Status of World Bank Assistance in the Reconstruction of Aceh and North Sumatra, Indonesia. Janelle Plummer, WSP-EAP Bill Paterson, EASTR

Transcription

1 Status of World Bank Assistance in the Reconstruction of Aceh and North Sumatra, Indonesia Janelle Plummer, WSP-EAP Bill Paterson, EASTR

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8 In Aceh The disaster was caused by a tsunami and an earthquake ( ) An estimated 236,000 people died or are missing Over 800,000 required immediate support Early estimates say reconstruction costs will reach USD 5 billion over 5 years 8

9 Immediate Bank Assistance The World Bank Office Jakarta: established a multi-sectoral reconstruction team hosted daily coordination meetings for all donors mobilized multi-donor teams working toward the GoI s deadline of the CGI: A Joint Preliminary Damage and Loss Assessment A Reconstruction Strategy covering 15 sectors 9

10 The Immediate Bank Assistance Three avenues, three teams: Damage and Loss Assessment Reconstruction Strategy Bank Response A joint report with the GoI to prepare a preliminary assessment of: damages the cost of replacing assets damaged or destroyed due to the Tsunami and earthquake and losses Damages and losses in each sector included physical assets, records and personnel Support to the GoI in the formulation of a preliminary rehabilitation and reconstruction strategy For the Consultative Group for Indonesia (CGI) Donor meeting held on 18 January. Structure of response. Restructuring and coordination among existing projects and new projects Trust funds Fiduciary control and monitoring 10

11 Preliminary Damage Assessment December 26, 2004 Natural Disaster, Indonesia GOI & International Donor Community joint report, 18 Jan

12 The Immediate Bank Response Damage and Loss Assessment Methodology (UN ECLAC): Damage = replacement cost of assets Need baseline, typology, scale, unit costs Cf. GOI: rehab & reconstruction estimates Losses = revenues, added costs, access Clean-up, revenues, higher prices, quality, etc. (relief supplies better than baseline?) Reconstruction = includes upgrading of standards and level of service i.e. Reconstruction Cost > Damage 12

13 The Immediate Bank Response Data Issues Rapid Preliminary Assessment Approach Before : Sector reports, official stats, poverty & household surveys Typology revealed gaps, helped to balance effort Missing data private facilities After : Initial general damage incidence estimates of some use But sample field survey damaged/destroyed/total most useful Aerial photos, satellite imagery and diagnosis Tests of reasonableness, verification essential Losses : 13

14 The Immediate Bank Response: Damage Findings PDAM Water Associations: Existing coverage very low Damage to pipelines, connections little to treatment plants Revenue losses from lost connections, lost customers, reduced collection Small-scale Providers & Vendors: Information scarce Adaptable, will resume according to demand where not covered Rural Water & Sanitation: Self-provision or community-based Significant damage contamination of dug wells, boreholes Sanitation: All individual systems low coverage 14

15 Results Subsector Physical Impact Valuation (IDR billion) o/w Assets and Services Base Nr. Damage Total Damages Losses Private o/w foreign WATER and SANITATION WATER SUPPLY PDAM Water Supply Water Treatment Plant capacity 1,495 L/s 15% Watertank Trucks 108 5% Pipe network 895 km 26% 49.0 Lost revenue 16.3 Additional operating cost 8.2 Small-scale Providers and Vendors Small tankers Vendors Income losses 6 months Rural Water Supply Dug wells 60, % Handpumps 15, % SANITATION Urban Sanitation Sludge treatment 6 100% Vacuum truck 20 70%

16 Damage and Losses - Infrastructure USD 636 million eq. Flood control Irrigation 25% Communicatin 2% Energy 8% Transport 62% Water and Sanitation 3% 16

17 The Immediate Bank Response WSS Damage & Loss Results 20 Value USD million Losses Damage Private 62% Public 38% Water Associations Small-Scale Providers Rural Water Supply Urban Sanitation 17

18 The Immediate Bank Response: Damage & Loss Assessment Lessons Reliable economic assessment builds donor confidence Use consistent DLA method for all sectors Value of sector databases, geo-based data, remote sensing Have rapid survey method ready for community use Identify Prevention, Mitigation and Preparedness lessons Further detailed assessment for Reconstruction Plan 18

19 Immediate Bank Assistance Reconstruction strategy GoI principles Involving the people of Aceh Addressing the sources of the conflict Managing the funds Around 3 pillars Reviving communities and households Reviving the economy Building good governance 19

20 Current Bank assistance Supporting the GoI in the reconstruction process 1. Reconstruction planning 2. Establishing the fiduciary process 3. Extending Bank projects to Aceh 20

21 Supporting the reconstruction process Reconstruction Planning Supporting government WGs Experience across sectors varies (some international/goi cooperation, TA, independent) Helping government work out approaches Working toward established principles Shifting from top-down to participatory Developing multi-sectoral approaches (and includes strategies for supporting the recovery of the people) 21

22 Supporting the reconstruction process The Fiduciary Process Developing a tracking system website, financial transparency, pledges, money-in / out Developing a governance structure aims to build confidence in management and coordination: government decree, agency for oversight, the role of the people of Aceh and the Partnership for Governance Reform Establishing a MDTF aims to get funding on-budget: USD million, governance differs from normal TFs (civil society, donors, GoI on SC),

23 Supporting the reconstruction process Extending projects to Aceh Extending the CAS CDD and LG Platforms Community-based development key vehicles (KDP, UPP) include water and sanitation services Local government capacity building Strengthening local governments to play a meaningful role Land titling New housing reconstruction program 23

24 Supporting the reconstruction process Reconstruction in the water sector The state of watsan sector Damage to assets still uncertain as it affected the whole supply spectrum; significant loss of utility personnel; high self-provision contaminated wells. Prior to tsunami weak institutions, deteriorating infrastructure, no sewerage at all. Government / international response UN coordinated relief to ensure people have basic services; enormous NGO presence, international private sector support in WTPs, but little support to PDAMs (do utilities fall between donor efforts? staff still not paid, no revenues, no access to banking). 24

25 Supporting the reconstruction process Reconstruction in the water sector Current Bank role aims to strengthen Bappenas role provide and fund technical assistance coordinate donors adapt existing programs and develop new programs. Bank future role should fill gaps in capacity: shore all levels of government/ institutions with TA for reconstruction planning promote local private providers in short-term (with ADB) promote sanitation sector development pursue watsan in multi-sector development approach. UWSIEP? 25

26 Supporting the reconstruction process Challenges The coordination struggle with whom and how? GoI Center to province GoI to line departments (Planning, PW, health) Government, multi-lateral and bilateral donors Relief to recovery and reconstruction Sector to sector why? do all want to coordinate? political motivations / stakeholder agendas Ownership and Participation involving the people of Aceh but capacity is limited Getting practical Aceh is already being rebuilt as plans are hatched in Jakarta. 26

27 Supporting the reconstruction process Challenges Keeping donors in check Collaboration or Competition? The big donors are still off-budget (USAID, AusAID) Creating a new institutional environment Constructing functional institutions not recreating those that did not function pre-tsunami (a short window of opportunity) Quick yet consultative and thorough Government deadlines are ambitious, people s need is great Financial monitoring and control The pieces might be in place, but will it be realized? How deep is the commitment? 27

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32 Supporting the reconstruction process The problems to be addressed are enormous, but the support available is also enormous. The Bank commitment is to: support the GoI to lead the response enhance the involvement of the people of Aceh, and support the coordination of donor assistance. 32

33 Thank you Thank you 33