 2010-2012, and the priorities identified by pumping stations, the installation of flood valves and the provincial Governments of Aceh and North Sumatra the reconstruction of drainage channels. The Tsunami (for Nias), the MDF has made considerable investments Recovery Ports Redevelopment Programme (TRPRP) in infrastructure reconstruction and rehabilitation in helped to restore essential transportation networks Aceh and Nias. Approximately 35 percent of the MDF's after the tsunami and earthquake by providing physical funds have been allocated to this sector. In addition, designs and technical support for the reconstruction significant contributions have also been made to of major seaports and a river port. The redevelopment community-level infrastructure through the MDF's of these ports ensured that equipment and materials community recovery programs. could be delivered to isolated areas for the rebuilding of communities and livelihoods during the early The MDF took a multifaceted approach to the recovery reconstruction phase. The impact of these projects of infrastructure and transport after the tsunami. extended to all parties involved in the reconstruction Early support to the reconstruction included logistical and rehabilitation, including GoI, NGOs, CSOs, and support for the transport of reconstruction materials multilateral and bilateral donors, by providing access to affected areas. The SDLP provided a shipping to affected areas. service from 2005 to 2007, enabling reconstruction agencies to move cargo critical for the progress of The three remaining active large infrastructure recovery and reconstruction to the west coast of Aceh projects (Infrastructure Reconstruction Enabling and remote landing sites on Nias and Simeulue. After Program or IREP, SDLP and IRFF) are performing the initial recovery stage, MDF funds were allocated well and are expected to deliver on their targets by through various projects for the reconstruction of large their closing dates. Through the MDF's two major 16 Chapter 2: Portfolio Progress and Performance infrastructure reconstruction projects, the IREP and The final strategic investment from the MDF in the IRFF, approximately 500 kilometers of national large-scale infrastructure has been endorsed by the and provincial roads, 87 kilometers of district roads, Steering Committee. In April 2010, US$37 million was five ports and 11 water supply systems have been approved as additional financing for the IRFF project to completed. These two projects work in tandem to construct a strategic 50 kilometer stretch of national support the design, finance and implementation of road from Calang to Meulaboh on the west coast of more than 52 separate infrastructure subprojects Aceh, including the Kuala Bubon Bridge. This project is implemented by the Government of Indonesia. Fifty of expected to provide livelihood benefits and access to these subprojects have already been completed. The basic services for more than 900,000 inhabitants. With SDLP project is currently focusing on the longer-term this additional financing, total MDF funds allocated sustainability of the ports through the training of ports to IRFF now amount to US$137 million, making it the staff at all levels at 18 ports throughout Aceh and Nias largest single project in the MDF portfolio. Together to enable efficient operations of these facilities and with GoI cofinancing, the total amount invested in the assets into the future. reconstruction of large infrastructure through IRFF is approximately US$245 million. Large Infrastructure and Transport Projects Project Funds Allocated (US$ millions) Banda Aceh Flood Mitigation Project (BAFMP) 6.50 Infrastructure Reconstruction Enabling Program (IREP) 42.00 Infrastructure Reconstruction Financing Facility (IRFF) 136.70 Lamno-Calang Road Maintenance Project 1.46 Sea Delivery and Logistics Programme (SDLP) 25.03 Tsunami Recovery Ports Redevelopment Programme (TRPRP) 3.78 Nias Rural Access and Capacity-Building Project (RACBP) 11.80 Total 227.27 To ensure the sustained functioning of the drainage system in Banda Aceh, a "trash management program" was introduced under the Flood Mitigation project. The pilot program was quickly scaled up by the city because of its early success. The strong commitment of the local government and the community is expected to enhance the sustainability of the project which completed implementation and closed at the end of 2009. Photo: Irwansyah Putra for MDF 17 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth The MDF is playing a key role in creating infrastructure local NGOs and CSOs registered and trained through networks throughout Aceh and Nias. Export ports have the project, there is now a roster readily available been constructed at Lhokseumawe and Kuala Langsa for rapid response deployment. The CSO project in Aceh, providing gateways to international markets. provided 142 small grants to CSOs and community- In Gunung Sitoli, Nias, and Sinabang, Simeulue, the based organizations (CBOs) in Aceh and Nias to domestic ports have been reconstructed. The extensive deliver 75 income-generating projects, 34 women's national, provincial and district roads constructed empowerment initiatives, and 33 basic social services through IRFF, ILO roads projects in Aceh and Nias enhancements reaching a total of more than 33,000 (CBLR3, RACBP) and the MDF's community recovery beneficiaries, nearly 44 percent of whom are women. projects are contributing to a transportation network which has opened up areas that were previously difficult The CSO project introduced community-based to reach. In addition, local labor use has generated monitoring (CBM) of the rehabilitation and economic benefits in communities. Local government reconstruction efforts in Aceh and Nias. This capacities have been enhanced in the operations and approach built mutual trust and respect between local management of local infrastructure networks. governments and the CSOs/CBOs, resulting in better coordination and collaboration in community planning. The project paid special attention to mainstreaming gender into CSO policies, processes and practices. Strengthening Governance and Overall, the activities related to women's interests Capacity Building improved the beneficiaries' quality of life and provided the financial and social capital necessary to allow them Postdisaster institution building through good to develop their potential in planning, decision making governance and capacity strengthening has been and income generation. one of the cornerstones of the MDF since inception. Strengthening capacity for improved local governance The CBLR3 Project (also called the ILO rural roads is built into almost all MDF projects throughout project project) works with Bappeda to build capacity at implementation and also to ensure sustainability of district and community levels to use local resources the investments after the reconstruction ends. This is for construction of local roads in Aceh and Nias. The the primary objective for three projects in the portfolio project has completed 140 kilometers and conducted targeting civil society, district government (SPADA), maintenance work on 230 kilometers of rural (district and the Ministry of Public Works and local road and subdistrict) roads using this approach. The project contractors (CBLR3). Three other projects (AGTP, NITP, is implemented by ILO under UNDP administration and TA to BRR and Bappenas) have directly contributed and overall supervision. The Nias RACBP builds to enhancing the efficiency and effectiveness of the capacity to apply this local resource-based approach recovery process. to road construction in Nias. The project uses technical expertise and designs from Nepal for suspension MDF provided the reconstruction effort's most bridges that are well-suited for river crossings in the extensive support to build civil society networks in hilly terrain of Nias. Aceh and Nias through the CSO Project which closed on May 30, 2010. With more than 100 facilitators from 18 Chapter 2: Portfolio Progress and Performance CBLR3 has had significant success integrating the The SPADA Project in Aceh and Nias is part of the local resource-based approach for district road government's national strategy to strengthen district reconstruction and maintenance. The project has government capacity to incorporate bottom-up trained local contractors and Public Works staff and planning and needs analysis into district planning supervisors in the application of the local resource- and budgeting. SPADA's approach is contributing to based approach for road and civil works construction. the government's efforts to develop rural poor and With construction near completion, the project has disadvantaged areas to create economic development shifted its focus to enabling an environment that will and improved services for its citizens. Despite some sustain the resource-based approach to community delays in implementation due to a range of challenges, road construction in Aceh, with an extension to June the project shows significant results in capacity 2011. The experience and lessons learned through building. The project has trained 75 justice officials implementation of the CBLR3 has facilitated a smooth and 50 NGO staff to provide judicial services and legal startup of the RACBP. education, and more than 800 trainers, facilitators and village heads have been trained in conflict resolution. Strengthening Governance and Capacity Building Projects Project Funds Allocated (US$ millions) Capacity Building for Local Resource-based Rural Roads (CBLR3) 11.80 Support for Poor and Disadvantaged Areas (SPADA) 25.60 Support to Strengthen the Role and Capacity of CSOs 5.99 Total 43.39 The Support to Strengthen CSOs project provides small grants to build the capacity of community based organizations (CBOs) while also supporting income-generating activities initiated by the community such as this women's group in Gapong Pande village in Banda Aceh. Photo: Muslim Aid Collection for CSO Project 19 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth Nearly 12,000 teachers have received training through for the development of policies, legal framework, the project. The program is being subsumed under the projects and programs, and monitoring tools and national PNPM Rural program, demonstrating MDF's systems for the reconstruction and recovery process alignment with the GoI's national development strategy. from July 2005 until the closure of BRR in 2009. Using the bottom-up planning approach, SPADA has also supported the construction or rehabilitation of MDF support for the coordination of reconstruction 196 kilometers of roads, six kilometers of bridges, 18 has continued since the closure of BRR. The MDF was kilometers of drainage or irrigation channels, 373 water designed to be a gap-filling instrument to address outlets, 50 village schools and 14 health centers. national priorities, with government at the helm and implementation primarily through government The MDF has promoted gender equity in all its projects. institutions and systems. Three projects aimed at The CSO, UPP, KDP, RALAS, KRRP, CBLR3, and SPADA enhancing the effectiveness and efficiency of the projects have piloted gender-inclusive approaches that overall reconstruction and recovery processes through will provide lessons for national PNPM programs and support to national and provincial levels of government lessons for other projects and contexts. MDF projects, are in full implementation. where relevant, collect gender-disaggregated data in their monitoring and evaluation arrangement to track The TA to BRR and Bappenas project continues gender-sensitive implementation. The NITP organized to support the government's coordination of a gender mainstreaming workshop in August 2010 reconstruction and rehabilitation activities after as a preliminary effort to mainstream gender in the the closure of the BRR. The TA to BRR was originally development process in Nias. All regional government designed to provide BRR with support for its technical working units (Satuan Kerja Perangkat Daerah or and operational needs from July 2005 to April 2009. SKPDs) attended the workshop, and almost one-half of Endorsed by the MDF Steering Committee in February the participants were women. A gender working group 2010, Phase Three of the project is now focusing on was formed during the workshop and will work with all continuing and completing the rehabilitation and SKPDs on mainstreaming gender issues in the planning, reconstruction agenda in Aceh and Nias with Bappenas budgeting and monitoring processes of government leading coordination efforts at the central level and departments. Bappedas at the provincial level. The AGTP and the NITP provide support at the provincial and district level respectively to enhance Enhancing the Recovery Process efficient and effective recovery in Aceh and Nias. Together with TA to BRR and Bappenas, AGTP and The MDF has played a strategic role in enhancing the NITP are working closely with all levels of government effectiveness and efficiency of the overall recovery and and line ministries to pave the way toward completing reconstruction process. The MDF provided technical the transfer of rehabilitation and reconstruction assets. assistance and operational support to the BRR in its AGTP and NITP further build awareness and know-how role as coordinator of the nearly US$7 billion overall on planning and budgeting operations and maintenance reconstruction program to achieve its mandate in a funds for reconstruction assets to ensure long-lasting timely and transparent manner. This included support benefits of the MDF investments. 20 Chapter 2: Portfolio Progress and Performance The MDF also enhances the recovery process most of its resources to build capacity and sustainability through support for disaster risk reduction (DRR) and through support to a local institution, the Tsunami preparedness through the DRR-A project. DRR-A and Disaster Mitigation Research Center (TDMRC) of is one of the two MDF projects focusing on DRR the Syiah Kuala University. The project has also been issues. NITP also incorporates a DRR component in instrumental in the establishment of the Aceh Disaster its capacity-strengthening work in Nias. DRR-A was Alleviation Agency (Badan Penanggulangan Bencana designed to institutionalize DRR in long-term local- Aceh - BPBA). The project overall has established a level development processes. It is making a unique and wide range of partnerships with government, media, important contribution to preparedness for possible NGOs and academia and is fostering ownership of the future disasters in Aceh by working at all levels, from the DRR agenda with all SKPDs. community to provincial level, on DRR. DRR-A devotes Enhancing the Recovery Process Projects Project Funds Allocated (US$ millions) TA for BRR and Bappenas 24.48 Disaster Risk Reduction ­ Aceh (DRR-A) 9.87 Aceh Governance Transformation Programme (AGTP) 13.98 Nias Island Transformation Programme (NITP) 3.89 Total 52.22 Residents moving quickly along an escape route during the tsunami simulation drill in Ulee Lheue village of Kecamatan Meuraksa, Banda Aceh. Photo: Tarmizy Harva for MDF 21 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth Sustaining the Environment The TRWMP is now in its third phase and is focused on capacity-building activities to ensure sustainable solid The MDF has been committed to ensuring waste management infrastructure and services are in environmental sustainability during the reconstruction place after the project closes. The project is preparing for process since its beginning. Environmental sustainability the construction of one regional permanent landfill and is a cross-cutting theme for projects across the MDF eight district landfills, including one in Nias. In addition portfolio, and is the primary focus of two specific to physical infrastructure, the project also focuses on projects. The AFEP was created specifically to mitigate building capacity within local governments to manage the potential negative impact that reconstruction might sustainable solid waste management systems, including have on Aceh's vital forest ecosystems. The TRWMP the introduction of fee-based services so that these was initially designed to assist with the cleanup after systems can continue after the project ends. TRWMP the tsunami and is making an important contribution continues to support waste management-related to long-term environmental sustainability for Aceh and livelihood activities such as recycling and the clearing Nias through creation of a sustainable system of solid of tsunami sediment from agricultural land in order waste management. to help farmers resume their pre-tsunami livelihoods. Pilot activities promote sustainable income generation and raise awareness amongst the community on the Sustaining the Environment Projects Project Funds Allocated (US$ millions) Aceh Forest and Environment Project (AFEP) 17.53 Tsunami Recovery Waste Management Programme (TRWMP) 39.40 Total 56.93 School children take part in environmental awareness building activities provided by the ranger service in the Ulu Masen Ecosystem. Run by FFI under the AFEP, the lessons are part of a program of outreach and capacity building which aims to educate children about the benefits that the forest can provide for them, and to avoid a new generation of illegal loggers. Photo: Abbie Trayler-Smith/Panos Pictures/Department for International Development (UK) 22 Chapter 2: Portfolio Progress and Performance need and benefits of proper solid waste management, completed, economic development and livelihoods while diverting plastics and other recyclables from have become a major concern for the Governments district landfills. of Aceh and North Sumatra. Two MDF projects that are now in the early implementation phase, the EDFF AFEP employs a multipronged approach to build and the LEDP, will directly address improvements in capacity in both the government and communities livelihoods and economic development. to protect and sustainably manage Aceh's forest resources. The project has shown strong results in the The EDFF project is piloting a unique arrangement areas of monitoring of illegal logging and supporting to support local economic development in Aceh. law enforcement, mitigating human-wildlife conflicts, The new model created for implementing the EDFF mapping forest resources, developing local forest involves international and local NGOs working in close management plans, and public awareness. The partnership with provincial government. This US$50 project has supported the Government of Aceh's Aceh million project will fund eight subprojects selected Green agenda as well as a multistakeholder forest through a transparent process to support economic governance framework, and has promoted forest development in Aceh's key economic sectors of protection with an emphasis on capacity building for agriculture and fisheries, including important export government forest and park management agencies. crops such as coffee and cacao. While operationalizing The successful Community Rangers program in the the new institutional arrangements for this project Ulu Masen ecosystem recruits former illegal loggers, has resulted in some initial delays, all subprojects are poachers and ex-combatants and provides alternative now underway. Subprojects are being implemented employment to monitor the forests for illegal activities. in almost every district, covering activities which AFEP is