Regional : Pacific Renewable Energy Investment Facility (formerly Pacific Renewable Energy Investment Program)
Pacific Small Island Developing States (SIDS) are heavily dependent on diesel for power generation, which has resulted in high electricity tariffs. The average supply cost for electricity across the Pacific is $0.47/kilo-watt hour (kWh), which is high by international standards. However, this increases significantly for the smaller, more isolated SIDS where the high cost of electricity is negatively impacting economic growth. Over reliance on imported fuel also depletes limited foreign reserves and exposes the SIDS economies to diesel price spikes. The investment program will target seven of the smaller Pacific SIDS with a combined population of around 500,000. All targeted SIDS have populations less than 200,000, with four less than 55,000.
Project Details
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Project Officer
Shiihara, Takeshi
Pacific Department
Request for information -
Country/Economy
Regional -
Sector
- Energy
Related Projects
Project Name | Pacific Renewable Energy Investment Facility (formerly Pacific Renewable Energy Investment Program) | ||||||||||||||||||||||||||
Project Number | 49450-001 | ||||||||||||||||||||||||||
Country / Economy | Regional |
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Project Status | Active | ||||||||||||||||||||||||||
Project Type / Modality of Assistance | Technical Assistance |
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Source of Funding / Amount |
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Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships Private sector development |
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Sector / Subsector | Energy / Energy sector development and institutional reform |
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Gender | Effective gender mainstreaming | ||||||||||||||||||||||||||
Description | Pacific Small Island Developing States (SIDS) are heavily dependent on diesel for power generation, which has resulted in high electricity tariffs. The average supply cost for electricity across the Pacific is $0.47/kilo-watt hour (kWh), which is high by international standards. However, this increases significantly for the smaller, more isolated SIDS where the high cost of electricity is negatively impacting economic growth. Over reliance on imported fuel also depletes limited foreign reserves and exposes the SIDS economies to diesel price spikes. The investment program will target seven of the smaller Pacific SIDS with a combined population of around 500,000. All targeted SIDS have populations less than 200,000, with four less than 55,000. Pacific SIDS have recognized the need to structurally shift power generation from diesel to renewable energy and all have aggressive national renewable energy targets, in some cases of up to 100%. While the seven target SIDS are endowed with cost-competitive renewable energy resources, lack of access to adequate funding has limited the uptake of renewable energy, and most SIDS have been unable to secure sufficient funding to significantly increase the renewable energy share of generation. In order to fill the financing gap, Pacific SIDS are encouraging private sector in the form of independent power providers (IPPs) to invest in the sector, however there are significant barriers to entry of the private sector. Additionally, SIDS face significant capacity barriers to plan, design, implement and manage renewable energy investments. Ongoing sector reform is required to encourage the structural shift to renewable energy. In general, Pacific SIDS are not currently on track to meet their aggressive renewable energy targets. If all proposed renewable energy projects with secure financing in the target SIDS are constructed, two SIDS would have over 40% renewable energy, however 4 of 8 would still only have less than 5% renewable energy. |
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Project Rationale and Linkage to Country/Regional Strategy | The investment program will address the upfront financing barrier for renewable energy, promote private sector investment, develop capacity for planning and project preparation of renewable energy, and support regulatory reforms. The proposed program will benefit SIDS economies through (i) improved balance of trade by reducing fossil fuel imports, (ii) improved energy security, (iii) downward pressure on tariffs, and (iii) reduced greenhouse emissions. The proposed investment program will support implementation of the regional Framework for Action on Energy Security in the Pacific (FAESP), which was endorsed by Pacific Leaders in 2010. The FAESP outlines a roadmap to achieving secured supply, efficient production and use of energy for sustainable development through the following actions: (i) leadership, governance, coordination and partnerships; (ii) capacity development, planning, policy and regulatory frameworks, (iii) energy production and supply; (iv) energy conversion; (v) end-use energy consumption; (vi) energy data and information; and (vii) financing, monitoring and evaluation. The program also aligns with the energy sector development plan of the respective countries. The proposed investment program is consistent with the Pacific Approach. | ||||||||||||||||||||||||||
Impact |
Project Outcome | |
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Description of Outcome | |
Progress Toward Outcome | |
Implementation Progress | |
Description of Project Outputs | |
Status of Implementation Progress (Outputs, Activities, and Issues) | |
Geographical Location | Regional |
Summary of Environmental and Social Aspects | |
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Environmental Aspects | |
Involuntary Resettlement | |
Indigenous Peoples | |
Stakeholder Communication, Participation, and Consultation | |
During Project Design | |
During Project Implementation |
Business Opportunities | |
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Consulting Services | The TA is financing contracts with consulting firms and individual consultants for project processing and pre-implementation works on projects for 11 smaller Pacific island countries (PIC-11). The TA has also supported the capacity development of the officials from the executing agencies (EAs) and implementing agencies (IAs) for project preparation/implementation through regional forums/workshops, such as Pacific Power Annual Meeting, Asia Clean Energy Forum, and Pacific Energy Operations, among others. As of 26 September 2022, 2018, twelve resource persons, nine individual consultants, and six consulting firms have been engaged to do the preparatory work for the ensuing projects as applicable. |
Procurement | No procurement packages. |
Responsible ADB Officer | Shiihara, Takeshi |
Responsible ADB Department | Pacific Department |
Responsible ADB Division | PAEN |
Executing Agencies |
Asian Development Bank |
Timetable | |
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Concept Clearance | - |
Fact Finding | - |
MRM | - |
Approval | 24 Nov 2016 |
Last Review Mission | - |
Last PDS Update | 27 Sep 2022 |
TA 9242-REG
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
24 Nov 2016 | - | 24 Nov 2016 | 30 Nov 2026 | - | - |
Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
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ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
Gov | Beneficiaries | Project Sponsor | Others | |||||
5,000,000.00 | 3,935,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 8,935,000.00 | 26 Sep 2022 | 7,582,336.37 |
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.
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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 |
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Pacific Renewable Energy Investment Facility: Project Preparatory Technical Assistance Report | Project Preparatory Technical Assistance Reports | Nov 2016 |
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.
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Tenders
Contracts Awarded
Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
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Project Preparatory | Technical Assistance 9242 | 05 Apr 2019 | COWI A/S (DENMARK) | PARALLELVEJ 2 DK-2800 KONGENS LYNGBY DENMARK | Asian Development Bank | 499,400.00 | — |
Project Preparatory | Technical Assistance 9242 | 05 Jul 2018 | ENTURA (Hydro Electric Corporation)(AUSTRALIA) | 89 CAMBRIDGE PARK DRIVE CAMBRIDGE, TASMANIA 7170 AUSTRALIA | Asian Development Bank | 199,840.00 | — |
Project Preparatory | Technical Assistance 9242 | 01 Jun 2018 | GHD PTY LTD._, NZL(NEW ZEALAND) in association with GUTTERIDGE HASKINS & DAVEY PTY LTD(UNITED KINGDOM) | LEVEL 16 ASB BANK CENTRE, 135 ALBERTA ST AUCKLAND 1010, NEW ZEALAND FAX +64 9 307 7300/[email protected] | Asian Development Bank | 599,174.00 | — |
Project Preparatory | Technical Assistance 9242 | 19 Oct 2017 | ENTURA, AUS(AUSTRALIA) | 89 CAMBRIDGE PARK DRIVE CAMBRIDGE, TASMANIA 7170 AUSTRALIA | Asian Development Bank | 2,561,766.00 | — |
Procurement Plan
None currently available.