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Tonga: Outer Island Renewable Energy Project

Sovereign (Public) Project | 43452-022 Status: Active

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.

Project Details

Project Officer
King, Grace Pacific Department Request for information
Country
  • Tonga
Modality
  • Grant
  • Loan
Sector
  • Energy
 
Project Name Outer Island Renewable Energy Project
Project Number 43452-022
Country Tonga
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0347-TON: Outer Island Renewable Energy Project
concessional ordinary capital resources lending / Asian Development Fund US$ 2.00 million
Grant 0348-TON: Outer Island Renewable Energy Project
Government of Australia US$ 4.50 million
Grant 0444-TON: Outer Island Renewable Energy Project - Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 1.44 million
Grant 0445-TON: Outer Island Renewable Energy Project - Additional Financing
European Union US$ 3.57 million
Grant 0446-TON: Outer Island Renewable Energy Project - Additional Financing
ATF - Danida Grant US$ 750,000.00
Grant 0528-TON: Outer Island Renewable Energy Project - Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 2.50 million
Loan 3509-TON: Outer Island Renewable Energy Project - Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 2.50 million
Grant 0586-TON: Outer Island Renewable Energy Project-Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 5.50 million
Grant 0587-TON: Outer Island Renewable Energy Project Additional Financing
Global Environment Facility Grant US$ 2.64 million
Grant 0588-TON: Outer Island Renewable Energy Project-Additional Financing
Government of Australia US$ 740,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
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 Solar photovoltaic generators have been installed and connected to the existing electricity distribution networks - 0.2MWp on 'Eua, SCADA repair on Vava'u and 0.55MWP with 0.33MWp of batteries on Ha'apai. 6.5kWh of batteries across 130 SHS on Niuafo'ou and a complete solar system on the Health Clinic and 0.16MWp SHS in Niuatoputapu have been installed. 100% of the existing grid networks on 'Eua has been rehabilitated and works on 65% of the existing grid networks on Vava'u is ongoing. The installation and connection to existing community-owned and community-managed electrical mini-grids on 4 Ha'apai outer islands and one on the Niuas, as well as the upgrade of the existing service lines on the 4 Ha'apai outer islands and the construction of a new mini-grid on Niuatoputapu, are ongoing.
Implementation Progress
Description of Project Outputs

1. The project will construct and install solar power systems with a total capacity of 1.32 MWp on the outer islands of Tonga, and the existing grid network on the islands of Vava'u and 'Eua rehabilitated by TPL. (The rehabilitated grid network portions on Vava'u and 'Eua are expanded).

2. Operation and maintenance knowledge transferred through training.

3. Project implemented and managed efficiently

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

1. Solar photovoltaic generators have been installed and connected to the existing electricity distribution networks - 0.2MWp on 'Eua, SCADA repair on Vava'u and 0.55MWP with 0.33MWp of batteries on Ha'apai. 6.5kWh of batteries across 130 SHS on Niuafo'ou and a complete solar system on the Health Clinic and 0.16MWp SHS in Niuatoputapu have been installed.

The installation and connection to existing community-owned and community-managed electrical mini-grids on 4 Ha'apai outer islands and one on the Niuas, as well as the upgrade of the existing service lines on the 4 Ha'apai outer islands and the construction of a new mini-grid on Niuatoputapu, are ongoing.

100% of the existing grid network on 'Eua has been rehabilitated and works on 65% of the existing grid network on Vava'u is ongoing.

2. TPL asset management training completed 2015 and 2016; electric societies consumer training is part of the PMU's training program; electric societies asset management and demand side management training is part of the Phase 2 contract; O&M knowledge transfer through training is part of the MEIDECC-TPL contract for Phases 2 and 4.

3. Project Management Consultant Firm recruited Mar14; PMU Manager recruited Mar16; Social Gender Development and Safeguards Specialist recruited Dec17/resigned Jul19/replacement recruited Feb20; and Project Accountant recruited Jan19/resigned Nov19/replacement recruited Mar20. Monitoring and reporting are up-to-date.

Geographical Location 'Uiha Island, Eua, Ha'afeva, Ha'ano, Ha'apai, Niuafo'ou, Niuatoputapu Island, Nomuka Island, Vava'u
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 King, Grace
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Subregional Office in Suva, Fiji
Executing Agencies
Ministry of Finance
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 14 May 2020

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 31 Mar 2022 -
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 1.99 0.00 100%
Counterpart 0.30 Cumulative Disbursements
Cofinancing 0.00 27 Jun 2013 1.94 0.00 97%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

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 31 Mar 2022 -
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 4.50 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 4.50 27 Jun 2013 0.00 4.18 93%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

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 31 Mar 2022 -
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 1.43 0.00 100%
Counterpart 0.67 Cumulative Disbursements
Cofinancing 0.00 20 Oct 2015 1.43 0.00 99%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

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 31 Mar 2022 -
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 3.47 97%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 3.57 20 Oct 2015 0.00 2.97 83%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

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 31 Mar 2022 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.75 Cumulative Contract Awards
ADB 0.00 20 Oct 2015 0.00 0.75 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.75 20 Oct 2015 0.00 0.75 100%

Grant 0528-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Dec 2016 31 Jan 2017 28 Mar 2017 30 Jun 2020 31 Mar 2022 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 3.10 Cumulative Contract Awards
ADB 2.50 14 Dec 2016 1.93 0.00 77%
Counterpart 0.60 Cumulative Disbursements
Cofinancing 0.00 14 Dec 2016 1.92 0.00 77%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Grant 0586-TON

Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.50 Cumulative Contract Awards
ADB 5.50 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Grant 0587-TON

Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2.64 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 2.64 - 0.00 0.00 %