now in its last year of implementation and is include the provision of agricultural tools and inputs, focusing on strengthening core activities such as forest development of cooperatives, quality enhancement, monitoring, forest management, and environmental improved access to markets, access to finance, and awareness activities to ensure a lasting impact after women's empowerment, among others. the project ends. The Nias LEDP, also in the early implementation phase, aims to improve livelihoods and facilitate economic development in Nias. The project will provide technical Economic Development and Livelihoods assistance and inputs to women and mixed gender groups in a range of rural livelihood activities with The MDF is moving into the final phase of post-tsunami a focus on rice and the key cash crops of cacao and and earthquake recovery through active support for rubber. The LEDP will work closely with another project economic development and livelihoods recovery. The in Nias, the RACBP implemented by ILO which provides MDF's strategy of a phased approach followed the improved access in rural areas. The two projects government's priorities for filling gaps in community will work in the same economic areas, supporting recovery and infrastructure first, with economic agricultural improvements through increased access development and livelihood activities designed for to markets and services, thereby facilitating better a later stage in the reconstruction process. Now livelihood opportunities and economic development in that much of the physical reconstruction has been Nias. 23 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth Since its inception, the MDF has supported the component of SPADA that strengthens the capacity of recovery of livelihoods through projects across the provincial government to issue business licenses. EDFF portfolio. The MDF has generated more than 17.6 and Nias LEDP now provide a direct focus on livelihoods million paid workdays through projects including KDP, recovery by laying the foundation for improved long- UPP, CSRRP-Rekompak, KRRP, CBLR3, RACBP, and term economic growth in key productive sectors in TRWMP, providing a much needed cash infusion to Aceh and Nias. affected families during recovery and reconstruction. In addition, three projects provided microfinance to affected households (CSO, KDP and UPP), and support to small businesses related to recycling and waste Challenges management were supported by the TRWMP. The AFEP has supported agro-forestry and a number of The MDF operates in a complex context which makes alternative livelihood options for communities living reconstruction extremely challenging. Aceh presents on the edge of protected forests. It has also provided unique challenges as a postdisaster recovery situation direct employment to community members through embedded in a postconflict environment and, as the Community Ranger program. The business such, has required a reconstruction approach that is environment in Aceh has been improved through a sensitive and mindful of this context. In addition, local Economic Development and Livelihoods Projects Project Funds Allocated (US$ millions) Economic Development Financing Facility (EDFF) 50.00 Nias Livelihoods and Economic Development Project (LEDP) 8.20 Total 58.20 A farmer picks ripe cacao pods in his cacao garden plot in Tunong village, Kecamatan Pante Raja, Kabupaten Pidie Jaya. Both the Nias LEDP and Aceh EDFF projects are working to increase farmers' incomes through improved production and marketing of cacao and other export crops. Photo: Tarmizy Harva for MDF 24 Chapter 2: Portfolio Progress and Performance government and civil society capacity was low as a Capacity building and transfer of reconstruction result of the years of conflict. Transport, infrastructure, assets to the relevant authorities present the most the economy and social services had also been severely critical future challenge. Capacity building has been impacted. Layered on this context was the extreme loss a key component of all MDF projects and the MDF's of life, morale and capacity in the many communities Mid-Term Review identified this broad-based approach that were destroyed by the earthquake and tsunami. as the MDF's greatest contribution to the overall reconstruction. Capacity-building needs remain, The difficult environment for project implementation however, and will extend beyond the mandate of the has been even more of a challenge in Nias. Extreme MDF. The MDF is supporting national and provincial remoteness and poor transportation networks, a long governments in the process of verification and rainy season, lack of access to quality materials, and transfer of reconstruction assets to local authorities difficulty in recruiting and retaining qualified field staff through the AGTP, NITP and TA to BRR and Bappenas have contributed to delays for most projects there. projects, but a significant amount of work on this task In addition, Nias presents a unique set of challenges remains. Sustainability of reconstruction assets will for continued economic recovery and growth and depend crucially on effective transfer, and subsequent sustaining the benefits of reconstruction. These implications for operations and maintenance. physical difficulties have been compounded by the political subdivision of the island into four districts The last set of projects face tight timelines to complete and one municipality, compared to the previous two project implementation by their closing dates in June districts. This subdivision has placed a further strain 2012. These include the two important economic on available local government capacity for effective development and livelihoods projects, Aceh EDFF project implementation and has stretched an already and Nias LEDP, and two infrastructure projects, the small budget even further. Definition of authorities Nias RACBP, and the additional financing for IRFF to and jurisdiction continue to evolve, rendering decision complete the national road on the west coast of Aceh. making difficult during transition. The MDF Steering Committee at its September 2010 meeting stressed to all stakeholders the importance The transition of responsibility for the reconstruction of working closely to ensure that these projects can to regular government agencies at national, provincial implement all activities by the end of the MDF mandate and district levels following the closure of BRR created in 2012. a new set of challenges. Putting new institutional arrangements in place and the return to regular MDF projects have creatively addressed challenges. government processes has resulted in delayed startup This has been done through developing project design and implementation for several key projects. The and implementation strategies in partnership with transition to regular government budget processes stakeholders. As a result, several projects in the MDF for the disbursement of funds, in particular, has portfolio have extended their closing dates in order been a challenge, as delays in approval of the central to allow sufficient time to achieve project objectives. government's annual budget (DIPA) has delayed With this commitment, the MDF is well-positioned implementation for a number of MDF projects and to continue its strong performance until all projects continues to present an ongoing challenge. close. 25 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth Feature Story 2 Banda Aceh's New Town Access Road: a Catalyst for Growth The two-kilometer highway south of Banda Aceh, the capital of Aceh province, was still unnamed three months after it was officially opened in April 2009. But the four-lane freeway, known by its project title­New Town Access Road Stage 2­had already attracted considerable economic activity. On both sides of the road, starting from the intersection called Simpang Surabaya to the Sukarno-Hatta Artery Road, new shop houses, homes and restaurants have mushroomed. Some of the more imposing buildings include the Aceh Prosecutor's Office, a Toyota showroom, and a brand new petrol station run by the state-owned Pertamina oil company. A large terminal nearby serves inter-provincial buses traveling to and from areas like Medan, in neighboring North Sumatra. Photo: Abbie Trayler-Smith/Panos Pictures/Department for International Development (UK) 26 Chapter 2: Portfolio Progress and Performance The New Town Access Road Stage 2 is a brand new thoroughfare, unlike the coastal highways destroyed by the 2004 tsunami. The road was part of the Banda Aceh master plan to expand the city limits and build a network of roads supporting the expansion. "Its construction was accelerated so that the area can develop faster and revive the local economy," says Banda Aceh Vice-mayor Illiza Sa'aduddin Djamal. As an extension of the New Town Access Road Stage 1, built by BRR, the Stage 2 Road was identified by local authorities as a project to be developed by the Infrastructure Reconstruction Enabling Program (IREP) with support from the Infrastructure Reconstruction Financing Facility (IRFF), two projects supported by the Multi Donor Fund for Aceh and Nias and implemented by the Department of Public Works. To the residents of Batoh village, located off the new highway, many changes have taken place, most of them for the better. Tarmiji, 52, owner of the Dhapu Kopu ("Coffee Kitchen" in Acehnese) restaurant, is one good example. Not long after the tsunami, when land values plunged to their lowest level, Tarmiji took a chance and bought two shops at the strategic corner where the New Town Access Road crosses the Simpang Surabaya-Lampeuneureut Artery Road. About a year ago, Tarmiji decided to invest in a coffee shop to serve the growing number of residents in the neighborhood. Many survivors of the tsunami, traumatized by their losses, had moved away from the coast and settled further inland, some of them in areas bordering the new road. Given the Acehnese penchant "Its construction was accelerated for drinking coffee, it was the right decision. His two-floor coffee so that the area can develop faster shop­one of only two of this size in Banda Aceh­is standing room and revive the local economy." only when he regularly shows soccer matches on his gigantic 2 by 1.5 meter flat screen monitor. "I will be doing a lot better when the new road is really busy," says Tarmiji. At the other end of the road, where it forms a T-junction with the Sukarno-Hatta ring road, retired school teacher Juned Daud, who owns and runs a shop selling school supplies, shares the same optimism. As keucik or chief of Lampeueurut village, he has seen the value of land around the new road, once a patchwork of swamp and paddy fields, rise almost tenfold. He is amazed at the number of people trying to buy land around the new road, despite the spiraling prices. As the village chief, he is happy that the area where he lives no longer floods during the rainy season, thanks to the drains built to catch excess water and channel it elsewhere. The area behind his house, for example, used to be perennially inundated during the monsoons, and the water would lie stagnant for long periods of time, creating health hazards. Today, the water has disappeared and the area is dry all year round. In addition to providing the catalyst for economic development, the new road has also made it easier for residents to commute to school and to go about their other daily activities. Rusnah, 35, a housewife and mother whose husband works at a nearby construction site, says the new road means that her three children do not need to walk through swamps to reach their schools. It has also cut her travel time into town to do her marketing. "Instead of walking to the nearest mini-bus station about two kilometers away across swamp land, I just wait by the new road for the labi-labi (small public transport vehicle) to come along," says Rusnah. 27 "The MDF has allocated and committed US$646 million to 23 projects." A women's producer group working on embroidery at a garments workshop located at Lhee Blang village, Kabupaten Aceh Besar, Aceh. Producer groups such as these have received microfinance loans from the KDP. Photo: Irwansyah Putra for MDF 28 Chapter 3: MDF Finances Cash Available Chapter 3: MDF Finances To date, the MDF has received US$620 million or about 91 percent of the total pledges from its donors (Table 3-1). Cash projections are monitored on a regular basis to ensure that the MDF has sufficient funds to continue financing project activities throughout the life of the Pledges MDF. As of September 30, 2010, the Multi Donor Fund has a total of US$678 5 million in pledges from 15 different donors. Not all pledges are made in US Dollars and some Funding Allocations and Commitments have not yet been received. The total amount pledged, therefore, fluctuates according to the exchange rate at As of September 30, 2010, the MDF has allocated the time that funds are made available to the MDF, as and committed US$646 million to 23 projects.6 These well as the date of the MDF reporting. projects were initiated in six outcome areas supported Table 3.1: MDF Pledges and Contributions as of September 30, 2010* Pledge amount and Contribution Source Cash Received US$ million Agreements signed in US$ million European Union 269.10 243.86 Government of Netherlands 171.60 139.20 Government of United Kingdom 68.50 68.50 Government of Canada 20.22 20.22 World Bank 25.00 25.00 Government of Sweden 20.72 20.72 Government of Norway 19.57 19.57 Government of Denmark 18.03 18.03 Government of Germany 13.93 13.93 Government of Belgium 11.05 11.05 Government of Finland 10.13 10.13 Asian Development Bank 10.00 10.00 Government of United States 10.00 10.00 Government of New Zealand 8.80 8.80 Government of Ireland 1.20 1.20 Total Contributions 677.85 620.21 *Exchange rate as at September 30, 2009; Source: World Bank. 5 The Netherlands has indicated that it will be reducing its 6 Allocations to specific projects appear in Chapter 2. contribution by US$25 million as a result of contraction of development aid due to the global financial crisis. 29 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth by the MDF. These include: recovery of communities, Figure 3.1: MDF Financing of Reconstruction by Outcome Area reconstruction of large infrastructure and transport, Sustaining Economic Recovery of the Environment Development Communities capacity building and governance, supporting the 9% 9% 32% sustainable management of the environment, enhancing the efficiency and effectiveness of the overall recovery process, and economic development Capacity Building & Governance and livelihoods. The Government of Indonesia 9% committed to contribute an additional US$168 million Enhancing the in cofinancing for four projects in the MDF portfolio. Recovery Process 6% Infrastructure The MDF has made significant investments in its & Transport six targeted outcome areas, as prioritized by the 35% Government of Indonesia. Approximately one-third of the portfolio is allocated to large infrastructure and transport. Another one-third has been allocated to community recovery, including housing and community-level infrastructure, while projects in the four other outcome areas make up the remaining third Figure 3.2: Implementing Agencies for MDF Projects of allocations. This latter third is divided more or less ILO WFP KPDT BPN equally, with allocations to environment, economic 3% 4% 13% 2% development, and capacity building/governance UNDP projects each amounting to about 9 percent of the total 16% portfolio, while the remainder is allocated to projects NGOs focused on enhancing the overall recovery processes 4% (Figure 3-1). MoHA 14% The Government of Indonesia is driving the reconstruction efforts, leading coordination and MoPW implementing most MDF projects. The MDF has 44% provided the government flexibility in the use of MDF resources to implement projects through a mix of implementation modalities--through government line ministries, NGOs, UNDP, ILO and WFP. About 73 percent of MDF funds have been channeled through the national budget of the government with approximately 23 percent of funds managed in partnership with a number of United Nations agencies (UNDP, WFP and efforts have greatly contributed to the remarkable ILO), and the remaining 4 percent with NGOs (Figure achievements. The reconstruction of Aceh and Nias 3-2). The strong coordination by, and leadership of, has become an international model for postdisaster the Indonesian Government during the reconstruction response. 30 Chapter 3: MDF Finances Disbursements Disbursements to projects echo the overall status of the portfolio. The active on-budget projects will drive both As of September 30, 2010, a total of US$500 million disbursements and project spending until MDF closure has been disbursed to projects in the MDF's portfolio. in 2012. The bulk of the remaining disbursements are This is about 77 percent of the total amount of funds expected to take place during 2011. that has been allocated and committed to projects, an increase of approximately 25 percent in disbursements In the remaining time of the MDF, focus will primarily over the last year. With about two years remaining to be on ensuring the quality of implementation and complete implementation, disbursements are in line achieving project objectives. However, some residual with the physical progress of project objectives and funds may remain unspent from ongoing projects at targets. The transition from BRR to line ministries has closing. These residual funds are expected to be utilized been completed and the regular government processes for additional financing to projects currently under are in place to allow for the flow of funds to the projects. implementation, as and when these are available. The On average, the MDF has disbursed more than US$100 focus of such use will be on capacity building and local million annually to projects. Approximately US$346 infrastructure, as agreed at a Steering Committee million has been disbursed to the projects through the meeting held in September 2010. Residual funds which government's national budget, while the remaining are not received in time to be effectively reprogrammed US$153 million was disbursed to off-budget projects. will be returned to the donors. As of September 2010, US$436 million or 87 percent The MDF relies on effective intergovernmental of funds disbursed have been spent. Reflecting the coordination by Bappenas and strong supervision overall reconstruction effort, which is approaching and implementation by all partner agencies and completion, most of the MDF projects are mature and implementing agencies. Disbursements to on-budget several have closed. Eight projects have closed, 12 are projects require allocations to be made through in full implementation and three projects are in the the national budget process. With the limited time early stages of implementation. Looking at the overall remaining, delayed budget processing would adversely trend, the projects are on track to deliver results. impact project implementation. As such, successful completion of projects will require intense focus of all parties to technical, institutional and financial issues throughout the process. Outlook MDF funds may be considered fully committed to projects. As of September 30, 2010 unallocated and uncommitted funds are recorded at US$26.5 million, taking into account program administration and other costs. However, with a reduction in donor contributions of about US$25 million