Indonesia: Rajamandala HEPP-01/West Java

Date Filed
16 May 2016
Status
Closed
Phase
Dispute Resolution (DR)
Country
Indonesia

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Mediation
Monitoring
Closed
Closed
Compliance
CURRENT Status
Closed(DISPUTE RESOLUTION)
Closed

Complaint Overview

Complainant

A local family

Concerns

Land impacts

Cross-Cutting Issues
Land Resettlement

Project Information

Region
East Asia & the Pacific
Institution
MIGA
Name & Number
Rajamandala Hydropower project 11862
Company
JBIC and Mizuho Bank
Sector
Infrastructure
Category
B
Commitment

$200 million (Guarantee)

Synopsis

Complaint

The Rajamandala Hydropower project (Rajamandala) consists of the development and operation of a 47 megawatt run-of-the-river hydropower plant near Bandung on Java Island on a build-operate-transfer basis. The project is being developed by PT. Rajamandala Electric Power (“REP”) and is co-financed by Japan Bank for International Cooperation (JBIC) and Mizuho Bank Ltd (MBL).  MIGA has issued guarantees of up to $200 million covering non-shareholder loans by JBIC and MBL to the Rajamandala project. The coverage is for a period of up to 19 years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.

In May 2016, a complaint was filed with CAO by a local youth organization on behalf of a local individual and his family.  The complainant alleges that the tunnel construction associated with the Hydro-electric plant has negatively impacted the family's paddy field.

CAO Action

CAO found the complaint eligible in June 2016 and an assessment of the complaint was conducted in August 2016. During the assessment, the complainants and the company agreed to engage in a voluntary dispute resolution process to address the issues raised in the complaint. As part of the dispute resolution process, the parties agreed on two key action items: 1. Addressing outstanding land issues through direct negotiations between the company and the land owners and 2. Work jointly on strengthening communication between the company and the communities. 

The company and the land owners and their families have successfully conducted direct negotiations and agreed on the sale of land to the company.  In October 2016, a training session to help the parties enhance their communication and cooperation was delivered under the auspices of CAO’s Dispute Resolution function. During the training workshop, the parties agreed to hold monthly meetings to continue to improve communication, in turn strengthening their capacity to address future disputes in an amicable way. To date, meetings have been held in November and December 2016, and January 2017. The parties have reported that since the conclusion of the training and the beginning of the monthly meetings, communication and collaboration between them has improved substantially.

Status

Upon completion of the monitoring phase, on January 30, 2017, CAO issued a conclusion report. The report summarizes CAO’s process through the assessment and dispute resolution, and marks the closure of the case. See “view documents” for documents related to this case.  

Status as of February 1, 2017

Case Documents

  • Dispute Resolution

    Assessment Report(s)
    CAO Assessment Report
    Sep 27, 2016
    English
    CAO Assessment Report
    CAO Assessment Report
    Sep 27, 2016
    Bahasa
    CAO Assessment Report
    MIGA Formal Response
    Sep 09, 2016
    English
    MIGA Formal Response
    Close-out Report(s)
    CAO Conclusion Report
    Jan 01, 2017
    English
    CAO Conclusion Report
    CAO Conclusion Report
    Jan 01, 2017
    Bahasa
    CAO Conclusion Report