Marshall Islands: Majuro Power Network Strengthening

Sovereign Project | 49356-001

This TA will support the government''s policy objective of increasing the share of renewable generation serving RMI's electricity demand, and is consistent with the ADB's Interim Pacific Approach, 2015. The preparation of investments in Majuro's network to allow increased renewable generation will allow RMI to program financing, including from ADB, to implement investments in clean energy.

Project Details

  • Project Officer
    Trainor, James Michael
    Pacific Department
    Request for information
  • Country/Economy
    Marshall Islands
  • Modality
    • Technical Assistance
  • Sector
    • Energy
Project Name Majuro Power Network Strengthening
Project Number 49356-001
Country / Economy Marshall Islands
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9225-RMI: Majuro Power Network Strengthening
Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 690,000.00
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 No gender elements
Description This TA will support the government''s policy objective of increasing the share of renewable generation serving RMI's electricity demand, and is consistent with the ADB's Interim Pacific Approach, 2015. The preparation of investments in Majuro's network to allow increased renewable generation will allow RMI to program financing, including from ADB, to implement investments in clean energy.
Project Rationale and Linkage to Country/Regional Strategy

The Republic of the Marshall Islands (RMI) adopted its "National Energy Policy and Energy Action Plan" in September 2009. This policy document establishes a renewable energy generation target of 20% for electric power by 2020. In 2015, electricity is generated in RMI almost entirely by diesel despite the country''s significant renewable generation potential. Peak demand on Majuro (RMI''s most populous and economically active atoll with over 50% of its population) is approximately 7.5 megawatt (MW), and is supplied by diesel generation located at a central power station supplying three feeders at 13.8 kilovolt (kV). A 209 kilowatt-peak (kWp) grid-connected solar photovoltaic (PV) system is installed at the Majuro hospital, along with a 51 kWp PV system at the College of the Marshall Islands. The Abu-Dhabi Fund for Development is currently implementing a 600 kWp PV investment at the Majuro airport.

MEC's distribution network is aged (over 30 years old), in need of significant reinvestment and modernization, and crucially was not designed to accommodate significant distributed generation from intermittent renewable resources (i.e. solar or wind). MEC''s fleet of diesel generators and control system were designed to serve this network, and similarly incapable of accommodating high levels of intermittent renewable energy penetration. Preliminary findings of an analysis conducted by JICA under its hybrid islands program reveal that the current system can accommodate no more than approximately 11% penetration - far short of the national energy policy''s 20% target. With the completion of the Abu-Dhabi Fund for Development PV project at the Majuro airport, Majuro's network's absorptive capacity for PV generation is effectively exhausted.
Impact The impact will be an increased share of renewable power generation, improved service reliability, reduced reliance on imported fossil fuels, and a reduction in cost of electricity generation.
Project Outcome
Description of Outcome MEC Investment plan to support renewable energy prepared.
Progress Toward Outcome

Entura was contracted under the TA to produce a single investment project to support RMI's target of 20% renewable energy contribution by 2020. During the execution of the TA, the opportunity became apparent to process a focused investment project early as a precursor to future investments.

TA Final report has been submitted.
Implementation Progress
Description of Project Outputs

Comprehensive inventory of existing system assets and documentation on their condition and performance characteristics completed.

Modeling of existing system''s capacity for distributed intermittent renewable generation prepared.

Sequenced capital investments to allow increased renewable generation and reduce network losses identified.

Full technical (including ex-post modelling), economic, and financial feasibility study for investments proposed for immediate implementation

Training of MEC and Ministry of Resource and Development Staff undertaken.
Status of Implementation Progress (Outputs, Activities, and Issues) The TA is closing on 30 November 2018, as scheduled. Final claim of consulting firm has been paid and certificate of full payment was submitted on 12 September 2018. The closing of contract and TA accounts is underway.
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Seven international consultants will be employed on an intermittent basis (22 person-months over the period of 12 months) on a firm basis, as needed. International consultants will be selected through the quality and cost-based selection (QCBS) method, based on a simplified technical proposal with a quality-to-cost ratio of 90:10. Consultants will be engaged in accordance with the Guidelines on the Use of Consultants (2013, as amended from time to time). Disbursements will be made in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time). ADB will also follow the specific Clean Energy Financing Partnership Facility (CEFPF) Implementation Guidelines.
Procurement No procurement package under the TA.
Responsible ADB Officer Trainor, James Michael
Responsible ADB Department Pacific Department
Responsible ADB Division Transport, Energy and Natural Resources Division, PARD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance 19 Jul 2016
Fact Finding -
MRM -
Approval 09 Nov 2016
Last Review Mission -
Last PDS Update 28 Sep 2018

TA 9225-RMI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Nov 2016 09 Dec 2016 09 Dec 2016 30 Nov 2017 30 Nov 2018 03 Oct 2018
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 690,000.00 10,000.00 0.00 0.00 0.00 700,000.00 17 Jun 2022 552,316.33

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.

None currently available.

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

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Capacity Development Technical Assistance 9225 09 Dec 2016 Entura (Australia) | 89 CAMBRIDGE PARK DRIVE CAMBRIDGE, TASMANIA 7170 AUSTRALIA Asian Development Bank 644,526.00 —

Procurement Plan

None currently available.