JBIC provides $375m loan for RI rural projects<\/p>\n
JAKARTA (JP): The Japan Bank for International Cooperation
\n(JBIC) signed on Thursday a 46.35 billion yen (US$375.5 million)
\nloan agreement with the Indonesian government to finance several
\nrural projects in Sumatra, Java and Kalimantan.<\/p>\n
The agreement was signed by the Ministry of Finance's Director
\nGeneral of the Budget Anshari Ritonga and JBIC's chief
\nrepresentative in Jakarta Nobuo Hazeyama.<\/p>\n
JBIC said in a statement that some 7.64 billion yen of the
\nsoft loan would be used to finance the Second Batang Hari
\nIrrigation Project in West Sumatra and Jambi provinces, and 18.68
\nbillion yen would be allocated to the Second Water Resources
\nDevelopment Project in West Sumatra, Java and Kalimantan.<\/p>\n
Both projects are aimed at boosting food production in the
\nregions, according to the statement.<\/p>\n
The remaining 20.04 billion yen has been allocated to the
\nThird Rural Areas Infrastructure Development Project, designed to
\nimprove basic infrastructure such as roads, bridges and
\nsanitation facilities in rural areas. The bank did not specify
\nthe areas targeted for this project.<\/p>\n
It said the three projects were an extension of previous
\nprojects it had also financed.<\/p>\n
\"The three loans are provided for projects that will
\ncontribute to laying foundations for the medium and long-term
\ndevelopment of Indonesia, thus helping the country to achieve
\nsustainable growth,\" JBIC said.<\/p>\n
The loans will be provided in the form of \"goods and services\"
\nand \"consultancy services\".<\/p>\n
Goods and services carry an interest rate of 1.80 percent,
\nwith a repayment period of 30 years and a grace period of 10
\nyears.<\/p>\n
Consulting services carry an interest rate of 0.75 percent and
\nshould be repaid in 40 years with a grace period of 10 years, the
\nbank said.<\/p>\n
JBIC said the National Development Planning Board (Bappenas)
\nwould be responsible for the projects.<\/p>\n
The Second Batang Hari Irrigation Project would be jointly
\nexecuted by the Ministry of Resettlement and Infrastructure and
\nthe Ministry of Agriculture, while the Second Water Resources
\nDevelopment Project would be overseen by the Ministry of
\nResettlement and Infrastructure, the bank said.<\/p>\n
The Third Rural Areas Infrastructure Project would be jointly
\nexecuted by the Ministry of Resettlement and Infrastructure and
\nthe Ministry of Home Affairs and Regional Autonomy.(05)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jbic-provides-375m-loan-for-ri-rural-projects-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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