Maldives : Accelerating Sustainable System Development Using Renewable Energy Project (ADB-55191-001)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Maldives
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Sep 12, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Maldives
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Climate and Environment
  • Energy
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant, Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 75.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 18.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Grant Amount (USD)
$ 57.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 98.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Media Documents
Other Related Projects
Primary Source

Original disclosure @ ADB website

Updated in EWS Jan 15, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the ADB, the Maldives has significant renewable energy resources, i.e., the potential to generate solar power, ocean energy and in some pockets, wind power. To improve energy security, the government has committed to increase the use of renewable energy and promote energy efficiency. In 2014, the government has initiated two major programs (i) Preparing Outer Islands for Sustainable Energy Development (POISED) supported by the Asian Development Bank (ADB) to introduce solar photovoltaic battery-based hybrid systems in outer islands; and (ii) Accelerating Sustainable Private Investments in Renewable Energy supported by World Bank to mobilize private sector investments in solar photovoltaic in greater Male region.

The POISED project was approved by ADB's Board of Directors on 29 September 2014 and is one of the largest renewable energy sector interventions in Maldives. The project finances the replacement of inefficient diesel-based power generation grids in 160 outer islands of Maldives and in Male with renewable-energy-ready grid systems, energy management systems, upgraded distribution grids including online monitoring and supervisory control systems. These interventions will contribute to reducing the cost of electricity, the subsidy burden on the government budget, and emissions, and will diversify the power generation mix. ADB also approved a second additional financing on 30 October 2020 to expand the POISED project.

The POISED project has played a vital role in escalating the penetration of renewable energy and the project has installed more than 10.5 MW of solar photovoltaic capacity, 5.6 megawatt-hours of battery storage, and 11.6 MW of energy-efficient diesel generators and associated investments covering 70 outer islands across eight atolls. The implementation is in various stages for remaining 90 islands. The project also supported the preparation of renewable energy road map for the energy sector; initiating regulatory and net metering reforms; and improving the capacity of the Ministry of Environment (MOE), FENAKA, and STELCO focusing on renewable energy. The project also supports several gender initiatives such as (i) awareness campaigns on renewable energy covering island communities, women development councils, students, and government organizations; (ii) providing training and creating internship and employment opportunities for women in utilities; and (ii) developing gender inclusive renewable energy-based income generation activities through fisheries and other pilot interventions.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The ADB categorised the project risk as follows:

Environment B
Involuntary Resettlement C
Indigenous Peoples C
Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Financial contributions to the project will come from the following:

- Climate Change Fund;
- Asian Development Fund;
- Japan Fund for the Joint Crediting Mechanism;
- Asia Pacific Climate Finance Fund;
- Clean Technology Fund; and
- the Private Sector.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ADB Team Leaders:

Sujata Gupta - Director, Energy Sector Office, Sectors Group
Phone: (02) 8632-4444
Email: sgupta@adb.org

Jaimes Kolantharaj - Senior Energy Specialist
Phone: (02) 8632-4444
Email: jkolantharaj@adb.org

Executing Agency - Ministry of Finance:

Mr. Mohamed Yammai - Chief Resource Mobilization Executive
Phone: +960-3349200
Email: mohamed.yammai@finance.gov.mv

Implementing Agency - Ministry of Environment, Climate Change and Technology:

Mr. Ahmed Ali - Director General
Phone: +960-3018463
Email: ahmed.ali@environment.gov.mv 

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

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.

How it works

How it works