North American Representative Office

The Aftermath
Devastating, incomprehensible, catastrophic are some of the adjectives being used to describe the areas of Asia hardest hit by the earthquake and tsunami disaster. The global response to this tragedy has been heartening-from young Americans donating teddy bears intended to ease the angst of young Asian orphans, to local Sri Lankan staff members in institutions like ADB who are donating a day's salary to help the aid efforts.

At a special Association of Southeast Nations (ASEAN) summit, on 6 January in Jakarta, Indonesia, ASEAN leaders and the international community convened to discuss the scope of assistance needed. In his address to participants, ADB President Tadao Chino expressed his gratitude to the world community for their generosity. He also emphasized the resilience of Asians and their ability to overcome adversity and "rise to the challenge of rebuilding for the future."

Although the impact is still unfolding, ADB, along with other multilateral and bilateral institutions, are on the ground working closely to assess the damage and prioritize the use of funds. These assessments will then be used to create a targeted assistance program that will maximize the use of grants and concessional funds. The development team is also working with affected governments to ensure that resources go quickly and efficiently where they are needed. In ADB's case this means freeing up an initial $675 million to help reconstruction efforts. Of this amount, $500 million represents new grants and concessional loans and $175 million is from loan reallocations from ongoing programs. In such emergencies, financial assistance is made readily available to governments for purchasing and constructing high-priority items like water supply and sanitation systems, schools and health clinics, roads, bridges, and power transmission and distribution systems.

Next Steps - Early Warning System
At the ASEAN Summit in Indonesia, one of the major agenda items was implementing an early warning system to prevent such catastrophes in the future. In a Jakarta Post article, Australian scientist Phil McFadden, estimates that a system could be built in the Indian Ocean in one year for about $20 million. Mr. McFadden calculates that this system would also include 30 seismographs to detect earthquakes, 10 tidal gauges, and 6 special Deep Ocean Assessment and Reporting Tsunamis (DART) at a cost of $250,000 for each DART plus annual maintenance of up to $50,000.

ADB has offered to fund a $1 million feasibility study to examine options for putting such a system in place and linking it to other regional and global warning systems-a cost, ADB reasons, that is well worth the price of saving thousands of lives in the future.

• President Chino's address to the ASEAN Summit in Jakarta, Indonesia

http://www.adb.org/Media/Articles/2005/6630_speech_president_tadao_chino/


• ADB signs MOU with Indonesia for Framework on Disaster Support

http://www.adb.org/Media/Articles/2005/6621_Indonesia_MOU/


• Tsunami Response FAQs

http://adb.org/tsunami/faqs.asp

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India
The Government formally requested ADB assistance on 10 January for rebuilding infrastructure, both public and private, and rehabilitation of livelihoods of those affected. Assistance has also been sought for developing a disaster prevention and management system to prevent such catastrophes in future.

The Government has requested that ADB and the World Bank closely coordinate assistance. A series of urgent joint missions are being scheduled, with the respective country directors due to visit the affected areas on 17-18 January.

A joint needs assessment of the two agencies with other donors and the Government will start around 19-20 January. While details need to be worked out, it is likely that assistance would include housing, water supply and sanitation, coastal roads and its protection, port/jetty, power, and a warning system.

Indonesia
The most heavily impacted areas in Indonesia were Aceh (total population of over 4 million) and North Sumatra (population of over 12 million). As of 4 January, the Health Ministry put the death toll at 94,000 with 3,600 missing, while Bloomberg and other media outlets have since put this figure at potentially over 150,000.The quake shattered buildings and roads before the tidal waves swept up to 6 km inland in parts of northwestern Aceh. Ecosystems and agricultural lands were heavily hit. This will have a major impact on poor people as agriculture provides 32% of provincial GDP in Aceh. Education, health facilities, and coastal roads were also damaged.

Immediate relief needs are expected to be much greater than the initial $150 million cited by the Indonesian Government at the end of December. ADB has estimated that an initial $126 million can be reprogrammed and made available for immediate assistance. ADB is also involved in the joint Government-development partners damage and needs assessment that began on the first week of January for Aceh and Northern Sumatra. The assessment team expects to present their findings at a meeting of the Consultative Group on Indonesia on 19-20 January.

Maldives
In response to requests for assistance, ADB is extending aid to Indonesia, Maldives, and Sri Lanka. Of these countries, the Maldives, has suffered the most devastation and ADB has identified an initial $15 million in uncommitted funds to assist with its urgent needs. With a population of just 290,000, over 35% of its population has been impacted with less than 100 people reported dead or missing. About 50% of the country's housing is affected and communication equipment, harbors, power lines, hospitals, sewage systems, and community buildings have all been seriously damaged. Of the 202 inhabited islands, 13 lost their entire infrastructure and 42 were flattened.

The economic impact in a country like the Maldives, with an absolute poverty rate of 43%, is devastating. Current estimates put the damage at 20% of the country's gross domestic product (GDP). Tourism, which accounts for 33% of GDP, and fisheries 7%, will be the hardest hit in the short-term.

President Maumoon Abdul Gayoom of the Maldives has set up a task force to respond to the situation. He has requested donations of food, water, clothing, and transport for rescue, recovery, and evacuation. The People's Republic of China is one of the many countries that responded to the country's plight by shipping tents, drinking water, and food.

In consultation with the Government, ADB, United Nations Development Programme, Islamic Development Bank, and World Bank agreed to form a joint team to undertake a needs assessment, which began on 8 January. ADB will focus on infrastructure (roads and communications, water supply, and power).

Sri Lanka
With a population of 19 million, Sri Lanka estimates the number of displaced persons from 300,000 to 900,000 and the population affected between 1 and 2 million. Official reports put the death toll at 30,000 with 3,800 missing and 15,000 injured persons. The tsunami struck over 1,000 kilometers (km) or two thirds of the country's coastline stretching from Jaffna in the north down the entire eastern and southern coast. About 100,000 houses were damaged, of which 75,000 were completely destroyed. Coastal infrastructure (roads, railway, power, telecommunication, water supply, and fishing ports) was also significantly impacted.

Despite this damage, the overall macroeconomic impact is expected to be small primarily because none of the major sources of economic activity (tea, rubber, coconut, and spices) or the main Colombo port have been affected (CITE SOURCE OF FORECAST). ADB, World Bank, and Japan Bank for International Cooperation will, at the request of Sri Lanka President Chandrika Kumaratunga's task force for reconstruction, develop a coastal areas reconstruction needs assessment. This will provide an overall development plan for the area to which other development partners will be encouraged to contribute. ADB will focus on the transport sector (roads and railways) and livelihood restoration.

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In recent years, ADB provided assistance to Bangladesh in 2000 and in 2004 for flood relief work; the People's Republic of China for flood damage rehabilitation in 1999; and Gujarat, India, in the immediate wake of a devastating earthquake in 2001.

More information at

• ADB's Experience with Disasters and Emergencies
  http://adb.org/tsunami/experience.asp
• ADB's Disaster and Emergency Assistance Policy

http://www.adb.org/Documents/Policies/Disaster_Emergency/

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