ADB, Australia to finance 1.25 MW of solar projects in Tonga

Jul 3, 2013 - The Asian Development Bank (ADB) and the government of Australia will provide financing for the construction of 1.25 MW solar power plants on nine islands in the Kingdom of Tonga, the Asian lender said Tuesday.

In a drive to help the country lower its dependence on diesel imports, ADB will extend a AUD-2-million (USD 1.8m/EUR 1.4m) loan from its concessional Asian Development Fund, while the Australian Agency for International Development will provide an AUD 4.5 million credit for the AUD-6.8-million project. The government of Tonga will also take part in the funding via an AUD-300,000 investment.

The photovoltaic (PV) systems will be tied to the local distribution grids on the islands, cutting diesel imports by 480,000 (127,000) litres annually.

The project will be managed by Tonga's Ministry of Finance and National Planning. It will be completed in six years, with the solar plants scheduled to start operations at the end of 2019.

Once operational, a team of consultants will offer management services to the facilities for a minimum of five years. Government-controlled Tonga Power Ltd and some private firms will manage the plants later on.

(AUD 1.0 = USD 0.906/EUR 0.699)

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