Indonesia: PLN East Java & Bali Power Distribution Strengthening Project (AIIB-000292)

Countries
  • Indonesia
Where the impacts of the investment may be experienced.
Specific Location
East Java and Bali regions
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Nov 1, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Republic of Indonesia
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 500.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 500.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 1,050.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ AIIB website

Updated in EWS Nov 29, 2019

Disclosed by Bank Jul 1, 2019


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Project Description

According to the bank document, the Project will contribute to the achievement of the first five years of the development plan of PT. Perusahaan Listrik Negara (Persero, the state electricity company) (“PLN”) for the East Java and Bali regions under the 2019-2028 Electricity Business Plan (RUPTL), consisting of:

a) construction of 17,000 km of medium-voltage distribution lines

b) installation of 1,500 MVA of medium-voltage distribution transformers

The project outcome is expected to improve access to and quality of power services for the power distribution network in East Java and Bali.

Investment Description
  • Asian Infrastructure Investment Bank (AIIB)

Component 1 - Construction of 17,000 km medium-voltage distribution lines (Budget: US$ 480 million)

AIIB fund US$ 230 million

PLN fund US$ 250 million

Component 2 - Installation of 1,500 MVA medium voltage distribution transformers (Budget: US$ 570 million)

AIIB fund US$ 270 million

PLN fund US$ 300 million

 

Private Actors
Contact Information

1/ AIIB Contact:

Name: Hasto Kristiyono

Title: Senior Private Sector Operations Specialist

Email: hasto.kristiyono@aiib.org

2/ Borrower Contact:

Name: Syofvi F. Roekman

Title: Director of Corporate Planning

Email: syofvi.roekman@pln.co.id

ACCOUNTABILITY MECHANISM OF AIIB

In addition, the AIIB has a Bank Oversight Mechanism. According to AIIB's policies, "people who believe they have been or are likely to be adversely affected by a failure of the Bank to implement the ESP may also submit complaints to the Bank's oversight mechanism in accordance with the policies and procedures to be established by the Bank for such mechanism." However, at the time of writing, it is unclear what the exact scope and function of this Oversight Mechanism will be.

For information on how to make submissions to the PPM, please visit the PPM web page: https://www.aiib.org/en/policies-strategies/operational-policies/policy-on-the-project-affected-mechanism.html