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Multi-Donor Fund for Aceh and Nias - An Overview

Aceh Multi donor trust fund              

 

Background

In the wake of the tsunami and earthquakes, Indonesiareceived multiple pledges for relief, rehabilitation and reconstruction of Aceh and Nias (estimated at US$8.5 billion). The government requested the World Bank to set up a Multi Donor Fund as one of the mechanisms to ensure an efficient and coordinated delivery of financial support.

  • It currently pools US$704.06 million making it one of the Bank’s largest trust funds.
  • The Multi Donor Fund has a close working relationship with BRR BRR co-chair, identify priority areas for funding and receive technical assistance from the Fund.

Timeline

February 2005 – Ministry of Finance requests the Bank to establish the fund

  • March 2005 – Government recovery blueprint is approved
  • April 2005 – Bank Board establishes Trust Fund
  • Early May 2005 – BRR comes into existence
  • May 10, 2005 - First Steering Committee Meeting  four projects worth US$196 million approved, (land titling, housing, urban and rural community infrastructure, all strongly community-based projects).
  • February 17, 2006 - BRR and MDF approve a joint strategy to focus the remaining funds (US$220 million) on infrastructure projects through BRR/ MDF co-financing.
  • December 2006, four donors have made additional pledges: The Netherlands, United Kingdom, Sweden and Germany, totaling about US$100 million.

Current Status

  • 17 active projects in: land titling, community infrastructure, housing, BRR support, waste management, forest and environment, rural roads, strengthening civil society, port reconstruction, sea transportation/logistics, flood mitigation, infrastructure planning and implementation, support for poor areas and maintenance of the Lamno-Calang road.
 Pledged Funds         

 US$704.06 million

 Committed to Projects 

 US$482.0 million

 Disbursed   

 US$214.0 million

                                   

 

Objectives/Policy of the Multi Donor Fund

The MDF should efficiently and effectively contribute to the reconstruction of a better Aceh and Nias.

Key mechanisms:

  • Pooling of donor resources
  • BRR submitting project proposals to Steering Committee for approval
  • Providing forum for donor coordination
  • Providing forum for policy dialogue
  • Most funds flowing through the government budget

Sectoral policy: Multi Donor Fund funding those sectors that are insufficiently addressed by other sources (transport, housing, flood control and irrigation works, environment, and energy)

 

Governance StructureMDF structure

Voting members

  • Government of Indonesia six representatives: National Planning Board /Bappenas, Ministry of Finance, Governor of North Sumatra and Governor of Aceh. Pak Kuntoro, head of BRR is co-chair
  • Donors European Commission as largest donor acts as co-chair
  • Civil Society 2 persons representing the civil society of Aceh and Nias
  • World Bank as Trustee acts as co-chair
  • Non-voting members
  • International NGOs
  • United Nations

Donors

 

15 donors, pooling US$704.06 million in funds

 

European Commission

282.24

Netherlands

171.60

United Kingdom

   76.01

Canada                   25.78

IBRD (World Bank)

   25.0

Denmark

   18.03

Norway 

   19.57

Sweden

   20.72

ADB

   10.0

United States of America

   10.0

Germany

   13.93

Finland

       10.13

Belgium

      11.05

New Zealand

      8.8

Ireland

      1.2

Total Pledges

       704.06

 


MDF Portfolio-at-a-Glance
 

Project Name

Description

Amount

 Approved Projects:

Partner Agency = PA
Implementing Agency = IA

1. Recovery of Property Rights and Reconstruction of Land Administration System (RALAS)Identifies land ownership and issues land titles through recovery of land records, establishment of a land database and community land inventory, resulting in the rehabilitation of the land administration system throughout Aceh and Nias.

US$28.5 million

PA: World Bank
IA: BPN (National Land Administration agency)

2. Community Recovery through the Kecamatan Development Project (KDP)This provides block grants directly to the villages that they can use for rebuilding. This will support the restoration of community infrastructure in up to 6,000 villages.

US$64.7 million

PA: World Bank
IA: Ministry of Home Affairs

3. Urban Poverty Program (UPP)This provides block grants directly to urban neighborhoods to rehabilitate and develop community based infrastructure in all 402 urban neighborhoods in Aceh.

