Feasibility Study Re-Evaluation and Project Preparation through TAPP Grant for MIllenium Challenge Account

Induring Mini Hydro Power Plant (PLTM)

Client: Millennium Challenge Account (MCA) Indonesia

Location: Pesisir Selatan, West Sumatra, Indonesia
Year: 2016-2017

Project Overview

The Induring Mini Hydro Power Plant in West Sumatra was conceived as part of Indonesia’s broader ambition to expand renewable energy and provide stable electricity for rural communities. Its location in a river-rich but geologically complex region made it a promising candidate for small-scale hydropower development, yet the initial feasibility study left unresolved questions that posed risks for future design and investment. Recognizing these uncertainties, Millennium Challenge Account (MCA) Indonesia supported the project through the TAPP Grant mechanism, aimed at strengthening project preparation to meet international technical, environmental, and financial standards.

SUPRA International was engaged to carry out a re-evaluation of the existing feasibility study. The assignment focused on validating technical assumptions, reassessing geological and geotechnical conditions, and incorporating environmental and social safeguards into the project framework. This intervention was designed to ensure that the Induring PLTM could move forward on a secure foundation, aligning with both national regulatory requirements and international best practice for hydropower development.

Context and Challenges

West Sumatra presents a challenging context for infrastructure development. The steep slopes, intense rainfall, and variable geology of the Pesisir Selatan region create both opportunities for hydropower and risks for construction feasibility. The original feasibility study provided baseline data but did not fully capture the variability of subsurface conditions or the long-term risks associated with slope stability. In addition, key elements of environmental and social impact management were not yet adequately integrated into the project documentation.

Without addressing these gaps, the project faced the possibility of encountering significant cost overruns, safety hazards, and delays during construction. Moreover, the lack of a precise safeguard framework risked reducing investor confidence and complicating approvals from both regulators and funding institutions.

SUPRA’s Role

SUPRA International’s work began with a comprehensive review of all available documentation, including geotechnical investigations, geological surveys, and hydrological assessments. This desk-based study was followed by a series of field visits to confirm site conditions, re-examine slope characteristics, and better understand hydrological influences on the proposed powerhouse and headrace locations.

Through this process, SUPRA developed a refined interpretation of the site’s geotechnical and geological profile. The updated model provided greater clarity on soil-structure interaction, slope stability, and potential construction risks. At the same time, SUPRA integrated environmental and social considerations into the feasibility framework. This included evaluating potential impacts on local ecosystems, community water usage, and downstream river dynamics, followed by the development of practical mitigation strategies to ensure long-term sustainability.

Results and Business Impact

The intervention had a transformative effect on the project’s readiness. With improved geotechnical accuracy, the Induring PLTM could proceed to detailed design with a much lower risk of encountering unforeseen subsurface issues. This early risk identification helped reduce the likelihood of expensive redesigns and construction delays.

The integration of environmental and social safeguards significantly strengthened the project’s credibility. Compliance with good practice standards reassured stakeholders that the project would respect community needs and environmental resilience. This, in turn, enhanced investor confidence and positioned the Induring PLTM as a more bankable project within Indonesia’s renewable energy pipeline.

Te outcomes for MCA dellivered  effective use of TAPP Grant resources, showing how targeted support at the preparation stage can de-risk renewable energy investments. For the broader energy sector, the project illustrated a replicable model for small hydropower preparation, combining rigorous technical validation with sustainability integration.

Conclusion

The Induring Mini Hydro Power Plant feasibility re-evaluation highlights the critical role of thorough project preparation in renewable energy development. SUPRA International’s involvement ensured that the project could move forward on a technically precise, environmentally responsible, and financially credible basis.