The funds will be used to develop an electricity network in Bali.
“We are the most prepared country. A project is already available andIndonesia is in need of funds,” Bambang was quoted as saying byIndonesia ’s Antara News on December 4.
Bambang saidthat apart from the loan for the electricity network, Indonesiawould also receive loans for other infrastructure projects from theASEAN Infrastructure Fund (AIF) in the middle of 2014.
The AIF is lending 25 million USD to Indonesia for various infrastructure projects.
He estimated the overall cost of the electricity project in Bali at410 million USD. Bali desperately needs an electricity network of itsown; it currently receives electricity supply from Java to meet itsdaily requirement.
Bambang, who is also the chairman of theAIFs board of directors, said the first AIF loan would be used forexpanding the electricity transmission network from Java to Bali . Thatwill overcome the weakness of the current system, which frequentlycauses power outages in Bali , which relies heavily on the tourismindustry for revenues.
T he AIF is part of efforts by ASEANcountries to diversify their sources of funding as they attempt toupgrade their infrastructure.
ASEAN countries and the AsianDevelopment Bank (ADB) agreed to set up the AIF in September 2011 byregulating capital participation and contributions from each membercountry.
The ADB provides the management to the AIF and also acts as the technical consultant and loan registrar.
The AIF was established in Malaysia in April 2012. It becamecompletely operational in 2013. Shareholders of the fund include BruneiDarussalam, Cambodia , Indonesia , Laos , Malaysia , thePhilippines , Singapore , Thailand , Vietnam and the ADB.
The AIF plans to provide funds up to a maximum of 300 million USD ayear for various infrastructure projects, such as the development ofroads, railways, electricity and water networks, etc.
Theprojects chosen for funding will depend on the impact they will have onthe local community, especially with regard to poverty reduction andeconomic benefits.-VNA
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