Tonga: Renewable Energy Project

Sovereign Project | 49450-012

Tonga Renewable Energy Project (TREP) has three components: (i) a large BESS capacity on Tongatapu to ensure that the intermittent electricity generated from solar photovoltaic and wind power to be funded by private independent power producers can be stored and used overnight without negatively affecting Tonga Power Limited's grids; (ii) electricity generation from the most feasible renewable resources in Tonga in Eua and Vava'u islands, and in five outer islands (O'ua, Tungua, Kotu, Mo'unga'one, and Niuafo'ou); and (iii) grid technologies and management upgrade to adapt to new electricity sources in five outer islands. The project also includes capacity building and project management support, with an emphasis on providing women with training and economic empowerment opportunities.

Project Name Renewable Energy Project
Project Number 49450-012
Country / Economy Tonga
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0640-TON: Renewable Energy Project
Asian Development Fund US$ 12.20 million
Grant 0641-TON: Renewable Energy Project
Green Climate Fund US$ 29.90 million
Grant 0642-TON: Renewable Energy Project
Government of Australia US$ 2.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Electricity transmission and distribution - Renewable energy generation - solar

Gender Equity and Mainstreaming Effective gender mainstreaming
Description Tonga Renewable Energy Project (TREP) has three components: (i) a large BESS capacity on Tongatapu to ensure that the intermittent electricity generated from solar photovoltaic and wind power to be funded by private independent power producers can be stored and used overnight without negatively affecting Tonga Power Limited's grids; (ii) electricity generation from the most feasible renewable resources in Tonga in Eua and Vava'u islands, and in five outer islands (O'ua, Tungua, Kotu, Mo'unga'one, and Niuafo'ou); and (iii) grid technologies and management upgrade to adapt to new electricity sources in five outer islands. The project also includes capacity building and project management support, with an emphasis on providing women with training and economic empowerment opportunities.
Project Rationale and Linkage to Country/Regional Strategy TREP will help Tonga rapidly move from its heavy dependence on imported fossil fuels for power generation (about 90%) to using clean and renewable energy resources that are low carbon and climate resilient. TREP will also provide technical solutions, such as a battery energy storage system, and capacity building for promoting more private sector investments in renewables, which will help Tonga meet its 50% renewable energy target by 2020 and 70% by 2030. TREP will also increase energy access of marginalized populations in the outer islands, where access is low and limited.
Impact Reduced Tonga's dependency on imported fossil fuel for power generation
Project Outcome
Description of Outcome Expanded access to clean, resilient and affordable energy for the population in Tonga at a lower cost
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Battery Energy storage system (BESS) facilities on Tongatapu installed

Grid-connected renewable energy generation on 'Eua and Vava'u installed

Renewable-based hybrid systems and mini-grids on outer-Islands installed

Strengthening of capacity building installed

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

Output 1 - Physical construction completed. On track to complete testing and commissioning by end 2021.

Output 2 - Site works commenced and construction ongoing in 'Eua and Vava'u. Targeting completion by Q3 2022

Output 3 - Designs are completed but construction is delayed due to border and travel restrictions. Targeting completion by Q1 2023.

Output 4 - Capacity building activities, project management support, and construction supervision support ongoing.

Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement B
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 Wimalasena, Ranishka Y.
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Subregional Office in Suva, Fiji
Executing Agencies
Ministry of Finance
Vuna Road
Nuku'alofa
Kingdom of Tonga
Ministry of Meteorology, Energy, Information, Disaster Management, Environment, Climate Change, and Communications (MEIDECC)
OG Sanft Building Corner of Taufa'ahau
Road and Wellington Road, Nuku'alofa,
Tonga
Tonga Power Limited
P.O. Box 429, Nuku'alofa, Tonga
Timetable
Concept Clearance 14 Dec 2019
Fact Finding 30 Jul 2018 to 03 Aug 2018
MRM 22 Jan 2019
Approval 11 Mar 2019
Last Review Mission -
Last PDS Update 25 Nov 2021

Grant 0640-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Mar 2019 13 Sep 2019 22 Nov 2019 30 Apr 2023 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 17.80 Cumulative Contract Awards
ADB 12.20 28 Jun 2022 9.71 0.00 80%
Counterpart 5.60 Cumulative Disbursements
Cofinancing 0.00 28 Jun 2022 7.10 0.00 58%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Unsatisfactory Satisfactory Unsatisfactory Satisfactory Unsatisfactory

Grant 0641-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Mar 2019 13 Sep 2019 22 Nov 2019 30 Apr 2023 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 29.90 Cumulative Contract Awards
ADB 0.00 28 Jun 2022 0.00 23.17 77%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 29.90 28 Jun 2022 0.00 16.77 56%

Grant 0642-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Mar 2019 13 Sep 2019 22 Nov 2019 30 Apr 2023 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.50 Cumulative Contract Awards
ADB 0.00 28 Jun 2022 0.00 2.50 100%
Counterpart 3.00 Cumulative Disbursements
Cofinancing 2.50 28 Jun 2022 0.00 1.16 46%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Unsatisfactory Satisfactory Partly satisfactory Satisfactory Unsatisfactory

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.

