Marshall Islands : Energy Security Project

Sovereign Project | 49450-011

The tank-farm rehabilitation project (with its proposed new name 'energy security project ) and the waste-to-energy project will both be processed under the Pacific Renewable Energy Investment Facility (49450 REG) ('the facility ).

Project Details

Related Projects

Project Name Energy Security Project
Project Number 49450-011
Country / Economy Marshall Islands
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0637-RMI: Energy Security Project
Asian Development Fund US$ 12.70 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Energy / Energy utility services

Gender No gender elements
Description The tank-farm rehabilitation project (with its proposed new name 'energy security project ) and the waste-to-energy project will both be processed under the Pacific Renewable Energy Investment Facility (49450 REG) ('the facility ).
Project Rationale and Linkage to Country/Regional Strategy

MEC operates a large diesel tank farm on Majuro. This tank farm comprises eight 750,000-gallon above-ground steel tanks and two smaller intermediate tanks for short-term storage during fuel transfers. The tank farm was designed to receive bulk diesel fuel delivery by ship for supply to the MEC power generation facilities located in immediate proximity to the tank farm, and to bunker fuel for delivery to commercial marine fleets (fishing) and other power generation facilities within the Marshall Islands (the largest of which is the Kwajalein Atoll Joint Utilities Resources company operating in Ebeye). The MEC tank farm's integrity and sustainability of operation is crucial for continued energy security in the Marshall Islands. Additionally, sales to commercial marine fleets is a significant source of revenue for MEC, which helps support its other operations (power generation and sales).

The MEC tank farm was commissioned in 1981 and appears to have been designed and soundly constructed in compliance with applicable codes and standards. However, its current condition is very poor, a consequence of many years of inadequate maintenance in a harsh marine corrosive environment subject to atmospheric salt spray from all directions. All tanks and piping show significant signs of corrosion. The concrete bunding also exhibits deterioration, and there is significant erosion of concrete flooring under tanks, exacerbating corrosion and causing stress on the steel tanks' welding joints. Critical safety and security features, such as ladders, bannisters, and basic lighting have also deteriorated or are entirely absent.

The risk of catastrophic failure of tanks and associated facilities (pumping equipment, piping, containment bunding, etc.) is significant. Such failure would be likely to result in an acute and perhaps prolonged shortage of fuel for power generation, significant environmental damage, and extraordinary high costs for remediation and interim alternative supply of fuel, as well as loss of revenue for MEC from fuel sales to commercial marine fleets.

MEC and the RMI Government have requested ADB support for rehabilitation of the tank farm so bolster RMI's energy security and mitigate risks associated with potential catastrophic failure at this facility.

The tank farm's condition was assessed under World Bank technical assistance in 2011. In 2014, with the intention of commencing partial rehabilitation on three of the tank farm's ten tanks (tanks 3, 6, and 9), MEC commissioned an updated technical assessment of the three subject tanks and prepared tender documents for works based on the assessment findings. For lack of funding, MEC was unable to proceed with the intended work, and has since only been able to perform urgent repairs to allow continued operation of the facility.

The proposed RMI energy security project (RMI ESP) will restore the MEC fuel tank farm to acceptable condition for sustained operation in compliance with applicable norms and standards for safety and reliability.


Energy security for the Marshall Islands improved (National Energy Policy and Energy Action Plan)

Safety and environmental risks associated with handling and storage of refined petroleum products reduced (National Energy Policy and Energy Action Plan)

Project Outcome
Description of Outcome

Safe and reliable operation of the fuel tank farm sustained and supply of fuel to power generation facilities throughout the Marshall Islands continued.

Progress Toward Outcome

The contract for the Tank Farm package was signed in December 2021. This is in an advanced stage of design. Deployment and shipping of materials on the first three tanks is expected in 2022.

The sea wall contract package was awarded in February 2021. Design work is completed.

The PIC and PMU is in place to support MEC.

Implementation Progress
Description of Project Outputs

Majuro tank farm rehabilitated

Majuro tank farm O&M program instituted

Status of Implementation Progress (Outputs, Activities, and Issues) The Majuro tank farm package is in an advanced stage of design. Work for the first 3 tanks is expected to start in 2022.
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 George, Len V.
Responsible ADB Department Sectors Group
Responsible ADB Division Energy Sector Office (SG-ENE)
Executing Agencies
Ministry of Finance, Banking and Postal Services
Concept Clearance 14 Dec 2019
Fact Finding 01 Oct 2018 to 05 Oct 2018
MRM 14 Nov 2018
Approval 06 Dec 2018
Last Review Mission -
Last PDS Update 28 Sep 2022

Grant 0637-RMI

Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Dec 2018 13 Dec 2018 04 Mar 2019 30 Jun 2024 30 Jun 2025 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 13.69 Cumulative Contract Awards
ADB 12.70 24 Oct 2023 12.58 0.00 99%
Counterpart 0.99 Cumulative Disbursements
Cofinancing 0.00 24 Oct 2023 10.44 0.00 82%
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.

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.

None currently available.

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.


Tender Title Type Status Posting Date Deadline
Safeguards Coordinator Individual - Consulting Closed
Tank Farm Engineer Individual - Consulting Closed
Contract Administrator Individual - Consulting Closed
0637-RMI (SF): Energy Security Project (ICB-MTF-1) Invitation for Bids Closed
0637-RMI (SF): Energy Security Project [ICB-MTF-1] Invitation for Bids Closed
0637-RMI (SF): Energy Security Project [MTF-1] Invitation for Bids Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
MAJURO TANK FARM REFURBISHMENT Grant 0637 13 Dec 2021 Pacific Engineering Projects Ltd | 349 Dominion Road Mt Eden Auckland 1024 New Zealand Ministry of Finance Banking and Postal Services 9,160,212.90
MAJURO TANK FARM SEAWALL UPGRADE Grant 0637 19 Feb 2021 CCB ENVICO PTY LTD | 473 VICTORIA STREET WEST MELBOURNE VIC 3003 AUSTRALIA Ministry of Finance Banking and Postal Services 2,895,615.31

Procurement Plan

Title Document Type Document Date
Energy Security Project: Procurement Plan Procurement Plans Sep 2021