Maldives : Preparing Outer Islands for Sustainable Energy Development Project
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 Details
-
Project Officer
Kolantharaj, Jaimes
Sectors Group
Request for information -
Country/Economy
Maldives -
Modality
-
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 |
|
||||||||||||||||||
| 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 | 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 | Sectors Group |
| Responsible ADB Division | Energy Sector Office (SG-ENE) |
| 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 | 24 Jul 2023 | 35.79 | 0.00 | 94% |
| Counterpart | 14.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 24 Jul 2023 | 35.44 | 0.00 | 93% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Unsatisfactory | Satisfactory | Satisfactory | Satisfactory | Partly satisfactory | Satisfactory |
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 | 24 Jul 2023 | 0.00 | 12.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 12.00 | 24 Jul 2023 | 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 | 13 Apr 2023 |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 5.00 | Cumulative Contract Awards | |||
| ADB | 0.00 | 24 Jul 2023 | 0.00 | 4.77 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 5.00 | 24 Jul 2023 | 0.00 | 4.77 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Partly satisfactory | Satisfactory | Satisfactory | Satisfactory | 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.
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.
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.
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.
ADB Inaugurates Project to Replace Diesel Systems with Solar Hybrid Across Maldives
ADB and the Environment Ministry of the Maldives have inaugurated the successful implementation of solar–battery–diesel hybrid system in 48 islands under the flagship Preparing Outer Islands for Sustainable Energy...
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| 0409-MLD: Preparing Outer Islands for Sustainable Energy Development Project [EMS] | Invitation for Bids | Closed | ||
| 46122-MLD: Preparing Outer Islands for Sustainable Energy Development Project [Package 8A] | Invitation for Bids | Closed | ||
| Procurement Officer | Individual - Consulting | Closed | ||
| JCM Validation and Verification for JFJCM Project under the Preparing Outer Islands for Sustainable Energy Development (POISED) Project | Firm - Consulting | Closed | ||
| Preparing Outer Islands for Sustainable Energy Development Project | Individual - Consulting | Closed | ||
| Supervision Engineer (Consultant) for the Smart Micro-Grid system in Addu City financed by JFJCM under the Preparing Outer Islands for Sustainable Energy Development (POISED) | Individual - Consulting | Closed | ||
| Grant No. 0409-MLD: Preparing Outer Islands for Sustainable Energy Development Project [TES/2018/G-013] | Invitation for Bids | Closed |
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 | — |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Preparing Outer Islands for Sustainable Energy Development Project: Procurement Plan | Procurement Plans | Aug 2014 |