U.S. provides $400m for Aceh, Nias

The United States handed over on Thursday US$400 million in aid to support the reconstruction of tsunami-wrecked Aceh and Nias.

President Susilo Bambang Yudhoyono and United States Ambassador to Indonesia Lynn B. Pascoe (left photo above) witnessed the signing of a memorandum of understanding to mark the disbursement of the assistance at the State Palace.

Representing the Indonesian government was Kuntoro Mangkusubroto, who heads the Aceh and Nias Reconstruction and Rehabilitation Agency, while the U.S. was represented by William M. Frej, the mission director of the United States Agency for International Development (USAID).

Kuntoro said the U.S. aid would be channeled in the form of programs, including relief work, the reconstruction of a 240- kilometer road connecting Banda Aceh and Meulaboh, and micro- credit activities. The U.S. allocated some $250 million for roadwork alone.

Frej said the road reconstruction projects would be offered to national companies and were expected to begin next month. -- JP