Palau : Disaster Resilient Clean Energy Financing

Energy / Energy efficiency and conservation

The Disaster Resilient Clean Energy Financing Project will facilitate 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 (or about 3,000 inhabitants), including at least 450 low-income households and 180 women-headed households. They will benefit from reduced households' energy expenditures and improved access to affordable renewable energy.

The project is ADB's first assistance to a Pacific developing member country (DMC) adopting a financial intermediation (FI) approach to target disaster resilient clean energy financing for low income and women beneficiaries. The project will have wider impacts through the demonstration of solutions to improve accessibility to disaster resilient clean energy financing, which can be replicated in other Pacific DMCs.

The project is consistent with the Palau National Disaster and Risk Management Framework (NDRMF, 2010) that sets out a vision of "safe, resilient and prepared communities in Palau" harmonizing planning for disaster resiliency, risk mitigation and recovery measures integrated into national planning. Also, it is aligned with Palau's Climate Change Policy (PCCP, 2015) that advocates a proactive approach to community-level disaster risk management and includes specific interventions for funding to expand the NDBP energy efficiency program. The project is consistent with the government's forthcoming Koror-Babeldaob Urban Development Strategy and Action Plan, which identifies resilient housing and livable settlements as one of its three strategic goals.

This project is aligned with ADB's Strategy 2030 operational priorities of strengthening governance and institutional capacity, addressing remaining poverty and reducing inequalities, accelerating progress in gender equality, making cities more livable, building climate and disaster resilience, and enhancing environmental sustainability. The project is consistent with ADB's Pacific Approach 2016-2020, emphasizing expanding ADB work in climate change and disaster risk management to mobilize more financing and to introduce innovative solutions to strengthen disaster preparedness, address vulnerability, and build resilience. The project will complement Japan's operational priorities in Palau and focused areas by the Japan's Grassroots-Human Security Program, the Japan International Cooperation Agency (JICA) and UNDP's Japan-funded project on Enhancing Disaster and Climate Resilience and Infrastructure that has similar themes to the ADB project.

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

Consumers' energy

expenditures reduced

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