PROJECT OBJECTIVE
The proposed $635 million sector loan aims to help improve access to electricity services in Eastern Indonesia (Kalimantan, Maluku, Nusa Tenggara, Papua, and Sulawesi) by supporting a cluster of new small- to mid-sized power stations fueled by natural gas which is a clean burning fuel that has lower power generation costs and less local pollutants and carbon dioxide (CO2) emissions compared to diesel- fired units. The project also plans to include pilot-scale gas and solar hybrid units that can help enhance the borrower’s operational know-how and position them well for future scale up of renewable energy use.