SECTION 1: GENERAL INFORMATION This section provides ...

Annual Performance Report | General Template

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SECTION 1: GENERAL INFORMATION This section provides general information on the funded activity.

1. Funded Activity Title: Tina River Hydropower Development Project

2. Funding Proposal Number: FP044

3. Date of Board approval - Board Meeting Number: 4/14/2017

B.16

4. Accredited Entity: The World Bank

5. Focal Point of the Accredited Entity for this Project: Mr. Mitsunori Motohashi, ([email protected]), +61-2-9235-6467 Ms. Renee Berthome, ([email protected]), +61-2-9235-6505

6. Executing Entity(ies): Solomon Islands

7. Implementation Period: From: 11/22/2019 (FAA Effectiveness Date) To: 11/21/2026 (FAA Completion Date)

8. Current year of Implementation: Year 2

9. Date of Submission of the Report: 2/28/2021

10. Annual Reporting period covered in this report: From: 01/01/2020

To: 31/12/2020

11. Total Project Budget2: US$241,880,000 (Loan: US$157,975,000 Grant: US$50,955,000)

12. Total amount of GCF Proceeds Approved: US$86,000,000 (Loan: US$70,000,000 Grant: US$16,000,000)

13. Total amount of GCF Proceeds disbursed (cumulative) to the Accredited Entity:

Loan: US$ 70,000,000 Grant US$ 8,000,000

2 Total project budget including co-financing as reflected in the relevant Funded Activity Agreement.

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SECTION 2: IMPLEMENTATION PROGRESS

2.1 OVERALL (SUMMARY) PROJECT PROGRESS The Tina River Hydropower Development Project is the first utility-scale hydropower plant in Solomon Islands, and the first large-scale infrastructure to be developed under a public-private partnership (PPP) in the country. The project consists of four components: (i) 15-megawatt (MW) hydropower facility located on the Tina River (east of Honiara), comprising: a dam, headrace tunnel and a powerhouse about 3km downstream of the dam; (ii) access road; (iii) transmission lines - two parallel (on separate towers) single circuit transmission lines connecting the powerhouse to the existing Lungga Power Station; and (iv) technical assistance. The project is supported by six financiers, private sector equity and counterpart funding: World Bank Group’s International Development Association (IDA) (USD 33.63 million), Green Climate Fund (GCF) (USD 86 million), Abu Dhabi Fund for Development (ADFD) (USD 15 million), Asian Development Bank (ADB) (USD 30 million), the Australia-Pacific Islands Partnership (APIP) Trust Fund, financed by the Government of Australia (GOA) (USD 12.7 million), the Korea Economic Fund for Development Cooperation (EDCF) (USD 31.6 million), the Project Company – Tina hydropower Limited (THL) (USD 10.80 million), Solomon Islands Electricity Authority (SIEA – trading as Solomon Power) in the form of counterpart funds (USD 20.75 million) and Solomon Islands through its Ministry of Finance and Treasury (MoFT) (US$1.4 million). The Power Purchase Agreement (PPA) and other key agreements including the Government Guarantee Agreement (GGA) and the Implementation Agreement (IA) were signed on December 6, 2018. IDA and GOA’s financing agreements were also signed on December 6, 2018 and made effective on December 19, 2018. The parties to the PPA, GGA and IA – the Solomon Islands Government (SIG), THL, and SIEA – over the course of 12 months satisfied the conditions precedent (CPs) to the PPA, GGA and IA and the PPA was Closed successfully on December 12, 2019. The 2020 Annual Work Plan and Budget (AWPB) for the Project (except for Component 3 – Transmission Line which is not yet due) was approved and the Project Operation Manuals (POM) prepared independently for Components 1 and 2 (Hydropower Facility and Access Road), Component 3 (Transmission Line) and Component 4 (Technical Assistance), were signed and adopted by SIG and the implementing entities. THL issued Notice to Proceed to the Engineering, Procurement and Construction (EPC) contractor - Hyundai Engineering Co., Ltd. (HEC) immediately after Financial Close. HEC commenced unexploded ordnance (UXO) survey of the Access Road alignment and the camp site by subcontracting OPEC Systems1. In early 2020, THL appointed Stantec as its Owner’s Engineer and the Project Office appointed Norconsult as its Lender’s Technical Advisor (LTA) which also included the role of Independent Environmental and Social Monitoring Agent (IESMA)2. The ADB’s Office of Public-Private Partnership (OPPP) also contracted AMAL Trustee as the Admin Agent (AA) for MoFT. While progress was made to have the contracts in place to start implementation, preparation of the Access Road detailed design and Construction stage Environmental and Social Management Plans (CESMPs), of which there are 31 separate plans related to the Access Road and Hydropower Facility as required by the PPA, was delayed, and as such, the commencement of construction is delayed. Furthermore, the global outbreak of COVID-19 prompted SIG to start imposing travel restrictions in February 2020 and HEC’s full engineering team was delayed in mobilizing on site to prepare for construction. The Owner’s Engineer and LTA and other consultants and advisors are working remotely and conducting virtual missions until travel is permitted to Solomon Islands. As of December 31, 2020, the project has disbursed a total US$11.01 million in grant financing from IDA and APIP. The 2021 AWPB for EPC costs will be updated once the implementation schedule is updated as a result of the delays in the EPC contract milestone schedule. The 2021 AWPB for non-EPCs costs was updated to record THL’s actual expenditure against the first Non-EPC cost advance (US$2.06 million) which was disbursed in December 2019, while the AWPB for Component 4 (Technical Assistance) has been updated to reflect the revised Component 4 budget estimate. The quarterly interim unaudited financial reports for THL and the Project Office were submitted on time and were satisfactory. The audited Financial Statements for 2019 for the Project Office and THL were received and were unqualified. The audited Financial Statements for 2020 for the Project Office and THL are due not later than June 30, 2021. The consolidated quarterly progress reports prepared by the Project Office continue to be submitted with delay. The GCF Funded Activity Agreement (FAA) was declared effective on November 22, 2019 and the GCF Financing Agreement between the World Bank and SIG and the GCF Project Agreement between the World Bank and THL were signed on November 26, 2019. The GCF transferred US$78 million to the World Bank in December 2019 comprising $35 million low-concessionality loan, $35 million high concessionality loan and $8 million grant. The remaining US$8 million grant will be transferred from the GCF to the World Bank after 70 percent of the initial grant tranche of US$8 million has been disbursed by the World Bank to the project or committed by the Executing Entity. The World Bank is expected to start disbursing GCF Financing to SIG in 2021.

