📋 Tender Overview
SUMMARY
STATUS
Proposed
MEMBER
Indonesia
SECTOR
Energy
E&S CATEGORY
Category B
PROJECT NUMBER
P000819
FINANCING
PROPOSED FUNDING AMOUNT
USD500 million
FINANCING TYPE
Sovereign
TIMELINE
CONCEPT REVIEW
August 8, 2024
OBJECTIVE
To increase access to electricity services and to improve the reliability and efficiency of their delivery in the Sumatra region.
DESCRIPTION
The proposed Results-Based Project (RBP) will support PT Perusahaan Listrik Negara (PLN) to finance the distribution component of the 10-year General Plan for Electricity Supply (RUPTL) within the Sumatra region for the period 2024-2028. The RBP will focus on three main results areas: (i) to increase access to sustainable and climate resilient electricity; (ii) to improve the reliability of electricity supply and services by strengthening the distribution network; and (iii) to improve the efficiency of the distribution system by reducing losses.
The RBP will exclude any activities with significant adverse environmental and social (ES) risks and impacts or high-value contracts above a specified threshold. The exclusion criteria will be developed when undertaking the RBP assessments on technical, ES, and fiduciary system of PLN during the preparation.
ENVIRONMENTAL AND SOCIAL INFORMATION
Applicable Policy and Categorization. The Bank’s Environmental and Social Policy (ESP) and the Environmental and Social Exclusion List (ESEL) will be applicable to this RBP. As per the Bank’s ESP, the Project is proposed as Category B, considering that (i) Category A activities and other activities that are likely to have significant adverse impacts that are sensitive, diverse, or unprecedented on the environment and/or Project-affected people (PAPs) will be excluded from the RBP; and (ii) the ES risks and impacts of the activities within the scope of this RBP are generally temporary, short-term, localized, and can be effectively avoided, reduced or mitigated through adopting mature civil work techniques and good management practice.
Environmental and Social Instruments. The Environmental and Social Systems Assessment (ESSA) to be conducted will entail a review of domestic ES legislative framework and PLN’s ES management systems (ESMS). The ESSA will also cover the assessment of the existing PLN’s Grievance Redress Mechanism (GRM) in terms of its adequacy and accessibility to stakeholders. The ESSA will include recommended actions to strengthen specific aspects of the Client’s capacity and the system for mitigating ES risks during the preparation and implementation of the RBP. During the process of ESSA, the Project team will identify and engage with RBP stakeholders in a manner proportional to the ES risks and potential impacts of the RBP. The draft ESSA in English with a summary in Bahasa Indonesia, will be disclosed in a timely manner before appraisal of the RBP.
Environmental and Social Aspect. The Project will generate ES benefits by enhancing electricity access,
