Pacific Energy Update 2016 - Asian Development Bank...Welcome to the 2016 edition of the Asian...

2016

PACIFICENERGYUPDATE

Welcome to the 2016 edition of the Asian Development Bank’s (ADB) Pacifi c Energy Update. Over the past year, ADB has worked with governments and communities to improve the quantity and quality of energy services across the region. By increasing access to clean and renewable power, ADB is enhancing energy security and building resilient low-carbon economies for a more prosperous Pacifi c. This update highlights some of our core activities, the impacts they produce, and what we aim to achieve in the future.

Xianbin YaoDirector GeneralPacifi c Department

ContentsADB Energy Operations in the Pacifi c 3Energy Project Portfolio 4Energy Technical Assistance Portfolio 5Overview 6Regional 7Cook Islands 9Fiji 10Marshall Islands 11Federated States of Micronesia 12Nauru 13Papua New Guinea 14Samoa 17Solomon Islands 18Timor-Leste 19Tonga 20

Pacifi c Energy Update 2016 3

REPUBLIC OF PALAU

FEDERATED STATES OF MICRONESIA

COOK ISLANDS

KIRIBATI

TUVALU

FIJI

SAMOA

TONGA

NAURU

MARSHALL ISLANDS

VANUATU

SOLOMON ISLANDS

PAPUANEWGUINEA

TIMOR-LESTE

ADB Energy Operations in the Pacifi c

Promoting Energy Effi ciency in the Pacifi c Phase 2 $8.75 M

Promoting Access to Renew-able Energy in the Pacifi c $3.75 M

Establishment of the PRIF Coordination Offi ce $15.2 M

Increasing Access to Renewable Energy $1.00 M

REGIONAL

Yap Renewable Energy Development $8.73 M

Institutional Strengthening of the Nauru Utilities Corporation $0.23 M

Electricity Supply Security and Sustainability $12.14 M

Tariff and Subsidy Policy Reform $0.80 M

Majuro Power Network Strengthening $0.69 M

Fuel Tank Farm Rehabilitation $7.00 M

Power Sector Expansion $99.10 M

Renewable Energy Development and Power Sector Rehabilitation

$33.59 M

Renewable Energy Sector $25.59 M

Renewable Energy Sector $4.26 M

Improved Energy Access for Rural Communities $5.00 M

Port Moresby Power Grid Development $65.39 M

Implementation of the Electricity Industry Policy $1.00 M

MFF: Town Electrifi cation Investment—Tranche 1 $62.07 M

MFF: Town Electrifi cation Investment—Tranche 2 $73.60 M

Provincial Renewable Energy $15.00 M

Solar Power Development $15.20 M

Cyclone Ian Recovery $4.52 M

Outer Island Renewable Energy $18.23 M

Support for Energy Sector Regulatory Capacity and Electrifi cation

$1.00 M

Electricity System Strengthening and Sustainability

$48.30 M

PlannedCapacityBuilding

Diesel Generation

EnergyEffi ciency

Hydropower Regulatory Solar Network Wind Ongoing Completed

M = million

4 Pacifi c Energy Update 2016

Energy Project Portfolio (Ongoing, and Planned)

Country ProjectImplementation

Period

ADB Funding

($ million)Cofi nancing

($ million)Total

($ million)

ONGOING 349.36Cook Islands

Renewable Energy Sector Nov 2014–Dec 2017 11.19 14.40 25.59

Subtotal 11.19 14.40 25.59

Federated States of Micronesia

Yap Renewable Energy Development Jun 2013–Dec 2017 8.73 0.00 8.73

Subtotal 8.73 0.00 8.73

Nauru Electricity Supply Security and Sustainability Nov 2014–Sep 2017 2.00 10.14 12.14

Subtotal 2.00 10.14 12.14

Papua New Guinea

Improved Energy Access for Rural Communities Apr 2012–Jul 2016 0.00 5.00 5.00

Port Moresby Power Grid Development Apr 2013–Jul 2017 51.70 13.69 65.39

Multitranche Financing Facility: Town Electrifi cation Investment Program—Tranche 1 Dec 2010–Jun 2017 57.30 4.77 62.07

Subtotal 109.00 23.46 132.46

Samoa Power Sector Expansion Nov 2007–Dec 2016 41.66 57.44 99.10

Renewable Energy Development and Power Sector Rehabilitation Nov 2013–Jun 2019 19.21 14.38 33.59

Subtotal 60.87 71.82 132.69

Solomon Islands

Provincial Renewable Energy May 2014–Mar 2022 12.00 3.00 15.00

Subtotal 12.00 3.00 15.00

Tonga Cyclone Ian Recovery May 2014–Jun 2018 4.52 0.00 4.52

Outer Island Renewable Energy Jun 2013–Jun 2020 8.44 9.79 18.23

Subtotal 12.96 9.79 22.75

PLANNED 148.36Cook Islands

Renewable Energy Sector (Additional Financing) 0.00 4.26 4.26

Subtotal 0.00 4.26 4.26

Marshall Islands

Fuel Tank Farm Rehabilitation 7.00 0.00 7.00

Subtotal 7.00 0.00 7.00

Papua New Guinea

Multitranche Financing Facility: Town Electrifi cation Investment Program—Tranche 2 57.90 15.70 73.60

Subtotal 57.90 15.70 73.60

Solomon Islands

Solar Power Development 9.20 6.00 15.20

Subtotal 9.20 6.00 15.20

Timor-Leste

Electricity System Strengthening and Sustainability Program 28.30 20.00 48.30

Subtotal 28.30 20.00 48.30


Energy Technical Assistance Portfolio (Completed, Ongoing, and Planned)

Country ProjectImplementation

Period

ADB Funding

($ million)Cofi nancing

($ million)Total

($ million)

COMPLETED 12.73Regional Promoting Energy Effi ciency in the Pacifi c Phase 2 Mar 2011–Mar 2015 2.50 6.25 8.75

Promoting Access to Renewable Energy in the Pacifi c Aug 2009–Mar 2015 3.75 0.00 3.75

Subtotal 6.25 6.25 12.5

Nauru Institutional Strengthening of the Nauru Utilities Corporation Apr 2014-Mar 2016 0.23 0.00 0.23

Subtotal 0.23 00.0 0.23

ONGOING 18.00Fiji Support for Energy Sector Regulatory Capacity and Electrifi cation Sep 2015–Sep 2017 1.00 0.00 1.00

Subtotal 1.00 0.00 1.00

Nauru Tariff and Subsidy Policy Reform Nov 2014–May 2016 0.80 0.00 0.80

Subtotal 0.80 0.00 0.80

Papua New Guinea

Implementation of the Electricity Industry Policy Dec 2012–Jun 2016 1.00 0.00 1.00

Subtotal 1.00 0.00 1.00Regional Establishment of the Pacifi c Region Infrastructure Facility

