The project will develop geothermal steam resources through production and injection facilities and construct, operate, and maintain a power generation plant with a total capacity of approximately 90 megawatts (MW) in South Sumatra.
|Project Name||Rantau Dedap Geothermal Power Project (Phase 2)|
|Borrower/Company||PT Supreme Energy Rantau Dedap
|Type or Modality of Assistance||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Partnerships
Private sector development
|Sector / Subsector||
Energy / Renewable energy generation - geothermal
|Gender Equity and Mainstreaming||Some gender elements|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Portfolio Management Division, PSOD|
|Responsible ADB Officer||Nath, Kiron|
|Project Sponsor(s)||Engie Electrabel SA
PT Supreme Energy
Tohoku Electric Power
|Description||The project will develop geothermal steam resources through production and injection facilities and construct, operate, and maintain a power generation plant with a total capacity of approximately 90 megawatts (MW) in South Sumatra.|
|Objectives and Scope||
The project will develop geothermal steam resources through production and injection facilities and construct, operate, and maintain a power generation plant with a total capacity of approximately 90 megawatts (MW). The project is located in the Muara Enim, Rahat Regencies and Pagar Alam City, approximately 290 kilometers (km) from Palembang, the capital city of South Sumatra Province. The project will be developed and implemented under a 30-year power purchase agreement (PPA) with PLN (the off-taker) and a 15-year support from the Ministry
of Finance, as stipulated under a business viability guarantee letter (BVGL). It is intended for base load operation. PLN will develop a 40 km of 150 kV transmission line from the plant site to the 150 kilovolt (kV) Lumut Balai substation.
|Linkage to Country/Regional Strategy||
The project supports private sector participation in infrastructure and environment, two of the five core pillars of ADB's long-term strategy as reaffirmed by the Midterm Review of Strategy 2020. The project is consistent with ADB's country partnership strategy for Indonesia, 2016 2019 in supporting the expansion of infrastructure and environment-friendly technologies for clean energy generation. It contributes to the objectives of Indonesia's National Energy Plan and to the 2015 commitment to the Paris Agreement under the United Nations Framework Convention on Climate Change.
The project is also consistent with ADB's Energy Policy, which states that support for renewable energy projects will be prioritized and broadened. The project fully aligns with ADB's energy sector strategy for Indonesia, which has the following main pillars: (i) undertake sector policy reform to make access to energy more sustainable and inclusive; (ii) strengthen the reach, reliability, and efficiency of the nation's electricity grid; and (iii) enable the greater use of clean energy.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The exploration program commenced in 2012 and construction of the access roads and well pads is advanced. The implementation of effective measures to avoid, minimize, mitigate, and compensate for the adverse impacts started in the exploration phase and further measures to be implemented during construction and operations are reflected in the safeguard reports and plans, and include a biodiversity action plan to ensure no net loss of biodiversity. The institutional capacity and commitment of SERD to manage the projects social and environmental impacts are deemed adequate.|
|Involuntary Resettlement||SERD acquired a total of 124.5 ha of lands through negotiated settlements from 157 project affected households for the project between 2011 and 2017. All lands required for the project have been acquired, and no additional land acquisition is expected. The social safeguards compliance audit confirms that (i) no households experienced physical displacement of housing or commercial assets and (ii) all project-affected households have been compensated according to negotiated compensation rates for land, crops, assets, and structures, (iii) affected households are given opportunities for skills development as part of the implementation of an Integrated Social Development Program (ISDP), apart from a prioritization for employment created by the project, and (iv) no outstanding grievances or complaints related to land procurement and compensation exists for lands acquired by SERD till date for the project.|
|Indigenous Peoples||Semendos form the majority of the population in the project area. There are no traditional or customary lands within the proposed footprints of the project facilities. The Semendos in the project area are fully incorporated into the legal, pollical, social, economic and administrative systems of Sumatra. The findings of the social safeguards compliance audit confirm that the Semendos in the project area do not qualify to be considered as a distinct, vulnerable, social and cultural group. Indigenous Peoples safeguards are therefore not triggered.|
|Stakeholder Communication, Participation, and Consultation||A Stakeholder Engagement Plan has been developed. Consultations have been conducted by SERD since 2011 in the project area as part of the exploration phase and will be continued during the development and operation phases of the project. A grievance mechanism has been established to address any grievances of stakeholders including the local communities and affected persons.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||13 Dec 2016|
|Credit Committee Meeting||07 Feb 2018|
|Approval||23 Mar 2018|
|Last PDS Update||23 Jan 2020|
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|
|Rantau Dedap Geothermal Power Project (Phase 2): Report and Recommendation of the President||Reports and Recommendations of the President||Feb 2018|
|Rantau Dedap Geothermal Power Project (Phase 2): Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Feb 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.
Evaluation Documents See also: Independent Evaluation
None currently available.
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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ADB Commits $175.3 Million Geothermal Energy Investment in Western IndonesiaADB today signed a loan agreement of approximately $175.3 million with PT Supreme Energy Rantau Dedap (SERD) to help finance the second phase of the company's geothermal power project in South Sumatra Province, Indonesia.