Indonesia : Geothermal Power Development Project

Sovereign Project | 43249-012

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

  • 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
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7583-INO: Geothermal Power Development Project
Government of Australia US$ 1.50 million
TA 7583-INO: Geothermal Power Development Project (Supplementary)
Government of Australia US$ 225,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Sector / Subsector

Energy / Energy sector development and institutional reform - Renewable energy generation - geothermal

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.

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
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
Environment
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
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
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
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
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
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.

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
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
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.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.