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Solomon Islands: Tina River Hydropower Project

Sovereign (Public) Project | 50240-001 Status: Approved

The project will support the development of renewable energy to supply electricity to Honiara, the capital of Solomon Islands. The project will reduce the cost of power supply generation by replacing diesel power with hydropower, and reduce greenhouse gas emissions. It is estimated that, following the project, hydropower will generate 68% of Honiara's electricity. Transaction technical assistance was used in project preparation

Project Details

Project Officer
Woo Lee Pacific Department Request for information
Country
  • Solomon Islands
Sector
  • Energy
 
Project Name Tina River Hydropower Project
Project Number 50240-001
Country Solomon Islands
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0665-SOL: Tina River Hydropower Project
concessional ordinary capital resources lending / Asian Development Fund US$ 12.00 million
Grant: Tina River Hydropower Project
Green Climate Fund US$ 16.00 million
World Bank US$ 9.70 million
Government of Australia US$ 11.70 million
Loan 3828-SOL: Tina River Hydropower Project
concessional ordinary capital resources lending / Asian Development Fund US$ 18.00 million
Loan: Tina River Hydropower Project
Green Climate Fund US$ 35.00 million
World Bank US$ 21.50 million
Korea Exim Bank US$ 31.60 million
Green Climate Fund US$ 35.00 million
Abu Dhabi 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
Partnerships
Private sector development
Sector / Subsector

Energy / Large hydropower generation

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will support the development of renewable energy to supply electricity to Honiara, the capital of Solomon Islands. The project will reduce the cost of power supply generation by replacing diesel power with hydropower, and reduce greenhouse gas emissions. It is estimated that, following the project, hydropower will generate 68% of Honiara's electricity. Transaction technical assistance was used in project preparation
Project Rationale and Linkage to Country/Regional Strategy Solomon Islands has the fourth-largest economy among ADB's 15 Pacific developing member countries, with a gross domestic product of just over $1 billion in 2016. However, annual per capita income is less than $1,800. Having withstood the impacts of the global financial and economic crises, the economy grew by an average of 6.6% in 2008 2011, driven by expansions in logging output and mineral extraction. Growth has since dropped to an average of just 2.6%, and is expected to remain low in the near term. The country's longer term prospects depend on the development of more sustainable drivers of growth, including tourism and commercial services. This will need to be underpinned by a stable and reliable energy supply.
Impact Improved economic conditions of Honiara's population (Solomon Islands National Development Strategy, 2016 2035)
Project Outcome
Description of Outcome Generation of renewable energy on the Honiara grid increased
Progress Toward Outcome
Implementation Progress
Description of Project Outputs Tina River Hydropower Plant constructed
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project has been classified as category A for the environment following ADB's Safeguard Policy Statement (2009). An environment and social impact assessment has been prepared and disclosed on ADB's website. Aquatic and terrestrial flora and fauna and habitat surveys and impact assessments were conducted, and project-affected communities were consulted extensively. The main potential environmental impacts during construction are increased sedimentation, the inundation of 30.5 hectares (ha) of the reservoir, the removal of 115 ha of modified and natural habitat, and minor impacts on fauna. The main potential impacts during operation are induced impacts on terrestrial flora and fauna from increased human access to the upper catchment, and impacts on aquatic fauna due to reduced water flow in the bypassed river section. The SPC will prepare and implement a biodiversity management plan targeting no net loss of biodiversity for identified species, including an offset program to rehabilitate modified habitat. The project design includes an environmental flow of 1 cubic meter per second in the bypassed river section. The SPC will update the environmental and social impact assessment, environmental and social management plan, and other management plans as required in the environmental and social impact assessment. The TRHPO will monitor and supervise compliance with the approved environmental and social management plan during construction. A climate change risk evaluation was conducted and the findings considered in the project design.
Involuntary Resettlement The project is classified as category A for resettlement following ADB's Safeguard Policy Statement. The government has acquired 428.8 ha of customary land for key project infrastructure using compulsory acquisition. The project will have an economic impact on tribal landowner groups and users mainly due to a lack of access to commercial timber and non-timber resources, although there will be no physical displacement. ADB confirmed that the land acquisition processes for the core land meet the safeguard policy requirements of the government and ADB. Although the appeals period has ended, compensation has been formally agreed upon, funds have been disbursed to a trust account, and the land title has been transferred to the lands commissioner, two of the five landowner groups have not yet accepted compensation. The benefits package includes royalties and the establishment of a benefit-sharing mechanism. Approximately 32.6 ha of private land has yet to be acquired for a power transmission corridor. A land acquisition and livelihoods restoration plan will provide compensation and benefits to affected persons, and the plan has been disclosed on ADB's website. Although the Policy on Indigenous Peoples has not been triggered, all necessary measures to minimize adverse impacts on tribal communities are consistent with ADB requirements and in place. The SPC will implement a community development plan, overseen by TRHPO and supported by safeguard specialists.
Indigenous Peoples The project is classified as category C for indigenous peoples following ADB's Safeguard Policy Statement.
Stakeholder Communication, Participation, and Consultation
During Project Design The TRHPO has prepared the Stakeholder Engagement Policy (SEP) dated April 2017, which outlines the proposed communication strategy with stakeholders. A Consultation and Participation Plan (CPP) will be prepared based on the strategy and will detail consultation activities to be undertaken at different stages of the project cycle. The CPP will includes proposals to strengthen civil society participation. The CPP will include: a stakeholder analysis, a communication strategy (for disclosure, information sharing and community feedback), and an outline of resources to be allocated. Key stakeholders such as affected people, community members, women, and low-income householders, as well as provincial government officials, politicians, government staff, traditional leaders and any civil society organizations will be consulted throughout the project cycle.
During Project Implementation
Business Opportunities
Procurement Engineering, procurement, and construction and operation and maintenance contracts. The SPC will engage an EPC contractor to construct the Tina River Hydropower Plant and access road under an EPC contract. The TRHPO will engage an owners engineer to supervise the EPC contract, and the SPC will engage a contractor to operate and maintain the plant and access road. Solomon Power will be responsible for procuring contractors to construct the transmission line. Drafts of the EPC and O&M contracts have been negotiated, but have yet to be finalized.
Responsible ADB Officer Woo Lee
Responsible ADB Department Pacific Department
Responsible ADB Division PAEN
Executing Agencies
Ministry of Finance and Treasury
P.O. Box 26
Honiara, Solomon Islands
Timetable
Concept Clearance 24 Mar 2017
Fact Finding 29 May 2017 to 02 Jun 2017
MRM 07 Jul 2017
Approval 26 Sep 2019
Last Review Mission -
Last PDS Update 27 Sep 2019

Grant 0665-SOL

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2019 27 Sep 2019 - 31 Dec 2025 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 12.00 Cumulative Contract Awards
ADB 12.00 26 Sep 2019 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Sep 2019 0.00 0.00 0%

Loan 3828-SOL

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2019 27 Sep 2019 - 31 Dec 2025 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 18.00 Cumulative Contract Awards
ADB 18.00 26 Sep 2019 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Sep 2019 0.00 0.00 0%

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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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

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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.

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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.