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)