Indonesia: Java-Bali 500-Kilovolt Power Transmission Crossing

Sovereign Project | 42362-013

Summary

The proposed investment project will strengthen the Java-Bali power transmission grid by constructing 220 km of extra high voltage transmission lines with associated substations. The project forms part of the governments regional economic development master plan and its long-term power development plan. The project will benefit the population in Bali by meeting future demand growth in Bali Island, thus ensuring long-term power supply security to support sustained socio-economic growth and government plan to achieve 90% electrification by 2020.

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Procurement Documents

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Project Name Java-Bali 500-Kilovolt Power Transmission Crossing
Project Number 42362-013
Country Indonesia
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3083-INO: Java-Bali 500 KV Power Transmission Crossing
Ordinary capital resources US$ 224.00 million
Loan 8276-INO: Java-Bali 500 KV Power Transmission Crossing
ASEAN Infrastructure Fund US$ 25.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Sector / Subsector

Energy - Electricity transmission and distribution

Gender Equity and Mainstreaming No gender elements
Description The proposed investment project will strengthen the Java-Bali power transmission grid by constructing 220 km of extra high voltage transmission lines with associated substations. The project forms part of the governments regional economic development master plan and its long-term power development plan. The project will benefit the population in Bali by meeting future demand growth in Bali Island, thus ensuring long-term power supply security to support sustained socio-economic growth and government plan to achieve 90% electrification by 2020.
Project Rationale and Linkage to Country/Regional Strategy

Power shortage has been a critical infrastructure bottleneck throughout the country and fast track generation programs are being implemented to improve the power generation capacity. However transmission and distribution system has limited capacity to transmit additional power. Hence the transmission and distribution networks need to be developed in a coordinated manner to realize the benefits of the new generation capacities and to provide access to un-electrified areas.

Bali is Indonesia's top tourism showpiece. However, the Bali power system suffers from frequent outages and blackouts due to low generation reserve margin and transmission bottlenecks. Transmission of power from East Java to Bali at 500 kV level has been determined as the best option to improve the power supply in Bali based on power system studies and is included in PLN's power development plan. As the power demand in Bali is only about 2.5% of the total demand of the Java-Bali power grid, by coupling it with more efficient generation capacity in Java, this option is considered the most technically and economically feasible option than installing new generation in Bali. The project is an outcome of PLN's least-cost generation expansion plan and long-term transmission development plan.

The project will strengthen the power transmission system by connecting Bali with a 500 kV link to Java, thus facilitating efficient utilization of existing and planned power generation plants in Java. This would enable transmitting comparatively cheaper power to Bali from the large power plants in East Java. Currently PLN relies mainly on expensive diesel-based generation to supply electricity in Bali and the proposed transmission line will reduce operational expenditures which will also reduce the subsidy payments made to PLN by the government. PLN's investment in the project is also part of its nationwide plan to increase electrification. The upgrading of the 150/20 kV substations under the project along the proposed route of the transmission line also ensures provision of electricity among the local rural communities in the project area.

Impact Long-term energy supply security to support sustained socio-economic growth in Bali
Project Outcome
Description of Outcome Increased capacity of Java-Bali power transmission network
Progress Toward Outcome --
Implementation Progress
Description of Project Outputs

Development of 500 kV transmission networks

Development of 500/150 and 150/20 kV substations

Project management

Status of Implementation Progress (Outputs, Activities, and Issues)

Implementation of project is in progress. Recruitment of consultants and procurement of packages 1 and 2 are in progress.

Implementation of project is in progress. Recruitment of consultants and procurement of packages 1 and 2 are in progress.

Implementation of project is in progress. Recruitment of consultants and procurement of packages 1 and 2 are in progress.

In progress.

In progress.

In progress.

In progress.