Grant 0588-TON

Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.74 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.74 - 0.00 0.00 %

Loan 3509-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Dec 2016 31 Jan 2017 28 Mar 2017 30 Jun 2020 31 Mar 2022 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2.50 Cumulative Contract Awards
ADB 2.50 14 Dec 2016 1.42 0.00 57%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 14 Dec 2016 1.41 0.00 56%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Outer Island Renewable Energy Project: Audited Project Financial Statements (July 2017-June 2018) Audited Project Financial Statements Jul 2019
Project Agreement for Outer Island Renewable Energy Project - Additional Financing Project/Program Agreements Aug 2018
Grant Agreement (Special Operations) for Grant 0586-TON: Outer Island Renewable Energy Project - Additional Financing Grant Agreement Aug 2018
Grant Agreement (Externally Financed - Global Environment Facility) for Grant 0587-TON: Outer Island Renewable Energy Project - Additional Financing Grant Agreement Aug 2018
Grant Agreement (Externally Financed - the Government of Australia) for Grant 0588-TON: Outer Island Renewable Energy Project - Additional Financing Grant Agreement Aug 2018
Outer Island Renewable Energy Project - Additional Financing Additional Financing (Cofinancing) Jul 2018
Outer Island Renewable Energy Project - Additional Financing: Project Administration Manual Project/Program Administration Manual Jul 2018
Outer Island Renewable Energy Project - Additional Financing: Procurement Plan Procurement Plans Jul 2018
Outer Island Renewable Energy Project - Additional Financing: Gender Action Plan Gender Action Plans Jul 2018
Outer Island Renewable Energy Project: Audited Project Financial Statements (July 2016-June 2017) Audited Project Financial Statements Jun 2018
Financing Agreement (Special Operations) for Loan 3509 and Grant 0528-TON: Outer Island Renewable Energy Project – Additional Financing Financing Agreement Jan 2017
Project Agreement for Loan 3509 and Grant 0528-TON: Outer Island Renewable Energy Project – Additional Financing Project/Program Agreements Jan 2017
Outer Island Renewable Energy Project: Audited Project Financial Statements (July 2015-June 2016) Audited Project Financial Statements Dec 2016
Outer Island Renewable Energy Project - Additional Financing: Report and Recommendation of the President Reports and Recommendations of the President Nov 2016
Outer Island Renewable Energy Project - Additional Financing: Project Administration Manual Project/Program Administration Manual Nov 2016
Outer Island Renewable Energy Project - Additional Financing: Gender Action Plan Gender Action Plans Nov 2016
Amendment to the Grant Agreement (Special Operations) for Grant 0347-TON: Outer Island Renewable Energy Project Grant Agreement Nov 2016
Outer Island Renewable Energy Project - Additional Financing: Procurement Plan Procurement Plans Oct 2016
Amendment to the Grant Agreement (Externally Financed) for Grant 0446-TON: Outer Island Renewable Energy Project - Additional Financing Grant Agreement Jun 2016
Outer Island Renewable Energy Project: Audited Project Financial Statements (February 2014-June 2015) Audited Project Financial Statements Dec 2015
Grant Agreement (Externally Financed) for Grant 0445-TON: Outer Island Renewable Energy Project (Additional Financing) Grant Agreement Oct 2015
Project Agreement for Outer Island Renewable Energy Project (Additional Financing) Project/Program Agreements 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
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): Gender Action Plan Gender Action Plans 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 Agreements 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 Project/Program Administration Manual Jun 2013
Outer Island Renewable Energy Project Gender Action Plans Jun 2013
Outer Island Renewable Energy Project Reports and Recommendations of the President 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.

Title Document Type Document Date
Outer Island Renewable Energy Project: Environmental and Social Monitoring Report (July-December 2019) Environmental and Social Monitoring Reports Feb 2020
Outer Island Renewable Energy Project: Environmental and Social Monitoring Report (January-June 2019) Environmental and Social Monitoring Reports Jul 2019
Outer Island Renewable Energy Project: Environmental and Social Monitoring Report (July- December 2018) Environmental and Social Monitoring Reports Jan 2019
Outer Island Renewable Energy Project: Environmental Monitoring Report (January-June 2018) Environmental and Social Monitoring Reports Jul 2018
Outer Island Renewable Energy Project - Additional Financing: Initial Environmental Examination Initial Environmental Examination Apr 2018
Outer Island Renewable Energy Project: Environmental and Social Monitoring Report (July-December 2017) Environmental and Social Monitoring Reports Jan 2018
Outer Island Renewable Energy Project: Environmental and Social Monitoring Report (January-June 2017) Environmental and Social Monitoring Reports Jul 2017
Outer Island Renewable Energy Project: Environmental and Social Monitoring Report (July-December 2016) Environmental and Social Monitoring Reports Dec 2016
Outer Island Renewable Energy Project: Environmental and Social Monitoring Report Environmental and Social Monitoring Reports Jul 2016
Outer Island Renewable Energy Project - Additional Financing: Power Distribution Network Upgrade Work in ‘Eua Island - Initial Environmental Examination Initial Environmental Examination Jun 2015
Outer Island Renewable Energy Project - Additional Financing: Power Distribution Network Upgrade Work in Vava’u Island - Initial Environmental Examination Initial Environmental Examination Jun 2015

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
MINI AND OFF-GRID SYSTEM FOR 5 OUTER ISLANDS Loan 3509 12 Sep 2018 GAMMA SOLUTIONS A (PCTEX) AV DE LAS CIENCIAS S/N CP1004 CACERES, ESPANA SPAIN Ministry of Finance and National Planning CONSTRUCTION 3,685,390.00 476,295.00