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The Multi Donor Fund Reports on Impact and Support for Transition

Available in: Bahasa (Indonesian)

Contact:

Nia Sarinastiti
Ph: +62-811-856-556
nsarinastiti@worldbank.org

Jakarta, December 18, 2007 -- The Multi Donor Fund launched its public report stating that it has allocated US$ 492 million, out of its US$ 673 million funds, to projects related to community driven recovery of housing and infrastructure, large scale infrastructure, rebuilding governance structures, sustaining the environment and rebuilding livelihoods.

“The Multi Donor Fund will use its remaining funds to fill the most vital gap during the last phase of the Government of Indonesia’s reconstruction program,” said World Bank Country Director Joachim von Amsberg acting as the Multi Donor Fund Trustee and Co-Chair Lead, during a briefing with media on Tuesday. “The available funds will focus on projects that relate to transition and safeguarding reconstruction investments by focusing on rebuilding livelihoods,” Joachim continued.

These projects include total US$ 86 million projects that have been approved and currently under preparation:

  • Economic Development Financing Facility to foster job creation and sustainable economic recovery and growth in Aceh;
  • Disaster Risk Reduction to assist in developing disaster risk management policy;
  • Technical Assistance to BRR -Support to Transition in Aceh and Nias to support ongoing activities of BRR at a critical juncture of its mandate: transition to Local Government and exit from Aceh.
  • Aceh Government Transformation Program that support the Provincial Government to efficiently assume the responsibilities, functions and assets it will inherit from the BRR in 2009 and develop the capacity it needs to effectively lead and facilitate the long term social and economic development in the province, and
  • Sustainable Recovery of Livelihoods to support the development and implementation of sustainable livelihood strategies for small holders affected by the tsunami and earthquake-related disasters in selected districts in Aceh

Key achievements made during the two-and half year existence of the Multi Donor Fund were highlighted by Head of the Agency for Rehabilitation and Reconstruction (BRR) Kuntoro Mangkusubroto as one of the most extensive projects with large impact to communities.

“Programs that are related to community driven activities have been faster in implementation and provided the largest overall progress,” said Kuntoro. “As for reconstruction in other areas, such as the development of large scale infrastructure investments, are meeting challenges due to intrinsic factors. In addition, a large part of Multi Donor Fund projects support the recovery of physical assets, therefore making these assets sustainable will be a challenge in the upcoming months and years,” continued Kuntoro.

Activities by the Multi Donor Fund have been and continue to be in line with the Paris Declaration that emphasizes on country ownership, harmonization, alignment, managing for result and mutual accountability. Karine Genty, Head of the Development Co-operation of the European Commission said that The Multi Donor Fund has achieved strong ownership for the program on the Government side and is working very close with the Government of Indonesia’s Agency for Rehabilitation and Reconstruction (BRR) and have engaged with the Governor Irwandi’s office since his new posting in January, which will be critical as BRR ends its mandate in April 2009.

We are working together with the Multi Donor Fund to ensure that we will be ready when BRR closes office in 2009 and be able to sustain the transferred assets and rebuilt public service,” said the vice Governor Muhammad Nazar. “In addition, fostering economic growth will be of equal importance during the remainder of the reconstruction, as well as beyond, to create long-term livelihood opportunities that are in line with the potentials of each region.”

 

About The Multi Donor Fund
The Multi-Donor Fund for Aceh and Nias is a partnership of the international community, Indonesian government and civil society to support the recovery following the earthquakes and tsunami. It contributes to the recovery process by providing grants for quality investments that are based on good practice, stakeholder participation and coordination with others. In doing so, the Multi-Donor Fund seeks to reduce poverty, (re)build capacity, support good governance and enhance sustainable development.

The Multi Donor Fund for Aceh and Nias consists of donor countries and international agencies: the European Commission, the Netherlands, United Kingdom, World Bank, Sweden, Denmark, Norway, Germany, Canada, Belgium, Finland, Asia Development Bank (ADB), United States, New Zealand and Ireland. For more information, visit www.multidonorfund.org




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