Project Name Preparing Outer Islands for Sustainable Energy Development Project
Project Number 46122-003
Country Maldives
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0409-MLD: Preparing Outer Islands for Sustainable Energy Development Project
Asian Development Fund US$ 38.00 million
Grant 0410-MLD: Preparing Outer Islands for Sustainable Energy Development Project
Strategic Climate Fund US$ 12.00 million
Loan: Preparing Outer Islands for Sustainable Electricity Development
Islamic Development Bank US$ 10.00 million
European Investment Bank US$ 50.00 million
Grant 0429-MLD: Preparing Outer Islands for Sustainable Energy Development Project
Japan Fund for Joint Crediting Mechanism US$ 5.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy - Conventional energy generation - Energy efficiency and conservation - Renewable energy generation - solar

Gender Equity and Mainstreaming Effective gender mainstreaming
Description ADB and the Government of Maldives are working together to transform the existing energy grids on the archipelago into a hybrid renewable energy system. The Preparing Outer Islands for Sustainable Energy Development Project is installing energy management and control systems; energy storage; and improvements in distribution networks, in order to significantly reduce the need for diesel to generate electricity. The work includes installing equipment for solar diesel hybrid grids on about 160 islands. The project will replace inefficient diesel-based power generation grids on the islands with hybrid systems of both renewable energy and diesel in order to reduce the cost of electricity and the emissions created, as well as lower the subsidy burden on the government budget.
Project Rationale and Linkage to Country/Regional Strategy The Maldives is the only country in South Asia to achieve 100% access to electricity. This includes the half of the population who live on outer islands. Given the geographic spread of the archipelago, each island is electrified with its own diesel-powered grid system, resulting in expensive and not very reliable electricity supply. Diesel power is also costly and requires government subsidies in excess of $40 million a year. The 100% diesel dependence of the Maldives makes it reliant on oil imports and also makes its carbon emissions per unit of electricity among the highest in the region. The Maldives has the potential for significant renewable energy resources, including solar energy and some areas appropriate for wind power. Studies show that the cost of energy generation from a hybrid system of renewable energy and fossil fuels would be significantly lower than the existing options. The transition to renewable energy has a sound economic rationale. It improves the financial situation of the government while at the same time lowering costs for consumers.
Impact More sustainable energy sector based on renewable resources.
Project Outcome
Description of Outcome Shift towards clean and cost-effective energy sources
Progress Toward Outcome Project is declared effective on 19 January 2015 and implementation is on-going.
Implementation Progress
Description of Project Outputs

1. Renewable-energy-ready grid systems developed for outer islands and greater Male region

2. Enhanced capacity of MEE, STELCO, and FENAKA to implement renewable energy grid interventions

Status of Implementation Progress (Outputs, Activities, and Issues) IFBs were posted for 2 packages (Lot 1 and Lot 2) under Phase 1 and bid evaluations are ongoing in September 2015.
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is classified environment category B and the initial environment examinations for the sample projects were prepared following ADB s Safeguard Policy Statement (2009), the government s environmental impact assessment guidelines, and related national policies and legislation. Public consultation and information disclosure requirements have been met.
Involuntary Resettlement The project is classified as category B for both involuntary resettlement and C for indigenous peoples. Due diligence conducted on sample subprojects brought out no resettlement impacts and no adverse impacts on indigenous groups. A resettlement framework has been prepared for the project. .
Indigenous Peoples For all the subsequent subprojects that have resettlement impacts, resettlement plans will be prepared in accordance with the safeguard provisions in the resettlement framework. If any changes or additional land requirements or involuntary resettlement impacts are identified during implementation, a resettlement plan will be prepared or modified according to the applicable laws referred to in the resettlement framework. ADB s prior approval will be obtained before further implementation of the relevant subproject
Stakeholder Communication, Participation, and Consultation
During Project Design

Stakeholders including utilities, investors, government, the regulator, financiers and consumers have been periodically consulted during the preparation of the SREP Investment Plan in 2010-2012 and the project preparation phase. MEE will prepare a stakeholder communication strategy and submit to ADB for review in 2015 after effectiveness. Communication will be in language suitable for the specific audience and will follow the ADB Public Communication Policy. The stakeholder strategy will incorporate the following components:

(i) Compilation of stakeholder communication activities already undertaken;

(ii) Public communication plan for disseminating information regarding project development to the public who may be impacted by the proposed projects

(iii) Consultations and disclosure during preparation of future sub project IEE.

During Project Implementation TBD
Business Opportunities
Consulting Services The PMU will be supported by external experts. ADB will recruit the external experts using Quality and Cost based selection (QCBS) with a 90:10 selection criteria. Consultancy services will be procured in accordance with ADB's Guidelines on the Use of Consultants (April 2013, as amended from time to time).
Procurement The government has requested ADB to assist in procuring all project goods, works and services, and to recruit related project management consultancy services. Procurement of goods, works and related services under the project will be processed through a Project Management Unit with review by ADB. The procurement will be carried out in accordance with ADB's Procurement Guidelines (April 2013, as amended from time to time).
Responsible ADB Officer Len George
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Ministry of Finance and Treasury
Ameenee Magu
Male'
Republic of the Maldives
Timetable
Concept Clearance 10 Dec 2012
Fact Finding 03 Apr 2014 to 11 Apr 2014
MRM 19 May 2014
Approval 29 Sep 2014
Last Review Mission -
Last PDS Update 04 Sep 2015

Grant 0409-MLD

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Sep 2014 09 Dec 2014 19 Jan 2015 30 Jun 2020 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 52.00 Cumulative Contract Awards
ADB 38.00 29 Sep 2014 8.38 0.00 22%
Counterpart 14.00 Cumulative Disbursements
Cofinancing 0.00 29 Sep 2014 0.12 0.00 0%

Grant 0410-MLD

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Sep 2014 09 Dec 2014 19 Jan 2015 30 Jun 2020 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 12.00 Cumulative Contract Awards
ADB 0.00 29 Sep 2014 0.00 3.77 31%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 12.00 29 Sep 2014 0.00 0.00 0%

Grant 0429-MLD

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Mar 2015 21 Aug 2015 24 Nov 2015 31 Dec 2019 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.00 Cumulative Contract Awards
ADB 0.00 19 Mar 2015 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 5.00 19 Mar 2015 0.00 0.00 0%

 
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