Indonesia: ADB submits $25 million Aceh reconstruction projects for approval

News and Press Release
Originally published
Manila, Indonesia-Relief -- The Asian Development Bank announced the bank has submitted $25 million reconstruction project in to Rehabilitation and Reconstruction Agency for Aceh and Nias (BRR). The ETESP (Earthquake and Tsunami Emergency Support Project), ranging from restoring fishing communities, rehabilitation of irrigation system, to construction of houses in Aceh, is part of its $331 million to help rebuild tsunami hit areas.
''ADB has been working closely with BRR to fast-track the design and implementation of projects on the ground. To date ADB has submitted eight subprojects with support for $25 million to BRR for approval. In addition, ADB is also formulating support initiatives to help NGOs improve project formulation and financial management - needs that are critical given the large flow of funds channeled with NGO support,'' ADB said on Friday.

Aside from announcing their reconstruction proposal, ADB also warn of several issues that need immediate attention: streamlining of the mechanisms for financing flows through the Budget. While Parliament has approved the budgetary allocations for Aceh rehabilitation and reconstruction in June, smooth procedures need to be established. ADB is moving ahead with subprojects in selected sectors on a pilot basis to introduce sound and transparent procedures.

ADB also warns that Aceh and Nias will have their monsoon season in August-September. Unless reconstruction starts soon, construction of housing and other vital infrastructure will be seriously delayed. The bank also said that the availability of raw materials, labor and skilled contractors is likely to pose major challenges as well. BRR needs to coordinate the logistics-side of support effectively. =A9 nas