Riau IPP (IFC-39879)

Countries
  • Indonesia
Geographic location where the impacts of the investment may be experienced.
Specific Location
Industri Tenayan Sub-District, Pekanbaru City, Riau Province, Sumatera
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
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
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
Sep 21, 2018
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 MEDCO RATCH POWER RIAU
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)
$ 50.00 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.
Project Cost (USD)
$ 287.00 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Feb 28, 2019

Disclosed by Bank Jul 23, 2018

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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 IFC, "the proposed project is the development, construction and operation of a 275 megawatt (MW) combined cycle gas turbine power plant and about 40-kilometer gas pipeline in Riau Province, Sumatera, Indonesia. The Project has secured a 20-year power purchase agreement from the national electricity utility, PT Perusahaan Listrik Negara (PLN) and it is anticipated that the Project will generate about 1.4 TWh of electricity annually."

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

IFC stated that the project was awarded to a consortium of PT Medco Power Indonesia (51%) and Ratchaburi Electricity Generating Holding Public Company Limited (49%), to implement through Medco Ratch Power Riau (MRPR).

PT Medco Power Indonesia (MPI) is a developer and operator of small to medium size gas-fired, geothermal and mini-hydro power projects. It was established in 2004 and is owned 88.63% by PT Medco Energi Internasional, Tbk, and 11.37% is owned by IFC.

Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) acts as a holding company and accounts for a total installed capacity of about 6.6 GW operating and 952 MW under development contributing about 18% of Thailand’s generation capacity. About 80% of RATCH’s power assets are gas-fired and their projects are located in Thailand, Laos, Australia, China and Indonesia. RATCH is listed on the Thailand stock exchange and owned 45 % by the Electricity Generating Authority of Thailand, 20% Thai NVDR Company Limited and the remaining by other investors, each below 5%.                                                        

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Electricity Generating Authority of Thailand (EGAT) Parent Company -
- - - - Medco Ratch Power Riau (MRPR) Subsidiary -
- - - - Perusahaan Listrik Negara (PLN) Buyer -
- - - - PT Medco Energi Internasional Tbk Parent Company -
- - - - PT Medco Power Indonesia Client -
- - - - Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) Client -
- - - - Thai NVDR Company Limited Parent Company -

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.

Project Contact: Firdaus Rizaldy Rizky
Project Finance Manager, PT Medco Ratch Power Riau 
Telephone No.: +62 21 2995 3316
Email Address: Firdaus.Rizky@medcoenergi.com
Office Address: South Jakarta 12190 Indonesia
Website: www.medcopower.co.id

ACCOUNTABILITY MECHANISM OF IFC

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/

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