Muara Laboh Geothermal Power Project (ADB-50156-001)

Regions
  • East Asia and Pacific
Where the impacts of the investment may be experienced.
Countries
  • Indonesia
Where the impacts of the investment may be experienced.
Specific Location
West 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
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
A
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
Dec 7, 2016
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
PT Supreme Energy Muara Laboh
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)
$ 70.00 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)
$ 590.90 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 @ ADB website

Updated in EWS Oct 13, 2018

Disclosed by Bank Sep 7, 2016


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Project Description

According to ADB website, the project will develop geothermal steam resources through production and injection facilities in the Liki Pinangawan Muaralaboh concession area and construct, operate, and maintain a single power generation unit with a total capacity of approximately 80 megawatts (MW). The concession is located in the South Solok Regency, 150 kilometers (km) southeast of Padang, West Sumatra. The project will be developed and implemented under a 30-year power purchase agreement (PPA) with PLN (the off-taker) and a 20-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 build 80 km of transmission lines from the plant site to two 150 kilovolt (kV) substations near Muara Laboh and Sungai Rumbai. The substations will connect power from the generation unit to the Sumatra grid through an existing 275 kV transmission line.

Investment Description
  • Asian Development Bank (ADB)

Cofinancing
Clean Technology Fund US$ 19.25 million
Leading Asia's Private Sector Infrastructure Fund US$ 20 million

Contact Information

Project Officer: Masayuki Kanda
Private Sector Operations Department, ADB
No contact information provided at the time of disclosure.

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main