Geographical Location
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

The project is classified as environmental category A, the highest environment impact categorization based on the ADB Safeguard Policy Statement 2009 (SPS). This is because the project is associated with two national parks. Broad based assessment of the project's environmental impacts has been carried out for all project components including associated facilities in accordance with the ADB Safeguards Policy. Relevant Indonesian environmental policies, regulations and guidelines were also considered in the preparation of the Environmental Impact Assessment (EIA) by PLN in coordination with ADB. Due consideration was given to environmental issues during the analysis of the interconnection options and selection of final alignment of the transmission line and sites for the two associated substations. Studies were carried out to avoid adverse impacts on (i) Baluran and Bali Barat National Parks which are protected areas; (ii) cultural sites, such as temples and mosques; (iii) physical displacement of people; (iv) public health hazards; and (v) land use. The environmental assessments concluded that most project impacts are short term during construction phase and can be effectively mitigated during implementation by adopting proper measures and procedures. The operational phase impacts are very minimal and a comprehensive package of environmental mitigation and offset measures has been designed to support biodiversity conservation in the two national parks. Draft EIA is available in the ADB website for public comments in accordance with ADB public communications policy.

The Environment Management Plan (EMP) of the EIA forms part of the bidding documents and PLN will administer both the construction contracts and the EMP implementation. PLN will submit regular implementation progress reports and monitoring reports to ADB for review. Project implementation consultants (PIC) are being engaged to assist PLN in the implementation and monitoring. In addition to the PICs an independent monitoring consultant will be engaged for independent monitoring in each quarter.

A grievance redress mechanism has been developed to receive concerns of the affected people / entities about the project's environmental performance and facilitate resolution. PLN's project management unit, project implementation units, contractors, and park authorities will be trained on all aspects of the EMP.

Further, ADB will provide a small-scale capacity building technical assistance for the institutional strengthening of the park authorities in the operational management, implementation of long-term conservation measures and monitoring of the implementation of EMP activities in the two national parks.

Involuntary Resettlement

There is no any physical displacement of people due to the project (no houses will be totally or partially demolished), however, there are about 128 structures that will be affected, mostly boundary walls located within the right of way of the transmission line.

About 717 hectares (ha) of land will be required for the project comprising forestry land (179 ha), PLN-owned land (2 ha), and private or company land (536 ha). About 1,198 households (about 3,892 persons) will be affected by the project in the two provinces (East Java and Bali) due to lose of single or multiple types of land which include residential, crop, and forestry. About 305 affected households are considered vulnerable groups, with 143 affected households are severely affected based on ADB safeguard policy statement (2009). Hence the project is classified as involuntary resettlement category A.

A detailed Land Acquisition and Resettlement Plan has been prepared and disclosed in ADB website in accordance with ADB public communications policy. People who are displaced will be given compensation for their affected assets, including crop compensation for the land at the tower locations, in accordance with the provisions in the resettlement plan. A livelihood restoration program has been included to compensate the severely affected people which include training programs to the affected people on relevant skills development. All relevant information regarding the project was disseminated and the opinions of the displaced persons were taken into consideration in developing the entitlement matrix. The resettlement plan will be updated once the detailed design is completed by PLN which is expected in the beginnning of Q2 2015. If, during implementation, additional compensation needs are identified, suitable adjustments will be made in the entitlement matrix in consultation with the affected people.

Indigenous Peoples There are no indigenous people affected due to the project, hence the project is categorized as category C (lowest impact categorization based on ADB Safeguard Policy Statement (2009).
Stakeholder Communication, Participation, and Consultation
During Project Design

PLN consulted with all project stakeholders, including affected communities, relevant government agencies, NGO/CSOs during the initial design, project preparation stage, and during design changes. Local communities have been consulted as part of the social and resettlement study to gather their views on the project. Additionally, focus group discussions were conducted within the project influence areas. Extensive consultations and participation with government agencies such as Minitry of Forestry, Ministry of Environement, Baluran National Park Authority, Bali Barat Natyional Park Aithority, Bali and East Java Provinical Land Agencies, and Bali and East Java Provincial Goevrnnements were completed. Detailed information on participation and consultation process during project design is given below.