US$17.96 million

PA: World Bank
IA: Ministry of Public Works

4. Technical Support for BRR NAD-NiasSupport to the BRR to effectively implement its mandate by providing technical support and key services.

US$14.74 million

PA: UNDP
IA: BRR

5. Community-Based Housing and Settlement Rehabilitation and Reconstruction ProgramHand in hand with KDP and UPP, it provides grants to up to 200 communities to  cover housing and settlement infrastructure needs  through a community driven decision making mechanism.

US$85 million 

PA: World Bank
IA: Ministry of Public Works

6. Tsunami Recovery Waste Management ProjectBuilds government capacity in waste management, creates immediate employment and longer-term livelihoods in waste management and provides benefits to the environment through collection, recovery and recycling of waste material.US$14.43 million  

PA: UNDP
IA: Dinas Kebersihan under Ministry of Public Works

7. Aceh Forest and Environment Project

 

Protects the Leuser and Ulu Masen forest ecosystems from illegal logging. It will ensure continuous provision of water supply to 60 percent of the Acehnese population, flood prevention and mitigation of erosion.

US$17.53 million

PA: World Bank
IA:Leuser Int’l  Foundation (LIF) & Fauna and Flora int’l (FFI)

8. Labor-Based Rural Road Rehabilitation projectProvides capacity building to local governments and contractors to reconstruct and maintain roads. It will rehabilitate district level roads in five districts in Aceh and Nias.

US$6.42 million

PA: UNDP
IA: ILO

9. Strengthening the Role and Capacity of Civil Society Org. in the Recovery of AcehProvides up to 80 NGOs and over 200 community based organizations with training in organization,  project management and others, to enable them to increasingly contribute to the reconstruction process.US$6 million

PA: UNDP
IA: BRR

10. Flood Mitigation Program for Banda AcehProtects the most vulnerable communities of Banda Aceh from flooding through installation of flood check valves and reconstruction of pumping stations.USD 4.5 million

PA: World Bank
IA: Muslim Aid

11. Sea Delivery and Logistics Program Phase IProvides shipping services and logistic support to all reconstruction agencies in Aceh and nias though a sea freight service along the coast of Aceh and Simeuleu and Nias.US$24.7 million

PA: WFP
IA: WFP

12. Reconstruction and Rehabilitation of Ports Phase IProvides physical designs for the reconstruction of three major ports in Aceh and Nias. It contributes to the transportation of reconstruction goods and economic recovey in the longer term.US$3.58 million

PA: UNDP
IA: UNDP

13. Infrastructure Reconstruction Enabling Project (IREP)

Enables a coordinated reconstruction of infrastructure in Aceh and Nias. Physical infrastructure designs and implementation support at the Westa coast and Nias. Support the BRR in planning and coordinating infrastructure reconstruction thourgh international services.

US$42 million

PA: World Bank
IA: BRR

14. Nias Kecamatan Based Recovery and Planning Project

This project uses the KDP-system to rebuild 5,000 houses and improve education and health facilities in four sub-districts.  It will lead to improved planning and service delivery by local governments and provides a model for community participation.

US$51.5 million

(US$25.75 m – MDF, US$25.75 m – BRR)

PA: World Bank
IA: BRR

 15. SPADAThis project will invest to provide 19 district governments in Aceh and Nias with block-grants to fund infrastructure, health and education projects at sub-district level.US$25 million

PA: World Bank
IA: BRR

16. Road and Bridge Repair Lamno-CalangThis project will fun emergency repairs to several roads and bridge locations on the Lamno-Calang road.

US$1.2 million

IA: UNDP

PA: UNDP
17. Infrastructure Reconstruction Financing Facility

Provides funds for key infrastructure projects identified through the IREP. Co-financing with BRR.

US$291 million

(US$100 m - MDF)(US$191 m - BRR)
 

  Committed: US$482 million

 

TOTAL Allocation Projects and Concepts

US$482 million

 

single blue arrow Projects Update - August 2006  (117kb pdf)

 

More information:

single blue arrow Multi Donor Fund (MDF) for Aceh and Nias official website

 

December 2006




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