ADB agrees $302.9m aid package for RI

ADB agrees $302.9m aid package for RI

MANILA (Reuters): The Asian Development Bank (ADB) said yesterday it had approved a package of US$300 million in loans and $2.9 million in technical assistance grants to help the poor in crisis-hit Indonesia.

The Social Protection Sector Development Program will help impoverished people receive education, health, family planning and nutrition, the Manila-based multilateral financial institution said in a statement.

The program was developed jointly by the Indonesian government and several aid agencies.

"The crisis has pushed the cost of attending school and obtaining essential health care beyond the reach of Indonesia's poorest people. This jeopardizes their future productivity -- a cost that Indonesia will have to bear for many years," said Charles Currin, ADB senior education specialist.

Indonesia's financial crisis is expected to drive about half of its 200 million people below the poverty line by the end of the year, official estimates show.

A program loan of $100 million will be sourced from ADB's ordinary capital resources with an interest rate based on the variable lending rate system for dollar loans, including a commitment charge of 0.75 percent per year. It is expected to be disbursed in two equal tranches.

The loan will be amortized over 15 years including a grace period of three years.

A project loan of $200 million, which has similar terms to the program loan, will be repaid over 22 years including a grace period of two years.

The three technical assistance grants, totaling $2.9 million, will be financed on a grant basis from the Japan Special Fund, the ADB said.