UNDP & Tsunami Recovery

22 December, Banda Aceh, Indonesia -- One year after the tsunami, Aceh and Nias are on the brink of a construction boom which is showing a gigantic leap in construction spending from a normal $50 million to approximately $2 billion a year, according to the United Nations Development Programme (UNDP). This unprecedented jump in construction could result in many opportunities for the poorest in this tsunami-hit community, with the right training and enhanced local production of materials.

More than 200,000 additional workers will be needed in Aceh at the peak of reconstruction efforts in mid-2006. Compared with pre-tsunami construction figures, 13 times more materials are required, says UNDP research. Accenture, the global management consultancy, is providing services to research and analyze the “supply chain” of key economic sectors in Banda Aceh, with the aim of identifying those with most potential for local development.

“We want to focus our attention on the poorest of the population who survived the tsunami. They are the ones who most need to be a part of this building boom,” says Simon Field, Head of the UNDP Office in Banda Aceh. “So far, the majority of those who have regained their livelihoods are ones who had assets, land and work prior to the tsunami. If the right kind of attention is given to those who had no land, no boats, no businesses before the tsunami, the economy can reach pre-tsunami levels and remain strong even after the building boom ends.” says Mr. Field.

Lyndon Hedderly, Senior Manager at Accenture says, “There is phenomenal opportunity in the construction boom in Aceh. The question is, can supply meet the demand for bricks, tiles and other building material? Now is the time to act in order to enable Acehnese to participate fully in this economy.”

UNDP and the International Labour Organisation have set up an employment services network and are providing vocation and technical training. To date, more than 40,000 job seekers are registered on the database in Banda Aceh and more than 7,000 have found employment through the centre.

The push now will be to increase the training in skilled trades such as carpentry and bricklaying. “We want to ‘re-skill’ the workforce so they can be a part of the construction of houses, schools, health facilities and government offices. They need new and improved skills,” says Mr. Field.

Training and introduction of new technologies are part of the plan. UNDP is already working with Austcare to introduce easy-to-use brick machines that could substantially increase brickmakers’ output and ensure higher quality products. Zero interest loans would be offered to interested brick-makers for the machines. Training will also be provided to improve the quality of the bricks that are currently being made manually with the use of buffalos to mix the cement. Training women to make tiles will also be an important element of bolstering the local supply of building materials.

So what happens when the building boom falls off in four to five years? UNDP and Accenture analysis confirms the view that there is a tremendous opportunity for development of the Aceh coffee industry due to the rapid growth in the international market for premium coffee. “We will be working with the government on a longer-term economic strategy. The plantation economy, particularly coffee, will be the mainstay for the future of this area,” says Mr. Field.

For further information, please contact:

Cherie Hart at +62811806821 (in Aceh) or +661 918 1564, or e-mail: cherie.hart@undp.org