The Program will provide an umbrella facility to provide financing support including loans, guarantees and letters of credit, to overcome the constraints to private sector investment in renewable power projects in Pacific island countries.
| Project Name | Pacific Renewable Energy Program | ||||||||||
| Project Number | 52329-001 | ||||||||||
| Borrower/Company | |||||||||||
| Country | Regional Cook Islands Fiji Micronesia, Federated States of Kiribati Nauru Palau Papua New Guinea Marshall Islands Samoa Solomon Islands Timor-Leste Tonga Tuvalu Vanuatu |
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| Location | Cook Islands - Nation-wide; Fiji - Nation-wide; Kiribati - Nation-wide; Marshall Islands - Nation-wide; Micronesia, Federated States of - Nation-wide; Nauru - Nation-wide; Palau - Nation-wide; Papua New Guinea - Nation-wide; Samoa - Nation-wide; Solomon Islands - Nation-wide; Timor-Leste - Nation-wide; Tonga - Nation-wide; Tuvalu - Nation-wide; Vanuatu - Nation-wide | ||||||||||
| Type or Modality of Assistance |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Private sector development |
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| Sector / Subsector | Energy / Renewable energy generation - solar |
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| Gender Equity and Mainstreaming | No gender elements | ||||||||||
| Responsible ADB Department | Private Sector Operations Department | ||||||||||
| Responsible ADB Division | Infrastructure Finance Division 2 | ||||||||||
| Responsible ADB Officer | Burrell, Alix G. | ||||||||||
| Project Sponsor(s) | |||||||||||
| Description | The Program will provide an umbrella facility to provide financing support including loans, guarantees and letters of credit, to overcome the constraints to private sector investment in renewable power projects in Pacific island countries. | ||||||||||
| Objectives and Scope | |||||||||||
| Linkage to Country/Regional Strategy | The development objective is to provide credit enhancement mechanisms to hedge against the key risks inherent in power projects in the PDMCs, which will increase private investment in the energy sector. The Program will help to (i) lower the cost of financing and encourage financing with longer tenors; (ii) attract new investors and lenders to the PDMCs, where they might not otherwise invest; (iii) generate financing opportunities for PSOD; and (iv) increase PSODs focus on frontier markets in accordance with ADBs Strategy 2030. The Program is aligned with the operational priorities of Strategy 2030 in tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability. The additionality provided by ADB is in sourcing and using available grant funds for the PDMCs from ADBs development partners as a credit enhancement tool that will mobilize private sector financing. This will spur private sector development, help to reduce continued reliance of power utilities on grants and subsidies, and increase renewable energy supply. Technical assistance for projects under the Program will assist in strengthening governance and institutional capacity through building skills in financial sustainability, service delivery, transparent tender processes and E&S standards. |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | Projects categorized as Category A for environment will not be included in the Program. Projects under the Program are anticipated to be Environment Category B. Environmental and social due diligence will be carried out in accordance with ADB's Safeguard Policy Statement (2009) and social requirements. The IPPs will engage environmental and social experts to prepare environmental and social assessment reports and management plans for their projects, such as an Initial Environmental Examination report and Resettlement Plan (if required). An Environmental and Social Audit report to be filed by an external expert will assess the environmental, social, health and safety, and gender risks and impacts associated with the project in cases where the project involves land acquisition or resettlement. Recommended mitigation measures and monitoring requirements will be implemented under an environmental and social management plan. Gender mainstreaming will be evaluated and implemented where possible for specific projects under the Program. |
| Involuntary Resettlement | Projects under the Program are anticipated to be Involuntary Resettlement Category B. |
| Indigenous Peoples | Projects under the Program are anticipated to be Indigenous Peoples Category C. |
| Stakeholder Communication, Participation, and Consultation | |
| Timetable for assistance design, processing and implementation | |
|---|---|
| Concept Clearance | 18 Mar 2019 |
| Credit Committee Meeting | 22 Mar 2019 |
| Approval | 17 Apr 2019 |
| Last PDS Update | 24 Apr 2019 |
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 Public Communications Policy (PCP) 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.
| Title | Document Type | Document Date |
|---|---|---|
| Pacific Renewable Energy Program: Report and Recommendation of the President | Reports and Recommendations of the President | Mar 2019 |
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.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Public Communications Policy (PCP) 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 Approves New Financing Support for Renewable Power Projects in the Pacific
ADB has approved an umbrella facility of up to $100 million which will provide financing support including loans, guarantees, and letters of credit to overcome constraints to private sector investment in renewable power projects...