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Vanuatu: Energy Access Project

Sovereign (Public) Project | 49450-008 Status: Active

The project will increase energy access and renewable energy generation in the two islands of Espiritu Santo and Malekula, being second and third largest population centers after Efate. The project will assist Vanuatu install hydropower generation to replace diesel generation in Malekula and will extend the distribution grid in both Malekula and Espiritu Santo. Project preparatory technical assistance was used in project preparation.

 
Project Name Energy Access Project
Project Number 49450-008
Country Vanuatu
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0543-VAN: Energy Access Project
concessional ordinary capital resources lending / Asian Development Fund US$ 2.50 million
Grant 0544-VAN: Energy Access Project
Strategic Climate Fund US$ 7.00 million
Loan 3572-VAN: Energy Access Project
concessional ordinary capital resources lending / Asian Development Fund US$ 2.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Renewable energy generation - small hydro

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will increase energy access and renewable energy generation in the two islands of Espiritu Santo and Malekula, being second and third largest population centers after Efate. The project will assist Vanuatu install hydropower generation to replace diesel generation in Malekula and will extend the distribution grid in both Malekula and Espiritu Santo. Project preparatory technical assistance was used in project preparation.
Project Rationale and Linkage to Country/Regional Strategy

Access to electricity nationwide in Vanuatu is low (33%), however drops even further in rural areas. Low access to reliable, affordable electricity has negative impact on the livelihoods of households, particularly rural households. Where electricity is available in the provinces, it is largely diesel generated. Cost of electricity is high, however, quality of supply is high which is partially due to the electricity grids being operated by the private sector. High cost and limited access to electricity is having a negative impact on economic development, particularly in the provinces. Over-reliance on imported fossil fuels (diesel) also has a negative macro-economic impact. In order to address these issues, the Government of Vanuatu has requested ADB to support development of least-cost renewable energy (hydropower) and grid extensions in targeted provincial centers.

In order to address the above barriers, the Project will construct the Brenwe Hydropower Plant which would displace an estimated 90% of the diesel generation in Malekula. The Project will increase the residential customer base in Espiritu Santo by 25% and in Malekula by 90%. Hydropower has been assessed to be the least-cost baseload generation option for Malekula.

The project is integrated into government long term strategic planning. The project supports the government's Priority and Action Agenda (PAA) 2006-2015, which aims to (i) reduce the cost of services, (ii) extend the coverage of rural electrification, and (iii) promote the use of renewable energy. The project is aligned with the government's action document Planning Long, Acting Short, 2009-2012 which aims to (i) ensure that electricity is more widely available at a fair price, and (ii) encourage investment in renewable electricity. The project is included in the Vanuatu National Energy Road Map (NERM) 2014.

Impact Impact the Project is Aligned with:
Project Outcome
Description of Outcome Increased supply of clean renewable electricity to households in Malekula and Espiritu Santo
Progress Toward Outcome

The Government of Vanuatu has completed recruitment of three consultants: (i) Owner's Engineer on 6 March 2018, (ii) DSC on 2 July 2018, and (iii) Independent Peer Reviewer on 27 November 2018.

The procurement for the (i) Engineering, Procurement and Construction for the Brenwe Hydropower Plant, and (ii) Engineering, Procurement and Construction for the Transmission and Distribution Power Networks are scheduled to be tendered out in April 2019. The contract awards are expected in Q3 2019.

Implementation Progress
Description of Project Outputs Brenwe hydropower plant put into operation by the government
Status of Implementation Progress (Outputs, Activities, and Issues) Not yet available.
Geographical Location Nation-wide, Brennwe
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects An initial environmental examination was prepared. The main potential environmental impacts will be created by the construction of the access road, the removal of vegetation within a modified habitat, the plant installation at the intake and powerhouse sites, and vegetation trimming along the transmission line corridor. Following a detailed design, the environmental management plan will be updated and integrated into the bidding documents.
Involuntary Resettlement The project will have land acquisition impacts for the Brenwe Hydropower Plant that were not deemed significant, and the transmission line extension at Espiritu Santo will follow the existing road corridor without any resettlement impacts. No physical relocation or loss of major income sources is expected from the implementation of the project.
Indigenous Peoples Melanesian Ni-Vanuatu groups constitute the majority population in the project area, their institutions are not separate from mainstream society, and these groups are not vulnerable because of their ethnicity.
Stakeholder Communication, Participation, and Consultation
During Project Design The stakeholders were the Vanuatu governments (MFEM, MOCC, MLNR, VPMU, MIPU, PWD, Provincial Councils, affected land owners, and other relevant agencies), and development partners.
During Project Implementation The stakeholders are the Vanuatu governments (MFEM, MOCC, MLNR, VPMU, MIPU, PWD, Provincial Councils, affected land owners, and other relevant agencies), and development partners.
Responsible ADB Officer Indrawansa, P.P.G.P.P.
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Liaison and Coordination Office in Sydney, Australia
Executing Agencies
Ministry of Finance & Economic Management
P.M.B. 058
Port Vila
Vanuatu
Timetable
Concept Clearance 18 Dec 2012
Fact Finding 27 Jan 2015 to 30 Jan 2015
MRM 05 Mar 2015
Approval 26 Sep 2017
Last Review Mission -
Last PDS Update 28 Mar 2019

Grant 0543-VAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2017 11 Oct 2017 18 Dec 2017 31 Mar 2024 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2.50 Cumulative Contract Awards
ADB 2.50 26 Sep 2017 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Sep 2017 0.00 0.00 0%

Grant 0544-VAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2017 11 Oct 2017 18 Dec 2017 31 Mar 2024 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 7.00 Cumulative Contract Awards
ADB 0.00 26 Sep 2017 0.00 1.69 24%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 7.00 26 Sep 2017 0.00 0.45 6%

Loan 3572-VAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2017 11 Oct 2017 18 Dec 2017 31 Mar 2024 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.60 Cumulative Contract Awards
ADB 2.50 26 Sep 2017 0.00 0.00 0%
Counterpart 3.10 Cumulative Disbursements
Cofinancing 0.00 26 Sep 2017 0.00 0.00 0%

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.

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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.

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.

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Tenders

Tender Title Type Status Posting Date Deadline
Loan 3572, Grant 0543, 0544 VAN: Vanuatu Energy Access Project [VEAP - BHP 01/2019] Invitation for Bids Active 02 Apr 2019 20 Jun 2019
Loan 3572, Grant 0543, 0544 VAN: Vanuatu Energy Access Project [VEAP - T&D 02/2019] Invitation for Bids Active 02 Apr 2019 20 Jun 2019
Design and Supervision Consultants Firm - Consulting Closed 28 Oct 2017 03 Dec 2017
Hydropower Civil Engineer Individual - Consulting Closed 13 Oct 2017 26 Oct 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
DESIGN AND CONSTRUCTION SUPERVISION CONTRACT Grant 0544 02 Jul 2018 STANTEC NEW ZEALAND 6 HAZELDEAN ROAD ADDINGTON CHRISTCHURCH 8024 NEW ZEALAND Ministry of Finance & Economic Management 1,379,845.00

Procurement Plan

Title Document Type Document Date
Energy Access Project: Procurement Plan Procurement Plans Feb 2019