Marshall Islands: Energy Security Project
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_).
George, Len V.
Request for information
|Project Name||Energy Security 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
Private sector development
|Sector / Subsector||
Energy / Energy utility services
|Gender Equity and Mainstreaming||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)
|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.
|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.|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Responsible ADB Officer||George, Len V.|
|Responsible ADB Department||Pacific Department|
|Responsible ADB Division||PAEN|
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|
|Approval||Signing Date||Effectivity Date||Closing|
|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||15.80||Cumulative Contract Awards|
|ADB||12.70||28 Sep 2022||12.35||0.00||97%|
|Cofinancing||0.00||28 Sep 2022||3.51||0.00||28%|
|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.
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 Security Project: Audited Project Financial Statements (13 December 2018-30 September 2021)||Audited Project Financial Statements||Aug 2022|
|Energy Security Project: Procurement Plan||Procurement Plans||Sep 2021|
|Energy Security Project: Project Administration Manual||Project/Program Administration Manual||Dec 2018|
|Grant Agreement (Special Operations) for Grant 0637-RMI: Energy Security Project||Grant Agreement||Dec 2018|
|Project Agreement for Grant 0637-RMI: Energy Security Project||Project/Program Agreements||Dec 2018|
|Energy Security Project: Investment Facility Report - Pacific Renewable Energy Investment Facility||Investment Facility Report||Dec 2018|
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.
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|
|Tank Farm Engineer||Individual - Consulting||Closed||01 Jul 2021||21 Jul 2021|
|Contract Administrator||Individual - Consulting||Closed||16 Jun 2021||22 Jun 2021|
|0637-RMI (SF): Energy Security Project (ICB-MTF-1)||Invitation for Bids||Closed||24 Sep 2020||13 Nov 2020|
|0637-RMI (SF): Energy Security Project [ICB-MTF-1]||Invitation for Bids||Closed||10 Mar 2020||30 Oct 2020|
|0637-RMI (SF): Energy Security Project [MTF-1]||Invitation for Bids||Closed||18 Dec 2019||12 Mar 2020|
|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||—|
|PROJECT MECHANICAL/PETROLEUM FITTER-ROY LAKUAPI||Grant 0637||10 Jul 2020||ROY LAKUAPI | NEW RABAUL ENB PAPUA NEW GUINEA||Ministry of Finance||152,992.00||—|
|PROJECT MECHANICAL ENGINEER-JAPETH GUMO||Grant 0637||09 Jul 2020||JAPETH GUMO | PO BOX 1836 BOROKO NCD PAPUA NEW GUINEA||Ministry of Finance||283,544.00||—|