Tina River Hydropower Plant

Active

Prospective

The project involves the investment, development, construction, operation and maintenance of 15 MW Tina River Hydropower Plant located on the Tina River, 20 kilometers southeast of Honiara, the capital city of the Solomon Islands. The project includes construction of a 15MW hydroelectric dam, entrance road and water conveyance tunnel. The SPV Tina Hydropower Ltd is established by Korea Water Resources Corporation (South Korean Government-owned agency) and Hyundai Engineering Corporation Limited. It will undertake the construction of the plant through a build-operate-own-transfer (BOT) scheme and sell electricity to the state-owned Solomon Islands Electricity Authority under a 30-year power purchase agreement. The Ministry of Finance and Treasury will be the executing agency and the Ministry of Mines, Energy, and Rural Electrification will be the implementing agency. The total project cost is $233.37 million. Debt-to-equity ratio is 95:5, with a $10.8 million equity investment from the sponsors and $17.07 contribution from the Government of Solomon Islands. Participants in the financing are Green Climate Fund with $70 million loan and $16 million grant; World Bank's International Development Association (IDA) with $21.5 million loan and $9.7 million grant; Abu Dhabi Fund for Development with $15 million loan; Asian Development Bank (ADB) with $18 million loan and $ 12 million grant; Korea Export Import Bank's Economic Development Cooperation Fund with $31.6 million loan; Government of Australia with $ 11.7 million grant. The sponsors have applied for MIGA guarantees of US$14.1 million. Financial close took place on 12 December 2019. The construction is expected to start in early 2020 and continue for a period of 54 months. The operational period is for 30 years after construction. https://www.adb.org/news/adb-partners-support-delivery-clean-and-reliable-electricity-solomon-islands https://www.adb.org/projects/50240-001/main#project-pds https://www.worldbank.org/en/news/press-release/2019/09/27/crucial-final-agreements-signed-as-tina-river-hydropower-project-moves-closer-to-construction-in-solomon-islands https://www.miga.org/project/tina-hydropower-limited https://ijglobal.com/articles/144556/update-financial-close-for-tina-river-hydro-in-solomon-islands https://ijglobal.com/data/transaction/22895?name=Tina%20River%20Hydropower%20Plant%20(15MW)&link=%2Farticles%2F144556%2Fupdate-financial-close-for-tina-river-hydro-in-solomon-islands

Energy

World Bank Group

Project

Commercial, Water Supply and Storage, Government, Hydro, Power Generation (CCGT), Road, Tunnel