Tonga : Pacific Renewable Energy Investment Facility: Nuku’alofa Network Upgrade Project

Sovereign Project | 49450-036

The project will convert the distribution network of the Nuku'alofa with climate resilient infrastructure. The project will (i) convert the open overhead network to covered area bundled conductors, (ii) replace overhead consumer connections to underground cables, (iii) convert existing old distribution poles to climate resilient high standard poles, and (iv) replace ageing distribution switchgear. The project will target the Area 5 of the Tonga Power Limited (TPL)'s overall plan of converting all 5 areas of Nuku'alofa network.

Project Details

Related Projects

Project Name Pacific Renewable Energy Investment Facility: Nuku’alofa Network Upgrade Project
Project Number 49450-036
Country / Economy Tonga
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0868-TON: Pacific Renewable Energy Investment Facility: Nukualofa Network Upgrade Project
Asian Development Fund US$ 7.20 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
OP4: Making cities more livable
OP6: Strengthening governance and institutional capacity
Sector / Subsector

Energy / Electricity transmission and distribution
Gender Effective gender mainstreaming
Description The project will convert the distribution network of the Nuku'alofa with climate resilient infrastructure. The project will (i) convert the open overhead network to covered area bundled conductors, (ii) replace overhead consumer connections to underground cables, (iii) convert existing old distribution poles to climate resilient high standard poles, and (iv) replace ageing distribution switchgear. The project will target the Area 5 of the Tonga Power Limited (TPL)'s overall plan of converting all 5 areas of Nuku'alofa network.
Project Rationale and Linkage to Country/Regional Strategy The Kingdom of Tonga is a small island developing state which is susceptible to natural disasters and climate change impacts due to its geographical location and orientation. The country is therefore exposed to social and economic vulnerability impacting community livelihoods and infrastructure. The project aims to address the vulnerability of electricity network infrastructure and to reconstruct and enhance the infrastructure standards to make them disaster resilience.
Impact

Electricity supply reliability in Nuku'alofa improved.
Project Outcome
Description of Outcome

Technical power losses and climate vulnerability of the electricity network in Nuku'alofa reduced.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Nuku'alofa electricity network system improved