Project Information Booklet translated to local languages was disseminated in project affected areas. Social assessment and focus group discussions were undertaken to address and ensure social concerns in project designing and selection of options for interconnection. As an integral part of safeguard assessment, affected communities and affected people were directly involved in the consultation. All stakeholders and affected people were informed about the project, its potential impacts and benefits. Consultations were also held to ensure participation and minimization of the negative impacts. Given lack of reliable electricity supply public opinion makers were asked whether power interconnection would be a viable alternative to improve existing electricity supply in Bali.

In addition to consultation meetings with affected people and communities through survey and focused group discussion (FGD), PLN conducted interactive meetings with various parties including provincial authorities and Ministry of Forestry and Ministry of Environment, to discuss the salient features of the project and its impacts on two National Parks and Coastal area along with its projected benefits to the community of Java and Bali regions. Meetings with district/sub district leaders and religious groups in Bali were also held to find discuss social issues and approval on the project has been obtained from this groups. On the basis of deliberations, a consensus emerged from the survey of affected families, FGD and interactive meetings that the power interconnection project implementation would result in a better alternate to increase access to secured electricity supply with a wide range of benefits to the community.

During Project Implementation

Consultation and Participation was considered as a part of the more extensive land acquisition and resettlement planning exercise. The process together with information dissemination will continue during the implementation of the project where views and concerns of all stakeholders will be taken into consideration and addressed. Local customs, religious practices, and traditional activities have been considered as a fully integrated part of the preparation process to avoid discrimination and/or disruption of activities.

Affected people will be consulted on a one-to-one basis through questionnaire surveys during detailed measurement surveys planned in Q1 2015.

PLN was guided to establish project cominication unit which is being established. PLN will ensure that essential participation process will be continued throughout the project implementation.

A consultation and participation strategy is streamlined throughout the project cycle and incorporated in the social safeguard documents to ensure all stakeholders will continue to participate during project implementation. Project implementation consultants are being recruited for assisting PLN and monitoring the implementation of stakeholder participation and consultation.

Business Opportunities
Consulting Services

Consultancy Package 1, Project Implementation Consultants and Capacity Building, 225 person months (71 person-months of international and 154 person-months of national consulting inputs), QCBS with 80:20 ratio, FTP

Estimated budget $3.53 million

Consultancy Package 2, Independent safeguards monitoring consultants, estimated 48 person-months (6 person-months international and 42 person-months national), QCBS, 80.20 ratio, BTP

Estimated budget $0.457 million

Procurement

International Competitive Bidding

Package 1, Lot 1, Transmission Lines, estimated cost $78.8 million

Package 1, Lot 2, Transmission Lines, estimated cost, $47.8 million

Package 2, Lot 1, Extension of Paiton Substation, estimated cost, $31 million

Package 2, Lot 2, New Antosari Substation, estimated cost, $54.1 million

Package 3, Lot 1, Substation Equipment, Estimated Cost $9.8 million

Package 3, Lot 2, Substation Equipment, Estimated Cost $9.8 million

Responsible ADB Officer Pradeep Tharakan
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Indonesia Resident Mission
Executing Agencies
Perseroan PT. Perusahaan Listrik NegaraIMADERO@PLN.CO.IDJalan Trunojoyo Blok M1/135
Kebayoran Baru, Jakarta 12160
Indonesia
Timetable
Concept Clearance 03 Jan 2012
Fact Finding 14 May 2012 to 25 May 2012
MRM 07 Sep 2012
Approval 03 Dec 2013
Last Review Mission -
Last PDS Update 31 Mar 2015

Loan 3083-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Dec 2013 30 Dec 2013 29 Sep 2014 30 Sep 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 385.00 Cumulative Contract Awards
ADB 224.00 03 Dec 2013 0.00 0.00 0%
Counterpart 161.00 Cumulative Disbursements
Cofinancing 0.00 03 Dec 2013 0.00 0.00 0%

Loan 8276-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Dec 2013 30 Dec 2013 29 Sep 2014 30 Sep 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 25.00 Cumulative Contract Awards
ADB 0.00 03 Dec 2013 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 25.00 03 Dec 2013 0.00 0.00 0%

Evaluation Documents

See also: Independent Evaluation

No documents found.


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