ADB Funds Indonesian Sanitation Projects

The Asian Development Bank has extended a $35m loan to Indonesia to improve water supplies in Medan and Yogyakarta and reduce pollution in surface water and groundwater.

The loan from the Manila-based bank will be used to build 280 sanitation facilities in the poor areas of the cities and two wastewater treatment systems in Medan.

The 25-year loan, which has a five-year grace period, will fund the rehabilitation and expansion of sewerage systems, adding 28,000 household connections in the two cities.

The total project will cost $63m, out of which the Indonesian Government will contribute $14m and regional governments will contribute the remaining $13.5m.

The project will be completed in December 2014.