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Indonesia

Indonesia: Multi Donor Fund endorses two projects worth US$ 100 million with BRR co-financing

Today, Thursday March 23, the Multi Donor Fund for Aceh and Nias endorsed two new project concepts that will be 50% co-financed by the BRR. This is the first time in the recovery process in Aceh that the BRR embarks on financial partnership with a donor.
The first project, Support for Poor and Disadvantaged Areas (SPADA), will invest US$ 50 million to provide 19 district governments in Aceh and Nias with block grants to fund infrastructure, health and education projects at sub-district level (kecamatan-level). It will closely cooperate with other capacity building initiatives.

The second project is based in the earthquake affected island of Nias and will rebuild 5,000 houses, and improve education and health facilities (with US$ 50 million) in four sub-districts. It will help to accelerate the reconstruction effort in Nias which has received insufficient assistance to date .

Pak Bima Wibisana, BRR deputy for government institutions, education, health and development, commented, "The BRR considers this project to be a key element in strengthening the capacity of local government institutions. Block grants provided to local governments will leverage district budgets and thus help improve overall services."

Pak Willy Sabandar, Head of BRR -Nias, remarked, "The project strongly supports the goals of the overall recovery strategy for Nias. It will lead to improved planning and service delivery by local governments, and provides a model for community participation that can be used throughout the Nias recovery program."

The Multi Donor Fund for Aceh and Nias pools over US$526 Million in grant resources, provided by 15 donor countries and international organizations to support the implementation of the Government's rehabilitation and reconstruction process in close cooperation with the BRR. The Fund is managed by the World Bank and the donors include the European Commission, the Netherlands, the United Kingdom, the World Bank, Denmark, Norway, Canada, Sweden, the Asian Development Bank, Germany, the United States, Finland, Belgium, New Zealand and Ireland.

For more information contact:

Multi Donor Fund

Sabine Joukes
Tel. 021-5299-3000 ext. 3223
Fax.021-5299 3111
E-mail: sabine.joukes@gmail.com

BRR

Puteri N. Watson
Tel. 08158316339
E-mail: puteri@brr.go.id