Promoting Research and Innovation through Modern and Efficient Science and Technology Parks Project (Additional Financing)

proposed

The Promoting Research and Innovation through Modern and Efficient Science and Technology Parks project supports the strategy of the Government of Indonesia to commercialize research and development (R&D) and improve the success rate of start-up incubation at four science and technology parks (STPs). The project supports the STPs by (i) upgrading R&D and start-up incubation facilities, (ii) providing grants to conduct applied research and incubate start-ups, and (iii) upgrading the expertise of STP researchers and the capability of research administration staff. The Asian Development Bank (ADB) approved the project on 8 December 2022, and declared it effective as of 23 January 2023, with a closing date of 30 June 2028. The project has a total estimated cost of JPY22,599.05 million ($152.80 million), comprising JPY20,487.11 million ($138.52 million) from ADB's ordinary capital resources (90.7%) and JPY2,111.94 million ($14.28 million) in government counterpart funding (9.3%). The proposed additional financing meets the eligibility criteria: (i) the overall project performance rating is on track, with cumulative contract awards of $17.5 million (12.63%) and cumulative disbursement of $11.36 million (8.20%) as of 3 July 2025; (ii) compliance with safeguards covenants is confirmed, as reflected in eOperations; (iii) delivery of outputs in the design and monitoring framework is on track; and (iv) management of risks is considered successful.