The Asian Development Bank (ADB) has disbursed the first tranche of US$120m under a US$600m results-based lending (RBL) programme aimed at strengthening the electricity grid in Sumatra (Indonesia).
The US$600m financial assistance package was approved in December 2015. Future disbursements will be made annually over the next four years, after PLN has achieved agreed results in strengthening Sumatra's power transmission and distribution system. The cost of the overall grid strengthening program in Sumatra is in the range of US$7.3bn, and financing for this program is being mobilized from various sources. Indonesia's national power utility PT Perusahaan Listrik Negara (PT PLN) will upgrade its power transmission and distribution grid in Sumatra (Indonesia) through 2019. The funds will help finance enhancements to existing 150 kV transmission lines, extension of substations, and the installation of new and upgraded equipment. PLN will also use the funds to expand and reinforce the medium-voltage and low voltage networks, including the installation of distribution transformers, service connections, and customer meter boxes.