Work Shop for Potential Hydro Power Project Begins

Solomon Islands Government

Tina River Hydro Power Development Office

Ministry of Mines Energy and Rural Electrification

Work Shop for Potential Hydro Power Project Begins

HONIARA 28/9/2010- A workshop regarding the Tina River Hydropower Development Project (TRHDP) has opened today in Honiara. The Undersecretary for Mines, Energy and Rural Electrification Caroline Taisau opened the three day workshop which will run until Thursday September 30.

The workshop, which is being held by the Tina River Project Office (a part of the Ministry of Mines, Energy, and Rural Electrification), is being held to discuss a potential hydropower project on the Tina River. The project, which is in early planning stages, would decrease the price, and increase the reliability, of electricity in Honiara.

The cost of electricity in Honiara is amongst the most expensive in the world at approximately US$0.55 per kilowatt hour. Unreliable power supply has affected the operations of schools, hospitals, health clinics, and businesses around the capital. A potential hydropower project could address such problems.

Energy in Solomon Islands currently relies on costly imported diesel, which drives up the price. Hydropower is a lower cost alternative to diesel generation and a reduction of diesel imports (which account for 30 percent of all imports) will help the overall health of the Solomon Islands’ economy.

The Undersecretary said at the opening of the workshop “the development of hydropower will allow Solomon Islands to make use of one of our most abundant resources – water – to generate electricity. This is why the government is determined that a hydropower project on the Tina River would be an important source of cheaper, more reliable energy for Solomon Islands.”

During the workshop, the MMERE’s Tina River Hydropower Development Project office will present the findings of the Phase 1 feasibility study that was recently completed. The feasibility study report has outlined a number of potential sites along the Tina River where a hydro project could be undertaken. It is hoped that through the workshop, one of these locations can be decided upon. After this decision, the second and last phase of the feasibility study will focus on the preferred location.

The workshop will facilitate coordinated planning, action, and decisions across the whole of government. This is essential for the project, which covers issues such as land owner consultations and negotiations, environmental assessments and permits, and financing arrangements.

The Solomon Islands Government (through the Tina River Task Force and Project Office) is coordinating the project. The government is also being assisted by Australia, the World Bank, IFC, and the European Investment Bank who are providing technical assistance and funding towards the Project. The project will be financed, built and operated by a private energy company (an Independent Power Producer or IPP) that will be selected by the government.

People attending the workshop include officials from relevant government ministries, the Tina River Landowner Council, the Solomon Islands Electricity Authority, and officials from the World Bank, the International Finance Corporation (IFC, an arm of the World Bank Group), European Investment Bank, Australia, and other development partners.

ENDS

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