The soft loans will carry an annual interest rate of 0.75% to 1.3% and will be repaid in 30 to 40 years, give or take a grace period of up to 15 years.
In a joint statement released to the media, the two nations revealed that US$565 million would be used for the Tanjung Priok gas fired power plant extension, US$83.5 million will be for rehabilitation of the Semarang power plant and gasification project and US$56 million will be used for the Lahendong geothermal power plant.
The remaining US$302 million have been earmarked for the Java South Line (II) railway double tracking, the Jakarta fishing port rehabilitation and improvement, the Maritime Telecommunication System Development IV and Tanjung Priok Port rehabilitation projects.
The loan represents Japan’s commitment to the SE Asian country for the 2003 fiscal year. As large as the amount is, it comes second to Japan’s loans to India.
