Maldives: Preparing Outer Islands for Sustainable Energy Development Project

Sovereign Project | 46122-003

ADB is helping the Maldives tap solar power and reduce reliance on costly, polluting diesel oil. The project will install solar-diesel hybrid grids on outer islands and the greater Male region. Skills development support will also be given to the Ministry of Environment and Energy and the main power utilities State Electricity Company and FENAKA Corporation Ltd. for the hybrid rollouts.

Project Details

  • Project Officer
    Kolantharaj, Jaimes
    South Asia Department
    Request for information
  • Country/Economy
    Maldives
  • Modality
    • Grant
    • Loan
  • Sector
    • Energy
Project Name Preparing Outer Islands for Sustainable Energy Development Project
Project Number 46122-003
Country / Economy Maldives
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0409-MLD: Preparing Outer Islands for Sustainable Energy Development Project
Asian Development Fund US$ 38.00 million
Grant 0410-MLD: Preparing Outer Islands for Sustainable Energy Development Project
Strategic Climate Fund US$ 12.00 million
Loan: Preparing Outer Islands for Sustainable Electricity Development
European Investment Bank US$ 50.00 million
Islamic Development Bank US$ 10.00 million
Grant 0429-MLD: Preparing Outer Islands for Sustainable Energy Development Project
Japan Fund for the Joint Crediting Mechanism US$ 5.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Conventional energy generation - Energy efficiency and conservation - Renewable energy generation - solar

Gender Equity and Mainstreaming Effective gender mainstreaming
Description ADB and the Government of Maldives are working together to transform the existing energy grids on the archipelago into a hybrid renewable energy system. The Preparing Outer Islands for Sustainable Energy Development Project is installing energy management and control systems; energy storage; and improvements in distribution networks, in order to significantly reduce the need for diesel to generate electricity. The work includes installing equipment for solardiesel hybrid grids on about 160 islands. The project will replace inefficient diesel-based power generation grids on the islands with hybrid systems of both renewable energy and diesel in order to reduce the cost of electricity and the emissions created, as well as lower the subsidy burden on the government budget.
Project Rationale and Linkage to Country/Regional Strategy The Maldives is the only country in South Asia to achieve 100% access to electricity. This includes the half of the population who live on outer islands. Given the geographic spread of the archipelago, each island is electrified with its own diesel-powered grid system, resulting in expensive and not very reliable electricity supply. Diesel power is also costly and requires government subsidies in excess of $40 million a year. The 100% diesel dependence of the Maldives makes it reliant on oil imports and also makes its carbon emissions per unit of electricity among the highest in the region. The Maldives has the potential for significant renewable energy resources, including solar energy and some areas appropriate for wind power. Studies show that the cost of energy generation from a hybrid system of renewable energy and fossil fuels would be significantly lower than the existing options. The transition to renewable energy has a sound economic rationale. It improves the financial situation of the government while at the same time lowering costs for consumers.
Impact

More sustainable energy sector based on renewable resources.

Project Outcome
Description of Outcome

Shift towards clean and cost-effective energy sources

Progress Toward Outcome Project was declared effective on 19 January 2015. It is almost completed and implementation is ongoing. The project closing date was extended to 31 Dec 2024 in line with the POISED Additional Financing.
Implementation Progress
Description of Project Outputs

1. Renewable-energy-ready grid systems developed for outer islands and greater Male region

2. Enhanced capacity of MEE, STELCO, and FENAKA to implement renewable energy grid interventions

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

The contract packages of ADB financed components (package 1 and 2A) for the Phase 1 islands (five pilot islands), 8 MW energy efficient diesel generator for Mal

