Manila, Philippines (BBN)- The Asian Development Bank (ADB) is providing Indonesia with a US$100 million loan to finance community-driven projects that upgrade basic infrastructure in rural villages and improve sanitation services in poor urban neighborhoods.
The loan will expand ADB’s support for the National Program for Community Empowerment (PNPM Mandiri) for poverty reduction by providing direct assistance to poor communities, an ADB announcement said on Monday.
The project will also improve the capacity of the communities to carry out their own design and implementation of the projects to ensure that the investments reflect the need of the communities and are sustainable.
The ADB loan, from its ordinary capital resources, covers about 73 percent of the total project cost of $135.6 million, with the government financing around 19 percent and beneficiaries providing the balance in the form of counterpart contributions to community investments.
The Ministry of Public Works is the executing agency for the project, which is due for completion around March 2015.
BBN/SSR/AD-08Aug11-5:27 pm (BST)