U.S. Trade and Development Agency

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FOR IMMEDIATE RELEASE                                    CONTACT:  Donna Thiessen 

                                                                                                                                                         (703) 875-4357



Nearly $2 Million in Grants Awarded in the Energy and Transportation Sectors


JAKARTA, INDONESIA – (September 23, 2005)  Today, the U.S. Trade and Development Agency (USTDA) awarded $1,992,950 for tsunami-related reconstruction efforts in the energy and transportation sectors in Indonesia.  The funding is comprised of five separate grants that support Indonesian efforts to rebuild and improve infrastructure in Aceh Province of northern Sumatra following the December 2004 earthquakes and tsunami.  Mr. Henry Steingass, USTDA Regional Director for Asia, conferred the grants in signing ceremonies held in Jakarta.  Senior representatives of the Government of Indonesia and state-owned enterprises signed the grants on behalf of recipient Indonesian organizations. 


Energy development in Aceh is the focus of three of the USTDA grants awarded today.  The first two grants, valued at $589,000 and $327,300, respectively, were awarded to PT Pertamina (Persero), Indonesia’s state-owned oil company.  The first grant agreement was signed by Mr. Hari Kustoro, Corporate Senior Vice President for Upstream, on behalf of Pertamina and provides partial funding for a study intended to assess the technical and economic feasibility of developing a geothermal power plant at Seulawah Agam in Aceh.  Pertamina has selected Stone and Webster of Boston, Massachusetts to conduct the feasibility study.  In addition to the USTDA grant, Stone and Webster will contribute additional resources toward the completion of the study.


The second USTDA grant to Pertamina was signed by Mr. Ari H. Soemarno, Corporate Senior Vice President for Marketing and Trading, and will fund a feasibility study on the requirements for repairing, modernizing, and potentially relocating the heavily damaged Krueng Raya and Meulaboh fuel depots in Aceh Province.  Petramina will compete the opportunity to conduct the study among interested U.S. firms.


The third energy-related grant, valued at $394,650, was awarded to PT PLN, Indonesia’s state-owned electricity company, for a feasibility study on the construction and upgrade of power transmission lines in Aceh necessary because of the large-scale destruction of transmission and distribution assets in the tsunami impact zone.  Dr. Herman Darnel Ibrahim, PT PLN Senior Vice President for Transmission and Distribution, signed the grant agreement for the grant recipient.  PT PLN will competitively select the U.S. firm that will conduct the study.

USTDA funding is also supporting improvements in Indonesia’s transportation sector and two separate grants were awarded to support the country’s initiatives in Aceh road infrastructure.  The grants, in the amount of $370,000 and $312,000, respectively, were awarded to the Ministry of Public Works of Indonesia and were signed by Mr. Hendrianto. N, Director General of Highways on behalf of the Ministry. 


The first grant agreement will fund a feasibility study on construction and improvement needs for secondary and feeder roads in Aceh.  The second USTDA grant awarded to the Ministry of Public Works will finance technical assistance on improving road maintenance and management in Aceh.  Specifically, the study will help identify practices and technologies that will protect critical road assets, including the new Banda Aceh to Meulaboh road.  The Ministry of Public Works will compete the opportunities to perform the studies among interested U.S. firms.  


This year, USTDA has identified 17 projects related to tsunami reconstruction efforts in Thailand, Indonesia, Sri Lanka and India that are eligible for potential grant funding by the agency.  These projects amount to over $6 million in collaborative efforts in energy, emergency communication, transportation, and environmental projects that offer significant opportunities for U.S. commercial involvement.


The competitive contracting opportunities associated with the USTDA grants awarded today will be announced on the Federal Business Opportunities website (  Interested U.S. firms should submit proposals according to the instructions contained in the Federal Business Opportunities announcements.  The Indonesian grant recipients will select the U.S. firms that will provide the USTDA-funded assistance associated with the specific USTDA grants that they received.


The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries.  The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment.  USTDA’s strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development.  In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.