ADB lends Indonesia US$150m

ADB lends Indonesia US$150m

MANILA (UPI): The Asian Development Bank has approved a US$150 million loan for Indonesia for the improvement of a 210-kilometer (130-mile) stretch of road in the northern coastline of Java.

The road project, which is part of the national road linking Jakarta, Semarang and Surabaya, the largest cities in North Java, is expected to be completed by the first half of the year 2000.

The ADB said yesterday the widening of the road to four lanes is aimed at improving road traffic for the island, particularly for the manufacturing and export industries which have thrived in the area for the past 10 to 15 years.

The Bank will provide consultants to supervise civil works and assist in project preparation studies on other road improvements, particularly in the islands of Sumatra and Bali.

The Directorate General of Highways of the Ministry of Public Works will be the executing agency of the project.

The ADB loan has an amortization of 24 years and has an interest rate of 6.9 percent. The loan represents 45 percent of the project's total cost of $330.7 million, while the Indonesian government will provide the balance.

The Bank also extended a $900,000 technical assistance grant to help boost the Ministry of Communication's bid to promote private sector participation in developing the transport sector.