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Banda Aceh, Indonesia May 2019 Tracer Study Team: R 2018-2019INDONESIA Tracer Studies Banda Aceh, Indonesia May 2019 Tracer Study Team: R. Baoy and B. Capati PROJECT OVERVIEW PPS period October 2008 – April 2009 Focus sectors Urban transport CDIA supported activities (i) Review of river-based urban infrastructure development program (ii) Preparing an investment plan and linking projects to financing Linking to finance status Funded by the National and Local Government Photo by: Pexels.com 42 INDONESIA Background anda Aceh, the capital city destination and economic hub plan and linking the prioritized of Aceh Province in the in Aceh Province. In pursuit of projects to financing; and (iii) Bwestern part of Sumatra this vision, the city government strengthen the capacity of the in Indonesia, was severely hit by submitted an application for project coordination unit of the city the tsunami in December 2004. technical assistance in April government (TimKo) in preparing Thousands of people lost their 2008 for the conduct of a project and implementing infrastructure lives and many more saw their preparatory study (PPS) of the investments. livelihoods washed away by the Consolidated Urban Development catastrophic waves. Although some Program for Krueng Aceh River. In April 2009, the PPS team of the basic infrastructures were submitted its final report rehabilitated through international In June 2008, CDIA approved the recommending three projects aid, the city’s old central business city application, and in October that were prioritized in close district (CBD) was still badly in need 2008, a PPS team was dispatched consultation with TimKo, namely: of infrastructure that could help to Banda Aceh with the following (i) revitalization of the old CBD in revitalize its economy. objectives: (i) investigate the Peunayong area; (ii) improvement viability of a comprehensive of wastewater treatment and The government’s long-term river-based urban infrastructure drainage in the old CBD; and (iii) vision for Banda Aceh is for the development program; (ii) assist development of the Keudah bus city to become a premier tourist the city in preparing an investment terminal. Recovering from the 2004 tsunami which wreaked havoc to Banda Aceh and its people, its government envisages to become a premier tourist destination and economic hub in the Aceh Province. 43 INDONESIA Implementation Progress as of May 2019 After the PPS was completed in 2009, CBD, the PPS recommended the the Banda Aceh city government following infrastructure investments: gradually implemented the PPS (i) rehabilitation of pedestrian recommendations with funding support walkways; (ii) provision of urban from the national government. Key infrastructure elements in the Krueng members of TimKo that worked Aceh riverfront; (iii) construction of closely with the CDIA PPS team were pedestrian bridge across Krueng Aceh; mobilized as members of the PPP (iv) improvement of drainage and team tasked by the city government sanitation; (v) improvement of traffic to mobilize private sector investments control measures; and (vi) construction in the prioritized infrastructure of multi-storey parking facilities. projects. To date, two of the three prioritized projects have been partially Project implementation began in 2016 implemented with total investments with an initial budget allocation of estimated at $8.1 million (IDR 115 IDR 15 billion from the Department billion). of Public Works and the National Slum Upgrading Programme (NSUP). Revitalization of old Peunayong Rehabilitation of pedestrian walkways CBD. Peunayong is part of the old in major streets of the CBD has been downtown of Banda Aceh which has completed while landscaping and commercial and social importance construction of a 3-km river walk along given the existence of heritage Krueng Aceh are ongoing. According to buildings, hotels, related infrastructure, the City Director, the city government this part of the city is far from making will pursue the Peunayong CBD full use of its economic potential. revitalization program using future With the aim of enhancing the unique budgetary allocations to the city from urban character of the old Peunayong the provincial and national government. INDONESIA Terminal that is strategically located To date, two of the three in the Krueng Aceh riverfront and within the old city center. To harness prioritized projects the high economic, touristic and social potential of the area, the PPS recommended by CDIA have recommended that the city develops been partially implemented the site in partnership with the private sector and make the project a catalyst with total investments for economic growth, tourism and urban development. Part of the plan estimated at $8.1 million is to close the existing bus terminal and develop the site into a multi-use (IDR 115 billion). complex consisting of two types of facilities: (i) commercial (e.g., hotel, shops, restaurants, and parking facility); and (ii) public (e.g., women’s Wastewater treatment and drainage plant (WTP) in Kampung Jawa livelihood center, public conference improvement in Peunayong CBD. and drainage pipe network that and exhibition facilities, public library, Development of wastewater treatment will connect 5,000 households to parks and playground for children and and drainage system in the CBD is the WTP. tourism information office). important to avoid flooding and improve Implementation Progress as of May 2019 sanitation in the inner city area. In line Construction of the pilot WTP After the PPS was completed in 2009, with this, the PPS recommended the was 90 percent completed when the city government established construction of: (i) 100 communal some historical artifacts were a PPP team with the main task of anaerobic wastewater treatment discovered during the excavation linking the project to private sector systems to service residential and of the last treatment pond. This financing. In 2013, the PPP team was business users, markets, hotels and prompted the city government to able to secure technical assistance hospitals; and (ii) tertiary drainage suspend construction activities until from Bappenas for the preparation system in six districts, namely: a supplementary impact study is of the project feasibility study which Peunayong, Keuramat, Laksana, conducted by an independent entity became the basis for subsequent Kampung Baru and Pauniti. to verify the historical significance market sounding activities. After a of the area where the artifacts number of unsuccessful attempts at In 2017, the city built communal were found. linking the project to financing, the wastewater treatment and drainage city was able to attract a reputable facilities in four locations within the The city is currently looking for funds private investor in the Keudah old CBD using the IDR 500 million for the conduct of the supplementary Terminal Project in 2018. grant from the NSUP. Due to impact study. According to the operation and maintenance issues, Secretary of the City Department To cope with the high investment only the wastewater treatment of Environment and Sanitation, cost, this investor is currently looking facility in Peunayong market is construction of the three WTPs in the for local partners who are willing currently operational serving some 50 three other sites within the city pilot to infuse additional funds into the households and market stalls. Also, can only proceed when the study project. To demonstrate its readiness in 2015, the city was included as one is completed. When the four WTPs to take the project forward, the city of the pilot cities of the Sewerage become fully operational, some has already closed the terminal and System Development Project (SSDP) 20,000 households representing designated the Keudah roadside as of the national government. An initial about 40 percent of the current city one of the stopping points of Trans- project budget of IDR 100 billion from population will be benefitted. Koetaradja, the Bus Rapid Transit the Department of Public Works was Network operating in Banda Aceh as allocated to the city for the construction Development of Keudah Terminal. recommended by the PPS. of the pilot wastewater treatment The city owns a one hectare Keudah INDONESIA Intervention Results Although a number of the PPS- coordination unit of the city enhancing their project planning recommended priority infrastructure government. As part of the capacity and prioritization skills, city officials investments have yet to be fully building strategy, TimKo members acknowledged that their skills on implemented, city officials clearly were engaged in the entire PPS linking infrastructure projects to recognize the important benefits process from project identification PPP financing were enhanced as a that the PPS intervention has to PPS report preparation with result of the CDIA capacity building brought to Banda Aceh specifically the PPS team working with them support during the PPS intervention in terms of building the capacity in the same office provided by and their participation in linking to of the city in project planning, the city government. According finance trainings given by CDIA to improving the basic infrastructures to the City Director, the TimKo some of these officials after 2009. in the old city center and promoting members learned to think “out of Following the recommendation of riverfront development in the the box” and this new learning CDIA, the city government formed Kreung Aceh River. proved to be useful in subsequent a PPP team composed of officials planning and prioritizing other
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