currently being formalized, the unallocated and uncommitted amount will be reduced to approximately US$1.2 million. The MDF supports Bappenas to enhance its coordination and monitoring and evaluation of the completion of the Aceh- Nias reconstruction efforts. Photo: R2C3 Collection 31 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth Feature Story 3 Going Clean and Green in Aceh and Nias The UNDP's Tsunami Recovery Waste Management Programme (TRWMP), supported by a grant from the Multi Donor Fund, takes a multifaceted approach to environmental sustainability with a focus on solid waste management. The project was designed to remove tons of tsunami debris and rubble in the initial aftermath of the disasters, and in later phases has evolved into supporting sustainable systems for solid waste management as part of the commitment to "build back better." This has included the construction of sustainable landflls and developing pilot fee-based systems of waste collection. TRWMP also helps to provide livelihood opportunities in recycling and other waste- related activities, as well as to build public awareness about recycling and good practices related to management of waste. Recycling a Living in a Landfill On any given day, several groups of scavengers pick through the waste at Suak Buluh, the only dumpsite in Simeulue, tucked away in the lush green hills near the capital, Sinabang. They retrieve plastic, metal, cardboard­anything to sell­as well as collect firewood to take home to use for cooking. Yusni belongs to one group of 25 scavengers, 23 of whom are women. Yusni speaks candidly of her life in the landfill. She comes almost daily to Suak Buluh. The mother of three searches for and sorts valuable recyclables, plucked from the 25m3 of waste trucked in daily from around the island. At 32 years of age, Yusni devotes half her working hours to the Simeulue dumpsite, the other half to a palm oil plantation nearby, depending on scavenging activity. She often earns around Rp. 100,000 per week from her collection of recyclable material. "I prefer scavenging," Yusni said. "I make more money here than at Photo: UNDP collection the plantation." The work hours are better too. Amidah, head scavenger for the group also prefers scavenging. "When we work here, we only work until noon. But at the plantation, they pick us up at 7am in trucks and we finish at 4pm," she said. The TRWMP has worked closely with the people across Aceh and Nias who make their living at landfills and dumpsites. One of TRWMP's main activities is its Waste Management Livelihoods Project, which seeks to support and improve the income of families and the sustainability of small businesses throughout Aceh and Nias while diverting as much recyclable material as possible from ending up in landfills and dumpsites. Scavenging is one enterprise TRWMP has identified as needing support. TRWMP often supplies training and equipment to many of Aceh and Nias's scavengers, who are among the most vulnerable and poor of the region. However they have tapped into the notion that there is a lot of money to be made in items thrown away as garbage. 32 Chapter 3: MDF Finances Local government regularly supports the scavengers. The local government, with the support of TRWMP, also provides regular hygiene promotion seminars to look after the health and wellbeing of the workers. The women said the main complaint from the workers is skin problems, however overall their health is good. Yusni and Amidah go home each night and wash thoroughly "with good soap, many times." They then light the cooking fire using salvaged wood and prepare and sit down for a meal, having contributed to the family income from their busy day at Suak Buluh. Building School Children's Awareness of Hygiene and Waste Management Public awareness campaigns are another one of the many activities supported by the TRWMP in Aceh and Nias. The project is teaching school children basic recycling principles and hygiene practices, recognizing that building awareness and good habits in children leads to better informed and conscientious citizens in adulthood. Just before snack time at a small elementary school in Banda Aceh, about 40 patient children stood at attention in the schoolyard. A woman's voice piping out over a speaker system calmed the excited four- and five-year-olds. A. Elia Nova is from DK3, the sanitation department (Dinas) of the Kota Banda Aceh government and she was at TK-IT Al-Azhar School to teach children about hygiene practices, waste management and basic recycling principles. "We want the kids to be more environmentally aware," said Elia, one of three Dinas facilitators at the school for the training. "We teach six things; environmental education, cleaning, hand washing, planting, basic knowledge of garbage and waste and composting." "It's easier to change their behavior at the beginning rather than when they're adults," said Elia. This is one of ten TRWMP-supported government socialization sessions in Banda Aceh schools for 2010. Next year, the Dinas will add six more schools to its training roster. Across all 13 TRWMP- supported districts, local governments have trained almost 30,000 students from 427 schools in environmental awareness issues. After the seemingly exhausting schoolyard games at the small school in Banda Aceh, the kids settled down for a snack in the cool dim classroom. When asked if they would go home and teach their parents about everything they learned, the children yelled out in unison, "YEAH!" Photo: UNDP collection 33 "Sustainability of impacts and exit strategies are important areas of focus for the MDF." Yursi, age 20, tends to cacao seedlings at the Forsaka nursery in Jalin Village, Jentho, Aceh. The Forsaka Nursery is an initiative set up by Fauna and Flora International (FFI) under the Aceh Forest and Environment Project (AFEP). The nursery is growing seedlings for cacao, Mahoni and other trees in order to provide seedlings to local farmers to enable them to diversify their crops. Photo: Abbie Trayler-Smith/Panos Pictures/Department for International Development (UK) 34 Chapter 4: Looking Ahead in Aceh and Nias through various projects. The MDF portfolio is now mature, following the original phased Chapter 4: Looking Ahead strategy, with some projects closed, the majority in full implementation and winding down, and the last few in the early stages of implementation. Project progress is good, tangible results are visible, and project benefits are being felt in communities across Aceh and Nias. Six years have passed since the December 2004 earthquake and tsunami and the March 2005 Continued strong coordination and the cooperation earthquake, and the reconstruction of Aceh and Nias of all partners are needed to ensure the smooth has moved into its final phase. Remarkable results implementation and quality of the last set of projects. have been achieved in the recovery of communities, The timeline for completion of these projects is tight. reconstruction of infrastructure, restoration of services The MDF will close on December 31, 2012, and all and rebuilding of local institutions. The people of Aceh projects must close by June 2012, with no possibility of and Nias are looking forward, not backward, as they extension. Closing dates of several projects have been continue to rebuild their lives and communities and look extended to June 2012 to ensure there is sufficient time towards future economic growth and development. to complete their objectives. The reconstruction and rehabilitation of Aceh and All available MDF funds have been allocated to Nias is continuing through regular government projects.7 The Steering Committee has recognized the processes. Bappenas will continue to coordinate good management of the funds by the Trustee. Projects the reconstruction through the Action Plan 2010- are on track to disburse most remaining funds in 2011 2012 which covers the same time period as the Multi with the last funds to be spent by the closing dates of Donor Fund. Provincial governments are also playing the respective projects. Some unspent residual funds an increasingly important role in all aspects of the will remain as individual projects close. The MDF will reconstruction, implementing the Action Plan jointly reprogram these residual funds to the extent possible with the central government. Provincial Governments within the remaining timeframe as they become of Aceh and North Sumatra have both issued provincial available. The Steering Committee has established government regulations formalizing the Action Plan that priorities will be for local capacity building and 2010-2012. Beyond this date Aceh's development will local infrastructure within the framework of existing be guided by the Accelerated Sustainable Development projects. The ability to reprogram funds is likely to Plan currently under preparation by the provincial depend on when these are available, such that they can government with support from central government. be effectively utilized in other activities within project closing dates. The MDF has made a significant contribution to the overall recovery and remains committed to continuing Results and quality of the portfolio overall are good, and its support for reconstruction until the end of its impacts are beginning to be seen as projects come to mandate. MDF support for overall reconstruction completion. Thousands of large and small infrastructure will continue through TA to BRR and Bappenas and support to provincial and district level governments 7 Refer to Chapter 3: MDF Finances, for details. 35 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth projects have been completed and are making a the AFEP, TRWMP, SDLP, and DRR-A are establishing contribution to revitalizing the economy. Homes governance, management and service-delivery and schools are occupied, community organizations systems, both government and nongovernment, which are active and interconnected, local institutions are are designed to function long after project support stronger and more resilient, and local governments ends. MDF investments in physical infrastructure and are better equipped to manage the remaining human capital contribute to making Aceh and Nias reconstruction program and future development. more resilient to future disasters. Communities and individuals, and especially women, are more empowered to play a role in planning for The MDF leverages the institutional strengths of future development in their communities. Livelihood different partners and links to government programs in opportunities have improved for many through project order to achieve its results and increase sustainability. activities and more specifically targeted economic UNDP projects such as NITP and AGTP smooth the development work is now getting underway. transition from reconstruction to development by building on UNDP's national strategy that supports The sustainability of these impacts and exit strategies the government's decentralization agenda. The MDF's are being established at individual project level but projects under the World Bank which use the CDD are also an important focus for the MDF portfolio approach are aligned with the government's ongoing as a whole. Transfer of the reconstruction assets to national strategy for poverty reduction. These CDD the relevant authorities and ensuring resources and projects (KDP, UPP, CSRRP-Rekompak, KRRP) and systems are in place for their continued operation SPADA are rolling over into national programs under the and maintenance are the biggest challenges to government's PNPM umbrella. Approaches adopted by sustainability of the investments made through the these MDF projects contribute to sustainable outcomes overall reconstruction. MDF projects are supporting and continued development benefits after the life government on asset transfer and building capacity to of the project by linking up to national programs. In address these challenges. addition, the community-based approach for housing reconstruction developed under the CSRRP-Rekompak Disaster risk reduction and sustainable management project in Aceh has been replicated and adopted by of the environment are other important principles that the national government for postdisaster housing the MDF is working to mainstream in the development reconstruction. agendas of Aceh and Nias. Specific projects such as DRR-A, TRWMP and AFEP, for example, are addressing A secure and peaceful Aceh is recognized as an these concerns directly. Other projects in the portfolio, important legacy of the reconstruction and is essential such as the housing projects in Aceh and Nias, the large to continued growth and development. The MDF infrastructure projects implemented under IREP and operates in a unique context of postdisaster recovery IRFF, NITP, SDLP and others, have also mainstreamed layered upon a postconflict environment. The environmental sustainability and/or disaster risk provincial government and Bappenas are providing reduction into their activities. continued attention to bridging Aceh's reconstruction and peace-building initiatives through mainstreaming MDF projects are putting sustainable systems in place, conflict-sensitive economic development. The MDF thus ensuring long-term benefits. Projects such as has supported the government's agenda to the extent 36 Chapter 4: Looking Ahead possible within its mandate by including conflict- economic development and livelihoods projects sensitivity as an important feature of project design. The have just started and are designed to be a catalyst to Consolidating Peaceful Development in Aceh (CPDA) economic growth in several key production sectors, program, a new initiative supported by the Netherlands with a focus on agriculture, across Aceh and Nias. These and AusAID in partnership with The World Bank and projects are limited in scope and time, but will help to government, is aimed at filling gaps in mainstreaming lay the foundation for future economic development conflict reduction into Aceh's development agenda. in line with the reconstruction master plan and the provincial governments' mid-term development plans. The MDF's mandate is disaster reconstruction and More importantly, they are providing models, pilots, it is not designed to address all of Aceh and Nias's and systems that can be built upon after the MDF development problems. Nevertheless, the MDF is ends. working to support the Government of Indonesia and provincial governments to "build back better," and The MDF will be assessing outcomes and the impact thereby help lay the foundation for future economic of its efforts with a focus on lessons learned. The growth and development. The MDF's two main MDF offers valuable lessons in both implementation and effective donor harmonization. The MDF and the overall reconstruction of Aceh and Nias are already recognized as a success by the global community. It is important to make the lessons from this remarkable recovery and reconstruction effort available for future postdisaster reconstruction work elsewhere. Models developed in Aceh such as the community-based housing and infrastructure project have already been replicated elsewhere in Indonesia for recovery from earthquakes and tsunamis and now, more recently, is being applied for the recovery of communities impacted by the eruption of Mt. Merapi. This model is also being studied for use in Haiti and in other international contexts. Building on its experience with the MDF, the GoI has set up the Indonesian Multi Donor Fund Facility for Disaster Recovery (IMDFF-DR) as a standing fund for disaster response and disaster prevention,. The lessons learned from the implementation of the MDF's reconstruction and recovery program, however, are not limited to postdisaster settings. It is also important to document microlevel successes and lessons learned about governance, community empowerment, and building stronger institutions to enhance the future development of Aceh and Nias. A student visiting the Nias Heritage Museum in Gunung Sitoli, Nias on a study trip supported by the KRRP. KRRP promotes the preservation of the unique cultural heritage in Nias through training for teachers and students. Photo: KRRP collection 37 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth Feature Story 4 Supporting Postdisaster Recovery through Community-based Organizations in Nias For the first time, the village of Lewuoguru, in the subdistrict of Gunung Sitoli in Nias has an educational facility. A center where young children can learn and play has been established and is now operational in the village, using the national curriculum for early childhood education. The children attend the school two hours every day where they can play with friends using toys, sing, and also learn how to read and write. Based on an initiative by Ingin Maju­a local women's community-based organization (CBO)­the facility is the perfect response to the concerns of local women that small children did not have any educational opportunities. With support from the UNDP's Support to Strengthen the Capacity of Civil Society Organizations Project (CSO) and funding from the Multi Donor Fund of Rp. 108 million (US$ 11,980), the facility was opened in October 2008. While most men tried to press the organization to spend their small grant on income-generation activities, the women's group was firm on their goal­to obtain an education facility for the local village children. Austcare, an Australian NGO, partnered with UNDP in implementing the CSO project in Nias. Yusminar Harefa, 29 years of age, lives in subvillage III of Lewuoguru village. She works as an assistant teacher at a local primary school and also acts as the secretary to Ingin Maju. 'The presence of the Ingin Maju Early Age Education Center is something so fantastic for us in our village. We have faced numerous difficulties and lots of constraints in implementing this program. At one point, we were thinking that we were not able to continue the program as it was "We hope in the future we will very challenging.' have a primary school so that our Yusminar's husband was initially reluctant to offer his full support children do not have to travel to to her in running the CBO, believing that her role at Ingin Maju the neighboring village about five would distract from her work as an assistant teacher at the school. to six kilometers away to attend However, the Austcare facilitator conducted a meeting with the school." CBO management team in her house, showing her how to do proper bookkeeping as well as how to divide her time for family and the CBO. Her husband then started to develop an awareness and understanding of her work and the work of the CBO and about gender equality. It was eventually the support from her husband that encouraged Yusminar to stay engaged with the work of the CBO. The school had an initial enrolment of 50 pupils, but by the end of 2008 the number had increased to 60, including some children from a neighboring village. There are 27 boys and 33 girls with six certified teachers (all female) working in the facility. A local school committee has been established to support the school and acts as a school board to provide oversight for the learning process at the school. They also liaise with parties outside of the village, including local government authorities and nongovernment actors, to obtain support for the school. The local health agency (Dinas Kesehatan) has also extended its services by conducting health checks for the schoolchildren. 