Sustainable energy access in Eastern Indonesia - Sulawesi and Nusa Tenggara Power Grid Development Program (RBL)

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To finance an infrastructure program to expand and strengthen the electricity distribution system in Sulawesi and Nusa Tenggara, the state-owned energy supplier and project sponsor PT.PLN is to be provided with an FC development loan of up to USD 310 million or the equivalent in euros. The total volume of the program is USD 2.2 billion and is being co-financed with the Asian Development Bank (ADB). In addition to the KfW financing contribution, the ADB has provided a loan of USD 600 million. PLN's own contribution is around USD 1.3 billion. The project is structured as a results-based loan and was prepared in terms of content by the ADB with the involvement of the KfW. The implementation structure of the program is geared towards achieving concrete results, which are the basis for the disbursement of funds. The following information will be used as the main indicators for the implementation of the project: - Annual increase in newly connected electricity customers (households and production, commercial and service companies) - Annual increase in the amount of energy made available to households, businesses and companies - Annual reduction in longer interruptions in the electrical supply network At the line level, this will involve, among other things, extensive expansion of additional low and medium voltage lines and extensive installation of additional distribution transformers. For each year of implementation of the project, target values will be set which PT.PLN must achieve by using its own systems. The achievement of the targets will be checked by a specialised consulting company (so-called Independent Verification Agent). Based on the achievement of the indicators, linked payments will be released (so-called disbursement-linked indicators). The implementation period, within which specific target values must be achieved for each year, is planned for the KfW contribution to the program until 2022.