Australia and Indonesia start spending tsunami aid package
Australia and Indonesia start spending tsunami aid package
Michelle Nichols, Reuters/Canberra
The rebuilding of the main hospital in Indonesia's tsunami- devastated Aceh province will be among the first projects targeted by a A$1 billion (US$787 million) aid package from neighboring Australia.
The reconstruction of the hospital was the centerpiece of a A$50 million Aceh rehabilitation program unveiled by Australian Foreign Minister Alexander Downer and his Indonesian counterpart Hassan Wirayuda on Thursday.
The Zainoel Abidin hospital, in the provincial capital Banda Aceh, was severely damaged by the tsunami and most of its equipment was destroyed.
The aid would also provide education equipment and teacher training and help to restore essential government services.
"We see this is a very important initiative, not just for the reconstruction of Aceh, but also for the general partnership between Australia and Indonesia," Australian Treasurer Peter Costello told a news conference.
"It is a very large investment for Australia," he said.
Australia's aid pledge to its northern neighbor was the single largest following the Dec. 26 Indian Ocean earthquake and tsunami which left nearly a quarter of a million people dead or missing in Aceh on the northern tip of Sumatra island.
In total more than 300,000 people were killed or are missing across 13 Indian Ocean nations.
Downer, Costello and Hassan reassured Australians that the aid money would reach the people in need and be deployed for the purposes it was given because all spending decisions would be jointly made between Australia and Indonesia.
"This mechanism is important for both of us...to ensure that the whole process is as transparent and accountable as possible," Hassan told the news conference. "This is very positive in enhancing the bilateral relations between Indonesia and Australia."
The ministers also agreed on a A$10 million program to strengthen Indonesia's disaster management and response systems and build a closer partnership between Indonesia's disaster coordination authority and Emergency Management Australia.
Australia's A$1 billion pledge consists of equal parts of grant assistance and financing, offering Indonesia A$500 million interest free for up to 40 years, with no repayment of the principal for 10 years.
Australian Prime Minister John Howard and Indonesian President Susilo Bambang Yudhoyono, who will visit Australia later this month, formed the Australia-Indonesia Partnership for Reconstruction and Development to oversee the five-year package.
Australia has adopted a more hands-on aid approach in a bid to ensure its money is spent wisely and to prevent smaller island nations in the Pacific, which receive almost half Australia's aid, from becoming failed states or havens for terrorist groups.
The Australian and Indonesian delegations will meet again on Friday for the countries' annual ministerial forum.
Australia and Indonesia have often had a rocky relationship, especially after Australia led a UN-mandated intervention force into East Timor in 1999 to quell violent revolts by pro-Indonesia militias after Timorese voted for independence from Jakarta.