Indonesia: Strengthening Sumatra Power Distribution Results-Based Project

proposed

The proposed RBP will focus on three main results areas: 1) to increase access to sustainable and climate resilient electricity, 2) to improve the reliability of electricity supply and services by strengthening the distribution network, and 3) to improve the efficiency of the distribution system by reducing losses. Together with Perusahaan Listrik Negara (PLN) and other financiers, the proposed RBP would contribute to financing the distribution component under PLN's rolling 10-year General Plan for Electricity Supply (RUPTL) within the Sumatra region for the period 2024-2028. 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 RBP will finance activities across four primary areas—Sales, Reliability, Efficiency, and Rural Electrification—through targeted infrastructure improvements. Key initiatives include the expansion of distribution lines, construction of EV charging stations, installation of new SCADA key points for better grid management, and the rollout of smart meters to enhance operational efficiency and monitoring. Disbursements under the program will be contingent on achieving Disbursement-Linked Results (DLRs), which will be verified by an Independent Verification Agent (IVA). Funds will be released upon approved verification and submission of withdrawal applications, ensuring accountability and alignment with project objectives.