BDSN is an Indonesian company majority owned by Fareast Green Energy, a Singaporean private company whose beneficial owners are several Indonesian individuals who develop projects in the renewable energy sector. PJB, a PLN subsidiary engaged in electricity generation, is the second largest shareholder of BDSN. PLN is Indonesia’s state-owned electric utility company and has been a keys stakeholder in BDSN since its inception.

The total loan size is expected to be up to US$285 million, of which up to US$75 million will be from IFC’s own account and the remaining US$210 million mobilized. IFC is also considering a small equity investment in BDSN.

82.50 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	75.0
Equity	7.50

* These investment figures are indicative

The power plant is located 25 km downstream of Lake Toba on the Asahan River in North Sumatera, Indonesia, approximately 130 km southeast of the city of Medan, capital city of North Sumatera Province. The facility is located downstream of Lake Toba and upstream from the 603 MW Siguragura and Tangga hydropower plants (Asahan 2), which are owned and operated by PT Indonesia Asahan Aluminium (PT Inalum).

- Promoting alternative source of renewable energy: The project supports the development of renewable power generation in a frontier region, improving the generation fuel mix using domestic resources and contributing to the reduction of greenhouse gas emission.
- Promoting private sector participation in the hydro energy sector: The project supports private sector participation in the infrastructure sector while increasing electricity capacity in the country.
- Improving rural income in the frontier region: The project helps promote sustainable economic development in an area with a power shortage.

- Access to long term capital: IFC''s participation is expected to attract other potential commercial banks and financial institutions to mobilize long-term funds for an alternative source of renewable energy
- Enhancing E&S performance standards: IFC''s engagement in the project will ensure that IFC''s performance standards are implemented and will help the project benchmark itself against international best practices in the power sector

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Payment to Government	Annual Payments ($M)		Not Available	Not Available	Not Available
Organizational capacity and Management Programs(%)	Organizational capacity and Management Programs(%)		Not Available	Not Available	Not Available
Occupational Health and Safety(%)	Occupational Health and Safety(%)		Not Available	Not Available	Not Available
Direct Employment (#) - Operations and Maintenance	Employment (#)		Not Available	Not Available	Not Available
Female Direct Employment (#) - Operations and Maintenance	Female Employment (#)		Not Available	Not Available	Not Available

This is a Category B project according to IFC’s Environmental & Social Review Procedure because proceeds will not be used to expand or alter the existing operation’s environmental and social footprint. Having been operational for several years, the run-of-river hydropower plant was constructed in a highly modified stretch of the Asahan River, the flow of which had been significantly altered for decades by the earlier construction of three large (Asahan-2) dams.



The Asahan-1 operation has no dam wall (relying instead on the existing Asahan-2 impoundment), a low daily traffic volume and security is not regarded as a sensitive issue in the local area, hence PS 4 is not considered applicable to the investment. Land acquisition for the project was completed more than a decade ago and no legacy issues were surfaced during IFCs interactions with community leaders. The proposed IFC project will result in no incremental economic or physical displacement, hence PS 5 is not considered applicable.



The proposed IFC investment will not result in any incremental impacts on biodiversity. As a result, PS 6 is not considered applicable. Whilst anecdotal evidence suggests that scheme construction may have led to a decrease in fast-flow fish species and fishing activity amongst local villagers – due to diversion of Asahan River flow through the power tunnel – this impact occurred several years ago and is regarded as a non-reversible legacy impact. According to research conducted downstream for a similar scheme, it is considered unlikely that affected fish species were of high conservation importance, and local fishing activities were reportedly restricted to occasional, part-time fishing only, for home consumption or occasional sale. Biodiversity in the Asahan was already significantly modified prior to Asahan-1 construction due to the construction and operation of the Asahan-2 scheme with its three large dams that prevent fish passage up and downstream.



Although local Batak people share some characteristics of Indigenous Peoples, PS 7 is not considered applicable to this project as no incremental or ongoing adverse social impacts on local communities have been identified as a result of this proposed investment. As the project is already constructed, no incremental cultural heritage impacts are anticipated, hence PS 8 is also not considered applicable.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.