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| PT Makmur Sejahtera Wisesa |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 25218 |
| Company name | PT Makmur Sejahtera Wisesa |
| Country | Indonesia |
| Sector | Utilities |
| Environmental category | B |
| Department | Infrastructure |
| Status | Pending Disbursement |
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| Date SPI disclosed | March 23, 2007 |
| Projected board date | April 30, 2007 |
| Date revised SPI disclosed | June 12, 2008 |
| Previous Events | Signed: June 30, 2008
Approved: June 21, 2007 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The project is to construct, own and operate a 60MW (2x30MW) mine-mouth coal-fired power plant in South Kalimantan, Indonesia. The project will sell its capacity and energy to PT Adaro Indonesia under a 13-year Power Purchase Agreement. It also plans to sell its excess electricity to the local power grid. This is a greenfield project. |
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| Project sponsor and major shareholders of project company |
The project sponsors are two Shareholders of the project company, including:
- PT Adaro Energy, which owns 99.6% of the project company; and
- PT Akraya International, which owns 0.4% of the project company.
The Shareholders are privately-owned Indonesia companies managed by reputable and experienced Indonesian businessmen. |
| Total project cost and amount and nature of IFC's investment |
| Total project cost is estimated at $162.4 million. IFC proposes to provide an A Loan for IFC’s own account of up to $25.0 million and a syndicated B Loan of up to $96.8 million for the project. |
| Location of project and description of site |
| The project will be located on a 30 hectare site about 10 km east of Tanjung which is the capital city of Tabalong Regency in the Province of South Kalimantan, Indonesia. The land is flat and is presently cleared and not generally used for agriculture. The site has access to highway and river transportation. |
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| Anticipated development impact of the project |
| The project will provide dependable electricity to PT Adaro Indonesia, which is Indonesia’s major coal producer and exporter. The project will also provide much-needed electricity generation capacity to address continuing supply shortages in the grid system in Kalimantan. |
| IFC's expected development contribution |
| IFC will provide long-term financing to the project with tenors sufficient to support major capital expenditure, which is not readily available in Indonesia particularly in the power sector. The project company also approached IFC for its in-house expertise in power generation, coal mining and environmental and social standards. The company has heavily relied on IFC’s advice in finalizing project design and contractual frameworks. |
| Environmental and social issues - Category B |
| This is a category B project because it is to develop a small mine-mouth coal-fired power plant, and its potential adverse impacts are limited, few in number, generally site-specific, largely reversible and readily addressed through mitigation measures. The project will use locally produced clean coal and help improve local perceptions of PT Adaro Indonesia, a supplier of the world's cleanest coal "Envirocoal". The project will also contribute to the welfare of people living in the South Kalimantan region by providing reliable source of power. The Project is designed to meet both Indonesian environmental standards and IFC Performance Standard Standards on Social and Environmental Sustainability. For further information, please see the Environmental and Social Review Summary (ESRS). |
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| For inquiries about the project, contact: |
Mr. Vinod Laroya, President Director
PT Makmur Sejahtera Wisesa
Menara Kadin Indonesia
19 C JI. H. R. Rasuna Said
Blk. X-5, Kav. 2-3
Jakarta 12950, Indonesia
Telephone: 62 21 5790 3666
Fax: 62 21 5790 3787
E-mail: project@ptmsw.com
UKL-UPL (Environmental Management and Environmental Monitoring Study) has been placed for public review at:
- MSW office in Tanjung Tabalong (address: Jl Stadion 27 Tanjung- Tabalong, Kalimantan Selatan, Indonesia);
- MSW office in Jakarta (address: Menara Kadin Indonesia, 19 C A JI.H.R. Rasuna Said, Blk. X-5, Kav. 2-3, Jakarta 12950).
Availability of UKL-UPL for public review was announced by local newspaper (Banjarmasin Post ) on March 27, 2007. |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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