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.