Indonesia: Geothermal Power Development Project

Sovereign Project | 43249-012

Summary

ADB is proposing a multitranche financing facility (MFF) for the Government of Indonesia for the Geothermal Power Development Investment Program. The Investment Program will be financed under ADB and the Clean Technology Fund. The project preparatory technical assistance (TA) is necessary to: (i) review the steam resource assessments, and preliminary steam field and power plant designs that have been developed by PLN; (ii) to evaluate the financial feasibility of the sub-projects, and to (iii) fully evaluate the social, economic and environmental impacts of the overall Investment Program. The TA is financed by the Australian Government in the amount of $1.725 million and administered by ADB.

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Project Name Geothermal Power Development Project
Project Number 43249-012
Country Indonesia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector Energy - Energy sector development and institutional reform - Renewable energy generation - geothermal
Gender Equity and Mainstreaming Some gender elements
Description

ADB is proposing a multitranche financing facility (MFF) for the Government of Indonesia for the Geothermal Power Development Investment Program. The Investment Program will be financed under ADB and the Clean Technology Fund. The project preparatory technical assistance (TA) is necessary to: (i) review the steam resource assessments, and preliminary steam field and power plant designs that have been developed by PLN; (ii) to evaluate the financial feasibility of the sub-projects, and to (iii) fully evaluate the social, economic and environmental impacts of the overall Investment Program. The TA is financed by the Australian Government in the amount of $1.725 million and administered by ADB.

As per the original design, a MFF was prepared covering two projects, namely, Karaha Bodas (30 MW), and Sungai Penuh (Unit 1 and 2). However, in mid 2012, the government communicated to the ADB that it would not be proceeding with the MFF as envisioned since PERTAMINA had decided to pursue other sources of financing for Karaha Bodas and steam field development at Sungai Penuh, which did not require a sovereign guarantee.

The government however requested that the TA grant be continued and be used for: (1) project preparation support to PLN for preparing the Sungai Penuh Unit 1 power plant, and (2) capacity development for a new state-owned geothermal development enterprise, called PT. Geodipa Energi. The scope of the TA was accordingly changed in October 2012.

Project Rationale and Linkage to Country/Regional Strategy ADB's country strategy and program (CSP) strategy for 2006-2009 supports the Government of Indonesia (GoI) to achieve higher levels of pro- poor sustainable growth and to enhance social development. The proposed technical assistance (TA) directly supports two of the five identified areas of engagement in the country partnership strategy (CPS), namely: improved infrastructure and infrastructure services, and strengthened environment and natural resource management. Support for the geothermal sector is also highlighted in the Assessment Strategy and Roadmap (ASR) for Energy in Indonesia that is being currently developed. The proposed loan program is listed in the country operations business plan (COBP, 2010-2012). Currently, the Loan is listed as part of ADB's loan delivery for 2014-2016.
Impact Lower carbon emissions from the power sector in Indonesia
Project Outcome
Description of Outcome Increased access to geothermal-based renewable energy in Indonesia
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Construction and commissioning of the power plants.

2. Construction and commissioning of the transmission lines and interconnections.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nationwide
Safeguard Categories
Environment
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation with stakeholders related to resettlement will be conducted if land acquisition is required (6 PLN, provincial and local governing bodies, and local communities that live near the project site).
During Project Implementation The PPTA consulted relevant stakeholders and government agencies during project implementation. The government decided in early 2012 not to proceed with the investment program. The grant funds were then used to provide policy development support and capacity development and pre-project preparation activities for a new potential investment project. The PPTA activities were completed on 30 June 2014.
Business Opportunities
Consulting Services

A total of approximately 84 person-months of consulting services (36 person-months of international consultants and 48 person-months of national consultants) was engaged through a firm. The international consulting firm, together with the national consultants will be hired through quality-and cost-based selection (90:10 ratio of quality versus cost) on the basis of a simplified technical proposal.

Individual consultants with different expertise were also engaged to support the Geothermal Fund component.

Responsible ADB Officer Pradeep Tharakan
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
National Development Planning Agency (BAPPENAS)Jl. Taman Suropati No. 2
Jakarta 10310
Indonesia
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 20 Aug 2010
Last Review Mission -
PDS Creation Date 21 Apr 2010
Last PDS Update 27 Mar 2015

TA 7583-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Aug 2010 16 Nov 2010 16 Nov 2010 31 Jul 2011 30 Jun 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 0.00 0.00 0.00 0.00 0.00 0.00 20 Aug 2010 1,227,834.29

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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