WB-funded projects poorly implemented

WB-funded projects poorly implemented

JAKARTA (JP): Minister of Health Farid A. Moeloek acknowledged
on Thursday the poor performance of projects aided by foreign
funds in his ministry.

He said the ineffective management of foreign funds had led to
only 30 percent of the money being absorbed so far.

"As we know, the implementation of foreign-funded projects by
the Ministry of Health so far has been unimpressive, and can even
be considered very low," he said.

At the launching of a project funded by a World Bank loan to
help improve medical skills, Farid said the allocation of the
remaining 70 percent of funds had been "rescheduled."

Farid did not specify how or when the money was rescheduled.
He said the poor performance was caused, by among other things, a
lack of understanding of project management, red tape, and
"unclear reasons".

Farid declined to specify further. He said in his address that
"without honesty, ethics and professionalism, the project
(launched on Thursday) would be only a waste of state money."

He also said that the government and the World Bank were both
examining everything related to corruption, collusion and
nepotism regarding World Bank projects in his ministry.

In his address, Howard Barnum, the World Bank's health project
task manager here said that he was aware of the many reports of
corruption of World Bank funds.

Barnum said after the ceremony that the bank was examining all
projects, including those related to health.

However he said the bank was confident that the funds for the
project launched on Thursday, Health Project V, would not be
misused, saying he knew and "trusted" the people involved. The
five-year period project runs through September 2003.

The World Bank loan of US$ 44.7 million makes up 80 percent of
the project's total budget of US$ 56.2 million (Rp 280 billion at
a rate of Rp 5,000 to the dollar). The final US$ 11.5 million,
is from the national budget, calculated at the same rate.

The project, involving training and scholarships, is seeking
to improve medical services in outlying provinces and the quality
of medical staff.

Provinces would determine their own preferred programs, which
Farid said was a new approach to ensure that provinces developed
better health services and healthier communities.

Central Java, South Sulawesi and Central Kalimantan have been
chosen as the project's targeted provinces because of Central
Java's large population and high number of poor people, South
Sulawesi's numerous health problems and Central Kalimantan's lack
of access to health services given its population is scattered
over such a huge area. (01)