Project Name Pacific Renewable Energy Investment Facility (formerly Pacific Renewable Energy and Energy Efficiency Investment Facility)
Project Number 49450-004
Country / Economy Regional
Cook Islands
Micronesia, Federated States of
Marshall Islands
Solomon Islands
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0001-REG: Pacific Renewable Energy and Energy Efficiency Investment Facility
Asian Development Fund US$ 80.00 million
Loan 0001-REG: Pacific Renewable Energy and Energy Efficiency Investment Facility
Concessional ordinary capital resources lending US$ 110.00 million
Loan 0001-REG: Pacific Renewable Energy Investment Facility (formerly Pacific Renewable Energy and Energy Efficiency Investment Facility)
Ordinary capital resources US$ 10.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Energy / Energy sector development and institutional reform

Gender No gender elements
Description The majority of Pacific Small Island Developing States (SIDS) are heavily dependent on diesel for power generation which has resulted in high electricity tariffs. The average supply cost for electricity across the Pacific is about $0.45/kilo-watt hour (kWh), which is high by international standards._The high cost of electricity is negatively impacting economic growth. Over reliance on imported fuel also depletes limited foreign reserves and exposes the SIDS economies to diesel price spikes. The proposed investment facility in renewable energy will target eleven smaller Pacific SIDS. Ten of the participating SIDS, except for Solomon Islands, are among the world's 25 smallest countries by population size. Total population of the eleven countries is less than 1.5 million.
Project Rationale and Linkage to Country/Regional Strategy Pacific SIDS have recognized the need to structurally shift power generation from diesel to renewable energy and all have aggressive national renewable energy targets, in some cases of up to 100%. The SIDS are endowed with cost-competitive renewable energy resources. However, the lack of access to adequate funding has limited the uptake of renewable energy. In order to fill the financing gap, Pacific SIDS are attracting independent power providers to invest in the sector amid significant barriers to entry of the private sector. Additionally, Pacific SIDS face significant capacity barriers to plan, design, implement and manage renewable energy investments. Continuous sector reform is also required to encourage the structural shift.

Improved regional energy security in the Pacific.

Project Outcome
Description of Outcome

Increased generation of lower cost, reliable, and clean energy

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Renewable energy generation plants put into operation by Pacific SIDS

Transmission and distribution constructed or rehabilitated by Pacific SIDS

Efficiency of X diesel power systems improved by Pacific SIDS

Energy sector reform undertaken in seven Pacific SIDS

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Regional
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples A
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Tiangco, Cinderella C.
Responsible ADB Department Pacific Department
Responsible ADB Division PAEN
Executing Agencies
Asian Development Bank
Concept Clearance 24 Nov 2016
Fact Finding 18 Oct 2016 to 18 Oct 2016
MRM 28 Apr 2017
Approval 22 Jun 2017
Last Review Mission -
Last PDS Update 29 Sep 2017

LoanĀ 0001-REG

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 200.00 Cumulative Contract Awards
ADB 200.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %
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