38 Chapter 4: Looking Ahead The women's group has also been strengthened through training and mentoring provided by Austcare­including program planning, bookkeeping, and time management. Further training was provided by the Nias Civil Society Resource Center on organizational management, leadership, strategic planning and gender mainstreaming. The women in the village are very pleased that, through their hard work, not only do they now have a school for their children but have also gained respect from their village and families. Ingin Maju aims to develop this education facility further in the future, capitalizing on various training that they have received that has been helpful in managing operational funds, which come from iuran (regular contributions from the parents) and also from independent donors. The MDF's CSO project has completed its activities, but the impacts of this project will continue to be felt in Lewuoguru. According to Yusminar: 'We hope in the future we will have a primary school so that our children do not have to travel to the neighboring village about five to six kilometers away to attend school. Nevertheless, now I can smile and also laugh when seeing the results of our struggle, the women's group in our village. Thank you Austcare, UNDP and also MDF donors for having provided assistance to our village.' The women's CBO called Ingin Maju (Desire for Progress) in Lewuoguru, Nias, used a small grant from the MDF's Support for CSOs project implemented by UNDP to create an early childhood education program for village children. The project provided training and capacity building to selected CSOs and CBOs across Aceh and Nias, including the women in Ingin Maju. It was a happy day for the members when the new preschool was officially launched, with numerous visitors in attendance. Photo: AUSTCARE Collection for CSO Project 39 "MDF investments in physical infrastructure and human capital contribute to making Aceh and Nias more resilient to future disasters." The IRFF and IREP projects, cofinanced by the Government of Indonesia and the MDF, designed and constructed more than 50 large infrastructure subprojects across Aceh and Nias. This sea barrier built in Aceh Jaya stabilized the river mouth after the tsunami and provides safe access to the sea for the fishing community living nearby. Photo: IRFF Collection 40 Annexes: Project Portfolio Annexes | Project Portfolio Funds Allocated No. Project Millions of US$ Recovery of Communities Community-based Settlement Rehabilitation and Reconstruction Project (CSRRP or 1 85.00 Rekompak) 2 Community Recovery Through the Kecamatan Development Program (KDP) 64.70 3 Community Recovery Through the Urban Poverty Project (UPP) 17.96 4 Kecamatan-based Reconstruction and Rehabilitation Planning in Nias Project (KRRP) 25.75 5 Reconstruction of Aceh Land Administration System Project (RALAS) 14.83 Recovery of Larger Infrastructure and Transport 6 Banda Aceh Flood Mitigation Project (BAFMP) 6.50 7 Infrastructure Reconstruction Enabling Program (IREP) 42.00 8 Infrastructure Reconstruction Financing Facility (IRFF) 136.70 9 Lamno-Calang Road Maintenance Project 1.46 10 Sea Delivery and Logistics Programme (SDLP) 25.03 11 Tsunami Recovery Ports Redevelopment Programme (TRPRP) 3.78 12 Nias Rural Access and Capacity-building Project (RACBP) 11.80 Strengthening Governance and Capacity Building 13 Capacity Building for Local Resource-based Rural Roads (CBLR3) 11.80 14 Support for Poor and Disadvantaged Areas Project (SPADA) 25.60 15 Support to Strengthen the Role and Capacity of Civil Society Organizations (CSO) 6.00 Sustaining the Environment 16 Aceh Forest and Environment Project (AFEP) 17.53 17 Tsunami Recovery Waste Management Programme (TRWMP) 39.40 Enhancing the Recovery Process 18 Technical Assistance (TA) to BRR and Bappenas 24.48 19 Making Aceh Safer Through Disaster Risk Reduction in Development (DRR-A) 9.87 20 Aceh Government Transformation Programme (AGTP) 13.98 21 Nias Island Transformation Project (NITP) 3.89 Economic Development and Livelihoods 22 Economic Development Financing Facility (EDFF) 50.00 23 Nias Livelihoods and Economic Development Project (LEDP) 8.20 TOTAL ALLOCATION TO PROJECTS 646.26 41 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth 1. Community-based Settlement Rehabilitation and Reconstruction Project (CSRRP or Rekompak) The Community-based Settlement Rehabilitation and Reconstruction resulted in a strong sense of ownership from the beneficiaries. Project (Rekompak) provided grants to 130 village communities to rebuild Block grants provided to communities enabled recipients and repair houses and rehabilitate their settlement infrastructure through to rebuild nearly 8,000 houses and repaired almost 7,000 a community-driven approach. The project met its objectives and closed damaged houses in the 130 funded villages. On average, more successfully on April 30, 2010. than 97 percent of the reconstructed and rehabilitated houses Grant Amount US$85.00 million are occupied. Community Settlement Plans (CSPs) were Implementation Period November 2005­April 2010 completed in 126 villages. The project also provided grants Partner Agency The World Bank for the rebuilding of community infrastructure in 180 villages, directly benefiting more than 79,000 people. These projects Implementing Agency Ministry of Public Works included village roads, drainage systems, bridges, and public Disbursements as of September 30, 2010 US$84.97 million 8 water and sanitation facilities. The project has also strengthened capacities for the local communities and local economy through business and technical management training. In addition, the This project provided housing in 130 village communities and project stimulated the local economy through job creation and it was one of the few projects that also provided support to encouraged the support of local businesses. rehabilitate damaged houses. The project also developed a unique mechanism to cover renters. The project supported Based on the successful implementation of Rekompak in Aceh, village communities in Aceh to jointly map and assess damage in the community-based model for reconstruction of housing has their communities and identified construction needs for housing been adopted by the Government of Indonesia in postdisaster beneficiaries. situations following the earthquake in Central Java and Yogyakarta in 2006 and in West Sumatra in 2009. A Bappenas The Rekompak program has set a high standard for the study in 20059 and a beneficiary satisfaction survey conducted reconstruction of housing and community infrastructure in in 2008 commissioned by the project, showed that Rekompak postdisaster situations. It provided a platform for international delivered quality housing at a lower cost (up to 40 percent partners to support the government's own agenda to rebuild lower) than other projects that did not use a community-based communities, with communities themselves leading the way. approach. Major Achievements Results as of project closing Targets Achievements April 30, 2010 The community-driven approach used in the project has proved Destroyed houses reconstructed 8,004 7,964* effective in rebuilding houses within a limited timeframe and Damaged houses rehabilitated 6,999 6,999 Community Settlement Plans 126 126 Village roads repaired/constructed - 133 (km)** Irrigation and drainage repaired/ - 142 constructed (km)** Clean water, water storage and wells - 173 (unit)** Short-term employment created - 7,800,535 (workdays) * The remaining 40 houses were cancelled for various reasons including land issues. ** Targets were set at community level during implementation. Students passing through a housing complex built through CSRRP/ 8 Unspent residual funds are returned to the MDF pool of funds. Rekompak in Air Pinang village, Kabupaten Simeulue Timur, Aceh. 9 The study was titled Findings of Post Construction Economic Impact Photo: Irwansyah Putra for MDF Analysis Study for CDD Programs. 42 Annexes: Project Portfolio | Recovery of Communities 2. Community Recovery Through the Kecamatan Development Program (KDP) The Kecamatan Development Program (KDP) provided block grants future development activities was one of the most important directly to villages for community-led reconstruction. Through this outcomes of the project. community-led process, KDP supported the restoration of community infrastructure in over 3,000 villages across Aceh and Nias. The project Over 29,000 people were involved in the community-planning successfully completed its objectives and closed on December 31, 2009. process and received training. The project was particularly Grant Amount US$64.70 million successful in empowering women to have a voice in community Implementation Period November 2005­December 2009 planning, with women accounting for about 45 percent of all Partner Agency The World Bank participants in community-planning activities. The community- based approach of the KDP also contributed indirectly to Implementing Agency Ministry of Home Affairs community recovery by stimulating the local economy. Project Disbursements as of September 30, 2010 US$64.70 million funds stayed in the community as raw materials were purchased from local suppliers and community members were hired to undertake the construction activities. The Government of Indonesia has recognized the advantages of community-based recovery programs as a fast and flexible KDP proved to be a cost-effective large-scale community- mechanism to yield results leading to sustainable solutions. The recovery mechanism in postdisaster and postconflict Aceh and MDF leveraged this successful community-driven development Nias, allowing the communities to have a voice in identifying model through the pre-existing nationwide KDP program to and planning for their own recovery. It also created synergies channel funds and support community-led reconstruction and with other projects by serving as a vehicle for other development rehabilitation in Aceh and Nias following the earthquakes and agencies and government institutions in delivering programs tsunami. through its extensive coverage and network. The project has transitioned to the nationally-funded PNPM Mandiri program Major Achievements which covers all villages in Aceh. Through the KDP, communities participated in planning for Results as of project closing Targets Achievements their own recovery, which has led to a strong sense of ownership December 31, 2009 and pride in the results. Communities determined priorities Roads repaired/constructed (km) 2,412 2,399 regarding tertiary infrastructure, and economic and social Bridges repaired/constructed (units) 1,007 932 support needs, and funds were allocated accordingly. KDP had Irrigation and drainage (km) 931 1,238 a solid multilayered control mechanism to prevent corruption throughout the planning and implementation phases of village Clean water projects (units) 598 844 projects. Water storage reservoirs (units) 118 180 Sanitation units (MCK)* 939 778 The majority of KDP funds went into block grants to subdistricts Village-level markets 21 26 in the tsunami-affected areas. A democratic process determined School buildings 289 292 which villages received funds and the amount to be disbursed to each subproject. Overall, the project provided planning, training Health clinics/posts 33 11 and capacity-building support to over 6,000 communities in Value of scholarships (US$) 380,604 326,270 Aceh and Nias. Approximately 3,000 villages received MDF- Number of recipients 6,052 6,074 financed block grants. Amount for loans (US$) 379,000 1,415,460 Number of recipients 4,045 7,001 The majority of MDF funding disbursed through KDP block grants (more than 90 percent) was used to build or repair local- Number of businesses/ groups 350 554 level infrastructure, including village roads, bridges, schools, Persons employed through subprojects - 265,000 markets, health clinics, irrigation and drainage facilities, and Workdays generated - 3,500,000 provision of clean water. MDF funds were also used for social Emergency relief funds (US$) 4,528,898 4,369,310 support needs such as microcredit, scholarships, and emergency * MCK: Mandi, cuci, kakus: Public bathing, washing and toilet facilities. relief funds for families. Capacity building at the community level for local-level planning and management of reconstruction and 43 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth 3. Community Recovery Through the Urban Poverty Project (UPP) The Urban Poverty Project (UPP) provided block grants directly to 273 direct activities, administer proposals, submit accountability communities to rehabilitate and develop community infrastructure in reports and manage relationships with other stakeholders. municipalities in Aceh. The project closed on December 31, 2009. The UPP project is one of several MDF-supported CDD projects Grant Amount US$17.96 million that was integrated with and designed from the outset to Implementation Period November 2005­December 2009 transition into the Government of Indonesia's national PNPM Partner Agency The World Bank Mandiri program. The project was highly successful in assisting Implementing Agency Ministry of Public Works communities to prepare the community spatial plans required to Disbursements as of September 30, 2010 US$17.45 million 10 mobilize additional funding from other CDD-type post-tsunami housing projects. Community participation is at the core of UPP activities. All community-level physical reconstruction assets such as roads, The project promoted a bottom-up participatory planning bridges, schools and health facilities have been handed over to approach so that communities themselves identified their local governments. The project formulated training modules core needs for reconstruction and the revival of economic and standard operating procedures for postproject operations activities. Democratically elected neighborhood committees and maintenance (O&M), but ensuring a continued commitment and volunteers conducted damage assessments, put together to O&M after project closure is a common challenge across the community development plans, and prioritized activities to be Aceh reconstruction effort. funded through the project. The empowerment communities experienced in the process was crucial to the success of the Results as of project closing Targets**** Achievements project. December 31, 2009 Roads repaired/reconstructed (in km) 61 231 Major Achievements Reconstruction of bridges (in meters)* 6,150 1,382 Drainage (in km) 37 176 The primary beneficiaries of the project consisted of some 697,600 persons living in 402 kelurahan (urban neighborhoods) Clean water projects (units) 79 4,915 in Aceh that were thought to be most severely affected by the Waste disposal facilities 284 806 tsunami and earthquake. The population of these kelurahan Sanitation units 22 405 benefited both directly and indirectly from social service School buildings 100 159*** assistance grants and improved community infrastructure Building of town/village hall 44 120 and services, which were planned and implemented through a community-driven development (CDD) process. Based on need, Health clinics/posts** 28 29 273 of these 402 targeted kelurahan were selected to receive Students receiving scholarships - 3,430 grants for the reconstruction and rehabilitation of community Value of scholarship (US$) - 74,043 infrastructure. Workdays generated - 1,124,126 Social aid funds (US$) - 1,218,374 Achievements in the reconstruction of physical infrastructure in * The bridge projects were below target due to the length and bridge designs exceeded the many areas surpassed initial planned targets. The largest share community's allocated budget. of project-financed block grants for community infrastructure ** The number of health clinics was below target since some clinics were built / rehabilitated was allocated to roads and bridges, drainage, and water. Nearly by other institutions. Unused budgets from bridges and clinics projects were used to build longer roads and/or drainage. 39,000 households (about 48 percent of the population in the *** In some cases only school furniture was provided, not the physical construction. 273 kelurahan selected to receive block grants) received social **** Targets were set at community level during implementation. assistance grants. The project included a specific component for the empowerment of women, to ensure that women's needs were represented in the community planning and implementation of block grant- funded reconstruction activities. Women who participated in this program have shown significantly improved capacity to 10 Unspent residual funds are returned to the MDF pool of funds. 