Micronesia, Federated States of: Renewable Energy Development Project

Sovereign Project | 49450-023

The facility will provide a grant to the Federated States of Micronesia (FSM) for the Renewable Energy Development Project. The project will finance investment in renewable energy generation facilities in the FSM states of Kosrae and Yap bolstering energy security and reducing reliance on fossil fuels for power generation in these states. Project investments will include (i) solar photovoltaic capacity and mini grid and solar home system investments for Kosrae Utilities Authority (KUA) in Kosrae and (ii) the installation and integration of photovoltaic capacity and a battery energy storage system (BESS) for Yap State Public Service Corporation (YSPSC) in Yap. The project will also support institutional strengthening and capacity building in KUA and YSPSC, as well as for Pohnpei Utilities Corporation (PUC) in the FSM state of Pohnpei.

Project Details

  • Project Officer
    George, Len V.
    Pacific Department
    Request for information
  • Country/Economy
    Micronesia, Federated States of
  • Sector
    • Energy

Related Projects

Project Name Renewable Energy Development Project
Project Number 49450-023
Country / Economy Micronesia, Federated States of
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0680-FSM: Renewable Energy Development Project
Asian Development Fund US$ 15.00 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 Some gender elements
Description

The facility will provide a grant to the Federated States of Micronesia (FSM) for the Renewable Energy Development Project. The project will finance investment in renewable energy generation facilities in the FSM states of Kosrae and Yap bolstering energy security and reducing reliance on fossil fuels for power generation in these states. Project investments will include (i) solar photovoltaic capacity and mini grid and solar home system investments for Kosrae Utilities Authority (KUA) in Kosrae and (ii) the installation and integration of photovoltaic capacity and a battery energy storage system (BESS) for Yap State Public Service Corporation (YSPSC) in Yap. The project will also support institutional strengthening and capacity building in KUA and YSPSC, as well as for Pohnpei Utilities Corporation (PUC) in the FSM state of Pohnpei.

The project is aligned with the following impact: sustainable social and economic development of the FSM promoted through the provision and utilization of cost-effective, safe, reliable, and sustainable energy services, per the FSM National Objective for Energy. The project will have the following outcome: sustainable generation and utilization of renewable energy in Yap and Kosrae, and Pohnpei increased
Project Rationale and Linkage to Country/Regional Strategy The project is included under the Pacific Renewable Energy Investment Facility, which aims to improve regional energy security in the Pacific region. The facility was approved to cover renewable energy investments and supporting infrastructure. The project qualifies to be approved under the Pacific Renewable Energy Financing Facility because (i) its scope includes renewable energy generation and supporting energy sector infrastructure, (ii) the FSM is one of the 11 eligible Pacific developing member countries, (iii) the project is identified in national energy sector planning documents as a priority investment, and (iv) the project has been classified category B for environment.
Impact Sustainable social and economic development of the FSM promoted through the provision and utilization of cost-effective, safe, reliable, and sustainable energy services
Project Outcome
Description of Outcome Sustainable generation and utilization of renewable energy in Yap, Kosrae, and Pohnpei increased
Progress Toward Outcome SMO and PIC contracts awarded in 2021. Offsite work has commenced. Solar and energy storage contract under negotiation for award.
Implementation Progress
Description of Project Outputs

Output 1 Solar PV and mini grid in Kosrae installed

Output 2 Solar PV and BESS installed with system integration upgraded in Yap

Output 3 Pohnpei Utilities Corporation Strengthened

Output 4 Efficient project management delivered and implementing agency capacity developed
Status of Implementation Progress (Outputs, Activities, and Issues)

Planned for 2022-2023.Contract negotiations with the 2nd bidder are ongoing.

Planned for 2022-2023.Contract negotiations with the 2nd bidder are ongoing.

ADB's Review of RFQ is ongoing. Expected CA is Q1 2022.

Contract awarded in Q1 2021. Consultant has commenced work.

Contract for PIC was awarded in Q1 2021.
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 George, Len V.
Responsible ADB Department Pacific Department
Responsible ADB Division PAEN
Executing Agencies
Department of Finance and Administration
PS2, Palikhir
Pohnpei State
Federated States of Micronesia
Timetable
Concept Clearance 26 Dec 2020
Fact Finding 22 May 2019 to 25 May 2019
MRM 29 Aug 2019
Approval 22 Nov 2019
Last Review Mission -
Last PDS Update 28 Nov 2021

Grant 0680-FSM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Nov 2019 03 Dec 2019 17 Mar 2020 31 Aug 2023 31 Aug 2024 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 15.51 Cumulative Contract Awards
ADB 15.00 01 Apr 2022 8.81 0.00 59%
Counterpart 0.51 Cumulative Disbursements
Cofinancing 0.00 01 Apr 2022 0.27 0.00 2%
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.

Title Document Type Document Date
Renewable Energy Development Project: Yap Initial Environmental Examination Environmental Assessment and Measures Jul 2019
Renewable Energy Development Project: Kosrae Initial Environmental Examination Environmental Assessment and Measures Jul 2019
Renewable Energy Development Project: Resettlement Plan Resettlement Plans Jul 2019

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
Grant Nos. 0680-FSM FSM Renewable Energy Development Project Invitation for Bids Closed 04 May 2020 09 Oct 2020
Project Implementation Consultant (PIC) Firm - Consulting Closed 29 Aug 2019 04 Oct 2019
Supplemental Management Operations (SMO) Firm - Consulting Closed 29 Aug 2019 04 Oct 2019

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
SUPPLEMENTAL MANAGEMENT OPERATIONS (SMO) CONSULTING SERVICES Grant 0680 03 Mar 2021 TETRA TECH ES INC | 1320 NORTH COURTHOUSE ROAD SUITE 600 ARLINGTON VA 22201 UNITED STATES Department of Finance and Administration 730,000.00 —
PROJECT IMPLEMENTATION CONSULTANT(PIC) Grant 0680 15 Feb 2021 HYDRO-ELECTRIC CORPORATION TRADING AS ENTURA | 89 CAMBRIDGE PARK DRIVE CAMBRIDGE 7170 TASMANIA AUSTRALIA Department of Finance and Administration 870,000.00 —
NATIONAL PROJECT COORDINATOR (OLIVIER WORTELL) Grant 0680 01 Dec 2020 OLIVIER WORTEL | MAIN POST BUILDING KASELEHLIE ST. PO BOX 2285 KOLONIA POHNPEI 96941 MICRONESIA Department of Finance and Administration 130,240.00 —

Procurement Plan

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