The Asian Development Bank (ADB) has provided $23.8m in funding to rehabilitate and construct hydropower plants on Samoan islands.
The funding is expected to boost hydro electricity in the region, by lowering the dependence on fossil fuels.
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The money will be used to rehabilitate three small hydropower plants on Upolu and construct three new hydropower plants on Upolu and Savai’i.
Of the total funding, around $10m has been sourced from ADB’s Asian Development Fund, an $8.21m grant from the DRF, and a $1m was provided by the Multi-Donor Clean Energy Fund, while the government of Samoa will contribute $4.6m.
The project, which is the first to make use of ADB’s Disaster Response Facility, is expected to save more than 3.6 million litres of diesel annually.
Commenting on the funding, ADB energy specialist and project team leader Paul Hattle said that fuel imports to power the country’s electrical grid cost about 10% of GDP each year.
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By GlobalData"Lowering Samoa’s reliance on fossil fuels will help free up government funds for other needs while improving national energy security and sustainability," added Hattle.
Around 60% of Samoa’s energy is currently being generated from diesel generators, with total fuel imports amounting to 95 million litres in 2012.
Image : Asian Development Bank (ADB) provides $23.8m in funding for hydropower sector in Samoa. Photo: Courtesy of ADB.
