WB approves $115m loan to Indonesia

WB approves $115m loan to Indonesia

JAKARTA (JP): The World Bank announced at the weekend that it
had approved two International Development Association (IDA)
credits worth US$115.4 million for health and water and
sanitation projects in Indonesia.

"Both of these projects have a strong anti-poverty focus, and
are geared towards improving the lives of the poor by delivering
essential basic services -- health and clean water or sanitation
-- to poor communities in a decentralized environment," said
World Bank country director for Indonesia Mark Baird in a
statement.

"These projects, funded by zero-interest IDA funds, are part
of our efforts to soften the terms of our overall assistance to
Indonesia and help reduce the government's debt service," he
added.

Baird said that the Bank planned to develop similar projects
in other sectors and areas of Indonesia as part of its new
country assistance strategy.

The Bank said that the health sector project was focused in
Lampung and Yogyakarta.

It said that the first aim of the project was to protect
health services, which are essential not only for the poor but
for the public at large, while initiating key sector reforms and
ensuring health sector financing.

The Bank said that the second objective was to help the
Ministry of Health carry out its new role in a decentralized
system -- a role which encompasses analysis of key issues,
advocacy of best practices and standards, and support for local
initiative and innovation.

The Bank said that the water and sanitation project was aimed
at improving the health status of poor communities by reducing
water, sanitation, and hygiene-related illnesses in underserved
rural villages.

The project would be implemented in about six provinces, the
Bank added.

The Bank is scheduled to sign the loan agreement with the
Finance Ministry on Tuesday. (rei)