Cook Islands: Renewable Energy Sector Project

Sovereign Project | 46453-002

The Asian Development Bank is helping the Cook Islands reduce its heavy dependence on diesel fuel for electricity generation. The project will fund solar power plants on six islands in the south of the country, with each plant having generating capacity of 3 megawatts. The project is expected to save more than a million liters of diesel consumption a year.

Project Details

Project Name Renewable Energy Sector Project
Project Number 46453-002
Country / Economy Cook Islands
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0415-COO: Renewable Energy Project
European Union US$ 7.26 million
Loan 3193-COO: Renewable Energy Project
Ordinary capital resources US$ 11.19 million
Grant 0493-COO: Renewable Energy Sector Project - Additional Financing
Global Environment Facility Grant US$ 4.26 million
Grant 0548-COO: Renewable Energy Sector Project-Additional Financing
Green Climate Fund US$ 12.00 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 / Renewable energy generation - solar

Gender Equity and Mainstreaming Some gender elements
Description The impact of the project will be increased energy security in an environmentally sustainable manner. The outcome will be an increased access to a higher share of electricity generated by renewable energy sources.
Project Rationale and Linkage to Country/Regional Strategy

The Cook Islands is a Pacific island country divided into two island groups with an estimated total population of 18,600 people. The Northern group consists of seven low-lying and sparsely populated coral atolls, while the Southern group consists of eight fertile volcanic islands. About 92% of the population lives in the Southern group islands including Rarotonga, the main island. Economic development is hindered by the country's limited size, isolation and distance from markets, lack of natural resources, periodic devastation from natural disasters, and inadequate infrastructure.

The Cook Islands is heavily dependent on imported fuels. The total fuel import bill of the Cook Islands in 2012 was NZ$34.6 million or 25% of total imports and 9% of gross domestic product. Diesel-powered generators constitute about 99% of the total electricity generating capacity. The total installed power generation capacity in the Cook Islands is 11.75 MW with a distribution network comprising 80 km of 11 kV underground cables and 200 km of 0.415 kV low voltage distribution lines. On the major islands of Rarotonga and Aitutaki, nearly 99% of all households are grid connected, 8% have additional solar photovoltaic home systems, and 3% use small diesel generators. On the outer islands, about 60% of households are grid connected, and 43% have SHS. Current electricity demand in the Cook Islands is around 30.0 GWh, which is forecast to modestly grow to 38.5 GWh by 2020. The Southern group is the dominant load center that accounts for 98% of current and future load demands.

Delivery of energy services is undertaken by state-owned utilities on Rarotonga and Aitutaki islands, and by island administration committees on the other outer islands, which are vertically-integrated electricity authority operating generation, transmission, distribution and retail of electricity. Assets for energy services are owned and overseen by the Cook Islands Investment Corporation, the government's holding company grouping the state-owned enterprises.

Impact

Increased energy security in an environmentally sustainable manner

Project Outcome
Description of Outcome

Increased access to a higher share of electricity generated from renewable energy sources

Progress Toward Outcome

2022, Q2: Procurement for the Operations and Maintenance has been ongoing and targeted to be completed by 2022.

2021, Q3: On Rarotonga Airport West BESS, rectification of defects remains on hold due to COVID-19 travel restrictions; on Rarotonga Power Station BESS Lot 1, development and design is complete. Civil Works on site was completed and clean-up and demobilization from the site has been carried out.

2021, Q2: Completion of pending work on Mauke and Mitiaro being explored by government in consultation with ADB.

2020, Q4: The outstanding distribution system contract, house metering, network extensions, and power correction for Mauke and Mitiaro have not commenced due to the Vovid-19 pandemic travel restrictions; The Aitutaki Power Station reported no issues during this quarter; For the GCF-funded Rarotonga Airport West BESS, all work have ceased and planned rectification of defects remain on hold due to the pandemic restrictions. Rarotonga Airport South BESS, on the other hand, is online and maintains constant state of charge and is configured to provide network frequency and voltage support.

