World Bank approves three projects worth $460 million
World Bank approves three projects worth $460 million
The Jakarta Post, Jakarta
The World Bank said on Tuesday it had just approved three
projects in Indonesia worth US$460 million to support poverty
reduction in the country.
The three projects are a sub-district community development
project (KDP3), water resource and irrigation sector management
program, and the Java-Bali power sector restructuring and
strengthening project.
"The three projects will play an important role in reducing
poverty and restoring key infrastructure," World Bank country
director for Indonesia Andrew Steer said in a press statement.
The KDP3 project aims to reduce poverty and improve governance
in rural areas by providing block grants to sub-districts to
support cost-effective, community based investment plans.
Communities then use these funds for infrastructure such as
roads, irrigation, clean water supply system as well as for
social services such as school buildings, clinics and training
programs.
Between 1998 and 2002, the project funded the development of
many infrastructure facilities, and economic and social
activities affecting some 35 million low-income people.
"The new project will continue to support village empowerment
and the national decentralization program," the release said.
The water resources and irrigation sector management program
seeks to support Indonesia's program in water resources and
irrigation.
Meanwhile, the Java-Bali power sector restructuring and
strengthening project aims at improving the performance of the
power sector in the densely populate Java-Bali region amid a
looming power crisis.
Through the project, the state-owned power company (PLN) will
be supported to pursue a financial and corporate restructuring
plan and strengthen the Java-Bali electricity supply system.
The Bank said that it would also assist the state gas company
(PGN) to prepare the groundwork for restructuring its gas
transmission and distribution given the importance of natural gas
for power generation.
Previously, the World Bank had approved a $250 million loan to
Indonesia for financing health programs, poverty alleviation as
well as road and other infrastructure projects.