Tina Hydro on track to signing a development agreement in 2016

Tina River Hydro is on track for the signing of a power purchase agreement in 2016. This was confirmed by Hon. David Day Pacha, Minister responsible for Energy and Rural Electrification today in a brief update on the Project.

Hon. David Day Pacha

“Tina River Hydro is the single most important project for renewable energy in my portfolio, and I am pleased to confirm that timely progress is being made on the key work streams towards project implementation”.

“Technical workstreams are proceeding to schedule, with the final detailed design nearing completion, for submission to the Government in early March. There have been several engineering teams from the developer consortium in-country since December finalising detailed construction plans and methods.”

The Minister added that environmental and social impact studies completed in 2014 are being updated and reviewed, and that a study has been conducted to make sure that assets such as gardens and crops are properly identified with their owners, for the purposes of replacement.

Minister Pacha pointed out that all this work was proceeding to the aim of finalising a power purchase agreement between Solomon Power and Korean Water, the selected developer, in the latter half of this year. “This agreement will be the basis for construction to begin.”

Deputy Project Manager for Tina Hydro, Mr Fred Conning further confirmed that a tender for the detailed design of the 12 km access road to the site, has reached advanced stages of procurement, with two international firms shortlisted to provide full proposals.

Minister Pacha was supported in his comments by Minister of Lands Hon Moses Garu, who also contributed to the status update on the Tina Project.“My Ministry, cooperating together with the Ministry responsible for Energy, is following through with all government commitments signed up to under the Process Agreement finalised in July 2014.”

These include the setting up of tribal corporations to hold shares in the land acquired for the project, and the establishment of mechanisms to ensure that benefits flow to every member of the tribes concerned.

All compensation for the land acquired will be paid through these corporations to ensure good governance and fair sharing of benefits.

“Sadly, in the past, government payments for customary land do not reach the members of landowning tribes. We are carefully fulfilling all commitments signed to by the landowning tribes concerned, to make sure that all members receive benefits transparently,” Hon Garu reiterated.

Commenting on the update, Prime Minister Hon Manasseh Sogavare commended the careful preparations being conducted for the Tina Project, and especially the cross-ministry teamwork being displayed between Ministry of Lands Housing and Survey and Ministry of Mines, Energy and Rural Electrification.

“I must state that careful preparations are crucial to ensure the success of any project and on this note wish to commend all stakeholders participating in the implementation of this significant project, especially the Ministry of Lands, Housing and Survey and the Ministry of Mines, Energy and Rural Electrification for their foresight.

“As the head of the government, I am so pleased to note that this project is on track to signing a development agreement this year and furthermore I look forward to the accomplishment of this entire project in the not too distant future.”

Tina Hydro is projected to produce more than 80GWh or 80 million cash power units in an average year of rainfall.  Honiara’s demand in 2014 was approximately 75 million units.

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