49450-006: Outer Island Renewable Energy Project-Additional Financing | Asian Development Bank

Tonga: Outer Island Renewable Energy Project-Additional Financing

Sovereign (Public) Project | 49450-006 Status: Active

The proposed additional financing will support: (i) meeting cost overruns due to the higher bid price for the solar generation turnkey package to be implemented in the four outer islands of Ha'api and Niuatoputapu; (ii) meeting financing gaps for building a mini-grid system in the island of Niuatoputapu; and (iii) the scaling up of the current project by upgrading the existing electric service line in the four outer islands of Ha'apai.

 
Project Name Outer Island Renewable Energy Project-Additional Financing
Project Number 49450-006
Country Tonga
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0586-TON: Outer Island Renewable Energy Project-Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 5.50 million
Grant 0587-TON: Outer Island Renewable Energy Project Additional Financing
Global Environment Facility Grant US$ 2.64 million
Grant 0588-TON: Outer Island Renewable Energy Project-Additional Financing
Government of Australia US$ 740,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Partnerships
Private sector development
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed additional financing will support: (i) meeting cost overruns due to the higher bid price for the solar generation turnkey package to be implemented in the four outer islands of Ha'api and Niuatoputapu; (ii) meeting financing gaps for building a mini-grid system in the island of Niuatoputapu; and (iii) the scaling up of the current project by upgrading the existing electric service line in the four outer islands of Ha'apai.
Project Rationale and Linkage to Country/Regional Strategy Tonga is a kingdom of 177 islands divided into five island groups: 'Eua, Ha'apai, Niuas, Tongatapu, and Vava'u. Its 103,000 people inhabit about 36 of these islands. The peak demand of the four Tonga Power Limited (TPL) grids in 2016 was about 11.1 megawatts, and yearly demand totaled about 55 gigawatt-hours. An estimated 13 million liters of diesel were consumed to generate this electricity at a cost that was equivalent to about 10% of the year's total gross domestic product and about 15% of the total value of imports. Peak demand is expected to increase to 17.2 megawatts by 2020. Petroleum dependency makes Tonga highly vulnerable to oil price shocks, which affect the affordability of food, goods, electricity, and transport.
Impact Reduction of Tonga's dependence on imported fossil fuel for power generation.
Project Outcome
Description of Outcome On-grid and off-grid generation systems are optimized and provide increased consumer access to electricity generated by solar power at a reduced cost.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

The project will construct and install solar power systems with a total capacity of 1.32 MWp on nine outer islands of Tonga, and the existing grid network on the islands of Vava'u and 'Eua rehabilitated by TPL.

O&M knowledge transferred through training

Project implemented and managed efficiently.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Fay, David R.
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Subregional Office in Suva, Fiji
Executing Agencies
Ministry of Finance and National Planning
Vuna Road
Nuku'alofa
Kingdom of Tonga
Timetable
Concept Clearance -
Fact Finding 15 May 2017 to 19 May 2017
MRM 13 Jun 2018
Approval 31 Jul 2018
Last Review Mission -
Last PDS Update 08 Aug 2018

Grant 0586-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Jul 2018 08 Aug 2018 20 Sep 2018 30 Jun 2021 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.50 Cumulative Contract Awards
ADB 5.50 31 Jul 2018 1.07 0.00 19%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 31 Jul 2018 0.00 0.00 0%

Grant 0587-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Jul 2018 08 Aug 2018 20 Sep 2018 30 Jun 2021 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2.64 Cumulative Contract Awards
ADB 0.00 31 Jul 2018 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 2.64 31 Jul 2018 0.00 0.00 0%

Grant 0588-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Jul 2018 08 Aug 2018 20 Sep 2018 30 Jun 2021 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.74 Cumulative Contract Awards
ADB 0.00 31 Jul 2018 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.74 31 Jul 2018 0.00 0.00 0%

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

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Contracts Awarded

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