Multi Donor Fund for Aceh and Nias Project Update July 2006 Multi Donor Fund Secretariat 31 July 2006
APPROVED PROJECTS AND CONCEPTS Table 2: Multi Donor Fund Projects and Concepts as of 31 July 2006 Partner Budget Actual % Agency $ million $ million Total Pledges/Receipts 537.67 245.58 46% Projects Reconstruction of Aceh Land Administration System Project World Bank 28.50 11.70 41% Community Recovery Through The Kecamatan Development Project (KDP) World Bank 64.70 49.00 76% Community Recovery Through the Urban Poverty Program (UPP) World Bank 17.96 6.55 36% Community-Based Settlement Rehabilitation and Reconstruction Project for World Bank NAD and Nias 85.00 29.94 35% Technical Support for Badan Rehabilitasi Rekonstruksi (BRR) NAD-Nias UNDP 14.74 11.00 75% Tsunami Recovery Waste Management Program UNDP 14.43 11.00 76% Support to Strengthen the Role and Capacity of CSOs in the Recovery of Aceh UNDP 6.00 3.00 50% Labor-based Rural Road Rehabilitation in Aceh UNDP 6.42 2.42 38% WFP Shipping Service WFP 24.70 24.70 100% Reconstruction and Rehabilitation of Ports UNDP 3.58 1.60 45% Aceh Forest and Environment Project World Bank 17.53 3.58 20% Flood Mitigation Program for Banda Aceh World Bank 4.50 0.40 9% Infrastructure Reconstruction Enabling Program World Bank 42.00 0.00 Total Projects 330.06 154.89 47% Concepts Road and Bridge Repair Lamno-Calang World Bank 11.50 0.00 Nias Kecamatan-Based Recovery and Planning Project World Bank 25.75 0.00 Support for Poor and Disadvantaged Areas World Bank 25.00 0.00 Infrastructure Reconstruction Enabling Financing Facility World Bank 100.00 0.00 Total Concepts 162.25 Total Allocations to Projects and Concepts 492.31 154.89 Estimated Investment Income 13.08 4.92 38% Estimated Administration, Appraisal and Supervision Costs 12.09 1.91 16% Total Unallocated Funds*/Cash Remaining 46.35 93.69 * Total unallocated funds may fluctuate depending on exchange rates and rate of investment and actual costs of administration, appraisal and supervision. - 2 -
A IMPLEMENTING PROJECTS 1) Reconstruction of the Aceh Land Administration System (RALAS) Achievements of Results (Status 20 July 2006) Outputs Status 31 May Achievements Land titles distributed 2,608 3,076 Land titles already signed but 11,561 13,419 not yet distributed to beneficiaries (owners) Land parcels that have been 50,500 51,172 publicly notified Land parcels adjudicated 50,980 52,944 Land parcels officially surveyed 52,915 53,635 by BPN Community land mapping* 52,915 53,637 * This figure only covers what has been submitted to BPN. Spending by Project: USD 11.7 million USD 2.5 million Status of Achievement: In July, 21 new teams were mobilized, while the remaining 9 teams are expected to be mobilized in early August. Bottlenecks and Challenges: BPN, BRR and the World Bank are still working on solving the bottlenecks identified in previous months. A supervision mission in September will provide further inputs. BPN and the World Bank have been requested to present an action plan for resolving problems to the MDF Steering Committee meeting on September 21st - 3 -
2) Community Recovery Through the Kecamatan Development (KDP) Achievements of Results (Status 22 June 2006) Outputs Planned* May 2006 Achievements* June 2006 Roads repaired/reconstructed in km 1,970 1,390 # of bridges 936 547 Irrigation and drainage (units) 1,224 1,014 Clean water projects (units) 375 330 Water storage reservoirs 118 118 Sanitation units 706 372 Markets 10 8 School buildings 246 181 Health clinics/posts 31 23 Value of scholarships and Rp. 3.18 bill Rp. 2.94 bill number of recipients Amount for loans number of recipients number of businesses/groups 5,861 Rp. 2.33 bill 4,045 226 5,685 Rp. 1.70 bill 3,685 214 Persons employed through sub-projects 93,738 93,738 Workdays generated NA 2,585,591 Emergency relief funds Rp. 27.51 bill Rp. 27.27 bill * Figures cover both KDP Cycle 5 and MDF. However, Cycle 5 is finished; most results reported are financed by MDF funds and other agencies that contribute about $13 million to the KDP budget. Spending by Project: $49 million $48.7 million Status of Achievement Construction activities have progressed quickly over the last two months as evidenced by the data for infrastructure reported in the activities table. Total cumulative disbursements of Social Funds since January 2005 to date has reached Rp 27,274,319,205 or 99% of total funds for this purpose. Intensive auditing of UPKs has produced results with eight new corruption cases being uncovered. Early detection by the FMS team has been instrumental in resolving a number of cases because the complaints handling team was able to convince the persons involved to return the funds they stole as they had not yet been spent. Frequent checks by KMs and Pendamping UPKs on UPK bank accounts continue to be enforced. An additional FMS specialist is about to be mobilized which will bring the FMS team to 7 specialists. As mentioned last month, efforts are continuing to assess the viability of forming clusters of villages and/or kecamatan for purchasing materials in bulk to reduce material and transport costs. Bottlenecks and Challenges There is still a shortage of 16 Technical Facilitators and one Information Facilitator. All other positions are at full strength and the personnel on site. - 4 -
