Draft BRR

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Draft BRR Transition Strategy
2 November 2007
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OBJECTIVES

• A seamless transition from BRR, Donors, and NGOs
  to Pemda and other relevant agencies
• That BRRs mandate to manage the recovery program
  is finalized and delivered in a fully
  transparent and accountable manner
• That an inventory of the assets developed during
  the recovery program, organized in a manner
  compliant with Indonesian standards and
  regulations, is done and properly documented
• That a critical analysis of potential problems
  and outstanding issues is done, including the use
  of a systematic methodology for addressing these
  potential problem and issues
• That a comprehensive framework for the continued
  redevelopment of Aceh and Nias is prepared and
  agreed upon by all stakeholders, with an emphasis
  on the operations of Pemda

A comprehensive transition strategy is required
to ensure
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BRR CAN ADOPT NARROW OR BROAD TRANSITION GOALS
Prepare for long-term development of Aceh

• Help GoA plan for next 5 years
• Transfer capacity from BRR

Maximise impact of overall Recon Rehab

• Coordinate transfer of NGO and donors assets
• Fill remaining gaps
• Monitor all activities

• Deliver on core BRR implementation mandate

• Deliver BRR projects
• Transfer assets
• Limit capacity-building

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PERPU DEFINED BRR ROLE TO BE QUITE BROAD
Perpu
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• Pasal 4
• Rehabilitasi meliputi perbaikan dan pemulihan
• prasarana dan sarana umum serta pelayanan publik
• prasarana dan sarana perekonomian yang mencakup
  perbankan, keuangan serta dunia usaha khususnya
  usaha kecil dan menengah
• prasarana dan sarana kesehatan dan psiko-sosial
• prasarana dan sarana kehidupan keagamaan serta
  adat istiadat
• prasarana dan sarana pendidikan dan kebudayaan
• hak-hak atas tanah dan bangunan
• prasarana tempat tinggal sementara yang memadai
  dan manusiawi dan
• prasarana dan sarana yang terkait langsung dengan
  normalisasi kegiatan pemerintahan dan kehidupan
  bermasyarakat.

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• Pasal 5
• Rekonstruksi meliputi
• penataan ruang
• penataan lingkungan hidup dan pengelolaan sumber
  daya alam
• pembangunan prasarana dan sarana perumahan serta
  pemukiman
• pembangunan prasarana dan sarana umum serta
  pelayanan publik
• pembangunan prasarana dan sarana perekonomian
  yang mencakup perbankan, keuangan serta dunia
  usaha khususnya usaha kecil dan menengah
• pembangunan prasarana dan sarana kehidupan
  keagamaan dan adat istiadat
• pembangunan prasarana dan sarana pendidikan dan
  kebudayaan
• penciptaan tenaga kerja yang menunjang kegiatan
  rehabilitasi dan rekonstruksi dan
• pembangunan prasarana dan sarana yang terkait
  langsung dengan normalisasi kegiatan pemerintahan
  dan kehidupan bermasyarakat dan
• pelaksanaan rekonstruksi lainnya sesuai dengan
  rencana induk dan rencana rinci.

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BRR STARTED WITH A VERY AMBITIOUS VISION, EVEN
THOUGH PERPU DEFINED ITS ROLE AS MORE LIMITED
Perpu
BRR vision objectives
Building reliable, dignified, prosperous, and
democratic Aceh and Nias

• To rebuild Aceh and Nias societies for both the
  individual and for the community
• To rebuild the physical and institutional
  infrastructure
• To rebuild the economy in order that businesses
  can return to normal
• To rebuild the government as a facility to serve
  the people
• BRR One-Year Report, Apr 2006

or
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WHAT EXPECTATIONS DO STAKEHOLDERS HAVE OF BRR
TRANSITION GOALS?

• Donors
• NGOs

• International

• Executive
• Legislative

National

• Government
• Legislative
• Public

Local

• Bapel
• Broader BRR
• Contractors/Satkers

BRR
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POTENTIAL ISSUESto be resolved

• Terms and condition of assets transfer
• Operational and maintenance management of
  transferred assets
• Viable solutions for finalizing incomplete
  projects
• Sustainability of soft/intangible programs
• Disputes between contractors, beneficiaries and
  implementers
• Audit results post BRR presence
• Issues of legal liability brought against
  implementers
• Receiving agencies position on accepting
  responsibility for certain assets
• Sustainability of investment for reconstruction

