Marshall Islands: Majuro Power Network Strengthening Project
2. The Project will support the Republic of the Marshall Islands' (RMI) renewable energy targets and greenhouse-gas (GHG) emissions reduction targets through investments in the Majuro distribution network. The project will install an advanced metering infrastructure (AMI) in the Majuro power distribution network to enable Marshalls Energy Company (MEC) to collect data on physical energy flows within its network, reduce system technical and commercial losses, and improve system reliability. The data provided by the AMI will also inform successive investments in Majuro's power system, including siting of additional renewable energy generation assets on the Majuro power system. Consulting advisory services will be provided to support the AMI implementation, and to prepare a comprehensive capacity-building and business-process reengineering (BPR) roadmap for implementation under successive investment projects.
George, Len V.
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|Project Name||Majuro Power Network Strengthening Project|
|Country / Economy||Marshall Islands
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Energy / Electricity transmission and distribution
|Gender Equity and Mainstreaming||No gender elements|
|Description||2. The Project will support the Republic of the Marshall Islands' (RMI) renewable energy targets and greenhouse-gas (GHG) emissions reduction targets through investments in the Majuro distribution network. The project will install an advanced metering infrastructure (AMI) in the Majuro power distribution network to enable Marshalls Energy Company (MEC) to collect data on physical energy flows within its network, reduce system technical and commercial losses, and improve system reliability. The data provided by the AMI will also inform successive investments in Majuro's power system, including siting of additional renewable energy generation assets on the Majuro power system. Consulting advisory services will be provided to support the AMI implementation, and to prepare a comprehensive capacity-building and business-process reengineering (BPR) roadmap for implementation under successive investment projects.|
|Project Rationale and Linkage to Country/Regional Strategy||
1. Sector Policy and Renewable Energy Targets. The RMI Government has adopted a target of 20% renewable generation for electricity by 2020, and has committed to a 35% reduction of GHG emissions under its UNFCCC Paris Agreement nationally determined contributions (NDCs), as compared to its 2010 baseline. RMI has long-term target of net-zero emissions for its entire economy by 2050 under its NDCs. 54% of RMI's emissions are from power generation. 90% of RMI's total primary energy supply derives from imported petroleum products.
2. Concentration of Power Generation and Consumption on Majuro. MEC, RMI's largest power utility, is responsible for electricity service throughout RMI, except for Ebeye in Kwajalein Atoll. MEC's main system on Majuro Atoll provides universal service to a population of 28,000 persons, and delivers approximately 72% of electric power consumed in RMI (with Ebeye accounting for 24%, and outer islands representing the balance).
3. High Reliance on Imported Petroleum Fuel. Diesel generation accounts for approximately 98% of the Majuro system's annual power generation of approximately 53.7 GWh. While Majuro enjoys an abundant solar resource, and may have an economically viable wind resource, development of additional intermittent renewable generation beyond its current 900 kWp installed solar generation is technically infeasible without investment in network, generation, and control hardware to ensure network stability.
4. High Network Losses and Network Operation Data Gaps. Beyond the constraint on installation of additional solar generation, Majuro exhibits very high technical and non-technical losses, estimated in 2010 approximately 20% of electricity introduced into the distribution network. Reducing Majuro's network losses will significantly contribute to a reduction in diesel consumption and improve MEC's revenue generation by reducing unbilled consumption. The installation of an advanced metering infrastructure will facilitate this, and will also provide required data on the Majuro network's operation to inform further network loss reduction investments, the siting of distributed renewable energy generation, and distribution network upgrades to enable the same without jeopardizing stable system operation.
5. Rapid Loss-Reduction Measures Possible. The project will support the reduction of Majuro's dependence on imported diesel fuel by reducing its distribution network losses, which constitute around 20% of total generated energy in Majuro. The project will (i) install advanced metering infrastructure (AMI) on all distribution transformers on the network, and (ii) install centralized control and metering distribution network center, which will automatically collect and compile metered data from all distribution transformers. The AMI will provide data to MEC to identify network areas suffering high technical or non-technical losses, which will enable MEC to reduce these losses. It is estimated that simple measures requiring little resource investments, such as re-configuration of customer supply connections to distribution transformers and repair of malfunctioning customer meters will enable MEC to rapidly reduce network losses by up to 4% of generated power.
6. MEC Business Process and Organizational Inefficiencies. Deficiencies in MEC's business processes, including budget formulation, asset management and maintenance, cost accounting and reporting, and capital project planning and execution, among others, are cause for concern for the ability of MEC's sustainability as a going concern. To maximize value for investments under this project, and future projects financed by ADB or other donors, a far-reaching capacity-building and institutional strengthening program is essential.