44 Annexes: Project Portfolio | Recovery of Communities 4. Kecamatan-based Reconstruction and Rehabilitation Planning in Nias Project (KRRP) The Kecamatan-based Reconstruction and Rehabilitation Planning to these remote areas. The difficulty of recruiting and retaining Project in Nias (KRRP) provides block grants for the reconstruction of qualified field facilitators, a critical ingredient to the success of houses, schools, local government offices and other public infrastructure all community-driven development projects, has also been a in Nias. challenge throughout project implementation. Grant Amount US$25.75 million Progress as of Implementation Period February 2007­June 2011 Targets Achievements September 30, 2010 Partner Agency The World Bank 4,300 completed Implementing Agency Ministry of Home Affairs Houses 5,000 209 under construction Disbursements as of September 30, 2010 US$25.75 million (491 not yet started) 32 completed Schools 100 68 under construction KRRP contributes to the recovery of the devastated areas in 28 completed Village office buildings 100* 126 villages across Nias by supporting local level planning and 82 under construction management of the reconstruction of communities, including Basic village infrastructure 96 completed 147** the rebuilding of productive infrastructure and social services. (projects) 51 under construction The project builds on the participatory planning process of other * The initial target of 100 was raised to 110 units. MDF-supported community recovery programs such as the KDP ** The initial target of 100 was revised to 147, with the same budget allocation, following community decisions. which has now closed and transitioned into the national PNPM Rural program. The project also aims to enhance the capacity for sectoral planning of district governments. The project's school reconstruction and rehabilitation component includes activities designed to increase awareness and appreciation of Nias's unique cultural heritage. Major Achievements Housing construction has made significant progress, with nearly 4,500 homes built. Work is still ongoing in the construction of schools and village office buildings. Basic community infrastructure, including access roads, bridges, and drainage systems, has made good progress, with all subprojects completed or under way. The overall quality of construction is good, with appropriate measures taken to meet recognized construction standards for earthquake-prone environments. The cultural heritage preservation activities under the project support development of local curriculum materials and training of teachers and students in conjunction with the Nias Museum and visits to traditional villages. Reconstruction in Nias has been particularly difficult due to the remoteness and difficult access of many areas, the wet climate, frequent landslides, the shortage of legally sourced timber, the general poor quality of the island's infrastructure, and overall poverty. KRRP has filled gaps in reconstruction needs identified by the government and, as a result, the project works in some A group of women working on a village road construction project in Nias. of the most remote and difficult-to-access parts of the island. More than 21,000 women have participated in the KRRP community infrastructure projects, which include bridges, drainage and irrigation This has intensified the challenges and also increased project systems in addition to village roads and footpaths. costs given the high cost of transport for construction materials Photo: KRRP collection 45 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth 5. Reconstruction of Aceh Land Administration System Project (RALAS) The Reconstruction of Aceh Land Administration System Project (RALAS) planning, and monitoring and evaluation led to significant delays assisted the government in the reconstruction of land property rights, and affected overall implementation progress. Nevertheless, development of a computerized land records management system, and at closing, a total of 222,628 land title certificates had been reproduction of cadastral maps in post-tsunami Aceh. The project closed distributed to land holders, of which 63,181 were issued in the on June 30, 2009. name of women or jointly in the name of women. Cumulatively, Grant Amount US$28.50 million BPN surveyed 275,945 land parcels and notified 272,912 land Implementation Period August 2005­June 2009 parcels. Project assessments found that beneficiaries who Partner Agency The World Bank received land titles were highly satisfied. Implementing Agency National Land Agency (BPN) Results as of project closing Disbursements as of September 30, 2010 US$14.83 million Targets Achievements June 30, 2009 Total number of land title certificates to 600,000 222,628 be distributed (by December 2008) The objectives of RALAS were to support the reconstruction of Total number of land titles registered in property rights and issuance of land title certificates, support 600,000 238,758 the land book the reconstruction and development of the land institutions in Total number of land parcels publicly Aceh, with support to rebuild land administration systems in 600,000 272,912 notified the province. RALAS addressed concerns regarding protection Total number of land parcels officially of property rights and provided training to local facilitators 600,000 275,945 surveyed (including civil society representatives) on Community-driven Total number of community land maps Adjudication (CDA). In support of the reconstruction work, 600,000 317,170 completed* RALAS assisted the BPN in the adjudication and distribution *This data is estimated. Although data on land parcels adjudicated and community land of title certificates to land owners of parcels affected by maps produced are similar, it does not imply that all of the land parcels for which community land maps were produced would have been titled. the disasters. In addition, the project financed institutional development through the reconstruction of BPN offices and worked to strengthen the capacity of the BPN land offices through the automation and computerization of records. Major Achievements Many important outcomes were achieved by the project despite the fact that not all of the targets were met. The project brought many intangible benefits in addition to its contribution to restoring land rights and rebuilding the land administration system in the province. Training and capacity building in CDA will continue to have an impact in terms of government delivery of land- titling services. Perhaps most importantly, increased public awareness and understanding of land-titling procedures will impact on demand for these services into the future, as well as the transparent delivery of such services. RALAS greatly contributed to the prevention of large-scale land speculation and the CDA approach facilitated the resolution of land disputes at the village level. The project also placed an important emphasis on protecting the property rights of women through joint land titling. A beneficiary from the MDF's land-certification project, RALAS, carrying survey poles to mark her land. More than 63,000 land certificates Project implementation issues were a challenge throughout distributed through this project were either jointly titled or solely titled the project's life. Weak management, especially in the areas to women. of oversight and direction setting, procurement, program Photo: Akil Abduljalil/MDF Secretariat 46 Annexes: Project Portfolio | Recovery of Larger Infrastructure & Transport 6. Banda Aceh Flood Mitigation Project (BAFMP) The Banda Aceh Flood Mitigation Project (BAFMP) re-established the By project closing, the project had reached its objectives within functionality of the flood protection systems damaged by the tsunami in the allocated budget. Construction had been completed on the Banda Aceh. The project helps to protect the central business district of three pumping stations, all flood valve installations, and drainage Banda Aceh against flooding caused by tides and heavy rains. The project reconstruction and rehabilitation works. The project followed successfully achieved its objectives and closed December 31, 2009. a phased implementation approach so that the community Grant Amount US$6.50 million could benefit from partial impacts while implementation was Implementation Period May 2006­December 2009 underway. In early 2006, the project installed 11 flood valves to Partner Agency The World Bank prevent tidal flooding and to drain one of the most flood-prone areas of Banda Aceh. This pilot valve program was successful Implementing Agency Muslim Aid in stopping tidal incursion within six months of startup. Partial Disbursements as of September 30, 2010 US$6.27 million protection against stormwater flooding was achieved after 15 months through cleaning and repairing the existing system, and full protection against the storm flows estimated in the Flooding from tidal incursion and heavy rainstorms present a five-year design was reached in 2009 after the three new pump constant challenge for Banda Aceh due to its location in a coastal stations were constructed and operational. flood plain. During the tsunami, the flood gates and pumping stations that mitigate the effects of flooding were destroyed, To function properly the flood mitigation system depends on resulting in periodic tidal flooding of low-lying areas of the city, keeping the drains and valves free of accumulated garbage. and leaving the newly reconstructed public and private assets Pilot waste management activities were initiated in several prone to new damage. The project closely coordinated with the villages under the project to collect and remove household overall drainage and flood prevention reconstruction plan of the waste to municipal waste pick-up points. Motorized three-wheel municipality, and has installed rubber flood valves and restored waste collection vehicles are used in this process. To build local the pumping and drainage system in Drainage Zone Two. awareness and capacity, participating communities undertook a study tour of community waste management, composting and Major Achievements recycling projects. The waste management activities under this project are linked to the municipal solid waste management system In line with the long-term plans of the local government for initiated under the MDF's Tsunami Recovery Waste Management Banda Aceh drainage, the BAFMP has helped protect the central Programme (TRWMP). The project also worked closely with this business district of the city against flooding. Due to the flood project to minimize duplication of activities and further enhance protection that the project offered, the former residents of the impacts. Training programs aimed at sustainability, and which flood-prone zone in northern Banda Aceh could quickly and include system maintenance and operation, were held for efficiently rebuild their houses. equipment operators. Results as of project closing Targets Achievements December 31, 2009 Immediate flood reduction 11 11 through flood valves Drainage system reconstructed · Pumping stations 3 stations Complete All flood valves · Flood valves (Zone Two) Complete in Zone Two · Drainage (reconstructed/ 4.4km/ 12.3km Complete rehabilitated) 28 three-wheeled Vehicles handed over to local 28 waste collection This pump station in Lampaseh is one of three pump stations constructed Sanitary Agency by BAFMP. The drainage and flood prevention rehabilitation works vehicles were designed to be compatible with the existing long-term plans for the Banda Aceh drainage system. It was completed in 2009. Photo: Tarmizy Harva for MDF 47 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth 7. Infrastructure Reconstruction Enabling Program (IREP) The Infrastructure Reconstruction Enabling Program (IREP) provides Further key responsibilities of IREP are ensuring that proper strategic planning, designs physical infrastructure and gives infrastructure safeguard measures are integrated into project preparation implementation support, enabling the coordinated reconstruction of and that the quality of the infrastructure works meets the infrastructure in Aceh and Nias. specifications of the technical designs prepared. Grant Amount US$42.00 million Implementation Period September 2006­December 2011 After the closure of the BRR, a Liquidation Team and a Supervisory Project Management Unit were formed to assist Partner Agency The World Bank in the coordination of ongoing infrastructure activities for Aceh Implementing Agency Ministry of Public Works and Nias. IREP also contributes to the sustainability of the Disbursements as of September 30, 2010 US$28.55 million investments through continued technical and capacity-building support to government at various levels. IREP has been extended to provide continued support to IRFF until it closes in IREP aims to strengthen government capacity for reconstruction December 2011. and continued development through technical support for strategic planning, project design, implementation and Results as of September 30, 2010 Achievements supervision as well as operations and maintenance. Technical teams design and review infrastructure at the national, provincial Post-tsunami infrastructure Framework is complete and being and district levels, and provide implementation support. The reconstruction and development applied (will be reviewed at end of Infrastructure Reconstruction Financing Facility (IRFF) and other monitoring framework for Aceh project) sources fund the implementation of the designs. and Nias Development of a sustainable Complete in conjunction with BRR, Major Achievements and strategic long-term local government, and IREP, and infrastructure reconstruction utilized throughout the project plan for Aceh and Nias IREP has provided support to IRFF projects as well as the government in the preparation of government-financed Proper safeguard measures All projects prepared by The World are integrated into project Bank as partner agency include infrastructure. IREP has prepared all 52 projects implemented preparation safeguards frameworks and all by IRFF and also provided technical input to central, provincial projects implemented under and district governments on the design and implementation IRFF adhere to the safeguards of infrastructure projects to be funded through other sources. framework The IREP technical teams design and review infrastructure at the national, provincial and district levels. The Malahayati port in Kabupaten Aceh Besar above is one of five ports designed under this project. Photo: Irwansyah Putra for MDF 48 Annexes: Project Portfolio | Recovery of Larger Infrastructure & Transport 8. Infrastructure Reconstruction Financing Facility (IRFF) The Infrastructure Reconstruction Financing Facility (IRFF) provides funds Results as of Number of Value of Projects for key infrastructure reconstruction projects in Aceh and Nias identified September 30, 2010 Contracts/Projects (Millions of US$) through the IREP. The project contributes to a strategic transportation network in Aceh and Nias in line with government priorities. Completed: 50 173.89 · National roads 6 (185 km) 24.03 Grant Amount US$136.70 million · Provincial roads 9 (316.6 km) 65.19 Implementation Period March 2007­June 2012 · Kabupaten roads 20 (136.6 km) 21.97 Partner Agency The World Bank · Water systems 11 30.80 Implementing Agency Ministry of Public Works · Ports 4 31.90 Disbursements as of September 30, 2010 US$72.86 million Under construction: 2 22.87 · National roads 1 (70.4 km) 16.43 Through IRFF, flexible funds were made available for infrastructure · Kabupaten roads 1 (15.3 km) 6.44 needs contributing to the meeting of strategic access needs. Under preparation: 6 36.70 Infrastructure needs at the national, provincial and district levels · National roads 3 (49 km) 29.03 are identified through the IREP framework and financed by the · Bridge (Kuala Bubon IRFF. Both IRFF and IREP strongly emphasize capacity building 1 4.77 Bridge) for local and provincial governments. Both projects supported · Consultant packages 2 2.90 the BRR transition strategy and, following the closure of BRR, project implementation was transferred to the Ministry of Public Works. The Government of Indonesia provided cofinancing of US$107.3 million for IRFF through the BRR. Major Achievements The IRFF project is financing a range of infrastructure reconstruction works which include national, provincial and district roads, bridges, ports and water systems of high quality. Through these works, IRFF is contributing to the reconstruction of a strategic transport network in Aceh and Nias, despite the many obstacles that the environment poses, including difficult conditions in mountainous areas, rain and flooding, and landslides. IRFF utilizes local infrastructure investment plans and the IREP strategy to identify possible projects for implementation. Environmental impact assessments and associated management plans ensure that environmental safeguards are in place. IRFF subprojects have shown significant progress over the past year and 95 percent of the subprojects under the first phase of IRFF are now completed. The remaining 5 percent of projects are under construction. Fifty projects have been completed, and two projects are at various stages of implementation. Additional financing of US$37 million was approved in 2010 for road construction (including one bridge) along the west cost of Aceh. Bidding documents are being prepared for the six An employee from the State Water Company (PDAM) performing contracts required to complete this strategic portion of road maintenance checks at this water supply facility in Sabang, built under that will complete the link between Banda Aceh and the North the IRFF project. Sumatra border. Photo: Irwansyah Putra for MDF 49 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth 9. Lamno-Calang Road Maintenance Project The Lamno-Calang Road Maintenance Project maintained the 103 The lack of government funding, expertise and equipment kilometer stretch of road from Lamno to Calang from November 2006 to needed to undertake this emergency maintenance work within December 2007. The objective of the project was to ensure uninterrupted the limited time frame when it was needed underscores the overland access to tsunami-affected communities on the west coast of importance of this project. This project is seen as a great success Aceh, thereby facilitating the reconstruction and recovery process, and promoting social and economic recovery. The project closed on December and, although relatively small, a key investment in filling the gap 31, 2007. in the reconstruction and recovery process. Grant Amount US$1.46 million Results as of project closing December 31, 2007 Achievements Implementation Period December 2006­December 2007 United Nations Roads graveled (km) 52 Partner Agency Development Programme Ditch excavation and lining (km) 132 United Nations Implementing Agency Bridge decks repaired (units) 21 Development Programme Bailey bridges installed (units) 4 Disbursements as of September 30, 2010 US$1.46 million Short-term local labor created (workdays) 3,000 Large portions of the road system, particularly on the west coast of Aceh, were damaged or destroyed by the 2004 tsunami. A key route is the Banda Aceh to Meulaboh road. In 2006 the stretch of road between Lamno and Calang was in critical condition as overloaded trucks and lack of maintenance often rendered the road impassable to traffic, especially during the rainy season. This project provided urgently needed continuous maintenance services to keep this major west coast corridor operational for a period of 14 months. Major Achievements The Lamno-Calang Road is the main transportation route for materials to the west coast. The project's completion report submitted in 2008 highlights the critical importance of the project in the early phase of Aceh's reconstruction and rehabilitation efforts. The maintenance work undertaken reduced the travel time between Lamno and Calang by half, from between six to eight hours to three to four hours. As a result, it is estimated that traffic increased by about 50 percent with additional vehicles diverting from other roads in worse condition. An unforeseen benefit of the project was that the two major diversions provided much better access to the coast road for villages situated away from the coast road, and provided alternative, shorter routes for reaching Calang. The use of hired equipment and day labor was appropriate and probably preferable to contracting out the work given the short time frame and uncertainty of the work required. Contracting village labor for manual work proved to be a cost-effective This map shows the stretch of road that was maintained under the approach and increased local ownership of the road maintenance Lamno-Calang Road Maintenance Project. activity. Source: BRR Book Series, 2009 50 Annexes: Project Portfolio | Recovery of Larger Infrastructure & Transport 10. Sea Delivery and Logistics Programme (SDLP) The Sea Delivery and Logistics Programme (SDLP) filled a vital need during continued effective operation of those investments. The SDLP the reconstruction by supporting the transportation of reconstruction is currently initiating a new phase focusing on capacity building materials and other cargo to affected areas, including remote areas through training, technical assistance and indepth capacity of Nias and Simeulue. Since 2007, the project has moved its focus to assessments, further investing in Aceh's transition to sustainable enhancing sustainability of the investments through comprehensive training programs and logistics support. development. Grant Amount US$25.03 million Major Achievements Implementation Period February 2006­September 2011 Partner Agency World Food Programme Transportation of goods to remote destinations throughout the affected areas, including beaches in Nias and Simeulue, has been Implementing Agency World Food Programme a major benefit of this project. The project transported a total of Disbursements as of September 30, 2010 US$25.03 million 98,185 metric tonnes/ 256,006mł of relief and reconstruction cargo from its inception in 2006 to March 2007. From 2005 to the first quarter of 2007, the SDLP provided a With the needed reconstruction materials delivered to