The results-based lending (RBL) modality provides flexibility to adjust targets adversely affected by unforessen adverse events such as COVID-19. During 2020–2022, the COVID-19 pandemic affected the demand for electricity, lowering the State Electricity Company's (PLN) revenues and creating uncertainty in its investment plans. Sourcing equity financing and implementing ongoing projects within PLN became difficult under such conditions and adjustments were needed in scope and time targets of ongoing works. The RBL modality provided flexibility to adjust targets based on disbursement-linked indicators rather than continuing with a fixed scope of contracts. This allowed PLN to tide over the difficulties associated with the pandemic.
Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program