Six years after the tsunami : from recovery towards sustainable economic growth

59566 MDF Progress Report December 2010 Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth MDF Office Jakarta Indonesia Stock Exchange Building Tower I/9th Floor Jl. Jend. Sudirman Kav. 52-53 Jakarta 12910 Indonesia Tel: (+6221) 5229-3000 Fax: (+6221) 5229-3111 www.multidonorfund.org Printed in 2010 This publication is the product of the Multi Donor Fund for Aceh and Nias. Acknowledgments This report was prepared by the Secretariat of the Multi Donor Fund with contributions from the Partner Agencies , , (UNDP WFP ILO and the World Bank) as well as the project teams. The Multi Donor Fund Secretariat is led by the MDF Manager Shamima Khan, with team members: Sarosh Khan, Safriza Sofyan, Anita Kendrick, Akil Abduljalil, Harry Masyrafah, Lina Lo, Puni Ayu Indrayanto, Shaun Parker, and Geumala Yatim. The team is supported by Rachmawati Swandari, Inge Susilo, Friesca Erwan and Olga Lambey. Editorial Support: Christopher Stewart (English) Printer: PT. Lumbung Kencana Makmur (this spread/cover) Children pose in front of their new neighborhood built with support from the MDF's CSRRP/ Rekompak project in Tubuk Lancang, Pidie Jaya district, Aceh. Photo: Tarmizy Harva for MDF  MDF Progress Report December 2010 Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth  "The MDF recognizes the importance of ensuring program sustainability so that benefits and impacts continue after the MDF closes." The Gido bridge and the sealed pathway connecting to it have reduced travel time and improved access to markets, schools and services for people living in three remote villages in Nias. Photo: Shaun Parker/MDF Secretariat iv  Message from the Co-Chairs Message from the Co-Chairs of the MDF It has been six years since the devastating tsunami of Since its establishment, the MDF has taken a phased 2004 and earthquake of 2005 shattered the lives of approach to reconstruction, which began with meeting people in Aceh and Nias. Today traces of that devastation urgent needs for community recovery, followed by are barely visible, local economies are beginning to focusing on large infrastructure, environment, and thrive and people's lives have been rebuilt in better capacity building, and in the last phase laying the ways. The massive undertaking by the Government of foundation for sustainable economic development Indonesia for rehabilitation and reconstruction in the through recovery of livelihoods. affected regions has earned worldwide recognition as a successful multi-stakeholders effort in post disaster Today we are pleased to report that the program recovery. is achieving remarkable results, with projects on course to meet targets by closing in June 2012. The The Multi Donor Fund for Aceh and Nias (MDF) was community based housing approach that was adopted set up to support the government in leading this by the MDF has now become a model for post disaster immense effort. As the BRR completed its mandate in reconstruction. Infrastructure investments have April 2009, Bappenas has taken over the coordination revitalized economic activity and enhanced access role of reconstruction and rehabilitation for Aceh and for dispersed populations. Environment and waste Nias, including as one of the MDF Co-Chairs. The management investments have helped to mitigate strong commitment and leadership, both from the negative impacts of reconstruction. At this time we National Government of Indonesia and the Provincial are actively working to strengthen the capacity of local Governments of Aceh and North Sumatera have institutions and to lay the foundation for sustainable made possible the MDF's significant contribution to economic growth and continued development in Aceh the government's agenda of `building back better.' and Nias. The Government of Aceh, together with district governments, are committed to filling the remaining With a portfolio of mature projects, the MDF will reconstruction needs for infrastructure, livelihoods, remain focused and committed to the implementation and most importantly the housing sector gap, in line of projects in order to meet the desired objectives by with the Action Plan 2010-2012, as well as ensuring program end. The MDF also recognizes the importance operation and maintenance of investments made by of ensuring program sustainability such that MDF MDF and other development partners. benefits and impacts continue long after it closes. Therefore, capturing lessons learned and disseminating best practices will be an important part of MDF activities in the coming years. Armida S. Alisjahbana Irwandi Yusuf Stefan Koeberle Julian Wilson Minister Governor of Aceh Country Director Head of Delegation National Development Planning World Bank European Union v  "The MDF is performing well and the majority of the active projects in the portfolio are nearing completion." Three generations of Wulandari's family live side by side in their new homes built through the CSRRP/Rekompak project. Wulandari, 55, lost her husband and one of her three daughters during the tsunami in 2004. She and her daughter are now rebuilding their lives in the new houses built by the MDF in Ulee Lheue village in the city of Banda Aceh, one of the areas worst hit by the wave. Photo: Abbie Trayler-Smith/Panos Pictures/Department for International Development (UK) vi  Contents Contents Message from the Co-Chairs of the MDF ....................................................................................................... v Executive Summary .................................................................................................................................... 1 Portfolio Progress and Performance ....................................................................................................................1 MDF Operations and Communications ............................................................................................................... 