Microfinance Focus, August 8, 2011: Expanding its support for the National Program for Community Empowerment (PNPM) for poverty reduction, Asian Development Bank (ADB) is providing a $100 million loan to the program.

ADB loan will finance community-driven projects that upgrade basic infrastructure in rural villages and improve sanitation services in poor urban neighbourhoods. The project will provide block grants directly to the communities to improve basic infrastructure facilities and sanitation services, including the construction of public baths, toilets and washing facilities, as well as waste treatment and disposal systems.

The ADB loan, from its ordinary capital resources, covers about 73% of the total project cost of $135.6 million, with the government financing around 19% and beneficiaries providing the balance in the form of counterpart contributions to community investments.

Last month, the World Bank committed a $531 million loan for PNPM, which is Indonesia’s largest community-driven poverty reduction program