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)