WB selects Sleman for pilot project

YOGYAKARTA: Sleman regency has been selected as one of 11 regencies and municipalities to receive financial aid from the World Bank through the Urban Sector Development Reform Program (USDRP).

The aid will last for five years starting next year.

"We are the only regency among the other 10 municipalities selected for the program's pilot project," Sleman administration secretary Sutrisno, accompanied by the head of Sleman's Development Planning Board, Triharjun, told The Jakarta Post on Thursday.

The 10 municipalities in the program, according to Triharjun, are Bogor, Bandar Lampung, Blitar, Palu, Bau-Bau, Kediri, Yogyakarta, Semarang, Pontianak and Palembang.

Sutrisno said that to begin the program, Sleman had been required by the World Bank to prepare an initial proposal of Rp 45 billion, of which Rp 20 billion would be in the form of a loan and Rp 25 billion a grant.

"We are currently preparing the proposal under the supervision of the World Bank," said Sutrisno, adding that the proposed loan would be allocated to build a student housing compound, while the proposed grant would be allocated mainly for improving public facilities.

"In the long run, the funds allocated to us will be upward of Rp 100 billion a year," he said.

Since the regional autonomy law was issued in 1999, Sleman has received foreign aid in the form of loans, grants and technical assistance.

Apart from the USDRP, the regency also will receive a US$1 million grant per year from the Asian Development Bank for seven years starting in 2004, through the Sustainable Capacity Building for Decentralization program.

It also has received a grant of Rp 400 million from Deutsche Gesellschaft fur Technische to strengthen the joint secretariat that it established with the neighboring Yogyakarta municipality and Bantul regency.

Those programs including technical assistance include the Capacity Building Urban Infrastructure Management from 1999 to 2003, Building Institutions for Good Governance in 2001 and 2002, the International Resource Group in 2002 and the GTZ Urban Quality Program in 2002.

"By providing the best performance possible we are indirectly inviting outside parties to take part in our development activities. That way we will make Sleman better and better," Sutrisno said. -- JP