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Title Document Type Document Date
Renewable Energy Project: Tonga Power Limited Audited Project Financial Statements (July 2020-June 2021) Audited Project Financial Statements Jun 2022
Renewable Energy Project: Ministry of Meteorology, Energy, Information, Disaster Management, Environment, Climate Audited Project Financial Statements (July 2020-June 2021) Audited Project Financial Statements Dec 2021
Renewable Energy Project: Procurement Plan Procurement Plans Oct 2021
Renewable Energy Project: Ministry of Meteorology, Energy, Information, Disaster Management, Environment, Climate Audited Project Financial Statements (July 2019-June 2020) Audited Project Financial Statements Apr 2021
Renewable Energy Project: Tonga Power Limited Audited Project Financial Statements (July 2019-June 2020) Audited Project Financial Statements Mar 2021
Grant Agreement (Externally Financed - Green Climate Fund) for Grant 0641-TON: Renewable Energy Project Grant Agreement Sep 2019
Grant Agreement (Externally Financed - the Government of Australia) for Grant 0642-TON: Renewable Energy Project Grant Agreement Sep 2019
Project Agreement for Grants 0640-TON, 0641-TON, and 0642-TON: Renewable Energy Project Project/Program Agreements Sep 2019
Grant Agreement (Special Operations) for Grant 0640-TON: Renewable Energy Project Grant Agreement Sep 2019
Renewable Energy Project: Investment Facility Report - Pacific Renewable Energy Investment Facility Investment Facility Report Mar 2019
Renewable Energy Project: Project Administration Manual Project/Program Administration Manual Mar 2019
Renewable Energy Project: Gender Action Plan Gender Action Plans Mar 2019
Renewable Energy Project: Gender Action Plan Gender Action Plans May 2018
Renewable Energy Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Mar 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.


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
G0640/G0641/G0642-TON Renewable Energy Project Invitation for Bids Active 20 Jun 2022 01 Aug 2022
G0640/G0641/G0642-TON Renewable Energy Project (TREP-13) Invitation for Bids Closed 23 Dec 2021 13 Apr 2022
PMU O&M Specialist Individual - Consulting Closed 10 Nov 2021 19 Nov 2021
Project Management Unit (PMU) Manager Individual - Consulting Closed 18 Dec 2019 24 Dec 2019
Social Safeguards and Gender Officer Individual - Consulting Closed 07 Dec 2019 20 Dec 2019
O&M Contracts Expert Individual - Consulting Closed 07 Dec 2019 16 Dec 2019
Project Accountant Individual - Consulting Closed 06 Dec 2019 19 Dec 2019
Renewable Energy Control and Integration Expert Individual - Consulting Closed 06 Dec 2019 16 Dec 2019
IPP Transaction Advisory Services (Technical) Individual - Consulting Closed 04 Dec 2019 16 Dec 2019
IPP Transaction Advisory Services (Commercial) Individual - Consulting Closed 04 Dec 2019 16 Dec 2019
49450-TON: Tonga Renewable Energy Project [TREP-03] - CORRIGENDUM Invitation for Bids Closed 20 Aug 2019 08 Oct 2019
49450-TON: Tonga Renewable Energy Project [TREP-03] - ORIGINAL Invitation for Bids Closed 07 Aug 2019 01 Oct 2019
Loan No. 49450-TON: Renewable Energy Project [TREP-02] Invitation for Bids Closed 11 Feb 2019 26 Mar 2019
Construction Supervision and Capacity Building Consultant Firm - Consulting Closed 29 Sep 2018 28 Oct 2018
49450-012-TON: Tonga Renewable Energy Project [TREP-01] Invitation for Bids Closed 14 Sep 2018 27 Nov 2018

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
O & M Specialist Grant 0642 27 Apr 2022 MMDMM Engineering Limited | 7 Maple Crescent Ministry of Finance 107,761.83
PMU SAFEGUARDS AND GENDER SPECIALIST Grant 0642 16 Apr 2020 ESETELELITA FULIVAI | NUKU'ALOFA TONGA Ministry of Finance 119,882.37
ICS-CONTROL AND INTEGRATION EXPERT Grant 0642 19 Feb 2020 KEITH SCOLES | MARCHWIEL TIMARU NEW ZEALAND Ministry of Finance 113,154.94
IPP TRANSACTION ADVISORY SERVICES-COMMERCIAL Grant 0642 10 Feb 2020 AMANDA LONSDALE (THRU) MAGNITUDE GLOBAL | 2723 36TH PLACE NW WASHINGTON UNITED STATES DC UNITED STATES Ministry of Finance 257,725.44
IPP ADVISOR - TECHNICAL Grant 0642 29 Jan 2020 GAVIN STREET | 1ST FLR 263 KINGSGROVE ROAD KINGSGROVE NSW AUSTRALIA 1480 AUSTRALIA Ministry of Finance 257,635.20
PROJECT MANAGER - PMU Grant 0642 26 Jan 2020 SIMON ALAN MURRAY WILSON | RD 6 BIENHEIM NEW ZEALAND Ministry of Finance 375,834.56
PROJECT MANAGER - PMU Grant 0640 26 Jan 2020 SIMON ALAN MURRAY WILSON | 202 SHANDS RD RD 6 BIENHEIM NEW ZEALAND Ministry of Finance 123,945.44
TREP-02: 'THE VILLA' BATTERY ENERGY STORAGE SYSTEM Grant 0641 14 Nov 2019 AKUO ENERGY SAS | 140 AVENUE DES CHAMP ELYSEES PARIS FRANCE Ministry of Finance 10,570,550.82

Procurement Plan

Title Document Type Document Date
Renewable Energy Project: Procurement Plan Procurement Plans Oct 2021