1 UXO survey had started in September 2019, prior to NTP, since HEC is also one of the two sponsors of THL. 2 “Lender” refers to SIG in the context of the Onlending agreement in which SIG lends to THL.


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2.2 Performance against the GCF Investment Criteria (summary)

Overall, the project continues to be consistent with the initial assessment against the GCF Investment Criteria in the Funding Proposal. An assessment of current status, changes, progress and impact of the project for each investment criteria are outlined below.

2.2.1 Impact Potential

The impact potential of the project continues to be consistent with the initial assessment in the Funding Proposal.

2.2.2 Paradigm shift potential The paradigm shift potential of the project continues to be consistent with the initial assessment in the Funding Proposal. SIEA has developed a strategy to increase the volume of grid connected solar on the Honiara grid over the next five years in preparation of the Tina River Hydropower facility commissioning. The Community Benefit Share Pilot Project (CBSP), funded by the Japan Social Development Fund and administered by the Accredited Entity, was launched in December 2019. CBSP has made considerable progress during the implementation reporting period, despite the COVID-19 pandemic. A Community Water Specialist was contracted in March 2020 and began survey of the project target areas in April and a total of 18 potential project sites have been identified. The technical design of all systems is underway, and construction is expected to begin in June 2021. The design for an eight-kilometer 11 kV feeder line is being finalized by SIEA. Final consultations are being undertaken with the community situated along the proposed feeder line route, after which the design will be complete. Establishment of the community benefit sharing fund and community capacity building commenced with the launch of the recruitment process for an International Benefit Sharing Technical Advisor. The recruitment of two related consultants to advise on legal arrangements for the Benefit Sharing Fund, and to prepare detailed technical and operational documents for the fund, will commence in 2021. 2.2.3 Sustainable development potential

The sustainable development potential of the project continues to be consistent with the initial assessment in the Funding Proposal. One of the IDA Financing Agreement covenants is for SIG to support the tribes to prepare a protected area management plan for the upper catchment if the tribes are interested. An initial step is expected to be the engagement of a consultant to commence discussions with landowners regarding the establishment of a protected area and identifying alternative livelihoods that complement the Tina River Hydropower Facility. The Accredited Entity has contracted a natural resource management specialist on a short- term assignment, with expertise in protected area establishment, alternatively livelihood mechanisms and sourcing funding. Over 70 local staff and labour (including skilled (50), semi-skilled (8) and unskilled (16) personnel) have been recruited by HEC or HEC’s sub-contractors during this reporting period. The human resource development component of CBSP provides vocational, technical, life skill, and other relevant training to community members according to project demand. The Human Resource Development Contractor has begun creating a database of available and upcoming jobs and has surveyed and entered data on over 1,000 eligible and interested individuals. The database is being analyzed and the first rounds of technical training courses will be designed based upon the available skills of applicants and the needs of this project. The first round of pre-employment training is expected to be in early 2021, followed by either direct job placement or enrollment in technical training courses. Through IDA’s Solomon Islands Electricity Access and Renewable Energy Expansion Project (SIEAREEP), technical assistance to SIEA and the Ministry of Mines, Energy and Rural Electrification (MMERE) is supporting the statutory cost of service and tariff review. The objective of this review is to support SIEA and MMERE in establishing the non-fuel electricity charges for the next tariff review period (5 years), including revising the current tariff regulation. The Accredited Entity is supporting SIEA to ensure a fair and transparent review process.


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2.2.4 Needs of the recipient The ADB’s OPPP has been funding the advisor to MoFT to prepare a Financial Operations Manual and build capacity of staff through on-the-job training as he assists with MoFT’s responsibilities under the project. It was reported that the advisor’s contract was due to expire at the end of September 2020. Given the critical role the advisor has been playing in advising not only MoFT but also the Project Office and THL, SIG requested to extend the advisor’s contract. The IFC through their post-transaction advisory support has taken on the advisor’s contract and provided financing. Through IDA’s SIEAREEP, technical assistance to MMERE is supporting a review of the Electricity Act Cap 128, including an examination of the schedule of fees for Independent Power Producers, the enabling environment for private sector and promoting greater penetration of renewable energy in the energy mix. Technical assistance to MMERE is also supporting an Energy Advisor for two years on a part-time basis to support and advise on the Cost of Service and Tariff Review, development of a national access strategy and the review of the Electricity Act, amongst other priority activities. 2.2.5 Country Ownership

The country ownership continues to be consistent with the initial assessment in the Funding Proposal. The public is informed about project developments on a regular basis through the media, social media and through community consultations. The Project Office has an active program of community engagement that informs those affected as to project developments and the way in which the project will affect them. The International Communications Advisor, appointed to the Project Office in early 2020, leads the implementation of the Communications Plan and Strategy with support from the local Communications Officer. 2.2.6 Efficiency and Effectiveness

The efficiency and effectiveness of the project continues to be consistent with the initial assessment in the Funding Proposal.


