IDA CREDIT: US$ 123 million
TERMS: Maturity = 35 years; Grace Period = 10 years
PROJECT DESCRIPTION: The objective of the project is to reduce poverty and improve local-level governance in rural Indonesia. It is part of a nationwide village level community-driven development program that began with the first KDP in 1998. The development objectives for KDP3b include: (i) institutionalizing participatory processes in local government; (ii) providing cost-effective, basic social and economic infrastructure; (iii) strengthening the capacity of the micro-finance institutions to manage and monitor funds sustainably; and (iv) providing emergency reconstruction assistance.