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3 March 2006

Indonesia: Tsunami Summary

Updated: 3 March 2006

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In December, the 12-month progress report on the post-tsunami recovery effort in Indonesia was released. The report, entitled "Aceh and Nias One Year after the Tsunami: The Recovery Effort and the Way Forward," was prepared by the Rehabilitation and Reconstruction Agency (BRR) Aceh-Nias in partnership with the Asian Development Bank, World Bank, United Nations Development Program, and International Red Cross/Red Crescent.

TSUNAMI IMPACT

Casualties

Dead: 130,406, missing 36,836, displaced 504,518

Overall Damage

The 26 December earthquake and tsunami caused heavy loss of life and great destruction in Aceh, and were followed by another strong earthquake in March near Nias island.

Total damage from the tsunami is estimated at $4.5 billion-$5 billion - almost equal to the entire GDP of Aceh - according to a damage assessment prepared and released by the Indonesian Government, World Bank, ADB, and other development partners in January. Read the full Preliminary Damage and Loss Assessment and Notes on Reconstruction.

The sectors most impacted were primarily private-sector dominated assets and activities that relate directly to the personal livelihoods of the affected urban and rural communities: housing, commerce, agriculture, and fisheries, and transport vehicles and services ($2.8 billion, or 63% of total damage and losses).

The biggest public sector damages were to infrastructure, the social sectors, and government administration ($1.1 billion, or 25% of total damage and losses). Monetized environmental damages are also significant ($0.55 billion, or 12% of total damage and losses), although they belong in a separate category as the environment will partially recover with the help of nature and time, as well as human intervention. These include damage to coral reefs and mangrove swamps, loss of land use and restoration of the coastal zone. Total damage and losses of this disaster -- net of environmental impacts -- are $3.9 billion.

Oil and gas facilities, which contribute half of provincial incomes, were reported not to have suffered substantial damage.

Economic Impacts

The disaster was devastating for communities, but left most of the country's main economic production centers intact. The national economy is thus forecast to expand by 5.7% in 2005, fueled by stronger domestic consumption and a revival in investment, according to ADB's Asian Development Outlook Update. The economy is expected to rise by 5.9% in 2006.


ADB ASSISTANCE

ADB has been working closely with the Aceh-Nias Rehabilitation and Reconstruction Agency (BRR) to fast-track the design and implementation of projects on the ground. (See related article)

ADB has committed grants totaling about US$331 million, including cofinancing. These grants are designed in a flexible manner to meet emerging needs, based on expeditious procedures.

Given the serious devastation, ADB tsunami assistance covers various sectors: Agriculture, fisheries, irrigation, livelihoods, housing, water and sanitation, health, transport, power, spatial planning and fiduciary oversight.

ADB assistance to Indonesia on the tsunami can be summarized as thus:

  • Earthquake and Tsunami Emergency Support Project (ETESP) and Contribution to the Multidonor Trust Fund (MDTF) totaling $300 million (from ADB's Asian Tsunami Fund) approved 7 April 2005. This is the largest single grant in ADB's history.
  • Community Water Services and Health for $16.5 million (total project is $81.2 million, but only $16.5 million is tsunami related) approved 7 April 2005.
  • Three grants totaling $6 million from ADB's Japan Fund for Poverty Reduction, financed by the Government of Japan, to help improve livelihoods, rehabilitate natural resources, and provide earthquake-resistant housing approved in 6 September 2005.
  • Loan reallocations amounting to $64.6 million approved 7 April 2005
  • Another $4.5 million in cofinancing for other activities
  • Some $10 million in technical assistance being processed.
  • Total approved: $391 million
ADB Projects

Out of the $300 million grant assistance to Indonesia, $290 million will finance the ETESP to support disaster management, reconstruction and rehabilitation in affected areas of Aceh and North Sumatra. (Read the project document)

The remaining $10 million will be contributed to the MDTF established by the Government of Indonesia. MDTF, expected to attract about $500 million in contributions from donors, is a vehicle to pool bilateral resources to ensure a systematic and coordinated approach to rehabilitation and reconstruction.

