RI, China get WB loans

RI, China get WB loans

WASHINGTON (Reuter): The World Bank said it approved a $174 million loan to Indonesia to back a government project to improve services in the two largest cities in Central Java.

The World Bank also said it granted US$580 million in loans for China to help it improve its transportation system and protect its forests.

The $174 million Indonesian loan is part of a $320 million program to improve road networks, drainage, sewers, sanitation and the water supply in the two cities of Semarang and Surakarta on the island of Java, the Bank said.

The loan is extended for 20 years with a five-year grace period, and is repayable at the bank's standard variable interest rate, currently 7.27 percent, a statement said.

The first loan to China, for $380 million, will be used to build a four-lane "superhighway" along a major north-south route between the Hebei and Henan provinces. Only cars and trucks will be allowed on the new road.

The second credit, for $200 million, will be used to expand and protect China's forests through the establishment of timber plantations on barren land and other measures. The credit is for 35 years and carries no interest charge.