Bank NTT the First State-Owned Bank to Finance Projects with UNDPMar 31, 2016
Jakarta – Bank Nusa Tenggara Timur (Bank NTT) becomes the first government enterprise to finance development projects in cooperation with the United Nations Development Programme (UNDP) in an agreement worth US$150,000 signed on 31st March 2016.
The contribution – which is part of the Bank’s Corporate Social Responsibility programme – will be used to fund micro-hydro power plant in East Manggarai District and a solar water pump in East Sumba District through a project “Strategic Planning and Action to Strengthen Climate Resilience of Rural Communities” (SPARC) implemented in NTT province by the Ministry of Environment and Forestry and supported by the UNDP.
“[This agreement] marks a milestone in the relationship between Bank NTT and the UNDP…. I am confident this will improve the lives of the people of NTT,” said Douglas Broderick, UN Resident Coordinator (RC) for Indonesia.
The microhydro power plants are intended to supply 80 kW of sustainable electricity to about 350 families in East Manggarai district, while the solar water pump in East Sumba will provide clean water to 300 families and improve productivity of 8 hectares of dry agricultural land in the village.
“I thank the UNDP for its [development] activities in our region. We need the expertise in doing projects that our communities need,” President Director of Bank NTT, Daniel Tagu Dedo said in his remarks. The agreement was signed by Mr. Tagu Dedo and UNDP Indonesia Country Director, Mr. Christophe Bahuet.
The United Nations Assistant Secretary General and UNDP Regional Director for Asia and the Pacific Mr. Xu Haoliang, who witnessed the signing, expressed hopes that this first government-financing partnership with UNDP will encourage similar partnerships with regional development banks and other state-owned enterprises in achieving Sustainable Development Goals in Indonesia.
Ms. Sri Tantri Arundhati, Director for Climate Adaptation at the Ministry of Environment and Forestry, also witnessed the signing.
East Nusa Tenggara is one of the poorest provinces in Indonesia with a poverty rate of 25.7%, almost 10% higher than the national average of 16 percent. Access to electricity in the province is only 43%.
Livelihoods are overwhelmingly dependent on subsistence agriculture. Hence, rural communities are highly dependent on the climate and water availability.