Muara Laboh Geothermal Power Project Stage 2 (ADB-57311-001)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
Countries
  • Indonesia
Geographic location where the impacts of the investment may be experienced.
Specific Location
South Solok Regency
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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Aug 19, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
PT Supreme Energy Muara Laboh
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 89.70 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Campaign Documents
Other Related Projects
Primary Source

Original disclosure @ ADB website

Updated in EWS Oct 18, 2024

Disclosed by Bank Jul 16, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project will (i) develop geothermal steam resources through production and injection facilities in the Liki Pinangawan Muara Laboh concession area; and (ii) construct, operate, and maintain of a new 82.7 megawatt (MW) net capacity geothermal power plant. The new plant will operate in conjunction with the existing power plant financed by ADB. The two plants will aggregate to a total net capacity of 168.7 MW.

The geothermal development area is located in 22,110 Ha of Liki Pinangawan Muara Laboh Geothermal Working Area (WKP), South Solok Regency, West Sumatra Province. Based on the reserve assessment, WKP Liki Pinangawan Muara Laboh has a prospect of geothermal reserves estimated up to 250 MW.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

In compliance with ADB's Safeguard Policy Statement (2009), the project is classified as category B for environment. Most Stage 2 project components will be situated within the existing Stage 1 area or on previously disturbed land. The construction of the additional pipeline network system will mostly run alongside existing road facilities. Additionally, the project will not require an additional transmission line as it will utilize the existing 3.2km long transmission line of Stage 1 that connects the SEML switchyard to the PLN substation. The project site is directly adjacent to Kerinci Seblat National Park. 

In compliance with ADB's 2009 Safeguard Policy Statement (2009), the project is classified as category B for involuntary resettlement. The project site is directly adjacent to Kerinci Seblat National Park and a protected forest. Although the project is not in a protected area, the critical habitat assessment designates the project area (including Muara Laboh Stage 1) as critical habitat.

In compliance with ADB's 2009 Safeguard Policy Statement (2009), the project is classified as category C for indigenous peoples. The project area is mainly occupied by the Minang ethnic group, however, they do not maintain collective attachments or claim the project area as their ancestral territories. The land procured are not part of any traditional or customary rights land.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Loan (Ordinary capital resources): USD 40.00 million

Loan (Australia): USD 15.00 million

B-Loan / CFS (Other): USD 34.70 million

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

PT Supreme Energy Muara Laboh (SEML), a joint venture of PT Supreme Energy, INPEX, and Sumitomo Corporation, is an independent power producer of the Muara Laboh Geothermal Power Plant located in Pauh Duo District, Solok Selatan Regency, Western Sumatra Province.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - PT Supreme Energy Muara Laboh Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

P.T. Supreme Energy [ML]
Menara Sentraya – 23rd Floor
Jl. Iskandarsyah Raya No. 1A, Kebayoran Baru
Jakarta 12160, Indonesia
Phone: +62-21-2788 2222
Fax: +62-21-2788 2333
www.supreme-energy.com

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

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.

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How it works