Home News Asia News ADB pledges $1bn fund for Indonesia’s earthquake, tsunami

ADB pledges $1bn fund for Indonesia’s earthquake, tsunami

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Asian Development Bank (ADB) . (Photo: Twitter/@ADB_HQ) by .
Asian Development Bank (ADB) . (Photo: Twitter/@ADB_HQ)

The Asian Development Bank (ADB) pledged up to $1 billion of emergency assistance fund to support Indonesia’s immediate budgetary needs and reconstruction efforts in areas affected by earthquakes and tsunami on Sulawesi Island…reports Asian Lite News

Asian Development Bank (ADB) . (Photo: Twitter/@ADB_HQ) by .
Asian Development Bank (ADB) . (Photo: Twitter/@ADB_HQ)

The ADB assistance fund pledge was conveyed by the bank’s President Takehiko Nakao in presence of Indonesian President Joko Widodo during the annual meeting of International Monetary Fund and the World Bank in Bali.

The ADB emergency assistance fund consisted of $500 million to support the government’s emergency budget and an additional of $500 million to support reconstruction of critical infrastructure like water supply and sanitation, schools, roads and bridges, and electricity networks among others.

The emergency assistance fund was on top of ADB’s regular sovereign loan programme to Indonesia, which stood at an average of $2 billion annually.

The loans would have special terms, with grace period of 8 years and a repayment period of 32 years, longer than usual.

The ADB will also provide technical assistance to support government-led damage needs assessments as well as the recovery and reconstruction planning.