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Indonesia: Eastern Indonesia Renewable Energy Project (Phase 2)

Nonsovereign (Private) Project | 51209-002 Status: Approved

Phase 2 of the project will construct, operate and maintain a 21 MW solar power plant in Likupang (North Sulawesi) and three 7 MW solar power plants, in Pringgabaya, Selong, and Sengkol (Lombok, West Nusa Tenggara).

Project Details

Project Officer
Martinez-Molina, Juan-Pablo Private Sector Operations Department Request for information
Country
  • Indonesia
Sector
  • Energy
 
Project Name Eastern Indonesia Renewable Energy Project (Phase 2)
Project Number 51209-002
Borrower/Company PT Infrastruktur Terbarukan Adhiguna
PT Infrastruktur Terbarukan Buana
PT Infrastruktur Terbarukan Cemerlang
PT Infrastruktur Terbarukan Lestari
Country Indonesia
Location Likupang, Lombok
Type or Modality of Assistance
3653 Loan Ordinary capital resources USD 5.97 million Approved
3654 Loan Ordinary capital resources USD 2.20 million Approved
3655 Loan Ordinary capital resources USD 2.19 million Approved
3656 Loan Ordinary capital resources USD 2.13 million Approved
8358 Loan Leading Asia's Private Infrastructure Fund (LEAP) USD 5.78 million Approved
8359 Loan Canadian Climate Fund for the Private Sector in Asia II (CFPS II) USD 21.90 million Approved
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Energy / Renewable energy generation - solar

Gender Equity and Mainstreaming Some gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 2
Responsible ADB Officer Martinez-Molina, Juan-Pablo
Project Sponsor(s) Equis Group
PT Global Pasifik Terbarukan
PT Infrastruktur Terbarukan Mandiri
Redaya Energi Solar, Pte. Ltd.
Description Phase 2 of the project will construct, operate and maintain a 21 MW solar power plant in Likupang (North Sulawesi) and three 7 MW solar power plants, in Pringgabaya, Selong, and Sengkol (Lombok, West Nusa Tenggara).
Objectives and Scope

The Government of Indonesia has set ambitious targets to increase the share of energy supplied from renewable energy from 12% in 2013 to 23% in 2025. Therefore, the Ministry of Energy and Mineral plans to increase the capacity of grid power generation through new and renewable energy to 45 GW by 2025. The Project contributes to the acceleration and expansion of private sector investments in clean energy infrastructure in Indonesia.

The Project supports a leading private sector player (Equis Group) in its contributions towards this goal. The concessional financing from the Canadian Climate Fund for the Private Sector in Asia II (CFPS II) was needed to assist with implementation of the first utility scale solar power projects in Indonesia and to help the project sponsors to address its first mover costs and disadvantages as well as overcome various technical and regulatory challenges.

Linkage to Country/Regional Strategy The project supports private sector infrastructure and environment, two of the five core pillars of the ADB strategy as reaffirmed by the Midterm Review of Strategy 2020. The project is consistent with the country partnership strategy for Indonesia, 2016-2019 by supporting the expansion of infrastructure and environment-friendly technologies for clean energy generation. The project is consistent with ADB's Energy Policy, which states that support for renewable energy projects will be prioritized and broadened.
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects To meet Safeguard Policy Statement environment category B project requirements, Equis Energy has prepared environmental and social impact assessments for the four solar power subprojects including power transmission lines. It also prepared an environmental management plan outlining appropriate measures to avoid, minimize, and mitigate any impacts. Most of the project components, such as the solar panels and transmission line poles, will be situated on rain-fed dry agricultural land historically planted with corn, cassava, and beans. None of the four solar subprojects or their surrounding areas are located in or near an environmentally sensitive area.
Involuntary Resettlement The Project is classified as category C for involuntary resettlements. The SPVs procured project land using a willing buyer, willing seller process without availing themselves of the provisions of the National Land Agency Law No. 2/2012 on land procurement for development in the public interest. Land acquisition did not result in involuntary resettlement because of physical or economic displacement.
Indigenous Peoples The Project is classified as category C for indigenous peoples. The majority of the subproject area population in North Sulawesi belong to the Sainghe Talaud ethnic group, a subgroup of the Minahasa which is the dominant ethnic group in the province. In Lombok, West Nusa Tenggara, 80% of the subproject area population originated from the Sasak Tribe, the dominant ethnic group in the area. The subproject areas are not situated in or overlapping any traditionally owned land or lands with customary rights. The ethnic groups residing in the subproject area villages are not separate from mainstream North Sulawesi and West Nusa Tenggara society, and are neither distinct nor vulnerable.
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 05 Sep 2017
Credit Committee Meeting 12 Mar 2018
Approval 11 Apr 2018
Last PDS Update 12 Jun 2019

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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

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Related Publications

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