ADB approves loans to Indonesia<\/p>\n
MANILA (AFP): The Asian Development Bank (ADB) yesterday
\napproved loans worth US$332 million to Indonesia, China and
\nBangladesh to finance various projects in the three countries.<\/p>\n
The bank said in a statement that it approved two loans
\ntotaling $200 million to partly finance water supply and
\nsanitation projects in Indonesia.<\/p>\n
It said the projects would benefit some 4.4 million people in
\nSumatra and West Java. It said $130 million will be given to
\nSumatra and $70 million to West Java.<\/p>\n
It said the projects include rehabilitation and expansion of
\nwater supply systems, sanitation, soil waste management,
\ndrainage, urban roads and market infrastructure.<\/p>\n
Total project cost in the two areas is $344 million, with the
\nJakarta government shouldering the difference.<\/p>\n
The ADB loans, from the bank's ordinary capital resources, is
\npayable in 25 years, including a six-year grace period. Interest
\nrate will be based on the bank's pool based variable lending rate
\nsystem for US dollar loans now at 6.91 percent annually.<\/p>\n
The statement said the bank also approved a $100-million loan
\nand a $600,000 technical assistance grant to China for a
\ntelecommunications project.<\/p>\n
\"Development of an efficient telecommunications network in the
\nPRC (People's Republic of China) is an important element in the
\ntransition to a market economy,\" the Manila-based institution
\nsaid in a statement.<\/p>\n
It said existing long distance telephone services in interior
\nprovinces and telecommunications access to wealthier coastal
\nareas are \"severely congested.\"<\/p>\n
The loan is payable in 23 years with a three-year grace
\nperiod. Interest will be determined through the bank's pool-based
\nvariable lending rate system for US dollar loans, which is at 6.9
\npercent.<\/p>\n
The bank also approved a $32 million loan to Bangladesh to
\nrehabilitate water control systems.<\/p>\n
The project, which will upgrade about 400 small-scale water
\ncontrol systems in 37 districts throughout Bangladesh, is
\nexpected to boost agricultural production and augment the incomes
\nof about 140,000 families, the ADB said in a statement.<\/p>\n
Estimated completion date for the project is June 2002, it
\nadded.<\/p>\n
ADB said the loan, part of a total project cost of $66
\nmillion, will be drawn from the Bank's Special Fund resources and
\nwill mature in 40 years with a grace period of 10 years.<\/p>\n
Meanwhile, the bank also approved a $3-million loan to the
\nCook Islands Development Bank to meet medium- and long-term
\nfinancing requirements.<\/p>\n
The interest-free loan will be payable in 40 years, including
\na 10-year grace period, with a one percent annual service charge.<\/p>\n
In addition, ADB also approved a $250,000 technical assistance
\ngrant to the Cook Islands bank.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/adb-approves-loans-to-indonesia-1447893297",
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