Govt asks ADB, World Bank for help to rebuild infrastructure<\/p>\n
Rendi A. Witular, The Jakarta Post\/Jakarta<\/p>\n
The government will ask the Asian Development Bank and World
\nBank for their financial support to help rebuild infrastructure
\nin Aceh, severely-damaged by a massive earthquake and tsunami.<\/p>\n
Minister of Finance Jusuf Anwar said on Tuesday that it would
\nsoon ask the two international donor agencies to start disbursing
\nUS$3 billion in combined undisbursed loan commitments for that
\npurpose.<\/p>\n
\"The government is going to try and persuade the ADB and the
\nWorld Bank to switch unproductive and undisbursed loans as
\nemergency assistance for Aceh.<\/p>\n
\"We would allocate some of the loan funds to rebuild
\ninfrastructure in the province,\" Jusuf told reporters.<\/p>\n
Jusuf added that at present, undisbursed loans from the World
\nBank and ADB stood at $1 billion and $2 billion respectively. The
\ntwo multilateral agencies have been the country's main donors.<\/p>\n
The government has already allocated Rp 50 billion, taken from
\nthe 2004 state budget, for emergency assistance to victims in the
\ntragedy-hit areas.<\/p>\n
Aceh and North Sumatra provinces were the hardest hit by the
\npowerful earthquake, and by towering waves of tsunami that on
\nSunday swept through villages and towns in the two provinces,
\nleaving thousands killed and countless homeless.<\/p>\n
The tragedy -- the worst in decades -- has also left
\ninfrastructure destroyed, including road networks, seaports,
\nbuildings, and power plants.<\/p>\n
While the financial requirements to rebuild infrastructure has
\nyet to be determined, it is obvious that the government will need
\noutside help to do such extensive work, in view of the huge
\nconstraints it already faces in its state budget.<\/p>\n
The government is already struggling to keep the deficit below
\nRp 26.3 trillion, as targeted in the state budget for this year,
\nwith soaring oil prices pushing up significantly allocations for
\nfuel subsidies.<\/p>\n
In fact, the government plans to gradually reduce subsidies
\nstarting next year as a way of easing pressure on the annual
\nstate budget.<\/p>\n
Elsewhere, when asked about the impact of the disaster on the
\noverall economy, Jusuf said,\"I think the impact will be
\nrelatively limited. What's important is that we try our best so
\nthat Aceh can recover quickly.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-asks-adb-world-bank-for-help-to-rebuild-infrastructure-1447893297",
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"sponsor": "Okusi Associates",
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