Agreements signed for hydropower project in Solomon Islands
The World Bank Group has welcomed the signing of a series of key agreements which will help deliver cheaper and more reliable, renewable energy to Solomon Islands through the Tina River Hydropower Project.
The project aims to increase the amount of renewable energy in the Honiara national grid by nearly 70 percent while reducing reliance on expensive diesel power. The project will also pave the way for the country to exceed its 2025 greenhouse gas emissions reduction target by two and a half times. It is Solomon Island’s first large-scale infrastructure project to be developed as a public-private partnership in Solomon Islands and was designed to help lower electricity prices for consumers.
The agreements signed include the Power Purchase Agreement between Solomon Power and Tina Hydropower Limited, a partnership between K-water and HEC, and the Government Guarantee Agreement and Implementation Agreement between the Solomon Islands Government and Tina Hydropower Limited.
Agreements were also signed between the Solomon Islands Government and the World Bank for US$33.6 million in support to the project from the International Development Association. The Australian Government is providing an additional US$12.7 million in project funding as part of the Australia Pacific Islands Partnership (APIP).
In addition to the World Bank Group and Australian Government, financial support has been confirmed by the Abu Dhabi Fund for Development/International Renewable Energy Agency, the Green Climate Fund, and the Economic Development Cooperation Fund of Korea.
