Vanuatu: Energy Access Project (Additional Financing)

Sovereign Project | 49450-029

The facility will finance a grant for this additional financing for the Vanuatu Energy Access Project. The project, approved on 26 September 2017, became effective on 18 December 2017, and was the first project approved under the facility. The project will assist Vanuatu to install hydropower generation to replace diesel power generation in Malekula and extend the distribution network grid in both Espiritu Santo and Malekula, the second and third largest population centers in Vanuatu. The additional financing is needed to fund a specification upgrade to improve the resilience and durability of the project investment.

Project Name Energy Access Project (Additional Financing)
Project Number 49450-029
Country Vanuatu
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0811-VAN: Energy Access Project (additional financing)
Asian Development Fund US$ 6.00 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

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The facility will finance a grant for this additional financing for the Vanuatu Energy Access Project. The project, approved on 26 September 2017, became effective on 18 December 2017, and was the first project approved under the facility. The project will assist Vanuatu to install hydropower generation to replace diesel power generation in Malekula and extend the distribution network grid in both Espiritu Santo and Malekula, the second and third largest population centers in Vanuatu. The additional financing is needed to fund a specification upgrade to improve the resilience and durability of the project investment.
Project Rationale and Linkage to Country/Regional Strategy

Vanuatu has a population of 301,695 dispersed over more than 80 islands with more than 75% of the population lives in rural areas. Economic development is largely focused on urban areas. Nationwide access to reliable, affordable electricity is low (33%), negatively impacting livelihoods, particularly in rural households. In the provinces with access, the electricity supply relies predominantly on diesel generation. The cost and reliability of electricity is high partly because the private sector operates the electricity grids. The high cost of electricity coupled with limited access is constraining economic development, particularly in the provinces. Over reliance on imported fossil fuels (diesel) also has a negative macroeconomic impact.

The project will help reduce Vanuatu's dependence on imported fossil fuel through renewable energy generation and increase access to electricity by extending the transmission and distribution (T&D) networks. The project scope includes: (i) the construction of Brenwe Hydropower Plant (BHP) and associated infrastructure (Output 1); (ii) distribution grid extensions in Espiritu Santo and Malekula to benefit an estimated 1,050 households (Output 2); and (iii) training for newly-connected households on options for electricity-based income generation, electricity safety, and budget management (Output 3). The project is being implemented for over 6 years and will close on 29 March 2024.

Impact Livelihoods of households in Espiritu Santo and Malekula have improved
Project Outcome
Description of Outcome Supply of clean renewable electricity to households in Espiritu Santo and Malekula increased
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Brenwe Hydropower Plant put into operation by the government

Distribution grid extended and additional households connected by the government

Capacity building for project beneficiaries undertaken

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment C
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 Fay, David R.
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Liaison and Coordination Office in Sydney, Australia
Executing Agencies
Ministry of Finance & Economic Management
P.M.B. 058
Port Vila
Vanuatu
Timetable
Concept Clearance -
Fact Finding 19 Jun 2020 to 23 Jun 2020
MRM 11 Oct 2021
Approval 03 Dec 2021
Last Review Mission -
Last PDS Update 03 Dec 2021

Grant 0811-VAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Dec 2021 07 Dec 2021 20 Dec 2021 31 Mar 2024 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 7.20 Cumulative Contract Awards
ADB 6.00 24 Dec 2021 1.10 0.00 18%
Counterpart 1.20 Cumulative Disbursements
Cofinancing 0.00 24 Dec 2021 0.00 0.00 0%

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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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

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Contracts Awarded

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Procurement Plan