Marshall Islands: Improved Energy Supply for Poor Households

Sovereign Project | 43463-012

Summary

The project aims at supporting the Republic of the Marshall Islands (RMI) in expanding access to clean and affordable electricity for low-income households. The project consists of three components: (i) Component A: Improved access and management of electricity for the poor; (ii) Component B: Extended and improved supply of power to low-income households; and (iii) Component C: Use of local fuels in power generation to provide alternative incomes for the poor. Under component A and B 350 low income households, disconnected and never connected, received a pre-payment meter. Pre-payment meters help the households manage their electricity bill. A rigorous impact study in ongoing. Under component C, the Marshall Energy Company (MEC) is refurbishing one generator that will be fueled with a blend of coconut oil and diesel. The equipment has been procured and the supply contract for the coconut oil signed. The rehabilitation of MEC's generator is still ongoing.

Latest Project Documents


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Project Name Improved Energy Supply for Poor Households
Project Number 43463-012
Country Marshall Islands
Project Status Closed
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 9148-RMI: Improved Energy Supply for Poor Households
Japan Fund for Poverty Reduction US$ 1.76 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Sector / Subsector Energy - Conventional energy generation
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project aims at supporting the Republic of the Marshall Islands (RMI) in expanding access to clean and affordable electricity for low-income households. The project consists of three components: (i) Component A: Improved access and management of electricity for the poor; (ii) Component B: Extended and improved supply of power to low-income households; and (iii) Component C: Use of local fuels in power generation to provide alternative incomes for the poor. Under component A and B 350 low income households, disconnected and never connected, received a pre-payment meter. Pre-payment meters help the households manage their electricity bill. A rigorous impact study in ongoing. Under component C, the Marshall Energy Company (MEC) is refurbishing one generator that will be fueled with a blend of coconut oil and diesel. The equipment has been procured and the supply contract for the coconut oil signed. The rehabilitation of MEC's generator is still ongoing.
Project Rationale and Linkage to Country/Regional Strategy

Better management of electricity expenses and switch to a locally produced and clean fuel are objectives in line with ADB 2020 strategy.

The project also fit within the Government's energy policy.

Impact The impact of the project is improved livelihoods from sustainable electricity.
Project Outcome
Description of Outcome Increased access to electric power and income generating opportunities for the poor from sustainable power supplies.
Progress Toward Outcome Work continued over the quarter to complete the repair of the fire-damaged concrete foundation supporting the generator, together with the repair of the service trenches and ancillary equipment foundations; all found to be in a worse state of disrepair that originally anticipated.
Implementation Progress
Description of Project Outputs

Installation of prepayment meters for MEC customers.

Connection of currently unserved poor households and improved power supply to poor areas in Majuro, Wotje, and Jaluit.

Coconut Oil (CNO) - diesel blend used in MEC generators.

Status of Implementation Progress (Outputs, Activities, and Issues)

MEC has completed installation of 350 prepayment meters in the households of poor disconnected customers and previously unconnected poor households.

Work continued over the quarter to complete the repair of the fire-damaged concrete foundation supporting the generator, together with the repair of the service trenches and ancillary equipment foundations; all found to be in a worse state of disrepair that originally anticipated.

On completion of this work, cable trenches were covered with steel plating and a stable working platform erected above the trenches, which then permitted MEC staff to safely commence further dismantling of the engine for inspection and repairs.

New foundation work for the CNO processing equipment and the installation of this equipment was also carried out during the quarter.

Awareness campaign managed by MEC through leaflet distribution and community education

Component dropped as customers were below than expected. Funding relocated to the rehabilitation of MEC generator

Ongoing

Ongoing

Geographical Location
Safeguard Categories
Environment
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Converting power generation from diesel alone to CNO blends will improve the environmental sustainability of the power sector as it reduces the use of fossil fuels and improve and emissions such as carbon dioxide and sulfur dioxide. Improved energy efficiency from improved household energy management will also reduce emissions from electricity generation. The project is anticipated to reduce emissions of carbon dioxide by 7,500 tons equivalent annually.
Involuntary Resettlement No impacts.
Indigenous Peoples The project will not involve issues of indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design Project design has included extensive consultation with stakeholders, including government officials, power utility representatives, NGOs, business groups, and power customers. All components have been proposed by national counterparts, and all components are included in the recently approved National Energy Policy, and the Energy Action Plan. The project management unit will be in MEC.
During Project Implementation The project has been implemented in close collaboration with MEC and the Ministry of Resource and Development.
Business Opportunities
Consulting Services Consulting services. 3 individual contracts: (i) Social and Gender Specialist; (ii) Biofuel Specialist; and (iii) Electrical Engineer, have been awarded under the Grant. No candidates found for national social specialist.
Procurement

MEC11-1: Pielstick Engine Upgrade & Modification (estimated value $415,000). Deadline for accepting bid is on 1 February 2012.

MEC11-1 Lot 1: Pielstick 10PC 2.2V MK5 Diesel Generator Parts (lowest bid $249,364.610). Contract was issued on 17 October 2011, with PCSS No. G07234.

MEC11-2: Prepayment Meters and Vending System (lowest bid $221,097). Contract was issued on 2 September 2011, with PCSS No. G06917.

MEC 11-4: Coconut Oil Processing Equipment & Laboratory Test Equipment: Invitation for Bids was released on 10 January 2012. Deadline for Bids submission is on 14 March 2012.

Responsible ADB Officer J. Michael Trainor
Responsible ADB Department Pacific Department
Responsible ADB Division Transport, Energy and Natural Resources Division, PARD
Executing Agencies
Ministry of Resources and DevelopmentProject Management Office
P.O. Box 3059, Majuro
Marshall Islands 96960
Timetable
Concept Clearance 30 Oct 2009
Fact Finding 16 Nov 2009 to 26 Nov 2009
MRM 31 May 2009
Approval 06 Aug 2010
Last Review Mission -
Last PDS Update 30 Sep 2013

Grant 9148-RMI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Aug 2010 08 Sep 2010 08 Sep 2010 31 Dec 2012 31 Jan 2014 09 Jun 2014
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1.76 Cumulative Contract Awards
ADB 0.00 06 Aug 2010 0.00 1.73 98%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 1.76 06 Aug 2010 0.00 1.73 98%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - -
Title Document Type Document Date
Improved Energy Supply for Poor Households Grant Assistance Reports Jul 2010
Improved Energy Supply for Poor Households Procurement Plans Jul 2010

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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