50330-001: Rantau Dedap Geothermal Power Project – Phase 2 | Asian Development Bank

Indonesia: Rantau Dedap Geothermal Power Project – Phase 2

Nonsovereign (Private) Project | 50330-001 Status: Proposed

The project will develop geothermal steam resources through production and injection facilities and construct, operate, and maintain a single power generation unit with a total capacity of approximately 90 megawatts (MW) in South Sumatra.

Project Details

Project Officer
Tonizzo, Martina Private Sector Operations Department Request for information
Country
  • Indonesia
Sector
  • Energy
 
Project Name Rantau Dedap Geothermal Power Project – Phase 2
Project Number 50330-001
Borrower/Company PT Supreme Energy Rantau Dedap
Country Indonesia
Location
Type or Modality of Assistance
Loan USD 160.00 million Proposed
B-Loan USD 126.00 million Proposed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Energy / Renewable energy generation - geothermal

Gender Equity and Mainstreaming No gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 2
Responsible ADB Officer Tonizzo, Martina
Project Sponsor(s) ENGIE Energie Services SA (formerly GDF Suez Energie Services S.A.)
Marubeni Corporation
PT Supreme Energy
Description The project will develop geothermal steam resources through production and injection facilities and construct, operate, and maintain a single power generation unit with a total capacity of approximately 90 megawatts (MW) in South Sumatra.
Objectives and Scope

The project will develop geothermal steam resources through production and injection facilities and construct, operate, and maintain a single power generation unit with a total capacity of approximately 90 megawatts (MW). The project is located in the Muara Enim, Rahat Regencies and Pagar Alam City, approximately 290 kilometers (km) from Palembang, the capital city of South Sumatra Province. The project will be developed and implemented under a 30-year power purchase agreement (PPA) with PLN (the off-taker) and a 15-year support from the Ministry

of Finance, as stipulated under a business viability guarantee letter (BVGL). It is intended for base load operation. PLN will develop a 30-40 km of 150 kV transmission line from the plant site to the 150 kilovolt (kV) Lumut Balai substation.

Linkage to Country/Regional Strategy
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects Exploration Program commenced in 2012 and construction of the access roads and well pads is advanced. The potential environmental and social impacts of the project have been identified in the exploration phase (as Phase 1). The implementation of effective measures to avoid, minimize, mitigate, and compensate for the adverse impacts started in the exploration phase and further measures to be implemented during construction and operations under Phase 2 are reflected in the safeguard reports and plans. The institutional capacity and commitment of SERD to manage the project's social and environmental impacts are deemed adequate.
Involuntary Resettlement The borrower completed acquisition of 124.5 hectares of land, comprising 9.5 hectares of private land and 115 hectares of Protection Forest lands, in 2014. The social safeguards compliance audit and corrective action plan prepared in 2014, included measures to improve livelihoods of the 153 affected households. The implementation of an Integrated Social Development Program (ISDP) to help improve or at least restore the livelihoods of project affected people, as well as provide broader project benefits to the surrounding communities, is underway. In addition, a proposed 39 km transmission line between the Project and the future Lumut Balai substation, considered an associated facility, will require additional land acquisition. The social compliance audit based on the review of the land procurement process and the implementation of the ISDP identifies additional measures to be implemented to ensure compliance with ADB's requirements.
Indigenous Peoples The majority of the households affected by land acquisition, and the general population in the Project area are Semendo, and are considered Indigenous Peoples (IP) by ADB as per the criteria in SPS identifying Indigenous Peoples (IPs). The social safeguards compliance audit, based on review of the actions taken up by the Borrower, confirms that the ISDP addresses the adverse impacts on the affected Semedo communities and results in potential benefits to the overall project area, including social upliftment and development of Semendo communities.
Stakeholder Communication, Participation, and Consultation Meaningful consultation has been undertaken and a grievance redress mechanism has been established.
Timetable for assistance design, processing and implementation
Concept Clearance 13 Dec 2016
Credit Committee Meeting -
Approval -
Last PDS Update 26 Apr 2017

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

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Related Publications

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