Kab. Simeulue has an unusually high proportion of corruption cases and disturbingly PJOKs (Kecamatan Chief Operations Officer) are involved in all 4 corruption cases investigated by the complaints handling unit. In kecamatan Teupah Selatan the camat has also joined forces with the PJOK and demanded that all villages buy materials from the supplier he nominated. This camat has now demanded that the Information Facilitator and the Technical Facilitator be removed from the kecamatan for pursuing this case. These cases will be pursued at the kabupaten level and if necessary at the provincial level. The Information Facilitators will be instructed to disburse information about these cases as widely as possible to let all parties know that auditing is ongoing and effective. 3) Community Recovery Through the Urban Poverty Project (UPP) Achievements of Results (Status 15 July 2006) Outputs Planned* Achievements (July 2006) Roads repaired/reconstructed in km 466 47 Reconstruction of bridges in m 4211 283 Drainage (in km) 410 33 Clean water projects (units) 4401 11 Sanitation units 2981 32 Markets 9 0 School buildings 97 0 Waste disposal facilities 4268 144 Meunasahs 211 16 Village halls 113 16 Flood gates 82 2 Students receiving scholarships 7033 587 Health clinics/posts 60 0 * Planned activities cover all necessary reconstruction identified by communities, most of which are not financed by the current MDF grant. Spending by Project: $6.55 million $6 million Status of Achievement The project has expanded its village facilitation into all 402 target kelurahans. 273 directly-affected communities have participated in an expedited process, leading to a release of the first tranche to 270 communities in late June. The process of setting up provincial management structures has delayed project implementation by about two months, especially disbursement to communities. Therefore, little progress has been made during the last two months. It will be important to monitor the progress of the project closely, now that the new consultants are being deployed. - 5 -
4) Community-Based Settlement Rehabilitation and Reconstruction Project for NAD and Nias Achievements of Results (15 July 2006) Outputs Target Achievements (July 2006) Houses rebuilt Houses under reconstruction 5,000 709 868 Houses repaired Houses currently being repaired 8,400 762 1,036 Number or recipients 3,375 Spending by Project: $20.9 million $10 million Status of Achievement To date, the project has expanded to cover 120 villages with facilitation of the housing process. The final number of villages that the project will engage in is still being determined in cooperation with the BRR. Progress has been slower than anticipated because of a delay in the selection of the villages in which the project should operate. The original list had to be revised at the request of BRR, and thus facilitators were only able to fully operate in villages in mid-may, three months behind original schedule. In addition, to avoid mis-targeting, additional socialization needs to be added to the process and this requires more time. Provincial management consultants have now been selected and will be fully in place by mid August 2006. One of the DMC contracts had to be terminated for non-performance. Overall, the housing component is expected to be completed by December 2006. By August 2006, funds for the second wave of house financing (about 3,500 new houses, and about 4,000 rehab) will be channelled to the communities. 5) Technical Support for the Badan Rehabilitasi Rekonstruksi (BRR) NAD-Nias Achievements of Results (status 31 July 2006) Key Outputs* Achievements 1) Provision of TA Provision of individual technical 40 contracted advisors 5 expected soon Completed assignments 10 Total person months 215 person months - 6 -
Key Outputs* 2) Provision of outsourced services 1) IT infrastructure (IBM), expansion to regional offices 2) Legal services 3) Human resources services 3) Enhanced transparency 1) Anti-corruption monitoring 2) Quality Assurance Team Achievements 1) IT Systems for Facility Management, Financial Management, HR, Leave System, and Overtime System, Performance Management System online 2) Inception report on necessary services completed 3) Inception report completed, being discussed 1) Visits to 23 districts planned with KPK and KPPK; contracts for three NGOs to be involved under preparation 2) Achievements of Project Quality Assessment: MIS for Project Quality Management Review of 226 tenders processes Post-Contract monitoring of physical projects inspected 525 work packages Spending by Project: Amount Committed by Project USD 11 million USD 6.4 million USD 13.9 million (94% of grant) Status of Achievements The project currently reviews all donor-funded interventions in BRR to determine the effectiveness and impact of TA in general, and to serve as baseline for future M&E of new TA. The study will form the basis for deliberations by BRR on future priority areas and modalities for technical assistance. A review workshop is under preparation for the month of August, when the study is completed. The results to date have been encouraging, particularly to the large number of positive comments to the question Key results, achievements, successes to date: What has been delivered, what difference has been made by having this person in the role. In order to ensure sustainable use of funds and effective continuity for BRR, BRR has agreed to take over consultants as BRR staff. Once MDF-funded UNDP contracts run out, national consultants can be directly employed by BRR. Four such BRR direct appointments have occurred during July. BRR sees this process as a true added value of the TA project, as it allows a seamless strengthening of BRR s cadre of technical experts in a transparent manner. - 7 -
