A project to build 21,500 permanent houses and 24,500 temporary shelters for victims of the Java earthquake and tsunami was launched Wednesday, the World Bank said. Some 6,000 people were killed and 300,000 homes destroyed or seriously damaged in the May 27 quake which hit the ancient city of Yogyakarta and its surrounding area. More than 600 were killed in the July tsunami which hit the southern coast of Java.

The 66 million dollar housing project was launched by the Java Reconstruction Fund, which brings together the EU, Britain, Canada, Denmark, Finland and the Netherlands, said the World Bank, which administers the fund.

"The people of Yogya are known for their skill and enterprise and giving them housing support will also help them regain their livelihoods, many of which are home-based.

"It's the quickest way to help rebuild their lives and repair the economy," said Andrew Steer, the World Bank's country director for Indonesia.

The bamboo transitional shelters are being built by the International Organisation for Migration and will eventually be dismantled and recycled into permanent housing.

IOM said the shelters were being pre-fabricated near the quake epicentre and then erected by IOM staff, construction workers, students and the quake survivors themselves.

"Prefabrication has proven to be a highly successful strategy to bring immediate and safe shelter relief to thousands of people who were still living in tents," said the IOM's Jules Korsten.

"It is a concept that can also easily be applied in future housing disasters in other parts of the world."

Providing quake survivors with shelter has been a priority with thousands of families still lacking a proper roof over their heads as the rainy season starts.