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2.3 PROJECT OUTPUTS IMPLEMENTATION STATUS4

Project Output

Project Activity

Status5

Implementation

progress6 (%)

Output 1 Tina River Hydropower Plant Commissioned

Project Activity 1.1 Project Company Operation

Activity Started -progress delayed 25%

• Review basic design (due Q5) o THL and its Owner’s Engineer commenced review basic design as scheduled. Review of basic design continued

throughout this reporting period.

• Ensure quality of access road Lot-1 (due Q6) o THL and its Owner’s Engineer reviewed Access Road detail design for Lot-1 as scheduled. o Supervision of construction has not started as construction of Lot-1 is yet to commence. The Owner’s Engineer

site engineer conducts regular monitoring of HEC’s preparation activities.

• Review detailed design (due Q8) o THL and its Owner’s Engineer will commence review of the detailed design when all outstanding Basic Design

issues have been addressed and a full design package is submitted by HEC.

Oversee implementation of the EPC contract including construction of the access road and commencement of preparation works for the hydropower facility.

Project Activity 1.2 Design and Construction of Hydropower Plant

Activity Started -progress delayed 25%

• Start construction of general facilities (due Q4) o SIG, through the Project Office, resolved the outstanding issues around land acquisition of the Core Land. In May

2019 the Kochiabolo tribe accepted compensation funds and established its cooperative and the compensation funds were transferred to the cooperative account. In September 2019, the final tribe of the five land owning tribes, the Buhugaro tribe, reached agreement to accept compensation and establish its cooperative. All five tribes have established their cooperative societies and the cooperatives have formed the Tina Core Land Company, which was incorporated on November 14, 2019. The land lease agreement over the Core Land between the Tina Core Land Company (TCLC) and THL was signed on December 6, 2019. The signing of the land lease agreement represents the completion of the land acquisition process which had begun some 10 years earlier. Throughout 2020, the Project Office worked closely with the representatives of the cooperatives and the Permanent Secretaries of MoFT and MMERE to ensure the obligations under the lease are met and payments from THL are made and funds distributed to the cooperative accounts. Representatives from the Project Office attend the TCLC board meetings as observers.

Completion of six agreed action items by HEC and THL to facilitate the commencement of construction. Completion of the basic design is on the critical path and submission of full detailed design package is expected in early 2021. The first disbursements for the Hydropower facility are expected in 2021 as additional site preparation activities get underway.


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o The geological survey of the dam site and powerhouse area was largely completed in October 2019 except for a 6.2km river section between the dam site and powerhouse. The final 6.2km was completed in April 2020.

o Preparation of the CESMPs by HEC commenced in mid-2019. After extensive delays and multiple reviews of the

plans by the Accredited Entity and Concessional Financing Parties (CFPs) throughout this report period, HEC engaged Stantec under a separate contract in September 2020 to assist with preparation of the CESMPs. In November 2020, HEC managed to finalize the CESMPs and submit to the Accredited Entity and CFPs for their clearance. The Accredited Entity cleared the CESMPs in December subject to completion of certain actions by the deadlines set out in P1 - Construction Environmental and Social Management Plan. As part of the Accredited Entity’s clearance, there are an additional six agreed action items required to be completed by HEC and THL by the end of January 2021 and before construction can commence, including training of HEC and THL on CESMP content by Stantec and strengthening of their safeguard management capabilities. THL and HEC are sufficiently advanced in their preparations to address these action items and the deadlines are expected to be met.

o UXO clearance commenced for the access road and construction camp site. The UXO survey was completed on the Camp Site and Lot 1 and Lot 2 and a total of 44 UXO were found and removed from the site as of December 31, 2019. OPEC Systems provided UXO certification for Lot 1, Lot 2-1 and the camp site in March 2020. OPEC Systems had to demobilize from site to return to Australia due to the COVID-19 pandemic and completion of the UXO survey of the remaining areas was suspended. A local subcontractor of OPEC, SIOTEC resumed the UXO survey in June 2020 and in August the survey of all remaining areas was complete. A total of 18 additional UXO were found and removed from the site as of December 31, 2020. Overall, a total 62 UXO were found and removed from the access road and camp site.

o Construction equipment and machinery has been progressively mobilized to site throughout this reporting

period. The temporary worker’s camp has been constructed but will not be occupied until the CFPs receive HEC’s Camp Impact Assessment.

• Complete basic design; start detailed design (due Q5)

o The basic design of the Hydropower Facility was submitted in May 2020. A copy of the Dam Safety Advisory Panel (DSAP) report was submitted to the Accredited Entity on July 6, 2020 and a virtual DSAP meeting was held in August 2020. A further review of the basic design submission was conducted October 2020 and Several outstanding basic design issues are still to be resolved.

• Complete detailed design; start headrace tunnel construction (due Q7) o HEC submitted detailed design on November 11, 2020. Additional detailed design information was submitted on

November 24, 2020, and a revised detailed design package was issued by HEC on November 30, 2020. THL and the Project Office have advised HEC the unresolved basic design issues must be addressed and finalized before resubmission of a detailed design package that satisfies the requirements in the Project Documents.

o Construction of the headrace tunnel is scheduled to commence in September 2021.


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• Start river diversion works (due Q8)

o River diversion works is scheduled to commence in November 2021.

Output 2 Access Road completed

Project Activity 2.1 Design and Construction of Access Road Activity Started -progress delayed 20%

• Commence advanced design of access road (due Q3) o The detailed design for Access Road Lot-1 was submitted in December 2019 and designs for Lot-2 and Lot-3

were submitted in January 2020. The design for Lot-1 was accepted in March 2020 with one-month delay and the designs for Lot-2 and Lot-3 were accepted in July 2020 with almost six-months delay. Detailed construction drawings for all lots were issued in July 2020.

• Start access road construction (due Q4)

o Construction has not started due to (i) the need for extensive UXO survey; (ii) delays to finalize and obtain agreement on the detailed design of the Access Road; and (iii) delays in preparing and finalizing the CESMPs.

