fbpx 50182-001: Riau Natural Gas Power Project | Asian Development Bank

Indonesia: Riau Natural Gas Power Project

Nonsovereign (Private) Project | 50182-001 Status: Approved

The project entails construction, operation and maintenance of a 275 megawatt (MW) combined-cycle gas-fired power plant (CCGT), located in Tenayan Raya District, Pekanbaru City Regency, Riau Province in the central part of Sumatra, and including a gas pipeline of approximately 40 km, a transmission line of approximately 750 m, and associated facilities.

Project Details

Project Officer
Martinez-Molina, Juan-Pablo Procurement, Portfolio and Financial Management Department Request for information
Country
  • Indonesia
Sector
  • Energy
 
Project Name Riau Natural Gas Power Project
Project Number 50182-001
Borrower/Company PT. Medco Ratch Power Riau
Country Indonesia
Location Kabupaten Pelalawan
Type or Modality of Assistance
3751 Loan Ordinary capital resources USD 147.90 million Approved
8352 Loan Leading Asia's Private Infrastructure Fund (LEAP) USD 20.00 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Energy / Conventional energy generation - Energy utility services

Gender Equity and Mainstreaming Some gender elements
Responsible ADB Department Procurement, Portfolio and Financial Management Department
Responsible ADB Division Portfolio Management Division
Responsible ADB Officer Martinez-Molina, Juan-Pablo
Project Sponsor(s) Medco Power Indonesia
Ratchaburi Electricity Generating Holding Pcl
Description The project entails construction, operation and maintenance of a 275 megawatt (MW) combined-cycle gas-fired power plant (CCGT), located in Tenayan Raya District, Pekanbaru City Regency, Riau Province in the central part of Sumatra, and including a gas pipeline of approximately 40 km, a transmission line of approximately 750 m, and associated facilities.
Objectives and Scope The project entails construction, operation and maintenance of a 275 MW CCGT, and including a gas pipeline of approximately 40 km, a transmission line of approximately 0.75 km, and associated facilities. The project will be developed and implemented under a 20-year power purchase agreement (PPA) with the Indonesian utility company PLN.
Linkage to Country/Regional Strategy Following ADB's Strategy 2030, the project meets this operational priority: tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability. Also, the project supports private sector participation in infrastructure to fill the infrastructure gap and catalyze and mobilize financial resources for development. The project is consistent with ADB's country partnership strategy for Indonesia, 2016 2019 in supporting the expansion of infrastructure and environmentally friendly technologies for energy generation.
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
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 project is a 275 MW combined-cycle gas-fired power plant. The site is currently a palm oil plantation located 3 km south of an existing coal-fired power station and 10 km east of Pekanbaru City. Cooling water is from the Siak River, which will also be used for wastewater discharge and transport of materials. A 750 m long transmission line will be built on agricultural land and a 40 km gas pipeline will be built along existing roads. Preliminary data indicates that it's a non-degraded airshed.
Involuntary Resettlement In compliance with ADB's Safeguard Policy Statement (2009), the project is classified as Category B for involuntary resettlement. The project will not cause involuntary physical displacement but will produce some temporary involuntary economic displacement impacts. The power plant and switchyard will be constructed on a 9.1 ha plot of privately owned land. Purchase of this land by the borrower will be on a voluntary willing seller willing buyer basis on commercial terms at market value. Land required for the pumphouse and water intake area will be leased. Water intake and discharge pipelines will be on government land and laid along existing corridors with easement rights. Land for the three transmission line tower footings will be leased. Land for a temporary jetty required during construction is unoccupied but its use for the project may restrict the access of river users during the eight-month construction period. The gas supply pipeline has been designed to minimize displacement impacts and will be built within an existing road right-of-way and oil palm plantations. It will be built in one 500-meter section per week. A plan to manage temporary involuntary economic displacement impacts through compensation and livelihood restoration measures will be developed by the borrower.
Indigenous Peoples In compliance with ADB's Safeguard Policy Statement (2009), the project is classified as Category C for Indigenous Peoples. The project's environmental and social impact assessment found no distinct and vulnerable Indigenous Peoples groups in the project area.
Stakeholder Communication, Participation, and Consultation A stakeholder engagement plan has been in place throughout the project impact assessment process and will be further enhanced for implementation during project construction and operation phases. Consultation with affected people, government, and civil society stakeholders has been undertaken in accordance with Indonesian law and in accordance with ADB's Safeguard Policy Statement (2009).
Timetable for assistance design, processing and implementation
Concept Clearance 08 Jun 2016
Credit Committee Meeting 25 Oct 2018
Approval -
Last PDS Update 12 Jun 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
Riau Natural Gas Power Project: Report and Recommendation of the President Reports and Recommendations of the President Nov 2018

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
Riau Natural Gas Power Project: Environmental and Social Impact Assessment Environment and Social Impact Assessments Nov 2018
Riau Natural Gas Power Project: Draft Resettlement Plan Resettlement Plans Nov 2018
Riau Natural Gas Power Project: Environmental and Social Impact Assessment Environment and Social Impact Assessments May 2018

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.