2020, Q2: GEF-funded and GCF-funded (Lots 1 and 2) BESS have all been awarded already.

2019, Q3: Midterm Review of the project has been completed. Baseline projections have been revised to reflect implementation updates. BER for the GCF Lot 1 is submitted to ADB on 23 October with target award in Q4 2019.

2019, Q2: With Rarotonga BESS (Lot 2) awarded in 2018, Rarotonga BESS (Lot 1) re-tendering has been ongoing. Additional consulting services for O&M also being explored.

2018, Q4: All islands (Phase 1) are now fully running on the new renewable power systems.

2018, Q2: Mitiaro completed; Civil work array on Mauke with the remainder of electrical install in the early part of the quarter; Work on Atiu has moved more quickly than expected with building 90% complete and solar arrays complete after some adjustments to correct minor installation defects; On Mangaia, the final project site, where construction commenced in the later part of the quarter after some delays due to adjustment of site levels.

2017, Q4: The additional financing to the project from GCF has been approved on 30 Oct 2017.

2017, Q3: The civil works component of Phase 1 Turnkey Contract was approved and added as a variation to Phase 1 Turnkey Contract; The Rarotonga Battery Energy Storage System, which will be solely funded by a grant from the Global Environment Facility, was awarded in June 2017.

2017, Q1: The Electricity Distribution System MV and LV Upgrade for Mauke and Mitiaro Islands was awarded in Mar 2017; and the civil works component for the Phase 1 subprojects, initially a separate package, is now being integrated to the Phase 1 Turnkey Contract.

2016, Q4: The Phase 1 Turnkey Contract (covering Mangaia, Mauke, Mitiaro, and Atiu) was awarded in Aug 2016; the Aitutaki subproject tendering is on hold as of Dec 2016; and the Rarotonga subproject was requested by the government to be omitted from Phase 2.

2016, Q2: For the Phase 1 Turnkey Package, initial negotiations have commenced with the only substantially responsive tender which includes negotiations on the currency of bid. The substantially responsive bidder has also been asked to extend the bid validity period and bank guarantee by one (1) month due to delays in confirming the Mauke land acquisition.

2015: Core and non-core subprojects are now being referred to as Phase 1 and Phase 2 subprojects, repectively. Phase 1, aside from Mangaia, Mauke and Mitiaro, now also includes Atiu.

Implementation Progress
Description of Project Outputs

1. Solar PV power system development for four Phase 1 and for one Phase 2; BESS subproject developed; and additional installation of 3 units of BESS with a preliminary capacity of 3.0 MW and 12.0 MWh

2. Institutional strengthening and project management support

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

All Phase 1 subprojects (islands Mauke, Mitiaro Mangaia, and Atiu) have now been fully running on the new renewable power systems. Atiu was included in Phase 1 turnkey contract awarded in Aug 2016; Contract awarded for the Aitutaki subproject in July 2018; and the Rarotonga subproject was requested by the government to be omitted from Phase 2 (noncore subprojects) approved by ADB, on a no objection basis, in Feb 2017.

For Phase 2 subprojects (Aitutaki, Rarotonga), the systems have been operating since September 2019 and no issues have been reported since.

GEF-funded and GCF-funded (Lots 1 and 2) BESS have all been awarded:

On Rarotonga Airport West BESS, Completion Certificate was issued in October 2019, all work following has ceased and rectification of defects remains on hold due to COVID-19 travel restrictions.

On Rarotonga Airport South BESS Lot 2, it is online and maintains constant state of charge and is configured to provide network frequency and voltage support.

