fbpx 54011-001: Disaster Resilient Clean Energy Financing | Asian Development Bank

Palau: Disaster Resilient Clean Energy Financing

Sovereign (Public) Project | 54011-001 Status: Proposed

The Disaster Resilient Clean Energy Financing Project aims to create the access of low income households and female borrowers to affordable disaster resilient clean energy financing in Palau through three outputs: (i) disaster resilient clean energy financing facility for eligible borrowers made available, (ii) accessibility to disaster resilient clean energy loans for eligible women borrowers improved, and (iii) capacity and awareness of stakeholders increased. The project has strong pro-poor, socially inclusive and gender sensitive features. The project will directly benefit approximately 900 households in Palau, including at least 450 low-income households and 180 women headed households. The direct and indirect project beneficiaries will make about 3,000 persons with household members of the borrowers, including children, ageing population and people with disabilities that are more vulnerable to external shocks.

Project Details

Project Officer
Abbasov, Rafayil Pacific Department Request for information
Country
  • Palau
Sector
  • Energy
 
Project Name Disaster Resilient Clean Energy Financing
Project Number 54011-001
Country Palau
Project Status Proposed
Project Type / Modality of Assistance Grant
Technical Assistance
Source of Funding / Amount
TA: Disaster Resilient Clean Energy Financing
Technical Assistance Special Fund US$ 400,000.00
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 / Energy efficiency and conservation

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The Disaster Resilient Clean Energy Financing Project aims to create the access of low income households and female borrowers to affordable disaster resilient clean energy financing in Palau through three outputs: (i) disaster resilient clean energy financing facility for eligible borrowers made available, (ii) accessibility to disaster resilient clean energy loans for eligible women borrowers improved, and (iii) capacity and awareness of stakeholders increased. The project has strong pro-poor, socially inclusive and gender sensitive features. The project will directly benefit approximately 900 households in Palau, including at least 450 low-income households and 180 women headed households. The direct and indirect project beneficiaries will make about 3,000 persons with household members of the borrowers, including children, ageing population and people with disabilities that are more vulnerable to external shocks. Direct and indirect project beneficiaries will benefit from reduced households' energy expenditures and improved access to renewable energy at an affordable cost.
Project Rationale and Linkage to Country/Regional Strategy

As climate change leads to increasingly severe and frequent devastation around the world, shoring up the resilience of clean energy infrastructure in Palau has become an urgent priority. Since 2012, Palau experienced several major disasters that caused cumulative losses estimated at $51 million. Palau is exposed to an average annual loss of $2.7 million from typhoons, earthquakes, and tsunamis, with probable maximum losses of $16.8 million from a 1-in-50-year event and $46.7 million from a 1-in-100-year event. Given its centralized electricity network and concentration of power supply , Palau energy infrastructure is most vulnerable not just to hurricanes, but also to other weather events such as earthquakes, storms and rising sea levels.

Poverty and energy poverty are interlinked as poorer households spend an unreasonably high proportion of their disposable income on energy expenditures. Usually, households that spend more than 10% of their incomes on energy are considered energy poor households. The national poverty rate in Palau is 19.4% and it is estimated that 3,411 persons or about 1,003 households live below national poverty line . In addition, 1,779 households had incomes just above the poverty line and were at risk to fall into poverty due to the external shocks such as effects of the prevailing climate change disasters and COVID-19. Income distribution is highly unequal with the top 10% of wealthy households receiving 38% of the total households' income, while the poorest 10% received only 1%. Households energy poverty is high as electricity, LPG and kerosene expenditure accounts for 18% of poor and low-income households' income. Poverty is likely to increase due to COVID-19 as power bills will make even a bigger share of the dwindling disposable incomes of households. Hence, the number of energy poor households will rise, thereby heavily weighing on household financing and living standards which would likely bring more households deeper into poverty. Energy poor households limit electricity use by having lower living standards. Power outages have severe negative impact on the social and economic lives of poor and low-income households.

Impact

Access to disaster resilient energy for consumers increased

Safe, resilient and prepared communities for calamities and women livelihood recovery enhanced

Resilience of Palau communities to climate change and disasters enhanced

Outcome

Consumers' energy

expenditures reduced

Outputs

Disaster resilient clean energy financing for eligible borrowers made available

Accessibility to disaster resilient clean energy loans for eligible women borrowers improved

Capacity and awareness of stakeholders increased

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 Abbasov, Rafayil
Responsible ADB Department Pacific Department
Responsible ADB Division PAEN
Executing Agencies
Ministry of Finance
3rd Floor, Executive Bldg, ROP Capitol
Ngerulmud, Melekeok State,P.O. Box 6011
Koror, PW 96940, Republic of Palau
Timetable
Concept Clearance 27 Apr 2020
Fact Finding 22 Jun 2020 to 24 Jun 2020
MRM -
Approval -
Last Review Mission -
Last PDS Update 27 Apr 2020

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.

None currently available.

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

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.