Bappenas proposes cancellation of 11 foreign-funded projects

Jakarta (ANTARA News) - The National Development Planning Board (Bappenas) has proposed the cancellation of 11 projects funded with offshore loans worth US$370 million made between 2000 and 2006.

"Because we want the loans to be used effectively and efficiently, Bappenas proposes the cancellation of foreign-funded projects which according to the result of our monitoring turn out to be very slow," State Minister for National Development Planning/Bappenas chief Paskah Suzetta said on Thursday.

The projects are ADB-funded health decentralization project worth US$4.9 million and World Bank-funded provincial health project worth US$32 million at the Health Ministry, ADB-funded capacity and profession development project worth US$14.3 million at the National Education Ministry, ADB-funded integrated management project worth US$3 million at the Agriculture Ministry, ADB-funded export development project worth US$72.83 million at the Finance Ministry, ADB-funded coastal and maritime resource management project worth US$4.1 million at the Maritime Affairs and Fisheries Ministry.

The other projects are ADB-funded flood control project in southern Java worth US$3.5 million and Japanese-funded flood control project for Ciliwung and Cisadane Rivers worth US$143.62 million at the Public Works Ministry, Japanese-funded sea disaster-preventing ships worth US$19.35 million, Japanese-funded rating school development project worth US$43.99 million at the Transportation Ministry, and Danish-funded diesel-engined power plants worth US$28.34 million.

"The projects were funded with loans made between 2000 and 2006," he said.

By the end of 2006, the amount of loans pledged by foreign countries and agencies reached US$13.7 billion, of which US$5.9 billion had been disbursed, he said.

"The delay in the disbursement of loans is among others caused by phases of the projects. For instance, the disbursement of loan for construction work cannot yet be made because it still has to wait for land acquisition for the project concerned," he said.

According to the agreement with the House of Representatives` Budgetary Committee, the amount of offshore loans to be withdrawn this year would reach US$4.3 billion, he said.

Data from the Bappenas show that by the end of 2006, the country`s outstanding loans stood at US$1,314.4 billion, accounting for 40.4 percent of the gross domestic product (GDP). The loans consisted of domestic loans worth US$ 693.1 billion or 21.3 percent of the GDP and offshore loans worth US$621.2 billion or 19.1 percent of the GDP