Introduction to the Infrastructure Reconstruction Financing Facility
Following the tsunami of 26 December 2004 and the subsequent earthquake damage in Nias, Bahan Rehabilitasi dan Rekonstruksi (BRR) was established by presidential decree to oversee reconstruction efforts in Aceh Province and Nias. A Multi-donor Trust Fund (MDF) was established to assist in the financing of the reconstruction works.
The World Bank is managing the MDF grant finance Infrastructure Reconstruction Financing Facility (IRFF). This provides funding for the infrastructure reconstruction, covering roads & bridges; ports; water supply & sanitation; flood control & drainage; coastal protection; and restoration of major irrigation canals in the 12 agreed districts and for the province. BRR is the executing agency for IRFF. The "Project" comprises all activities and subprojects being financed by the IRFF/MDF. IRFF will finance 30% of subprojects costs, BRR will finance 70%.