• Completion Lot-1 existing road upgrade (due Q6)

o Construction of Lot-1 has not started as scheduled.

Commence access road construction in 2021.

Output 3 Transmission line commissioned

Project Activity 3.1 Construction of Transmission Line Activity Not Yet Due 15%

o The cost of the transmission line is estimated at USD 22.821 million. The financing for the transmission line

comprises US$2.071 million already secured from IDA and USD 20.75 million through SIG as counterpart financing. In July 2019, SIG requested financing from the GoA, through its new facility, the Australian Infrastructure Financing Facility for the Pacific (AIFFP). AIFFP financing was endorsed by its board in March 2020. The signing of Grant Agreement and Loan Agreement (‘the financing agreements’) is delayed due to ongoing negotiations between AIFFP and SIEA. The subsidiary agreement between the Accredited Entity and SIEA has not been signed as per the IDA Financing Agreement (due on June 30, 2020) following AIFFP endorsement by its board to finance Component 3.

o SP has progressed with the acquisition of easements for the length of the line between Lungga Power station and Malango junction, where four landowning groups were identified. SP had signed easement documents with three of the landowning groups.

o SIEA has engaged Entura to complete the detailed design and prepare the technical scope of works for the

construction of the proposed 66 kV transmission line. The detailed design and technical specification documents are being finalized and the tender for supply, installation, and commission of the two proposed transmission lines is scheduled to go to market in 2021. SIEA finalized the safeguards documents, an Environmental and Social

Signing of the financing agreements between AIFFP and SIEA. Commence UXO survey and geotechnical investigations of the transmission line route. Complete detailed design for the transmission line and launch tender process. Contract award expected by June 2021 and mobilization of the contractor by October 2021.


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Management Plan (ESMP) and an Abbreviated Resettlement Action Plan (ARAP) and obtained approval from AIFFP. SP has recruited a gender specialist as a focal point to oversee the requirements of the separate Gender Action Plan (GAP). A community awareness campaign to support geotechnical investigations has commenced and UXO survey and clearance of the transmission line route is expected to commence in 2021.

Output 4 Technical Assistance

Project Activity 4.1 Project staffing and management Activity Started -progress on track 25%

• Recruit key staff of Project Office (due Q1) o The recruitment of staff to key positions of the Project Office continued throughout this reporting period. The

international Technical Advisor renewed in April 2020 for an additional 1 year to support the Project Office, while the international Strategic Advisor concluded their assignment in early 2020 and the international Legal and Safeguards Advisor resigned in April 2020 to take up a new role. The recruitment of the Project Manager position, which was never filled due to lack of interest from qualified candidates in 2019, was advertised in October 2020. Following strong interest in the position this time around, the shortlisting and interview process was completed in December 2020. The appointment of the Project Manager is expected in 2021. Following an international recruitment process, the Project Office appointed an Environmental and Social Safeguards Manager in August 2020. The Environmental and Social Safeguards Manger will work remotely until travel is permitted to Solomon Islands. MMERE undertook a competitive selection process to add transparency to the staff of the Project Office since several staff have been engaged in the project for several years through contract extensions. As a result of the competitive selection process, the incumbent Deputy Project Manager was re-appointed effective July 1, 2020. Similarly, the incumbent Environmental and Social Officer, two Community Liaison Officers (CLOs; of which one is concurrently the Gender Focal Point), Communications Officer, Project Implementation Support Officer (formerly hydrologist), Resource Management Officer (formerly receptionist) and the Accountant, who are all Solomon Islands nationals, were re-appointed at various times throughout the reporting period. A new CLO (male) has been appointed following the departure of the CLO in October 2020. The new CLO is taking over managing the Grievance Redress Mechanism (GRM) from the CLO and concurrent Gender Focal Point until this is transitioned to THL so the implementation of the Gender Action Plan can be prioritized.

• Assist review of basic design; facilitate periodic review (due Q5)

o The Project Office and the LTA continue to assist the ongoing review of the basic design.

• Check quality of access road Lot-1 (due Q6) o A socio-economic baseline survey, required to be undertaken prior to commencement of construction of the

Access Road Lot-1, was completed in October 2020 after some initial delays to recruit an international consultant to prepare and execute the survey. Due to COVID-19 travel restrictions, the consultant was unable to travel to Solomon Islands, so the Project Office recruited a Local Team Leader to work closely with the consultant and manage a team of local enumerators hired by the Project Office. A total of 245 household surveys were completed in August 2020. The survey data has been complied and the consultant is preparing a

Finalize recruitment of the Project Manager to the Project Office. Recruit a local consultant to transcribe and translate focus groups and key informant interviews. Completion and submission of the baseline socio-economic survey report. Project Office assists review of detailed design and continue E&S monitoring following clearance and commencement of implementation of the CESMPs.


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draft preliminary report. In addition to the household surveys, several focus groups and key informant interviews were completed by October 2020. The transcription of the interviews and focus groups and translation into Tok-pidgin is delayed due to resourcing constraints. The Project Office is hiring a local consultant to complete the transcription and transcribing.

• Assist review of detailed design; facilitate periodic review (due Q7) o Project Office and the LTA will commence review of the detailed design when all outstanding Basic Design issues

have been addressed and a full detailed design package has been submitted.

Project Activity 4.2 Dam safety advisory panel (DSAP) and Independent E&S Monitoring Agent (IESMA) Activity Started -progress delayed 25%

• DSAP review of basic design (due Q5) o DSAP review of basic design completed in August 2020.

• DSAP review of detailed design; (IESMA) periodic review (due Q7)

o DSAP review will commence review of the detailed design when all outstanding Basic Design issues have been addressed and a full design package has been submitted.

o The first semi-annual IESMA monitoring mission completed as scheduled.

The DSAP meeting is tentatively schedule for Q1, 2021. Submission of the IESMA monitoring report to Accredited Entity. Second semi-annual IESMA monitoring mission and report expected by June 2021.


