The Red Crescent Authority signed yesterday an agreement with the United Nations Development Programme to build a $5.07 million (Dh18.6 million) city in Indonesia for the people affected by the December 2004 tsunami.

The project is a joint effort of the UAE Government, the UAE Red Crescent, the United Nations Development Programme, UN-HABITAT and the Indonesian Government.

The UAE government will contribute $5.07 million to assist with the construction of Shaikh Khalifa City that will be built in the Indonesian tsunami ravaged district of Banda Aceh.

The city will provide housing units and community infrastructure to house 1,033 families, said a UNDP official.

Dr Gaith Fariz, Officer in Charge of the UNDP, said the Red Crescent Authority has a distinguished name in the dispensing of international humanitarian aid through its continuous and generous support to a number of humanitarian projects and relief activities around the world.

"The signing of this agreement between UNDP and the RCA is part of the humanitarian action upheld by this country and at the same time bolsters the global achievements towards alleviating poverty and achieving the Millennium development goals presented by the United Nations at the Millennium Summit," he said.