Cook Islands: Renewable Energy Sector Project

Sovereign Project | 46453-002 Status: Active

Summary

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.

Latest Project Documents

Consulting Notices See also: CMS

No notices are currently available for this project.

Procurement Notices See also: Operational Procurement

Procurement Documents


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Project Name Renewable Energy Sector Project
Project Number 46453-002
Country 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 US$ 4.26 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy - Renewable energy generation - solar

Gender Equity and Mainstreaming No 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, a 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 megawatt (MW) with a distribution network comprising 80 kilometers (km) of 11 kilovolt (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 (SHS), and 3% use small diesel generators. On the outer islands, about 60% of households are grid connected, and 43% have a SHS. Current electricity demand in the Cook Islands is around 30.0 gigawatt-hour (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 (CIIC), 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

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, also includes Atiu.

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.

2016, Q3: The contract for Phase 1 Solar Photovoltaic Plants in Atiu, Mangaia, Mauke and Mitiaro has been signed on 17 August 2016.

Implementation Progress
Description of Project Outputs

1. Solar photovoltaic power system development

2. Institutional strengthening and project management support

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

Too early to determine.

Too early to determine.

Not yet due.

Not yet due.

Not yet due.

Not yet due.

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 noncore 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 Staff

Responsible ADB Officer Lee, Woo Yul
Responsible ADB Department Pacific Department
Responsible ADB Division Transport, Energy and Natural Resources Division, PARD
Executing Agencies
Ministry of Finance & Economic Management
PO box 120
Cook Islands

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 2016

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 2019 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 13.09 Cumulative Contract Awards
ADB 0.00 21 Nov 2014 0.00 6.80 94%
Counterpart 5.83 Cumulative Disbursements
Cofinancing 7.26 21 Nov 2014 0.00 0.91 12%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - 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 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.57 Cumulative Contract Awards
ADB 0.00 29 Aug 2016 0.00 0.00 0%
Counterpart 1.31 Cumulative Disbursements
Cofinancing 4.26 29 Aug 2016 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - 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 2019 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 11.19 Cumulative Contract Awards
ADB 11.19 21 Nov 2014 1.46 0.00 16%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 21 Nov 2014 0.72 0.00 8%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

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 (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 Resettlement Plans Mar 2014
Renewable Energy Project Initial Environmental Examination Mar 2014
Renewable Energy Project Resettlement Frameworks Mar 2014
Renewable Energy Project Environmental Assessment and Review Framework Mar 2014

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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