6) Tsunami Recovery Waste Management Programme Achievements of Results in Banda Aceh/ Aceh Barat/ Pidie (status end July) Output Status Tsunami generated waste cleared 558,661.00 m3 Municipal waste collected 74,839.00 m3 rice paddies/fish ponds/private property recovered 177 ha Private and government buildings demolished 213 Tsunami wood recycled, stockpiled or provided to 16,771 m3 NGOs for reconstruction Recycled rubble used for reconstruction of roads 47 km roads Temporary workers employed % of IDPs % of women Employees in waste livelihoods projects (average no 1,627 76% 47% 68 per day) Spending by Project $ 11 million $ 4.8 million Status of Achievement: The Letter of Agreement with the Government of Aceh Besar has been signed, expanding project activities into six districts (joint agreement for Aceh Barat and Nagan Raya) Important emerging activities: o The project increasingly supports settlement reconstruction through clearing of reconstruction sites in many places, both upon request of village governments and reconstruction agencies o In Aceh Jaya: clearance of 460ha of paddies from sand, mud and wood has started (30ha to date), eventually benefiting over 1,100 farmers; first beneficiaries are expected to start re-planting in August Contracts for the livelihoods component are being finalized - 8 -
7) Support to Strengthening CSOs in the Recovery of Aceh and Nias Achievements of Results (Status 30 June 2006) Recruitment process for Program Officer to be based in Jakarta has been finalised and the appointed candidate will join the office by mid August. This staff will act as desk support to ensure that the project receives sufficient support from the country office. Recruitment for additional staff in Banda Aceh and Nias is ongoing with possible assignment for short-term Programme Coordinator as cover prior to permanent staff appointed. The biding process for national partners for the components of Capacity Building and Small Grants Initiatives has been finalised waiting for the final decision to appoint the winner. The biding team is still waiting for some explanation from the bidder prior to the appointment of winner. It is expected that by end of August 2006 the project could start the contract agreements with partners. CSO Strategic review for Nias is still pending due to the difficulty in finding the qualified personnel available for this work. The project will contact local universities and NGOs to obtain more resources. Further discussion with BRR has resulted in the new proposal for Provincial Steering Committee membership following the restructuring of BRR this project will be overseen by Deputy of Religion, Social and Culture and no longer under the supervision of Deputy of Institution and Human Resources Development. Project document has been approved by both BAPPENAS and Secretary of State (SEKNEG) that signifies the official launching of this project within UNDP mechanism. Programme Manager will follow up with BRR and provincial government following the letter of notification by SEKNEG to the Governor of Nanggro Aceh Darussalam to continue the establishment of supporting structure for the project. USD 3 million Spending by Project: $104,456 Bottlenecks The recruitment process continues to be the weak point of the project most qualified people are either not willing to be based in the field or not available for a long-term appointment. Most national candidates with high qualification and experiences on CSO works have been engaged with other projects or organisations and those who applied, mostly have lower qualification. For example, UNDP has advertized and interviewed twice for the post of Program Coordinator but both failed due to a lack of qualified applicants. To overcome this problem the project is in the process of head-hunting candidates for and one staff from Jakarta will be assigned temporarily in Banda Aceh. - 9 -
8) Flood Mitigation Program for Banda Aceh Achievements of Results (Status 31 July 2006) Pilot Phase completed on time: all 11 valves for the first phase of the project have been installed and are working. They are being fine-tuned in consultation with the manufacturer to improve their performance at low flow rates. Preparation of design and surveys ongoing; first detailed designs expected to be finalized in mid-september; awarding of individual contracts expected to start October Reconstruction of pump stations might necessitate some land acquisition (potential bottleneck), however no relocation of households expected. Financial Status as of 30 June 2006 USD 0.4 million Spending by Project: $218,043 9) World Food Programme Shipping Service Achievements of Results (Status 31 July 2006) Output Number of vessels engaged Amount of materials transported - in metric tons - in cubic meters Number of service users (accumulative) Transfer to WFP account (100%): Spending by Project: Total Committed by Project: (as of 22 August) Achievements 9 LTC vessels 3 regular crafts 213,351mts 65,347 m3 80 USD 24.7 million $9.42 million $17 million Status of Achievements A mid-term review of the project is ongoing until mid-august. Results will be incorporated into a request for further funding to the Multi Donor Fund. Cost recovery will start as of 1 st of August. Rates have been calculated and socialized with all users. 10) Aceh Forest and Environment Project Status as of 31 July 2006 Two meetings were held with the Governor of Aceh about the establishment of the Project Steering Committee. The Governor has delayed the establishment of the Steering - 10 -
