fbpx 49450-009: Solar Power Development Project | Asian Development Bank

Nauru: Solar Power Development Project

Sovereign (Public) Project | 49450-009 Status: Active

The facility will finance the grant to Nauru for the Solar Power Development Project. The project will finance (i) a grid-connected solar power plant with a capacity of 6 megawatts (MW) of alternating current; and (ii) a 2.5-megawatt-hour, 5 MW battery energy storage system (BESS) to enable smoothing of intermittent solar energy. The system will be fully automated and integrated with the existing diesel generation system (17.9 MW of installed capacity, currently operated manually) to optimize solar energy use, enable optimal BESS charging and discharging, and allow optimal shut-off of the diesel engines. This will reduce Nauru's reliance on diesel for power generation and decrease production costs. The project will also support the institutional strengthening of Nauru Utilities Corporation.

 
Project Name Solar Power Development Project
Project Number 49450-009
Country Nauru
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0664-NAU: Solar Power Development Project
concessional ordinary capital resources lending / Asian Development Fund US$ 22.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Energy / Renewable energy generation - solar

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The facility will finance the grant to Nauru for the Solar Power Development Project. The project will finance (i) a grid-connected solar power plant with a capacity of 6 megawatts (MW) of alternating current; and (ii) a 2.5-megawatt-hour, 5 MW battery energy storage system (BESS) to enable smoothing of intermittent solar energy. The system will be fully automated and integrated with the existing diesel generation system (17.9 MW of installed capacity, currently operated manually) to optimize solar energy use, enable optimal BESS charging and discharging, and allow optimal shut-off of the diesel engines. This will reduce Nauru's reliance on diesel for power generation and decrease production costs. The project will also support the institutional strengthening of Nauru Utilities Corporation. Project preparatory technical assistance was used to carry out project-enabling activities such as a Solar Power Expansion Plan for Nauru, project feasibility study, detailed design, and plant procurement contract bidding documents.
Project Rationale and Linkage to Country/Regional Strategy The project supports the operational priorities of ADB's Strategy 2030 by (i) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; (ii) accelerating progress in gender equality; and (iii) strengthening governance and institutional capacity. The project is also aligned with ADB's Strategy 2030 because it supports a country that is both a small island developing state and in a fragile and conflict-affected situation. Also, the project will directly support the target of 50% renewable energy for Nauru under the Nauru Energy Road Map 2018-2020, and assist the country in achieving its nationally determined contributions under the United Nations Framework Convention on Climate Change. The project is included in ADB's country operations business plan for 11 small Pacific island countries, 2019-2021.
Impact

Reliable, affordable, secure, and sustainable energy supply to meet the socioeconomic development needs of Nauru

The project is aligned with 50% of grid electricity supplied from renewable energy sources (Nauru Energy Road Map 2018-2020)

Viable power-generating capacity, including alternative (renewable) energy sources (Long-term Milestone 2025, National Sustainable Development Strategy 2005-2025)

Project Outcome
Description of Outcome The use of renewable energy within the grid will have increased and the cost of electricity generation will have decreased.
Progress Toward Outcome 2020, Q3: Procurement Package NUC/SPDP1 for Solar Farm/Battery Energy Storage System/Substation/SCADA has been awarded. No physical works for the solar components have commenced.
Implementation Progress
Description of Project Outputs

Solar power plant installed

Battery energy storage system installed

Institutional capacity of NUC strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)

In progress.

In progress.

In progress.

In progress.

In progress.

In progress.

In progress.

In progress.

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
Business Opportunities
Consulting Services All consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). Consulting services will be recruited through firms using the quality- and cost-based selection method (QCBS) with a quality to cost ratio of 90:10. Consulting services will include a Project Implementation Consultant (PIC) to review designs prepared by the contractor and provide supervision services/advice to NUC during the PPC.
Procurement

Procurement of goods and works for the Plant Procurement Contract (PPC) will follow ADB's Procurement Guidelines (2015, as amended from time to time) and will be based on ADB SBD (ICB Plant Procurement Method, and the Stage 1 Envelope Bidding Procedure) for the Procurement of Plant, Design, Supply and Installation. The contract will include final design and engineering, supply and installation of equipment, construction works and commissioning, and an O&M knowledge transfer program.

Advance contracting and retroactive financing will apply for the procurement of civil works and consultancy contracts. The amount to be retroactively financed will not exceed 20% of the ADB grant and can be done prior to grant effectiveness but not later than 12 months before the signing date of the grant agreement.

Responsible ADB Officer Abbasov, Rafayil
Responsible ADB Department Pacific Department
Responsible ADB Division PAEN
Executing Agencies
Department of Finance
[email protected]
Yaren District, Republic of Nauru,
Central Pacific
Department of Finance
Yaren District, Republic of Nauru,
Central Pacific
Ministry of Commerce, Industry and Environment
Government House, Yaren Nauru
Timetable
Concept Clearance 29 Nov 2017
Fact Finding 29 May 2019 to 05 Jun 2019
MRM 12 Aug 2019
Approval 18 Sep 2019
Last Review Mission -
Last PDS Update 26 Jan 2021

Grant 0664-NAU

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Sep 2019 27 Sep 2019 30 Mar 2020 28 Feb 2024 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 26.98 Cumulative Contract Awards
ADB 22.00 18 Sep 2019 0.00 0.00 0%
Counterpart 4.98 Cumulative Disbursements
Cofinancing 0.00 18 Sep 2019 1.50 0.00 7%

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.

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.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Tariff and Regulation Expert Individual - Consulting Closed 02 Dec 2020 08 Dec 2020
49450-NAU: Solar Power Development Project [NUC/SPDP1] Invitation for Bids Closed 12 Sep 2019 16 Jan 2020
49450-NAU: Solar Power Development Project Advance Notice Active 11 Sep 2019
SPDP2-Project Implementation Consultants Firm - Consulting Closed 11 Sep 2019 15 Nov 2019
49450-NAU: Solar Power Development Project Advance Notice Active 11 Sep 2019

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
PROJECT IMPLEMENTATION CONSULTANTS Grant 0664 12 Nov 2020 GHD LIMITED (NEW ZEALAND) MANUKAU AUCKLAND 2105 NEW ZEALAND Department of Finance 1,612,721.83
6.0 MW SOLAR FARM BATTERY ENERGY STORAGE SYSTEM WITH A CAPACITY OF 2.5 MWH/5.0 MW AND AN 11KV Grant 0664 15 Jul 2020 CHEC-HNAC-RISEN JV NO. 9 CHUN XIU ROAD DONGCHENG DISTRICT BEIJING CHINA PEOPLE'SREP.OF Department of Finance 14,311,732.68

Procurement Plan

Title Document Type Document Date
Solar Power Development Project: Procurement Plan Procurement Plans Dec 2020