ONE YEAR RECONSTRUCTION Progress and Next Agenda Presentation on CFAN 2 Jakarta, May 9, 2006

Agenda The Progress after One Year Current Status of CFAN 1 Future Challenges Regionalization

Progress

BRR Roles Mandate: Law No. 10/2005 On-Budget Implementer Mandate: Law No. 10/2005 To implement rehabilitation and reconstruction activities based on the approved state budget To organize and coordinate the implementation of rehabilitation and reconstruction by Central and Local Governments and related parties Enabling Facilitating Partnership Off-Budget

APBN Project Distribution Sabang Town 12 Projects IDR 44.8 billions Pidie 23 Projects IDR 144.9 billions Bireun 15 Projects IDR 92 billions APBN Project Distribution Year of 2005 Banda Aceh 30 Projects IDR 229 billions Aceh Tengah 2 Projects IDR 14.9 billions Lhokseumawe 13 Projects IDR 95.8 billions Aceh Besar 14 Projects IDR 94.3 billions Aceh Utara 17 Projects IDR 93.4 billions Aceh Timur 11 Proyek IDR 31.2 billions Aceh Jaya 17 Projects IDR 82.2 billions Langsa Town 6 Projects IDR 45.7 billions Aceh Barat 25 Projects IDR 224.1 billions Aceh Tamiang 3 Projects IDR 1.4 billions Nagan Raya 8 Projects IDR 34.5 billions Aceh Barat Daya 1 Project IDR 11.1 billions Aceh Gayo Lues 2 Projects IDR 219 millions Aceh Selatan 4 Projects IDR 2.8 billions Aceh Tenggara 1 Project IDR 88 millions > IDR 80 billions Aceh Singkil 11 Projects IDR 10.9 billions Simeulue 15 Projects IDR 96.2 billions IDR 30 – 80 billions < IDR. 30 billions Kabupaten Nias 34 Projects IDR 225.46 billions Nias Selatan 13 Projects IDR 94.22 billions

Donors and NGOs Project Distribution As of April 2006 Kota Sabang 31 Projects USD16.22 milllions Pidie 118 Projects USD148.02 millions Bireun 80 Projects USD 65.67 millions Donors and NGOs Project Distribution As of April 2006 Banda Aceh 313 Projects USD 410.43 millions Aceh Tengah 12 Projects USD 11.70 million Lhokseumawe 26 Projects USD18,08 juta Aceh Besar 385 Projects USD 394,48 millions Aceh Utara 58 Projects USD 68.89 juta Aceh Timur 18 Projects USD 13.88 millions Aceh Jaya 144 Projects USD 317.58 millions Kota Langsa 2 Projects USD 1.63 millions Aceh Barat 174 Projects USD 290.71 millions Aceh Tamiang 5 Projects USD 4.44 millions Nagan Raya 70 Projects USD 123,04 millions Aceh Barat Daya 22 Projects USD20,89 millions Aceh Gayo Lues 4 Projects USD 3.48 millions Aceh Selatan 17 Projects USD15,22 millions Aceh Tenggara 7 Projects USD 4.09 millions > USD 300 millions Aceh Singkil 17 Projects USD 9.80 millions Simeulue 45 Projects USD 105,83 millions USD 50 sd 300 millions < USD 50 millions Nias 82 Projects USD 97.22 millions

Current status of the commitments Estimated Needs  US$ 6.0 billion Committed Funds  US$ 4.7 billion Minimum Required Additional Funds  US$ 1.3 billion (Assumption: all new commitments go to under-committed sectors) 6 billion 4.7 Needs Committed Funds Financing Gap US$1.3 2.4 Un-committed 818.5 2,100. 827.7 313.0 299.5 1,388.9 396.7 NGO Red Cross Bilateral Multilateral MDTF UN GoI Multi MDF

Disbursement Rate on APBN 2005 2006 (IDR 9.6 trillion) 62,5% 414,6 M 3,9 T 2,4 T 10,45% 2006 (IDR 9.6 trillion) 2005 (IDR 3.9 trillion) May July Oct - Dec April Establishment of Work Units (Satker) by Technical Dept, Local Govt and related Govt Institutions BRR established Issuance of DIPA 2005 Deadline for Carry-over Budget (DIPA Luncuran) 2005 5 months = IDR 2.4 trillion (62,50%)

IDR 2.4 trillion (62.5%) Disbursement Rate on APBN 2005 by Sector DIPA 2005 DIPA –L 2006 Total Final Disbursement DIPA 2005 + DIPA-L 2006: IDR 2.4 trillion (62.5%)

Rehabilitation & Reconstruction Progress Needs Assessment October 2005 April 2006 New Houses 120,000 units 10,119 units 41,734 Units (finished) Teachers 2,500 (lost) 1,964 2,430 Schools 2,006 units 132 units 524 units Religious Facility 11,536 units 141 units 489 units Health Facility 127 units 38 units 113 units 7,380 health post Fishing Boats - 4,379 units 5,943 units Saltwater Fishponds 20,000 ha 19,299 ha (clean up) 9,258 ha (rehabilitation) Agriculture 60,000 ha 30,926 ha 37,926 ha Roads 3,000 km 490 km Bridges 120 41 Micro finance 100,000 SMEs 3,640 SMEs 147,823 SMEs Seaports 14 damaged ports 5 ports in progress 2 ports finished Airports 11 airports/airstrips 2 airstrips 5 airstrips finished

