FAQBelow please find answers to commonly asked questions. Click on the question to see the answer.
What is the MDF?The Multi-Donor Fund for Aceh and Nias brings together a pool of over US$ 686 Million in grant resources (as of December 2009), provided by donor countries and international organizations to support the implementation of the Government's rehabilitation and reconstruction blueprint. Donors who have announced pledges include the European Commission, The Netherlands, United Kingdom the World Bank, Norway, Sweden, The Asian Development Bank, Canada, Germany, New Zealand, Denmark, Finland, US, Ireland and Belgium. The Trust Fund is managed by the World Bank and guided by a Steering Committee consisting of donors, Government of Indonesia and civil society representatives with participation by the United Nations and the international NGO community.
What does the Multi Donor Trust Fund for Aceh and Nias do?The overall goal of the MDF is to efficiently and effectively contribute to the reconstruction of a better Aceh and Nias following the earthquakes and tsunami. This is accomplished by:
How does a project request for funding?
How to submit a project proposal?All project concepts for possible MDF financing must first be vetted by BAPPENAS
We would therefore like to suggest that you complete the attached BRR project (could be downloaded here) template and submit it to them if you would like to pursue MDFTANS financing for your proposals. Please contact : Egan Dirgantara for queries that were previously directed to Cheryl Koesdjojo. He may be reached by email at email@example.com and by phone at 0651 43434.
How to submit a project proposal?
A donor member is a country, an organization or private sector contributor who has made a pledge publicly with confirmation in writing, either by the Trustee or by signing the contribution agreement.
A contribution of US$ 10 million or more, will give you a vote on the Steering Committee.
Those contributing less than this threshold may decide to pool their resources so as to reach or exceed this threshold thereby being able to nominate a representative as a voting member for their pooled contributions, possibly on a rotational basis.
What financial safeguards and anti-corruption measures have been put in place at MDF portfolio and project level?There are 4 levels of fund monitoring for all MDF projects.
What financial safeguards and anti-corruption measures have been put in place at MDF portfolio and project level?The Steering Committee will meet as frequently s necessary (meetings are expected to be held frequently during initial operations, but may subsequently become less frequent) to discharge its responsibilities.
The location of each meeting will be either in Jakarta, Aceh or Medan.
What criteria does the MDF Steering Committee use to approve projects?The MDF has adopted a set of policy rules that it uses to determine which projects can receive funding.
Project Implementation Policy need to deliver on the following:
Projects need to respond to needs that are not sufficiently addressed by other sources of finance.
These sectors include:
What is the position of the MDF versus the Bapel/BRR?The MDF works together closely with the BRR. The BRR co-chairs the Steering Committee Meeting. All projects applying for possible MDF funding need to be approved by the BRR- project evaluation team first, and need to be in line with the master-plan of the Government of Indonesia for Aceh and Nias.
What is the difference between a MDF donor member and an observer member on the Steering Committee?A donor member is a country, an organization or private sector contributor who has made a pledge publicly with confirmation in writing, either by the Trustee or by signing the contribution agreement. They have voting rights, together with other members like the co-chairs, the goverement representatives and the Civil Society representatives.
The observer members are the representatives of the International NGO'sand the United Nations. The observers participate in meetings for coordination purposes and do not have voting rights..
Does the MDF have defined priority sectors or geographic locations in which projects are financed?Yes, the MDF has clearly defined priority sectors that it seeks to fund. They are sectors and projects supporting those sector that are not sufficiently addressed by other sources of finance.
The policy of the Steering Committee at a minimum, addresses the substantial funding gaps that enable a full rehabilitation of Aceh and Nias to its pre-disaster consitions. Once this has been achieved, remaining funds can be used to invest in improvements. This implies an initial focus on the substantial core funding gap, which are the following sectors, listed in descending orderof funding gaps present at the time of the establishment of the MDF:
The sectoral investment policy of the SC is therefore to initially focus on the sectors where there are substantial funding gaps to meet core needs. This suggests that funding in the short-term should go to meeting financing gaps and/or resolving critical issues in:
community infrastructure (particularly housing), repairing larger infrastructure (especially transport, energy, flood control and irrigation works), restarting livelihoods (fisheries and banking/finance could be included here although their funding gap is less significant) and the environment.
In the medium term, the SC could also focus investment on the "building better" aspects of the Master Plan, including rebuilding governance.
Does the MDF only finance projects from its Steering Committee member countries?No, any project that has been approved by the Bappenas and is within the mandate of the MDF could be approved by the Steering Committee for funding.
What is the role of the MDF in periodically evaluating the progress and results of projects which it finances?A monitoring and evaluation framework has been established for the MDF to help ensure that the desired results and outcomes of the GOI recovery program are achieved. The framework covers 2 areas:
Can my firm contract directly with the MDF for business?No, the MDF finances activities through Partner Agencies. Projects are implemented through Implementing Agencies. Funds generally flow thrugh the government of Indonesia's National Budget. All processes are in accordance with acceptable Worldbank procedures.
Go to the Java Reconstruction Fund Site
For more information please contact Olga Lambey: firstname.lastname@example.org