Indonesia : SARULLA GEOTHERMAL POWER GENERATION PROJECT
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/Economy
Indonesia -
Modality
-
Sector
- Energy
- Project Name
- SARULLA GEOTHERMAL POWER GENERATION PROJECT
- Project Number
- 42916-014
- Borrower / Company
- SARULLA OPERATIONS LIMITED
- Country / Economy
- Indonesia
- Location
- Perusahaan Listrik Negara , Kabupaten Tapanuli Selatan, Kabupaten Tapanuli Utara, Namora-I-Langit, Silangkitang
- Type or Modality of Assistance
Approval Number Facility Fund Source Amount Status 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
- 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
- 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.
Contact
- Responsible ADB Officer
- Nath, Kiron
- Responsible ADB Division
- Portfolio Management Division, PSOD
- Responsible ADB Department
- Private Sector Operations Department
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
- 28 Aug 2023
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: Biodiversity Offset Management Plan | Documents Produced Under Grant/Loans/TA | Oct 2020 |
| 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.
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.
Requests for information may also be directed to the InfoUnit.
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