Current Status on CFAN 1 Issues

Current Status on CFAN 1 Issues Strengthen local government-BRR relationships Appointment of Pemda personnel for SATKER Joint planning with Musrenbang Capacity building through Sectoral Projects Speed up on-budget fund flows Direct appointment and control of SATKER for APBN 2006 Decentralize decision- making and coordination Develop framework of regionalisation To enable the decision-making and problem-solving, moving closer to communities and implementation Improve coordination and create system for tracking and tackling bottlenecks Coordination with Advisory Board & Oversight Board through tripartite meetings Coordination with Pemda through Musrenbang Coordination with Donors & NGOs through CFAN events Develop Implementation Strategy for Blueprint, include expected role sharing among all stakeholders Develop long-term economic development plan Implant long-term economic develop plan on Implementation Strategy of Blueprint

Current Status on CFAN 1 Issues continued Improve community information and participation Improving information and reporting BRR Ops Centre and UNORC developing information & analysis capacity (with UNICEF funding support) Establish single, simple, well- integrated monitoring and reporting system, including project activity and fund flows RAN-D started with many weaknesses Significant effort was done to ensure completeness and accuracy of data a.o by outreach team and offline capability Integration of On Budget and Off Budget data accomplished Implement “one-stop visa shop” President Decree No. 69/2005 as legal base One-stop services has been fully operated since December 2005 (for Customs, Immigration, Tax, Foreign Affairs, Police and Port Authority) Fund and manage land acquisition mechanism Secured funds for land acquisition Several projects were provided land through co funding approach

Tim Terpadu – Executing Agency BRR Aceh-Nias One-stop services (Tim Terpadu) established in December 2005 Tim Terpadu function as a coordinating working unit located in BRR Directly responsible to the Agency Head Daily coordination under Deputy of Communication, Information, and Institutional Relation Statistics Tim Terpadu (3 Desember’05 – 31 Maret 2006) Total Service   Consular Services & Foreign Affair 1.030 Immigration 1.807 Employment 85 Taxation 10 Customs and Excise 273 Trade 274 District Police Aceh 293 General 33 Registration of foreign organizations 24 Visitors 991

Future Challenges

FUTURE CHALLENGES Funding (In)Adequacy Operational Getting US$ 4.7b commitment out of the US$ 6b required is an achievement. However, there is still 25% of needs uncommitted. Moreover we should give attention to: the miss-match of funding allocation, some sectors remain under-committed Inflation rate and escalating overhead costs threaten the overall capacity for reconstruction Changes in circumstances as result of the time gap from the commitment up to the real implementation We must deliver rehabilitation and reconstruction: Consistent with the community-based approach In a speedy manner avoid duplication and gaps to be present, and assist in decision-making, and problem-solving, to be close to communities and the implementation Operational

Managing Funding Challenge Optimizing the use of current available funds Ensuring sustainability of current pledges/commitments Accessing new funding sources: line-ministry budgets, local government budget, turning pledges into effective commitments, public and private partnerships Enhancing flexibility to correct miss- match Influence markets to secure supply to minimize price fluctuations, quick procurement to minimize the effect of changing circumstances, intensive collaboration to minimize overhead

Managing Operational Challenges Strengthen coordination with NGOs and Donors down to the Kecamatan dan Desa Level through regionalization Improve synergy with Pemda Tk II, Pemda Tk I, and line ministries in planning and budget development Addressing specific matters: Disaster mitigation Workshops held and guidelines produced, with GoI legislation Gender Appointment of Gender Advisor to the Director and Advisory group on Social Transformation Environment Working with a range of partners on identifying local environmental issues and integrating planning and systems in regional programs

Regionalization

Regionalisation Policy BRR’s Headquarter to focus on policy, strategy, and operational support: Develop policy and monitoring the implementation Operational support Relations with central and local government Coordination with Donors & NGOs on strategic levels Regional offices have more authority: As coordinator and implementer of BRR projects in region As coordinator and facilitator all stakeholders in region PEMDA as partner on reconstruction Joint planning with PEMDA Carry out embedded capacity building

Regional Offices Development SABANG BANDA ACEH ACEH BESAR LHOKSEUMAWE BIREUN ACEH UTARA P I D I E ACEH TIMUR BENER MERIAH ACEH JAYA Banda Aceh Calang Meulaboh Lhokseumawe Langsa Kutacane Singkil Sinabang Nias KOTA LANGSA ACEH BARAT ACEH TENGAH ACEH TAMIANG NAGAN RAYA GAYO LUES ACEH BARAT DAYA ACEH TENGGARA ACEH SELATAN SIMEULUE SINGKIL PULAU BANYAK NIAS

Strengthening Integrity Strengthen the control environment in BRR Aceh-Nias Socialize and safeguard the implementation of the integrity pact Conducting the pre-qualification process free of charge and in an open manner Improve the mechanism for blacklisting those companies which have acted unethically and have failed to deliver in their commitments. Avoid the common practice of giving/receiving gifts or the like Strengthen the mechanism to regulate conflict of interest Be responsive to community control

Thank You