fbpx 42916-014: SARULLA GEOTHERMAL POWER GENERATION PROJECT | Asian Development Bank

Indonesia: SARULLA GEOTHERMAL POWER GENERATION PROJECT

Nonsovereign (Private) Project | 42916-014 Status: Active

SARULLA GEOTHERMAL POWER GENERATION PROJECT

The project will develop the steam resources in the Sarulla concession area and construct, operate, and maintain three geothermal power generation units with a total capacity of about 320 megawatts (MW). The units will be powered by steam from production and injection facilities at the Silangkitang and Namora-I-Langit reservoirs, located in North Sumatra. The project will be developed and implemented under a 30-year energy sales contract (ESC) with PLN, a 30-year joint operating contract (JOC) with Pertamina Geothermal Energy (PGE) and a 20-year guarantee from the Ministry of Finance, as stipulated under a business viability guarantee letter (BVGL).

Project Details

Project Officer
Nath, Kiron Private Sector Operations Department Request for information
Country
  • Indonesia
Sector
  • Energy
 
Project Name SARULLA GEOTHERMAL POWER GENERATION PROJECT
Project Number 42916-014
Borrower/Company SARULLA OPERATIONS LIMITED
Country Indonesia
Location Perusahaan Listrik Negara , Kabupaten Tapanuli Selatan, Kabupaten Tapanuli Utara, Namora-I-Langit, Silangkitang
Type or Modality of Assistance
3089 Loan Ordinary capital resources USD 250.00 million Committed
8277 Loan Clean Technology Fund USD 80.00 million Committed
8278 Loan Canadian Climate Fund for the Private Sector in Asia I USD 20.00 million Committed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Energy / Renewable energy generation - geothermal

Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Nath, Kiron
Project Sponsor(s) Inpex Corporation
Itochu Corporation
KYUSHU ELECTRIC POWER COMPANY
Medco Power Indonesia
Ormat International
Description

SARULLA GEOTHERMAL POWER GENERATION PROJECT

The project will develop the steam resources in the Sarulla concession area and construct, operate, and maintain three geothermal power generation units with a total capacity of about 320 megawatts (MW). The units will be powered by steam from production and injection facilities at the Silangkitang and Namora-I-Langit reservoirs, located in North Sumatra. The project will be developed and implemented under a 30-year energy sales contract (ESC) with PLN, a 30-year joint operating contract (JOC) with Pertamina Geothermal Energy (PGE) and a 20-year guarantee from the Ministry of Finance, as stipulated under a business viability guarantee letter (BVGL).

Objectives and Scope The project will help the government advance towards its renewable energy and climate change mitigation goals. Successful implementation of the project and deployment of concessional cofinacing will lead to: (i) increased geothermal power generation in Indonesia; (ii) more private sector investment in the geothermal sector; and (iii) increased electrification rate in Indonesia. Concessional loan from Canada was used to help catalyze and leverage more private sector investment for climate change mitigation through geothermal sector growth.
Status of Operation/Construction Construction completed. Project is operational.
Linkage to Country/Regional Strategy

The Project complies with ADB's energy policy supports the development of clean energy with private sector participation. The Project, which is to generate electric power from renewable resources, will reduce greenhouse gas emission from the use of fossil fuels for power generation, to mitigate climate change.

The Project is in line with ADB's Country Strategy and Program for Indonesia 2006-2009, emphasizing physical infrastructure development with private sector investment, strengthening environment and natural resource management, and reducing pollution. As the country's largest single-contract geothermal power project upon completion, the Project is also consistent with ADB's private sector operations in Indonesia, which highlights the development and financing of important infrastructure projects in energy with strong demonstration effect.

Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples A
Summary of Environmental and Social Aspects
Environmental Aspects In compliance with ADB's Safeguard Policy Statement (2009), the project is classified as category A for environment. The potential environmental and social impacts of the project have been identified and effective measures to avoid, minimize, mitigate, and compensate for the adverse impacts are incorporated in the safeguard reports and plans. SOL's institutional capacity to manage the project's social and environmental impacts is deemed adequate. SOL has prepared an environmental and social impact assessment addendum based on (i) supplemental environmental studies and investigation;19 and (ii) an environmental compliance audit report of existing facilities, including a time-bound corrective action plan to meet the Safeguard Policy Statement requirements. An audit of prior land acquisition was conducted and the corrective action plan was prepared to address potential economic impacts on landowners.
Involuntary Resettlement In compliance with ADB's Safeguard Policy Statement (2009), the project is classified as category A for involuntary resettlement. A resettlement plan was prepared to mitigate any potential economic displacement.
Indigenous Peoples In compliance with ADB's Safeguard Policy Statement (2009), the project is classified as category A for indigenous peoples. An indigenous peoples plan has been prepared to mitigate impacts on members of the Batak ethnic group and to maximize project benefits for affected communities.
Stakeholder Communication, Participation, and Consultation Key community concerns raised during consultations included EHS, employment, corporate social responsibility opportunities, and land acquisition impacts. SOL is committed to developing and implementing an EHS management system in line with applicable national legislation and industry codes and standards. Through a contractors' safety management system, SOL has also committed to accord equal priority in the protection of its contractors, vendors, customers, and company employees.
Timetable for assistance design, processing and implementation
Concept Clearance 15 Jul 2013
Credit Committee Meeting 14 Oct 2013
Approval 05 Dec 2013
PDS Creation Date 15 Jun 2010
Last PDS Update 18 Mar 2019

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.

