Indonesia: Java-Bali 500-Kilovolt Power Transmission Crossing
ADB is supporting the development of Indonesia’s Java-Bali power transmission network. The project will construct 220 kilometers of extra high-voltage lines with the capacity to transmit 1,500 megawatts of power. It will also extend a 500/150 kilovolt (kV) substation in East Java, build a new 500/150 kV substation in Antosari, Bali, and upgrade 11 150/20 kV substations.
Project Details
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Project Officer
Palupi, Ira
Southeast Asia Department
Request for information -
Country/Economy
Indonesia -
Modality
- Loan
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Sector
- Energy
Related Projects
Project Name | Java-Bali 500-Kilovolt Power Transmission Crossing | ||||||||
Project Number | 42362-013 | ||||||||
Country / Economy | Indonesia |
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Project Status | Closed | ||||||||
Project Type / Modality of Assistance | Loan |
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Source of Funding / Amount |
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Strategic Agendas | Inclusive economic growth |
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Drivers of Change | Partnerships |
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Sector / Subsector | Energy / Electricity transmission and distribution |
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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. |
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Impact | Long-term energy supply security to support sustained socio-economic growth in Bali |
Project Outcome | |
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Description of Outcome | Increased capacity of Java-Bali power transmission network |
Progress Toward Outcome | ADB approved the partial loan cancellation in December 2018 due to land acquisition issue based on PLN request through MOF and BAPPENAS. The partial cancellation was initially discussed and agreed in a special project administration mission (SPAM) held from March to April 2018 for which a SPAM MOU was signed between ADB and PLN to partially cancel the loan. |
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) | 500 kV transmission networks and 500/150 kV substations:N/A for 500kV substation (Package 2) and transmission lines (Package 1) as loan is partially cancelled for Packages 1 and 2 in December 2018. 150/20 kV substations:Upgrading/extension of 11 substations (Package 3) are completed, adding 660 MVA capacity in 2018.Project management:Completion of land acquisition and resettlement plan by June 2015: LARP has been updated and disclosed.Completion of the construction, testing and commissioning of proposed transmission lines and substations by March 2018: N/A for 500kV substation and transmission lines as loan is partially cancelled for Packages 1 and 2 in December 2018. The construction for Package 3 (upgrading/extension of 11 substations) is completed Completion of Environment Management Plan during construction by March 2018:N/A for EMP as loan is partially cancelled for Packages 1 and 2 in December 2018. 20 PLN staff trained on implementation and monitoring of EMP and LARP by March 2015: 50 PLN staff trained on LARP update in April 2015. No further training is required as loan is partially cancelled for Packages 1 and 2 and construction for Package 3 (upgrading/extension of 11 substations) is category C. |
Geographical Location | Antosari, Bali, East Java, Gilimanuk, Kabupaten Banyuwangi, Kabupaten Jembrana, Kabupaten Probolinggo, Kabupaten Tabanan, Paiton, Segara Rupek, Selat Bali, Watudodol |
Safeguard Categories | |
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Environment | A |
Involuntary Resettlement | A |
Indigenous Peoples | C |
Summary of Environmental and Social Aspects | |
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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. EIA has been uploaded on ADB website. 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) has been 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. Based on the review mission in April 2016, biodiversity study was updated based on which supplementary Environment Impact Assessment (EIA) was prepared based on site-specific impact assessment focusing on the latest biodiversity condition. This is related to the component 3 (crossing towers), funded by KfW. Loan for 500kV transmission line and substation has been partially cancelled. However, ADB continue implementing 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. If, during implementation, additional compensation needs are identified, suitable adjustments will be made in the entitlement matrix in consultation with the affected people. Updated LARP has been disclosed in Q1, 2018. |