Project implementation capacity and gender inclusiveness of TPL operations enhanced.
Status of Implementation Progress (Outputs, Activities, and Issues) A contract for Package 2: Supply of Power Poles was signed in June 2023 and Package 3: TPL Force Account was approved in August 2023. The procurement process for Package 3: Supply of Conductors and Hardware, Package 11: Update Survey Map; and Packages 8&9 Surveyor Contractors are ongoing.The services of TPL's project manager, project accountant and the PMU's environment specialist consultant continue. A gender specialist consultant will be recruited.
Geographical Location Nuku'alofa
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is classified as category B for environment. The due diligence confirms that risks and impacts will be site-specific, limited to the construction stage and therefore largely temporary. Risks and impacts can be readily mitigated with the application of good industry practice and the measures identified in the project's environmental management plan (EMP)included in the initial environmental examination (IEE). In addition to complying with the requirements of the Safeguard Policy Statement 2009 (SPS), the project will comply with the Tongan country safeguards system, including Environmental Impact Assessment Act 2003. The IEE will be submitted in support of the application for clearance under the country safeguards system, which includes the issue of development consent by the Department of Environment.TPL will implement the project through its current PMU and its current staff (52 local and one international staff). The project will support TPL in implementation by recruitment of a full-time environment management officer to implement and monitor safeguards and all project compliance with capacity building support. The project will also support TPL by the recruitment of a gender specialist to implement the gender action plan. TPL already has an Independent Engineer for supervision and certification, who will be supported by the environmental management officer from the PMU in monitoring compliance with the environmental safeguards requirements. Support will be provided to the PMU's environment management officer through Pacific Department's regional safeguards technical assistance, including an independent review of the construction environmental management plan (CEMP) that TPL will prepare.The IEE and development consent will help guide the implementation of the work. As TPL will undertake the upgrading work themselves, they will undertake a risk assessment of how they intend to approach and implement the works and develop a construction program linked to a CEMP specific to how they will complete the works. The CEMP will be reviewed in the first instance by the environment management officer of the PMU and then independently reviewed by an international environmental specialist recruited under PARD's regional safeguards technical assistance and ADB. When the CEMP is cleared, advice will begiven to the Independent Engineer that they may issue notice to commence works. To manage and ensure compliance with the CEMP, TPL will nominate an installation team member as responsible for monitoring and reporting compliance with the approved CEMP throughout the project construction phase. The PMU will monitor TPL's compliance with the approved CEMP through routine monitoring conducted by the environmental management officer and inspections conducted by the Independent Engineer. The PMU will prepare semiannual safeguards monitoring reports that will be cleared by ADB before being disclosed. The first semiannual safeguards monitoring report for the period 22 January - 30 June 2023 was submitted to ADB in July 2023 and has been disclosed on ADB's website. A grievance redress mechanism has been established under the PMU to record and address any complaints received relating to the project.
Involuntary Resettlement The project is classified as category C for involuntary resettlement. The project will not require land acquisition or create any involuntary resettlement impacts as the proposed physical works will be undertaken on land already owned by the government. A due diligence report has been prepared to document the ownership of the affected site.
Indigenous Peoples The project is classified as category C for indigenous peoples. The project will not adversely affect any indigenous peoples or any site of national significance.
Stakeholder Communication, Participation, and Consultation
During Project Design The PMU will prepare a detailed stakeholder communication strategy and participation plan and submit it to ADB for review by the end of month 3 after loan effectiveness. The plan will aim to strengthen the participation of key stakeholders and civil society organizations and outline details of key activities where civil society engagement will be targeted. TPL will consider the impacts of COVID-19 travel, social distancing and public gathering restrictions and explore alternative communication methods. The document will incorporate all communication activities required for safeguards implementation, particularly meaningful consultations with affected households, businesses and community groups to support women and girls to maximize the benefits of access to affordable and reliable energy, including business skills training, demand-side management training and electricity safety campaigns (to address women's concerns about electricity safety). The strategy will set out the plan to implement the stakeholder communications required for the GAP and mitigate the risks of gender-based violence. Communication activities will be in languages suitable for specific audiences and will follow the ADB Access to Information Policy (2018) and SPS (2009). The stakeholder strategy and plan will incorporate stakeholder analysis, grievance redress mechanism, the Project Steering Committee's role, broad communications strategy for the project, and specific activities to align with project stages and safeguards implementation requirements. Also, a participation plan will be included to strengthen engagement with civil society organizations.
During Project Implementation The PMU have already undertaken consultations and are having ongoing dialogue and informal meetings with communities and landowners.
Responsible ADB Officer King, Grace
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Subregional Office in Suva, Fiji (SPSO)
Executing Agencies
Ministry of Finance
Timetable
Concept Clearance -
Fact Finding 28 Mar 2022 to 13 Apr 2022
MRM 12 Oct 2022
Approval 05 Dec 2022
Last Review Mission -
Last PDS Update 27 Sep 2023

Grant 0868-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Dec 2022 08 Dec 2022 20 Jan 2023 30 Jun 2027 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 8.20 Cumulative Contract Awards
ADB 7.20 23 Oct 2023 2.80 0.00 39%
Counterpart 1.00 Cumulative Disbursements
Cofinancing 0.00 23 Oct 2023 0.35 0.00 5%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Unsatisfactory - 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
Pacific Renewable Energy Investment Facility: Nuku’alofa Network Upgrade Project: Environmental and Social Monitoring Report (January-June 2023) Environmental and Social Monitoring Reports Sep 2023
Nuku’alofa Network Upgrade under the Pacific Renewable Energy Investment Facility: Draft Initial Environmental Examination Initial Environmental Examination Sep 2022
Nuku’alofa Network Upgrade under the Pacific Renewable Energy Investment Facility: Social Safeguards Due Diligence Report Safeguards Due Diligence Reports Sep 2022

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
Gender Specialist Individual - Consulting Active
Project No. 49450-036 TON: Nuku’alofa Network Upgrade Project Invitation for Bids Closed
Project No. 49450-034 TON: Nuku’alofa Network Upgrade Project (OCB/NNUP05/21) Invitation for Bids Closed
Project No. 49450-036 TON: Nuku’alofa Network Upgrade Project Invitation for Bids Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Force Account Package (2) to carry out the network construction works under the Project Grant 0868 17 Aug 2023 Tonga Power Limited | PO Box 429, Nuku'alofa, Kingdom of Tonga Ministry of Finance 1,414,000.00 —
Package 3: Supply of Power Poles Grant 0868 28 Jun 2023 AOTEAROA TONGA FOREST PRODUCTS LIMITED | P.O. Box 164, Nuku'alofa, Tonga Ministry of Finance 1,378,338.40 —

Procurement Plan

Title Document Type Document Date
Nuku’alofa Network Upgrade Project: Procurement Plan Procurement Plans Sep 2022