New ADB Loans to Help Rebuild Critical Infrastructure in Central Sulawesi
Jun 26, 2019

JAKARTA, INDONESIA (26 June 2019) — The Asian Development Bank (ADB) has approved $297.75 million for the rehabilitation and reconstruction of public works and transport infrastructure in Central Sulawesi, where a 7.4-magnitude earthquake last year claimed thousands of lives and destroyed property and livelihoods.

“ADB remains committed to helping the people of Central Sulawesi get back on their feet after the disaster,” said the Director of ADB’s Urban Development and Water Division for Southeast Asia Mr. Vijay Padmanabhan. “The loans will help the government implement its master plan for rehabilitation and recovery following build-back-better principles.”

The September 2018 earthquake in Central Sulawesi caused landslides, a tsunami, and soil liquefaction that affected more than 1.4 million people in the area. The disaster claimed the lives of 2,081 people, injured 4,438, and displaced 200,000, while more than 1,300 people went missing. According to government estimates, the economic cost of the disaster reached $1.7 billion due in large part to extensive damage to housing, water supply, irrigation, roads, bridges, airport, and ports infrastructure.

The new financing includes two components. The first component will help the government construct, rehabilitate, and upgrade education and water supply facilities, including water treatment and distribution, in line with higher disaster resilience standards. This component will also improve water resource infrastructure in the province by rebuilding the Gumbasa irrigation system, upgrading the PASIGALA raw water supply system, and building coastal protection structures to prevent further erosion and tidal flooding. It will include the installation of hydrometeorological instruments for managing water flows across the river basin.

The second component will assist with the rehabilitation and reconstruction of airport and port infrastructure to enhance safety and boost economic development in the province. Specifically, the loan will rehabilitate the damaged ports in Pantoloan, Donggala, and Wani, improve their operating capacity, and support the establishment of their respective emergency response plans. The loan will also finance the repair and reconstruction of the runway and terminal at the Mutiara Sis Al Jufri Airport in Palu using disaster resilient designs and strengthen its disaster preparedness.

The new financing follows a previous $500 million emergency assistance loan approved by ADB for Lombok and Central Sulawesi in November 2018 to support the government’s immediate and near-term recovery activities, including the provision of temporary shelters and schools and livelihood assistance. In October 2018, ADB also approved a $3 million grant, financed by the Asia Pacific Disaster Response Fund, to support disaster victims. The rehabilitation and reconstruction work, through the new financing, will be closely coordinated with the government and development partners.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members—49 from the region.

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