Sustainable Urban Transport Project

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The Sustainable Urban Transport Project aims to support Perum DAMRI (DAMRI), the state-owned bus operator, in replacing its aging fleet of internal combustion engine (ICE) buses with battery electric buses (BEBs), and in improving the quality and resilience of its public transport facilities and services. The project is aligned with the following impact: Acceleration of electric vehicle deployment to increase energy conservation in the transportation sector, improve air quality, and reduce greenhouse gas emissions (Presidential Regulation No. 55/2019 on the acceleration of electric vehicles program for road transport). The project is aligned with the following outcome: Transition to climate resilient and environmentally sustainable public transport initiated. The project will include three outputs: (i) public transport facilities improved; (ii) battery electric buses and fast chargers deployed; and (iii) project implementation and sustainable public transport operation capacity enhanced. The proposed financing amount is $80 million which includes $45.0 OCR loan and $9.5 million in grant financing from the Green Climate Fund, and $25.5 million concessional financing from the Green Climate Fund. DAMRI Electric Bus Project. The project aims to improve the quality and sustainability of public transport services operated by DAMRI in Jakarta by replacing ICE buses with BEBs, upgrading bus transfer facilities, enhancing first and last mile connectivity, and strengthening the capacity of DAMRI, the state-owned bus operator. The TA will also support with capacity strengthening and needs identification sustainable urban transport in Indonesia.The TA is included in the Indonesia 2024 Country Program Mission Aide Memoire. The TA is consistent with the Country Partnership Strategy for Indonesia, 2020-2024 priorities of supporting quality infrastructure investment of urban transport (sector strategy pathway: accelerating economic recovery) and mobilizing investments for low-emission transport schemes (sector strategy pathway: strengthening resilience). The TA primarily supports the following key operational priorities of ADB's Strategy 2030: (i) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability and (ii) making cities more livable.