Kiribati : South Tarawa Renewable Energy Project

Sovereign Project | 49450-021

The South Tarawa Renewable Energy Project (STREP or the Project) will support upscaling of solar power generation in Kiribati. The Project will reduce dependence on fossil fuel imports by increasing the renewable energy (RE) percentage of electricity generation. STREP has three outputs: (i) solar photovoltaic and battery energy storage system installed; (ii) draft energy act to enable increased deployment of renewable energy developed; and (iii) institutional capacity for inclusive renewable energy project development and implementation enhanced.

Project Details

Related Projects

Project Name
South Tarawa Renewable Energy Project
Project Number
49450-021
Country / Economy
  • Kiribati
Project Status
Active
Project Type / Modality of Assistance
  • Grant
Source of Funding / Amount
Grant 0762-KIR: South Tarawa Renewable Energy Project
Source Amount
Asian Development Fund US$ 8.00 million
Grant 0763-KIR: South Tarawa Renewable Energy Project
Source Amount
Government of New Zealand US$ 2.00 million
Grant 0764-KIR: South Tarawa Renewable Energy Project
Source Amount
Strategic Climate Fund US$ 3.70 million
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector
  • Energy / Energy sector development and institutional reform - Renewable energy generation - solar

Gender
Effective gender mainstreaming
Description
The South Tarawa Renewable Energy Project (STREP or the Project) will support upscaling of solar power generation in Kiribati. The Project will reduce dependence on fossil fuel imports by increasing the renewable energy (RE) percentage of electricity generation. STREP has three outputs: (i) solar photovoltaic and battery energy storage system installed; (ii) draft energy act to enable increased deployment of renewable energy developed; and (iii) institutional capacity for inclusive renewable energy project development and implementation enhanced.
Project Rationale and Linkage to Country/Regional Strategy
The South Tarawa Renewable Energy Project (STREP-the project), ADB's first in Kiribati's energy sector, will finance climate-resilient solar photovoltaic generation, a battery energy storage system, and will support institutional capacity building including the development of an inclusive and gender-sensitive renewable energy enabling framework while addressing barriers to private sector investment. The project will help South Tarawa increase renewable energy grid penetration from 9% to 44%, thereby exceeding the government target for South Tarawa of 36% renewable energy penetration by 2025. Increased solar generation will benefit the economy through reduced importation of fossil fuels and placing downward pressure on tariffs. Utilization of renewable energy also reduces GHG emissions which contribute to global warming and rising sea levels that render Kiribati among the most vulnerable.
Impact

Renewable energy generation increased and greenhouse gas emissions reduced

Project Outcome

Description of Outcome

Generation and utilization of clean energy in South Tarawa increased

Progress Toward Outcome
PMU consultants, PIC, and FRAP are onboard. Turnkey and O&M contracts have been awarded in Q4 2022 (Design, Supply, Installation and Testing of STREP Solar PV/BESS and O&M Services-Solar PV/BESS Facilities). Ongoing recruitment of safeguards PMU officers (replacement). Design is under review.

Implementation Progress

Description of Project Outputs

Solar photovoltaic and battery energy storage system installed

Draft energy act to enable increased deployment of renewable energy developed

Institutional capacity for inclusive renewable energy project development and implementation enhanced

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

Turnkey and O&M contracts have been awarded and are now active. Design under review.

Energy Act 2022 signed into law in February 2023.

PMU has been established (replacement officers under recruitment). capacity building program being implemented.

Geographical Location
Nation-wide, Tarawa

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

Business Opportunities

Consulting Services
The recruitment of consultants are according to ADB's Procurement Policy (2017). All consultants - Project Management Unit (PMU) consultants, Project Implementation Consultant (PIC), and Financial Recovery Action Plan Consultant (FRAP) are on board.
Procurement

All packages on goods and works have been awarded. The procurement of goods and works were undertaken in accordance with ADB's Procurement Policy (2017). Since ADB is administering cofinancing resources for ADF-financed operations, universal procurement applies.

Open competitive bidding procedures were used for the main procurement package under the project.

Contact

Responsible ADB Officer
Tiangco, Cinderella C.
Responsible ADB Department
Sectors Group
Responsible ADB Division
Energy Sector Office (SG-ENE)
Executing Agencies
Ministry of Finance and Economic Development

Timetable

Concept Clearance
11 Feb 2019
Fact Finding
23 Mar 2020 to 23 Apr 2020
MRM
09 Oct 2020
Approval
26 Nov 2020
Last Review Mission
-
Last PDS Update
26 Oct 2023

Funding

Grant 0762-KIR

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Nov 2020 21 Dec 2020 28 Jan 2021 30 Sep 2024 30 Sep 2025 -
Financing Plan
  Total (Amount in US$ million)
Project Cost 9.00
ADB 8.00
Counterpart 1.00
Cofinancing 0.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 18 Jul 2024 6.15 0.00 77%
Cumulative Disbursements 18 Jul 2024 1.04 0.00 13%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory

Grant 0763-KIR

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Nov 2020 21 Dec 2020 28 Jan 2021 30 Sep 2024 30 Sep 2025 -
Financing Plan
  Total (Amount in US$ million)
Project Cost 2.00
ADB 0.00
Counterpart 0.00
Cofinancing 2.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 18 Jul 2024 0.00 1.99 99%
Cumulative Disbursements 18 Jul 2024 0.00 0.66 33%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory

Grant 0764-KIR

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Nov 2020 21 Dec 2020 28 Jan 2021 30 Sep 2024 30 Sep 2025 -
Financing Plan
  Total (Amount in US$ million)
Project Cost 3.70
ADB 0.00
Counterpart 0.00
Cofinancing 3.70
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 18 Jul 2024 0.00 3.58 97%
Cumulative Disbursements 18 Jul 2024 0.00 0.60 16%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory 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.


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
Social Safeguards Officer Individual - Consulting Closed
Gender Officer Individual - Consulting Closed
Environmental Safeguards Officer Individual - Consulting Closed
Financial Advisor Individual - Consulting Closed
Project Accountant Individual - Consulting Closed
KIR 0762/0763/0764: South Tawara Renewable Energy Project and KIR 0652/0653: South Tarawa Water Supply Project_CORRIGENDUM Invitation for Bids Closed
KIR 0762/0763/0764: South Tawara Renewable Energy Project (STREP-P-01) Invitation for Bids Closed
Financial Recovery Action Plan Consultant Firm - Consulting Closed
Project Accountant Individual - Consulting Closed
Gender Officer Individual - Consulting Closed
Environmental Safeguards Officer Individual - Consulting Closed
Social Safeguards Officer Individual - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
South Tarawa Renewable Energy Project: Procurement Plan Procurement Plans Nov 2020