intended full shipping service with the primary goal of coordinating the sites, the project shifted focus to training programs to build transport and shipping of reconstruction materials. Once the necessary skills to allow the beneficiaries to continue the work shipping of goods had transitioned to the commercial sector, done to date. Training modules in administration and support the project focused on providing logistics support and port functions to the ports were developed based on international management training to key staff in the 18 main ports of Aceh. curriculums and training sessions commenced on December 16, 2008. This component of the program complements the The project offered logistics support and consulting services reconstruction of ports in Aceh and Nias through other Multi to the private sector, government agencies and humanitarian Donor Fund projects. organizations operating in Aceh and Nias, ensuring the The training was delivered with links to the Provincial Training and Human Resource Agency (BKPP) and the University of Syiah Kuala. The university aims to include certain modules of the training into their postgraduate business degree programs. Links with the university and the Ministry of Transportation are being maintained in order to enhance the sustainability of project initiatives. Progress as of September 30, 2010 Achievements Users of shipping and logistics services since 930 records of logistics project start: support given: · Government of Indonesia 456 · United Nations agencies 174 · Commercial sector 168 · NGOs 132 Reconstruction materials shipped (until 98,185 December 2006, metric tonnes) Monitored commercial cargo movement 1,200,925 The aim of the SDLP was to fulfill urgent recovery transportation needs (since October 2006, metric tonnes) and to support the recovery of the marine transportation system in Port management training sessions held 138 (2,063 participants) Aceh and Nias. This was achieved partly through the efficient and safe transportation of reconstruction goods, based on the demand of multiple reconstruction stakeholders. Photo: SDLP collection 51 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth 11. Tsunami Recovery Ports Redevelopment Programme (TRPRP) The Tsunami Recovery Ports Redevelopment Programme (TRPRP) helped NGOs operating in the surrounding areas. to restore essential transportation networks after the tsunami and earthquake by providing physical designs and technical support for the The importance of rebuilding damaged ports was critical in reconstruction of major seaports and one river port. The redevelopment opening up access routes in the immediate aftermath of the of these critical ports ensured that equipment and materials could be delivered to isolated areas for the rebuilding of communities and livelihoods tsunami. This enabled the delivery of reconstruction materials during the early phase of reconstruction. The project was completed and and immediate emergency supplies to remote areas and closed on December 31, 2007. underscored the critical importance of basic, albeit temporary, infrastructure networks in facilitating emergency response and Grant Amount US$3.78 million initial reconstruction activities to affected areas. Implementation Period March 2006­December 2007 United Nations For those affected, this early emergency response work was Partner Agency Development Programme also a manifestation of the commitment of the government United Nations and donors to support the reconstruction, bringing hopes of Implementing Agency Development Programme progress, development and employment immediately after the Disbursements as of September 30, 2010 US$3.78 million disaster. Results as of project closing Targets Achievements The TRPRP was designed in accordance with the overall December 31, 2007 port redevelopment strategy that was endorsed by the BRR. Design and assessments for Designs completed for During the early phase of reconstruction efforts, this project ports completed 4 ports focused on the preparation of detailed designs, environmental Environmental impact impact assessments and economic feasibility studies for port 4 ports assessments undertaken at 5 ports reconstruction on the east and west coasts of Aceh. The project Economic assessments also improved the functionality of several ports through minor undertaken at 6 ports rehabilitation works in Sabang and the construction of temporary Roads graveled (km) 5 5 wharves in Calang and Sinabang. All activities were coordinated with the BRR, provincial and district transport agencies, and the Functionality of ports improved Department of Sea Communications, and complement work · Landing sites 2 1* done in other ports of Aceh. Activities were also based on close · Temporary wharves 2 2 consultation with communities and representatives of local * Scope was reduced (no works in Balohan) since local government had taken up the works. fishers and other sea-related stakeholders. Major Achievements The TRPRP project reached its objectives by project closing and within the allocated budget. This project carried out assessments and studies of sea ports damaged or destroyed by the tsunami in Calang, Meulaboh, and Sinabang, and a river port in Lamno, as well as developed plans for the redesign of these ports. In Gunung Sitoli the project reviewed a previous design so that works could be tendered. Environmental impact assessments were completed for Calang, Sinabang, Gunung Sitoli, Meulaboh and Singkil ports. Economic feasibility studies were also completed for these ports, as well The TRPRP project constructed temporary wharves in Calang and as for the Kuala Langsa port. Temporary wharves in Calang Sinabang. The wharves were mainly used by the WFP Shipping Service project and NGOs operating in these areas, enabling better docking and Sinabang were completed and handed over to BRR. These and cargo storage facilities for reconstruction materials, and providing works enabled better docking conditions and storage of cargo, access to hard to reach areas. and were mainly used by the World Food Programme (WFP) and Photo: SDLP Collection 52 Annexes: Project Portfolio | Recovery of Larger Infrastructure & Transport 12. Nias Rural Access and Capacity-building Project (RACBP) The Rural Access and Capacity-building Project (RACBP) focuses on the as a pilot activity, and the tender process for an additional 33 cost-effective and durable improvement of the rural transport network kilometers is underway. Sites for trails, roads and river crossings in selected economic cluster areas in Nias through the rehabilitation, have been identified, and traditional houses and megalith reconstruction and maintenance of core road links. structures have been assessed for inclusion in the cultural Grant Amount US$10.00 million heritage preservation work. Implementation Period October 2009­June 2012 The capacity of local governments in Nias to maintain the International Labour Partner Agency Organization (ILO) infrastructure assets built by the project is a challenge for sustainability, both in terms of technical capacity and funding International Labour Implementing Agency Organization (ILO) resources and especially after the recent division of Nias into four districts and one municipality, compared to two districts Disbursements as of September 30, 2010 US$5.00 million previously. The geographic and climatic conditions of the Nias Island also present obstacles to road works and these have been The Nias-RACBP project aims to improve and sustain strategic considered in the work plan prepared by the project. rural roads in order to improve access to economic and social services and facilities for communities in the targeted areas. Progress as of September 30, Targets Achievements The project was approved by the MDF Steering Committee in 2009 September 2009, part of the last group of projects aimed at Construction works: restoring livelihoods and contributing to sustained economic · Construction of `all growth. The Nias-RACBP, together with the Nias-LEDP, builds Motorbike trails (30.75 weather' access district a synergy for development on Nias through strategic targeting 100 kms) and roads (3.17 kms) roads and motorbike trails identified of communities in three agricultural/economic clusters (km) across 21 subdistricts, to optimize the economic benefits of · Construction of small 13 river-crossing sites investments in agricultural productivity promotion and rural bridges and river crossings 1,100 selected for technical access improvements. Local resource-based approaches will be (meters) survey employed, combined with environmentally friendly construction · Routine maintenance on Maintenance work not yet 80 approaches that require minimal maintenance. district roads (km) started Training and Capacity Building: The project's cultural heritage subcomponent seeks to enhance · On-the-job training public awareness and ownership, facilitate sustainable public 20,600 912 (training days) utilization and preservation of Nias's unique cultural heritage · Classroom training (training assets, and to preserve traditional construction techniques. 2,200 510 days) Increasing awareness of cultural heritage preservation, capacity building and on-the-job training are key elements of the RACBP. Major Achievements The project's inception activities have been completed and project implementation is underway. Training, planning, and capacity building, in addition to selected pilot activities, are ongoing. Training workshops have been held and capacity assessments completed. The selection and on-the-job training of site supervisors in the construction of local resource-based roads have commenced. In close coordination with the local governments, a strategic rural transport infrastructure plan has been finalized in one cluster and is under preparation in the other Supervisor training in "cold lay" road construction in Gunung Sitoli, two clusters. Preparation work for 2.3 kilometers of motorbike Nias. trails was completed by two community construction teams Photo: Shaun Parker/MDF Secretariat 53 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth 13. Capacity Building for Local Resource-based Rural Roads (CBLR3) The Capacity Building for Local Resource-based Rural Roads (CBLR3) CBLR3 is gender inclusive in its approach to strengthening project builds the capacity of local governments and contractors to community participation in rural road development and construct and maintain roads with low-technology methods. It rehabilitates maintenance. Eighteen women's groups were organized for district roads in five districts in Aceh and Nias, drawing on local resources clearing and spreading activities for road rehabilitation in and creating short- and long-term employment opportunities. four districts. In addition, 25 women participated in routine Grant Amount US$11.80 million maintenance work carried out by the 12 community maintenance Implementation Period March 2006­June 2011 groups from Pidie and Bireuen. The capacity of Community United Nations Project Implementation Teams in Aceh and Nias has improved Partner Agency and they are able to implement the works as required. Development Programme Implementing Agency International Labour Organization The additional nine-month extension provides a window to Disbursements as of September 30, 2010 US$11.80 million further institutionalize the LRB approach within the various district government agencies to sustain benefits beyond the project life. The physical handover of constructed roads is The CBLR3 (or ILO Roads) project trains local governments to expected to take place soon. effectively manage the reconstruction and maintenance of district-level roads, and small contractors to build roads with Results as of September 30, 2010* Targets Achievements** cost-effective local resource-based methods. Contracting the local workforce and using appropriate road construction Total roads rehabilitated (km) 155.7 154.6 technologies and work methods enables contractors to compete Total roads maintained (km) 177.3 229.5 for road construction and maintenance works during the Number of local contractors trained recovery process and beyond. CBLR3 was extended to June 2011 250 (30%) 341 (1.2%) (% women) to prepare a sustainable exit strategy focusing on strengthening an enabling environment in Aceh to institutionalize the local Number of local government staff 100 (30%) 178 (7.3%) trained (% women) resource-based (LRB) approach. In Nias, a similar approach will be continued under the ILO's RACBP which began implementation 410,345 Workdays created (% women) 430,000 (30%) (23.9% in Aceh) in late 2009. (31.5% in Nias) * Targets were under reported last year. Major Achievements ** The target of 30 percent female trainees has proven to be unrealistic as the road contracting industry is a predominantly male-oriented business. Through well-targeted activities, the project managed to maximize women's participation in its training activities. The CBLR3 project aims to strengthen the capacity of district governments and small-scale local contractors to undertake LRB road works and is showing good results. District public works staff in Pidie and Bireuen have started using LRB worksheets and mechanisms in road surveys for government-funded works. The training program emphasizes an objective contracting system and quality assurance resulting in a transparent bidding process and improved quality of road supervision. The project also introduces techniques, standards, systems and strategies for LRB road works adapted to conditions in Aceh and Nias. The improved ability of local contractors and public works staff and supervisors to apply the LRB approach in emulsion- based road works and site supervision has resulted in better quality outputs. District public works staff have adopted LRB manuals, applied LRB methods in designated nonproject-funded Local residents enjoy improved access to schools, markets and services roads, and used road quality testing methods. on a road in Kecamatan Delima of Kabupaten Pidie Jaya constructed under the UNDP's CBLR3 Project implemented by the ILO. Photo: Tarmizy Harva for MDF 54 Annexes: Project Portfolio | Strengthening Governance and Capacity Building 14. Support for Poor and Disadvantaged Areas Project (SPADA) The Support for Poor and Disadvantaged Areas Project (SPADA) Results as of strengthens district government capacity to incorporate bottom-up Targets Achievements September 30, 2010 (village, subdistrict and intersubdistrict) planning and needs analysis into district planning and budgeting. SPADA links the participatory subdistrict Rural districts More than 80% 100% of districts now planning process of PNPM Mandiri Perdesaan to district government using participatory participate in GoI's decision making, and provides block grants to improve public services and planning processes participatory planning the recovery of basic infrastructure. for budgeting and budgeting process and financing of (musrenbang), and SPADA Grant Amount US$25.60 million development activities feeds into this process and Implementation Period February 2007­December 2011 helps build capacity. Partner Agency The World Bank Subprojects proposed Based on need · Roads (777 units/195.6 and funded in all 19 assessment by km) Ministry for the Development of districts communities · Bridges (132 units/5.6 km) Implementing Agency Disadvantaged Areas (KPDT) · Drainage (206 units/11.5 Disbursements as of September 30, 2010 US$17.93 million km) · Irrigation (70 units/6.5 km) · Clean Water (373 units) · School Rehabilitation (50 This project provides block grants to districts in Aceh and Nias units) to fund projects identified for subdistricts through the KDP/ · Village Health Clinic (54) PNPM planning mechanism. SPADA aims at strengthening the Education/ Based on need Health: capacities of district governments and promoting economic health activities assessment by · Training (295) development through infrastructure investments. implemented, which communities · Rehabilitated Health focus upon improving Clinics (55) Major Achievements the overall quality of services and are Education: demand-responsive · School-based SPADA provides block grants of up to US$50,000 to districts to need management training (49) to support projects emerging from the subdistrict planning · Other training (255) process that contribute to reconstruction, reconciliation, and · School Rehabilitation development. Thirty percent of these grants are reserved to (121) support quality improvements in health and education. As · Books, tools, furniture (233) of September 30, 2010, a total of 883 subprojects have been completed in Aceh and Nias. These include 375 subprojects for infrastructure (42 percent), 266 for education (30 percent), and 242 for health (28 percent). Involvement of vulnerable groups, especially women, in the community-planning process and training activities has reached 30 percent, and up to 50 percent in some locations. Through a combination of training, practical exercises, professional technical support, and the establishment of learning networks, SPADA builds capacity at district and subdistrict levels. SPADA provided funding to expand the USAID-financed Local Governance Support Project (LGSP) to build capacity in ten Aceh districts on local development planning and budgeting. Implementation of the SPADA Economic Governance in Aceh (SPADA-EGA) component, cofunded by the MDF and the Department for International Development (DFID), has improved the local business climate in the targeted districts. SPADA supports school rehabilitation and provides school-based SPADA-EGA has also inspired local governments to apply management training as well as books, tools, and furniture to village the good governance principles­participation, transparency, schools. accountability, and equality­to other aspects of public services. Photo: Akil Abduljalil/MDF Secretariat 55 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth 15. Support to Strengthen the Role and Capacity of Civil Society Organizations (CSO) The Civil Society Organizations (CSO) project built the technical and activities, project management, strategic planning, leadership, organizational capacity of Nongovernmental Organizations (NGOs) and and gender-related issues. CSOs introduced community-based Community-based Organizations (CBOs) in Aceh and Nias. Small grants monitoring which facilitated the monitoring of the rehabilitation enabled NGOs and CBOs to engage in demand-oriented reconstruction and reconstruction process by communities, and created a activities. The project closed on May 31, 2010. space for communities and government to interact on issues and Grant Amount US$6.00 million problems encountered during reconstruction. Implementation Period February 2007­May 2010 United Nations Small grants to CSOs have enhanced basic social services, Partner Agency income generation, and women's empowerment. In some Development Programme cases the small grants were used for community social facilities, United Nations Implementing Agency Development Programme including early childhood facilities in Nias and Aceh and a public well in Nias. Other small grants facilitated increased income in Disbursements as of September 30, 2010 US$6.00 million communities through various economic activities such as goat farming, local waste-wood handicraft production and chili The CSO project strengthened the capacity of CSOs and CBOs farming in Aceh, and cacao farming and pig raising in Nias. in Aceh and Nias. Civil Society