Marshall Islands : Improved Energy Supply for Poor Households
The project aims at supporting the Republic of the Marshall Islands (RMI) in expanding access to clean and affordable electricity for low-income households. The project consists of three components: (i) Component A: Improved access and management of electricity for the poor; (ii) Component B: Extended and improved supply of power to low-income households; and (iii) Component C: Use of local fuels in power generation to provide alternative incomes for the poor. Under component A and B 350 low income households, disconnected and never connected, received a pre-payment meter. Pre-payment meters help the households manage their electricity bill. A rigorous impact study in ongoing. Under component C, the Marshall Energy Company (MEC) is refurbishing one generator that will be fueled with a blend of coconut oil and diesel. The equipment has been procured and the supply contract for the coconut oil signed. The rehabilitation of MEC's generator is still ongoing.
Project Details
-
Project Officer
Trainor, James Michael
Pacific Department
Request for information -
Country/Economy
Marshall Islands -
Sector
- Energy
| Project Name | Improved Energy Supply for Poor Households | ||||
| Project Number | 43463-012 | ||||
| Country / Economy | Marshall Islands |
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| Project Status | Closed | ||||
| Project Type / Modality of Assistance | Grant |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Partnerships |
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| Sector / Subsector | Energy / Conventional energy generation |
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| Gender | Effective gender mainstreaming | ||||
| Description | The project aims at supporting the Republic of the Marshall Islands (RMI) in expanding access to clean and affordable electricity for low-income households. The project consists of three components: (i) Component A: Improved access and management of electricity for the poor; (ii) Component B: Extended and improved supply of power to low-income households; and (iii) Component C: Use of local fuels in power generation to provide alternative incomes for the poor. Under component A and B 350 low income households, disconnected and never connected, received a pre-payment meter. Pre-payment meters help the households manage their electricity bill. A rigorous impact study in ongoing. Under component C, the Marshall Energy Company (MEC) is refurbishing one generator that will be fueled with a blend of coconut oil and diesel. The equipment has been procured and the supply contract for the coconut oil signed. The rehabilitation of MEC's generator is still ongoing. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | Better management of electricity expenses and switch to a locally produced and clean fuel are objectives in line with ADB 2020 strategy. The project also fit within the Government's energy policy. |
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| Impact | The impact of the project is improved livelihoods from sustainable electricity. | ||||
| Project Outcome | |
|---|---|
| Description of Outcome | Increased access to electric power and income generating opportunities for the poor from sustainable power supplies. |
| Progress Toward Outcome | Work continued over the quarter to complete the repair of the fire-damaged concrete foundation supporting the generator, together with the repair of the service trenches and ancillary equipment foundations; all found to be in a worse state of disrepair that originally anticipated. |
| Implementation Progress | |
| Description of Project Outputs | Installation of prepayment meters for MEC customers. Connection of currently unserved poor households and improved power supply to poor areas in Majuro, Wotje, and Jaluit. Coconut Oil (CNO) - diesel blend used in MEC generators. |
| Status of Implementation Progress (Outputs, Activities, and Issues) | MEC has completed installation of 350 prepayment meters in the households of poor disconnected customers and previously unconnected poor households. Work continued over the quarter to complete the repair of the fire-damaged concrete foundation supporting the generator, together with the repair of the service trenches and ancillary equipment foundations; all found to be in a worse state of disrepair that originally anticipated. On completion of this work, cable trenches were covered with steel plating and a stable working platform erected above the trenches, which then permitted MEC staff to safely commence further dismantling of the engine for inspection and repairs. New foundation work for the CNO processing equipment and the installation of this equipment was also carried out during the quarter. Awareness campaign managed by MEC through leaflet distribution and community education Component dropped as customers were below than expected. Funding relocated to the rehabilitation of MEC generator Ongoing Ongoing |
| Geographical Location | |
| Safeguard Categories | |
|---|---|
| Environment | |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | Converting power generation from diesel alone to CNO blends will improve the environmental sustainability of the power sector as it reduces the use of fossil fuels and improve and emissions such as carbon dioxide and sulfur dioxide. Improved energy efficiency from improved household energy management will also reduce emissions from electricity generation. The project is anticipated to reduce emissions of carbon dioxide by 7,500 tons equivalent annually. |
| Involuntary Resettlement | No impacts. |
| Indigenous Peoples | The project will not involve issues of indigenous peoples. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Project design has included extensive consultation with stakeholders, including government officials, power utility representatives, NGOs, business groups, and power customers. All components have been proposed by national counterparts, and all components are included in the recently approved National Energy Policy, and the Energy Action Plan. The project management unit will be in MEC. |
| During Project Implementation | The project has been implemented in close collaboration with MEC and the Ministry of Resource and Development. |
| Business Opportunities | |
|---|---|
| Consulting Services | Consulting services. 3 individual contracts: (i) Social and Gender Specialist; (ii) Biofuel Specialist; and (iii) Electrical Engineer, have been awarded under the Grant. No candidates found for national social specialist. |
| Procurement | MEC11-1: Pielstick Engine Upgrade & Modification (estimated value $415,000). Deadline for accepting bid is on 1 February 2012. MEC11-1 Lot 1: Pielstick 10PC 2.2V MK5 Diesel Generator Parts (lowest bid $249,364.610). Contract was issued on 17 October 2011, with PCSS No. G07234. MEC11-2: Prepayment Meters and Vending System (lowest bid $221,097). Contract was issued on 2 September 2011, with PCSS No. G06917. MEC 11-4: Coconut Oil Processing Equipment & Laboratory Test Equipment: Invitation for Bids was released on 10 January 2012. Deadline for Bids submission is on 14 March 2012. |
| Responsible ADB Officer | Trainor, James Michael |
| Responsible ADB Department | Pacific Department |
| Responsible ADB Division | Transport, Energy and Natural Resources Division, PARD |
| Executing Agencies |
Ministry of Resources and Development Project Management Office P.O. Box 3059, Majuro Marshall Islands 96960 |
| Timetable | |
|---|---|
| Concept Clearance | 30 Oct 2009 |
| Fact Finding | 16 Nov 2009 to 26 Nov 2009 |
| MRM | 31 May 2009 |
| Approval | 06 Aug 2010 |
| Last Review Mission | - |
| Last PDS Update | 30 Sep 2013 |
Grant 9148-RMI
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 06 Aug 2010 | 08 Sep 2010 | 08 Sep 2010 | 31 Dec 2012 | 31 Jan 2014 | 09 Jun 2014 |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 1.76 | Cumulative Contract Awards | |||
| ADB | 0.00 | 17 Jun 2022 | 0.00 | 1.73 | 98% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 1.76 | 17 Jun 2022 | 0.00 | 1.73 | 98% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | - | - | Satisfactory | - | 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.
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| Title | Document Type | Document Date |
|---|---|---|
| Improved Energy Supply for Poor Households | Grant Assistance Reports | Jul 2010 |
| Improved Energy Supply for Poor Households | Procurement Plans | Jul 2010 |
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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Lightening Up the Lives of Low-Income Families in the Marshall Islands
A refurbished power generator converted to use biofuel from coconut promises to improve energy supply in the Marshall Islands' atoll of Majuro, lightening up the lives of low-income families.
Tenders
Contracts Awarded
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Improved Energy Supply for Poor Households | Procurement Plans | Jul 2010 |