Solomon Islands: Tina River Hydropower Project
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.
The project's impact will be improved economic conditions for Honiara in line with the Solomon Islands National Development Strategy, 2016-2035. The outcome will be the increased generation of renewable energy on the Honiara grid. The project's output will be the Tina River Hydropower Plant constructed. The special project company will develop, design, finance, construct, operate, maintain, and transfer a 15 MW hydropower plant on the Tina River.
Project Details
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Project Officer
Abbasov, Rafayil
Pacific Department
Request for information -
Country/Economy
Solomon Islands -
Sector
- Energy
Related Projects
| Project Name | Tina River Hydropower Project | ||||||||||||||||||||||||||||
| Project Number | 50240-001 | ||||||||||||||||||||||||||||
| Country / Economy | Solomon Islands |
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| Project Status | Active | ||||||||||||||||||||||||||||
| Project Type / Modality of Assistance | Grant Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector | Energy / Large hydropower generation |
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| 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. The project's impact will be improved economic conditions for Honiara in line with the Solomon Islands National Development Strategy, 2016-2035. The outcome will be the increased generation of renewable energy on the Honiara grid. The project's output will be the Tina River Hydropower Plant constructed. The special project company will develop, design, finance, construct, operate, maintain, and transfer a 15 MW hydropower plant on the Tina River. |
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| 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 |
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| Project Outcome | |
|---|---|
| Description of Outcome | Generation of renewable energy on the Honiara grid increased |
| Progress Toward Outcome | The contract for the hydropower plant (engineering, procurement and construction) was awarded in December 2019. The construction of the access roads (lot 2 and 3) and temporary facilities (magazine facility, batching plant, crushing plant) is underway and preparations to start construction of the main works are ongoing. |
| Implementation Progress | |
| Description of Project Outputs | Tina River Hydropower Plant constructed |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Activities have yet to commence. The contract for the hydropower plant (engineering, procurement and construction) was awarded in December 2019. The construction of the access roads (lot 2 and 3) and temporary facilities (magazine facility, batching plant, crushing plant) is underway and preparations to start construction of the main works are ongoing. |
| 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 special project company (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 Tina River Hydropower Project Office (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 include 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 | |
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| 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. |
| Responsible ADB Officer | Abbasov, Rafayil |
| Responsible ADB Department | Pacific Department |
| Responsible ADB Division | PAEN |
| Executing Agencies |
Ministry of Finance and Treasury |
| 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 | 28 Sep 2022 |
Grant 0665-SOL
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 26 Sep 2019 | 27 Sep 2019 | 16 Dec 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 | 24 Jan 2023 | 12.00 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 24 Jan 2023 | 0.00 | 0.00 | 0% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
Loan 3828-SOL
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 26 Sep 2019 | 27 Sep 2019 | 16 Dec 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 | 24 Jan 2023 | 17.25 | 0.00 | 96% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 24 Jan 2023 | 0.00 | 0.00 | 0% |
| 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.
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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
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.
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ADB has approved an $18 million loan and a $12 million grant to help Solomon Islands reduce the country’s reliance on imported fossil fuels for power generation through the Tina River Hydropower Project.
Tenders
No tenders for this project were found.
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| ENGINEERING PROCUREMENT AND CONSTRUCTION CONTRACT | Loan 3828 | 20 Dec 2019 | HYUNDAI ENGINEERING CO., LTD | JONGNO-GU, SEOUL KOREA, REPUBLIC OF | Ministry of Finance and Treasury | 30,000,000.00 | 18,000,000.00 |
Procurement Plan
None currently available.