| Project Detail |
Project Name Energy Security Project (additional financing)
Project Number 49450-026
Country Marshall Islands
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0817-RMI: Energy Security Project (additional financing)
Asian Development Fund US$ 7.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector
Energy / Energy utility services
Gender Equity and Mainstreaming Some gender elements
Description The grant to the Republic of the Marshall Islands for the additional financing of the Energy Security Project will enhance the objective of increased energy security. It will be financed under the facility and supports the implementation of the management action plan to improve the performance of the MEC. Further, it will increase the resilience of MECs energy business and support the initial steps of the national roadmap to reduce electricity sector emissions by 65% by 2030.
Project Rationale and Linkage to Country/Regional Strategy The Marshall Islands depends heavily on external assistance, with an average 60% of gross domestic product being provided through annual grants. Most grants are provided through the Compact of Free Association (COFA), with the United States and have a built-in annual step down, which may be extended beyond the expected closing of 2023. Unemployment is high and human development indicators are generally low; income distribution is quite uneven and there is considerable poverty in the outer atolls. Economic growth over fiscal year (FY) 2015 to FY2020 was supported by strong fisheries output and the resumption of infrastructure projects connected with the COFA. The Marshall Islands has been impacted by the coronavirus disease (COVID-19) pandemic, particularly in the fisheries and transport.
Impact The overall project is aligned with the following impacts: (i) energy security for the Marshall Islands improved; and (ii) safety, environmental, and disaster risks associated with handling and storage of refined petroleum products and electricity reduced.
Project Outcome
Description of Outcome Safe, reliable operation of the Majuro fuel tank farm sustained and delivery of electricity in Majuro improved.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Majuro tank farm rehabilitated.
Majuro tank farm O&M program instituted.
MEC corporate capacity enhanced.
Disaster resilience of the energy sector improved.
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer George, Len V.
Responsible ADB Department Pacific Department
Responsible ADB Division PAEN
Executing Agencies
Ministry of Finance
JLO.ALFRED2016@GMAIL.COM
P.O. Box D, Majuro
MH 96960
Republic of the Marshall Islands
Ministry of Finance
P.O. Box D, Majuro
MH 96960
Republic of the Marshall Islands |