The ETESP will restore essential public services and rebuild infrastructure and promote the resurgence of private economic activity. This will be carried out in two phases:

The first phase, to be carried out to June 2007, will tackle urgent priorities in disaster management, rehabilitation and reconstruction in some of the less devastated zones. These include health, rural water and sanitation, irrigation and flood control, restoration of roads and bridges, local government capacity building, and spatial planning.

The second phase to run until April 2008, will carry out disaster management and reconstruction activities in the most devastated zones. Work will include expansion of activities under Phase 1, restoration of community infrastructure, spatial redesign of affected zones, power and rural electrification, and public administration.

Subprojects Submitted to BRR under ETESP

Components/Sub-Components

Activities and Geographic Coverage

Agriculture
- Grant Provision: $30.0 million
- Concept note approval by BRR: $32 million
- Project preparation consultant: Mobilized
- Implementation/ oversight consultant: Mobilized

Activities
1. Restoring agricultural enterprises

  • Soil/land rehabilitation and management
  • Planting stock
  • Mechanization
  • Processing and marketing
  • Agribusiness development

2. Rehabilitating agricultural support services

  • Capacity building for extension services
  • Applied research
  • Information systems
  • Coordination

3. Community empowerment

  • Self-help groups
  • Community information service centers
  • Microfinance

Geographic Coverage
1. Aceh: Pidie, Aceh Utara and Aceh Timur, Bireuen, Aceh Besar, Aceh Jaya, Nagan Raya, Aceh Barat Daya, Simeulue districts

2. Affected districts in Nias island

Fisheries
- Grant Provision: $30.0 million
- Concept note approval by BRR: $11.8 million
- Project preparation consultant: Mobilized
- Implementation/oversight consultant: Mobilized

Activities
1. Community development

  • Participatory planning and construction of village infrastructure supporting livelihoods

2. Capture fisheries

  • Medium to large sized boats

3. Aquaculture

  • Fish ponds rehabilitation and restoration
  • Capacity building

4. Fisheries infrastructure
5. Ecosystem rehabilitation
6. Support to local government fisheries services

Geographic Coverage
1. Aceh

  • Districts: Aceh Barat, Aceh Besar, Aceh Utara, Pidie, Aceh Jaya, Simeulue
  • Cities: Banda Aceh, Bireuen, Lhokseumawe

2. Nias and Nias Selatan districts

Micro and Small Enterprises
- Grant Provision: $21.0 million
- Concept note approval by BRR: $21.5 million
- Project preparation consultant: Completed work
- Implementation/oversight consultant: Mobilized

Activities
1. Support restoration of livelihoods and development of new livelihood opportunities, through a livelihood fund ($2.5 million)

2. Provide financial support to licensed depository financial institutions to rebuild capital, and expand credit outreach to micro, small and medium scale enterprises through Microfinance Innovation Fund ($12.5 million)

3. Provide ongoing technical assistance to financial institutions to improve operations, provide better service, and substantially deepen outreach to microenterprises, while assisting BRR to coordinate microfinance donor support activities

Geographic Coverage
1. Aceh Province

Health
- Grant Provision: $23.0 million
- Concept note approval by BRR: Under preparation
- Project preparation consultant: Not appointed
- Implementation/oversight consultant: Not appointed

Activities
1. Mapping of health sector donor response and conduct gap analysis

2. Identify models of health sector reform and implement the reform

  • Including provision for capital expenses, construction and community initiatives

3. Strengthening the capacity of the provincial and district to implement sector changes

  • Human resources provincial strategy for the health sector
  • Development of system wide approach to mental health

4. Concentration on community-based mental health initiatives, and building a bottoms-up approach

Geographic Coverage
1. Aceh Province

Education
- Grant Provision: $21.0 million
- Concept note approval by BRR: $2.8 million
- Project preparation consultant: Mobilized
- Implementation/oversight consultant: Mobilized for procurement of teaching and learning materials

Activities and Geographic Coverage
1. Equipping more than 300 senior secondary schools in Aceh and Nias with science and multi-media laboratories

