S. Korea, RI sign loan deal

S. Korea, RI sign loan deal

JAKARTA (JP): Indonesian Minister of Foreign Affairs Ali
Alatas and South Korean Ambassador Hyung Ki Min signed two
project agreements worth US$23.5 million here yesterday.

One is for the US$20 million Manado bypass road project in
North Sulawesi while the other is for the engineering design of
the Isal-2 hydropower plant and associated transmission lines
worth $3.5 million.

These two new soft loans, provided under the World Bank-led
Consultative Group on Indonesia creditor consortium, brought the
total amount of concessional loans from the Korean Economic
Development Cooperation Fund (ECDF) to Indonesia to $71.7
million.

In addition, the Korean government also has pledged $30
million in soft loans to district hospital improvement in South
and East Kalimantan.

Indonesia and South Korea also signed yesterday a general
agreement concerning loans from the Korean ECDF aimed at
simplifying and expediting procedures.

Prior to the agreement, new ECDF loans needed separate
agreements in the form of an exchange of notes. With the new
agreement, which is valid for 10 years, only the arrangement of
the loan is needed. (mds)