Announcement of Four Million Dollars Credit to Indonesia for Technical Assistance on December 23, 1971

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1916 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 71/47 Subject: $4.0 million credit to Indonesia December 23, 1971 for technical assist2.nce The International oove!.opm~nt Association (IDA) has app.~oved a crerlit of $~.O million for technical assistance to Indonesia. The funds will be used for preinvestment planr:ing, feasibility and engineering studies, and consulting and advisory services. They are thus expected to per-le the way for a variety of projects, some of which the World Bank Group might assist in financing, while others might be financed from other sources. The specific sub-projects for wtich the credit is to be used have not yet been determ:!_ned and will be chosen in response to the Indoaesian Govei:·n- • ment 's reG_uest. In ea.ch ca.se 9 the Government itself will contribute at least 15% of the costs. The credit is the third of its kind: IDA earlier supported two technical assistance projects in the cotmtry, the first wj_th a credit of $2.0 million ln December 1968 and the. SC!cond with a credit of $4.0 million in September 1970. The funds prov:tded under those tw~ credits have now been fully committed or earmarked for specific sub-p::-ojects. The purpose of the technical assistance credit is illustrated by the wo~k done under the earlier creciits for the same purpose. Part of the money pro- vided under the first credit was used for preparing a seeds production project; after the project had been prepared, IDA lent $7.5 million to assist in implementing it. Similarly, a large proportion of the second credit was devoted to the detailed engineering of the Trans-Sumatra Highway; that work provided the basis for a highway project, for which IDA lent $34.0 million. The J.ates-:.: IDA credit is being extende<: to the Republic of Indones:!.a! cind is repayable in 50 years, including a 10-·year grace period. There is nc interest ch2.rge, although there :'.s a service charge of 3/4 of 1% to cover • IDA f s ac.lminist rati ve exp ens es • - 0 -