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Risk Management Issues

• The team assert the need to identify and
  establish a plan to address significant risks,
  both for managing delivery activities and for
  transition strategy purposes
• Operational Risk
• Quality
• Delivery
• Financial Risk
• Reporting
• Auditing
• Funding
• Legal Risk
• Procurement
• Environmental
• Political Risk
• International
• National
• Local

Both in addressing Compliance and Expectation
Management Issues
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Risk Map on Deputies and Regional Offices
illustrativeThe Risk Bearing Entities Needs To
Identify The Risk Profile of their undertaking
Technical Support Needs to be provided.
Immediate action
Periodic attention
Immediate attention
Annual reevaluate
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Transition and Capacity-Building

I July 2007
Transition
1 May 2009

• Managing Accountability
• Managing the Completion Process
• Managing Public Communication
• Integrating the Future Development Fund

Capacity Building

• Effective Involvement in Joint Planning
  Activities
• Infrastructure Operation and Maintenance Mgmt
• Development Planning and Budgeting
• Effective Spatial Planning
• Environment Management

Critical Areas for Capacity Building Activities
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SO FAR, THE PMT ROADMAP IS FOCUSED ON BRRS CORE
IMPLEMENTATION MANDATE
PMT Sub-teams

• Assets Management
• Document Management
• Program Continuation
• Reports and Audits
• Legal Aspects
• Capacity Building
• Donor Relation
• Communication
• Organization

• Deals mainly with BRR programs and assets
• Technical approach
• Avoids broader challenges of transition and Aceh
  development

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gtgt ASSET MANAGEMENT

• Assets management will be the most critical
  matter in the transition process. Both from the
  perspective of regulatory compliance and
  stakeholders expectation.
• Issues identified by the team are
• Definition, related to hard and soft assets,
  State owned and Non State owned
• Identification, by type, by location, by status
  of ownership, by status of completion/utilization
  , by operation and maintenance needs
• Mapping and maintenance of the information
• Assets Transfer Process
• Legal matters and closure of the transfer
• Definition of aggregate operation and maintenance
  requirements

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gtgt ASSET MANAGEMENT (2)

• The team has already developed draft of procedure
  and BRR Director decision for enactment guidance,
  APBN funded assets.
• The preparatory step of the Asset Mapping project
  funded by AusAid (On and Off Budget) is in full
  throttle and close to finalization. Additional
  funding may be needed as scope may expand to
  address deeper interest.

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gtgt DOCUMENTS MANAGEMENT (1)

• Document management is critical mostly in the
  area of compliance to the mandate/regulation. It
  is also an area with the highest risk as the
  contractual aspect is highly sensitive for both
  the high individual values and number of projects
  reasons.
• Issues identified by the team are
• Identification of needed documents both as
  required by law and by commercial/ contractual
  practices
• Collection of past and present documents from
  various sources, including from Team Terpadu,
  SAK, Wanrah, Wanwas. This will include Legal,
  Contextual and Knowledge documents
• Categorizing for analysis, storage and access
  purposes
• Preparation for Risk Mitigation purposes
• What has been done
• Scattered Activities by various
  deputies/secretariat,
• Preliminary activities toward the forming of a
  Document Task Force, and talks with National
  Archive Institution

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gtgt DOCUMENTS MANAGEMENT (2)
Strategic Recommendation The team recommends
that a Document Management Task Force be quickly
established as part of the Transition
Implementation Program. Its role should be both
organizing, implementing and coordinating BRR
various organization units to ensure that all
identified issues are addressed properly.
In the design and implementation of the program,
additional expert resources need to be identified
and recruited Formal assignment is urgently
needed.
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gtgt PROGRAM CONTINUATION

• Issues identified
• There are 6 main categories of project which is
  identified to exist in the transition period
• Programs listed in RENAKSI but have not been
  started yet.
• Normal BRR program which is running and will
  finish within the timeframe
• On going donors programs (various status)
• Unfinished/problem programs
• New donors program (need new approval) and
• Programs which are already running in the
  community (microfinance, BLM, etc)
• Issues related to each of the programs varies.
  The Risk Management framework need to be applied
  to assess the situation on each program

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gtgt PROGRAM CONTINUATION (2)

• Issues identified
• Key Issue to be addressed is the identification
  of the entity to take over either the
  implementation or the coordination of continuing
  program, assessing its capacity and BRRs role in
  developing it.
• While agreement with the accepting entities is
  critical, a default position need to be defined
  and preparatory steps taken
• The team noted that the Infrastructure Deputy has
  developed and implemented model for the transfer
  of key continuing program. It is recommended that
  the approach be shared and also implemented by
  other relevant projects as a retrofit as
  necessary