Resource Centers (CSRCs) Overall, the CSO-supported women's activities have improved established through the project in Aceh and Nias provided a the quality of life of local people and provided the financial and platform for local governments and CSOs to interact. CSOs/ social capital necessary to allow them to develop their potential CBOs were encouraged to participate in training and compete in planning, decision making and income generation. for small grants to support initiatives such as rebuilding basic social services, women's empowerment and income-generating Results as of project closing Targets Achievements activities. May 31, 2010 Small grants provided/ 142/ Major Achievements 141 value of grants US$2,380,477.34 * 33,398 The CSO project established an effective institutional setup to Beneficiaries of livelihood grants ­ (14,764 women) facilitate consultation and cooperation among stakeholders and CSRC staff trained (training of proponents for the enhancement of CSOs' roles in the rebuilding ­ 83 (25 women) trainers) of postdisaster Aceh and Nias. One Provincial Coordinating Team CSO staff trained ­ 1,100 (324 women) and 13 Technical Working Groups were established in Aceh, while * Based on final value of the 142 small grant initiatives at the end of the project. two District Coordinating Teams were formed in Nias. These bodies were involved in the selection of proposals, monitoring of project implementation, and facilitating community-based monitoring of reconstruction activities. The CSO project was instrumental in establishing two CSRCs­ IMPACT in Aceh and FORNIHA in Nias. These CSRCs have enabled civil society and organizations to more effectively communicate their individual and institutional needs, and the community now has a platform through which to lobby government on development priorities and needs. Through training and coaching, the CSRCs have created extensive CSO networks in both Aceh and Nias, with a roster of more than 100 trained facilitators readily available for rapid response deployment. The project trained more than 200 CSOs/CBOs in Aceh and The CSO project provides small grants to build the capacity of CBOs. Nias in a set of community development "competencies" This grant improved livestock production through the immunization of which included monitoring of rehabilitation and reconstruction goats in Singkil. Photo: Muslim Aid collection for CSO Project 56 Annexes: Project Portfolio | Sustaining the Environment 16. Aceh Forest and Environment Project (AFEP) The Aceh Forest and Environment Project (AFEP) helps protect Aceh's in preparation for turning over responsibility to the local Leuser and Ulu Masen forest ecosystems from illegal logging. The government. To date, more than 329 reported cases of illegal protection of this 3.3 million hectare area will safeguard not only the logging have resulted in follow-up enforcement by the police. water supply of approximately 60 percent of Aceh's population but also Southeast Asia's richest remaining source of biodiversity. The project's closing date has been extended until June 30, 2011. The project also integrates environmental concerns into reconstruction and development processes in Aceh. AFEP has Grant Amount US$17.53 million supported the provincial government's "Aceh Green" initiative Implementation Period February 2006­June 2011 in identifying sustainable funding mechanisms for Aceh's long- Partner Agency The World Bank term sustainable development. Another important activity is to continue training local partners to develop and independently Leuser International Foundation Implementing Agency (LIF) and Fauna and Flora apply low-technology methods for safeguarding farm land and International (FFI) crops from roaming elephants and other wildlife. Disbursements as of September 30, 2010 US$16.93 million Now in its last year of implementation, AFEP is prioritizing support to activities related to postproject sustainability of The AFEP works in Aceh's Ulu Masen and Leuser ecosystems impacts. The consolidation of sustainable forest management to mitigate the negative impacts of reconstruction on the activities will gradually transfer roles and responsibilities to the forests of Aceh, mainstream environmental concerns into Government of Aceh. Aceh's overall planning process, and build sustainable capacity and institutions for forest protection. Protection is based on a AFEP has developed curriculum and materials on environmental multistakeholder governance framework, forest monitoring awareness for schools, trained teachers, and established student and sustainable forest management. The project builds the eco-clubs with over 6,100 members across Aceh. The project has capacity of government forest and park management agencies supported village and mukim-level spatial planning processes and and strengthens community awareness and capacity to monitor initiated community nurseries to improve sustainable tree-crop and protect forest resources. The project also works to protect based livelihoods. The project is now focused on transferring and improve the livelihoods of communities in the forest areas these activities to local partners to ensure sustainability. through mitigating human-wildlife conflicts and supporting livelihood development activities. Progress as of Targets Achievements September 30, 2010 Major Achievements Spatial plans drafted 1 Province 2 Provinces with environmental and 7 Districts 10 Districts The project continues to focus on its core activities, including conservation inputs reflected monitoring and reporting illegal forest activities, training and Local level agreements Ulu Masen: Ulu Masen: equipping forest and community rangers, mitigating human- and legislation on forest 10 Mukim* 11 Mukim wildlife conflicts, and strengthening forest management management and Leuser: Leuser: capacity. This includes expansion of the Community Ranger conservation developed 30 Gampong** 27 Gampong program that provides environmentally friendly alternative School teachers trained and employment to ex-combatants, illegal loggers and poachers in provided with environmental 1,007 500 and conservation curriculum (65% women) the Ulu Masen and continuation of the Village Monitoring Team materials activities in the Leuser ecosystem. The project has also made Nurseries established and a significant contribution to Aceh's spatial planning process, 50 55 operational ensuring that environmental considerations are integral to these Forest area replanted/ plans. 5,000 5,238 restored (in hectares) * Mukim: A traditional Acehnese level of government between the gampong (village) and The project promotes effective protection and sustainable subdistrict. management of the Leuser and Ulu Masen forests. Coordination ** Gampong: The word used in Aceh for a village (called desa in other parts of Indonesia). and support to multistakeholder forums for forest management, along with multistakeholder monitoring and law enforcement networks created under the project, continue 57 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth 17. Tsunami Recovery Waste Management Programme (TRWMP) The Tsunami Recovery Waste Management Programme (TRWMP) builds The project partners with UN-HABITAT to deliver an 18-month capacity in local government to clear, recycle and dispose of tsunami capacity-building training package for local government on solid waste; implements sustainable waste management systems that benefit waste management. The construction of one permanent regional the environment through the collection, recovery, recycling and safe landfill for Kota Banda Aceh and Aceh Besar, one district landfill disposal of waste materials; and promotes waste management-related livelihoods. The project's closing date has been extended to June 30, in Nias and designs for eight more district landfills are currently 2012. in the procurement process. The project initiated a pilot fee-for- service scheme for municipal garbage collection, with a total Grant Amount US$39.40 million of 22,947 households participating. Local governments have Implementation Period December 2005­June 2012 expanded the TRWMP pilot project to incorporate an additional Partner Agency United Nations 16,123 households and 510 public institutions in district-run fee- Development Programme recovery schemes. United Nations Implementing Agency Development Programme TRWMP also partners with Terre des hommes-Italia (TDH-I) to Disbursements as of September 30, 2010 US$31.41 million support livelihoods in activities related to waste management. The project strengthens the waste-management and recycling activities of selected small and medium enterprises or The TRWMP was designed to provide a coordinated response community-based organizations. to the public health and environmental concerns associated with both tsunami/earthquake debris and municipal solid waste Results as of September 30, 2010 Targets Achievements management during the rehabilitation and recovery of Aceh and Nias. The program focuses on tsunami waste collection and Number of dumpsites closed or land clearance, capacity building of local municipal solid waste 10 10 upgraded to sanitary landfills departments and creation of livelihood opportunities based Households paying for household or on sustainable waste management. It has been funded and community waste collection (percent 30 16 implemented in three phases. Phase Three is now extending per district) capacity-building activities to ensure that sustainable solid Number of small & medium enterprises waste management infrastructure and services are in place after (SME) with sustainable livelihoods 140 161 the project closes. This pioneering initiative highlights a sector created in waste management sector that has so far received insufficient attention in Indonesia. Major Achievements Phase One of the project focused on disaster recovery activities, including creating immediate employment, restarting essential services, clearing debris and recovering recyclable materials for use during the rehabilitation and recovery process, as well as resuming municipal waste collection across eight districts in Aceh and Nias to reduce potential environmental and health-related risks. During Phase Two the program aimed to safeguard investments by building sustainability into program interventions and expanded coverage to a total of 13 districts. Phase Three will see the construction of two priority permanent landfills, construction of four more facilities in partnership with national and provincial public works agencies, and the potential construction of four other landfills and limited essential rehabilitation works. TRWMP continues to support waste- Abdullah, 50, works in the wood workshop near the landfill site in Banda Aceh. The TRWMP has provided a coordinated response to management related livelihood activities and capacity building the public health concerns and environmental impact of tsunami and in solid waste management for local governments. earthquake debris, and municipal waste. Photo: Abbie Trayler-Smith/Panos Pictures/Department for International Development (UK) 58 Annexes: Project Portfolio | Enhancing the Recovery Process 18. Technical Assistance (TA) to BRR and Bappenas The Technical Assistance (TA) to BRR and Bappenas Project supported of Aceh-Nias Database) provides a data repository to monitor and the BRR to efficiently enact its mandate to plan, implement, supervise coordinate rehabilitation and reconstruction activities funded by and coordinate the recovery process through providing technical support external organizations. The KNOW Center preserves information and key services until the closure of BRR in April 2009. The project on, and captures lessons learned from, the rehabilitation and was extended to June 30, 2012 to provide support to Bappenas in its coordination role as well as to assist the provincial Bappeda in Aceh and reconstruction efforts in Aceh and Nias carried out by the North Sumatra to coordinate and complete the remaining rehabilitation government, donors, and other stakeholders. SIMBADA is the and reconstruction efforts in Aceh and Nias. asset management information system to track assets created during the rehabilitation and reconstruction process in Aceh and Grant Amount US$24.48 million Nias. Bappenas is the custodian of these systems to ensure each Implementation Period July 2005­June 2012 has a relevant home for continued operations and maintenance United Nations to preserve and disseminate knowledge and data produced Partner Agency Development Programme during the recovery efforts in Aceh and Nias. BRR (to April 2009), Implementing Agency Bappenas (since April 2009) In addition to supporting disaster-related policy and procedure Disbursements as of September 30, 2010 US$24.48 million development, TA to BRR and Bappenas also provided technical assistance to develop and pioneer the streamlined AMDAL process to perform environmental impact assessments (EIA) The TA to BRR Project was designed to provide a rapid response during Phase Two. The assessments on clusters related to the to BRR on its technical and operational needs from July 2005 rehabilitation and reconstruction work in Aceh is particularly to April 2009. The project has been implemented in three relevant in meeting local development needs as well as setting phases, and was renamed in May 2009 to reflect the handover future national standards for environmental planning and of the coordination function for the postBRR rehabilitation development processes. and reconstruction efforts in Aceh and Nias to Bappenas. In February 2010, the Steering Committee endorsed Phase Three During the transition period from BRR to Bappenas, the project specifically to support Bappenas and the Bappedas of Aceh supported the finalization of the legal document on the Action and North Sumatra to enhance coordination, monitoring and Plan 2010-2012 that was endorsed by the Governors of Aceh and evaluation of the Aceh-Nias Reconstruction Continuation Action North Sumatra. Phase Three provides support to Bappenas and Plan 2010-2012 ("Action Plan 2010-2012"). Bappenas internally Bappeda Aceh and North Sumatra to enhance the coordination, refers to Phase Three as Technical Support to the Rehabilitation monitoring and evaluation, and implementation of the Action and Reconstruction Completion and Continued Coordination Plan. (TS to R2C3) Project . Major Achievements Phases One and Two provided technical assistance and operational support to BRR to achieve its mandate in a transparent and timely manner. This included development of rehabilitation and reconstruction policies, legal framework, and projects/programs, appraisal of proposals submitted by other organizations, and development of tools and capacity for monitoring the implementation of the overall reconstruction program. The project has also supported the development of 217 strategies/policies/guidelines, reviewed 192 proposals, and monitored 284 projects. Most planned activities in support of BRR were completed by its Bappenas played a coordination role bringing together multiple stakeholders to complete the Aceh-Nias reconstruction agenda and closure in April 2009 but support continued for the completion Action Plan for the Continuation of the Reconstruction and Rehabiliation and operation of three key management information systems 2010-12. (MIS) for the Aceh-Nias recovery program. The RAND (Recovery Photo: TS to R2C3 Collection 59 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth 19. Making Aceh Safer Through Disaster Risk Reduction in Development (DRR-A) DRR-A is designed to establish disaster risk reduction (DRR) as a normal University of Syiah Kuala to serve as a "think tank" on DRR for part of the development process in the core functions of Aceh's local the Government of Aceh. The project has established a wide governments and their public and private partners, especially in Aceh's range of partnerships with government, media, NGOs, and local communities where the most effective and direct actions can be academia and is fostering ownership of the DRR agenda with all taken to reduce physical, economic and social vulnerability to disasters. provincial agencies. Grant Amount US$9.87 million Implementation Period November 2008­December 2011 To promote public awareness of DRR, the project was United Nations instrumental in establishing PACC which has drawn participation Partner Agency from around 20 organizations/agencies including religious and Development Programme media sectors. A survey on public awareness of DRR is planned Ministry of Home Affairs and Implementing Agency Provincial Government of Aceh to better gauge PACC's needs and capacity. Disbursements as of September 30, 2010 US$5 million The DRR-A project strives to mainstream disaster risk reduction into the core functions of Aceh's local government agencies, its public and private partners, local communities and families, while taking into account the different capacities, needs, and vulnerabilities of the population. DRR-A will establish institutional arrangements and an enabling environment to facilitate participatory implementation of disaster risk reduction (DRR), involving established local institutions and using public awareness programs and gender-sensitive projects. Major Achievements In order to provide the enabling environment to institutionalize DRR measures, the DRR-A project has devoted much of its effort to drafting and facilitating an official review and approval of various legal and regulatory instruments. The DRR-A project has supported the development of the DRR Local Action Plan, the Public Awareness Coordinating Committee (PACC), and the development of the regulation (Pergub No. 102/2009) establishing the Provincial Disaster Management Agency (BPBA). The project was also successful in mainstreaming DRR into the final draft of the Aceh long-term development plan. The project is sensitive to gender in the context of DRR. Ten districts which are most prone to disaster were selected as pilot locations to implement community-based and gender- sensitive DRR. The DRR-A also loaned technical expertise in the development of the standard operating procedures for the tsunami early warning system (TEWS) in Aceh as a draft Pergub. The DRR-A project has made significant progress in the past Children participating in a DRR-A drawing competition during the year through the signing of agreements with various provincial International Day for Disaster Reduction Observance, Banda Aceh, government agencies. The Tsunami and Disaster Mitigation October 2010. Research Center (TDMRC) has been established at the Photo: Fakhrurrazi/UNDP 60 Annexes: Project Portfolio | Enhancing the Recovery Process 20. Aceh Government Transformation Programme (AGTP) The Aceh Government Transformation Programme (AGTP) provides Major Achievements strategic and essential support during the transition by ensuring that the provincial government has the necessary capacity and institutional AGTP provides support to enhance the capacity of the provincial strength to take over projects, assets, functions, capacities and resources executive to create the institutional and policy framework for from BRR at the end of its mandate. successful transition and recovery through the provision of Grant Amount US$13.98 million technical advisors (Tim Asistensi). This approach has resulted in 13 Implementation Period July 2008­December 2011 out of 16 targeted processes/policies approved by the provincial United Nations executive and six out of six coordination processes/procedures Partner Agency put in place in target line ministries at the provincial level. One Development Programme year after the advisors had completed their assignments the Ministry of Home Affairs and Implementing Agency Provincial Government of Aceh Provincial Communications and Transportation Agency, for example, had secured funding for the setup and operations Disbursements as of September 30, 2010 US$13.98 million of a new Center for Information Management to promote e-governance by unifying information systems developed by AGTP provides support to provincial governments as they take BRR to facilitate public access to information, in line with Law over responsibility for the rehabilitation and reconstruction No. 14/2008. process after the closure of BRR. The AGTP focuses on strengthening the capacity of the provincial government AGTP provided operational capacity-building support to through support to policy making, local government budget key provincial government agencies to effectively fulfill their process, transfer of assets to local institutions and anticorruption transition and recovery responsibilities. The project facilitated initiatives. the implementation of the UNDP Capacity Development Needs Assessments and Capacity Development Plans (CDP) in selected agencies. These agencies have started the process of developing their short- and long-term CDPs to be included in the provincial planning and budgeting documents. With project support, target agencies have prepared budgets for the execution of the "Action Plan for Accelerated Development" in accordance with Presidential Decree No. 47/2008. To ensure project sustainability and to build capacity in the long term, AGTP supports the Provincial Training and Human Resource Agency (BKPP) to retain, manage and transfer to provincial and district agencies the knowledge and skills required for a successful and sustainable transition. The project assists in drafting BKPP's faculty development program and development of an accompanying budget focusing on four areas identified in the BKPP strategy plan­asset management, gender, conflict resolution and planning and budgeting. Furthermore, AGTP is facilitating the accreditation of BKPP faculty members by the National Administration Bureau (LAN) through LAN's intensive 100-hour training course. AGTP provided technical support to the Government of Aceh to verify all assets received from BRR. Asset verification at the district level is still to be completed. Without the formal acceptance of assets from the central government, the Staff processing RAND data at the Bappeda office in Banda Aceh, operation and maintenance budget would not be appropriated, Aceh. resulting in the potential deterioration of investments made in Photo: Irwansyah Putra for MDF the aftermath of the tsunami disaster. 