2. Rehabilitation and construction of laboratories facilities in approximately 40-50 senior secondary schools

3. Supporting the deployment and training of 1,800 junior and 1,200 senior secondary science and mathematics subject teachers in computing and the application and use of the laboratory kits, equipment and other science related materials

4. Improving the water supply and sanitation facilities in up to 200 senior secondary schools

Community and Rural Water Supply
- Grant Provision: $10.5 million
- Concept note approval by BRR: $27 million (inclusive of the complementary grant support)
- Project preparation consultant: Not applicable
- Implementation and oversight consultants: both appointed and mobilized

Activities
1. Rehabilitation of community water supply and sanitation facilities (rehabilitation phase)

2. Capacity building and training of water and sanitation and hygiene staff at local government (rehabilitation phase)

3. Re-establishing local government and community capacity to ensure participatory planning for facilities built

4. Expansion and new developments of water supply and sanitation facilities

5. Sanitation and hygiene behavioral change program

Geographic Coverage

1. Nagan Raya district in Aceh and Nias and Nias Selatan districts in North Sumatra (ETESP Grant)

2. Aceh Jaya, Pidie, Bireuen, Aceh Utara districts (CWSHP Grant)

Irrigation
- Grant Provision: $30.5 million
- Concept note approval by BRR: $6.1 million
- Project preparation consultant: Mobilized
- Implementation consultant: Mobilized

Activities
1. Emergency repair of key structures
2. Rehabilitation of schemes without major structure damage
3. Restoration of irrigation facilities
4. Reconstruction of tsunami damaged infrastructure, and rehabilitation and upgrading works in Aceh province
5. Strengthening of water user organization
6. Strengthening of implementation and coordination facilities
7. Capacity building and training

Geographic Coverage
1. Aceh Besar, Aceh Barat, Nagan Raya, Aceh Barat Daya, Aceh Singkil, Aceh Selatan, Pidie, Aceh Utara, Aceh Tenggara, Aceh Timur, Bireuen, Bener Meriah, Aceh Jaya districts

Housing
- Grant Provision: $72.5 million
- Concept note approval by BRR: for entire scope
- Project preparation consultant: Mobilized
- Oversight consultant: Mobilized

Activities
1. Construction of houses, including for ex-renters
2. Rehabilitation of houses
3. Village planning
4. Microcredit for house expansion

Geographic Coverage

1. Design consultants are working with BRR, NGO and United Nations agencies in identifying possible sites

Spatial Planning
- Grant Provision: $15.0 million
- Concept note approval by BRR: Not necessary
- First stage consultant: Mobilized
- Second stage consultant: To be engaged

Activities
1. Kecamatan (Sub-District) spatial planning
2. Village planning
3. Support services to other ETESP sectors

  • Environmental assessment
  • Ecological assessment
  • Geographic Information System (GIS) mapping
  • Environmental safeguard design

Geographic Coverage
1. Kecamatan spatial planning activity is expected to be carried out in 60 kecamatans

Roads
- Grant Provision: $19.5 million
- Concept note approval by BRR: Under preparation
- Project preparation consultant: Mobilized
- Implementation/oversight consultant: Not yet appointed

Activities and Geographic Coverage
1. Krueng Raya Roads and Culverts, 5.3 km

  • Pavement rehabilitations
  • Culverts protection
  • Repair and widening of roads
  • Waterways clearance
  • Drainage and pedestrian access improvements

2. Bridges Repair, Rehabilitation and Widening

  • Bridges on the East Coast Road
  • Bridges on the Krueng Raya Road
  • Bridges on the Ule Lheue Road

3. Simple Road Works on East Coast Road, 23 km

  • Routine maintenance and betterment works, Climbing lane

4. Complex Road Works on East Coast Road, 12.3 km
5. Ule Lheue Roads, 9.1 km

Power
- Grant Provision: $9.5 million
- Concept note approval by BRR: Under preparation
- Project preparation consultant: n/a
- Implementation/oversight consultant: Not yet appointed

Activities
1. Electricity connection to newly constructed houses
2. Rehabilitation of low voltage distribution
3. Distribution transformer

Geographic Coverage
1. First preference would be for rural areas in the affected parts of Aceh

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