By Dr. Kuntoro Mangkusubroto BEYOND THE PROGRESS OF REHABILITATION AND RECONSTRUCTION: Balancing Speed, Compliance and Accountability By Dr. Kuntoro Mangkusubroto Director of BRR NAD-Nias Jakarta, 18 Juli 2006

Context: Working in Post-Disaster Areas

Extraordinary Circumstances Managing a vast destroyed region with conventional set of regulations (for normal condition) Hard terrain with uneasy access (destroyed roads & bridges, damaged ports, and non-functional government) Legal issues: -Land Titling -Absence of legal doc. -Bank…. Diversified project proponents Lack of resources Local political upheaval has almost jeopardized the reconstruction process Pre-existing condition: conflict, mistrust, negligence and war-torn province

Vast Areas Affected Paris London 343 km 190.000 Houses destroyed or damaged 14 Seaports damaged or destroyed 120 Arterial bridges destroyed 3.000 km Roads destroyed or impassable 1.052 Government buildings damaged 2.000 School buildings damaged 167.228 Students lost their schools 2.500 Teachers died 114 Health centers destroyed or damaged 20.000 Fish ponds destroyed 60.000 ha Agriculture land damaged 100.000 Small business people lost their livelihood

Scope of Work

BRR’s Roles and Mandate US$ 6 billion Funds Needed Estimated budget for reconstruction & rehabilitation programs: US$ 6 billion Available sources of funds : US$ 2.1 billion from GoI US$ 2.4 billion from donors & NGOs 392 Project Management Unit 101 Project Management Unit (PMU) was established to manage the State Budget funds 291 PMU from NGOs and Donors 1.773 Project Packages 945 government funded projects 828 International donors and NGOs project

Project Distribution in regions Kota Sabang Rp133,854 Miliar Pidie Rp 261.7 Miliar Bireun RP248 Miliar Project Distribution in regions April 2006 SABANG Banda Aceh Rp 4,1 Triliun Aceh Tengah Rp.29,8 Miliar BANDA ACEH Aceh Besar Rp527 Miliar ACEH BESAR KOTA LHOKSEUMAWE Lhokseumawe Rp147 Miliar P I D I E BIREUN Aceh Utara Rp161 Miliar ACEH UTARA ACEH JAYA Aceh Jaya Rp293,5 Miliar B E N E R M E R I A H ACEH TIMUR Aceh Timur Rp136,7 Miliar A C E H T E N G A H KOTA LANGSA ACEH BARAT ACEH TAMIANG NAGAN RAYA Aceh Barat Rp386 Miliar Kota Langsa Rp41,3 Miiar G A Y O L U E S ACEH BARAT DAYA Aceh Tamiang Rp40,6 Miliar Nagan Raya Rp172,055 Miliar Aceh Barat Daya Rp76,2 Miliar A C E H T E N G G A R A ACEH SELATAN Aceh Gayo Lues Rp12,2 Miliar Aceh Selatan Rp130 Miliar SIMEULUE Aceh Tenggara Rp18,8 Miliar Simeulue Rp245,6 Miliar SINGKIL PULAU BANYAK PULAU BANYAK Aceh Singkil Rp209,6 Miliar Nias Rp447,3 Milar

Donors & NGO’s Project Distribution Kota Sabang 31 Projects USD16.22 milllions Pidie 118 Projects USD148.02 millions Bireun 80 Projects USD 65.67 millions Donors & NGO’s Project Distribution 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

BRR’s Elements of Internal Control While building integrated control takes times, we focus on building control environment at the beginning To set the tone of the organization through leadership & role modeling Selective recruitment process Integrity pact & anti corruption declaration To establish the foundation for all other components of internal control, and To provide discipline and structure, KPI Control Environment Risk Assessment Control Activities Information and Communication Monitoring

Rehabilitation & Reconstruction Progress

Rehabilitation & Reconstruction Progress Need Assesments 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 Microfinance 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

Rethinking of Financial Management in Post-Disaster Area

Disaster Financial Management Framework (Proposal) FLEXIBILITY ability to change budget purpose in response to dynamics circumstances DISASTER FINANCIAL MANAGEMENT SPEED TRANSPARENCY broad planning process, quick procurement process, adequate quality Should be maintained in all respect ACCOUNTABILITY should be based on disaster context Should be translated in legal form

BUDGET cycle’s timeline is IRRELEVANT to a speedy delivery process in response to the survivor’s needs

How to Maintain Accountability in the absence of a disaster management regulatory framework Control Environment Organization Credibility Maintenance Prudent Management Practices Regular Reporting Severe punishment for any abuse of power/authority

Housing projects announcement

Departure points Good governance Develop a regulatory framework for post-disaster situations: Efficient procurement Budget flexibility Decentralized decision making Enhanced leadership Good governance

Thank You