RI gets $90m ADB loan

RI gets $90m ADB loan

MANILA (Reuter): The Asian Development Bank (ADB) has approved two loans worth US$90 million for a flood control project to reduce damage to houses and crops, the Manila-based bank said on Thursday.

"The project (will) improve the quality of life by reducing flood-induced disruption of human activities and the incidence of disease...along the north coast of Java in the provinces of West and Central Java," the ADB said in a statement.

Java is the main island of Indonesia and the project will help prevent the regular flooding of houses and crops in the area.

One loan for $45 million comes from the ADB's ordinary capital resources and has a repayment term of 26 years, including a grace period of six years. Interest is at 6.9 percent, which is based on the ADB's pool-based variable lending rate system.

The second loan comes from the Bank's Special Funds and is virtually interest free since the service charge is only 1.0 percent annually. The loan can be repaid over 35 years, including a grace period of 10 years.