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gtgt REPORTING AND AUDIT

• Issues identified, Reporting
• Only BAPEL has the responsibility to do RR
  Financial Reporting
• Bapel, Wanrah and Wanwas has responsibility to
  prepare Performance Report (Laporan Kinerja)
• Financial Report of the Bapel need to have
• Budget Report
• Balance Sheet
• Cash Flow Report
• Notes on Financial Statement
• Performance Reports include
• Implementation Report
• Coordination with other Government Agencies
• Coordination with Pemda
• Coordination with Other Parties (Donor, NGOs)

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gtgt REPORTING AND AUDIT (2)

• Issues Identified, Audit
• The Transition Plan needs to consider the Supreme
  Audit program
• Supreme Audit program will cover
• 2008 Financial Audit
• Operation Audit on Activity vs Plan
• Audit/review/clearance from related institution
• Taxation Department
• Custom Department
• Ministry of Labor/Workforce
• Coordination on timing need to be done with BPK
  soon.

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gtgt LEGAL MATTERS

• Issues Identified
• Legal Matters related to Regulations
• Legal Matters related to Contractual Issues
• Legal Matters related to Internal Processses,
  beyond documents
• Legal Matters related to Public Accountabilities,
  including but not limited to Dispute Resolution
• Legal Matters related to conflicting laws
• The Team recommends that a complete Inventory and
  Assessment is done on all these legal issues, and
  a strategy is developed to address each, in view
  of the Risk Management framework

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Capacity Building Model
open source of programs
Range of support provided
Satkers
Support for Capacity Building
SPADA

• Direct Activity Support (eg Joint Planning)
• Training
• Coaching/Assistance
• Systems Development/ Enhancement
• Resource sharing/transfer
• Legal framework

IREP

• 4 Main Areas of RR related Capacity Building
  Programs
• Planning Budgeting
• Spatial Planning
• Operation Maintenance
• Disaster Risk Reduction

APGT
Other Donors NGO programs
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gtgt DONOR EXPECTATION FIELD VIEW
Issues identified Donors have concerns about
how the following issues will be addressed during
and after the transition process of BRR.
These issues will need to be incorporated in the
other areas mentioned, and to be given a special
attention when not covered.
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gtgt COMMUNICATION

• Issues Identified
• Continuous communication between BRR and Pemda
  and other institution needs to be ensured
  considering the complexity of the issues
• Mass and media communication need to be done in a
  coordinated manner to ensure that (public)
  expectation is well managed and continuity of RR
  program secured
• Recovery program as stated in BRRs Vision is a
  long term program and a shared responsibility
  with stakeholders, particularly Pemda. Output of
  RR should be viewed and used as an asset for
  continuous development. For that reason a
  sustainable communication program need to be
  jointly developed with Pemda (minimum) and other
  institution.
• Preparation for point 3. need to be done ASAP.

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gtgt ORGANIZATION

• Issues Identified
• Assurance of Continuity of RR programs Regional
  focus
• Total Commitment on the Closing and Assurance of
  Risk Management Areas to ensure the integrity
  of the overall RR undertaking for all sectors
  and cross sectoral too.
• Coordinating, Facilitating and Implementing
  Transition Program
• Gradual and well thought through plan need to be
  discussed and agreed with the Pemda as to how
  activities and resources be seamlessly
  transferred to manage and maintain RR assets and
  remaining programs
• Final Evolution of the BRR Organization
  preparation on how the systems and people of BRR
  can be contributed to strengthen the Pemda

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DISCUSSION WITH STAKEHOLDERS INDICATES THAT BRR
NEEDS TO PLAY A BROADER ROLE IN MANAGING
TRANSITION
Prepare for long-term Aceh development

• Help GoA plan for next 5 years
• Transfer capacity from BRR

Maximise impact of overall Recon Rehab

• Coordinate NGOs and donors
• Fill remaining gaps
• Monitor all activities

• Deliver on core BRR implementation mandate

• Deliver projects
• Transfer assets
• Limit capacity-building

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STAKEHOLDERS MADE FIVE MAIN SUGGESTIONS

• Complete inventory and plan transition for all
  assets, not just BRR constructed/procured
• Identify mechanism to facilitate early agreement
  between Central Government and Pemda on ownership
  of assets
• Create donor-funded Sustainability Fund to
  contribute to operation and maintenance expenses
  of assets post-BRR
• Build capacity by transferring slimmed-down BRR
  engine to Governors office
• Transfer disaster management knowledge (and
  personnel) to local and national government

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• T.h.a.n.kY.o.u