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2.4 PROGRESS UPDATE ON THE LOGIC FRAMEWORK INDICATORS7

2.4.1 PROGRESS UPDATE ON FUND-LEVEL IMPACT INDICATORS OF THE LOGIC FRAMEWORK

Fund-level impact Core indicators8 (Mitigation)

Baseline Current value9

Target (mid-term)

Target (final) Remarks (including

changes10, if any)

Mitigation Core Indicator 1 Tonnes of carbon dioxide equivalent (tCO2eq) reduced as a result of Fund-funded projects/programmes

0 0 0 57,927tCO2eq

0 0 0 2.48million tCO2eq

Mitigation Core Indicator 2 Cost per tCO2eq decreased for all Fund-funded mitigation projects/programmes

0 0 0 $34.68/ tCO2eq

Mitigation Core Indicator 3 Volume of finance leveraged by Fund funding (Disaggregated by public/private source)

Public: 0 US$122.93million US$145.08million US$145.08million

Private: 0 US$5.087million US$10.8million

7 Per the approved methodology in and the Logic Framework in the Funding Proposal, please provide an update on the relevant indicators. 8 As per the relevant indicators established in the Funding Proposal and the Performance Measurement Framework, including all indicators approved by the Board and relevant updates agreed with GCF, if applicable. 9 As of 31 December of the relevant year. 10 Related to the approved indicators and targets in the Logic Framework.

11 As per the relevant indicators established in the Funding Proposal and the Performance Measurement Framework, including relevant updates agreed with GCF, if applicable. 12 As of 31 December of the relevant year. 13 Related to the approved indicators and targets in the Logic Framework.


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2.4.2 PROGRESS UPDATE ON PROJECT/PROGRAMME LEVEL INDICATORS OF THE LOGIC FRAMEWORK14 Project/Programme

indicators (Mitigation/Adaptation)

Baseline Current value15

Target (midterm)

Target (final) Remarks

(including changes16, if any)

Indicator 1 (Outcome level) Proportion of low-emission power supply in a jurisdiction or market

1% 1% Midterm 65%

Indicator 2 (Outcome level) Proportion of low-emission power supply in a jurisdiction or market

0MW 0MW 0MW 15MW

Indicator 1 (Output level) MWs of low emission energy capacity installed, generated and/or rehabilitated as a result of GCF support

0MW 0MW 0MW 15MW

Indicator 2 (Output level) Tina River Hydropower Plan Commissioned – 18.7 km of paved access road upgraded from Kukum Highway to Managikiki village and new road from Managikiki to Project site.

0 km 0 km 18.7 km 18.7 km Access road construction is yet to commence.

Indicator 3 (Output level) Transmission Line commissioned – 23 km of two parallel single-circuit transmission line from Project to Lungga Power Station

0km 0km 0km 2 x 23km

Indicator 4 (Output level) Technical Assistance – Assistance provided to retain experts to ensure compliance with AE’s policies on safeguards, fiduciary control, etc. and to support day-to-day operation of the MMERE Project Office

Dam Safety Advisory

Panel (DSAP, 4 members)

and Independent Environmental and Social Monitoring

Agent (IESMA)

retained for Project

Preparation

5 DSAP members in place.

IESMA is in place.

Same number of

DSAP members retained

throughout project

implementation

Same number of DSAP

members trained

throughout project

implementation and initial

year of operation

The recruitment process of the Lender’s Technical Advisor, including the IESMA, was completed in February 2020.

14 As per the relevant indicators established in the Funding Proposal and the Performance Measurement Framework, including relevant updates agreed with GCF, if applicable. 15 As of 31 December of the relevant calendar year. 16 Related to the approved indicators and targets in the Logic Framework or relevant FAA.


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2.5 REPORT ON CHANGES DURING IMPLEMENTATION (include actual and expected changes) No changes to beneficial ownership structure, management changes of the Accredited Entity, policies or other elements relevant for the project occurred during this reporting period.

2.6 IMPLEMENTATION CHALLENGES AND LESSONS LEARNED

Challenge encountered Type17 Measures adopted Impact on the project imple- mentation18

Lessons learned and Other Remarks

Delayed resolution of the acceptance for compensation associated with the land acquisition process. The potential impact on the project was high.

Procurement

Consistent and regular community engagement and engagement with the affected tribal members led by Government representatives resulted in developing and maintaining trust within the tribes. Solved

Government leadership is critical to the successful resolution of land related issues.

Delays in recruiting key consultant positions to the Project Office has hampered the speed at which issues can be addressed and resolved. Consultants struggled to use the World Bank STEP platform. The potential impact on the project was moderate.

Procurement.

Consistent follow up and hands-on support in early 2019 assisted in recruitment of several key consultant positions which lead to increased technical and resource capacity within the Project Office. Training in STEP was provided and a follow up session occurred in 2020, with regular remote support provided.

Solved

Commence procurement as early as practical. Early training in World Bank systems, such as STEP, is critical.

In late 2019 a new coronavirus (COVID-19) was recorded in Wuhan, China and by March 2020 it had evolved into a global pandemic, which is still ongoing. The resulting global travel restrictions primarily impacted the mobilization of contractor personnel and supervising consultants to site.

Other

HEC obtained for thirteen engineers exception to the travel restrictions granted by SIG on condition of completing a 28-day quarantine.

Where feasible, remote, rather than in-country support, is being provided by the recruited consultants to ensure minimal disruption to activities.

Moderate

Flexibility and adaptability in responding to the impacts of the COVID-19 pandemic has ensured minimal disruption to implementation and continued ongoing supervision of project activities.