Coordination Offi ce Mar 2013–Apr 2019 2.00 13.20 15.20

Subtotal 2.00 13.20 15.20

PLANNED 1.69Marshall Islands

Majuro Power Networking Strengthening 0.00 0.69 0.69

Subtotal 0.00 0.69 0.69

Timor-Leste Electricity System Strengthening and Sustainability Program

(Project Preparatory Technical Assistance) 1.00 0.00 1.00

Subtotal 1.00 0.00 1.00

Total completed loans, grants and technical assistance 12.73Total ongoing loans, grants and technical assistance 367.36

Total proposed loans, grants and technical assistance 150.05TOTAL INVESTMENT 530.14


Overview

Achieving reliable access to clean energy is essential to human development and low-carbon economic growth. As energy demand in the Asia and Pacifi c region grows rapidly, the Asian Development Bank (ADB) is helping to improve regional energy systems with a three-tiered energy approach. ADB seeks to (i) promote energy effi ciency and renewable energy; (ii) maximize access to energy for all; and (iii) promote energy sector reform, capacity building, and eff ective governance. This approach leverages national and regional partnerships to strengthen energy systems, support low-carbon economic growth, and improve living conditions across ADB’s developing member countries (DMCs).1

The Pacifi c region faces a unique set of energy challenges. Its limited supply of domestic fossil fuel resources has led to a historical dependence on imported fuels and a corresponding vulnerability to fl uctuating energy prices. At the same time, outdated power infrastructures, geographical constraints, small populations, and limited generation capacity lead to high electricity tariff s (or costly subsidies), transmission and distribution losses, and low electrifi cation rates in a number of Pacifi c DMCs.

In spite of existing challenges, Pacifi c island nations possess a large potential for scaling up the use of renewable energy and strengthening local economies through improvements in energy effi ciency. Addressing current challenges presents opportunities to enhance energy security, improve living standards, and build a more prosperous economy. ADB’s work in the Pacifi c energy sector helps strengthen institutional capacity, introduce and deploy advanced technologies, and improve energy management across sectors.

ADB’s technical assistance (TA) and lending projects in its Pacifi c DMCs are helping to increase access to modern energy services, increase renewable generation capacity, and strengthen public and private sector institutions.

1 ADB’s 14 Pacifi c DMCs comprise: Cook Islands, Fiji, Kiribati, Marshall Islands, Federated States of Micronesia, Nauru, Palau, Papua New Guinea, Samoa, Solomon Islands, Timor-Leste, Tonga, Tuvalu, and Vanuatu.


Regional

Promoting Access to Renewable Energy in the Pacifi c

Promoting Access to Renewable Energy in the Pacifi cThe design and implementation of renewable energy projects will increase the use of clean and renewable energy for power generation.

Executing Agency Asian Development Bank

Project Offi cer Anthony Maxwell

Status Completed: June 2016

Funding by Source

Clean Energy Fund $3.00 million

Strategic Climate Fund $0.75 million

Total Amount $3.75 million

Electrifi cation rates in a number of Pacifi c DMCs are very low, and lack of access to reliable, aff ordable power is a key constraint to economic growth in the region. In 2008, Papua New Guinea (PNG), Solomon Islands, and Vanuatu requested assistance from ADB to promote access to renewable energy; the corresponding TA for Promoting Access to Renewable Energy in the Pacifi c was approved in 2009.

The regional TA was implemented to increase the use of sustainable, safe, reliable, aff ordable, and versatile renewable energy products in the three Pacifi c DMCs. It comprised three outputs: (i) design of a renewable energy pilot project for each participating Pacifi c DMC, (ii) implementation of three pilot projects, and (iii) provisions to support their replication and scale.

The pilot projects demonstrate diverse renewable energy models, adding new capacity to existing grids and replacing outdated systems with cleaner, lower cost alternatives. Overall project replication and scale were supported by micro hydropower prefeasibility studies and assessments in the three benefi ciary countries.

(i) In PNG, the regional TA supported the development of the Rouna Hydropower Cascade Management Plan.

(ii) In Solomon Islands, a biofuel generator was installed in Auki, Malaita Province and trials run using coconut oil as a diesel replacement. Project sustainability was addressed through the introduction of milling equipment and a corresponding business model.

(iii) In Vanuatu, solar rooftop panels were installed on government buildings, which added 40 kilowatts (kW) of generation capacity to the Luganville electricity grid.

The outcome of the regional TA is the demonstration of pilot projects that showcase sustainable, safe, reliable, aff ordable, and versatile renewable energy products. Its impact is increased use of safe and reliable forms of energy in Pacifi c DMCs.

Promoting Energy Effi ciency in the Pacifi c, Phase 2

Promoting Energy Effi ciency in the Pacifi c, Phase 2The design and implementation of energy effi ciency projects and capacity building reduced energy consumption across the residential, commercial, and public sectors.


Project Offi cer Michael Trainor

Status Completed: March 2015

Funding by Source

Asia Clean Energy Fund $1.50 million

Australia (technical assistance grant) $1.00 million

Global Environmental Facility $5.25 million

Technical Assistance Special Fund $1.00 million


ADB initiated a consultation process in 2007 with the Cook Islands, PNG, Samoa, Tonga, and Vanuatu, during which these countries confi rmed their keen interest in reducing their dependence on imported fossil fuels. Promoting Energy Effi ciency in the Pacifi c was implemented in two phases to reduce energy consumption across the residential, commercial, and public sectors. The impact of this regional TA is reduced fossil fuel use in the power sector, without a corresponding reduction in energy services in the participating countries. Its outcome is more effi cient power use among end consumers in the fi ve Pacifi c DMCs.

Phase 1 was approved in September 2008 and identifi ed measures for improving energy effi ciency in each of the fi ve Pacifi c DMCs. Key activities included (i) the establishment of baseline energy use data, (ii) the development of policy recommendations, (iii) the implementation of pilot programs, and (iv) the identifi cation of a pipeline of subprojects for implementation during Phase 2.

Promoting Energy Effi ciency in the Pacifi c, Phase 2 built on these activities, and was structured around four outputs: (i) establishment of an energy use database, (ii) development of energy effi ciency policies and targets, (iii) implementation of 34 subprojects, and (iv) information dissemination and public-awareness activities.


The regional TA raised awareness concerning the value of energy effi ciency and built capacity in the public and private sectors for the ongoing implementation of effi ciency measures. Demand side management practices were introduced and will continue to support increased energy productivity. Phase 2 resulted in concrete energy savings, as well as in reduced costs and carbon emissions across the fi ve Pacifi c DMCs.

Promoting Energy Effi ciency in the Pacifi c, Phase 2 Subprojects Deliver Ongoing Savings

As a component of the Promoting Energy Effi ciency in the Pacifi c, Phase 2, a total of 34 subprojects were tailored to the unique circumstances of each Pacifi c DMC and were implemented across sectors. Effi cient lighting was provided for consumers in the residential, commercial, and public sectors, and energy effi ciency measures were implemented to enhance performance in hotels, commercial, and government buildings.

