World Bank helps E. Java urban development<\/p>\n
JAKARTA (JP): The World Bank has approved a US$142.7 million
\nloan for the improvement of urban infrastructure and services in
\nEast Java through the Second East Java Urban Development Project.<\/p>\n
The loan will be made at the bank's standard variable interest
\nrate, currently 6.98 percent, for 20 years, including a five-year
\ngrace period.<\/p>\n
According to a statement issued by the bank and made available
\nhere yesterday, the project will cost $244.2 million, with the
\nbalance coming from the government, water enterprises, provincial
\nadministrations and local communities.<\/p>\n
The project is expected to provide the urban infrastructure
\nneeds of cities and towns which are not addressed under the on-
\ngoing East Java-Bali Urban Development Project, which began in
\nMarch, 1991. In the long run, it is also expected to boost the
\nproductivity of East Java's industrial sector.<\/p>\n
East Java is Indonesia's second most populous province and has
\nthe highest number of poor residents.<\/p>\n
Indonesia's urban population exceeds 55 million and is growing
\nat more than five percent a year, more than twice the national
\npopulation's growth rate.<\/p>\n
Nationwide, only a quarter of urban households have direct
\naccess to piped water, another 15 percent buy drinking water from
\nvendors or shops and the rest rely on shallow wells or surface
\nwater courses, most of which are polluted by inadequately-treated
\nwaste-water.<\/p>\n
Meanwhile, only about 40 percent of urban households have
\naccess to adequate sanitation facilities and in larger cities
\nthere are serious industrial water supply and waste disposal
\nproblems.<\/p>\n
East Java has the largest industrial complex in Indonesia in
\nterms of employment and establishments, and contributes at least
\n21 percent of the national value-added manufacturing products.<\/p>\n
It also produces the highest non-oil gross domestic product of
\nall Indonesian provinces.<\/p>\n
Inadequate infrastructure investments, however, make
\nproduction and distribution inefficient. In 1994 several hundred
\napproved foreign investment applications failed to materialize
\ndue in part to deficiencies in water supply, transport and waste
\ndisposal. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/world-bank-helps-e-java-urban-development-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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