Solomon Islands obtains funds for USD-240m hydro project

The government of Solomon Islands has secured a USD-200-million-plus (EUR 179.5m) financing agreement for the 15-MW Tina River Hydropower Project, it was announced today.

The International Finance Corporation (IFC) acted as lead transaction advisor on the deal, which includes the provision of a financing package comprised of loans and grants from the 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.

The financing allows for construction work on the project to begin early next year. Tina Hydropower Limited (THL), a company formed by Korea Water Resources Corporation (K-water) and Hyundai Engineering Company Ltd (HEC), will build the plant about 20 km southeast of the capital Honiara. The total cost is estimated at USD 240 million over a five-year period.

The project will help reduce Solomon Islands' reliance on imported diesel by nearly 70% and pave the way for the country to lower its greenhouse gas emissions by two and a half times its 2025 target.

(USD 1.0 = EUR 0.897)

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