These projects are generating ongoing reductions in energy consumption, without a corresponding decrease in the quantity or quality of energy services. The ongoing results include:

• 3,411 megawatt-hours avoided annually;• $1,458,922 saved each year;• 3,204 tCO2e emissions reduced annually; and• 871,463 liters of diesel-use avoided every year.

The Pacifi c Regional Infrastructure Facility and Coordination Offi ce:

Pacifi c Regional Infrastructure Facility and Coordination Offi ceCoordination among development partners in the Pacifi c region will be improved through the establishment of the Pacifi c Regional Infrastructure Facility.


Project Offi cer Roland Rajah

Status Ongoing

Funding by Source

Australia (technical assistance grant) $8.90 million

New Zealand Grant $4.30 million

Technical Assistance Special Fund $2.00 million


Regional approaches help deliver regional solutions. The Pacifi c Regional Infrastructure Facility was offi cially launched in August 2008 at the Pacifi c Islands Forum, and the corresponding Coordination Offi ce was established in 2013.2 The purpose of the Coordination Offi ce is to improve development eff ectiveness and the sustainability of infrastructure investments by (i) strengthening coordination

2 The PRIF partners comprise (i) ADB; (ii) Government of Australia; (iii) the European Union; (iv) the European Investment Bank; (v) Government of Japan; (vi) Government of New Zealand; and (vii) the World Bank Group (including the International Finance Corporation).


among development partners; (ii) improving policies and regulations; (iii) improving infrastructure cofi nancing; and (iv) improving the capacity of Pacifi c island countries to prioritize, plan, develop, and maintain infrastructure investments. The facility covers 13 Pacifi c island countries and supports fi ve economic infrastructure subsectors (energy; information communication and technology; road, aviation, and maritime transport; urban development; and water and sanitation).3

The Pacifi c Regional Infrastructure Facility Coordination Offi ce TA is designed to improve coordination of investments in the Pacifi c. Its outcome will be comprehensive, well-coordinated support and TA on infrastructure investments for 13 Pacifi c countries. The impact of this TA will be improvements to the quality of infrastructure investments in the Pacifi c islands.

Outputs of the TA include (i) technical advice for Pacifi c DMC governments concerning infrastructure development and; (ii) improved coordination among the PRIF partners. These are being achieved through research and analysis of infrastructure issues facing the Pacifi c, dissemination of knowledge and fi ndings, coordination of meetings, and implementation of a website and communications strategy to raise awareness of core issues. An Energy Sector Working Group—comprising sector experts and the PRIF Partners—meets up to four times a year to review the TA and Knowledge Product activities of the PRIF Coordination Offi ce and serves as a community of practice for the PRIF Partners.

The PRIF Helps Utilities Share Best Practices

As part of its mandate to strengthen regional communication and disseminate best practices, the PRIF, in partnership with the Pacifi c Power Association and the Secretariat of the Pacifi c Community worked with power utilities to benchmark performance, share results, and build capacity. Doing so helped 25 utilities compare performance, identify trends, assess current practices, and improve service and effi ciency. Benchmarking performance and comparing results is helping utilities across the Pacifi c region improve service and operational effi ciency. This eff ort has resulted in improved utility performance, and is documented in a series of case stories that refl ect outcomes of the benchmarking initiative.

Cook Islands

Electricity costs in the Cook Islands are among the highest in the Pacifi c. Dependence on imported fuels for power generation lead to high tariff s, which can amount to 4% of annual household expenditures and 15% of business entity expenditures. In the Cook Islands, it is estimated that supplanting diesel power with renewables can reduce the cost of generation by up to 40%. In 2011, the government issued the Cook Islands Renewable Energy Chart, which sets a target of supplying 100% of inhabited islands with renewable energy by 2020.

Renewable Energy Sector ProjectThe installation of solar power systems will increase the penetration of renewable energy in the Cook Islands.

Executing Agency Cook Islands, Ministry of Finance and Economic Management

Project Offi cer Woo Yul Lee

Status Ongoing

Funding by Source

Asian Development BankOrdinary capital resources (loan)

$11.19 million

European Union (grant) $7.26 million

Government of the Cook Islands $7.14 million

Global Environment Facility (grant to be processed as additional fi nancing in 2016)

$4.26 million


3 The 13 countries addressed by the PRIF are: Cook Islands, Fiji, Federates States of Micronesia, Kiribati, Marshall Islands, Nauru, Niue, Palau, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu. Niue is part of the PRIF, but is not one of ADB’s developing member countries.


The Renewable Energy Sector Project is supporting the Cook Islands in achieving this goal by installing solar generating systems on six islands. Solar photovoltaic systems will provide a combined installed capacity of about 3 megawatts (MW) peak coupled with batteries to store electricity from solar energy. Additional fi nancing was approved in 2014 to expand the scope of the project, through the installation of an additional battery energy storage system with a preliminary capacity of 1.0 MW and 4.0 MW per hour; this will provide load shifting to off set renewable generation at the existing 1.0 MW solar photovoltaic facility at the Rarotonga Airport. The proposed battery energy storage system will allow 2.0 MW of additional solar photovoltaic generation, which is about 8% progress toward the total estimated renewable generation.

The project’s impact will be increased energy security in an environmentally sustainable manner; its outcome will be a higher share of electricity generated by renewable energy resources. The project has two corresponding outputs. It is (i) developing six photovoltaic systems, coupled with lithium battery storage systems; and (ii) rehabilitating existing distribution networks. The project is also developing institutional capacity through a series of training programs to support further renewable energy policy implementation and complementary energy effi ciency programs.

Fiji

Fiji’s newly revised sector policy sets the target of 99% renewable generation by 2030 and a 100% electrifi cation rate by 2020. Achieving these goals will require signifi cant investment—approximately $760 million over the coming decade—as well as increased regulation in Fiji’s electricity sector.

Currently, the Fiji Electricity Authority (FEA) is the sole entity authorized to generate, transmit, distribute, and sell electricity in the power sector. Although the Fiji Commerce Commission approves tariff s, the manner in which tariff s have been established has not off ered the long-term certainty and predictability that private investors would prefer.

Government priority actions in the energy sector include (i) expanding the role of the private sector in power generation, including the partial privatization of FEA; (ii) increasing the role of non-FEA renewable energy via small-scale systems; and (iii) restructuring regulatory arrangements to improve transparency and accountability and to remove possible confl icts of interest.

Support for Energy Sector Regulatory Capacity and Electrifi cation Investment Planning

Support for Energy Sector Regulatory Capacity and Electrifi cation Investment PlanningThe technical assistance will help the Government of Fiji to enhance energy sector regulation and management.



Status Ongoing

Funding by Source

Asian Development BankTechnical Assistance Special Fund (TASF-Other Sources)

$1.00 million


In 2015, the Government of Fiji requested assistance from ADB to develop the institutional capacity for regulation of Fiji’s electricity sector, and to develop a sector investment planning framework. The corresponding TA—Support for Energy Sector Regulatory Capacity and Electrifi cation Investment Planning—refl ects the government’s intentions for sector regulation, and will improve the environment for investment in Fiji’s renewable energy sector.