7. Project Preparation and Project Readiness. Consultants under TA-9225 RMI have prepared the Project as a discrete intervention to capitalize on the opportunity to reduce system technical and commercial losses while informing future investments under a renewable energy investment road-map that these consultants are preparing. Consultants have prepared ICB bid documents for a turn-key AMI contract and implementation consultant support. ADB will provide support to MEC during tendering for ICB procurements through TA-9086 REG (Building Project Implementation Capacity in the Pacific), and through SDCC smart-grid experts for technical input in bid evaluation. The RMI Government have agreed to re-delegate to ADB (PARD) procurement of consulting services to assess MEC's business processes and develop business-process reengineering recommendations and action plan.
8. Alignment with development plans. The project is included in ADB's Country Operations Business Plan 2017-2019 and supports RMI's national energy policy and energy action plan to reduce dependence on imported fossil fuels and reduce supply-side losses.
The impacts will be (i) reduced dependence on imported fossil fuels, (ii) supply-side losses reduced, (iii) renewable electricity generation increased.
|Description of Outcome||
MEC's consumption of diesel fuel for power generation reduced.
|Progress Toward Outcome||Not yet due.|
|Description of Project Outputs||
Advanced Metering Infrastructure on Majuro distribution network
MEC business process reengineering and management improvement action plans
|Status of Implementation Progress (Outputs, Activities, and Issues)||The review of the bid evaluation report for the Advance Metering Infrastructure package has been completed. ADB has advised the implementing agency to proceed with the negotiation with the first-ranked, most substantially responsive bidder in September 2022. The expected awarding of the contract for this package is on or before Q1 2023.|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||Project consultants have been engaged in September 2020 to support the Shopping for AMI.|
|Procurement||Specs for Advance Metering Infrastructure Shopping package are being reviewed by the consultant. To be floated in Q1 2021.|
|Responsible ADB Officer||George, Len V.|
|Responsible ADB Department||Pacific Department|
|Responsible ADB Division||PAEN|
Asian Development Bank
Marshalls Energy Company
Ministry of Finance, Banking and Postal Services
|Concept Clearance||29 Jun 2017|
|Fact Finding||18 Jul 2017 to 26 Jul 2017|
|MRM||06 Sep 2017|
|Approval||27 Nov 2017|
|Last Review Mission||-|
|Last PDS Update||28 Sep 2022|
|Approval||Signing Date||Effectivity Date||Closing|
|27 Nov 2017||07 Dec 2017||07 May 2018||31 Jul 2020||31 Jul 2024||-|
|Financing Plan||Grant Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||2.25||Cumulative Contract Awards|
|ADB||2.00||23 Jan 2023||1.97||0.00||98%|
|Cofinancing||0.00||23 Jan 2023||0.29||0.00||15%|
|Status of Covenants|
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.
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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|
|Majuro Power Network Strengthening Project: Indigenous Peoples Impact Categorization||Indigenous Peoples Impact Matrix||Oct 2017|
Evaluation Documents See also: Independent Evaluation
None currently available.
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.
ADB to Help Marshall Islands Deliver More Efficient, Sustainable PowerADB is providing a $2 million grant to help reduce the Marshall Islands’ consumption of fossil fuels and increase renewable electricity generation in the country.
|Tender Title||Type||Status||Posting Date||Deadline|
|Grant No. 0554-RMI: Majuro Power Network Strengthening Project [MEC-MPNSP-01-2018]||Invitation for Bids||Closed||05 Jun 2018||24 Aug 2018|
|Supervision Consultant for Advanced Metering Infrastructure Supply and Installation||Individual - Consulting||Closed||05 Jun 2018||11 Jun 2018|
|Contract Title||Approval Number||Contract Date||Contractor | Address||Executing Agency||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|Supply, Installation and commissioning of Advanced Metering Infrastructure (AMI)||Grant 0554||31 Dec 2022||Genus Power Infrastructure Limited | SPL-3, RIICO Industrial Area, Sitapura, Tonk Road, Jaipur-302022 (Rajasthan), India||Ministry of Finance, Banking and Postal Services||1,574,320.00||—|
|METERING EXPERT||Grant 0554||01 Sep 2020||RITESH SINGH (THROUGH TETRA TECH ES INC.) | 1320 N. COURTHOUSE RD. ARLINGTON VA 22201 INDIA||Ministry of Finance||214,067.00||—|
|PACKAGE2-SUPERVISION CONSULTANT-ADVANCED METERING INFRASTRUCTURE SUPPLY AND INSTALLATION||Grant 0554||10 Aug 2018||MR.CHARLES MORRIS | NEW ZEALAND NEW ZEALAND||Ministry of Finance||191,000.00||—|
|Title||Document Type||Document Date|
|Majuro Power Network Strengthening Project: Procurement Plan||Procurement Plans||Mar 2021|