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 continued during the implementation of the project where views and concerns of all stakeholders were 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 were consulted on a one-to-one basis through questionnaire surveys during detailed measurement surveys planned in Q1 2015. PLN was guided to establish project communication unit. PLN ensured that essential participation process was 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 has been recruited for assisting PLN to monitor the implementation of stakeholder participation and consultation. |
Business Opportunities | |
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Consulting Services | Project Implementation Consultants and Capacity Building (AWARDED) Independent safeguards monitoring consultants Estimated budget $0.457 million |
Procurement | International Competitive Bidding Package 1, Lot 1, Transmission Lines, estimated cost $79.9 million Package 1, Lot 2, Transmission Lines, estimated cost, $49.5 million Package 2, Lot 1, Extension of Paiton Substation, estimated cost, $27.1million Package 2, Lot 2, New Antosari Substation, estimated cost, $49.7 million Package 3, Upgrading of 150/20 kV Substations (AWARDED) |
Responsible ADB Officer | Palupi, Ira |
Responsible ADB Department | Southeast Asia Department |
Responsible ADB Division | Indonesia Resident Mission |
Executing Agencies |
P.T. Perusahaan Listrik Negara The President Director of the Borrower Jalan Trunojoyo Blok M1/135 Keboyoran Baru, Jakarta 12150 Indonesia |
Timetable | |
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Concept Clearance | 03 Jan 2012 |
Fact Finding | 14 May 2012 to 25 May 2012 |
MRM | 07 Sep 2012 |
Approval | 03 Dec 2013 |
Last Review Mission | - |
Last PDS Update | 29 Mar 2019 |
Loan 3083-INO
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
03 Dec 2013 | 30 Dec 2013 | 29 Sep 2014 | 30 Sep 2019 | - | 09 Jan 2020 |
Financing Plan | Loan Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 385.00 | Cumulative Contract Awards | |||
ADB | 224.00 | 17 Jun 2022 | 17.34 | 0.00 | 100% |
Counterpart | 161.00 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 17 Jun 2022 | 17.34 | 0.00 | 100% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | Satisfactory | Satisfactory | - | Satisfactory | - | Satisfactory |
Loan 8276-INO
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
03 Dec 2013 | 30 Dec 2013 | 29 Sep 2014 | 30 Sep 2019 | - | 09 Jan 2020 |
Financing Plan | Loan Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 25.00 | Cumulative Contract Awards | |||
ADB | 0.00 | 17 Jun 2022 | 0.00 | 1.92 | 100% |
Counterpart | 0.00 | Cumulative Disbursements | |||
Cofinancing | 25.00 | 17 Jun 2022 | 0.00 | 1.92 | 100% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | Satisfactory | Satisfactory | - | Satisfactory | - | Satisfactory |
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.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
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.
Title | Document Type | Document Date |
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Java-Bali 500-Kilovolt Power Transmission Crossing Project: Resettlement Plan | Resettlement Plans | Jan 2018 |
Java-Bali 500-Kilovolt Power Transmission Crossing: Social Monitoring Report (June 2016-December 2017) | Social Monitoring Reports | Dec 2017 |
Java-Bali 500-Kilovolt Power Transmission Crossing: Resettlement Due Diligence Report | Safeguards Due Diligence Reports | Apr 2016 |
Java-Bali 500-Kilovolt Power Transmission Crossing: Environmental Due Diligence Report | Safeguards Due Diligence Reports | Apr 2016 |
Java-Bali 500 kV Power Transmission Crossing Project | Environmental Impact Assessments | Jul 2013 |
Java-Bali 500-Kilovolt Power Transmission Crossing: Land Acquisition and Resettlement Plan | Resettlement Plans | Nov 2012 |
Java-Bali 500 kV Power Transmission Crossing Project | Resettlement Plans | Aug 2012 |
Java-Bali 500 kV Power Transmission Crossing Project | Environmental Impact Assessments | Aug 2012 |
Evaluation Documents See also: Independent Evaluation
Title | Document Type | Document Date |
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Indonesia: Java–Bali 500-Kilovolt Power Transmission Crossing Project | Validations of Project Completion Reports | Nov 2021 |
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
Tenders
Tender Title | Type | Status | Posting Date | Deadline |
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INO: Java Bali 500 kV Power Transmission Crossing Project | Advance Notice | Archived | 08 May 2013 |
Contracts Awarded
No contracts awarded for this project were found
Procurement Plan
Title | Document Type | Document Date |
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Java-Bali 500-Kilovolt Power Transmission Crossing Project: Procurement Plan | Procurement Plans | Dec 2018 |