The impact of the TA will be a resource effi cient, cost-eff ective, and environmentally sustainable energy sector. Its outcome will be an improved framework for the development of Fiji’s energy sector. The TA comprises two outputs: (i) capacity development at selected regulatory agencies, and (ii) enhanced sector planning capacity at the relevant government department.

The TA will review the existing legal and institutional frameworks and identify a government agency to serve as a multisector regulatory body. It will also defi ne the selected agency’s capacity development requirements, provide training, and provide recommendations on legislation to enable the agency to discharge its functions.

The second output will consist of detailed recommendations for establishing the policy framework for the identifi cation, selection, and implementation of energy investment options. The TA will develop the sector planning capacity within a selected government agency, and support it in assessing existing resources and investment needs.


Marshall Islands

In spite of its considerable renewable energy potential, the Marshall Islands is heavily reliant on diesel for power generation. In 2009, the Marshall Islands adopted its National Energy Policy and Energy Action Plan, setting a 20% renewable energy goal for total generation mix by 2020. Achieving this will require considerable investment in the power system on the Nation’s capital, Majuro, which is serviced by the Marshalls Energy Company (MEC).

Majuro Power Network Strengthening

Majuro Power Network StrengtheningThe technical assistance will identify viable options for scaling-up renewable energy penetration in Majuro’s electricity system.



Status Planned

Funding by Source

Clean Energy Financing Partnership Facility

$0.69 million


MEC’s distribution system is over 30 years old, and was not designed to accommodate renewable resources. In January 2015, the Japan International Cooperation Agency-sponsored analysis found that Majuro’s power infrastructure is currently incapable of accommodating more than an 11% renewable energy penetration rate, well below the national energy policy’s 20% target.

The TA for Majuro Power Network Strengthening will identify investment needs in Majuro’s electricity system to increase the absorption capacity for renewables.

The TA will deliver fi ve corresponding outputs:(i) a comprehensive inventory of existing assets and

documentation of their condition and performance characteristics,

(ii) a model to assess the ability of existing infrastructure to accommodate renewable energy generation,

(iii) identifi cation of a pipeline of appropriate investments to increase renewable energy generation,

(iv) a comprehensive feasibility study to assess investments proposed for immediate implementation, and

(v) capacity building and training of the staff of MEC and the Ministry of Resources and Development.

The impact of the TA will be an increased share of renewable power generation, improved service reliability, reduced

reliance on imported fossil fuels, and a reduction in costs of electricity generation. The outcome will be capital investments that support the renewable energy and energy security objectives of the Marshall Islands.

Fuel Tank Farm Rehabilitation Project

Fuel Tank Farm Rehabilitation ProjectIdentifying solutions will improve infrastructure and address environmental and safety risks.

Executing Agency Marshalls Energy Company


Status Planned

Funding by Source

Asian Development Fund (grant) $7.00 million


The main fuel storage facility of the Marshall Islands is situated at Majuro Atoll, on the ocean side of the southern part of the island. Diesel fuel is supplied from tankers that


3 An integration and control system has been included in the project to optimize system effi ciency and resource use, maximizing output from the renewable resources and reducing diesel consumption.

berth in the lagoon. Diesel is supplied to MEC’s power generation facility, which is situated on the northern side of the main road between dock and the fuel storage facility. In addition to storing fuel for power generation, MEC also delivers fuel to the Kwajalein Atoll Joint Utilities Resources (KAJUR) and sells fuel to commercial marine fl eets (primarily licensed fi shing vessels).

An assessment funded by the World Bank in 2011 found that the facilities have signifi cant uncontrolled risks associated with the operation. Its location makes it extremely vulnerable to atmospheric corrosion, and maintenance of such a tank farm will always require signifi cant expenditure. Catastrophic tank failure, tank fl oor leaks, and pipeline leaks are signifi cant risks with no current plan or methods of control in place. This has been identifi ed by MEC and the Ministry of Resources and Development of the Marshall Islands as an urgent investment need. Rehabilitation is estimated to cost $7 million; replacement of this oversized facility may be more cost-eff ective.

A project preparatory TA has been scheduled for 2017, and will assess the best method of addressing current risk through a corresponding project (slated for approval in 2018). The anticipated outcome of this project is controlled risk through improvements to, or replacement of, the existing fuel storage infrastructure. The intended impact is increased public and environmental safety, and enhanced fuel security.

Improving Electricity Systems to Deliver Clean Water and Sanitation

The Asian Development Bank (ADB) is helping reduce the incidence of waterborne disease on Ebeye—an island on the Kwajalein atoll, which houses the second largest population of the Marshall Islands. High rates of waterborne disease on Ebeye are due to limited access to safe water, ineff ective hygiene, and a dilapidated sanitation system.

As a part of ADB’s Ebeye Water Supply and Sanitation Project, ADB will support the Kwajalein Atoll Joint Utilities Resources (KAJUR) in providing greater access to clean water. In part, this will be achieved by building the KAJUR’s capacity to ensure fi nancial sustainability, and by improving electricity supply for water and sewage operations. Capacity-building activities for KAJUR will focus on improving institutional operations; refurbishing physical assets will improve system effi ciency and distribution infrastructure.

Federated States of Micronesia

In its National Energy Policy, the Federated States of Micronesia (FSM) established the priority to “improve the life and livelihoods of all FSM citizens with aff ordable, reliable, and environmentally sound energy”. At present, the FSM is heavily dependent on imported fossil fuels; however, it has set the goal of meeting 30% of its generation needs with renewables by 2020.

Yap is one of the four states within the FSM, and is currently 100% dependent on imported diesel for generation. Although the main island enjoys a 97% electrifi cation rate and stable power supply, oversized diesel generators result in low generation effi ciency, and import dependence exposes Yap’s economy to fl uctuating fuel prices.

Yap Renewable Energy Development ProjectThe installation of renewable energy systems will diversify Yap state’s fuel mix and improve energy security.

Executing Agency Yap State Public Service Corporation


Status Ongoing

Funding by Source


$4.68 million

Asian Development Fund (loan) $4.05 million


The Yap Renewable Energy Development Project aims to install an integrated solar, wind, and high-effi ciency diesel power system for the state-owned utility—the Yap State Public Service Corporation. Rooftop-mounted solar photovoltaic systems will generate an estimated 498 MW per hour per year, and account for about 3.83% of Yap’s current energy mix. A three-turbine wind farm will provide combined capacity of 0.75 MW–1 MW, and two high-speed diesel generators (1.65 MW and 0.83 MW, respectively) will be installed to allow for greater penetration of renewable energy, and increase overall system effi ciency.3


The project’s impact will be an improvement to Yap’s energy security, with the outcome being increased generation of renewable energy and a corresponding reduction in diesel consumption for generation. Upon successful completion, the project will contribute to a 17% share of renewable energy-generation capacity in Yap’s total energy mix.4

Addressing Urgent Infrastructure Needs in the Federated States of Micronesia

Estimated investments exceeding $1.4 billion will be needed to address infrastructure development needs in the FSM over the next 20 years. The Omnibus Infrastructure Development Project is delivering solutions to the FSM’s most pressing infrastructural demands on each of its four states.

