43452-024: Outer Island Renewable Energy Project - Additional Financing | Asian Development Bank

Tonga: Outer Island Renewable Energy Project - Additional Financing

Sovereign (Public) Project | 43452-024 Status: Active

To expand the scale of the current project and deliver greater benefits by reducing power distribution losses, the government has asked ADB for a loan and a grant of $2.5 million each from ADB's Special Funds resources to expand the on-going grid rehabilitation works from 80% to 100% and from 20% to 50% of existing grid networks on Eua and Vava'u.



The additional financing component will enhance the current project's original design and add effective support for its development of the solar photovoltaic plants one of the government's key priorities. The additional financing component will enhance the outcome and impact of the project, as well as ADB's contribution to power sector development in Tonga.

 
Project Name Outer Island Renewable Energy Project - Additional Financing
Project Number 43452-024
Country
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0528-: Outer Island Renewable Energy Project - Additional Financing
Concessional ordinary capital resources / Asian Development Fund US$ 2.50 million
Loan 3509-: Outer Island Renewable Energy Project - Additional Financing
Concessional ordinary capital resources / Asian Development Fund US$ 2.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Private sector development
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming Effective gender mainstreaming
Description
Project Rationale and Linkage to Country/Regional Strategy

To expand the scale of the current project and deliver greater benefits by reducing power distribution losses, the government has asked ADB for a loan and a grant of $2.5 million each from ADB's Special Funds resources to expand the on-going grid rehabilitation works from 80% to 100% and from 20% to 50% of existing grid networks on Eua and Vava'u.



The additional financing component will enhance the current project's original design and add effective support for its development of the solar photovoltaic plants one of the government's key priorities. The additional financing component will enhance the outcome and impact of the project, as well as ADB's contribution to power sector development in Tonga.

Impact

Current project

Reduction of Tonga's dependence on imported fossil fuel for power generation.

Overall project

Unchanged

Project Outcome
Description of Outcome

Current project

On-grid and off-grid generation systems are optimized and provide increased consumer access to electricity generated by solar power at a reduced cost.

Overall project

Unchanged

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Current project

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

Overall project

In addition to the current project output 1, the rehabilitated grid network portions on Vava'u and 'Eua are expanded.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The two areas to be affected by activities under the additional financing are classified as category B for the environment. Initial environmental examinations were prepared in accordance with ADB's Safeguard Policy Statement (2009). No significant environmental impacts will result from the implementation of the overall project.
Involuntary Resettlement The proposed additional financing is category C for involuntary resettlement and indigenous peoples per ADB's Safeguard Policy Statement (2009). The increased rehabilitation of the grid in Eua and Vava'u will be carried out through the replacement of existing power distribution assets located on public land. The due diligence, including stakeholder consultations, confirmed that it will not require any additional land, displace people, and impact on any assets and livelihood. No distinct and vulnerable indigenous peoples will be affected. All the activities in the overall project will be implemented in a culturally appropriate and participatory manner.
Indigenous Peoples Not applicable.
Stakeholder Communication, Participation, and Consultation
During Project Design

Participatory approaches and project activities: Consultations were held at all of the nine proposed project sites and at the national level for the overall project. Surveys were conducted, and consultations were held through key informant interviews and focus group discussions.

Consultations focused particularly on community leaders, including district and town officers, church leaders, government officers on the islands, women's groups (including village women's associations), and representatives from households that had been disconnected from electrical grids. At the national level, consultations were conducted with representatives from the Ministry of Finance and National Planning, MEIDECC, the Prime Minister's Office, the energy road map implementation unit; the Ministry of Lands, TPL, local government officials, including outer island administrators, and development partners such as the European Union, the governments of Australia and New Zealand, the World Bank, and the United Nations Development Program. Further consultations through meetings and focus group discussions were undertaken as part of the preparation for the additional financing for Eua and Vava'u. They involved the same key stakeholders such as representatives of the government, the private sector, hospitals and schools, civil society organizations and community and household groups.

The overall project design process has included stakeholder consultation with civil society organizations. Civil society organizations will be included in ongoing consultations during design finalization and project implementation.

Participation Plans: Consultation and participation plans are built into the project's gender action plan. Beneficiary communities and local leaders, including community leaders and government officials, will be consulted throughout the project cycle. Consultation with female and male beneficiaries in communities benefitting from the project will be continued during implementation, and monitoring through interviews, focus group discussions, and community meetings.

During Project Implementation Project not yet effective.
Responsible ADB Officer Fay, David R.
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Subregional Office in Suva, Fiji
Executing Agencies
Ministry of Finance and National Planning
Vuna Road
Nuku'alofa
Kingdom of Tonga
Timetable
Concept Clearance -
Fact Finding 08 Aug 2016 to 12 Aug 2016
MRM 28 Sep 2016
Approval 14 Dec 2016
Last Review Mission -
Last PDS Update 14 Mar 2017

Grant 0528-

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Dec 2016 31 Jan 2017 28 Mar 2017 30 Jun 2020 - -
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 0.26 0.00 10%
Counterpart 0.60 Cumulative Disbursements
Cofinancing 0.00 14 Dec 2016 0.00 0.00 0%

Loan 3509-

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Dec 2016 31 Jan 2017 28 Mar 2017 30 Jun 2020 - -
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 0.19 0.00 8%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 14 Dec 2016 0.00 0.00 0%

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.

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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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