fbpx 43452-026: Outer Island Renewable Energy Project (4th Additional Financing) | Asian Development Bank

Tonga: Outer Island Renewable Energy Project (4th Additional Financing)

Sovereign (Public) Project | 43452-026 Status: Active

Government of Australia (GOA) proposes to increase funding of its original cofinancing, to expand the project benefits.

Project Details

Project Officer
King, Grace Pacific Department Request for information
Country
  • Tonga
Sector
  • Energy
 
Project Name Outer Island Renewable Energy Project (4th Additional Financing)
Project Number 43452-026
Country Tonga
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0768-TON: Outer Islands Renewable Energy Project (4th Additional Financing)
Government of Australia US$ 1.91 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Partnerships
Private sector development
Sector / Subsector

Energy / Energy sector development and institutional reform

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

Government of Australia (GOA) proposes to increase funding of its original cofinancing, to expand the project benefits.

Output 1 of the ongoing project is to construct and install solar power systems with a total capacity of 1.32 MWp on 9 outer islands of Tonga and to rehabilitate existing electricity distribution network on the islands of Vava'u and Eua by TPL. Under the first additional financing (Grant Nos. 0444 and 0445), 80% of the existing electricity distribution network on Eua and 20% of the Vava'u electricity distribution network, was to be completed. Under the second additional financing (Grant No. 0528 and Loan No. 3509), 100% of Eua and 50% of Vava'u electricity distribution networks were to be completed. The rehabilitation on Eua network was completed in May 2017 however there were delays with the rehabilitation works on Vava'u due to Cyclone Gita which struck Tonga in February 2018. Under the three grants and the loan that are funding these rehabilitation works, there are savings of $1.77 million, which will be used to expand coverage on Vava'u to 85%. The proposed additional cofinancing will fund the 100% completion of the rehabilitation work of the Vava'u electricity distribution network.

Project Rationale and Linkage to Country/Regional Strategy

Effective project management services are ongoing and the additional cofinancing will fund additional project management services for overall supervision and project administration work. The contract for project management unit consultants will be extended, based on the current unit rates. The additional cofinancing will also fund a reserve to absorb the foreign exchange fluctuations.

The proposed additional cofinancing is considered appropriate because the overall project remains technically feasible, economically viable, and financially sound; is accorded high priority by the government; is consistent with the project's development objectives, the current Pacific Approach and the current ADB country operations business plan. The proposed additional cofinancing is in line with the objectives of ADB's 2009 Energy Policy to promote energy efficiency and renewable energy, provide access to energy for all, and support reform, capacity building, and improved governance in the energy sector. The proposed additional cofinancing will expand the project benefits, which will ensure that the project's impact and outcome will be achieved.

Impact

i) The impact of the ongoing project is Tonga's dependence on imported fossil fuel for power generation is reduced and the outcome of the project is on-grid and off-grid generation systems are optimized and provide increased consumer access to electricity generated by solar power at a reduced cost.

ii) The project is accorded high priority by the government and consistent with the project's development objectives; the Pacific Approach, 2016 2020; and the country operations business plan, 2017 2019 for Tonga.

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
Implementation Progress
Description of Project Outputs xx
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
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
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 05 Apr 2022
Fact Finding 16 May 2020 to 16 May 2020
MRM 28 Jun 2020
Approval 01 Dec 2020
Last Review Mission -
Last PDS Update 16 Dec 2020

Grant 0768-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
01 Dec 2020 14 Dec 2020 16 Dec 2020 31 Jul 2022 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2.10 Cumulative Contract Awards
ADB 0.00 01 Dec 2020 0.00 1.23 64%
Counterpart 0.19 Cumulative Disbursements
Cofinancing 1.91 01 Dec 2020 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

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Related Publications

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Tenders

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Contracts Awarded

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Procurement Plan

None currently available.