The power generation system on Weno Island—the state capital of Chuuk, and the second most populated island in the FSM—is on the verge of collapse. Outdated generation and distribution systems compromise essential government services, impede economic growth, and aff ect the lives of most of the island’s inhabitants.

The two existing generators malfunction regularly, damaging the surrounding environment and posing risks to public health and safety. The project is supporting the Chuuk Public Utilities Corporation in upgrading Weno’s electricity system. Outputs will help the utility (i) design, construct, and operate a 7 MW replacement system; (ii) upgrade distribution systems; (iii) safely decommission the existing system; and (iv) strengthen capacity for operation, maintenance, and management of the new system.

The rehabilitation of the power system will facilitate improvements to water, wastewater, health, and other social services. The project is nearing completion, and will benefi t about 2,290 consumers across sectors, improving the lives of, and reducing electricity costs for 15,000 people.

Nauru

Access to grid electricity across Nauru’s population is universal. However, the supply is unreliable because of underinvestment in, and poor maintenance of, generation and distribution assets. In 2014, Nauru’s total nominal capacity was 12.9 MW. However, available capacity in the same year was only 3.70 MW against Nauru’s total power demand of about 10.75 MW. This discrepancy was due to two inoperable generators and reduced capacity resulting from poor system maintenance.

Addressing reliability and effi ciency shortcomings in Nauru’s current diesel generation equipment is necessary to improve service reliability and mitigate the risk of catastrophic failure of the nation’s generation system. National development goals also prioritize restructuring Nauru’s utility sector, amending tariff structures, and strengthening the Nauru Utilities Corporation (NUC).

The Electricity Supply Security and Sustainability Project is improving the quality and reliability of electricity services in Nauru by increasing generation capacity to supply base-load, refurbishing facilities, and helping to reform tariff and subsidy policy.

Electricity Supply Security and Sustainability Project, and Technical Assistance for Tariff and Subsidy ReformThe project will improve power generation, transmission, and distribution services across Nauru; and the technical assistance will help the government to improve tariff structures.

Executing Agency Ministry of Finance

Project Offi cer Pivithuru Indrawansa

Status Ongoing

Funding by Source

Asian Development BankTechnical Assistance Special Fund (TASF-V) for preparing the project

$0.50 million

Asian Development BankTechnical Assistance Special Fund (TASF-V) for Tariff and Subsidy Reform)

$0.30 million



Government of Australia (grant) $4.74 million

Government of Nauru $2.70 million


4 This 17% renewable share includes 200 kilowatt peak (kWp) of solar capacity installed during a Japan International Cooperation Agency-funded grant titled Pacifi c Environment Conservation.


The project will support NUC with the installation of 6 MW of diesel-fi red generation and replacement of 11 kilovolt (kV) switchgear, allowing the utility to retire older generation assets and perform scheduled refurbishments of existing units. This process is expected to increase generation effi ciency by 20%. The project will also repair the roof of the structure currently housing the NUC’s generators to shield them from the elements and provide a safer working environment for NUC employees.

The project’s impact will be increased economic activity; NUC customers will enjoy more dependable supply with fewer outages. The project’s outcome will be increased reliability, lower cost, and greater sustainability of power generation in Nauru. The incidence of power outages is expected to decrease by more than 50% by June 2017, and generation effi ciency is expected to increase from 3.4 kWh per liter of fuel consumed to 4.1 kWh.

Supporting Better Infrastructure through Policy Reform

To complement the Electricity Supply Security and Sustainability Project’s investments in the generation facilities of the Nauru Utilities Corporation (NUC), and to enhance the long-term fi nancial sustainability of NUC, ADB is providing technical assistance (TA) to develop recommendations for a revision to existing tariff and subsidy policy. Tariff s are currently well below cost-recovery levels and require ongoing subsidies to NUC’s operations.

The corresponding TA for Tariff and Subsidy Policy is designed to complement the project and assist Nauru in gradually adjusting tariff s to support cost recovery and decrease subsidies. The TA is helping to (i) analyze NUC’s long-run marginal costs, (ii) identify the value of all existing subsidies provided to the NUC by the Government of Nauru, (iii) propose options for restructuring tariff s to cover generation costs, and (iv) propose subsidy approaches for reducing fi nancial burdens on the residential sector. The TA will support the government’s eff orts to render NUC fi nancially viable and sustainable in the long run.

The TA for Institutional Strengthening of the Nauru Utilities is helping to improve NUC’s fi nancial and operational performance. Its impact will be a reduction in NUC’s fi nancial dependence on the Government of Nauru. The TA is supporting the utility by strengthening accounting practices, corporate governance structure, and by helping it roll out a management and maintenance plan.

Institutional Strengthening of the Nauru Utilities CorporationThe technical assistance helped the Nauru Utilities Corporation to strengthen institutional practices and become fi nancially sustainable.


Project Offi cer Pivithuru Indrawansa

Status Completed: March 2016

Funding by Source

Asian Development BankTechnical Assistance Special Fund (TASF-V)

$0.23 million


Key project outputs include (i) the implementation of NUC’s asset management and maintenance plan, (ii) the implementation of improved accounting systems through integration of an asset registry and fi nancial management information system, (iii) the implementation of a performance management system, and (iv) the design and implementation of a revised corporate governance structure. The TA will help strengthen NUC’s fi nancial performance through built capacity and improved corporate governance.

Papua New Guinea

Currently, only about 12% of the population of Papua New Guinea (PNG) is connected to the power grid, and outdated transmission and distribution infrastructures lead to frequent outages in urban centers. Lack of reliable, aff ordable access to electricity is cited as a key barrier to economic growth in both urban centers and rural communities.

As PNG’s economy and population continue to grow, electrifi cation rates will need to increase and electricity services need to improve. To achieve this, the Government of PNG, through its Department of Petroleum and Energy, has laid out three primary goals in its Electricity Industry Policy. The policy seeks to (i) improve access to electricity, (ii) improve the reliability of electricity, and (iii) ensure that power is aff ordable for consumers.

ADB is supporting these eff orts with a number of TA projects and lending projects aimed at improving electricity services in urban centers and increasing electricity access in rural areas. These projects are improving living conditions and scaling up economic activity.


Implementation of the Electricity Industry PolicyThe technical assistance will build the Department of Petroleum and Energy’s institutional capacity, and support the implementation of its National Electrifi cation Rollout Plan.

