JAKARTA, July 14, 2006 - The Multi Donor Fund issues its First Year Report today, highlighting the results it achieved in the past 12 months. The Multi Donor Fund for Aceh and Nias, was set up in May 2005 and pools the funds of 15 donors, amounting to US$550 million in funds to support the recovery and rehabilitation of Aceh and Nias. Increasingly, the Fund co-finances projects with the BRR and is looking forward to entering a co-financing agreement with local governments for infrastructure projects. The Multi Donor Fund currently has a portfolio of 16 projects, providing assistance to four underfunded sectors for post-tsunami rehabilitation and reconstruction: recovery of communities, infrastructure and transport, capacity building and governance, and sustainable management of the environment. It does so in close coordination with the BRR, local Goverments, civil society, International NGOs and the United Nations. In one year of operation, the Multi Donor Fund has achieved considerable results: preparation of 50,000 land titles; 2,800 houses rebuilt or repaired; reconstruction of over one thousand Kilometers of roads; rehabilitation of over 400 bridges and schools; and provision of work for nearly 24,500 people are all results from the first four Multi Donor Fund Community recovery projects supporting communities to decide how to recover their own neighborhoods – for a total value of US$222 million. Infrastructure and transport projects assist the BRR to coordinate the entire post-tsunami infrastructure portfolio. These projects are co-financed by the BRR (totaling US$386 million, including US$200 million from the BRR) and provide for shipping services in Aceh and Nias, the rehabilitation of ports, flood mitigation and the planning and design for large infrastructure for Nias and the West coast. The Multi Donor Fund is the largest contributor to sustainable Management of the Environment with a waste management project, to clean up and recycle thousands of tons of tsunami waste and via a forest and environment project to protect the Leuser and Ulu Masen ecological ecosystems (US$ 32 million). Five capacity building projects are being undertaken including technical assistance to the BRR, to help the recovery agent implement its mandate, two projects to strengthen local government capacity, and civil society and private sector strengthening projects to help ensure that local government, civil society and the private sector will be ready to take over the work of redeveloping Aceh and Nias when BRR’s mandate ends (representing US$ 93 million, including BRR co-financing). Financial Facts The fund has received a total of US$547 million in pledges, of which US$392 million has already been allocated, (and another 4 projects are under preparation for US$104 million). US$146 million has already been disbursed to projects and another $82 million will be disbursed in the next six months. For all of the above Multi Donor Fund projects, it is imperative that comprehensive anti-corruption mitigation measures are followed at all levels. Apart from the stringent administrative and financial regulations, the Fund also has a feedback mechanism in place, that allows communities to submit complaints on possible corruption cases. So far, several cases of corruption were brought forward and have been resolved at the community level. A lot of work still needs to be done and most of the above projects will need four years to complete. It will remain a challenging task to continue the recovery of Aceh and Nias and the Multi Donor Fund together with its partners are committed to it. The Multi Donor Fund will allocate its remaining funds, after a vigilant analysis of the current needs in Aceh and Nias together with the BRR, ensuring that the under funded sectors receive much needed resources. Pak Kuntoro Mangkusubroto, Director of the BRR, commented that “The Multi Donor Fund has played, and continues to play, a major role in the reconstruction and rehabilitation of Aceh and Nias. It has proven itself to be responsive and adaptive to the needs of the recovery programme. The Multi Donor Fund has enabled heightened coordination between donors themselves and close partnership between donors and BRR. This has enabled funding of large scale projects that otherwise may have been ‘left behind’ and has provided the foundation for such innovative models of funding as co-financing and portfolio management. The Multi Donor Fund is a model of collaborative effort for the international community. Jean Bretéché, Ambassador, Head of Delegation, European Commission noted that "The Multi Donor Fund proved, over the past year, to be the most effective vehicle to channel funds in a coordinated manner to support the reconstruction effort in Aceh and Nias. As a co-chair, contributing to 50% of the Multi Donor Fund budget, the European Commission has fully supported the adoption of the BRR Strategy for infrastructure recovery as the framework for using the remaining Multi Donor Fund resources from 2006 onwards, thus allowing the Fund to fill critical gaps. We are confident that this new financing strategy, through increased involvement of the BRR and local governments both at financing and implementation levels, will lead to increased ownership and sustainability of the Multi Donor Fund-financed activities." Andrew Steer, World Bank Country Director for Indonesia shared that “The Multi Donor Fund was set up to support the government in the post disaster reconstruction by coordinating different sources of funding. Today we are proud to show the first year results of that partnership in which we empower communities to decide and plan by themselves how to recover their villages and houses. Further the Fund plays a major role in protecting and recovering the environment, builds local capacity and is now focusing on planning and rebuilding major infrastructure in Aceh and Nias.” The Multi Donor Fund for Aceh and Nias, consists of 15 donors: European Commission, the Netherlands, United Kingdom, World Bank, Norway, Denmark, Canada, Sweden, Asian Development Bank, Germany, United States, Belgium, Finland, New Zealand and Ireland. - | 
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