On Rarotonga Power Station BESS Lot 1, development and design is complete. Civil Works on site was completed and clean-up and demobilization from the site has been carried out.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project has been classified as category B for environment following ADB's SPS. An EARF has been prepared for Phase 2 subprojects, and an IEE has been prepared for core subprojects. The main environmental impacts will be during site preparation, which will include the cutting of about 141 trees and clearing of vegetative cover from the proposed sites and surrounding areas to prevent shading. There will be impacts from noise and dust due to transportation of plant and materials as well as operation of construction machinery. These impacts will be short-term (approximately one week for the smaller plant and up to a month for the larger plant). Operational impact includes maintenance of the plant and management of used batteries. It is proposed, as a special condition in the technical specifications, that handling and disposal of used batteries will be taken cared of by suppliers. The solar photovoltaic power system will not have any significant long-term adverse environmental impacts. During implementation, MFEM, TAU, and REDD, with support from the environmental expert under the institutional strengthening and project management support component, will prepare IEE for noncore subprojects, and develop and update the IEE and the EMP based on the detailed designs for core and noncore subprojects. ADB will clear the updated documents. The EMPs from the updated assessments will be integrated into the bid and contract documents. During project implementation, the environment expert will enhance the capacity of MFEM, TAU, and REDD in safeguards implementation and monitoring.
Involuntary Resettlement The project has been classified as Category B for involuntary resettlement following SPS. The project is not expected to involve physical displacement, but will require a total of 7.4 ha of land. A resettlement plan has been prepared for the three core subprojects. A resettlement framework has been prepared for the project providing guidelines to prepare the resettlement plan for noncore subprojects. The resettlement plan will be updated after the detailed design and compensation will be provided to affected persons before the start of civil works in respective sites.
Indigenous Peoples The project has been classified as Category C for Indigenous Peoples following SPS. The population in the project area comprises the mainstream population of Cook Islands. The project is not expected to impact any distinct and vulnerable group of indigenous peoples as defined under SPS.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The executing agency has requested advance contracting. This will include procurement of consulting services.
Procurement The loan will be used for the procurement of equipment and materials, civil works, services, related transportation, insurance, installation costs, and interest and commitment charges on the loan during construction for non-core subprojects on Atiu, Aitutaki, and Rarotonga. The loan will also be used to finance consulting services and contingencies. The grant will be used for the procurement of equipment and materials, civil works, related transportation, insurance, and installation costs for core subprojects on Mauke, Mitiaro, and Mangaia. The government of Cook Islands will finance land acquisition, environmental and social monitoring, taxes and duties not funded by the loan and grant, and contingencies. To support the project's procurement, EU has agreed to follow ADB's Procurement Guidelines (2013, as amended from time to time) for the civil works contracts. However, EU cannot exclude any of its member countries from the contracts it funds. Therefore, an exception to Article 14(ix) of the Agreement Establishing the Asian Development Bank (the Charter 7) is required to allow non-member countries of ADB to tender for the procurement of equipment and materials, civil works, and services. The government of Cook Islands will finance land acquisition, environmental and social monitoring, taxes and duties not funded by ADB loan and the EU grant, and contingencies.
Responsible ADB Officer So, Eun young
Responsible ADB Department Pacific Department
Responsible ADB Division PAEN
Executing Agencies
Ministry of Finance & Economic Management
Timetable
Concept Clearance 04 Sep 2013
Fact Finding 10 Mar 2014 to 21 Mar 2014
MRM 22 Apr 2014
Approval 21 Nov 2014
Last Review Mission -
Last PDS Update 27 Sep 2022

