ADB approves loans to Indonesia
ADB approves loans to Indonesia
MANILA (AFP): The Asian Development Bank (ADB) yesterday
approved loans worth US$332 million to Indonesia, China and
Bangladesh to finance various projects in the three countries.
The bank said in a statement that it approved two loans
totaling $200 million to partly finance water supply and
sanitation projects in Indonesia.
It said the projects would benefit some 4.4 million people in
Sumatra and West Java. It said $130 million will be given to
Sumatra and $70 million to West Java.
It said the projects include rehabilitation and expansion of
water supply systems, sanitation, soil waste management,
drainage, urban roads and market infrastructure.
Total project cost in the two areas is $344 million, with the
Jakarta government shouldering the difference.
The ADB loans, from the bank's ordinary capital resources, is
payable in 25 years, including a six-year grace period. Interest
rate will be based on the bank's pool based variable lending rate
system for US dollar loans now at 6.91 percent annually.
The statement said the bank also approved a $100-million loan
and a $600,000 technical assistance grant to China for a
telecommunications project.
"Development of an efficient telecommunications network in the
PRC (People's Republic of China) is an important element in the
transition to a market economy," the Manila-based institution
said in a statement.
It said existing long distance telephone services in interior
provinces and telecommunications access to wealthier coastal
areas are "severely congested."
The loan is payable in 23 years with a three-year grace
period. Interest will be determined through the bank's pool-based
variable lending rate system for US dollar loans, which is at 6.9
percent.
The bank also approved a $32 million loan to Bangladesh to
rehabilitate water control systems.
The project, which will upgrade about 400 small-scale water
control systems in 37 districts throughout Bangladesh, is
expected to boost agricultural production and augment the incomes
of about 140,000 families, the ADB said in a statement.
Estimated completion date for the project is June 2002, it
added.
ADB said the loan, part of a total project cost of $66
million, will be drawn from the Bank's Special Fund resources and
will mature in 40 years with a grace period of 10 years.
Meanwhile, the bank also approved a $3-million loan to the
Cook Islands Development Bank to meet medium- and long-term
financing requirements.
The interest-free loan will be payable in 40 years, including
a 10-year grace period, with a one percent annual service charge.
In addition, ADB also approved a $250,000 technical assistance
grant to the Cook Islands bank.