Energy Access Project (ADB-43414-013)

  • Vanuatu
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jul 29, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Government of Vanuatu
The holder of the loan, grant, or other investment.
  • Energy
  • Hydropower
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 2.50 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 12.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jun 26, 2020

Disclosed by Bank Mar 30, 2016

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Project Description

The project will increase energy access and renewable energy generation in the two islands of Espiritu Santo and Malekula, being second and third largest population centers after Efate. The project will assist Vanuatu install hydropower generation to replace diesel generation in Malekula and will extend the distribution grid in both Malekula and Espiritu Santo. Project preparatory technical assistance was used in project preparation.

1. Extension of distribution grid by Government.
2. Two hydropower plants put into operation by the Government.
3. Capacity building undertaken for implementing agency and project beneficiaries.
4. The Project Management Unit (PMU) renders efficient project management services

The project will involve small-scale run of river (no dam or reservoir) schemes at Brenwe Hydropower site. The schemes would be connected to existing grid distribution networks. The sites are not in protected areas and have no particular or special value for biodiversity conservation. Impacts will be site-specific and can be readily mitigated.

The project includes one small hydropower subproject at Brenwe River, Malekula. The project does not involve physical displacement, but requires acquisition of land for several components. Resettlement plan (RP) for each subproject is being prepared.

The project includes one small hydropower project at Brenwe, Malekula as well as distribution grid extensions at Malekula and Espiritu Santo. The due diligence (Attachment) undertaken by the social development specialist of the PPTA has concluded that while there are tribes and clans in the subproject areas, (i) their institutions are not separate from mainstream society, and (ii) these groups are not vulnerable. As socio-cultural groups need to be both distinct and vulnerable for triggering the ADB SPS requirements on IPs, the project has been proposed as category C and an IPP will not be required. However, the project will ensure that local communities actively participate and receive culturally appropriate benefits and that issues related to the acquisition of customary land are addressed by the resettlement plans.

Investment Description

Grant: Concessional ordinary capital resources / Asian Development Fund US$ 2.50 million
Loan: Strategic Climate Fund - PPCR US$ 7.00 million

Contact Information

Ministry of Finance & Economic Management
P.M.B. 058
Port Vila


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