Environmental attorney Sanders says Asian Development Bank approves $500 million loan to improve water quality of Citarum River in Indonesia.

Indonesia's efforts to clean up the Citarum River, perhaps the world's most polluted river, received a major boost following the Asian Development Bank's (ADB) approval of a $500 million multi-tranche loan package.

The Citarum River Basin Territory supports a population of 28 million people, delivers 20% of Indonesia’s gross domestic product, and provides 80% of the surface water supply to Indonesia’s capital city, Jakarta. Over the past 20 years, rapid urbanization and industrial growth have resulted in growing quantities of untreated domestic sewage, solid waste and industrial effluents being dumped in the Citarum. Pollution levels now compromise public health, and the livelihoods of impoverished fishing families have been jeopardized by widespread fish kill.

The loan agreement requires compliance with ADB safeguards on the environment, resettlement and indigenous persons, as well as good governance requirements and other conditions set out in ADB policies. Clean water has been a major area of ADB assistance to Indonesia.

As of year-end 2007, ADB had provided Indonesia with 103 loans totaling $4.17 billion and 151 technical assistance projects totaling $68.8 million in the area of water, including related areas such as agriculture, irrigation, livestock, fisheries, forestry and rural development.