ADB may disburse $1.2 billion this year

ADB may disburse $1.2 billion this year

The Jakarta Post
Jakarta

The Asian Development Bank (ADB) is considering disbursing
between US$1.15 billion and $1.2 billion in loans this year that
were put on hold last year when the terms and conditions set on
them were not met, an ADB executive said on Monday.

Visiting ADB vice president John Lintjer said the loans, if
disbursed, would be used to finance development projects here.

"We are hoping this year to be able to disburse our
commitments from last year to the government of Indonesia. This
isn't a new commitment, but it will be for 2002," Lintjer was
quoted as saying by detik.com after meeting with Vice President
Hamzah Haz at the palace.

Some of the ADB loans come attached to reform targets that the
government must first meet before they are disbursed.

Last year the ADB withheld a significant portion of its loans
that would have financed, among other things, power projects. The
loans were withheld because the government was unable to get a
new electricity law in place.

Securing these loans would help the cash-strapped government
finance some of its development needs.

Lintjer said that during his meeting with Hamzah, he asked how
Indonesia had been using the ADB loans and whether the money had
reached its intended targets.

Pervasive corruption in Indonesia remains a major concern to
international lenders, who want to ensure their loans are used
effectively.

ADB vice president for Indonesia, David Green, said most of
the loans the ADB planned to disburse this year would finance
infrastructure projects and poverty reduction programs.