, hybrid energy systems for Haa Alif (14 islands) and Shaviyani and Noonu (24 islands) were all commissioned and connected to grid and operating satisfactorily. The contract for JFJCM BESS at Addu City was awarded in fourth quarter (Q4) 2018; though the BESS at Addu was commissioned and connected to grid in August 2021.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is classified environment category B and the initial environment examinations for the sample projects were prepared following ADBs Safeguard Policy Statement (2009), the governments environmental impact assessment guidelines, and related national policies and legislation. Public consultation and information disclosure requirements have been met.
Involuntary Resettlement The project is classified as category B for both involuntary resettlement and C for indigenous peoples. Due diligence conducted on sample subprojects brought out_no resettlement impacts and no adverse impacts on indigenous groups. A resettlement framework has been prepared for the project. .
Indigenous Peoples For all the subsequent subprojects that have resettlement impacts, resettlement plans will be prepared in accordance with the safeguard provisions in the resettlement framework. If any changes or additional land requirements or involuntary resettlement impacts are identified during implementation, a resettlement plan will be prepared or modified according to the applicable laws referred to in the resettlement framework. ADBs prior approval will be obtained before further implementation of the relevant subproject
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholders including utilities, investors, government, the regulator, financiers and consumers have been periodically consulted during the preparation of the SREP Investment Plan in 2010-2012 and the project preparation phase. MEE will prepare a stakeholder communication strategy and submit to ADB for review in 2015 after effectiveness. Communication will be in language suitable for the specific audience and will follow the ADB Public Communication Policy. The stakeholder strategy will incorporate the following components: (i) Compilation of stakeholder communication activities already undertaken; (ii) Public communication plan for disseminating information regarding project development to the public who may be impacted by the proposed projects; (iii) Consultations and disclosure during preparation of future sub project IEE.
During Project Implementation TBD
Business Opportunities
Consulting Services The PMU is supported by external experts. ADB recruited external experts using Quality and Cost based selection (QCBS) with a 90:10 selection criteria. Consultancy services were procured in accordance with ADB's Guidelines on the Use of Consultants (April 2013, as amended from time to time).
Procurement The government has requested ADB to assist in procuring all project goods, works and services, and to recruit related project management consultancy services. Procurement of goods, works and related services under the project will be processed through a Project Management Unit with review by ADB. The procurement will be carried out in accordance with ADB's Procurement Guidelines (April 2013, as amended from time to time).
Responsible ADB Officer Kolantharaj, Jaimes
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Ministry of Finance (formerly Ministry of Finance and Treasury)
Timetable
Concept Clearance 10 Dec 2012
Fact Finding 03 Apr 2014 to 11 Apr 2014
MRM 19 May 2014
Approval 29 Sep 2014
Last Review Mission -
Last PDS Update 16 Sep 2022

Grant 0409-MLD

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Sep 2014 09 Dec 2014 19 Jan 2015 30 Jun 2020 31 Mar 2024 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 52.00 Cumulative Contract Awards
ADB 38.00 23 Nov 2022 37.85 0.00 100%
Counterpart 14.00 Cumulative Disbursements
Cofinancing 0.00 23 Nov 2022 34.94 0.00 92%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Unsatisfactory Satisfactory Unsatisfactory Unsatisfactory Partly satisfactory Unsatisfactory

Grant 0410-MLD

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Sep 2014 09 Dec 2014 19 Jan 2015 30 Jun 2020 - 31 Jul 2019
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 12.00 Cumulative Contract Awards
ADB 0.00 23 Nov 2022 0.00 12.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 12.00 23 Nov 2022 0.00 12.00 100%

Grant 0429-MLD

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Mar 2015 21 Aug 2015 24 Nov 2015 31 Dec 2019 31 Dec 2022 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.00 Cumulative Contract Awards
ADB 0.00 23 Nov 2022 0.00 4.67 93%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 5.00 23 Nov 2022 0.00 4.30 86%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Unsatisfactory Satisfactory Unsatisfactory Unsatisfactory Satisfactory Unsatisfactory

