Use of Aid funds for reconstruction comes with conditions

Rebuilding houses for families who are homeless or had their homes severely or partially damaged is paramount to government.
At a media conference on Friday, Finance Minister Wilke Rasmussen said that Aid Management division of the Ministry of Finance and Aid Management (MFEM) are willing to consider a government proposal to reallocate $8million of unspent aid money from NZAID and AusAID.
However, it is on the proviso that the Cook Islands government puts forward a detailed plan and damage assessment and options to cope with the extensive reconstruction programme. This would include details of precisely how many homes need reconstruction, repairs or an entirely new structure.
To this end, government assessors from MOIP have already made their assessment that will be discussed at the Cabinet meeting next week. Their assessment has been supplemented by that provided by Red Cross who have been on ground in Aitutaki since the beginning.
In addition, the donors require an independent assessment and that will be provided by a consultant from the United Nations Housing Reconstruction scheme who will be arriving on Sunday.
To assist with the task, a team of six engineers from MOIP are going to Aitutaki on Monday to carry out a quantity survey of the estimated amount and type of building material needed for the project.
Minister Rasmussen said more details on the reconstruction programme will be announced on Wednesday (which will give time for the information to be collated and analysed).
Options government are considering are perhaps 50% as a grant and the other 50% by way of a concessional loan to owners – it was all about finding a logical and fair manner for everyone concerned. A priority list will need to be compiled as to who would be eligible (eg families with children, or elderly persons and what to do about those whose owners are overseas). Whatever the result the Minister says the houses will be basic homes with perhaps one bedroom with kitchen and bathroom which is basic and safe but will be no means be a palace.
Government is looking at the options of kitset homes or whether to go ahead and build with appropriate materials sourced locally. Tendering out the reconstruction contract is an option, but then again the government is open on that given the urgency of the matter and the numbers of homes involved. The Minister contradicted the assertion that tendering is a requirement under the MFEM Act under the circumstances. Then there is the issue of building controls to ensure that all homes (and public buildings) are built to a proper standard of the building code including all the buildings that are being repaired at the moment.
Another factor to be taken into consideration is that the banks have already announced their assistance packages to stricken families and government is mindful of that as they forge ahead with their assistance package for reconstruction.