Evi Mariani, The Jakarta Post, Jakarta
In line with its ""Water for All"" policy adopted in 2001, the Asian Development Bank (ADB) is allocating more funding for water resources development in the Asia-Pacific region.
In Indonesia, average lending per year for water sector development will increase by 74 percent during the 2006 to 2008 period, the ADB told The Jakarta Post on Friday.
The ADB disbursed loans amounting to US$1.37 billion between 1995 and 2005, and will lend $714 million between 2006 and 2008, meaning that average annual lending will increase from $137 million a year to $238 million a year.
Apart from the increase in lending, the ADB will also increase its technical assistance grants from $1.55 million a year to $1.9 a year between 2006 and 2008.
""In addition, we have a $27 million grant project for community water services in Aceh and Nias island,"" Almud Weitz, a specialist at ADB's Indonesia office, said Friday.
For the future, the focus of the water projects will shift from water basins during the previous ten-year period to urban water programs for the next three-year period.
Between 1995 and 2005, 47 percent of the ADB's loans went to water basin projects, such as the Segara Anakan conservation and development project in Central Java. Another 28 percent went to rural water projects, and 25 percent to urban water projects.
For the 2006 to 2008 period, 47 percent of loans would be allocated for urban water projects, including promoting private sector participation and urban water supply and sanitation projects. Meanwhile, basin projects would get 35 percent of the loans while rural water projects would receive $130 million, or 18 percent of the total amount of $714 million.
The biggest loans in the ADB pipeline are for flood management programs in selected river basins in Java, with the total loans amounting to $150 million. The projects are expected to be approved this year.
For all of Asia, the Manila-based ADB plans to double its investment in the water sector over the next five years.
The plan was announced at a March 20 press conference during the 4th World Water Forum in Mexico City.
""As we start the second five years of implementing out ""Water for All"" policy, we are ready to step up water investments in the Asia-Pacific region through long-term partnerships with ADB's developing member countries, and closer collaboration with the private sector and civil society,"" said Wouter Lincklaen Arriens, ADB's lead water resources specialist.
The new Water Financing Program will bring the bank's investments in the water sector between 2006 and 2010 to well over $2 billion a year for Asia-Pacific, the ADB announced during the forum.
The ADB said that the policy was in line the Millenium Development Goal of halving the proportion of people without safe drinking water and adequate sanitation by 2015.
The ADB lends and grants money to 40 countries throughout Asia Pacific. However, for the water financing program, the ADB said that significant increases in funding were expected in the People's Republic of China, India, Indonesia, Pakistan and Vietnam.
