Project Planned to Clean up Indonesia's Urban Areas

MANILA, PHILIPPINES - ADB is preparing a project to improve sanitation and public health, and to reduce pollution in Indonesia's urban areas, through a technical assistance (TA) grant of US$1.2 million.

The grant is funded from ADB's Japan Special Fund, financed by the Government of Japan.

With Indonesia's urban population projected to rise from the current 45% of the total population to 60% by 2025, amounting to 160 million people, the country's basic urban services, including water supply and sanitation, face a growing crisis.

"Poor sanitation services are causing severe urban pollution in Indonesia, affecting the health and well being of the population," says Rudolf Frauendorfer, ADB Senior Urban Development Specialist. "The project should contribute to improved wastewater collection and treatment and solid waste management, and benefit public health and urban environments through reduction in environmental pollution."

The grant will prepare a project that is in the pipeline for 2007 to address such problems, drawing up sanitation strategies for up to five large cities; appraisal reports and investment programs for three of these cities; and reform, public awareness, and governance programs.

The ensuing project, which would entail an ADB loan, would cut the amount of pollution reaching water bodies and thus reduce exposure of urban communities, particularly low income groups, to the risks associated with discharge of raw or partially treated sewage into city drains and rivers.

It will also address serious constraints facing the sector, such as lack of operation and maintenance capacity, absence of cost recovery tariffs, and low levels of public awareness.

The technical preparation's total cost is estimated at $1.5 million, of which $300,000 will be provided by the Government in the form of admin and office support. It will be undertaken over the next 10 months.