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ADB to invest in West Java infrastructure projects
West Java is turning to the Asian Development Bank (ADB) for finance as the province is planning to build massive infrastructure projects in the years to come, Governor Ridwan Kamil has said
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est Java is turning to the Asian Development Bank (ADB) for finance as the province is planning to build massive infrastructure projects in the years to come, Governor Ridwan Kamil has said.
Ridwan said the ADB is expected to participate in several projects in West Java, the most populated province in the country.
“Our infrastructure is still lackluster. Therefore, we need to prioritize development that includes the construction of additional toll roads, railroads, airports and ports,” Ridwan said in a meeting with ADB Indonesia country director Winfried Wicklein in Bandung, West Java on Friday.
The finance from ADB is expected to help accelerate infrastructure development in the province.
Wicklein said he was interested in financing several infrastructure projects in West Java.
“We found common areas of interest that we can work on together,” Wicklein said.
He added mutual interests came from the desire to build infrastructure that improves connectivity in the region. The projects are expected to create new jobs, as well as close the geographical gap between the northern and southern parts of the province.
“The ADB will also provide technical support and skill development programs,” Wicklein said, adding that he would continue discussions on possible investment with the West Java administration in October.
Ridwan Kamil welcomed the ADB’s initiative, saying that the West Java administration would pitch projects to the bank.
The West Java administration plans to develop three toll roads, which are expected to link the province with several regencies such as Sukabumi and Bogor, he added.
Furthermore, Ridwan has unveiled a possible financing scheme that would be implemented for future investments.
“We can borrow [funds] from the bank and allocate them to [infrastructure] projects. Alternatively, we can obtain the funds from city-owned companies or state-owned enterprises,”he said.
He added that attracting foreign investment could accelerate infrastructure development in the region, as the disbursement of government funds is often unreliable.
“During my five-year tenure as the mayor of Bandung, I found it extremely difficult to obtain project financing from the government because of a complicated bureaucracy,” Ridwan said.
Moreover, Wicklein added the country is among the ADB’s 69 most important clients. The bank’s partnership with Indonesia has contributed to projects in infrastructure, energy and sanitation.
“We’re also partners in education. I’m particularly excited about the future of education in West Java as the region will be a major contributor to national economic growth in the long term,” Wicklein said, adding that the ADB has contributed US$2 billion every year to various projects in the country. (rfa)
