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The proposed project will increase Fiji’s power generation capacity and reduce fuel costs by replacing oil-fired power with a new run-of-river hydro power plant. The project comprises a build, own and operate 38 MW hydropower plant and is part of a larger investment plan in which the Asian Development Bank (ADB) is financing the expansion of transmission and distribution facilities and the World Bank (WB) as well as the EIB (the Bank) will each be supporting individual generation projects.
The project is in line with European and Bank policy objectives to encourage renewable energy generation, where the environmental impacts are lower than fossil fuel supply alternatives. In addition, the project will facilitate the economic development of Fiji by ensuring a consistent power supply and by reducing reliance on highly priced imported fossil fuels. The project falls under the scope of the environmental and economic development goals of the Cotonou Mandate.
According to its technical characteristics the project falls under Annex II of Directive 97/11/EC on Environmental Impact Assessment (EIA) if located within the EU, leaving it to the competent national authority to determine the requirement for an EIA. The competent authority, the Department of Environment has granted all environmental approvals to allow the scheme to proceed.
The promoter has agreed to comply with the Bank’s procurement guidelines.