Executing Agency Energy Division of the Department of Petroleum and Energy


Status Ongoing

Funding by Source

Asian Development BankTechnical Assistance Special Fund (TASF-IV)

$1.00 million


The TA for Implementation of the Electricity Industry Policy commenced in 2012; it is supporting the Department of Petroleum and Energy with capacity building, and in the design and implementation of a National Electrifi cation Rollout Plan to advance PNG’s energy policy.

The TA included support to the Department of Petroleum and Energy and PNG Power Ltd to prepare the national Distribution Grid Expansion Plan. The plan was launched on 30 April 2016.

The plan forms part of the broader National Electrifi cation Rollout Plan, and details how the government will expand electricity grids to rural communities as it pushes to achieve 70% electrifi cation by 2030.

Multitranche Financing Facility for the Town Electrifi cation Investment Program

Multitranche Financing Facility for the Town Electrifi cation Investment Program, Tranche 1The construction and the refurbishment of hydropower plants and distribution lines will increase access to clean and reliable power.


Project Offi cer Hussain Haider

Status Ongoing

Funding by Source


$40.90 million

Asian Development Fund $16.40 million

Government of New Zealand (additional fi nancing grant)

$4.77 million


A multitranche fi nancing facility (MFF) program has been approved to support provincial grid connectivity and electrifi cation rates. Tranche 1 of the program is being implemented to replace high-cost diesel generators with hydropower plants and to construct transmission lines to connect provincial centers.

Currently, three subprojects are being implemented. A transmission line is being constructed to connect the Kimbe and Bialla provincial centers, and two hydropower plants are being developed. The sites (Divune and Ramazon) have been


selected, and land acquisition and implementation design are in progress. Each hydropower plant will provide 3 MW of generation capacity, signifi cantly increasing electrifi cation rates and introducing clean and reliable access to energy.

Multitranche Financing Facility for the Town Electrifi cation Investment Program, Tranche 2The construction and the refurbishment of hydropower plants will increase access to clean and reliable power.



Status Planned

Funding by Source


52.90 million

Asian Development Fund 5.00 million

Government of Papua New Guinea 15.70 million

Total Amount 73.60 million

Tranche 2 is slated for implementation in 2017, and will oversee refurbishments to the Warangoi and Lake Hargy power plants, completion of the Divune plant, and installation of a surge chamber at the Yonki of Dam site.

Corresponding improvements to grid connectivity and rural electrifi cation rates will contribute to an impact of better economic conditions in provincial centers. The MFF’s outcome will be improved utilization of clean and reliable power.

Improved Energy Access for Rural CommunitiesAdditional households, schools, and medical centers will be connected to power generated by subprojects of the Town Electrifi cation Investment Program.



Status Ongoing

Funding by Source

Government of New Zealand (grant) $2.50 million

Japan Fund for Poverty Reduction (grant)

$2.50 million


Increased Access to Clean Power is Helping Alleviate Poverty

The Government of New Zealand and the Japan Fund for Poverty Reduction are helping to extend the outcome of the Town Electrifi cation Investment Program by increasing the volume of consumers who will receive electricity services.

The grant for Improved Energy Access for Rural Communities will extend power distribution to an additional 2,500 households—connecting at least 20 schools and 20 medical facilities in rural communities near the subproject sites of the program. This $5 million grant will increase electricity access to about 15,000 people, stimulating economic growth in rural communities and promoting better livelihoods through access to electricity. An additional cofi nancing agreement between ADB and the Government of New Zealand was signed in 2015, and will support increased electrifi cation rates, as well as rehabilitation of the Lake Hargy Hydropower Plant in West New Britain.

The grant will also support community-training initiatives for all newly connected stakeholders. Training will cover electricity safety, energy effi ciency, household utility budgeting, and increased opportunities for income generation.

Port Moresby Power Grid Development Project

Port Moresby Power Grid Development ProjectImproving key power infrastructure assets will enhance energy effi ciency and provide access to renewable power.

Executing Agency Kumul Consolidated Holdings


Status Ongoing

Funding by Source


$51.70 million

Japan Fund for Poverty Reduction $13.69 million


PNG’s capital, Port Moresby, has experienced a steady increase in electricity demand over the past decade. This growth, paired with poorly maintained transmission and distribution infrastructure, has led to increased power outages


in the nation’s capital. The Port Moresby grid has historically been supplied by renewable energy from the Rouna 58.75 MW hydropower plant; however, degradation of this system, due to heavy demand and inadequate maintenance, has led to unreliable power supply and increased dependence on diesel fuel for generation.

In order to increase electrifi cation rates and support the capital’s growing economy, considerable investment is required to improve transmission and distribution effi ciency, and renovate existing renewable energy power plants. The Port Moresby Power Grid Development Project is addressing these needs by fi nancing the rehabilitation of two existing hydroelectric plants (Rouna and Sirinumu), upgrading substation capacity at the Kila Kila substation, and improving the transmission and distribution infrastructure.

The project will produce an outcome of better power supply for Port Moresby, and deliver the impact of increased economic activity among grid connected residential and commercial consumers.

Samoa

Samoa’s power grid serves 95% of the total population, with the remainder generating electricity from small diesel or solar systems. However, high system losses and voltage drops have resulted in poor reliability and quality of electricity supply. Reliable electricity services are vital for promoting private sector investments to diversify the economy and achieve sustainable economic growth.

As peak demand grows at about 3% annually, the central challenge for Samoa’s lone utility—the Electric Power Corporation (EPC)—is to ensure suffi cient generation and transmission capacity while improving the quality and reliability of electricity supply. Diversifying the Samoa’s energy mix and supplanting diesel generation with clean, indigenous renewable energy also form part of EPC’s investment goals.

Renewable Energy Development and Power Sector Rehabilitation ProjectThe project will increase access to renewable energy generation, and rehabilitate the power infrastructure.

Executing Agency Ministry of Finance


Status Ongoing

Funding by Source


Multi-Donor Clean Energy Fund (grant)

$1.00 million


Government of New Zealand (grant) $2.49 million

Government of Samoa $5.83 million


The Renewable Energy Development and Power Sector Rehabilitation Project will support Samoa’s energy sector by increasing power generation from renewable sources, rehabilitating damage to the power sector caused by Cyclone Evan, and increasing the power sector’s resilience to future natural disasters. The project’s outcome will be a higher share of electricity generated by hydropower; its impact will be greater energy security.

The project will achieve these results by assisting EPC to rehabilitate and reconnect 4.96 MW of hydropower capacity to the existing grid, and by building and connecting an additional 1.49 MW of hydropower to the network.


Knowledge-sharing activities, including publication of an operation and maintenance (O&M) manual and ongoing training for EPC staff , will support project sustainability with enhanced institutional capacity.

Power Sector Expansion ProjectImplementing projects and assisting the Electric Power Corporation will improve fi nancial performance and delivery of electricity services.