2 Finances ..............................................................................................................................................................3 Outlook ...............................................................................................................................................................3 Chapter 1: MDF Operations and Communications .......................................................................................... 5 MDF Operations ..................................................................................................................................................5 Enhancing Stakeholder Engagements Through Communications .......................................................................7 Feature Story 1 - Crossing the Gido Bridge ........................................................................................................ 10 Chapter 2: Portfolio Progress and Performance ............................................................................................13 Overview of the MDF Portfolio .......................................................................................................................... 13 Recovery of Communities ..........................................................................................................................14 Reconstruction and Rehabilitation of Large Infrastructure and Transport...................................................16 Strengthening Governance and Capacity Building .....................................................................................18 Enhancing the Recovery Process ...............................................................................................................20 Sustaining the Environment .....................................................................................................................22 Economic Development and Livelihoods ..................................................................................................23 Challenges ........................................................................................................................................................24 Feature Story 2 - Banda Aceh's New Town Access Road: a Catalyst for Growth ................................................... 26 Chapter 3: MDF Finances ........................................................................................................................... 29 Pledges ............................................................................................................................................................ 29 Cash Available .................................................................................................................................................. 29 Funding Allocations and Commitments ............................................................................................................ 29 Disbursements ................................................................................................................................................. 31 Outlook ............................................................................................................................................................. 31 Feature Story 3 - Going Clean and Green in Aceh and Nias.................................................................................. 32 Chapter 4: Looking Ahead ......................................................................................................................... 35 Feature Story 4 - Supporting Postdisaster Recovery through Community-based Organizations in Nias ................ 38 Annexes | Project Portfolio ........................................................................................................................ 41 List of Acronyms and Abbreviations ........................................................................................................... 65 Map of Aceh and Nias ................................................................................................................................ 66 vii  "Through its 23 projects, the MDF is delivering high- quality results." The SDLP provides training for key staff from 18 ports in Aceh and Nias to ensure the continued effective operation of the infrastructure investments made by the MDF. Approximately 80 percent of all ports staff in Aceh and Nias have been trained through the 138 training courses that have been held. These course materials are being handed over to the University of Syiah Kuala to be included in their Masters Degree program. Photo: SDLP collection  Executive Summary Portfolio Progress and Performance Executive Summary Through its 23 projects, the MDF has delivered high- quality results. The majority of the projects in the portfolio are complete or nearing completion: eight projects have closed, 12 are under full implementation and three are in early stages of implementation. Following the devastating earthquakes and tsunami of Thousands of large and small infrastructure projects are December 2004 and March 2005, the Multi Donor Fund completed and making a contribution to revitalizing the for Aceh and Nias (MDF) has supported the Government economy. Homes and schools are occupied, community of Indonesia (GoI) in the reconstruction of Aceh and organizations are active and interconnected, local Nias. With US$678 million pooled in contributions from institutions are stronger and more resilient, and local 15 donors (about 10 percent of the overall reconstruction governments are better equipped to manage the funds), the MDF's goal is to contribute efficiently and remainder of reconstruction and future development. effectively to the reconstruction of a "better" Aceh Support to environmental sustainability has helped and Nias. This is achieved by filling gaps in the overall mitigate possible adverse impacts of reconstruction reconstruction in line with government