Indonesia : Geothermal Power Development Project
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.
Project Details
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Project Officer
Tharakan, Pradeep J.
Southeast Asia Department
Request for information -
Country/Economy
Indonesia -
Modality
-
Sector
- Energy
Project Name | Geothermal Power Development Project | ||||||||
Project Number | 43249-012 | ||||||||
Country / Economy | Indonesia |
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Project Status | Closed | ||||||||
Project Type / Modality of Assistance | Technical Assistance |
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Source of Funding / Amount |
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Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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Drivers of Change | Gender Equity and Mainstreaming |
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Sector / Subsector | Energy / Energy sector development and institutional reform - Renewable energy generation - geothermal |
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Gender | 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. |
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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 | |
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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 |
Safeguard Categories | |
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Environment | |
Involuntary Resettlement | B |
Indigenous Peoples | C |
Summary of Environmental and Social Aspects | |
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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 | |
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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 | Tharakan, Pradeep J. |
Responsible ADB Department | Southeast Asia Department |
Responsible ADB Division | Energy Division, SERD |
Executing Agencies |
National Development Planning Agency (BAPPENAS) |
Timetable | |
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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 | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
20 Aug 2010 | 16 Nov 2010 | 16 Nov 2010 | 31 Jul 2011 | 30 Jun 2014 | 02 Oct 2014 |
Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
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ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
Gov | Beneficiaries | Project Sponsor | Others | |||||
0.00 | 1,725,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,725,000.00 | 17 Jun 2022 | 1,227,834.29 |
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.
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Title | Document Type | Document Date |
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Geothermal Power Development Project: Technical Assistance Completion Report | TA Completion Reports | May 2015 |
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.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
Title | Document Type | Document Date |
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Unlocking Indonesia's Geothermal Potential | Reports | Apr 2015 |
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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