Status of compliance Environment Act 1998 Sections 22(3)(a) and 24(3)(a) Development Consent was issued on July 25, 2019 Chapter 154 Town and Country Planning Develpment Permit was issued on August 23, 2019 FAA Clause 11.02(i) contractually required the Executing Entity under the Subsidiary Agreement and the Project Company under the Project Agreement to undertake and/or put in place measures to ensure the management of the environmental


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SECTION 4: REPORT PROJECT SPECIFIC ON ENVIRONMENTAL AND SOCIAL SAFEGUARDS & GENDER 4.1 IMPLEMENTATION OF ENVIRONMENTAL AND SOCIAL SAFEGUARDS AND GENDER ELEMENTS

The information includes description on any changes in the key environmental and social risks and impacts as identified and arising from the implementation including any unanticipated risks and impacts (ex. from changes in laws and regulations) and, based on these if any change in the project’s environmental and social risk category. In case of a change in the E&S risk category for the project, please provide an explanation.

o There is no change in the E&S risk category for the project.

The information should include status of compliance with applicable laws and regulations of the country as well as the relevant conditions or covenants under the FAA. This can be captured in the table below:

Status of compliance with applicable laws and regulations and the conditions and covenants under FAA

Applicable laws and regulations/conditions and covenants Status of compliance

Environment Act 1998 Sections 22(3)(a) and 24(3)(a) Development Consent was issued on July 25, 2019

Chapter 154 Town and Country Planning Development Permit was issued on August 23, 2019

FAA Clause 11.02(i) contractually required the Executing Entity under the Subsidiary Agreement and the Project Company under the Project Agreement to undertake and/or put in place measures to ensure the management of the environmental and social risks and impacts arising from the project complies with the recommendations, requirements, and procedures set forth in the ESIA, ESMP and LALRP and Gender Action Plan

This covenant has been met.

FAA Clause 11.02(j) contractually require the Executing Entity under the Subsidiary Agreement to take (or cause to be taken) all actions to acquire as and when needed all land and rights in respect of land that are required to carry out the project.

This covenant has been met.

Provide a report on the progress made in implementing environmental and social management plans (ESMPs) and frameworks (ESMFs) describing achievements, and specifying details outlined in the tables below.

o Preparation of the CESMPs continued throughout the implementation reporting period, including preparation of the

Stakeholder Engagement and Communication Management Plan. Clearance of the CESMP was obtained from the Accredited Entity in December 2020. Implementation of the CEMSP is expected to commence in 2021 and the plans will be subject to ongoing and periodic updates.

o In accordance with the Land Acquisition and Livelihood Restoration Plan (LALRP), an updated Asset Survey was undertaken of Lot 1 of the Access Road and compensation for the identified assets was paid to asset owners and completed in November 2019. A LALRP completion report prepared by the Project Office for the ABD was shared with the CFPs for review during this reporting period.

o The Tambu site were mapped by the Project Office local consultant and tribal members in accordance with the final

access road alignment in November 2019. The Project Office with SIG has negotiated two sites will be barricaded to minimize disturbance during construction. It was confirmed no sites are required to be removed. Reporting on these activities is included in the LALRP completion report. The Project Office is preparing a Cultural Heritage Management Plan.

o The results of the socio-economic baseline survey are being processed and finalized. The results will inform preparation

of the Social Impacts Monitoring Plan.

Implementation of the Grievance Redress Mechanism (GRM) The Project Office managed implementation of the GRM throughout this reporting period. The responsibility of the GRM will be transferred to THL in 2021 following clearance of the GRM Management Plan in December 2020. The following grievances were raised and processed by the Project Office and HEC during the implementation reporting period. THL did not record any grievances in the GRM. The Project Office is updating the Tina Hydro website (https://www.tina-hydro.com/) to include additional details of the project level GRM and include where appropriate information on GCF’s Independent Grievance Mechanism and the Accredited


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Entity’s Grievance Redress Service.

(i) description of issues/complaints received during the reporting period

(ii) status of addressing issues/complaints

Concerns related to quality of community water sources associated with potential impacts from UXO survey and clearance.

Water quality and monitoring is ongoing, and the Project Office and is actively supervising these activities.

Claims of trespassing and water pollution by survey team during topographic survey.

Resolved. Agreement for survey team to be accompanied by local community members. It was established the complaint of water pollution was due to survey equipment washed downstream during flash flooding. The equipment was collected and disposed by the survey team.

Complaint assets were not accounted for in LALRP asset survey.

Resolved. Agreement to compensate assets was reached.

Complaint that employment opportunities for semi-skilled and skilled are being awarded to non-residents of the project affected communities.

Partly resolved. Recruitment and training opportunities for local personnel is supported through CBSP.

Project posters and signs were destroyed or vandalized. Vehicles travelling at high speed in community areas causing dust and air pollution.

Resolved.

Reduction in monthly rental of access road diversion after valuation by Ministry of Lands, Housing and Survey.

Resolved.

Catchment area tribal landowners felt neglected and deprived of their rights to engage with SIG.

Resolved. The MMERE responded to the complaint. The project is supporting the development of an Upper Catchment Management Plan.

Dumping of waste on customary land Resolved. A new site was identified on non-customary land.

Claim for compensation for disturbance to a burial site

In progress.

Claim for compensation payment from HEC for trespass and illegal extraction of building material (gravel) without prior consent from owner.

In progress. Resolution of the matter is managed by HEC and the sub-contractor responsible for the sourcing aggregate.

Claim of unfair dismissal from former HEC employee.

In progress. Resolution of the matter is managed by HEC.

4.2 GENDER ACTION PLAN

Implementation of the GAP was impacted by the outbreak of COVID-19 with local curfews and restrictions on travel put in place early on during 2020. The following GAP activities were undertaken throughout 2020:

- Four Gender Steering Committee meetings were held during each quarter of 2020. The meetings agreed on the proposed GAP activities and workplan for 2021.

