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Partnering with Communities for Post-Disaster Reconstruction in Aceh and Nias Island, North Sumatra, Indonesia By Pieter Smidt and Richard Beresford Community contracts and block grant modalities successfully channeled reconstruction funds directly to targeted beneciaries. Community participation hinged on effective support at all levels in partnership with and through the active involvement of local leaders and organizations. Community participation in project delivery systems enhanced ownership; created local employment, especially for women; and produced better quality outputs. Background The powerful earthquake off the coast of North Sumatra, Indonesia in December 2004 and the consequent tsunami caused widespread loss of lives and destruction in Aceh and to a lesser extent, on Nias island. Another destructive earthquake struck Nias in March 2005. The Government of Indonesia and the international community  provide d $6.8 b illion to su pport r econstr uction. Most of the reconstruction was completed by late 2008. The Asian Development Bank was a major partner—contributing, among other grants, a $291 million grant from the Asian Tsunami Fund for the Earthquake and Tsunami Emergency Support Project. Community participation was an essential element of the  proje ct’ s appr oach t o hous ing, agricu lture, sher ies, irrig ation, education, and rural water supply. Challenges Although community participation is not new to Indonesia, the experience and institutional capacities of government agencies remain limited. This was more so for Aceh than for other parts of Indonesia because of the decades-long civil conict in this  provinc e that e nded in August 2 005. Gove rnment p rojects were more often than not implemented using a top–down, “patron- client” approach. Methodologies Communities and agencies worked together through community contracts and block grants.  To channel part of the reconstruction funds, community contracts and block grant modalities were used. Both the contracts and block grants were signed by the executing agency and representatives of local associations or committees. Guidelines specied that the maximum value of an individual contract or block grant was equivalent to $30,000 and that communities could tap multiple contracts or grants. Community contracts and block grants were used for civil works type of reconstruction activities with contracts mostly used for works undertaken with direct involvement of the community members and block grants where communities would engage contractors to undertake the works. For example, community contracts were used for the reconstruction of irrigation canals while block grants were used to build class rooms. Block grants were also used for non-civil works activities such as, for example, the supply of school books and laboratory equipment. In this case, the school committees signed contracts with the suppliers. Community participation can be adopted in government delivery mechanisms. Between mid-2005 and end-2008, about $40 million of project funds were channeled directly to 1,000 villages in 16 districts, through thousands of community contracts and block grants. These funds were channeled through the government agency tasked with the reconstruction of Aceh and Nias. The agency used the Government’s delivery mechanism, i.e., the Government’s budget and disbursement  proces s. T he ann ual re const ructio n budg ets include d spec ic  budget line items for gr ant fun ding dir ectly to communitie s. Th e agency’s project management units disbursed reconstruction funds into bank accounts established by communities. The disbursements were phased in accordance with the payment schedules mentioned in the community contracts or block grants following verication that progress targets were met. Conditions must be met for community participation to function successfully in post-disaster reconstruction and rehabilitation. The project’s experience has demonstrated that community participation in post-disaster reconstruction and rehabilitation is possible if: leadership is committed to direct involvement of communities; experienced local community facilitators are deployed through national nongovernment organizations; October 2009 Disaster Risk Management Indonesia 18 K nowledge Showcase K nowledge Showcase Community members enjoy the benefts o participation     P     h    o    t    o    s     b    y     S    o    n    y     I    s     k    a    n     d    a    r

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8/2/2019 Partnering with Communities for Post-Disaster Reconstruction in Aceh and Nias Island, North Sumatra, Indonesia

http://slidepdf.com/reader/full/partnering-with-communities-for-post-disaster-reconstruction-in-aceh-and-nias 1/2

Partnering with Communities for Post-Disaster Reconstructionin Aceh and Nias Island, North Sumatra, Indonesia

By Pieter Smidt and Richard Beresford

Community contracts and block grantmodalities successfully channeled reconstructionfunds directly to targeted beneciaries.Community participation hinged on effectivesupport at all levels in partnership with andthrough the active involvement of local leadersand organizations.Community participation in project deliverysystems enhanced ownership; created local

employment, especially for women; andproduced better quality outputs.

Background

The powerful earthquake off the coast of North Sumatra,Indonesia in December 2004 and the consequent tsunamicaused widespread loss of lives and destruction in Aceh and toa lesser extent, on Nias island. Another destructive earthquakestruck Nias in March 2005.

The Government of Indonesia and the international community provided $6.8 billion to support reconstruction. Most of the reconstruction was completed by late 2008. The AsianDevelopment Bank was a major partner—contributing, among

other grants, a $291 million grant from the Asian Tsunami Fundfor the Earthquake and Tsunami Emergency Support Project.

Community participation was an essential element of the project’s approach to housing, agriculture, sheries, irrigation,education, and rural water supply.

