ADB provides loan for 15-MW HPP in Solomon Islands

The Asian Development Bank (ADB) has agreed to provide a USD-18-million loan (EUR 16.4m) and a USD-12-million grant to contribute to the development of a 15-MW hydropower plant (HPP) in the Solomon Islands.

In addition to ADB, the project, to be built on the Tina River, enjoys financial support from the Australian government, the Green Climate Fund, Abu Dhabi Development Fund, Export-Import Bank of Korea and the World Bank Group.

ADB said Thursday that the Tina River project will be carried out under the build-operate-own-transfer scheme. Korea Water Resources Corporation, a South Korean government agency, and Hyundai Engineering Co Ltd will form a special project company to design, build, own, operate and manage the new power plant.

The Tina River HPP will be located near Solomon Islands’ capital city of Honiara. The project will allow the island nation to reduce its reliance on imported fossil fuels and increase the share of renewable power in the Honiara grid, ADB said.

(USD 1.0 = EUR 0.91)

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