fbpx 47937-001: Rantau Dedap Geothermal Power Project (Phase I) | Asian Development Bank

Indonesia: Rantau Dedap Geothermal Power Project (Phase I)

Nonsovereign (Private) Project | 47937-001 Status: Closed

The proposed 240 MW Rantau Dedap Geothermal Power Project (Phase I) is located in South Sumatra, Indonesia. Phase I constitutes the geothermal resource exploration and drilling phase of project development. Steamfield development and power plant construction will be considered in subsequent phases. The Borrower will be PT. Supreme Energy Rantau Dedap, an Indonesian project company owned by GDF Suez (rated A by S&P and A2 by Moody's), Marubeni Corporation (rated BBB by S&P and Baa2 by Moody's) and PT. Supreme Energy.

Project Details

Project Officer
Tonizzo, Martina Private Sector Operations Department Request for information
Country
  • Indonesia
Sector
  • Energy
 
Project Name Rantau Dedap Geothermal Power Project (Phase I)
Project Number 47937-001
Borrower/Company PT Supreme Energy Rantau Dedap
Country Indonesia
Location
Type or Modality of Assistance
8283 Loan Clean Technology Fund USD 50.00 million Closed
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Energy / Energy sector development and institutional reform

Gender Equity and Mainstreaming No gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 2
Responsible ADB Officer Tonizzo, Martina
Project Sponsor(s) GDF SUEZ
Marubeni Corporation
PT Supreme Energy
Description The proposed 240 MW Rantau Dedap Geothermal Power Project (Phase I) is located in South Sumatra, Indonesia. Phase I constitutes the geothermal resource exploration and drilling phase of project development. Steamfield development and power plant construction will be considered in subsequent phases. The Borrower will be PT. Supreme Energy Rantau Dedap, an Indonesian project company owned by GDF Suez (rated A by S&P and A2 by Moody's), Marubeni Corporation (rated BBB by S&P and Baa2 by Moody's) and PT. Supreme Energy.
Objectives and Scope

The proposed 240 MW Rantau Dedap Geothermal Development Project (Phase 1) is an ideal opportunity for ADB and Clean Technology Fund (CTF) to play an instrumental role in developing the next generation of greenfield geothermal projects in Indonesia through the pilot-testing of an innovative, early stage financing product. The project is located southwest of Palembang in South Sumatera, Indonesia. Phase 1 constitutes the initial geothermal resource exploration, involving the drilling of wells to better ascertain steam reservoir characteristics and capacity. A separate Phase 2 project will follow to complete further drilling of steam production and injection wells and power plant construction. Phase 2 will be financed through a traditional limited-recourse, long-term project financing structure.

The project has been prioritized under PLN's long-term power development plan and the second 10,000 MW accelerated development program launched by the Government of Indonesia in 2010 (Fast Track Program 2). Phase 1 development has commenced under the framework of a 35-year geothermal mining license (IUP), a 30-year Power Purchase Agreement (PPA) with PLN and an approximately 20-year guarantee from the Ministry of Finance, as stipulated under a Business Viability Guarantee Letter (BVGL) signed in 2012. Overall, the project benefits from strong contractual arrangements with creditworthy parties including the Government of Indonesia, rated BB+ by Standard & Poor's (S&P) and Baa3 by Moody's, and PLN, rated BB by S&P and Baa3 by Moody's.

Linkage to Country/Regional Strategy

The project is aligned with ADB''s country partnership strategy for Indonesia for 2012- 2014. It supports the strategy''s second pillar of environmental sustainability through climate change mitigation, which prioritizes projects designed to promote renewable energy and energy efficiency. The project also supports the government's long-term objective under the endorsed CTF investment plan for Indonesia to deploy CTF resources to leverage commercial financing of geothermal projects. The CTF plan complements recent ADB technical assistance to Ministry of Energy and Mineral Resource (MEMR) and PLN for renewable energy development (including geothermal resources) through its public sector operations, as well as other ADB initiatives to review and revise geothermal tariff incentive schemes and improve government geothermal risk mitigation mechanisms.

The project is consistent with ADB's Energy Policy, which emphasizes investment in energy efficiency, renewable energy, and wider access to energy. Though ADB reached its internal goal of $2 billion per annum in clean energy in 2011, the project helps sustain that level of investment in 2014 and further bolster the private sector role in catalyzing additional resources in the renewable energy sector.

Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects Environment and social safeguards. In compliance with ADB's Safeguard Policy Statement (2009) (SPS), the project is classified category B for environmental impact, category A for involuntary resettlement and category B for indigenous peoples. 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 have been incorporated in the safeguard reports and plans. The institutional capacity and commitment of the Borrower to manage the project's social and environmental impacts are deemed adequate. Information disclosure and consultations with stakeholders and affected communities have been conducted in accordance with ADB requirements.
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 03 Feb 2014
Credit Committee Meeting 14 Apr 2014
Approval 04 Jun 2014
PDS Creation Date 14 Apr 2014
Last PDS Update 18 May 2018

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
Rantau Dedap Geothermal Development Project (Phase 1) Initial Poverty and Social Analysis Jun 2014
Rantau Dedap Geothermal Development Project (Phase 1): Report and Recommendation of the President Reports and Recommendations of the President Jun 2014

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.


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