Challenges

Although community participation is not new to Indonesia, theexperience and institutional capacities of government agenciesremain limited. This was more so for Aceh than for other partsof Indonesia because of the decades-long civil conict in this province that ended in August 2005. Government projects weremore often than not implemented using a top–down, “patron-

client” approach.Methodologies

Communities and agencies worked together throughcommunity contracts and block grants. To channel part of the reconstruction funds, community contracts and block grantmodalities were used. Both the contracts and block grantswere signed by the executing agency and representatives of local associations or committees. Guidelines specied that themaximum value of an individual contract or block grant wasequivalent to $30,000 and that communities could tap multiplecontracts or grants.

Community contracts and block grants were used for civilworks type of reconstruction activities with contracts mostlyused for works undertaken with direct involvement of thecommunity members and block grants where communitieswould engage contractors to undertake the works. For example,community contracts were used for the reconstruction of irrigation canals while block grants were used to build class

rooms. Block grants were also used for non-civil worksactivities such as, for example, the supply of school booksand laboratory equipment. In this case, the school committeessigned contracts with the suppliers.

Community participation can be adopted in governmentdelivery mechanisms. Between mid-2005 and end-2008,about $40 million of project funds were channeled directly to1,000 villages in 16 districts, through thousands of communitycontracts and block grants. These funds were channeled throughthe government agency tasked with the reconstruction of Aceh and Nias. The agency used the Government’s deliverymechanism, i.e., the Government’s budget and disbursement

 process. The annual reconstruction budgets included specic budget line items for grant funding directly to communities. Theagency’s project management units disbursed reconstruction

funds into bank accounts established by communities. Thedisbursements were phased in accordance with the paymentschedules mentioned in the community contracts or block grants following verication that progress targets were met.

Conditions must be met for community participation tofunction successfully in post-disaster reconstruction andrehabilitation. The project’s experience has demonstrated thatcommunity participation in post-disaster reconstruction andrehabilitation is possible if:

leadership is committed to direct involvement of communities;experienced local community facilitators are deployedthrough national nongovernment organizations;

October 2009

Disaster RiskManagemen

Indonesia

18

Knowledge Showcase Knowledge Showcase 

Community members enjoy the benefts o participation    P    h   o   t   o   s    b   y    S   o   n   y    I   s    k   a   n    d   a

   r

8/2/2019 Partnering with Communities for Post-Disaster Reconstruction in Aceh and Nias Island, North Sumatra, Indonesia

http://slidepdf.com/reader/full/partnering-with-communities-for-post-disaster-reconstruction-in-aceh-and-nias 2/2

 partnerships are struck between the Government, localleaders, and traditional organizations;community representatives elected by community membersare involved;a “learning-by-doing” approach is adopted that accepts thingsmay go wrong on occasion, and a complaints handling systemis established;funds are chaneled and traced through the formal bankingsystem, and payments are phased based on carefullymonitored progress indicators; anddetailed community action plans for the use of funds are prepared through a series of plenary community meetings.

Conclusions

With requisite support, community participation can serve asa conducive government delivery mechanism. In the project’sexperience

government reconstruction funds reached community groupsdirectly, thereby creating immediate local-level employment;corrupt practices were minimized;wider opportunities were offered for women to participate;adoption of local construction designs was facilitated;ownership of rehabilitated assets by community members wasenhanced; andlower-cost and better quality construction was enabledcompared to the performance of tendered contractors.

••••

Village meeting: the start o partnership between the community and the

government agency

For further information, contact

Pieter Smidt, Lead Professional (Water Resources), Indonesia Resident Mission ([email protected]); Richard Beresford, Project Management Specialist (richard.beresford@

microaid.com); Rehan Kausar, Infrastructure Specialist, Indonesia Resident Mission ([email protected])

Earthquake and Tsunami Emergency Sector Project (ETESP) - Indonesia, www.adb.org/Projects/ETESP/default.asp

Seeking the views o women-an essential part o the community approach

A community contract in progress: many hands lay the path or improved villageinrastructure.

Explaining the details o community contracting to community representatives Community acilitation in action

    P    h   o   t   o    b   y    T   o   t   o    k    H   a   r   t   o   n   o

    P    h   o   t   o    b   y    R    i   c    h   a   r    d    B   e   r   e   s    f   o   r    d

    P    h   o   t   o    b   y    E    f   e   n    d    i    I    d   r    i   s

    P    h   o   t   o    b   y    E   s   a    P   a   a   s   o

    P    h

   o   t   o    b   y    M .

    M    i   n   a   n   t   o

The Asian Development Bank is dedicated to reducing poverty in Asia and

the Pacic.

www.adb.org/knowledgeshowcases

The Knowledge Showcases highlight innovative ideas from ADB technical

assistance and other knowledge products to promote further discussion and

research.

The views expressed in this publication are those of the author(s) and do not

necessarily reect the views and policies of ADB or its Board of Governors or 

the governments they represent. By making any designation of or reference

to a particular territory or geographic area, or by using the term “country” in

this document, ADB does not intend to make any judgments as to the legal or 

other status of any territory or area.