- Two monthly community consultations occurred in June and November 2020. The monthly meetings led to the establishment of women’s groups/associations (Mbahomea and Mbelaha).

- An awareness program – Awareness on You Save (financial savings) was conducted in June 2020 by the Solomon Islands National Provident Fund (SINPF). A total of 28 people attended comprising eight women and 19 men.

- A four-day Financial Literacy training was conducted in June 2020 where training was provided to both Tribal Cooperative Committee members and general community members. The training was conducted by by Solomon Islands Small Business Enterprise Center (SISBEC) associated with the Ministry Commercia, Industry, Labour and Migration.

- In August 2020, a second four-day training session on Financial Literacy was conducted for Mbahomea women and girls. The trainers were a group of women and men who attended the training in June 2020. There were a total 29 participants taught by 2 female trainers and three male trainers.


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- Mbahomea women successfully completed a four-day training in life skills building in October 2020. The women andgirls showed great interest across the four days with a continuously increasing number of participants, with the number of women increasing from sixty to ninety women by the second day of training. The Mbahomea women gained skills and knowledge in tailoring, tie dye and coral painting, cooking and floral art.

Progress on implementing the Gender Action Plan – Action Plan and Results Framework is set out against the table below. While some baseline values are known or have been established, several can only be established when the results of the socio-economic baseline survey are available and progress is made to implement activities of the CBSP project. Where baseline values are known these are included in the table below.

4.2.1 PROGRESS ON IMPLEMENTING THE PROJECT-LEVEL GENDER ACTION PLAN SUBMITTED WITH THE FUNDING PROPOSAL.

Activities/actions Indicators Baseline Targets, including sex-disaggregated

targets Budget

Report on annual progress

1.1 Where food gardens are lost as a result of the project, provide compensation in the way of a cash grant once a new garden has been replanted outside of the acquired land. Cash grants to be given to whomever is the primary person who works the land, regardless of gender

% of displaced gardens re-established with cash grant awarded to eligible householder (and % of those who are women)

92 N/A N/A Total number of displaced gardens re-established with cash grant awarded: 92. Female asset owners: 26 (28%). Male asset owners: 66 (72%).

1.2 Provide clean water access in project communities in advance of the Tina Hydro project commencing and afterward

Number of households in the project area with reliable, consistent access to safe, clean water.

% of households with clean water access within 100 meters

Number of households in the project area with reliable, consistent access to safe, clean water

% of households with clean water access within 100 meters

Target not yet defined

N/A Data not available until Component 2a (Water Supply) CBSP is implemented, which is anticipated to be provided to the Project-affected areas in mid-2021.

1.3 Provide access to grid-connected or other appropriate electricity generation technologies in advance of the Tina Hydro project commencing and afterward

% of households in the project area that have access to electricity

% of female-headed households with access.

% of households in the project area that have access to electricity

% of female headed households with access.


N/A Data not available until Component 2b (Rural Electrification) CBSP is implemented.

1.4 Construct access road for the project, which will reduce the time taken to access tertiary health care in Honiara.

Average transit time (minutes) from project area villages to Honiara

Average transit time (minutes) from villages in the project area to Honiara


N/A Data not yet available.

1.5 Allocate funding from the JSDF to

Number of patients seen

Number of patients seen


N/A Data not yet available until Component 2a


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improve water and sanitation facilities at the local clinic.

by local clinic (% of which female)

by local clinic (% of which female)

(Water Supply) CBSP is implemented in mid-2021, which will connect the local Konga clinic to a permanent borehole supply.

2.1 Offer financial management and budgeting training to i) tribal cooperative members ii) workers employed by the project, as well their spouses, and to women householders in the project area. Provide support to potential business ventures, including those set up by women, via a dedicated business support advisor for core land tribes

Number of participants who are able to successfully carry out the range of skills taught by the program (% of which females) Average income after the project (sex disaggregated)

0 Average income before the project (sex disaggregated)


N/A

Data not yet available Data not yet available.

2.2 Establish a bank account for every woman, man and child belonging to a coop, into which royalties and compensation monies will be received

% of eligible men, women and children who possess an individual bank account having been provided with financial literacy, management and equitable financial decision-making training/ guidance % of women who are satisfied with the way in which their individual account funds and those of their children are spent

% of eligible men, women and children who possess an individual bank account having been provided with financial literacy, management and equitable financial decision-making training/ guidance 0


N/A Number and percentage of eligible women, men and children who possess an individual bank account or trust fund: 1. Kochiabolo Tribe: Female: 48 (44%), Male: 60 (56%). 2. Buhugaro Tribe: Female: 33 (47%), Male: 37 (53%). 3. Uluna-Sutahuri Tribe: Female: 242 (46%), Male: 285 (54%). 4. Roha Tribe (still to verify / confirm data & information). 5. Vuralingi Tribe (still to obtain information / data). Eligible women and men (of the Tribal Coops, excluding children) that have been provided with financial literacy and management training: No. of women: 7 (70%). No of men: 3 (30%).


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2.3 Provide access road and hydropower plant construction related preemployment and/or business opportunity training to women who are interested, in particular women from the project area

Households with women who participate in preemployment or business opportunity training

0 Target not yet defined

N/A Data not yet available. The CBSP will be conducting Pre-Employment Training for women, men and youth in the Project-affected area.

3.1 Instigate a parallel women’s consultation program to visit communities at least once a month, headed up by a female community liaison officer. Use this as a space for women to gain confidence in articulating their views, with the goal of having them speak up more often in community wide meetings

% of people who feel that their priorities are reflected in the spending decisions for project revenues


N/A KPI not applicable until September 2024 as Project revenue (royalties) will only become available after the Commercial Operation Date.

3.2 Ensure all community members, including and especially women, have access to information and training sessions on hydro dam safety, construction issues and road and water safety awareness

Number of road safety features on the Tina access road % of women and men who agree that they feel fully informed about the road and the hydro dam, and understand their impacts

0 % of women and men who agree that they feel fully informed about the road and the hydro dam, and understand their impacts


N/A Data not yet available. Data not yet available.

