World Bank Loan Totals US$20 Million
Friday, 09 June, 2006 | 13:31 WIB

TEMPO Interactive, Jakarta: The World Bank agrees to a new loan amounting to US$20 million for Java’s northern coast main roads. The loan by a performance based contract system for the preliminary stage will be allocated for the100 kilometers road connecting Surabaya (East Java) and Semarang (Central Java).

Hendrianto Notosoegondo, Director General of Public Works, said the US$20 million fund will be disbursed at the beginning of next year. “With the mechanism of a performance based contract, the contractor who wins the tender must maintain the roads so that the condition remains good,” he said in Jakarta, yesterday (9/6).

Sri Apriatini, Director of Program Development at the Directorate General Bina Marga, said the period of the World Bank’s loan is about three to five years. “As this is a pilot project, the loan is to fund the Surabaya-Semarang road first,” she said.

Sri Apriatini added that the government and the World Bank are still reviewing the possibility of funding for other main roads. “It’s not closed. Later, there is the possibility of funding for other roads,” she said.

Danto