Grant 0415-COO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2014 13 Jan 2015 09 Feb 2015 31 Dec 2017 31 Dec 2021 14 Jan 2022
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 13.09 Cumulative Contract Awards
ADB 0.00 25 Oct 2022 0.00 5.61 100%
Counterpart 5.83 Cumulative Disbursements
Cofinancing 7.26 25 Oct 2022 0.00 5.61 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Grant 0493-COO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Aug 2016 14 Sep 2016 18 Oct 2016 31 Dec 2019 31 Dec 2022 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.57 Cumulative Contract Awards
ADB 0.00 25 Oct 2022 0.00 4.17 98%
Counterpart 1.31 Cumulative Disbursements
Cofinancing 4.26 25 Oct 2022 0.00 3.83 90%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Grant 0548-COO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Oct 2017 20 Jun 2018 30 Jul 2018 30 Jun 2020 31 Dec 2022 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 13.80 Cumulative Contract Awards
ADB 0.00 25 Oct 2022 0.00 9.95 83%
Counterpart 1.80 Cumulative Disbursements
Cofinancing 12.00 25 Oct 2022 0.00 9.19 77%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 3193-COO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2014 13 Jan 2015 09 Feb 2015 31 Dec 2017 31 Dec 2022 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 11.19 Cumulative Contract Awards
ADB 11.19 25 Oct 2022 8.41 0.00 94%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 25 Oct 2022 8.54 0.00 96%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating 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.

Title Document Type Document Date
Amendment to the Grant Agreement (Externally Financed) for Grant 0548-COO: Renewable Energy Sector Project - Additional Financing 2 Grant Agreement Mar 2022
Renewable Energy Sector Project: Audited Project Financial Statements (July 2020-June 2021) Audited Project Financial Statements Dec 2021
Renewable Energy Sector Project: Updated Project Administration Manual Project/Program Administration Manual Jan 2021
Renewable Energy Sector Project: Audited Project Financial Statements (July 2019-June 2020) Audited Project Financial Statements Jan 2021
Renewable Energy Sector Project: Audited Project Financial Statements (July 2018-June 2019) Audited Project Financial Statements Feb 2020
Amendment to the Grant Agreement (Externally Financed) for Grant 0548-COO: Renewable Energy Sector Project - Additional Financing 2 Grant Agreement Oct 2019
Renewable Energy Sector Project: Audited Project Financial Statements (July 2017-June 2018) Audited Project Financial Statements Jul 2019
Renewable Energy Sector Project: Procurement Plan Procurement Plans Apr 2019
Project Agreement for Grant 0548-COO: Renewable Energy Sector Project - Additional Financing 2 Project/Program Agreements Jun 2018
Grant Agreement (Externally Financed) for Grant 0548-COO: Renewable Energy Sector Project - Additional Financing 2 Grant Agreement Jun 2018
Renewable Energy Sector Project: Audited Project Financial Statements (July 2016-June 2017) Audited Project Financial Statements Jan 2018
Renewable Energy Sector Project - Additional Financing: Project Administration Manual Project/Program Administration Manual Oct 2017
Renewable Energy Sector Project (Additional Financing): Gender Action Plan Gender Action Plans Jun 2017
Renewable Energy Sector Project: Audited Project Financial Statements (June 2015-June 2016) Audited Project Financial Statements Jan 2017
Grant Agreement (Global Environment Facility) for Grant 0493-COO: Renewable Energy Sector Project - Additional Financing Grant Agreement Sep 2016
Project Agreement for Grant 0493-COO: Renewable Energy Sector Project - Additional Financing Project/Program Agreements Sep 2016
Project Agreement for Renewable Energy Sector Project Project/Program Agreements Jan 2015
Grant Agreement for Renewable Energy Sector Project Grant Agreement Jan 2015
Loan Agreement for Renewable Energy Sector Project Loan Agreement (Ordinary Resources) Jan 2015
Renewable Energy Sector Project: Project Administration Manual Project/Program Administration Manual Nov 2014
Renewable Energy Sector Project: Report and Recommendation of the President Reports and Recommendations of the President Oct 2014

