Bankability challenges for the construction of micro hydro power plants utilizing state-owned dams (case study: Pandanduri dam, West Nusa Tenggara-Indonesia)

Power supply business plan (RUPTL) of PT. PLN (Persero) year 2021-2030 states that there is an electric potential of 337.1 MW that can be generated from 60 dams owned by the Government of the Republic of Indonesia through the Ministry of Public Works and Public Housing. The tender process for several locations has already been implemented. One of them is the Pandanduri micro hydro power plant which utilizes the outlet of the Pandanduri Dam, West Nusa Tenggara. The purpose of this study is to analyze the challenges of the Pandanduri microhydro project in obtaining funding from financial institutions. Assessment of aspects of bankability (character, capacity, capital, collateral, condition of economy) with regard the construction of Pandanduri microhydro shows that the role of sponsors is very significant in providing equity portion, providing guarantees and to mitigate the potential risk of cost overrun, delay in commercial operation date and cash deficiency.