ADB to provide $300m for Aceh reconstruction<\/p>\n
Urip Hudiono, The Jakarta Post\/Jakarta<\/p>\n
The Asian Development Bank (ADB) will provide an additional
\nUS$300 million in grants for the reconstruction of tsunami-
\nstricken Nanggroe Aceh Darussalam and parts of North Sumatra.<\/p>\n
The money will be part of the $600 million in additional funds
\nthat the Manila-based bank is to provide out of its Asian Tsunami
\nTrust Fund to five badly hit countries in the region: India, the
\nMaldives, Sri Lanka, Thailand and Indonesia.<\/p>\n
The additional money will bring the ADB's total financial
\ncommitment to the tsunami-affected areas to $775 million,
\nincluding the $175 million it had pledged from the reallocation
\nof ongoing projects for tsunami-related relief efforts.<\/p>\n
Previously, the ADB had provided an emergency soft loan of
\n$126.37 million for Aceh and North Sumatra out of funds
\noriginally earmarked for 13 ADB projects in Indonesia to address
\nimmediate and short-term requirements in humanitarian relief
\nefforts and repairing critical basic services.<\/p>\n
ADB president Haruhiko Kuroda said he hoped the
\nadditional money could be promptly disbursed for projects to
\nrestore essential infrastructure and services.<\/p>\n
"The disbursement of the funds is essential to ensure that the
\nincomes and livelihoods of people in the area are quickly
\nrestored," he said, after witnessing the signing of a memorandum
\nof understanding on the additional funds on Thursday by ADB
\ndirector general for Asia and the Pacific Shamshad Akhtar and
\nState Minister for National Development Planning Sri Mulyani
\nIndrawati.<\/p>\n
Kuroda said the $300 million would be used to finance a
\ntwo-phase, multi-sector Earthquake and Tsunami Emergency Support
\nProject (ETESP) to support disaster management, reconstruction
\nand rehabilitation in the affected areas of the two provinces.<\/p>\n
The first phase would last from April to June 2007, and would
\ninvolve the tackling of urgent priorities in some of the less
\ndevastated areas.<\/p>\n
"These include projects on health services, rural water and
\nsanitation, irrigation and flood control, restoration of roads
\nand bridges, local government capacity building and spatial
\nplanning," Kuroda said.<\/p>\n
The second phase would run from June 2007 until April 2008,
\nand would involve disaster management and reconstruction
\nactivities in the most devastated areas.<\/p>\n
"The work will include continuing the first phase activities,
\nespecially spatial redesigning, as well as the restoration of
\ncommunity infrastructure, rural electrification and public
\nadministration," he added.<\/p>\n
To ensure that the money reached the intended targets, the ADB
\nwould set up a treasury office in Aceh and sponsor a ministerial-
\nlevel conference on March 18 in Manila to monitor the progress
\nmade and share information on fund management.<\/p>\n
"We are also open to cooperating with public auditors to
\nmonitor the funds," he said.<\/p>\n
The Supreme Audit Agency (BPK) has stated that it intends to audit donor
\nfunds for Aceh, while the Ministry of Finance also plans to open
\na treasury office in the province.<\/p>\n
Meanwhile, Mulyani gave assurances that the additional funds
\nwould be used to finance Aceh's reconstruction, the blueprint for
\nwhich is expected to be finished by the end of March. She also
\nexpressed the hope that the ADB grant would encourage other
\ndonors to give aid in the form of grants.<\/p>\n
The Consultative Group on Indonesia (CGI) has already pledged
\na preliminary commitment of $1.2 billion in grants and $500
\nmillion in interest-free loans for Aceh, apart from $3.4 billion
\nin new loans from the group for Indonesia this year.<\/p>\n
Mulyani said the government would likely need up to Rp 10
\ntrillion (US$1.07 billion) for the reconstruction of Aceh this
\nyear and Rp 45 trillion over the next five years. The government
\nhad previously assessed material losses and damage in the
\nprovince at $4.5 billion.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/adb-to-provide-300m-for-aceh-reconstruction-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}