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
Renewable Energy Sector Project: Environmental and Social Monitoring Report (July-December 2021) Environmental and Social Monitoring Reports Mar 2022
Renewable Energy Sector Project: Environmental and Social Monitoring Report (January-June 2021) Environmental and Social Monitoring Reports Oct 2021
Renewable Energy Sector Project: Environmental and Social Monitoring Report (July-December 2020) Environmental and Social Monitoring Reports Feb 2021
Renewable Energy Sector Project: Environmental and Social Monitoring Report (January-June 2020) Environmental and Social Monitoring Reports Aug 2020
Renewable Energy Sector Project: Environmental and Social Monitoring Report (July-December 2019) Environmental and Social Monitoring Reports Feb 2020
Renewable Energy Sector Project: Environmental and Social Monitoring Report (January-June 2019) Environmental and Social Monitoring Reports Sep 2019
Renewable Energy Sector Project: Environmental and Social Monitoring Report (July-December 2018) Environmental and Social Monitoring Reports Dec 2018
Renewable Energy Sector Project: Environmental and Social Monitoring Report (January-June 2018) Environmental and Social Monitoring Reports Jun 2018
Renewable Energy Sector Project: Environmental and Social Monitoring Report (January-June 2018) Environmental and Social Monitoring Reports Jun 2018
Renewable Energy Sector Project: Environmental and Social Monitoring Report (July-December 2017) Environmental and Social Monitoring Reports Jan 2018
Renewable Energy Sector Project: Environmental and Social Monitoring Report (January-June 2017) Environmental and Social Monitoring Reports Jul 2017
Renewable Energy Sector Project (Additional Financing): Initial Environmental Examination Initial Environmental Examination Jun 2017
Renewable Energy Sector Project (Additional Financing): Social Due Diligence Report Safeguards Due Diligence Reports Jun 2017
Renewable Energy Sector Project: Environmental and Social Monitoring Report (July-December 2016) Environmental and Social Monitoring Reports Dec 2016
Renewable Energy Sector Project: Environmental and Social Monitoring Report (January-June 2016) Environmental and Social Monitoring Reports Jul 2016
Renewable Energy Sector Project - Additional Financing: Initial Environmental Examination Initial Environmental Examination May 2016
Renewable Energy Project Environmental Assessment and Review Framework Mar 2014
Renewable Energy Project Resettlement Plans Mar 2014
Renewable Energy Project Initial Environmental Examination Mar 2014
Renewable Energy Project Resettlement Frameworks Mar 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

Tender Title Type Status Posting Date Deadline
L3193/G0415/G0493/G0548-COO: Renewable Energy Sector Project [CIRESP-007-CK181929] Invitation for Bids Closed 27 May 2019 07 Aug 2019
L3193/G0415/G0493-COO Cook Islands Renewable Energy Sector Project [Aitutaki - Phase 2] Invitation for Bids Closed 14 Jul 2017 28 Sep 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
RAROTONGA BATTERY ENERGY STORAGE SYSTEM "AIRPORT SOUTH" Grant 0548 26 Sep 2018 VECTOR LTD | 101 CARLTON GORE DRIVE NEWMARKET AUCKLAND 1023 NEW ZEALAND Ministry of Finance & Economic Management 5,057,053.00
AITUTAKI RENEWABLE ENERGY SYSTEM Loan 3193 16 Jul 2018 POWERSMART NZ LIMITED | 18 TUKORAKO DRIVE MT. MAUNGANUI NEW ZEALAND Ministry of Finance & Economic Management 2,211,524.00 269,195.00
Phase 1 Solar Photovoltaic Plants (Civil Works) Loan 3193 27 Jun 2017 Netcon Limited | Level 3, 15 Courtenay Place, Po Box 19227, Wellington, 6149 New Zealand Ministry of Finance & Economic Management 2,558,447.00 2,558,447.00
Replenishment of Imprest Account Loan 3193 18 Apr 2017 Netcon Limited | 31 Meadows Road Timaru 7910 New Zealand Ministry of Finance and Economic Management 2,732,758.38 2,708,018.53

Procurement Plan

Title Document Type Document Date
Renewable Energy Sector Project: Procurement Plan Procurement Plans Apr 2019