The Engineering Procurement and Construction (EPC) contract for the Tina River Hydropower Project has been signed between Tina Hydro Power Ltd (THL) and Hyundai Engineering Company Ltd (HEC) on the 30 September 2019 in Honiara, Solomon Islands.
The Engineering Procurement and Construction (EPC) contract for the Tina River Hydropower Project has been signed between Tina Hydro Power Ltd (THL) and Hyundai Engineering Company Ltd (HEC) on the 30th of September 2019 in Honiara, Solomon Islands.
This is the latest key signing which follows the signing of the On-lending Agreement between THL and the Ministry of Finance and Treasury (MOFT), the Asian Development Bank (ADB) financing agreement signed between MOFT and the ADB, and the ADB Project Agreement signed between THL and the ADB on September 27 in Sydney. The signing of the ADB financing agreement confirms a commitment of US$30M to the Project. The ADB now joins the Abu Dhabi Fund for Development (ADFD), the Australian Government (DFAT), Green Climate Fund (GCF), and the Korean EXIM Economic Development Cooperation Fund (EDCF), all of whom have committed financing to the Project alongside the World Bank Group.
The Tina River Hydropower Project is a high priority project for the Solomon Islands Government, with the project representing the first national building infrastructure project that has been developed through a Public Private Partnership approach.
Minister for Finance & Treasury, Hon. Harry Kuma, was joined for the signing by officials from Korea Water Resources Corporation and Hyundai Engineering Company, shareholders in THL, together with the World Bank and its sister organization, the International Finance Corporation (IFC) – both members of the World Bank Group – and the Asian Development Bank.
In his remarks Minister Kuma said “Tina River Hydro is a project rooted in our history with branches that will grow into our future”. “The signing of these agreements today will further enhance the Public Private Partnership that the Solomon Islands government is adapting for the financing of the Tina River Hydro Project; the first such arrangement for infrastructure development in the Solomon Islands”.
Meanwhile, Hon. Bradley Tovosia, Minister of Mines and Energy thanked all donors for supporting this national project. “The Tina Hydro Project has been in the making for some time and the signing of the EPC today and the other crucial agreement last week are milestone achievements for this national Project. We share the joy of this achievement with all our donor partners”
The planned Tina River Hydropower Project, when up and running, is expected to significantly reduce the cost of electricity for Solomon Islanders. It is also expected to dramatically reduce Solomon Islands’ greenhouse gas emissions – and cut Solomon Islands’ reliance on expensive diesel petrol for energy in favor of clean, renewable sources. It is expected to shift Honiara’s grid from 3% renewable energy in 2017 to 68% at the time the project is commissioned; expected in 2024.
Construction of the access road to the Tina River Hydro site is expected to begin in early 2020.