Thursday

Questions :

1. What is the EDFF ?
2. What are the objectives of EDFF ?
3. What are the projects supported by the EDFF ?
4. How to does a sub project get funded ?

Answer:

1. What is the EDFF
The EDFF is an umbrella project that will finance a set of subprojects to foster job creation and sustainable economic recovery and growth in Aceh. It will support a comprehensive approach that focuses on improving the investment climate and removing barriers to private sector development and supply side constraints. It will support the GoA ’s efforts to bring about a viable and sustainable economy; an economy which universally supports business development and job creation.

The project will support initiatives to promote sustainable economic growth and job creation, in line with the GoA’s Rencana Pembangunan Jangka Menengah Daerah (RPJMD). To achieve this, the project will finance sub-projects that contribute toward the following development objectives, identified by the GoA as key for sustainable economic development in Aceh: (i) Development of job-creating, market-driven enterprises engaged in value-add processing and manufacturing, especially in agriculture and fisheries; (ii) Sustainable improvement of production quality and value in agriculture, fisheries and estate crops that contributes to alleviation of poverty; (iii) Increase in international trade, especially direct exports; and (iv) Increase in domestic and foreign investment in Aceh. Economic Development Financing Facility project (EDFF), a MDF Grant consisting of two main components to be implemented during January 2009-June 2012 period, will support initiatives to promote sustainable economic growth and job creation in the whole of Aceh, in line with the GoA’s RPJMD and BAPPENAS’ blueprint. Component One (US$44.5 million) will support sub-projects that address critical issues affecting economic development in Aceh by contributing to economic recovery post-tsunami and building a more competitive and supportive business environment necessary to create broad based private sector job opportunities and growth, targeting the poor and other vulnerable groups. Component Two (US$5.5 million) will fund project management and capacity building including an international consultancy to assist the project management.

2. What are the objectives of EDFF
The project will promote post-tsunami economic recovery and foster sustainable equitable long-term economic development in Aceh in line with the GoA’s own plans for economic development (RPJMD). To achieve this, the project will finance sub-projects that contribute toward the following development objectives, identified by the GoA as key for sustainable economic development in Aceh: (a) Development of job-creating, market-driven enterprises engaged in value-added processing and manufacturing, especially in agriculture and fisheries; (b) Sustainable improvement of production quality and value in agriculture, fisheries and estate crops that contributes to alleviation of poverty; (c) Increase in international trade, especially direct exports; and (d) Increase in domestic and foreign investment in Aceh. Most important aspect of the project will be the building of capacity at BAPPEDA, the Development and Planning Agency of Aceh. BAPPEDA, with the assistance of an international consultant firm, will learn through hands on experience how to evaluate, select and monitor the implementation of sub-projects to support long term economic development. This is particularly important in light of the large amount of resources available to the provincial government and the recent decision to allocate the Special Autonomy Fund on a programmatic basis between the provincial and district governments. The experience gained under the project will better position the GoA to further its economic development agenda from its own resources.

3. What are the projects supported by the EDFF
The EDFF supported sub-projects which fill-in strategic and financing gaps, based upon the vision for economic development explicit in the RPJMD, in the following areas:
a. Improving the Business Environment
b. Private Sector Support
c. Public Infrastructure