A study of block grants for construction in three schools in Aceh, Indonesia

This study examines the impact of conditionality on the outcomes of Australian Government block grants for construction at three schools in Aceh. The study examines the impact of conditions designed to increase transparency, building quality, and also conditions aimed at protecting the environment; namely the condition excluding the use of unsustainably harvested timber.

A case study methodology was used to examine how conditionally affected outcomes across ten indicators of project success. This involved conducting face to face interviews in Aceh, Indonesia, with school heads, block grant committee heads, parent teacher committee heads, government officials, and Australian development practitioners. This primary data was analysed in conjunction with secondary data to draw conclusions about the impact on conditionality of block grant programs in schools.

Several conclusions are made which have implications for aid programs and individual development practitioners which are implementing community based construction methodologies. Recommendations are generated from the research findings which will improve the delivery of block grants for construction in schools in Aceh in the future.

It is recommended that:

1. Onerous conditions can be applied to block grant programs in the future, where they benefit Australian interests. However, strong engagement of government stakeholders is critical to maintaining a good relationship.

2. More effort be made by AusAID to explain onerous conditions, such as the condition not to use any non-sustainably harvested timber.

3. AusAID assesses the advantages and disadvantages of policies, such as that against the use of unsustainably harvested timber, before such policies are implemented.

4. School communities be engaged in consultation over building materials before projects begin. AusAID should decide on building materials in consultation with school communities, taking into account local capacity to maintain the selected materials.

5. Where possible, schools should be provided with as much freedom as possible over the choice of building materials.

6. In cases where AusAID deems that freedom over the choice of building materials is not possible, AusAID should take control of the building design, and the supply of building materials.

7. AusAID engages school communities on the strategies for maintenance during the design stage of infrastructure projects.

8. School communities should be required to demonstrate a capacity and a willingness to maintain infrastructure before projects are approved.

9. AusAID obtains a commitment from the Indonesian government to maintain schools as a condition of future projects.

10.More school infrastructure projects should use block grants for community based approaches to construction.

11. Schools have full financial control of their infrastructure projects.

12.Strict financial reporting requirements be continued in block grant programs.

13. Future block grant programs include the requirement of joint accounts between the school heads and the president of the school committee.

14.The condition of displaying financial reports on the school noticeboard be abolished.

15.The practice of issuing staggered payments be continued.

16.Tranche payments should be linked to satisfactory financial reporting by the school committee.

17.The practice of including a financial reporting format in the block grant agreement should also be continued.

18.The practice of transferring funds directly to the school committee be continued.

19. Schools should be required to produce evidence of land ownership as a prerequisite of the approval process.

20.The requirement of a detailed technical and financial proposal be continued in the future.

21.The condition ,requiring school committees to use separate committees for ordering and purchasing materials, should be abolished.

22. More schools be provided with the opportunity to estimate the timeframe of the implementation of their own infrastructure through block grants.