The Government of Solomon Islands and the International Finance Corporation have signed a financing agreement for the Tina River Hydropower Project.
The 15MWt Tina River Hydropower Project will curb Solomon Islands’ reliance on imported diesel by almost 70%.
Solomon islands is one of the regions where the price of electricity is among the highest in the world and heavily exposed to global fuel price fluctuations and shocks.
The project will also pave the way for the country to reduce its greenhouse gas emissions by two and half times its 2025 target.
The financing package for the project, worth over S$200 million, through loans and grants from six institutions, marks the first large-scale infrastructure project for Solomon Islands to be developed as a public-private partnership.
“The Tina River Hydro is an historic project for Solomon Islands,” said Hon. Manasseh Sogavare, Prime Minister of Solomon Islands. “It will deliver cheaper power to Solomon Islanders and signals to investors that Solomon Islands is ready for large projects and partnerships. 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, a subsidiary of Korea Water Resources Corporation and Hyundai Engineering Company, will build and operate the hydropower facility.
“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,” said Dr. Jaeil Ryoo, Tina Hydropower Limited, Chief Executive Officer. “Private companies have the capital and expertise to help make large projects like this a reality. We look forward to starting construction soon.”
The financial package for the Tina River project includes funding from 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