The World Bank Implementation Status & Results Report ID-Geothermal Energy Upstream Development (P155047) ID-Geothermal Energy Upstream Development (P155047) EAST ASIA AND PACIFIC | Indonesia | IBRD/IDA | Investment Project Financing (IPF) | FY 2017 | Seq No: 17 | Archived on 28-Jun-2024 | ISR01163 Implementing Agencies: PT Geo Dipa Energi, PT Sarana Multi Infrastruktur (Persero) 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 18-Oct-2018) The PDO is to facilitate investment in geothermal power generation and reduce greenhouse gas emissions. Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Risk Mitigation for Geothermal Exploration Drilling:(Cost 98,000,000.00) Capacity Building on Geothermal Exploration and Environmental and Social Safeguards Management:(Cost 6,250,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial 4. KEY ISSUES & STATUS 4.1 Implementation Status and Key Decisions Jun 28, 2024 Page 1 of 9 The World Bank Implementation Status & Results Report ID-Geothermal Energy Upstream Development (P155047) The Geothermal Energy Upstream Development Project (GEUDP) was approved in February 2017 and became effective in August 2017. Since Project approval, the Project underwent two restructurings in 2020 and 2021. The Project restructuring extended the Clean Technology Fund (CTF) and the Global Environment Facility (GEF) grants closing dates from December 31, 2022 to December 31, 2025. The other changes in the Project restructuring included to (i) introduce PT Geo Dipa Energi (PT GDE) as the second Implementing Agency, (ii) downscale the number of exploration drilling subproject from the five-six estimated at Project approval to a new target of four, (iii) update the targets and timelines of the Project Development Objectives (PDO) and intermediate indicators according to these changes, and (iv) reflect changes in the drilling strategy in the intermediate indicators. The third Project restructuring was completed in March 2024 to provide that: i) the subproject in the Waesano site will no longer be eligible for financing under the GEUDP, ii) the number of subprojects targeted under the Project will be scaled down to only one subproject, and iii) relevant changes to the Result Framework will be adopted. Currently, Jailolo (in Halmahera Island, North Maluku) is the prospect under the Technical Assistance (TA) Phase of the GEUDP. Only the prospect that is graduated from the TA Phase will continue to the Investment Drilling Phase. Progress has been made on the preparation of the Jailolo prospect signaling that the Project is on track to achieve the Project Development Objective. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 016 - 15 Apr Proposed Rating 19 Oct 2018 2024 Political and Governance Substantial Moderate Moderate Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Moderate Moderate Environment and Social Substantial High High Stakeholders Substantial High High Overall Substantial Substantial Substantial Jun 28, 2024 Page 2 of 9 The World Bank Implementation Status & Results Report ID-Geothermal Energy Upstream Development (P155047) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes To facilitate investment in geothermal power generation Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 May/2017 0.00 28-Jun-2024 0.00 28-Jun-2024 10.00 Dec/2025 Comments on This indicator reflects the new generation capacity enabled under the Project. After Electric power generation achieving targets restructuring, the number of subproject numbers is scaled down from four to one, with an capacity enabled through the assumption that the site will have successful exploration drilling to prove the existence of at issuance of geothermal least 10 MW geothermal resource for power development. development licenses (Megawatt) At this ISR, no exploration has been completed to claim the progress of this indicator. 0.00 May/2017 0.00 31-Mar-2024 40.00 Dec/2025 Comments on This indicator looks at the expected commercial capital mobilized as a result of the project achieving targets interventions. After restructuring, the target of generation capacity enabled by the Project is Commercial capital mobilized scaled down from 65 MW to 10 MW, with an assumption of US$4 million per MW (reflecting for investment in geothermal an increase of geothermal development cost) will be required to develop a full geothermal power generation (million) subproject. The previous asumption at the Project design was US$3 million per MW. (Amount(USD)) At this ISR, no exploration has been completed to enable new geothermal generation capacity with the expected commercial capital mobilized. To reduce greenhouse gas emissions Jun 28, 2024 Page 3 of 9 The World Bank Implementation Status & Results Report ID-Geothermal Energy Upstream Development (P155047) Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 May/2017 0.00 31-Mar-2024 50,770.00 Dec/2025 Comments on This indicator reflects the outcome of the GHG accounting exercise based on 10 MW of new achieving targets generation capacity enabled under the Project. The calculation indicates that 1 MW of Estimated GHG emission reduction compared to a capacity will reduce GHG emissions by 5,077 metric tons of CO2 equivalent per year. business-as-usual baseline (Metric ton) At this ISR, no exploration has been completed to enable a new generation capacity and expect avoided GHG emissions. 6.2 Intermediate Results Indicators by Components Risk Mitigation for Geothermal Exploration Drilling Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 May/2017 0.00 31-Mar-2024 3.00 Dec/2025 Total generating capacity- Comments on This indicators tracks the total generating capacity-equivalent of steam yields expected. The equivalent of steam yield achieving targets assumption is that two wells will be drilled for the subproject. It is assumed that GEUDP will from all wells drilled when get 1 successful well with steam yield of 3 MW/well. converted to equivalent standard diameter well production (Megawatt) At this ISR, no exploration well has been drilled to be measured under this indicator. 