Project Name Renewable Energy Development Project (additional financing)
Project Number 49450-027
Country / Economy Micronesia, Federated States of
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0813-FSM: Renewable Energy Development Project (additional financing)
Asian Development Fund US$ 4.00 million
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP6: Strengthening governance and institutional capacity
OP7: Fostering regional cooperation and integration
Sector / Subsector

Energy / Energy utility services

Gender Some gender elements
Description The additional financing project will expand the ongoing project to support disaster risk reduction (DRR) measures for the energy sector in the FSM and covers all four states: Yap, Kosrae, Pohnpei, and Chuuk. It will also finance the second year of implementation support for the SMO for the PUC.
Project Rationale and Linkage to Country/Regional Strategy The FSM comprises more than 600 islands spread across the western Pacific Ocean and has a population of about 105,000. It is made up of four island states: Chuuk, Kosrae, Pohnpei, and Yap. The gross domestic product is about $401 million. The FSM entered a Compact of Free Association with the United States in 1986 and has received large external financial transfers to support the operations of the Government of the FSM and substantial public sector investment at the state level, including in energy infrastructure. However, lack of adequate maintenance budgeting and practices have allowed the infrastructure to deteriorate. Each of FSM's states enjoys significant autonomy, with power devolved from the central government to each of the states to manage their own internal affairs, including provision of many public services such as electricity service.
Impact

Sustainable social and economic development of the FSM promoted through the provision and utilization of cost-effective, safe, reliable, and sustainable energy services

Project Outcome
Description of Outcome

Sustainable generation and utilization of renewable energy in Yap, Kosrae, Chuuk, and Pohnpei increased

Progress Toward Outcome Draft RFQ was submitted to ADB in April 2021 for review. It was returned to IA for revision. Expected CA is Q3 2021.
Implementation Progress
Description of Project Outputs

Output 1 Solar photovoltaic and mini grid in Kosrae installed

Output 2 Solar photovoltaic and BESS installed with system integration upgraded in Yap

Output 3 Pohnpei Utilities Corporation Strengthened

Output 4 Efficient project management delivered and implementing agency capacity developed

Output 5 : Disaster resilience of the energy sector utilities improved

(5.2 GIS mapping of all 4 electricity utilities completed in the main states in the FSM and information used for operations, maintenance, planning and emergency response (2020 Baseline: not applicable) (OP 2.1.4))

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

Review of Bid Evaluation Report by ADB is ongoing. Expected CA is within June-July 2021.

Review of Bid Evaluation Report by ADB is ongoing. Expected CA is within June-July 2021.

Review of Bid Evaluation Report by ADB is ongoing. Expected CA is within June-July 2021.

Review of Bid Evaluation Report by ADB is ongoing. Expected CA is within June-July 2021.

Review of Bid Evaluation Report by ADB is ongoing. Expected CA is within June-July 2021.

Review of Bid Evaluation Report by ADB is ongoing. Expected CA is within June-July 2021.

Planned for 2022-2023.

Planned for 2022-2023.

ADB's Review of RFQ is ongoing. Expected CA is Q3 2021.

ADB's Review of RFQ is ongoing. Expected CA is Q3 2021.

ADB's Review of RFQ is ongoing. Expected CA is Q3 2021.

ADB's Review of RFQ is ongoing. Expected CA is Q3 2021.

ADB's Review of RFQ is ongoing. Expected CA is Q3 2021.

Contract for Supplemental Management Operations was awarded in February 2021. Consultant has commenced work.

Contract for Supplemental Management Operations was awarded in February 2021. Consultant has commenced work.

Contract for Supplemental Management Operations was awarded in February 2021. Consultant has commenced work.

Contract for PIC was awarded in Feb 2021.

Geographical Location Nation-wide
Safeguard Categories
Environment C
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
During Project Implementation
Business Opportunities
Consulting Services

Package 3-SMO Consultants ($0.7 million-Pohnpei, Q1 2023).

Package 4-DRR Consulting Services ($1.0 million, published in Q2 2022; expected contract award Q1 2023).

Procurement Package 2-O&M Equipment and Spares for Reserves ($2.3 million, Shopping, Q3 2023)
Responsible ADB Officer George, Len V.
Responsible ADB Department Sectors Group
Responsible ADB Division Energy Sector Office (SG-ENE)
Executing Agencies
Department of Finance and Administration
Timetable
Concept Clearance 25 Dec 2021
Fact Finding 21 Sep 2020 to 09 Oct 2020
MRM 12 Nov 2021
Approval 08 Dec 2021
Last Review Mission -
Last PDS Update 26 Oct 2022

Grant 0813-FSM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2021 17 Dec 2021 02 Mar 2023 31 Dec 2025 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4.20 Cumulative Contract Awards
ADB 4.00 27 Oct 2023 0.78 0.00 19%
Counterpart 0.20 Cumulative Disbursements
Cofinancing 0.00 27 Oct 2023 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - -
 
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Source URL: https://www.adb.org/projects/49450-027/main