Vanuatu : Energy Access Project

Sovereign Project | 49450-008

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.

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Project Details

Related Projects

Project Name Energy Access Project
Project Number 49450-008
Country / Economy Vanuatu
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0543-VAN: Energy Access Project
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 US$ 2.50 million
Grant 0811-VAN: Energy Access Project (additional financing)
Asian Development Fund US$ 6.00 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 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

Livelihoods of households in Espiritu Santo and Malekula improved
Project Outcome
Description of Outcome

Supply of clean renewable electricity to households in Espiritu Santo and Malekula increased
Progress Toward Outcome After the commissioning of the Brenwe Hydropower Plant and transmission lines in Malekula, scheduled for Q3/2023, clean and renewable electricity will be supplied to households in Malekula.
Implementation Progress
Description of Project Outputs

Brenwe Hydropower Plant put into operation by the government

Distribution grid extended and additional households connected by the government

Capacity building for project beneficiaries undertaken
Status of Implementation Progress (Outputs, Activities, and Issues) The contract for the Brenwe Hydropower Plant was awarded on 13 November 2019 and was signed on 21 January 2020. Due to COVID-19 travel restrictions, the Contractor could only mobilize on 24 March 2021. The completion of the hydropower plant and transmission lines in Malekula is scheduled for Q3/2023, and the completion of the transmission lines in Espiritu Santo is scheduled for Q4/2023.
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 are related to 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. Environmental management plans have been updated based on the detailed designs.
Involuntary Resettlement The project had land acquisition impacts for the Brenwe Hydropower Plant are not deemed significant. The transmission line extension at Espiritu Santo follows 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 are the Vanuatu government (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 government (MFEM, MOCC, MLNR, VPMU, MIPU, PWD, Provincial Councils, affected land owners, and other relevant agencies), and development partners.
Responsible ADB Officer Elbling, Elmar
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Liaison and Coordination Office in Sydney, Australia
Executing Agencies
Ministry of Finance & Economic Management
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 26 Apr 2023

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 - 06 Apr 2022
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2.50 Cumulative Contract Awards
ADB 2.50 15 May 2023 2.50 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 15 May 2023 2.50 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Partly satisfactory - Satisfactory

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 15 May 2023 0.00 6.85 98%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 7.00 15 May 2023 0.00 6.56 94%

Grant 0811-VAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Dec 2021 07 Dec 2021 20 Dec 2021 31 Mar 2024 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 9.10 Cumulative Contract Awards
ADB 6.00 15 May 2023 5.18 0.00 86%
Counterpart 3.10 Cumulative Disbursements
Cofinancing 0.00 15 May 2023 3.48 0.00 58%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

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 - 18 Oct 2022
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2.50 Cumulative Contract Awards
ADB 2.50 15 May 2023 2.42 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 15 May 2023 2.42 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

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.

Title Document Type Document Date
Energy Access Project: Audited Project Financial Statements (January-December 2021) Audited Project Financial Statements Dec 2022
Energy Access Project: Audited Project Financial Statements (January-December 2020) Audited Project Financial Statements Jan 2022
Amendment to the Financing Agreement for Loan 3572 and Grants 0543-VAN and 0544-VAN: Energy Access Project Financing Agreement Jan 2021
Energy Access Project: Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements Sep 2020
Energy Access Project: Procurement Plan Procurement Plans Mar 2020
Energy Access Project: Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements Oct 2019
Energy Access Project: Gender Action Plan Gender Action Plans Nov 2017
Energy Access Project: Investment Facility Report - Pacific Renewable Energy Investment Facility Investment Facility Report Nov 2017
Financing Agreement (Ordinary Operations [Concessional] and Special Operations) for Loan 3572 and Grant 0543-VAN: Energy Access Project Agreements Oct 2017
Grant Agreement (Externally Financed - Strategic Climate Fund) for Grant 0544-VAN: Energy Access Project Agreements Oct 2017
Energy Access Project: Project Administration Manual (As of Project Approval) Project/Program Administration Manual Sep 2017

