ADB Provides Loan of $500 Mln for Natural Disaster Recovery in Indonesia (blogadb)
MANILA, NNC - The Asian Development Bank (ADB) has approved a United States (US) $500 million emergency assistance loan to help the Indonesian Government rebuild Lombok and Central Sulawesi after the natural disasters that claimed thousands of lives and destroyed infrastructure, property and livelihoods.
The loan will provide funding as soon as possible for action plans for government recovery and rehabilitation directed at important needs, such as temporary housing, social protection and social services, as well as economic recovery through financial assistance, credit schemes, and skills improvement programs.
"The comprehensive assistance package from ADB will provide fast and flexible financial support for the government in order to mitigate the adverse effects of the natural disasters," said Sona Shrestha, ADB Director for Southeast Asia's Public Management, Financial and Trade Sector.
"The modalities of channeled loans will quickly ensure that post-disaster recovery and rehabilitation funding can be met without disrupting other economic and social development expenditures in the state budget."
The loan, called Emergency Assistance for Recovery and Rehabilitation from Recent Disasters, are part of ADB's response to two natural disasters that hit Indonesia, namely the 7.0 scale earthquake in Lombok , West Nusa Tenggara Province, in August, as well as a 7.4 magnitude earthquake and tsunami in Central Sulawesi Province, in September.
The disasters claimed more than 2,600 lives, injured around 18,000 people, and caused more than half a million people to live in refugee camps.
Public housing and infrastructure suffered severe damage. Central Sulawesi's natural disasters were especially severe because earthquakes triggered landslides, tsunamis, and liquefaction phenomena which caused solid soil to lose its stability. Preliminary studies indicate losses of $ 2.2 billion in the affected provinces
In addition to causing loss of lives and destruction of property, the disaster will have a major impact on the lives of affected people.
"Growth in the two provinces is expected to drop by half, employment will shrink, and poverty will soar," said Robert Boothe, ADB's public management specialist.
"ADB support will help the government mitigate these impacts, especially those that affect women, the elderly and vulnerable groups."
This loan is part of a series of ADB disaster response efforts. In October, ADB approved a $ 3 million emergency grant from the Asia Pacific Disaster Response Fund to support the government's efforts to provide immediate assistance in Central Sulawesi.
ADB also assists the government with technical assistance for post-disaster needs assessment and reconstruction planning. ADB is also preparing a $ 500 million emergency assistance project loan to support the reconstruction and relocation of critical infrastructure in the medium term.
Finally, ADB and the government are preparing technical assistance to build capacity to strengthen monitoring, evaluation and financial reporting of the rehabilitation and reconstruction plan.
ADB is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and Pacific, while continuing its efforts to eradicate extreme poverty.
Founded in 1966, ADB is owned by 67 members of which 48 are in the Asia and Pacific region. In 2017, ADB operations reached $ 32.2 billion, including $ 11.9 billion in cofinancing.