0.00 May/2017 0.00 28-Jun-2024 0.00 28-Jun-2024 3.00 Dec/2025 Jun 28, 2024 Page 4 of 9 The World Bank Implementation Status & Results Report ID-Geothermal Energy Upstream Development (P155047) Comments on This indicators tracks the average generating capacity-equivalent of steam yields expected. It Average generating capacity- achieving targets is assumed that steam yields from productive wells will range from 3 to 10 MW with a equivalent of steam yield per well drilled when converted (conservative) average of 3 MW. to equivalent standard diameter well production At this ISR, no exploration well has bee drilled to be measured under this indicator. (Megawatt) Issuance of geothermal 0.00 May/2017 0.00 31-Mar-2024 0.00 Dec/2025 development licenses Comments on This indicator tracks the number of geothermal development licenses issued. (Number) achieving targets 0.00 May/2017 0.00 31-Mar-2024 17,900.00 Dec/2025 Comments on This indicator measures the planned increase in access enabled through the Project. The achieving targets underlying assumptions are: 1 MW plant capacity, with 92% capacity factor, produces 8,059 Estimated increase in the MWh/year, 20% of which serving electrification needs, with an average consumption level of number of connected 900 kWh/y/residential consumer (intended as household). The actual planned increase in households for the number of consumer connections will be deduced from PLN’s distribution planning for the associated local electricity local electricity networks. networks (Number) At this ISR, no exploration site has been completed to enable the geothermal power plant development and to provide estimate increased of new household connection. 0.00 May/2017 0.00 31-Mar-2024 71,600.00 Dec/2025 Comments on The subproject which is able to complete the exploration drilling successfully will enable achieving targets additional electricity generation capacity. The additional generation capacity will be Estimated direct project beneficiaries (Number) connected to households with assumption of 4 family members per household who will be direct beneficiaries of this project. Jun 28, 2024 Page 5 of 9 The World Bank Implementation Status & Results Report ID-Geothermal Energy Upstream Development (P155047) At this ISR, no exploration site has been completed to enable additional electriciy generation capacity and connect the households. 0.00 0.00 0.00 50.00 Estimated female Comments on The subproject which is able to complete the exploration drilling successfully will enable beneficiaries achieving targets additional electricity generation capacity. The additional generation capacity will be (Percentage) connected to households with assumption of 4 family members per household who will be direct beneficiaries of this project. It is assumed that female beneficiaries is at 50% ratio. 0.00 May/2017 0.00 31-Mar-2024 1.00 Dec/2025 Comments on This indicator tracks the number of reports delivered by the Implementing Agency, based on Delivery of Inferred Resource achieving targets the identified 1 sub-project under this Project. Capacity Reports by Exploration Management Team (Number) At this ISR, no exploration has been completed and no resource report has been produced. 0.00 May/2017 100.00 31-Mar-2024 100.00 Dec/2025 Comments on This indicator supports tracking of Citizen Engagement by measuring percentage of sub- achieving targets project affected villages which have received public consultation from the Implementing Villages located next to exploration sites with at least Agency. one public consultation held (Percentage) At this ISR, the indicator was measured based on the public consultation activities completed by the Implementing Agency to all affected villages in Jailolo site. 0.00 May/2017 12.00 31-Mar-2024 50.00 Dec/2025 Share of public consultations Comments on This indicator supports tracking of gender action which is measured from attendance list of segregated by gender achieving targets public consultation events. (Percentage) Jun 28, 2024 Page 6 of 9 The World Bank Implementation Status & Results Report ID-Geothermal Energy Upstream Development (P155047) At this ISR, the indicator was measured from the public consultation carried out in the Jailolo site. Capacity Building on Geothermal Exploration and Environmental and Social Safeguards Management Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 May/2017 1.00 28-Jun-2024 1.00 28-Jun-2024 2.00 Dec/2025 Comments on This indicator tracks the number of practice guides that will inform safeguards achieving targets implementation under the Project. Two guides have been identified and being prepared: 1) Practice guides for Stakeholder Engagement and FPIC Guideline and 2) Safety Protocol for the H2S Risk during the safeguards implementation Exploration Drilling and Well Testing. (Number) Technical Guideline on “Implementing FPIC Stakeholder Engagement in Geothermal Projects” has been completed in May 2024. Jun 28, 2024 Page 7 of 9 The World Bank Implementation Status & Results Report ID-Geothermal Energy Upstream Development (P155047) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed TF-A4089 Effective 49.00 49.00 0.00 8.24 40.76 16.82% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing TF-A4089 Effective 09-Feb-2017 07-Mar-2017 04-Aug-2017 31-Dec-2022 31-Dec-2025 8. KEY DATES Jun 28, 2024 Page 8 of 9 The World Bank Implementation Status & Results Report ID-Geothermal Energy Upstream Development (P155047) Key Events Planned Actual Approval 09-Feb-2017 09-Feb-2017 Effectiveness 01-May-2017 04-Aug-2017 Mid-Term Review No. 01 31-Jan-2020 14-Jan-2020 Mid-Term Review No. 01 31-Jan-2020 14-Jan-2020 Mid-Term Review No. 01 31-Jan-2020 Mid-Term Review No. 01 31-Jan-2020 Mid-Term Review No. 01 Mid-Term Review No. 01 Mid-Term Review No. 01 31-Jan-2020 Mid-Term Review No. 01 31-Jan-2020 Mid-Term Review No. 01 31-Jan-2020 Operation Closing/Cancellation 31-Dec-2025 9. RESTRUCTURING HISTORY Restructuring Level 2 Approved on 18-May-2021 Restructuring Level 2 Approved on 07-Dec-2020 Restructuring Level 2 Approved on 28-Mar-2024 10. ASSOCIATED OPERATION(S) There are no associated operations Jun 28, 2024 Page 9 of 9