Title Document Type Document Date
Sarulla Geothermal Power Generation Project Reports and Recommendations of the President Nov 2013
PROYEK PEMBANGKIT LISTRIK PANAS BUMI SARULLA: Lembar Data Proyek Translated PDS Sep 2013

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
Sarulla Geothermal Power Development Project: On-Site Forest Restoration Plan- Environmental Management Plan Environmental Management Plans Jan 2019
Sarulla Geothermal Power Generation Project: Safeguards and Social Monitoring Report (July-December 2017) Environmental and Social Monitoring Reports Sep 2018
Sarulla Geothermal Power Generation Project: Semi-annual Safeguards and Social Monitoring Report (January-June 2016) Environmental and Social Monitoring Reports Aug 2018
Sarulla Geothermal Power Generation Project: Safeguards and Social Monitoring Report (January-June 2018) Environmental and Social Monitoring Reports Jun 2018
Sarulla Geothermal Power: Safeguards and Social Monitoring Report (July-December 2016) Environmental and Social Monitoring Reports Jun 2018
Sarulla Geothermal Power Generation Project: Supplementary Environmental and Social Impact Assessment Environment and Social Impact Assessments May 2018
Sarulla Geothermal Power: Safeguards and Social Monitoring Report (January-June 2017) Environmental and Social Monitoring Reports Jun 2017
Sarulla Geothermal Power Generation Project: Semi-annual Safeguards and Social Monitoring Report (July-December 2015) Environmental and Social Monitoring Reports Apr 2017
Sarulla Geothermal Power Generation Project: Supplementary Land Acquisition Plan Resettlement Plans Nov 2016
Sarulla Geothermal Power Generation Project: Indigenous Peoples Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Nov 2015
Sarulla Geothermal Power Generation Project: Semi-annual Safeguards and Social Monitoring Report (January-June 2015) Environmental and Social Monitoring Reports Jul 2015
Sarulla Geothermal Power Generation Project: Semi-annual Safeguards and Social Monitoring Report (January-June 2014) Environmental and Social Monitoring Reports Apr 2015
Sarulla Geothermal Power Generation Project: Semi-annual Safeguards and Social Monitoring Report (July-December 2014) Environmental and Social Monitoring Reports Apr 2015
Sarulla Geothermal Power Generation Project: Social Safeguards Compliance Audit Report and Corrective Action Plan Social Compliance Audit Report Feb 2015
Sarulla Geothermal Power Generation Project: Resettlement Plan Resettlement Plans Feb 2015
Sarulla Geothermal Power Generation Project: On-site Forest Restoration Plan Environmental Management Plans Jan 2015
Sarulla Geothermal Power Generation Project: Biodiversity Action Plan and Biodiversity Off-set Management Plan Environmental Management Plans Jan 2015
Sarulla Geothermal Power Development Project Resettlement Plans Jan 2014
Sarulla Geothermal Power Generation Project: Environmental, Social and Health Impact Assessment Addendum Environment and Social Impact Assessments Oct 2013
Sarulla Geothermal Power Development Project Indigenous Peoples Plans/Indigenous Peoples Development Plans Oct 2013
Sarulla Geothermal Power Generation Project: Environmental Compliance and Audit Report and Corrective Action Plan Environment Compliance Audit Reports Oct 2013
Sarulla Geothermal Power Development Project Resettlement Plans Oct 2013
Sarulla Geothermal Power Development Project: Social Safeguards Compliance Audit Report and Corrective Action Plan Social Compliance Audit Report Oct 2013
Sarulla Geothermal Power Generation Project: EIA Environmental Monitoring Plan Environmental Impact Assessments Aug 2010
Sarulla Geothermal Power Generation Project: EIA Environmental Management Plan Environmental Impact Assessments Aug 2009
Sarulla Geothermal Power Generation Project: EIA Executive summary Environmental Impact Assessments Aug 2009
Sarulla Geothermal Power Generation Project: EIA Environmental Impact Statement Environmental Impact Assessments Aug 2009

Evaluation Documents See also: Independent Evaluation

None currently available.

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.

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