Tonga: Outer Island Renewable Energy Project

Sovereign Project | 43452-022 Status: Approved

Summary

ADB is helping construct solar power plants on the outer islands of Tonga. The project will install grid-connected solar photovoltaic power systems with a total capacity of 1.25 megawatts peak on nine outer islands. It will also build the capacity of the power utility, Tonga Power Limited, in the operation and maintenance of renewable technologies.

Latest Project Documents

Consulting Notices

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Title Deadline
Project Management Unit Manager 15 Feb 2016

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
Grant 0445-TON: Outer Island Renewable Energy Project
TON:Outer Island Recewable Energy Projct US$ 3.57 million
Grant 0444-TON: Outer Island Renewable Energy Project - Additional Financing
Asian Development Fund US$ 1.44 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

There are no technical issues/problems to report.

Project are currently on-track after the adjustment made in the contract awards and disbursements in June 2015.

A minor change in the project scope and implementation arrangements was approved in June 2015 to reflect (i) increase capacity of the mini-grid system on 'Uiha, and Ha'afeva considering more potential consumers on these islands; (ii) an off-grip solar home systems (SHS) 0.16 MWp will be installed on Niuatoputapu instead of connecting 0.15 MWp of solar power capacity to a newly installed distribution system due to the lack of proper grid network and increase SHS capacity on Niuafo'ou from 20 kWp to 23 kWp; and (iii) for the on-grip component - a repair. documentation training and improvement program for Vava'u will be provided in lieu of connecting 0.4 MWp solar photovoltaic generators to existing electricity distribution networks on Vava'u. The project will also increase capacity of Hapa'ai (Lifuka) to 550 kWp (from 200 kWp) coupled with large AC storage devices (batteries and battery inverters) to achieve the target of 50% renewable energy on Hapa'ai. The total capacity of the Project is expected to rise to about 1.32 MWp by optimizing each project cost component.

The Tonga Energy Road Map (TERM) Implementation Unit was merged into the Energy Department (ED) and all staff and resources of the TERM Agency were absorbed by ED. The government proposed continuing the implementation of the mini/off-grid component by ED. The on-grid part will be continually implemented by TPL. Both on-grid and mini/off-grid components will be implemented with assistance from Project Management Consultants.

The turnkey package for the procurement of 200kWp Solar Photovoltaic in 'Eua Island and 550 kWp of Solar PV Hybrid Plant in Lifuka Island was advertised in May and submission of bids was completed on 23 July 2015. Awaiting Bid Evaluation Report.

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 The project is classified as environmental category B. Initial environmental examinations have been prepared in accordance with ADB's Safeguard Policy Statement (2009). No significant impacts will result from the implementation of the proposed project.
Involuntary Resettlement The project has been classified as category C for involuntary resettlement and indigenous peoples under ADB's Safeguard Policy Statement. The project is not expected to inolve land acquisition or restrictions on land use or access to designated parks or protected areas. The project facilities will be constructed in existing locations or on land owned by the government, TPL, or the individual owners of project facilities. No third party or persons will be adversely affected.
Indigenous Peoples The project is not expected to impact any distinct and vulnerable group of indigenous peoples, as defined under ADB's Safeguard Policy Statement. the beneficiaries in the project sites are part of mainstream Polynesian society and are not considered to be distinct from the mainstream society. They are not discriminated against due to their language, skin color, or education level and do not require protection or special attention from the project. All project outputs will be delivered in a culturally appropriate, participatory manner.
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 Yul Lee
Responsible ADB Department Pacific Department
Responsible ADB Division Transport, Energy and Natural Resources Division, PARD
Executing Agencies
Ministry of Finance and National Planning
MINFIN@CANDW.TO
Vuna 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 24 Sep 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 0.15 0.00 7%

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 0.34 7%

Grant 0444-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Oct 2015 30 Oct 2015 13 Nov 2015 30 Jun 2020 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2.11 Cumulative Contract Awards
ADB 1.44 20 Oct 2015 0.28 0.00 19%
Counterpart 0.67 Cumulative Disbursements
Cofinancing 0.00 20 Oct 2015 0.00 0.00 0%

Grant 0445-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Oct 2015 30 Oct 2015 13 Nov 2015 30 Jun 2020 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 3.57 Cumulative Contract Awards
ADB 0.00 20 Oct 2015 0.00 0.69 19%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 3.57 20 Oct 2015 0.00 0.00 0%

Grant 0446-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Oct 2015 30 Oct 2015 13 Nov 2015 30 Jun 2020 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.00 Cumulative Contract Awards
ADB 0.00 20 Oct 2015 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 20 Oct 2015 0.00 0.00 0%
Title Document Type Document Date
Outer Island Renewable Energy Project: Audited Project Financial Statements (February 2014-June 2015) Audited Project Financial Statements Dec 2015
Project Agreement for Outer Island Renewable Energy Project (Additional Financing) Project/Program Agreement Oct 2015
Grant Agreement (Externally Financed) for Grant 0446-TON: Outer Island Renewable Energy Project (Additional Financing) Grant Agreement Oct 2015
Grant Agreement (Special Operations) for Grant 0444-TON: Outer Island Renewable Energy Project (Additional Financing) Grant Agreement Oct 2015
Grant Agreement (Externally Financed) for Grant 0445-TON: Outer Island Renewable Energy Project (Additional Financing) Grant Agreement Oct 2015
Outer Island Renewable Energy Project (Additional Financing): Gender Action Plan Gender Action Plans Sep 2015
Outer Island Renewable Energy Project (Additional Financing): Report and Recommendation of the President Reports and Recommendations of the President Sep 2015
Outer Island Renewable Energy Project (Additional Financing): Project Administration Manual Project/Program Administration Manual Sep 2015
Outer Island Renewable Energy Project (Additional Financing): Procurement Plan Procurement Plans Jul 2015
Outer Island Renewable Energy Project: Procurement Plan Procurement Plans Jun 2015
Project Agreement for Outer Island Renewable Energy Project Project/Program Agreement Dec 2013
Grant Agreement (Externally Financed) for Outer Island Renewable Energy Project Grant Agreement Dec 2013
Grant Agreement (Special Operations) for Outer Island Renewable Energy Project Grant Agreement Dec 2013
Outer Island Renewable Energy Project Reports and Recommendations of the President Jun 2013
Outer Island Renewable Energy Project Project/Program Administration Manual Jun 2013
Outer Island Renewable Energy Project Gender Action Plans Jun 2013

Safeguard Documents

See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents

See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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