Indonesian Political, Business & Finance News

World Bank grants firms $3.5m for ozone projects

| Source: JP

World Bank grants firms $3.5m for ozone projects

JAKARTA (JP): Seven companies have received US$3.5 million in
grants from the World Bank to replace ozone-destroying production
techniques and materials with more environmentally-friendly
means.

The companies are the second group among the 26 Indonesian
firms included in the World Bank-sponsored, US$17 million ozone
protection projects. Assistant to the Minister of Environment Aca
Sugandhy presided over the signing of the sub-grant agreement
between his office and the seven companies yesterday.

The project is part of the World Bank's US$90 million Montreal
Protocol loan to 12 developing countries. Under the agreement,
the companies will be required to replace ozone-destroying
procedures with more ozone-friendly methods.

The office of the minister of environment cooperated with the
World Bank in conducting a feasibility study and has identified
26 manufacturers of refrigerant and aerosol which qualify to
obtain portions of the funds.

The companies were selected by the National Development
Planning Board (Bappenas) and the ministries of finance,
industry, trade and foreign affairs under the coordination of the
environment minister's office.

With the help of funding agencies and the community, Indonesia
is optimistic it will be able to phase out the use of ozone-
depleting halon later this year. Utilization of the
chlorofluorocarbons widely used in air-conditioning systems and
cosmetics will be eliminated by the end of next year.

The government plans to stop the use of two other substances,
trichloroethane and carbon tetrachloride, next year.

Since 1992, when Indonesia ratified a number of international
agreements on reduced use of ozone-threatening substances, it has
managed to lower the use of those substances by 50 percent.

Indonesia does not produce ozone-depleting substances.
However, some local manufacturers use them.

In 1992, Indonesia used 6,567 tons of ozone-depleting
substances: CFC-12 accounted for 63.4 percent, halon 14.8 percent
and CFC-11 accounted for14.2 percent.

In yesterday's ceremony, Aca called on local businessmen and
the general public to support the government's campaign to phase
out use of ozone-depleting substances. (swe)

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