Electricity Grid Strengthening in Sumatra Project Dates: January 2015 - December 2019
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PROJECT OBJECTIVE

ADB's first result-based-loan (RBL) of $600 million. 

The proposed Sumatra Power Grid Strengthening Program will take a results-based
lending (RBL) programmatic approach in consultation with PLN and government over the fiveyear RPJMN period with a series of programs anchored to PLN’s RUPTL 2015–2024. This will
ensure a long-term continuous engagement for the strengthening of the Sumatra power grid and
ensuring reliable and uninterrupted provision of electricity. The RBL modality is appropriate,
given (i) ADB’s long-term assistance to PLN in financing generation, transmission and
distribution; (ii) its capacity for implementation; (iii) the alignment of the RBL with the national
planning frameworks RPJMN and RUPTL; (iv) PLN and the government’s strong ownership of
the 35 GW program; (v) the government’s shift to direct lending to state-owned enterprises
backed by a government guarantee, in order to increase efficiency and simplify the project
approval process; (vi) lower transaction costs associated with program implementation; and (vii)
the potential to stimulate cofinancing and donor harmonization with other development partners.
The program is included in the draft Country Operations Business Plan 2015–2017 and
complements the proposed Sustainable and Inclusive Energy Program Subprogram 1 policybased loan which will promote a more inclusive and sustainable energy sector in Indonesia with
targets for renewable energy and energy efficiency. 

PROJECT DESCRIPTION

      


SECTORS OR AREAS OF WORK
  1. Smart grids

KEYWORDS
  1. Biomass

Region/Location

BUDGET

USD 600,000,000

DONORS (OR FUNDING /CONTRIBUTING ORGANIZATIONS)
  1. ADB - Asian Development Bank
IMPLEMENTING AGENCY OR AGENCIES

SUPPORT TYPE
SUPPORT SUBTYPE
  • Loan
BUDGET

USD 600,000,000

DONORS (OR FUNDING /CONTRIBUTING ORGANIZATIONS)
  1. ADB - Asian Development Bank
IMPLEMENTING AGENCY OR AGENCIES

SUPPORT TYPE
SUPPORT SUBTYPE
  • Loan