1.1 Context at Appraisal
(brief summary of country and sector background, rationale for Bank assistance)
- On May 27, 2006, a massive earthquake (registering 6.3 on the Richter scale) struck the populous south-central coast of Java, killing 5,744 people and severely damaging basic infrastructure, housing, schools and clinics. In districts across Yogyakarta and neighboring Central Java, 350,000 houses were damaged beyond repair and 278,000 suffered lesser damage. Besides housing, damage and losses to businesses in the productive sector were considerable, adversely affecting the livelihood of about 116,000 inhabitants. The reconstruction efforts of the GOI was impressively effective and as of June 2007, more than 80 percent of affected houses were repaired or replaced, and good progress had been achieved in repairing the infrastructure. Despite this success, however, according to a report from the Java Reconstruction Fund (JRF) in late 2007, the region had not yet recovered from the profound economic impact of the disaster.