WB grants $17m for ozone projects

WB grants $17m for ozone projects

JAKARTA (JP): The World Bank has agreed to provide US$17 million in grants to 18 Indonesian companies for the protection of the ozone layer.

Benjamin Fisher, head of the World Bank's unit for social and environmental impact, was quoted by the Antara news agency as saying yesterday that the agreement, which was signed in Washington D.C. on Nov. 10, 1994, is part of the bank's $90 million Montreal Protocol loan to 12 developing countries.

Under the agreement, the companies will be required to replace ozone-destroying techniques and materials, such as CFCs, with more environmentally-friendly methods. CFCs are still widely used in Indonesia.

Following the signing of a memorandum of agreement between the Ministry of Environment and Bank Uppindo on the implementation of the ozone project, Fisher explained that the grant would be used for the development of sub-projects, investments, and technical assistance.

PT Sucofindo, a national consultant company, will draft the proposals for the sub-projects and Bank Uppindo will be responsible for the management of the grant, including its distribution to the 18 companies.

Fisher said Bank Uppindo would receive $50,000 worth of technical assistance to do their job, which will include monitoring the project's implementation.

The Ministry of Environment, he said, would receive $50,000 for promotion, project selection and to conduct workshops introducing ozone-friendly technologies.

According to Aca Sugandhi, an assistant to the state minister of environment, the 18 companies were selected by the National Development and Planning Board (Bappenas), the ministries of finance, industry, trade and foreign affairs, under the coordination of the Ministry of Environment.(pwn)