The national government on Monday announced the formal completion of a financing agreement for the Tina River Hydropower Development Project, which will see the country move from virtual total reliance on imported diesel to majority renewable energy that will significantly cut power costs and emissions.
The financing package for the project, worth over US$200 million, through loans and grant from 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, marks the first large-scale infrastructure project for Solomon Islands to be developed as a public-private partnership (PPP).
“The Tina River Hydro is an historic project for Solomon Islands,” Prime Minister Manasseh Sogavare said.
“It will deliver cheaper power to Solomon Islanders and signals to investors that the country is ready for large projects and partnerships,” he added.
“This first public private partnership infrastructure project in Solomon Islands opens the door for more, which will support much needed development, offering Solomon Islanders a better standard of living and more opportunities.”
Tina Hydropower Limited, Chief Executive Officer Dr Jaeil Ryoo said:
“The Tina River Hydropower Development Project is expected to create at least 440 jobs during the construction phase, which is also of benefit to the economy of Solomon Islands.
“I fully appreciate the support and cooperation of the government of Solomon Islands and the Concessional financial institutions to successfully reach the financial close of the Project.
“We look forward to starting construction soon.”
Tina Hydropower Limited (THL), the special project company, formed by Korea Water Resources Corporation (K-water) and Hyundai Engineering Company Ltd. (HEC) will build and operate the hydropower facility on the Tina River for 35 years, 20 kilometers southeast of the capital, Honiara.