Financing agreement for Tina River Hydro project announced

The government of the Solomon Islands yesterday announced the formal completion of a financing agreement for the Tina River Hydropower Development Project.

A statement from Tina Hydropower said this will see the Solomon Islands move from virtual total reliance on imported diesel to majority renewable energy that will significantly cut power costs and emissions. It marks the first large-scale infrastructure project for the Solomon Islands to be developed as a public-private partnership (PPP).

It says the financing package for the project is worth over US$200 million. This is provided 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.

During the occasion, Prime Minister Hon. Manasseh Sogavare said the Tina River Hydro Project will deliver cheaper power to Solomon Islanders and signals to investors that the Solomon Islands is ready for large projects and partnerships.

Meanwhile, Tina Hydropower Limited, Chief Executive Officer Dr. Jaeil Ryoo says, 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.

Dr. Ryoo says, he fully appreciates the support and cooperation of the government of the Solomon Islands and the Concessional financial institutions to successfully reach the financial close of the Project.