Asian Development Bank

JFPR 9074: Seismically Upgraded Housing in Aceh Darussalam and North Sumatera
Indonesia

Project Summary

Name of Counterpart (loan) Project(s)

1. Earthquake and Tsunami Emergency Support Project (ETESP)
2. Neighborhood Upgrading and Shelter Sector Project (NUSSP)

Grant Type

Task Officer/ Department

Budget

Executing Agency

Implementing Agency(ies)

Scope

1. Development of prototype designs of seismically enhanced, single-family housing structures.
2. Production of detailed information kits.
3. Financial institutions selected and trained to channel promotional housing grants, using earthquake-resistant technology and design.
4. Seismically enhanced single-family homes constructed using approved design.

Objectives

Grant Development Objective (GDO)

SUHA will develop prototypes of affordable, seismically resistant housing (able to withstand at least 7.0 seismic events as measured by the Richter scale), which utilize readily available materials and can be assembled rapidly in modular fashion with minimal assistance from building professionals. Prototypes will be disseminated through selected companies and nongovernment organizations (NGO), and promoted as grants made available via banks and other microfinance institutions such as Bank Rakyat Indonesia (BRI), Bank Perkreditan Rakyat (BPR), Permodalan Nasional Madani (National Fund for Social Investment [PNM]). The development objective of SUHA is to demonstrate the appropriate technology for replacement of destroyed housing stock with affordable and seismically enhanced structures, and lay the groundwork for a sustainable system of promotion of such housing through banks and microfinance institutions. The selected banks and other microfinance institutions are expected to develop a housing credit line that promotes earthquake-resistant housing to a wider clientele.

Project Purpose

Enhance capacity of earthquake-resistant construction of housing, and provide physical evidence of good practice through prototypes of earthquake-resistant housing in all districts of Aceh and Nias.

Expected Outputs

1. At least three prototype designs of seismically enhanced, single-family housing structures of 36 square meters (m2) approved, and up to 34 prototypes built in various communities.
2. One company and/or NGO selected to produce detailed information kits.
3. Not less than 10 financial institutions selected and trained to channel promotional housing grants, and to prepare a credit line for housing loans whose eligibility is linked to utilization of earthquake-resistant technology and design.
4. Approximately 300 seismically enhanced single-family homes constructed using approved design.
5. Undisputed land ownership is a condition for approval of grant-funded housing.

Main Project Components and Activities

A. Development and Construction of Prototypes

The implementing agency (IA), with participation of the executing agency (EA), will conduct a rapid open design competition among domestic practitioners and institutions, which will lead to the selection of proposals for prototypes. Participants will research anti-seismic designs and suitably adapt these to the conditions of Nanggroe Aceh Darussalam (Aceh) and North Sumatera provinces. These prototypes will be built in 1:1 (or scale models) and be tested in the Building Materials Research Institute (Puslitbangkim) of MPW in Bandung (or be assessed by any other similar institution, to be decided). The earthquake-resistant units shall be able to withstand earthquake events of at least 7.0 as measure by the Richter scale. As much as possible, the units shall take into account safety and environmental health aspects, and use locally available construction materials and skills/knowledge of the construction industry, as well as the common home builder.

B. Dissemination and Training

A selected company or NGO will prepare manuals and information kits (brochures, posters, multimedia tools) containing design options, technical drawings and calculations, and detailed costing examples for production of the recommended units by small contractors, NGOs, or self-builders. The selected company or NGO will assist in establishing local government building centers and liaise with contractors and the local communities, to obtain feedback on contents and presentation style of the information kits. The selected company or NGO also will coordinate the printing of the materials and assure consistency of content and quality of the materials. The selection of the company or NGO shall be based on a set of criteria of professional experience and qualification, which shall ensure transparency and maintain the integrity of the Project.

C. Grant Funding for House Construction

Financial institutions (public or private) will be selected to handle SUHA grant funds to support the construction of at least 300 earthquake-resistant housing units (core units). Average unit costs will be $3,500, which includes a handling fee of 4% for the financial institutions administering the grant. Beneficiaries may earn an income as construction workers during the construction of their own housing units ("cash for work" system).

D. Project Management

The IA will establish a technical team of four professionals, which will work independently. However, the EA will provide technical guidance, and participate in particular in the development of prototypes (Component A).

Any other relevant Information

The Project is complementary to the housing component of the ADB-funded $290 million grant for the Earthquake and Tsunami Emergency Support Project (ETESP).