46044-003: Renewable Energy Development and Power Sector Rehabilitation Project - Additional Financing | Asian Development Bank

Samoa: Renewable Energy Development and Power Sector Rehabilitation Project - Additional Financing

Sovereign (Public) Project | 46044-003 Status: Approved

The Asian Development Bank is helping Samoa develop renewable energy resources to cut dependence on imported diesel for electricity generation. The project is financing the construction and rehabilitation of small hydropower plants on two islands, and training staff of the state-owned Electric Power Corporation to maintain them. The additional finance supports the Fuluasou plant on Upolu Island.

Project Details

Project Officer
Woo Yul Lee Pacific Department Request for information
Country
  • Samoa
Modality
  • Grant
Sector
  • Energy
 
Project Name Renewable Energy Development and Power Sector Rehabilitation Project - Additional Financing
Project Number 46044-003
Country
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0456-: Renewable Energy Development and Power Sector Rehabilitation Project - Additional Financing
European Union US$ 5.06 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Sector / Subsector

Energy - Energy sector development and institutional reform

Gender Equity and Mainstreaming Some gender elements
Description

On 15 November 2013, the Board of Directors of the Asian Development Bank (ADB) approved grant financing of $18.21 million from ADB's Special Fund resources and the administration of a grant of $1.00 million provided by the Multi-Donor Clean Energy Fund under the Clean Energy Financing Partnership Facility for the Renewable Energy Development and Power Sector Rehabilitation Project. The Government of Samoa provided a contribution equivalent to $4.62 million to bring the total investment cost to $23.83 million. The grants became effective on 26 May 2014 and the inception mission was held from 21 to 29 July 2014. The ongoing grants are expected to close on 30 June 2019.

The impact of the current project will be increased energy security. The outcome will be that customers have access to a higher share of electricity generated by hydropower. The current project will: (i) rehabilitate three small hydropower plants (SHPs) on Upolu Island damaged by Cyclone Evan in 2012; (ii) construct three new SHPs on the islands of Upolu and Savai'i; (iii) help the implementing agency, the Electric Power Corporation (EPC), implement the project efficiently by recruiting the project owner's engineers; and (iv) provide training to the EPC on operation and maintenance of the SHPs for up to 2 years after plant commissioning.

Project Rationale and Linkage to Country/Regional Strategy

The European Union (EU) has agreed to provide a grant not exceeding 4.61 million ($6.16 million equivalent) and the Government of New Zealand has agreed to provide a grant not exceeding NZ$6.00 million ($5.07 million equivalent) to expand the scale of the current project and deliver greater benefits. A contribution agreement between ADB and the EU was concluded on 23 April 2014. The contribution agreement between ADB and the Government of New Zealand will be prepared, setting out the administration arrangements. Both grants will be fully administered by ADB as part of overall project administration.

The proposed additional financing will allow the building of two additional grid-connected SHPs with a total preliminary capacity of 1.11 megawatts (MW): the 0.68 MW Fuluasou plant and the 0.43 MW Tiapapata plant, both on Upolu Island. The proposed additional sites had been identified during project appraisal but were not included in the original project scope because cofinancing could not be confirmed at the time of project approval. These sites are proposed based on (i) their potential to add the largest amount of capacity and energy to the EPC, (ii) their technical and financial feasibility, and (iii) the readiness of ADB project processing.

The EU grant will be used to implement the new SHP on Fuluasou stream in accordance with the signed contribution agreement between ADB and the EU. The grant from the Government of New Zealand will be used for the implementation of the overall project. The proposed cost sharing by both cofinancing partners will be useful from cash-flow and risk management perspectives for the overall project as the amounts required for turnkey packages can be timely contributed by different financiers.

The proposed additional financing will support the government's efforts to reduce Samoa's reliance on imported fossil fuels for power generation by providing clean and reliable electricity. The government's Strategy for the Development of Samoa, 2012- 2016; the Samoa Energy Sector Plan, 2013- 2016; and the EPC's corporate plan, 2013- 2015 all emphasize the development of indigenous and renewable energy resources as a high priority to reduce the economy's risk exposure to foreign exchange fluctuations and fuel price increases. The proposed additional financing is included as a firm 2015 project in ADB's country operations business plan, 2015- 2017 for Samoa.

Impact Increased energy security
Project Outcome
Description of Outcome Customers will have access to a higher share of electricity generated by hydropower
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. EPC rehabilitates and reconnects to the grid 4.69 MW of hydropower capacity.

2. EPC builds and connects to the grid 0.81 MW of hydropower capacity.

3. O&M knowledge transfer program completed.

4. Project implemented efficiently.

5. In addition to Output 2, EPC builds and connects to the grid 1.11 MW of hydropower capacity.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
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 Woo Yul Lee
Responsible ADB Department Pacific Department
Responsible ADB Division Transport, Energy and Natural Resources Division, PARD
Executing Agencies
Ministry of Finance
Ministry of Finance
Government of Samoa
Private Bag, Apia, Samoa
Timetable
Concept Clearance -
Fact Finding 14 Sep 2014 to 19 Sep 2014
MRM -
Approval 18 Nov 2015
Last Review Mission -
Last PDS Update 26 Nov 2014

Grant 0456-

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Nov 2015 03 Dec 2015 06 Jan 2016 30 Jun 2019 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 6.27 Cumulative Contract Awards
ADB 0.00 18 Nov 2015 0.00 0.00 0%
Counterpart 1.21 Cumulative Disbursements
Cofinancing 5.06 18 Nov 2015 0.00 0.00 0%

Grant 0457-

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Nov 2015 03 Dec 2015 06 Jan 2016 30 Jun 2019 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.00 Cumulative Contract Awards
ADB 0.00 18 Nov 2015 0.00 0.97 39%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 18 Nov 2015 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.

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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

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