3.3 Conduct gender sensitization trainings for men and women in affected communities to encourage men to create space and opportunity for women to participate

Number of male and female participants in training events % of women and men who agree that they feel able to participate in decision making at household and

0 % of women and men who agree that they feel able to participate in decision making at household and


N/A Awareness training on gender roles was conducted by Solomon Islands Planned Parenthood Association (SIPPA) in June with support and funding provided by HEC. Data not yet available.


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community level community level

3.4 Conduct training for both project communities (men, women and youth) and Project Company staff and contractors to protect women, in particular, from the potential negative effects of labor influx

% of households participating in training % of Project Company staff and contractors participating in training

0 0


N/A Data not yet available. Community Awareness Program: Awareness on HIV / AIDs and domestic violence. No. of women attendees: 7 (23%). No. of men attendees: 23 (77%). Awareness on alcohol, drugs, and gender roles. No. of women attendees: 7 (26%). No. of men attendees: 20 (74%). Data not yet available.

3.5 Include both women and men in delivering community education on the provision of electricity, including safety, productive uses of electricity in the home, and managing the household energy budgeting

% of training attendees who are female % of trainers who are female

0 0



Data not yet available.

3.6 Ensure there is female representation at leadership level in all key community level institutions including the Tribal Cooperatives, Governing Committees; the Community Liaison Committees (CLCs)

% of female representation in the Tina Core Land Company, Tribal Cooperative Governing Committees, and Benefit Sharing Fund Governing Committee/Board % of female leadership in CLCs

0 0


N/A TCLC: The TCLC has no women representatives (0%). TCCs: women reps make up 43% of members.

No CLCs are established or planned. Instead of forming CLCs, the PO has engaged CLAs (Community Liaison Assistants) since the start of the Project. Note that the CLAs are only engaged when


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required. Total no. of CLAs: 12 Number of female CLAs: 4 (33%). Number of male CLAs: 8 (67%).

3.7 Form all-women matrilineal membership committees for the tribal cooperative groups, with membership rights ascertained and inherited through traditional matrilineal principles

No. of coops established with all female membership committee


N/A Number of Tribal Coops established with all female membership: 0 (zero).

Notes: 1. Instead of forming matrilineal committees, the women of Mbahomea formed a women’s association in early January 2020. The name of the association is Mbahomea Zone 3 Women’s Association (MZ3WA). It consists of women from the Tribal Coops and general community. A second similar association, the Mbehala Women’s association was established in June 2020 but as of November 2020 has not been registered (under the SIG Company Haus). 2. The establishment of these groups are not linked to the Tribal Coops’ objectives but were initiated by the women themselves.

4.1 Appoint and train a gender focal point in the Project Office, responsible for liaising on gender issues between Project Office management, field staff, project monitoring unit, Tina subcommittee and other external stakeholders

% of the project’s social indicators that use sex disaggregated data % of project reports to the Bank that include gender analysis

0 0

Gender Focal Point appointed

N/A A Gender focal point is in appointed.

Total of six (6) GAP reports produced to date in 2020.

4.2 Provide basic gender awareness and analysis training to the dedicated gender officer (field

% of the project’s social indicators that use sex disaggregated data % of project

0 0

Conduct training on gender awareness


Data not yet available


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based) as well as those who will run the PO, in addition to training for Project Company staff (which should include familiarization with the GAP and their role in supporting its implementation)

reports to the Bank that include gender analysis.

4.3 Include responsibility for monitoring the GAP in the mandate of the Project sub- Committee convened by the MMERE. This committee will also include representatives from the MECDM; MWYCFA; World Bank; SIEA; Guadalcanal Provincial Administration; and THL

% of meetings of GAP steering committee taking place on a quarterly basis

0 100% N/A 75%

4.4 Conduct a household income and expenditure survey in the project area

Average income once the project is operational (sex disaggregated)

Average income before the project (sex disaggregated)


Data not yet available.

4.5 Amend the template used by the project field staff for recording consultations, to include 2 additional columns: i) number of women present and ii) concerns /questions raised by women

% and No. of women attending mixed sex Consultations % and No. of women attending women-only consultations No. of grievances raised, % of which resolved (sex disaggregated)

0 0 0

Template amended


Total grievances raised: 3. Total grievances resolved: 1 (33%) Grievances raised by men: 3 (100%) Grievances raised by men that were resolved: 1 (33%) Grievances raised by women: 0 Grievances raised by women that were resolved: 0


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4.3 PLANNED ACTIVITIES ON ENVIRONMENTAL AND SOCIAL SAFEGUARDS

Construction will be carried out in accordance with the ESIA, LALRP and GAP. Monitoring of compliance with the safeguard instruments will be carried out by THL and their Owner’s Engineer and the Project Office and the LTA including IESMA. THL will continue to prepare a quarterly safeguards report and submit to the Project Office. The Project Office will continue to prepare a consolidated quarterly report and submit the report to the World Bank. Separately, the LTA will provide quarterly audit reports on compliance with the safeguard’s requirements and conduct semi-annual monitoring. Implementation of the Grievance Redress Mechanism will be continued throughout 2021.

4.4 PLANNED ACTIVITIES ON GENDER ELEMENTS

In addition to the quarterly GAP Steering Committee meetings, activities under the GAP will focus predominantly on community engagement and learning activities. Proposed activities include, ongoing monthly consultative groups for women and girls; basic awareness training on gender for women and men; skills building training for women; training and awareness raising on electricity and safety for women; nutrition awareness, food, safety and hygiene training; Gender Based Violence training and social protection awareness; and awareness on disability, youth and disability policy. Implementation on the Grievance Redress Mechanism will be continued throughout 2021.


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