priorities and on Aceh's valuable natural resources. Communities and bringing together key players from various levels of individuals, and especially women, are more empowered government, donors, civil society and communities. to play a role in planning for future development in It has also greatly contributed to harmonizing donor their communities. Livelihood opportunities have efforts, and has been a critical platform for policy improved for many through project activities and more dialogue, bringing together many stakeholders. The specifically targeted economic development work is MDF's Mid-Term Review (MTR) concluded that the just getting underway. overall approach and direction of the MDF is appropriate and relevant, and that it is performing well. Social sustainability concerns have also been incorporated into all aspects of the MDF's program. The reconstruction and rehabilitation of Aceh and Nias A strong gender dimension is embedded in projects is continuing through regular government processes. across the portfolio to ensure that women, and other Bappenas (Badan Perencanaan Pembangunan Nasional marginal groups, play a role in the community decision- or the National Development Planning Agency) plays a making processes. The MDF has also adopted a conflict- leading role in the MDF and is responsible for overall sensitive approach that takes into account the unique coordination of the reconstruction and rehabilitation. operating environment in Aceh, which encompasses The provincial governments of Aceh and North both postdisaster and postconflict, to the extent Sumatra are also playing an increasingly important role possible within its mandate. in the reconstruction and in implementing the Action Plan for the Continuation of the Reconstruction 2010- MDF projects are overcoming a variety of physical 12 ("Action Plan 2010-2012") together with the central and other implementation challenges. In Nias, factors government. The MDF provides direct support to the such as the remoteness of subproject sites, poor central and provincial government in these coordination transportation networks, long rainy seasons, lack of and implementation roles. access to quality materials, and difficulty in recruiting 1 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth and retaining qualified field staff have all contributed to portfolio progress and challenges. Currently the MDF delays for projects. All MDF projects have faced a new Secretariat is discussing exit strategies and closing set of challenges in transitioning to regular government monitoring and evaluation (M&E) arrangements processes and responsibility, especially the transition with projects, to ensure that the MDF's impact in the to regular government budget processes for the reconstruction of Aceh and Nias and important lessons disbursement of funds. These issues are compounded learned are captured for stakeholders and a wider by the tight timelines to complete implementation of audience. Lessons learned workshops are also being the last set of projects. All stakeholders have indicated held as part of the closing activities of several MDF their commitment to work together to facilitate smooth projects. Transparency and accountability within the project implementation. With this commitment, MDF portfolio is strengthened through complaints- the MDF is well-positioned to continue its strong handling mechanisms which have been set up and are performance until all projects close in June 2012. regularly monitored. Projects are further supported and showcased through MDF outreach activities. These events build a broader MDF Operations and Communications public awareness of the MDF's work and also give the public an opportunity to provide feedback to the MDF. The quality and implementation of projects are The MDF's outreach efforts engage stakeholders at regularly monitored to ensure the MDF portfolio is multiple levels in discussions on policies, approaches on track and delivering results of a high standard. The and strategic outcomes as well as on project activities, MDF Secretariat reports to the Steering Committee on and promote transparency and accountability. "The MDF generates lessons learned for future postdisaster recovery and reconstruction efforts." SPADA supports school rehabilitation and provides school-based management training as well as books, tools, and furniture to village schools. Students in a classroom of a state elementary school in Bando Baru, Kabupaten Aceh Utara. Photo: Akil Abduljalil/MDF Secretariat 2  Executive Summary Finances strategies, supporting the transfer of reconstruction assets to the relevant local authorities, and putting The MDF has allocated and committed US$646 million appropriate operations and maintenance arrangements to its 23 projects in line with GoI priorities. Approximately in place. The two economic development projects, the one-third of the MDF portfolio is allocated to the last round of infrastructure, and the continuing capacity infrastructure outcome area, and another one-third building and institutional strengthening agenda are to community recovery projects. Allocations to the focused on ensuring that the impacts of reconstruction remaining four areas of economic development and will be felt by the people of Aceh and Nias long after the livelihoods, sustaining the environment, capacity close of the MDF. building and governance, and enhancing the overall recovery process together represent the remaining Currently MDF funds are fully allocated to approved one-third of MDF funds allocated. About 77 percent of projects. 