The hydropower project will help Solomon Islands to reduce it's dependence on imported diesel by almost 70 percent
Image: IFC supports hydropower project in Solomon Islands. Photo: Courtesy of soukmano/Pixabay
The International Finance Corporation (IFC) has announced the completion of a $200m financing agreement with the Government of Solomon Islands to build the 15MW Tina River Hydropower Project.
The Tina River Hydropower Project is expected to bring down Solomon Islands’ reliance on imported diesel by nearly 70%, apart from lowering the prices of electricity. The project is expected to help the country to bring gown greenhouse gas emissions by two and half times its 2025 target.
Total cost of Tina River hydropower project is $240m
The renewable energy generated from the project is expected to be cheaper in comparison to the imported diesel, enabling Solomon Power, the country’s state-owned electricity supplier, in delivering cheaper power to Honiara.
The total project cost is expected to be $240m over the next 5 years.
The financing package for the project, includes loans and grants from six institutions and is considered to the first large-scale infrastructure project in Solomon Islands to be developed under a public-private partnership (PPP).
Institutions that have provided the financial package include World Bank’s International Development Association (IDA), the Green Climate Fund (GCF) the Republic of Korea’s Economic Development Cooperation Fund (EDCF), the Abu Dhabi Fund for Development (ADFD), the Asian Development Bank (ADB), and the Australian Government.
Tina Hydropower (THL), the project company formed by Korea Water Resources Corporation (K-water) and Hyundai Engineering Company (HEC), will build and operate the hydropower facility on Tina River, 20km southeast of the country’s capital Honiara.
Solomon Islands Prime Minister Manasseh Sogavare said: “The Tina River Hydro is an historic project for Solomon Islands. It will deliver cheaper power to Solomon Islanders and signals to investors that Solomon Islands is ready for large projects and partnerships.
“This first public private partnership infrastructure project in Solomon Islands opens the door for more, which will support much needed development, offering Solomon Islanders a better standard of living and more opportunities.”