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Implementation Completion Report (ICR) Review - Flores Earthquake Reconstruction Project

1. Project Data:   
Project ID:
Project Name:
Flores Earthquake Reconstruction Project
Highways, Transportation
L/C Number:
Partners Involved:
Prepared By:
Antti P. Talvitie, OEDST
Reviewed By:
Ronald S. Parker
Group Manager:
Gregory K. Ingram
Date Posted:

2. Project Objectives, Financing, Costs, and Components:

Objectives: The project objectives were: (1) minimize the adverse economic impact of the (Flores earthquake) disaster by restoring economic activity and social services in the affected areas, in support of the bank's assistance strategy of poverty reduction for Indonesia; (2) introduce measures to minimize the impact of possible future earthquakes; and (3) improve the standards of construction for infrastructure. Components: (1) reconstruction investments in (i) national and local government (kabupaten) roads and bridges (31%), (ii) education and health facilities (39%), and (iii) other facilities (10%); and (2) technical assistance in the management of the overall reconstruction program and in the development of measures to mitigate earthquake, landslide and tsunami damage in the future, including technical assistance in spatial planning, training in geology and seismology, and the procurement of equipment for seismological studies (20%). Costs and financing: The total project costs were US$57.9 million for which a Bank loan of US$42.1 million was approved in April 1993 and closed in November 1998 after three extensions for a total of one year and eleven months. A total of US$39.6 million was disbursed and the remainder was canceled.

3. Achievement of Relevant Objectives:

The project achieved its objectives. The targets set for roads and bridges were exceeded. The quality of construction was generally good because substandard quality was rectified. Structures were designed to minimize the risks of eventual future earthquakes; the structural designs incorporated seismic factors. The standard of construction using innovative bamboo and steel construction gradually improved during the course of the project. The identified rehabilitation and upgrading of the schools was completed. Over one hundred health centers and one hospital were rebuilt and one new hospital was built. The other physical facilities were completed as planned. Technical assistance in the project was successful. Disaster management manuals and training was provided to numerous professionals, officials and unskilled workers. There was skills transfer in seismic resistant design and construction. Finally, several studies were completed in spatial planning to mitigate losses and damage due to earthquakes and to develop disaster management strategies for vulnerable areas of Flores island. The ex-post ERR for the project is 18 percent because this was an emergency loan there was no ex-ante ERR.

4. Significant Outcomes/Impacts:

The delivery of educational, medical and many other social services in Flores island have improved. Economic activity has increased. There has been a significant transfer of technology for seismic resistant design and construction. Preparedness for emergency situations has improved.

5. Significant Shortcomings (include non-compliance with safeguard features):

The only significant shortcoming was that the construction of the new hospital experienced delays due to design changes and contractor performance, but it is now partially operational.
6. Ratings:ICROED ReviewReason for Disagreement/Comments
Institutional Dev.:
    No disagreement. ICR 'partial' rating is in the lower end of OED's substantial rating.
    The uncertain rating of sustainability was given due to the uncertain economic and social situation in Indonesia. However, there is a good plan to monitor the project operation, and as a result of project TA there is heightened public awareness and increased institutional capacity to respond to earthquakes. Both are sustainable.
Bank Performance:
Borrower Perf.:
Quality of ICR:

7. Lessons of Broad Applicablity:

The ICR contains a thoughtful discussion on lessons learned. They are: (1) OD 8.50 focuses excessively on rapid emergency response. Innovative mitigation measures, also called for in the OD, take time to develop, and the implementation period of an ERL is too short to allow this to be accomplished effectively; (2) Governments that do not have a tradition of encouraging participatory project management need assistance to mobilize local participation; (3) make the General Reconstruction Guidelines a living document that is updated often and made a part of disaster preparedness; (4) use local materials with seismic-resistant designs to obtain cost savings; and (5) to develop the private sector capacity (in the construction and insurance industries) to respond to disasters in a more timely manner.

8. Audit Recommended?  No


9. Comments on Quality of ICR:

The quality of the ICR is exemplary. It is frank and direct. It addresses the issues well and comprehensively. The borrower contribution is also exemplary.

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