1 Some unspent residual funds will remain funds allocated and committed to projects have been as individual projects close, and these will be disbursed (US$500 million), and projects have spent reprogrammed to the extent possible within the US$436 million or 87 percent of funds disbursed. limited remaining timeframe. The GoI has prioritized the use of any unspent residual funds for strengthening The MDF has provided the government the flexibility capacity of local institutions and the reconstruction of to implement projects through line ministries and local infrastructure within the framework of existing other development partners. About 73 percent of projects. MDF funds have been channeled to projects through the government's national budget. Approximately 23 The MDF will be assessing outcomes and the impact of percent of funds are implemented in partnership with its efforts with a focus on lessons learned. Recent local United Nations agencies (United Nations Development and global natural disasters have prompted renewed Programme - UNDP, WFP and ILO), and the remaining interest in the successful models and approaches 4 percent through NGOs. The government has also pioneered under the MDF. The MDF is strengthening led the appointment of Partner and Implementing programs and activities at all levels of government, Agencies for projects funded by the MDF, taking improving capacity for ongoing development as well as into consideration comparative advantages and core responding to possible future disasters. Nationally and competencies. globally, the MDF is providing feedback into the setting up of new disaster-response programs. Building on its Outlook experience with the MDF, the Government of Indonesia has set up the Indonesia Multi Donor Fund Facility for The MDF remains committed to continuing the Disaster Recovery (IMDFF-DR) for disaster response support for reconstruction until the end of its mandate. and prevention. The MDF will continue to generate Continued strong coordination and cooperation lessons that can contribute to fragile situations and from all partners is needed to ensure the smooth to recovery and reconstruction efforts in future implementation of remaining projects by MDF closing. postdisaster settings around the world. Remaining MDF projects are focused on helping to lay the foundation for economic growth and a secure and 1 Taking into account the reduction in donor pledges as detailed in stable future in Aceh. Projects are implementing exit Chapter 3: Finances. 3  "Project monitoring and feedback are important for ensuring quality of the MDF portfolio." The IRFF project is financing a range of infrastructure reconstruction works including this clean water supply system in Pria Laut village, Sabang, Aceh. Photo: Tarmizy Harva for MDF 4  Chapter 1: MDF Operations and Communications MDF. Other key stakeholders, such as the United Chapter 1: MDF Operations Nations Coordinator and a representative of the international NGO community, participate in the and Communications Steering Committee as representatives of development partners and to support coordination in the field. The Steering Committee is co-chaired by the Indonesian Government (Bappenas), the Government of Aceh, the The Multi Donor Fund (MDF) remains committed European Union as the largest donor and the World to supporting the Government of Indonesia (GoI) Bank as Trustee. in the continued reconstruction of Aceh and Nias. Established in April 2005, the MDF pools US$678 million in contributions from 15 donors to support the implementation of the government's rehabilitation MDF Operations and reconstruction efforts after the December 2004 earthquake and tsunami and the subsequent March Bappenas is leading the coordination of the 2005 earthquake. The 15 donors contributing to the reconstruction and rehabilitation activities following MDF are: the European Union, the Netherlands, the the closure of BRR. Interim transitional arrangements United Kingdom, the World Bank, Sweden, Denmark, that were put into place after BRR closed have ended. Norway, Germany, Canada, the Asian Development The MDF now functions completely within the context Bank, the United States of America, Belgium, Finland, of the GoI's regular agencies and processes, and in New Zealand and Ireland. close coordination with the provincial governments of Aceh and North Sumatra. The interim reconstruction The MDF is governed by a Steering Committee with coordination agencies that were set up at provincial representatives from the government, donors, trustee government level to support the transition from BRR and civil society. At the request of the government, to regular government processes have closed. At this the World Bank was appointed as the Trustee of the time, MDF funds are fully committed to approved projects. Any unspent, residual funds from ongoing projects may be allocated to other existing projects if endorsed by Bappenas in its coordination role, working closely with the provincial Governments of Aceh and North Sumatra. The MDF is performing well and the majority of the active projects in the portfolio are nearing completion. Projects going into their final phase are now focused on developing exit strategies to promote sustainability. The last wave of new projects and existing projects that have been allocated additional funding are focused on capacity building, economic development and key infrastructure to support economic growth, as CBLR3 and RACBP use a local resource-based approach to contract a local workforce and use appropriate road construction technologies and work methods to complete road construction and maintenance. Photo: Shaun Parker/MDF Secretariat 5 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth prioritized by the government. A portfolio review of the the MDF's closing date, any remaining funds would be MDF was presented by the Partner Agencies (UNDP, ILO, allocated to existing projects in line with the priorities WFP and the World Bank) to the Steering Committee in of the government. September 2010. The Steering Committee expressed its satisfaction with the progress and results of project The MDF has fully committed available funds to implementation and the strong financial management approved projects. At a meeting of the Co-Chairs of the of the MDF provided by the Trustee. MDF Steering Committee convened in March 2010, the co-chair