61 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth 21. Nias Island Transformation Programme (NITP) The Nias Island Transformation Programme (NITP) aims to enhance assistance in the drafting of the legal instrument (Perda) on the district capacity to successfully complete the recovery process and manage district financial information system and asset management ongoing local government responsibilities, applying best practices that and facilitated the implementation of a new district financial improve governance and reduce risks from future natural disasters. management system (SIPKD­Sistem Informasi Pengelolaan Grant Amount US$3.89 million Keuangan Daerah) in accordance with the Ministry of Home Implementation Period April 2009­December 2011 Affairs Circular No. SE.900/294/BAAKD. United Nations Partner Agency Development Programme NITP assisted the Bupati (the district head) of Nias to establish a Disaster Management Designated Working Group to deepen the Ministry of Home Affairs, Provincial Government of institutionalization of DRR in future local government processes. Implementing Agency The Working Group is under the supervision of Bappeda Nias and North Sumatra and District Governments in Nias has finalized the draft regulation for the establishment of the Disbursements as of September 30, 2010 US$2.5 million regional disaster alleviation board (BPBD) for Nias. All districts in Nias have agreed to incorporate DRR and hazard maps in their respective spatial plans. NITP builds on the work of BRR and other rehabilitation and reconstruction support projects to facilitate the transition from Completing the transfer of rehabilitation and reconstruction BRR's implementation to ongoing recovery in the Nias Island. assets is a major challenge that requires intensive and timely The NITP supports implementation of GoI-funded activities coordination of different levels of government as well as at the provincial and district levels as well as the development various ministries and departments at the center. It is further and implementation of pro-active DRR in the responsible GoI complicated by the creation of three new districts (pemekaran) structures and supporting NGOs. The majority of project work is in Nias in January 2010. Asset transfer has been delayed while dedicated to capacity building, especially relating to the transfer governments of the new districts are being formed. of assets to the relevant authorities. NITP has collaborated closely with two other MDF-funded projects, the AGTP and the TA to BRR and Bappenas Project to support and facilitate the asset verification and transfer process. Major Achievements NITP provides support to complete the transition from BRR implementation to local government management. Critical attention was provided to supporting BKRN 11 to prepare the Action Plan 2010-2012 as the basis for transition programming. Key systems have been adopted by the relevant agencies, and training on the planning, coordination, monitoring and evaluation of transition projects is underway. To expedite the completion of priority rehabilitation and reconstruction activities after the transition, NITP worked closely with the local government agencies (SKPDs or Satuan Kerja Perangkat Daerah) to prioritize the effective management of rehabilitation and reconstruction assets, including budgeting for their continued operations and maintenance. NITP provided 11 BKRN: Badan Kesinambungan Rekonstruksi Nias: Nias Sustainable Reconstruction Agency is the provincial-level coordinating body A staff member participating in on-the-job training on using the asset- for reconstruction in Nias. Its counterpart in Aceh is BKRA (Badan Kesinambungan Rekonstruksi Aceh) and at the central level is BKRAN management database, SIMBADA. (Badan Kesinambungan Rekonstruksi Aceh dan Nias). Photo: UNDP collection 62 Annexes: Project Portfolio | Economic Development and Livelihoods 22. Economic Development Financing Facility (EDFF) The Aceh Economic Development Financing Facility (EDFF) supports address critical issues affecting economic development in subproject initiatives for the economic development of Aceh and provides Aceh. A Call for Proposals was issued and eight subprojects assistance to the Government of Aceh in project management and were chosen­out of 121 proposals submitted­by a selection capacity building. committee, with input from local government, according to Grant Amount US$50.00 million agreed and transparent selection criteria. As of September 30, Implementation Period March 2009­June 2012 2010, Subgrant Agreements under the EDFF had been signed with five NGOs: the Canadian Co-operative Association (CCA); Partner Agency The World Bank Action Aid Australia (AAA); Swisscontact; Muslim Aid; and Ministry for the Development of Islamic Relief. Three additional subproject grant agreements Implementing Agency Disadvantaged Areas (KPDT) and Government of Aceh were signed after September 30 with the Aceh Development Fund (ADF); International Organization for Migration (IOM); Disbursements as of September 30, 2010 US$18.98 million and Caritas Czech Republic. Each of these organizations will implement activities together with local NGO and/or private The EDFF promotes post-tsunami economic recovery and fosters sector partners. sustainable equitable long-term economic development in Aceh in line with the Government of Aceh's own plans for economic The subprojects support activities in key economic sectors development. The project aims to build a more competitive and including cacao, coffee, patchouli oil, agriculture (rice, peanuts, supportive business environment necessary to create broad- soybeans), fisheries and fish processing, and livestock. Activities based private sector job opportunities and growth, targeting include: (i) provision of inputs, tools and equipment; (ii) quality the poor and other vulnerable groups. The project provides enhancement; (iii) improved processing; (iv) packaging; (v) subgrants to create opportunities for private sector job creation support for domestic and international market access; (vi) and growth. access to finance; (vii) cooperative development; (viii) improved business environment; (ix) local government capacity building; Major Achievements (x) women's empowerment; (xi) strengthening research and training centers; (xii) cattle breeding and fattening; and (xiii) The EDFF provides subproject grants (US$44.5 million of the public infrastructure. total budget) to selected NGOs to carry out activities that This project has developed a unique implementation model, with the Government of Aceh responsible for project implementation. The Ministry for the Development of Disadvantaged Areas (KPDT) is the lead implementing agency at the central level. Strengthening local government capacity to develop projects, including increasing procurement and financial management capacity, is an important aim of the project. On-the-job capacity building is provided to government staff, and the Government of Aceh has continuously supported the project through cofinancing and the cooperation of related government technical agencies. The project's capacity-building component has already shown significant achievements. Government participation in the processes of procurement, and subproject review, selection and supervision is helping to develop central and local government capacity to manage similar projects in the future. Women's cooperatives in Daya Beurer'eh village, Kabupaten Pidie are Initial delays in startup due to the need to set up new being assisted by the Canadian Co-operative Association (CCA) and implementation arrangements based on the innovative PASKA, a local NGO, through a grant from the EDFF. These women approach of this project, have now been overcome. Subproject are making emping crackers using their traditional techniques. The project will strengthen their cooperative and provide better technology proposals and grant agreements have been completed, and to improve their production. project activities are now mobilizing or starting up in 17 districts Photo: Vicki Peterson/EDFF Project Team across Aceh. 63 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth 23. Nias Livelihoods and Economic Development Project (LEDP) The Nias Livelihoods and Economic Development Project (LEDP) facilitates agriculture livelihoods' groups and capacity building for local postdisaster economic recovery and poverty alleviation by improving the government agencies under the Ministry of Agriculture, with ability of the local government to work with poor rural households in Nias a primary focus on Nias's key agricultural commodities­rice, to identify, develop and sustain livelihood opportunities. rubber, and cacao. Livelihoods improvement will be supported Grant Amount US$8.2 million through small community support grants and technical support Implementation Period October 2010­ June 2012 services to these groups. Partner Agency The World Bank The project was the last in the MDF portfolio to be approved and Ministry for the Development of thus the time remaining for project implementation is limited Implementing Agency Disadvantaged Areas (KPDT) by the MDF closing date of December 2012. Conditions in Nias, Disbursements as of September 30, 2010 US$0 including remoteness and difficult access to project areas, coupled with a long rainy season, present further challenges. Despite these obstacles, the national and local governments The Nias LEDP is designed to facilitate postdisaster economic and other MDF stakeholders have expressed their commitment recovery and poverty alleviation of communities affected by the to working together to facilitate the smooth implementation of tsunami and earthquake by creating an enabling environment this important project by the closing date of June 2012. for improved livelihoods and human development in the Nias Island. The project aims to empower beneficiaries to improve their technical, financial, management and marketing skills for livelihoods and economic development activities. The project also aims to develop management and technical capacity within the local government for the implementation of livelihood programs in Nias. This is one of four MDF projects specifically focused on the recovery of Nias, and was developed in conjunction with another MDF project, the Nias RACBP implemented by the ILO. Major Achievements The Grant Agreement for the project was signed in July 2010 and the project is now in the early phase of implementation. The project is being implemented by the Ministry for the Development of Disadvantaged Areas (KPDT). The Nias LEDP and RACBP projects work in the same subdistricts in Nias so that rural communities benefit from the synergy between enhanced rural livelihood opportunities and improved access, thereby increasing access to markets as well as other services and benefits contributing to human and economic development. The two projects share the same national-level steering committee (composed of Bappenas and KPDT) to improve higher-level coordination. At the local level, both coordinate through a joint local steering committee, headed by the Government of North Sumatra with representation of district governments through Bappeda. This close coordination through the national and local steering committees will help maximize synergies and the impact of both programs. Nias LEDP and the RACBP will work in the same areas to improve Project activities will support local government and community economic opportunities in rural areas of Nias. RACBP will construct roads to improve access to markets for farmers, while LEDP will groups through training and technical assistance. Most of the provide technical assistance to increase their production. activities involve training and group facilitation for women's and Photo: Shaun Parker/MDF Secretariat 64 Acronyms and Abbreviations List of Acronyms and Abbreviations AAA Action Aid Australia KPDT Kementerian Pembangunan Daerah Tertinggal (Ministry ACAP Anticorruption Action Plan for the Development of Disadvantaged Areas) ADF Aceh Development Fund KRRP Kecamatan-based Reconstruction and Rehabilitation AFEP Aceh Forest and Environment Project Planning Project (Nias) AGTP Aceh Government Transformation Programme LAN Lembaga Administrasi Negara (National Administration AMDAL Analisis Mengenai Dampak Lingkungan (Environmental Bureau) Impact Assessment) LEDP Livelihoods and Economic Development Project (Nias) BAFMP Banda Aceh Flood Mitigation Project LIF Leuser International Foundation Bappeda Badan Perencanaan Pembangunan Daerah (Regional M&E Monitoring and evaluation Development Planning Agency) MCK Mandi, cuci, kakus (Public bathing, washing and toilet Bappenas Badan Perencanaan Pembangunan Nasional (National facilities) Development Planning Agency) MDF Multi Donor Fund BKPP Badan Kepegawaian Pendidikan dan Pelatihan (Provincial MIS Management Information System Training and Human Resource Agency) MSW Municipal Solid Waste BKRA Badan Kesinambungan Rekonstruksi Aceh (Aceh MTR Mid-Term Review Sustainable Reconstruction Agency) NGO Nongovernmental Organization BKRAN Badan Kesinambungan Rekonstruksi Aceh dan Nias NITP Nias Island Transition Programme (Sustainable Reconstruction Agency for Aceh and Nias) O&M Operations and Maintenance BKRN Badan Kesinambungan Rekonstruksi Nias (Nias PACC Public Awareness Coordinating Committee Sustainable Reconstruction Agency) PDAM Regional Clean Water Company BNPB Badan Nasional Penanggulangan Bencana (National Pergub Peraturan Gubernur (Governor's Regulation) Disaster Alleviation Agency) PNPM Program Nasional Pemberdayaan Masyarakat (National BPBA Badan Penanggulangan Bencana Aceh (Aceh Disaster Community Empowerment Program) Alleviation Agency) R2C3 Rehabilitation and Reconstruction Completion and BPBD Badan Penanggulangan Bencana Daerah (Regional Continued Coordination Disaster Alleviation Agency) RACBP Rural Access and Capacity-building Project (Nias) BPN Badan Pertanahan Nasional (National Land Agency) RALAS Reconstruction of Aceh Land Administration System BRR Aceh-Nias Reconstruction and Rehabilitation Board RAND Recovery of Aceh-Nias Database CBLR3 Capacity Building for Local Resource-based Rural Roads Rekompak Rehabilitasi dan Rekonstruksi Masyarakat dan CBO Community-based Organization Permukiman Berbasis Komunitas (Community-based CCA Canadian Co-operative Association Settlement Rehabilitation and Reconstruction Project) CDA Community-driven Adjudication SDLP Sea Delivery and Logistics Programme (Aceh) CDD Community-driven Development SIMBADA Sistem Informasi Barang dan Aset Daerah (Regional CPDA Consolidating Peaceful Development in Aceh Assets and Equipment Information System CSO Civil Society Organization SIPKD Sistem Informasi Pengelolaan Keuangan Daerah (Regional CSP Community Settlement Plan Financial Management Information System) CSRC Civil Society Resource Center SKPD Satuan Kerja Perangkat Daerah (Regional Working Unit) CSRRP Community-based Settlement Rehabilitation and SME Small and Medium Enterprises Reconstruction Project SPADA Support for Poor and Disadvantaged Areas DFID Department for International Development (UK) TA Technical Assistance DIPA State budget execution document TBSU Trail Bridge Support Unit (Nepal) DRR Disaster Risk Reduction TDMRC Tsunami and Disaster Mitigation Research Center DRR-A Disaster Risk Reduction-Aceh Project TEWS Tsunami Early Warning System EDFF Economic Development Financing Facility TRPRP Tsunami Recovery Ports Redevelopment Programme EGA Economic Governance in Aceh TRWMP Tsunami Recovery Waste Management Programme EIA Environmental Impact Assessment UNDP United Nations Development Programme FFI Fauna and Flora International UPP Urban Poverty Project GoI Government of Indonesia WFP World Food Programme ILO International Labour Organization IOM International Organization for Migration IREP Infrastructure Reconstruction Enabling Program RFF Infrastructure Reconstruction Financing Facility KDP Kecamatan Development Program KNOW Knowledge Management Center 65 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth Map of Aceh and Nias SABANG C H I N A BANDA ACEH ACEH BESAR LHOKSEUMAWE PIDIE JAYA BIREUEN PIDIE ACEH UTARA ACEH A JAYA BENER MERIAH C ACEH LANGSA ACEH ACEH TIMUR BARAT TENGAH E NAGAN H ACEH TAMIANG RAYA GAYO LUES ACEH BARAT DAYA ACEH TENGGARA ACEH SELATAN NORTH S U M AT R A SIMEULUE SUBULUSSALAM ACEH SINGKIL NIAS UTARA GUNUNG SITOLI I N D O N E S I A NIAS N NIAS I BARAT A S NIAS SELATAN A U S T R A L I A 66 Republic of BRR Indonesia European Union Netherlands United Kingdom Canada World Bank Sweden Norway Denmark Germany Belgium Finland ADB United States of New Zealand Ireland America www.multidonorfund.org