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
Energy Access Project: Environmental and Social Monitoring Report (January-June 2022) Environmental and Social Monitoring Reports Nov 2022
Energy Access Project: Malekula Power Transmission Line and Transmission Spur Line Extensions (Lot 1 - Poles 244 to 292) Resettlement Plan Resettlement Plans Jun 2022
Energy Access Project: Land Acquisition and Resettlement Plan Resettlement Plans Jun 2022
Energy Access Project: Environmental and Social Monitoring Report (July-December 2021) Environmental and Social Monitoring Reports Dec 2021
Energy Access Project: Environmental and Social Monitoring Report (January-June 2021) Environmental and Social Monitoring Reports Sep 2021
Energy Access Project: Brenwe Hydro Power Subproject Social Monitoring Report (July-December 2020) Social Monitoring Reports Jul 2021
Energy Access Project: Environmental and Social Monitoring Report (July-December 2020) Environmental and Social Monitoring Reports Jul 2021
Energy Access Project: Environmental and Social Monitoring Report (January-June 2020) Environmental and Social Monitoring Reports Dec 2020
Energy Access Project: Environmental and Social Monitoring Report (July-December 2018) Environmental and Social Monitoring Reports May 2020
Energy Access Project: Environmental and Social Monitoring Report (July– December 2019) Environmental and Social Monitoring Reports May 2020
Energy Access Project: Environmental and Social Monitoring Report (January-July 2019) Environmental and Social Monitoring Reports Oct 2019
Energy Access Project: Social Monitoring Report Social Monitoring Reports Jun 2019
Energy Access Project: Brenwe Hydropower Subproject Updated Initial Environmental Examination Initial Environmental Examination Feb 2019
Energy Access Project: Port Olry Grid Extension Subproject Initial Environmental Examination Initial Environmental Examination Sep 2017
Energy Access Project: Brenwe Hydropower Subproject Resettlement Plan Resettlement Plans Sep 2017
Energy Access Project: Brenwe Hydropower Subproject Initial Environmental Examination Initial Environmental Examination Sep 2017

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

Tender Title Type Status Posting Date Deadline
Senior Gender and Development Analyst Individual - Consulting Closed
Gender and Development Specialist Individual - Consulting Closed
Project Manager Individual - Consulting Closed
Loan 3572, Grant 0543, 0544 VAN: Vanuatu Energy Access Project [VEAP - BHP 01/2019] Invitation for Bids Closed
Loan 3572, Grant 0543, 0544 VAN: Vanuatu Energy Access Project [VEAP - T&D 02/2019] Invitation for Bids Closed
Design and Supervision Consultants Firm - Consulting Closed
Hydropower Civil Engineer Individual - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Implementation design supervision consultant Grant 0811 14 Jul 2022 Stantec New Zealand | 2 Hazeldean Road Addington Christchurch Ministry of Finance & Economic Management 153,036.78 —
Project management support to the Vanuatu Project Management Unit Grant 0544 04 Oct 2021 Tony Alvos | Bladinier Estate Shefa Province Port Vila Vanuatu Ministry of Finance & Economic Management 109,400.00 —
BRENWE HYDROPOWER PLANT Loan 3572 24 Jan 2020 MAP/VORTEX JOINT VENTURE | 27/23 TUKORAKO DRIVE MOUNT MAUNGANUI NEW ZEALAND Ministry of Finance & Economic Management 5,857,515.97 2,000,000.00
BRENWE HYDROPOWER PLANT Grant 0544 21 Jan 2020 MAP/VORTEX JOINT VENTURE | 27/23 TUKORAKO DRIVE MOUNT MAUNANUI NEW ZEALAND Ministry of Finance & Economic Management 3,857,515.97 —
BRENWE HYDROPOWER PLANT Grant 0544 12 Dec 2019 MAP/VORTEX JOINT VENTURE | 27/23 TUKORAKO DRIVE MOUNT MAUNANUI NEW ZEALAND Ministry of Finance & Economic Management 3,420,787.97 —
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 Mar 2020