representatives, including the Government of The MDF continues to work closely with Bappenas Aceh, supported the top two priority needs outlined by and the governments of Aceh and North Sumatra to Bappenas as infrastructure investments and continued ensure the delivery of high-quality projects through coordination of the reconstruction. The Steering a phased approach and as prioritized by the GoI. Committee subsequently endorsed additional financing Bappenas, in close consultation with the Governments for the TA to BRR and Bappenas Project implemented of Aceh and North Sumatra, has developed the Action by UNDP, and additional financing for the IRFF project Plan for the Continuation of the Reconstruction and to construct a road along the west coast of Aceh. Rehabilitation of Aceh and Nias 2010-2012. The Action Plan identifies gaps in the reconstruction effort, with an implementation plan ending in December 2012. Guided by the government's priorities, the overall goal of the MDF is to contribute efficiently and effectively to the reconstruction of a "better" Aceh and Nias by filling the gaps identified in the government strategy documents. The projects not only reconstruct housing and infrastructure and rehabilitate the economy in accordance with these strategy documents, but also address social concerns such as reducing poverty, improving livelihoods, and enhancing gender equity. The MDF continues to follow up on recommendations from the Mid-Term Review (MTR) within the context of GoI priorities, and within the scope and timeline of "A strong gender dimension is the MDF. The MDF's comprehensive MTR process was embedded in MDF projects to completed in November 2009. The findings reiterate ensure that women play a role in the message that the MDF portfolio is performing the community decision-making well, and its overall direction is appropriate and processes." relevant. The results of the MTR were presented to the Steering Committee on November 16, 2009. Based on the recommendations of the MTR, the Steering Committee in March 2010 decided that, due to the short implementation time remaining before A member of a producer group in Lam Cot village, Kabupaten Aceh Besar, Aceh, making the traditional snack of kue karah (karah cake). She and other members of her group were able to revitalize their income-generating activities with the help of microfinance loans from the KDP. Photo: Irwansyah Putra for MDF 6  Chapter 1: MDF Operations and Communications Key decisions related to the use of possible residual funds from closed projects were reached during this reporting period. With all remaining funds fully committed, the Steering Committee in September 2010 responded to remaining government needs by agreeing that any possible residual funds would be prioritized for capacity building of local institutions and the reconstruction of local infrastructure. This would need to be funded through existing projects. Project monitoring and feedback are important for ensuring the quality of the MDF portfolio. Regular supervision missions were carried out by the Partner An elementary school building in Nias constructed by the MDF through the KRRP project. The project has so far Agencies to monitor project progress and quality, completed 32 schools and 4,300 houses in Nias. often attended by the MDF Secretariat and donors. Photo: Anita Kendrick/MDF Secretariat Consultations are being held with project teams and Partner Agencies to discuss exit strategies and closing M&E arrangements to ensure that the MDF's impact in the reconstruction of Aceh and Nias and important Enhancing Stakeholder Engagements lessons learned are captured for stakeholders and for Through Communications use in future postdisaster recovery programs. Feedback received through various complaints-handling The MDF plays an important coordination role in mechanisms continues to be regularly monitored and bringing together key players from various levels of follow-up actions are taken as required. government, donors and civil society. The partnerships being forged among these stakeholders have allowed The MDF will continue working closely with central, the MDF to effectively respond to the recovery needs provincial and local governments to support the of Aceh and Nias. During this reporting period the MDF reconstruction agenda of the affected areas until the stakeholder engagements had mostly been aimed end of the MDF's mandate. The MDF donor community at discussing project progress and the sustainability continues to maintain a keen interest in the operations of MDF investments. At the last Steering Committee of the MDF. With representatives at Technical Review meeting, it was also agreed that the capturing of and Steering Committee level, the donors continue lessons learned and dissemination of best practices to be closely involved in monitoring MDF progress with key stakeholders will be part of MDF activities and results, as well as in decision making on funding towards closing. This is to ensure that the full impact allocations and other key strategic issues. All MDF of the program is well-documented and disseminated projects will close in June 2012, and the MDF program for future postdisaster recovery efforts in Indonesia will end in December 2012. and the rest of the world. The MDF provides a unique forum for discussion of policies and strategies on reconstruction of Aceh and Nias with a broad range of stakeholders. 