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
Preparing Outer Islands for Sustainable Energy Development Project: Audited Project Financial Statements (January-December 2021) Audited Project Financial Statements Jun 2022
Preparing Outer Islands for Sustainable Energy Development Project: Updated Project Administration Manual Project/Program Administration Manual Aug 2021
Preparing Outer Islands for Sustainable Energy Development Project: Audited Project Financial Statements (January-December 2020) Audited Project Financial Statements Aug 2021
Preparing the Outer Islands for Sustainable Energy Development: Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements Dec 2020
Preparing the Outer Islands for Sustainable Energy Development: Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements Jun 2019
Preparing Outer Islands for Sustainable Energy Development Project: Audited Project Financial Statements (January-December 2017) Audited Project Financial Statements Jun 2018
Preparing Outer Islands for Sustainable Energy Development Project: Audited Project Financial Statements (January - December 2016) Audited Project Financial Statements Jun 2017
Preparing Outer Islands for Sustainable Energy Development Project: Audited Project Financial Statements (January-December 2015) Audited Project Financial Statements Aug 2016
Grant Agreement (Externally Financed) for Preparing Outer Islands for Sustainable Energy Development Project - Additional Cofinancing Grant Agreement Aug 2015
Grant Agreement (Externally Financed) for Preparing Outer Islands for Sustainable Energy Development Project Grant Agreement Dec 2014
Grant Agreement (Special Operations) for Preparing Outer Islands for Sustainable Energy Development Project Grant Agreement Dec 2014
Project Agreement for Preparing Outer Islands for Sustainable Energy Development Project (State Electric Company Limited) Project/Program Agreements Dec 2014
Project Agreement for Preparing Outer Islands for Sustainable Energy Development Project (Fenaka Corporation Limited) Project/Program Agreements Dec 2014
Preparing Outer Islands for Sustainable Energy Development Project: Gender Action Plan Gender Action Plans Sep 2014
Preparing Outer Islands for Sustainable Energy Development Project: Report and Recommendation of the President Reports and Recommendations of the President Sep 2014
Preparing Outer Islands for Sustainable Energy Development Project: Project Administration Manual Project/Program Administration Manual Aug 2014
Preparing Outer Islands for Sustainable Energy Development Project: Procurement Plan Procurement Plans Aug 2014
Outer Islands for Sustainable Energy Development Initial Poverty and Social Analysis 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
Preparing Outer Islands for Sustainable Energy Development: Environmental and Social Monitoring Report (July-December 2021) Environmental and Social Monitoring Reports Jan 2022
Preparing Outer Islands for Sustainable Energy Development: Environmental and Social Monitoring Report (January-June 2021) Environmental and Social Monitoring Reports Sep 2021
Preparing Outer Islands for Sustainable Energy Development Project: Environmental and Social Safeguard Monitoring Report (July-December 2020) Environmental and Social Monitoring Reports Jan 2021
Preparing Outer Islands for Sustainable Energy Development: Environmental and Social Monitoring Report (January-June 2020) Environmental and Social Monitoring Reports Jul 2020
Preparing Outer Islands for Sustainable Energy Development Project: Phase 3a Subproject - Noonu Atoll Initial Environmental Examination Initial Environmental Examination Jul 2020
Preparing Outer Islands for Sustainable Energy Development Project: Phase 3a Subproject - Shaviyani Atoll Initial Environmental Examination Initial Environmental Examination Jul 2020
Preparing Outer Islands for Sustainable Energy Development: Environmental and Social Monitoring Report (July-December 2019) Environmental and Social Monitoring Reports Feb 2020
Preparing Outer Islands for Sustainable Energy Development: Environmental and Social Monitoring Report (January-June 2019) Environmental and Social Monitoring Reports Sep 2019
Preparing Outer Islands for Sustainable Energy Development Project: Environmental and Social Monitoring Report (July-December 2018) Environmental and Social Monitoring Reports Feb 2019
Preparing Outer Islands for Sustainable Energy Development Project: Environmental and Social Monitoring Report (January-June 2018) Environmental and Social Monitoring Reports Oct 2018
Preparing Outer Islands for Sustainable Energy Development Project: Environmental Safeguard Monitoring Report (July–December 2016) Environmental Monitoring Reports Jun 2018
Preparing Outer Islands for Sustainable Energy Development Project: Five Pilot Islands Addendum to Initial Environmental Examination Initial Environmental Examination Feb 2018
Preparing Outer Islands for Sustainable Energy Development Project: Environmental and Social Monitoring Report (July-December 2017) Environmental and Social Monitoring Reports Jan 2018
Preparing Outer Islands for Sustainable Energy Development Project: Haa Alif Atoll Subproject Initial Environmental Examination Environmental Assessment and Measures Oct 2017
Preparing Outer Islands for Sustainable Energy Development Project: Environmental and Social Monitoring Report (January–June 2017) Environmental and Social Monitoring Reports Sep 2017
Preparing Outer Islands for Sustainable Energy Development Project: Social Monitoring Report (July-December 2016) Social Monitoring Reports Jan 2017
Preparing Outer Islands for Sustainable Energy Development Project: 8 MW Diesel Generation Facility in Male Initial Environmental Examination Environmental Assessment and Measures Mar 2016
Preparing Outer Islands for Sustainable Energy Development Environmental Assessment and Review Framework May 2014
Preparing Outer Islands for Sustainable Energy Development Initial Environmental Examination May 2014
Preparing Outer Islands for Sustainable Energy Development Resettlement Frameworks May 2014
Preparing Outer Islands for Sustainable Energy Development: Due Diligence on Resettlement Safeguards Due Diligence Reports May 2014

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.

Tenders


Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
DESIGN SUPPLY AND INSTALLATION OF EMS AND BESS OF PV DIESEL HYBRID SYSTEM IN ADDU CITY Grant 0429 18 Dec 2018 NISHIZAWA LIMITED | 12-5 NIHONBASHI-KODENMA-CHO TOKYO JAPAN JAPAN Ministry of Finance 4,075,016.00
PROCUREMENT OF DESIGN SUPPLY INSTALLATION AND MAINTENANCE OF SOLAR PV-DIESEL HYBRID POWER GENERA Grant 0409 06 Dec 2017 SINOMACH INTERNATIONAL-SUNGROW JOINT VENTURE | F/4 BLOCK5 ZONE 12 ADVANCED BUSINESS PAR K NO 188 OF SOUTH 4TH RING ROAD WEST CHINA PEOPLE'SREP.OF Ministry of Finance and Treasury 7,917,954.00
DESIGN SUPPY INSTALLATION AND MAINTENANCE OF SOLAR PV DIESEL HYBRID POWER GENERATION PLANT FOR Grant 0410 02 Dec 2017 SINOMACH INTERNATIONAL-SUNGROW JOINT VENTURE | F/4 BLOCK5 ZONE12 ADVANCED BUSINESS PARK NO 188 OF SOUTH 4TH RING ROAD WEST FENG CHINA PEOPLE'SREP.OF Ministry of Finance and Treasury 4,263,514.00