Executing Agency Samoa, Ministry of Finance

Project Offi cer Grace King

Status Ongoing

Funding by Source


Australia (grant) $8.00 million

Japan Bank for International Cooperation

$49.44 million


The Power Sector Expansion Project will support the Government of Samoa in achieving its power sector goal to provide sustainable and reliable electricity services to all consumers at aff ordable prices. To achieve this, ADB is working with EPC to build institutional capacity, improve fi nancial performance, and, ultimately, deliver a higher quality of services to consumers.

Key outputs of the project include:(i) supporting EPC’s investment plan to meet growing

demand,(ii) improving the operational effi ciency of EPC,(iii) improving the fi nancial performance of EPC,(iv) establishing eff ective regulation of the power sector,(v) developing a demand-side management strategy to

promote energy effi ciency and conservation, and(vi) developing clean energy resources through the

establishment of innovative fi nancing schemes.

The project is implementing 29 subprojects as it progresses toward delivering these outputs. Subprojects focus on upgrading transmission and distribution lines, installing prepayment meters, constructing and rehabilitating diesel generation plants, and developing renewable energy resources.

The project’s overall impact will be access to sustainable and reliable electricity services at aff ordable prices; its outcome will be improved quality, reliability, and cost-eff ectiveness of Samoa’s power supply.

Solomon Islands

In Solomon Islands, approximately 16% of the total population has access to electricity, and all grid-connected power is generated by diesel. This leads to one of the highest tariff s in the Pacifi c—$0.76/kWh in January 2016—and creates signifi cant barriers to economic growth. Increasing uptake of grid-connected renewable energy provides opportunities to lower generation costs and extend electrifi cation to portions of the population who are not currently served.

Provincial Renewable Energy Project

Provincial Renewable Energy ProjectThe project will install hydropower and extend grid connection.

Executing Agency Ministry of Mines, Energy and Rural Electrifi cation


Status Ongoing

Funding by Source



Government of Solomon Islands $3.00 million


The province of Malaita houses around 25% of the national population, but has only about 2% of total generation capacity. This power supply is unreliable, and suff ers frequent outages due to fuel supply and maintenance issues.

The project is increasing renewable energy generation and access in Auki—the provincial capital of Malaita. It is doing so by assisting the Solomon Islands Electricity Authority (Solomon Power) with the installation of a hydropower generation plant to replace an existing diesel plant, and by extending the distribution network to peri-urban households.

The project comprises four outputs:(i) Fiu River Hydropower Plant, which will almost entirely

supplant current diesel generation;5 (ii) distribution of grid extension, which is expected to

increase Solomon Power’s customer base by about 91%;(iii) capacity building for Solomon Power staff , and training

for residential stakeholders concerning income-generation through electricity, electricity safety, and household budget management; and

(iv) establishment of a project management unit to increase project effi ciency.

5 The physical infrastructure will be sized for 750 kW capacity; however, initially only two 250 kW generators will be installed. An additional 250 kW generator will be installed into the spare generator bay when load growth increases. The installation of two 250 kW generators is determined to be the most effi cient sizing to meet the current 350 kW peak as well as short-term anticipated demand growth. Backup diesel generation will be maintained (in case of disruptions to the hydropower supply) which will also operate periodically for maintenance purposes.


This is the fi rst utility-scale renewable energy project in Solomon Islands, and is expected to deliver the outcome of increased supply of cleaner and more reliable power. The impact will be increased economic activity in Auki, Malaita Province.

Solar Power Development Project

Solar Power Development ProjectInstalling solar power systems in fi ve provinces will supplant costly diesel generation.

Executing Agency Ministry of Mines, Energy and Rural Electrifi cation


Status Planned

Funding by Source



Climate Investment Fund $6.20 million

Government of Solomon Islands $6.00 million


Due to high transport costs and low economies of scale, the cost of electricity generation across Solomon Islands’ provincial grids is signifi cantly higher than on Honiara (the nation’s capital). This provides a disincentive for Solomon Power to extend grid connection to new customers, as the national tariff does not cover the cost of supply in provincial

areas. The levelized cost of solar power ($0.405/kWh, with battery storage) compares favorably with that of diesel ($0.50.1/kWh), providing a clear incentive to integrate solar generation into provincial grids.

The project targets the conversion of diesel generation to renewable energy. Its impact will be an increased use of renewable energy, with an outcome of increased supply of reliable and cleaner electricity. This will consist of (i) a total of 2 MW of installed, grid-connected solar power; (ii) built capacity in the O&M of small hybrid solar systems for Solomon Power staff ; and (iii) effi cient project management services.

A total of fi ve solar-diesel hybrid systems will be installed at diff erent sites, and will replace between 66% and 87% of diesel generation in the fi ve selected provinces—Kirakira (320 kW), Lata (290 kW), Malu’u (140 kW), Munda (1,000 kW), and Tulagi (250 kW). Reduced fossil fuel consumption will lower carbon emissions and decrease generation costs.

Timor-LesteTimor-Leste prioritizes power sector development as a key driver of economic growth and poverty reduction. From 2003 to 2014, Timor-Leste successfully increased electrifi cation rates from 22% to 71%, and currently possesses suffi cient installed capacity to connect all households and meet peak residential, commercial, and industrial demand for the coming decade. Improvements to electricity services, however, levy considerable fi scal burdens on the state.

Since 2008, the Government of Timor-Leste, through


its ministerial department responsible for electricity—Electricidade de Timor-Leste (EDTL)—has invested nearly $1 billion in the construction of two diesel power plants, and a nationwide 150 kV transmission and 20 kV distribution system. In spite of these assets, considerable investment needs remain, and the cost of providing electricity is extremely high. The government spends approximately $100 million per year to fund operating costs in the power sector.

Electricity System Strengthening and Sustainability ProgramTo identify investment needs, build institutional capacity, and make targeted investments in EDTL’s transmission and distribution network.

Executing Agency Ministry of Public Works


Status Planned

Funding by Source

Technical Assistance Special Fund (TASF- Other Sources)

$1.00 million

Asian Development Bank $28.30 million

Cofi nancing (TBC) $20.00 million


ADB is working with the government to identify the needs and potential scope of investments, and to build capacity among appropriate government departments. The Electricity System Strengthening and Sustainability Program will provide targeted investments in EDTL’s transmission and distribution infrastructure, as well as in the O&M of three power plants.

The overarching challenge for the sector is to reduce costs and increase revenues; EDTL, in turn, will need to become fully accountable for its physical and fi nancial performance. This will require (i) the introduction of new management practices and commercial arrangements with EDTL; and (ii) further targeted investment in EDTL’s assets to reduce losses, improve service quality, and increase electrifi cation rates. Further investments may also diversify Timor-Leste’s fuel mix to reduce diesel dependence and generation costs, while enhancing fuel security.

Tonga

Tonga comprises fi ve island groups—Tongatapu, ‘Eua, Ha’apai, Vava’u, and Niuas—and has a total of 176 islands. Although 89% of households on Tonga enjoy access to grid electricity, 90% of power generation relies on imported diesel. Tonga’s exposure to fl uctuating fuel prices, paired

with its geographical isolation, leads to high generation costs for the state-owned electricity utility–Tonga Power Ltd.—and high tariff prices for consumers. Renewable energy and improvements to energy effi ciency provide opportunities to lower cost, enhance energy security, and decrease emissions.

