Palau : Disaster Resilient Clean Energy Financing

Sovereign Project | 54011-001

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.

Project Details

Project Name Disaster Resilient Clean Energy Financing
Project Number 54011-001
Country / Economy Palau
Project Status Active
Project Type / Modality of Assistance Grant
Technical Assistance
Source of Funding / Amount
Grant 9212-PAL: Disaster Resilient Clean Energy Financing
Japan Fund for Prosperous and Resilient Asia and the Pacific US$ 3.00 million
TA 6580-PAL: Disaster Resilient Clean Energy Financing
Technical Assistance Special Fund US$ 400,000.00
TA 6580-PAL: Disaster Resilient Clean Energy Financing
Japan Fund for the Joint Crediting Mechanism US$ 1.50 million
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP6: Strengthening governance and institutional capacity
Sector / Subsector

Energy / Energy efficiency and conservation

Gender Effective gender mainstreaming
Description

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.

Project Rationale and Linkage to Country/Regional Strategy

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.

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

Project Outcome
Description of Outcome

Consumers' energy

expenditures reduced

Progress Toward Outcome The DRCEF Investment Facility Charter was signed by the Palau Minister of Finance on 17 February 2021. Contract for the Supply, Delivery and Installation of Grid-connected 1.7kW AC Solar Home Systems (SHSs) was made and entered into on 23 December 2021 between the National Development Bank of Palau (NDBP) and the contractor. Installations of rooftop SHSs are ongoing.
Implementation Progress
Description of Project 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

Status of Implementation Progress (Outputs, Activities, and Issues) The DRCEF Investment Facility Charter signed by Palau Minister of Finance on 17 February 2021; The cumulative advance in the amount of $2.5 million has been made and disbursed to NDBP; Installations of rooftop SHSs are ongoing; Installations of rooftop SHSs are ongoing; Not yet due; Installations of rooftop SHSs are ongoing; Public awareness campaigns and workshops on DRCEF ongoing; Development of the database ongoing as installations are being done.
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
Business Opportunities
Consulting Services Consulting services will be recruited under the attached technical assistance.
Procurement In accordance with ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time) as applicable to financial intermediation grant.
Responsible ADB Officer Abbasov, Rafayil
Responsible ADB Department Sectors Group
Responsible ADB Division Energy Sector Office (SG-ENE)
Executing Agencies
Ministry of Finance
Timetable
Concept Clearance 27 Apr 2020
Fact Finding 22 Jun 2020 to 24 Jun 2020
MRM -
Approval 27 Oct 2020
Last Review Mission -
Last PDS Update 08 Mar 2023

Grant 9212-PAL

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Oct 2020 01 Dec 2020 31 Mar 2021 30 Apr 2024 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 3.60 Cumulative Contract Awards
ADB 0.00 23 Jan 2024 0.00 0.00 0%
Counterpart 0.60 Cumulative Disbursements
Cofinancing 3.00 23 Jan 2024 0.00 2.52 84%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - Satisfactory Satisfactory - Satisfactory

TA 6580-PAL

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Oct 2020 07 Dec 2020 07 Dec 2020 30 Sep 2022 30 Sep 2024 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 1,500,000.00 0.00 0.00 0.00 0.00 1,900,000.00 23 Jan 2024 495,380.80
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.

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.

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Title Document Type Document Date
Disaster Resilient Clean Energy Financing: Updated Project Administration Manual Project/Program Administration Manual Aug 2022
Amendments to the Grant Agreement (Externally Financed) for Grant 9212-PAL: Disaster Resilient Clean Energy Financing Grant Agreement Apr 2022
Amendments to the Project Agreement (Externally Financed) for Grant 9212-PAL: Disaster Resilient Clean Energy Financing Project/Program Agreements Apr 2022
Disaster Resilient Clean Energy Financing: Updated Project Administration Manual Project/Program Administration Manual Apr 2021
Grant Agreement (Externally Financed - Japan Fund for Poverty Reduction) for Grant 9212-PAL: Disaster Resilient Clean Energy Financing Project Grant Agreement Dec 2020
Project Agreement (Externally Financed - Japan Fund for Poverty Reduction) for Grant 9212-PAL: Disaster Resilient Clean Energy Financing Project Project/Program Agreements Dec 2020
Disaster Resilient Clean Energy Financing: Project Administration Manual Project/Program Administration Manual Oct 2020
Disaster Resilient Clean Energy Financing: Technical Assistance Report Technical Assistance Reports Oct 2020
Disaster Resilient Clean Energy Financing: Gender Action Plan Gender Action Plans Oct 2020
Disaster Resilient Clean Energy Financing: Grant Assistance Report Japan Fund for Prosperous and Resilient Asia and the Pacific Oct 2020
Disaster Resilient Clean Energy Financing: Concept Paper Concept Papers Apr 2020
Disaster Resilient Clean Energy Financing: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Apr 2020

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

Tender Title Type Status Posting Date Deadline
Strategic and Operational Support to the National Development Bank of Palau Individual - Consulting Closed
Energy Expert Individual - Consulting Closed
Low Carbon Technology Expert Individual - Consulting Closed
Project Management Expert Individual - Consulting Closed
Social, Gender and Environmental Expert Individual - Consulting Closed
Project Coordination Expert Individual - Consulting Closed
Project Management Expert Individual - Consulting Closed
Project Finance Expert Individual - Consulting Closed
Economic Expert Individual - Consulting Closed
Energy (Low Carbon Technology) Expert Individual - Consulting Closed
Finance (Banking) Expert Individual - Consulting Closed
Procurement Expert Individual - Consulting Closed
Project Development Expert Individual - Consulting Closed
Joint Crediting Mechanism (JCM) Measurement, Reporting and Verification (MRV) Expert Individual - Consulting Closed
Internal Audit Expert Individual - Consulting Closed
Energy Expert Individual - Consulting Closed
Communication and Coordination Expert Individual - Consulting Closed
Banking Expert Individual - Consulting Closed
Energy Expert Individual - Consulting Closed
Social Development (Gender and Poverty) Expert Individual - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.