Java-Bali Power Sector Restructuring and Strengthening Project

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The Java-Bali Power Sector Restructuring and Strengthening Project for Indonesia aims to improve the performance of the power sector on Java-Bali by: (a) supporting the State power company (PLN) to implement its financial and corporate restructuring plan, and to strengthen key elements of the Java-Bali electricity supply system; and (b) assisting the State gas company (PGN) to prepare the groundwork for restructuring its gas transmission and distribution operations. There are five components to the project. 1) The Project will support PLN's initiatives to (a) achieve greater utilization of existing generation capacity on Java-Bali, (b) improve the security of supply to the cities of Cirebon and Surabaya, and (c) debottleneck local interconnections between bulk transmission and subtransmission. 2) The Project will support PLN's initiatives to (a) provide a level of security commensurate with the existing and potential PLN and PP geothermal generation capacity evacuated through the West Java 150kV subtransmission network near Bandung, (b) improve security of supply to Surabaya, and (c) relieve multiple localized overloading and voltage problems at subtransmission level. 3) The Project will support PLN to implement a pilot rollout of the company's Enterprise Resource Planning (ERP) information system. 4) The Project will also support PLN's restructuring program-as well as its institutional strengthening initiatives-through technical assistance. 5) The Project will support PGN's restructuring and institutional strengthening initiatives, through technical assistance.