7 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth Various outreach activities have been conducted project also conducted closing workshops during 2010 to support project implementation and to enhance which included lessons learned. The Sea Delivery and awareness of the MDF program. These activities range Logistics Programme (SDLP) conducted a workshop from maintaining relationships with local governments, on lessons learned in November 2010. More of these communities and NGOs, disseminating information types of workshop and closing events are planned as through publications and other communications projects wrap up their activities. material, as well as holding workshops or other public events which often generate media interest. These The MDF and its projects also utilize formal media outreach efforts are not only effective in communicating outlets in order to reach a wider audience and to increase progress, but also in responding to and tackling various public profile. In addition to holding events which drew project-related issues. During this reporting period the media attention, the MDF also proactively engaged MDF and its projects have conducted over 250 outreach with the local media to disseminate information and activities. Lessons learned workshops have been held as part of the closing activities of several MDF projects in the past year. The Community-based Settlement Rehabilitation and Reconstruction Project (CSRRP, also known by its Indonesian acronym, Rekompak), held several activities in conjunction with its closing in April 2010. These included a one-day lessons learned workshop, a media tour to project sites and an official closing and handover ceremony. The lessons learned workshop included the participation of diverse stakeholders and captured valuable lessons and experiences from the implementation of the innovative community-based housing approach. It concluded that a community- based approach to housing reconstruction, working through government systems but with communities in the lead, can be an effective strategy for postdisaster housing reconstruction. Over 100 participants attended the Rekompak workshop, including the local and central governments (Ministry of Public Works, BNPB 2 , and Bappenas), donor representatives, local NGOs, and local think tanks/academics. The Kecamatan Development "The MDF will continue to work Program (KDP) and Support to Strengthen the Role with central, provincial and local and Capacity of Civil Society Organizations (CSO) governments until the end of its mandate." 2 BNPB: Badan Nasional Penanggulangan Bencana. National Agency for Disaster Management. Governor of Aceh, Irwandy Yusuf (left) officially handed over CSSRP/Rekompak's final report to one of the 14 regents and mayors during the project's closing ceremony in May 2010. Also in the picture is the previous Country Director of the World Bank for Indonesia, Joachim von Amsberg (center). Photo: M. Nasir/MDF Secretariat 8  Chapter 1: MDF Operations and Communications address various concerns which have surfaced from The MDF promotes transparency and accountability time to time in the public domain. Media outlets in its program implementation. All MDF-funded mostly being used are radio and local newspapers, projects are required to establish complaint-handling using interactive talk shows and article placements. In mechanisms through which stakeholders, particularly order to encourage positive media coverage from local beneficiaries, can channel their feedback, queries and national media, the MDF also held special media and grievances regarding project targeting and events such as journalist site visits/press tours and implementation. These mechanisms are continually media gatherings. During this reporting period, the monitored. Nearly all complaints and queries received MDF and its projects have conducted over 15 radio talk were handled by the respective projects through direct shows and have generated over 50 instances of positive verification with the communities and complainants media coverage. involved. Recent local and global natural disasters have prompted renewed interest in the MDF. Considered by many as one of the most successful multidonor trust funds for postdisaster rehabilitation and reconstruction in the world, the MDF has become a valuable source of information for those implementing postdisaster reconstruction and recovery programs in other settings. Numerous organizations, including prominent development agencies and universities, governments of disaster-affected countries, and the media have sought lessons learned and best practices from the MDF Secretariat, the World Bank as Trustee, the Government of Indonesia, the Government of Aceh and North Sumatra, and individual project teams. Such requests have come from such diverse sources as BBC Radio, The Washington Post, the Government of Haiti, and various units and programs within the World Bank such as the Multi Donor Trust Fund in Pakistan. Lessons from the MDF are therefore helping to inform global responses to disasters and fragile situations. 9 MDF Progress Report December 2010 | Six Years after the Tsunami: From Recovery towards Sustainable Economic Growth Feature Story 1 Crossing the Gido Bridge Providing year-round safe access for communities On the island of Nias it rains, on average, 268 days a year. Heavy rainfall and flash floods are common. Bridges and other water crossings on the island are mostly made of natural materials that degrade rapidly and are susceptible to being swept away by turbulent currents. When bridges are in poor repair, communities are often temporarily isolated or have to find alternative routes which often make it more expensive and time consuming to reach main access roads. The village of Loloana'a, located in the subdistrict of Gido, Nias district, North Sumatra, covers an area of 562 hectares of hilly terrain, with 96 households and a population of 521 people. Rubber cultivation provides the main livelihood for most of Gido's inhabitants. To supplement their income, most people also produce cacao, bananas and betel nut. The rubber latex produced in Loloana'a is sold every Friday at the "pekan" or weekly market in Hiliweto village. Rubber latex is also commonly sold to collectors in the nearby village of Lahemo. Access to neighboring villages and the "pekan" was formerly via a dirt path and a river crossing which became impassable during the rainy season. Since the construction of two vital pieces of infrastructure supported by the Multi Donor Fund for Aceh and Nias