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Home Business BANKS

Renewable Electricity to Solomon Islands

by The FINANCIAL
December 6, 2018
in BANKS
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Renewable Electricity to Solomon Islands

Solomon Islands Electricity Authority

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The FINANCIAL — 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.

People in Solomon Islands pay among the highest prices in the world for electricity, placing huge strains on families and businesses. The Tina River Hydropower 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.

The five agreements signed are the culmination of over 10 years of preparatory work and three years of negotiations between the Solomon Islands Government, including the state-owned power utility Solomon Power and the private developers of the project, Korea Water Resources Corporation (K-water) and Hyundai Engineering Corporation (HEC). The International Finance Corporation (IFC), a member of the World Bank Group, is transaction adviser to the government of Solomon Islands.

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Tina River Hydropower Development Project 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.

Since it was first considered by the Solomon Islands Government in 2006, the World Bank Group has supported the Tina River Hydropower Project, including through IFC’s transaction advisory support during project preparation and commercial negotiations. The Multilateral Investment Guarantee Agency, also a member of the World Bank Group, is expected to provide equity political risk insurance cover to the sponsors.

 

 

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