Asahan 1 Hydroelectric Power Plant (MIGA-14262)

Countries
  • Indonesia
Geographic location 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
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
May 24, 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
International Lender to be Determined
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 160.00 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.
Other Related Projects
Primary Source

Original disclosure @ MIGA website

Updated in EWS Oct 7, 2019

Disclosed by Bank Apr 26, 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 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
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.

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

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Fareast Green Energy Ltd Parent Company -
- - - - PT Bajradaya Sentranusa (BDSN) Client -
- - - - PT Pembangkitan Jawa Bali (PJB) 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.

*There is no further information being disclosed at this stage of the project*

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/

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How it works