Tonga: Outer Island Renewable Energy Project

Sovereign Project | 43452-022

Summary

The proposed Tonga Outer Island Renewable Energy Project (the Project) will construct grid-connected Solar Photovoltaic (PV) power plants on the outer islands of Tonga, thereby demonstrating a method for reducing the country's heavy reliance on imported fossil fuels for power generation. The Project will supply secure, environmentally sustainable energy to households, schools, and other public facilities, on the islands of 'Eua, Ha'apai, and Vava'u. The Project will quantify the solar resource and facilitate the integration of intermittent renewable energy with a conventional diesel grid. The Project will build the capacity of the power utility, Tonga Power Limited (TPL), in the operation and maintenance of renewable technologies. Customers will be made aware of the importance of energy conservation and opportunities for passing cost savings to poor households by way of a subsidized tariff will be assessed during project preparation.

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Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name Outer Island Renewable Energy Project
Project Number 43452-022
Country Tonga
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0347-TON: Outer Island Renewable Energy Project
Asian Development Fund US$ 2.00 million
Grant 0348-TON: Outer Island Renewable Energy Project
Australian Grant US$ 4.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Sector / Subsector Energy - Renewable energy generation - solar
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed Tonga Outer Island Renewable Energy Project (the Project) will construct grid-connected Solar Photovoltaic (PV) power plants on the outer islands of Tonga, thereby demonstrating a method for reducing the country's heavy reliance on imported fossil fuels for power generation. The Project will supply secure, environmentally sustainable energy to households, schools, and other public facilities, on the islands of 'Eua, Ha'apai, and Vava'u. The Project will quantify the solar resource and facilitate the integration of intermittent renewable energy with a conventional diesel grid. The Project will build the capacity of the power utility, Tonga Power Limited (TPL), in the operation and maintenance of renewable technologies. Customers will be made aware of the importance of energy conservation and opportunities for passing cost savings to poor households by way of a subsidized tariff will be assessed during project preparation.
Project Rationale and Linkage to Country/Regional Strategy The government of Tonga set a target of reducing fossil fuel imports for power generation by 50% by 2020 and has developed an overall plan for the energy sector. The Tonga Energy Roadmap 2010-2020 outlines the improvements needed to reach the government's 2020 target, and covers petroleum supply chain initiatives, energy efficiency, and renewable energy technologies. The Roadmap was developed in very close collaboration with development partners and has been held up at regional meetings as an example of donor coordination. This project is identified as a high priority by the Roadmap and the Roadmap Implementation Unit has requested assistance with this project from ADB. Demarcation of this project has also been enhanced through discussions with government concerning the country partnership strategy and country operations business plan.
Impact Reduction of Tonga's dependence on imported fossil fuel for power generation
Project Outcome
Description of Outcome On-grid and off-grid generation systems are optimized and provide increased consumer access to electricity generated by solar power at a reduced cost
Progress Toward Outcome

i) On 25 March 2014, the implementing agency entered into contract with the Consultant, Sustainable Technology Resources PTE LTD (STR), with a value of US$750,000.

ii) The inception mission on 1-5 September 2014

Implementation Progress
Description of Project Outputs

1. Solar power. The project will construct and install solar power systems with a total capacity of 1.25 MWp on 9 outer islands of Tonga

2. Operation and maintenance knowledge transferred through training

3. Project implemented and managed efficiently

Status of Implementation Progress (Outputs, Activities, and Issues) On 25 March 2014, the implementing agency entered into contract with the Consultant, Sustainable Technology Resources PTE LTD (STR), with a value of US$750,000.
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design

Potential stakeholders include, but are not limited to (i) households and project beneficiaries, (ii) national government officials including Ministry of Finance, Office of Prime Minister, TERM Implementation Unit, Ministry of Lands, TPL (iii) local government officials including outer island administrations, (iv) development partners such as World Bank, European Union, UNDP, and the governments of Australia and New Zealand (v) contractors, (vi) community groups, and (vii) non-governmental organizations.

At the inception stage, a stakeholder analysis will be carried out to identify the primary and secondary stakeholders; their interests in the Project, their perceptions of current problems related to power generation, and electricity services. Consultation through workshops with all stakeholder groups will be undertaken during the implementation of the project preparatory TA and project processing. Care will be taken to ensure that community groups are well represented, not only by the community leaders but also by the poor, elderly, disabled and women, so that marginal people's voices are heard and not captured by the local elites.

During Project Implementation
Responsible ADB Officer Woo Lee
Responsible ADB Department Pacific Department
Responsible ADB Division Transport, Energy and Natural Resources Division, PARD
Executing Agencies
Ministry of Finance and National PlanningMINFIN@CANDW.TOVuna Road
Nuku'alofa
Kingdom of Tonga
Timetable
Concept Clearance 02 Dec 2011
Fact Finding 25 Jun 2012 to 06 Jul 2012
MRM 24 Aug 2012
Approval 27 Jun 2013
Last Review Mission -
Last PDS Update 18 Feb 2015

Grant 0347-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Jun 2013 02 Dec 2013 09 Jun 2014 30 Jun 2020 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2.30 Cumulative Contract Awards
ADB 2.00 27 Jun 2013 0.23 0.00 12%
Counterpart 0.30 Cumulative Disbursements
Cofinancing 0.00 27 Jun 2013 0.07 0.00 3%

Grant 0348-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Jun 2013 02 Dec 2013 09 Jun 2014 30 Jun 2020 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4.50 Cumulative Contract Awards
ADB 0.00 27 Jun 2013 0.00 1.58 35%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 4.50 27 Jun 2013 0.00 0.15 3%

Safeguard Documents

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Evaluation Documents

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