Asahan 1 Hydroelectric Power Plant (MIGA-3643)

Countries
  • Indonesia
Where the impacts of the investment may be experienced.
Specific Location
North Sumatra
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
  • Multilateral Investment Guarantee Agency (MIGA)
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
May 24, 2018
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
To be determined
The holder of the loan, grant, or other investment.
Sectors
  • Energy
  • Hydropower
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 160.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Other Related Projects
Primary Source

Original disclosure @ MIGA website

Updated in EWS Jul 12, 2018

Disclosed by Bank Apr 26, 2018


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Project Description

According to MIGA's summary, the non-shareholder loans from lenders yet to be identified, to PT Bajradaya Sentranusa (BDSN), an independent power producer, to refinance the Asahan 1 Hydroelectric Power Plant in Indonesia through an IFC B Loan. BDSN has applied on behalf of lenders yet to be identified, for a MIGA guarantee of up to US$ 160 million for a period of 17 years against the risks of currency inconvertibility and transfer restriction, expropriation, war and civil disturbance, and breach of contract.

The Project is a fully operational 180MW run of river hydroelectric power plant completed in 2010, and selling electricity to PT Perusahaan Listrik Negara (Persero) (PLN), the national utility company, pursuant to a Power Purchase Agreement expiring on December 31, 2040 on a take-or-pay basis. The Project is located 25 km downstream of Lake Toba on the Asahan River in North Sumatra, and 130 km southeast of the city of Medan.

Investment Description
  • Multilateral Investment Guarantee Agency (MIGA)
Private Actors

BDSN is owned by Fareast Green Energy Ltd, PT Pembangkitan Jawa Bali (PJB) a subsidiary of PLN, and IFC, among others.

Contact Information

ACCOUNTABILITY MECHANISM OF MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/