ADB finances first EAGA clean energy project

The Asian Development Bank (ADB) and Indonesia ’s Government will build a cross-border power transmission line to bring cleaner and greener electricity to 8,000 households in the country’s West Kalimantan province.

According to ADB Energy Specialist Sohail Hasnie, the line will link the province with the Malaysian state of Sarawak, bringing a power network that crosses the Brunei- Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) one step closer.

Thanks to the project, the cost of power in West Kalimantan could drop to 0.18 USD per kWh from the current 0.25 USD, while carbon dioxide emissions from fossil fuel-based power generation could be cut by 400,000 tonnes each year by 2020.

Work will soon begin on a 145-kilometre transmission line and a new transformer station to improve the reliability of power in West Kalimantan . An 83 km high voltage cross-border transmission line will then be constructed to connect the grid with Sarawak .

The interconnection project will help save Indonesia ’s Perusahaan Listrik Negara (PLN) an estimated 100 million USD every year and lessen its reliance on fossil fuels.

In addition to its 49.5 million USD loan to the project, ADB will also administer a 49.5 million USD loan provided by the French Development Agency and a grant of 2 million USD from the Multi-Donor Clean Energy Fund as well.

ADB is currently preparing a second loan project to finance the transmission line of the Malaysia side. Both Indonesia and Malaysian have agreed to complete the construction by December 2014 and power flow will begin from January 1, 2015.

By Le My

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