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Indonesia: Multifunctional Satellite PPP Project

SUMMARY

STATUS
Approved
MEMBER
Indonesia
SECTOR
ICT
E&S CATEGORY
Category B
PROJECT NUMBER
000291

FINANCING

PROJECT TYPE
Stand-alone
APPROVED FUNDING
USD150 million
FINANCING TYPE
Nonsovereign

TIMELINE

CONCEPT REVIEW
July 2019
APPRAISAL REVIEW/FINAL REVIEW
December 2019
FINANCING APPROVAL
September 24,2020

OBJECTIVE

The objective is to improve connectivity to public service points in the least developed, frontier, and outermost regions of Indonesia.

DESCRIPTION

AIIB is considering financing to a Special Purpose Vehicle Company, PT Satelit Nusantara Tiga (“PSNT”) comprised of PT Pasifik Satelit Nusantara (“PSN”), PT Pintar Nusantara Sejahtera (“Pintar”), PT Nusantara Satelit Sejahtera (“NSS”) and PT Dian Semesta Sentosa (“DSMT”).

The Project will support the Government of Indonesia’s goal to provide connectivity to more than 149,000 Public Service Points in Indonesia. The capacity is 150 Gbps, High Throughput Satellite (“HTS”) with Ka-Band Frequency. The main responsibilities of the Project Sponsor under the concession agreement include:

• Securing the satellite orbit.

• Constructing the satellite.

• Constructing the launch rocket.

• Acquiring the gateway location.

• Acquiring the earth station location.

• Launching the satellite.

• Construction of the gateway and earth stations.

• Obtaining insurances for the Project.

• Operation and maintenance of the satellite, gateway, and earth stations.

PROJECT FINANCING

For more information about project financing, please review the project summary.

ENVIRONMENTAL AND SOCIAL INFORMATION

AIIB's Environmental and Social Policy (“ESP”) is applicable to the Project, which has been placed in Category B because considering the scale and nature of the proposed project activities, whose potentially adverse environmental and social impacts are limited in number; the impacts are not unprecedented; they are limited to the Project area; and they can be successfully managed using good practice in an operational setting.

An Environmental and Social Management Framework (ESMF) has been developed to cover the entire scope of the Project. The ESMF covers the generally anticipated environmental and social impacts and mitigation measures for the Project and specifies the requirements for selecting Project sites that will be followed in relation to environmental and social screening, categorization, and assessment, including monitoring, meaningful consultation with affected people and relevant stakeholders, and information disclosure requirements.

Anticipated environmental impacts will occur mainly in the construction stage, including dust, noise and disruption to local traffic and local business and residents. Other anticipated impacts after the construction stage would be the improper disposal of construction waste. A site-specific Environmental and Social Impact Assessment (ESIA) or Environmental and Social Management Plan (ESMP) will be prepared for every proposed location to ensure implementation of properly designed mitigation measures.

The anticipated adverse social impacts will be minimal as the land acquisition process will be based on willing buyerwilling seller. The Project is not expected to raise any resettlement issues, as no ground station will be developed if it involves physical or economic displacement of people. The proposed sites will also be screened to exclude sites involving Indigenous Peoples. PSNT will be responsible for implementing the ESMF with oversight and supervision by the environmental and social specialists of the Bank.

PSNT will establish a Project-level Grievance Redress Mechanism (GRM) prior to construction. In addition, a workers’ GRM will be established for the Project. SNT will disseminate information about the GRMs to Project affected communities and workers. The ESMF has been posted in English and the Executive Summary in Bahasa Indonesia on both PSNT’s website (www.ntiga.co.id) and AIIB’s website (www.aiib.org). SNT will inform local authorities and Project-affected communities about the Project before the start of construction works, providing them with the site specific ESIA/ESMP in Bahasa Indonesia and consulting with them on these instruments.

PROJECT TEAM LEADER

Asim Rana

Principal Investment Officer, Digital Infrastructure and Industry

Asim.rana@aiib.org

BORROWER

Adi Rahman Adiwoso

Chief Executive Officer

adiwoso@psn.co.id

IMPLEMENTING ENTITY

N/A

 

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