Committee pending the new Undang Undang 2006 legislation that was voted upon in mid- July. New LIF monitoring teams have been activated during July The project continue to discover new cases of illegal logging and have referred them to the relevant government agencies and the media. Two joint monitoring missions were begun in June and completed in July with relevant government agencies Temporary environmental operations facility is fully functional and upgrades of the facility continue. FFI established one community tree nursery in Aceh Jaya and has finished conducting a needs assessment throughout Aceh Jaya for agroforestry species. A variety of surveys began in July relating to identifying areas for replanting, natural regeneration, and general livelihoods opportunities from forestry activities. The Inception Report has been completed; the Annual Work Plan for 2006 has been produced; the Project Operations Manual has been approved; and key staff such as Auditor and Cost Controller have been recruited. Transfer to LIF: USD 800,000 Transfer to FFI: USD 800,000 Spending by project: USD 750,000 11) Creating Jobs, Scaling Up Labor-Based Rural Roads Rehabilitation in Aceh Status as of 31 July 2006 All national and international staff have been contracted and are taking up their positions under the project in the first half of July. The project management set-up will be finalized until end of August. Contracting and procurement procedures are being established, to be completed end of September. For a first batch of contracts, ILO standard procedures will be applied. Project monitoring is being prepared, to be finalized by the end of Aug 2006. Aceh Cluster (Aceh Besar, Sigli, Bireun): Project office set up in Public Works; road assessment and inventory ongoing with PW. Nias Cluster (Nias, Nias Selatan): Project office set up, Resident Engineer took up his position on 28 July. First transfer of funds to UNDP USD 2.42 million Spending by project USD 513,694-11 -
12) Reconstruction and Rehabilitation of Ports, Phase 1 Status as of 31 July 2006 Calang Component 1 Redesign of ports Detailed design of commercial port approximately 70% complete. Sinabang Commercial port design 70% completed. Other ports (fishery and ferry) already covered, so alternative locations for ports design are being considered (Meulaboh/ Krueng Mane). Gunung Sitoli Meulaboh and Krueng Mane Lamno River Port Consultant performs design check on previously prepared design. The BRR has requested that a ferry terminal be designed (in lieu of the original one in the PAD for Sinabang). Team currently discussing scope of work and location with local authorities. Component 2 Rehabilitation works [no activities] [no activities] [no activities] [no activities] Component 3 Temporary Wharves Work 80% completed Construction has started and progressing well. [no activities] Final design completed. [no activities] [no activities] Sabang [no activities] Lay down area is 98% completed (contractor waiting for remaining materials); sheds removed to 70%; fence construction contract amended to include additional 100m and gate works. [no activities] First transfer of funds to UNDP Spending by Project USD 3.58 million USD 0.46 million Bottlenecks: Due to the change in location (from Sinabang), additional time is required to perform site investigations, and conduct preliminary surveys and geotechnical investigation. Identifying the appropriate location has been challenging because the government land cannot accommodate both a landside facility for the commercial wharf and the ferry terminal. Other identified land are not is not enough to develop a proper functional port. - 12 -
Infrastructure Reconstruction Enabling Program The IREP passed the no-objection of the Steering Committee on 13 June 2006. Grant Agreement was signed 13 July 2006. Status as of 31 July: Contracts for Components 1-3: TORs finalized, and short-list forwarded for World Bank clearance Contract for Component 4: Expression of Interest advertisement forwarded for World Bank clearance Contract for Financial Management: Expression of Interest advertisement under preparation STATUS OF APPROVED CONCEPT NOTES 1) Lamno-Calang Road and Bridge Repair Project (USD 11m) PAD not yet received by the MDF Secretariat. 2) Support for Poor and Disadvantaged Areas Program for Aceh (SPADA) (USD 39.6 m) Technical Review of the PAD was held on 18 July. Circulated for no-objection on 18 Jul 2006. EC requested revision of the PAD to increase clarity regarding the Justice Component (funded separately by DfID); Project endorsed by Steering Committee on August 7, 2006. 3) Kecamatan-based Reconstruction and Recovery Planning for Nias (KRRP) (USD 51.5m) Technical Review of the PAD held on 25 July. Project endorsed by Steering Committee on 4 August 2006. 4) Infrastructure Reconstruction Funding Facility (IREFF) (USD 300m) Technical Review of the PCN held on 20 June. Project endorsed by Steering Committee on 27 June. PAD under preparation. - 13 -