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PT Makmur Sejahtera Wisesa
Environmental & Social Review Summary

This Environmental and Social Review Summary is prepared and distributed 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 of Director’s decision. Board dates are estimates only.
Any documentation which is attached to this Environmental and Social Review Summary has been prepared by the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content.
Project number 25218
RegionEast Asia and the Pacific
SectorCoal - Thermal Power Generation
Environmental category:B
Date ESRS disclosedMarch 23, 2007
Last Updated DateJune 12, 2008
Previous EventsSigned: June 30, 2008
Approved: June 21, 2007
View Summary of Proposed Investment (SPI), click here

OverviewCategory &

Applicable Standards
Key Issues

& Mitigation



Overview of IFC's scope of review
IFC’s review of this project consisted of appraising environmental, health and safety and social information submitted by PT Makmur Sejahtera Wisesa (MSW or the company), a field visit conducted by the IFC project team including its environmental specialist to the proposed project site, its surroundings, and the nearby existing coal mine operated by PT Adaro Indonesia, and interviews with MSW’s officers in charge of environmental, health and safety, and social management. Key documents reviewed by IFC included the following:

English version of UKL-UPL (Environmental Management and Monitoring Study):
- Environmental Management and Monitoring Study, 2x30MW Coal Fired Steam Power Generator (PLTU), Tanjung – Tabalong, PT. Makmur Sejahtera Wisesa, March 2007

Bahasa Indonesia version of UKL-UPL:
- Upaya Pengelolaan Lingkungan (UKL) dan Upaya Pemantauan Lingkungan (UPL), PLTU BATU BARA 2X30 MW, DI TANJUNG – TABALONG, PT MAKMUR SEJAHTERA WISESA, Maret, 2007

After the ESRS was disclosed on March 23, 2007, there have been some changes made to the Project. IFC reviewed additional information submitted by MSW to update the ESRS.
Project description
MSW plans to construct, own and operate a 60MW (2x30MW) mine-mouth coal-fired power plant on a 100 ha site in Mabuun Village, Murung Pudak, Sub-district of Tabalong Regency, South Kalimantan Province, Indonesia (the project). The nearby (4-5km) Wara coal mine, one of the three coal mines (Tutupan, Paringin and Wara) being operated by PT Adaro, will supply the fuel (about 1,200 ton/day) for the plant by trucks. Coal produced by PT Adaro has very low sulfur and ash contents and is traded internationally as “Envirocoal”. MSW will sell most of its electricity to PT Adaro under a Power Purchase Agreement. It also plans to sell its excess electricity to the local power grid as well as provide a small amount of free electricity to the local community. Water for the operation of the plant will be taken from the Tabalong River and pumped to the plant through a 9 km pipeline. An intake well will be constructed in the riverbank situated in Sulingan Village of Murung Pudak Sub-district. About 75 km, 70 kV transmission line for the Adaro’s coal transportation conveyer, as well as about 4-5 km 20 kV transmission line to the PLN’s Tanjung Substation which will connect to the forthcoming South Central-East Kalimantan interconnection line, will be developed to deliver the generated electricity. An area of about 7 ha of land will be provided within the plant boundary for ash disposal. The total project cost is estimated at $162.4 million. IFC is proposing to provide financing of up to $25 million plus a syndicated loan of up to $96.8 million.

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