Banda Aceh River-based Urban Infrastructure Development

Country: Indonesia
City: Banda Aceh

Key Stakeholders and PartnersCity Government of Banda Aceh; Provincial Government of Aceh

Project Preparation Study PeriodApril 2008 – January 2009

CDIA SupportUS$ 327,500

Expected Downstream FinancingUS$ 22.6 million (National Government)

Infrastructure sectorsWastewater Management
Urban Renewal

CDIA priority impact areasClimate Change Mitigation and Adaptation; Environmental Improvement; Poverty Reduction

Key City Development Issues

Banda Aceh, the capital city of Aceh Province in the western part of Sumatra in Indonesia, was severely hit by the tsunami in December 2004. Thousands of people lost their lives and many more saw their livelihoods washed away by the catastrophic waves. Although some of the basic infrastructures were rehabilitated through international aid, the city’s old central business district (CBD) was still badly in need of infrastructure that could help revitalize its economy.

Details of Cooperation

CDIA provided technical assistance to the city of Banda Aceh in the conduct of a pre-feasibility study (PFS) of the Consolidated Urban Development Program for Krueng Aceh River. Specifically, CDIA supported the following activities: (i) investigation of the viability of a comprehensive river-based urban infrastructure development program; (ii) preparation of an investment plan and linking the prioritized projects to financing; and (iii) strengthening the capacity of the project coordination unit of the city government (TimKo) in preparing and implementing infrastructure investments.

Expected Development Outcomes

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When fully implemented, the consolidated urban development program in the old city center is expected contribute to the expansion of the economy of Banda Aceh through increased commercial activity in the area and improved environmental quality that will ultimately benefit some 20,000 residents, about half of whom are women.