Solomon Islands secures funding for $240m Tina River hydropower project

WCN Editorial Team 17 Dec 2019 EUROPE ENERGY & UTILITIES

The Government of Solomon Islands has secured financing package worth more than $200m from the International Finance Corporation (IFC), a member of the World Bank, to support the construction of the 15MW Tina River hydropower project.

Tina Hydropower (THL), which was formed by Korea Water Resources Corporation (K-water) and Hyundai Engineering (HEC), is responsible for the construction and operation of the $240m Tina River hydropower project.

Construction on the project, on the Tina River, 20km southeast of the Honiara, is scheduled to commence in early 2020. Work is scheduled for completion in the next five years.

The project is expected to help Solomon Islands reduce the dependency on imported diesel for power generation by almost 70% while reducing power costs and emissions.

IFC said that the latest financing for the project is provided through loans and grants from six institutions.
Solomon Islands Prime Minister Manasseh Sogavare said: “The Tina River Hydro is an historic project for 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.”
Expected to reduce the country’s greenhouse gas emissions, the Tina River hydropower project will be developed as a public-private partnership (PPP).

Tina Hydropower 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.”

IFC East Asia and the Pacific regional director Vivek Pathak said: “With the support of Australia, New Zealand and the multi-donor facility, DevCo, the agreement now in place shows how governments and the private sector can work together on key infrastructure projects to help nations wanting cleaner, cheaper and more reliable energy for their people.”

Image: The hydro project will help Solomon Islands reduce its reliance on imported fossil fuels for energy. Photo: courtesy of Asian Development Bank.

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