The Government of Tonga has set a target of reducing fossil fuel imports for power generation by 50% by 2020, and defi nes a strategy for achieving this goal in the Tonga Energy Roadmap 2010–2020. Renewable energy and energy effi ciency improvements are key elements of this strategy.

The Outer Island Renewable Energy Project is supporting this goal by constructing solar generation systems on nine of Tonga’s outer islands, which will result in a preliminary capacity of 1.32 MWp.

Outer Island Renewable Energy ProjectThe project will deliver increased access to renewable energy on Tonga’s outer islands, and increase system effi ciency.

Executing Agency Ministry of Finance and National Planning


Status Ongoing

Funding by Source

Asian Development Fund $8.44 million (including proposed additional fi nancing)

Government of Australia (grant) $4.50 million

Outer Island Renewable Energy Project

$3.57 million

Danish International Development Agency

$0.75 million

Government of Tonga $0.97 million


The project is helping Tonga to build photovoltaic systems into existing grids, rehabilitate and improve energy effi ciency among distribution networks, and install photovoltaic systems into community-owned minigrids. The project is also increasing knowledge among appropriate staff and institutions to strengthen capacity for the O&M of solar power and integrated diesel systems. Additional fi nancing will be used to upgrade about 50% of the electricity grid on Vava’u.

Subprojects include:(i) On-grid: connecting photovoltaic generators to

existing electricity distribution networks on ‘Eua (0.2 MWp), Ha’apai (0.55 MWp), and repairing systems on Vava’u;


(ii) Minigrid: connecting photovoltaic generators to existing community-owned and community-managed minigrids on four Ha’apai outer islands, including ‘Uiha (100 kilowatt peak [kWp]), Nomuka (70 kWp), Ha’ano (70 kWp), and Ha’afeva (150 kWp);

(iii) Off -grid: expanding existing solar home system capacity in Niuafo’ou and Niuatoputapu (additional 0.18 MWp); and

(iv) Energy effi ciency: upgrading existing power distribution networks on ‘Eua and Vava’.

The project will deliver the outcomes of optimized on-grid and off -grid generation systems, and increased access to more aff ordable electricity, generated by renewable resources, and produce an ongoing impact of reduced dependence on imported fossil fuel for power generation.

Cyclone Ian Recovery Project

Cyclone Ian Recovery ProjectThe project will help Tonga rebuild a resilient power infrastructure.

Executing Agency Ministry of Finance and National Planning

Project Offi cer Vijay Narayan

Status Ongoing

Funding by Source



Globally, Tonga is ranked second in terms of risk of disasters caused by natural hazards; this ranking is based on exposure, susceptibility, coping capacity, and adaptive capacity. On 11 January 2014, the most powerful storm ever recorded in Tongan waters passed directly over the northeast islands of Ha’apai, directly aff ecting about 5,000 people, or 66% of the local population. The cyclone is estimated to have caused $53 million in damage and losses, with the majority of damage levied against housing, business, agriculture, power infrastructure, and education.

The state-owned electricity utility—Tonga Power Ltd.—estimates that 90% of Ha’apai’s distribution lines, 40%–70% of electricity poles, 65% of transformers, 90% of transformer structures, and 95% of streetlights were damaged. Ha’apai was left almost completely without power.

ADB is responding by helping the government to reconstruct and climate-proof the main electricity network and damaged school facilities, taking a “build back better” approach. The The Cyclone Ian Recovery Project includes (i) construction and upgrades of an above-ground and bellow-ground distribution system, (ii) construction and climate-proofi ng of underground networks to supply Ha’apai’s hospital and high school, (iii) restoration and climate proofi ng of streetlights, and (iv) provision of solar lanterns and solar community chargers for residents on Ha’apai’s outer islands of Ha’apai.

The majority of these outputs were completed by the close of 2015, and an added benefi t of gender mainstreaming was achieved as a component of the project. The implementing agency trained and hired seven female workers to support the installation of power lines and the operation of heavy machinery, contributing to gender equality in Ha’apai’s workforce.


Generating Impact in the Pacifi c

The Pacifi c approach of the Asian Development Bank (ADB) sets the goal of achieving sustained, resilient, and improved standards of living to support a region of peace, harmony, security, and economic prosperity. The work of ADB’s Pacifi c Department in the energy sector advances this goal by increasing access to clean and reliable energy—a resource that is essential for low-carbon economic growth and improved living conditions.

Energy sector impacts in the Pacifi c include:(i) enhanced energy security through the effi cient use of domestic renewable resources,(ii) increased access to aff ordable power generated by clean and sustainable resources, and(iii) improved economic activity and eff ective governance of public and private sector institutions.

Over the past year, Pacifi c DMCs have achieved considerable progress toward improving the quality and quality of energy services. Energy management has improved, effi cient and resilient infrastructure has been built, and communities are benefi ting from greater access to clean power; however, further progress remains to be achieved. ADB will continue to work with its partners across the Pacifi c in order to advance regional goals and deliver lasting impacts.


For more information, contact:

Olly Norojono Anthony Maxwell J. Michael Trainor Woo Yul LeeDirector Senior Energy Specialist Energy Specialist Energy [email protected] [email protected] [email protected] [email protected]

Syed Hussain Haider Jude Kohlhase Fred RamosInfrastructure Specialist Infrastructure Specialist Project Offi cer (Energy)[email protected] [email protected] [email protected]

Transport, Energy and Natural Resources Division, Pacifi c Department, Asian Development Bank

Photo credits: ADB–pages 11, 17, 19, and 22; A. Maxwell–page 15; G. Zieroth–page 9; M. Trainor–page 6; R. Velasco-Rosenheim–page 8; and V. Narayan–page 21.

About the Pacifi c Energy Update 2016The Asian Development Bank (ADB) works across the Asia and Pacifi c region to strengthen communities and improve lives by supporting governments, businesses, and infrastructure to operate more eff ectively. Clean energy is an essential resource for driving low-carbon economic growth and for enhancing the quality of life for people in the region. The Pacifi c Energy Update 2016 describes ADB’s work in the energy sector; it highlights how technical assistance and energy sector projects are helping to build resilient, low-carbon economies, while increasing access to clean, reliable power in the Pacifi c.

About the Asian Development BankADB’s vision is an Asia and Pacifi c region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to the majority of the world’s poor. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration.

Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.

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© 2016 Asian Development Bank6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, PhilippinesTel +63 2 632 4444; Fax +63 2 636 2444www.adb.org; [email protected]; [email protected]

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The views expressed in this publication are those of the authors and do not necessarily refl ect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.

This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of said license as well as the Terms of Use of the ADB Open Access Repository at openaccess.adb.org/termsofuse

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