Indonesia Processing $177 Million in ADB Tsunami Assistance, Report Says
MANILA, PHILIPPINES - More than $177 million in ADB assistance for the rehabilitation and reconstruction of Aceh and Nias in Indonesia following the tsunami has passed through the approvals process of BRR, the Government agency responsible for overall coordination, according to an ADB report. These funds are supporting recovery efforts in agriculture, fisheries, micro and small enterprises, irrigation, housing, and community and rural water supply. In the wake of the December 2004 earthquake and tsunami disaster, ADB approved a comprehensive support package for rehabilitation and reconstruction of Aceh and North Sumatra (including Nias island). The package includes a $290 million grant for an Earthquake and Tsunami Emergency Support Project (ETESP) and a contribution of $10 million to the Multi-Donor Trust Fund, both financed from ADB's Asian Tsunami Fund. ADB also approved $30 million in cofinanced grants and has earmarked reprogrammed loan savings of up to $65 million. All subprojects are being designed in close coordination with BRR and relevant ministries, the report says, with preparations for construction in some sectors - particularly irrigation and housing - well advanced. All project activities are being undertaken according to safeguards set by BRR and ADB with regard to issues such as resettlement, environment, and land acquisition. "The Government and ADB share a strong commitment to effective management and governance of funds, and adherence to social and environmental safeguards," says Edgar Cua, ADB Country Director in Indonesia. To date, donors and the Government have committed more than $8.8 billion to the tsunami rehabilitation and reconstruction effort and BRR has approved $4.4 billion of this for more than 650 projects. As of November last year, about $775 million or 17% of the approved amount, had been disbursed. "The sheer scale of the devastation wreaked by the disaster and the scale and complexity of the reconstruction program have meant that overall progress in reconstruction has been slower than expected," adds Pieter Smidt, Head of ADB's Extended Mission in Sumatra. "However, disbursement levels have picked up since the end of last year and the pace of reconstruction is gaining momentum." ADB disbursed $33.4 million under ETESP as of the end of January for project preparation activities and is anticipating disbursements of about $80 million during 2006. Day-to-day coordination and monitoring of ADB's project is the responsibility of its Extended Mission in Sumatra, with ADB's mission in Jakarta the focal point for government and donor coordination. Read the full report. About ADB | 
News and Events 
Top of page
