The objective is to support the structuring and operationalization of the Regional Infrastructure Development Fund (RIDF) as a financial intermediary, which lends directly to the subnational governments. Through the Project, it is expected that the subnational governments will be able to address their critical infrastructure needs more effectively and overcome annual funding constraints with the dedicated funding available through the RIDF.
The Regional Infrastructure Development Fund will finance investments and provide technical assistance in thematic areas including, but not limited to: urban transport, urban water supply and sanitation, drainage, flood and hazard risk, solid waste management and slum upgrading and affordable housing.
For more information about project financing, please review the project summary.
The Bank has decided to use the World Bank’s (WB) Environmental and Social Safeguard Policies (Safeguard Policies) since (i) they are consistent with AIIB’s Articles of Agreement and materially consistent with the provisions of AIIB’s Environmental and Social Policy and relevant Environmental and Social Standards; and (ii) the monitoring procedures that the WB has in place to ascertain compliance with its Safeguard Policies are appropriate for the project. Under the WB’s Safeguard Policies, the project has been assigned Category FI, as it involves channeling project funds through a financial intermediary, PT. SMI. PT. SMI will assess and categorize the subprojects according to the WB’s Safeguard Policies. The Environmental and Social Management Framework and supporting safeguards documents prepared for the Project have been disclosed and posted on the following WB website: http://documents.worldbank.org/curated/en/453751478186707627/pdf/SFG2269-REVISED-EAP154947-Box396325B-PUBLIC-Disclosed-11-3-2016.pdf.
Senior Investment Operations Specialist (Urban)
Scenaider C.H. Siahaan
Director of Loans and Grants, Directorate General of Budget Financing and Risk Management
Ministry of Finance
Republic of Indonesia
Emma Sri Martini
President Director, PT. SMI