Outer Island Renewable Energy Project - Additional Financing (ADB-43452-024)

Countries
  • Tonga
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
Approved
Bank Risk Rating
U
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
Dec 14, 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.
Borrower
Tonga Power Limited
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 5.00 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)
$ 5.60 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 Aug 2, 2017

Disclosed by Bank Dec 14, 2016


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Project Description
To expand the scale of the current project and deliver greater benefits by reducing power distribution losses, the government has asked ADB for a loan and a grant of $2.5 million each from ADB's Special Funds resources to expand the on-going grid rehabilitation works from 80% to 100% and from 20% to 50% of existing grid networks on Eua and Vava'u. The overall project including additional financing will construct and install solar power systems with a preliminary capacity of 1.32 megawatt-peak (MWp) on 9 outer islands in Tonga. This capacity will be provided as follows: (i) a total of 0.75 MWp on ‘Eua and Ha’apai including a repair program on Vava’u; (ii) a total of 0.39 MWp on the four Ha’apai outer islands of 'Uiha, Nomuka, Ha'ano, and Ha'afeva; and (iii) 0.18 MWp of the solar home systems (SHS) on Niuafo’ou and Niuatoputapu. In addition, the project will update the existing electricity distribution network completely on ‘Eua and by 50% on Vava’u. The ongoing project has hired project management consultants (PMC) to (i) draft the final designs of equipment, (ii) support the bidding process, (iii) conduct training on the operation and maintenance (O&M) of solar equipment, and (iv) provide efficient project implementation and management services for at least 5 years after the plants are commissioned.1 The impact of the ongoing project is reduced dependence on imported fossil fuel for power generation. The outcome of the project is (i) optimized use of ongrid and off-grid generation systems, and increased consumer access to electricity generated by solar power due to a reduction in cost. The aggregate impact and outcome of the overall project will be enhanced as a result of the additional financing.
Investment Description
  • Asian Development Bank (ADB)
Contact Information
Ministry of Finance and National Planning Vuna Road Nuku'alofa Kingdom of Tonga ACCOUNTABILITY MECHANISM OF ADB The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main