ADB

The Asian Development Bank (ADB) and the governments of Tonga and Australia today commissioned the Vava’u hybrid mini-grid as part of the cofinanced Tonga Renewable Energy Project. The new grid, which is cofinanced by the Green Climate Fund, will provide clean, reliable, and efficient electricity supply to the people and businesses of Vava’u.

Tonga Deputy Prime Minister Samiu Kiuta Vaipulu led the event together with Australian High Commissioner for Tonga Rachael Moore. The ceremony involved a plaque unveiling and site inspections.

The seismic episode occurred on 15 January with the eruption of the undersea volcano Hunga Tonga-Hunga Ha'apai, some 65 kilometers north of the capital Nuku’alofa, triggering a tsunami which destroyed parts of Tonga and was felt as far away as Alaska, Japan, and South America.

The total financing of $13.3 million comes from ADB’s Asia Pacific Disaster Response Fund and comprises $1 million for the Cook Islands; $1.5 million for Kiribati; $630,000 for the Republic of the Marshall Islands (RMI); $1.03 million for the Federated States of Micronesia (FSM); $1 million for Palau; $3 million for Papua New Guinea; $1.5 million for Samoa; $1.5 million for Solomon Islands; $630,000 for Tuvalu; and $1.5 million for Vanuatu.

The ADB's Pacific Urban Update 2020 report details a swathe of urban infrastructure projects that are planned or under way across the region.

ADB Pacific urban division director Jingmin Huang said the report showed how the bank was partnering with island governments, private sector and donor partners.

"And also, this report is very good to help us better understand our position in urban development and then based on that it would help to guide our future development direction," she said.

The grant will also help improve the country’s business climate with policy, regulatory, and public enterprise reforms.

“The Building Macroeconomic Resilience Program for Tonga has shown that budget support can achieve results if there is strong government ownership,” said ADB Principal Economist for the Pacific Ms. Ananya Basu. “A coordinated approach across development partners is key to the program’s success to date.”

The financial assistance will help strengthen Samoa, Tonga, and Tuvalu’s resilience to disasters.

ADB’s assistance will include loans worth US$3.1 million each to Samoa and Tonga. It will also include grants worth US$2.9 million each to Samoa and Tonga and $3 million to Tuvalu. All three grants are financed from the Asian Development Fund, ADB’s grant-based development financing vehicle. An ADB-supported US$2 million technical assistance grant will help the three countries implement priority resilience building activities and share their experiences. 

RNZ reports SOE portfolios in eight Pacific countries examined contribute only 1.8% to 12% of gross domestic product, despite having very large asset bases, ongoing government cash transfers, and monopoly market positions.

The ADB said productivity levels of the SOEs were also well below that found in developed countries.

But the Bank noted some successes in pursuing commercially-oriented reforms.

It said that over the past 14 years Solomon Islands has improved significantly, with Tonga also doing better.

Samiuela T. Tukuafu will lead ADB operations in Cambodia to support the country’s development goals of promoting inclusive growth and diversifying the economy.

But the report by the Asian Development Bank also shows the region is not doing enough to capitalise on the rapid expansion of its Asian neighbours.

Emma Veve is the Director of the ADB's Pacific Department and she says Pacific countries must do more to encourage innovation and generate wealth.

“ADB’s energy operations in the Pacific aim to boost energy security, support low-carbon growth and help expand access to modern energy services,” said Michael Trainor, Energy Specialist in ADB’s Pacific Department.

“Our energy policy rests on promoting energy efficiency, renewable energy, capacity building, and energy sector reform.”