Solomon Islands

                             Tina River Hydropower Development Project

                                               June 20, 2017

                                             Chair Summary*

         Executive Directors approved an IDA credit in the amount of US$23.375 million equivalent and
an IDA grant in the amount of SDR7.480 million (US$10.255 million equivalent) to Solomon Islands for
the Tina River Hydropower Development Project (IDA/R2017-0192), on the terms and conditions set out
in the President’s Memorandum, including the waiver.

         Directors expressed broad support for the Project and appreciated its potential to significantly
increase the share of renewable energy and reduce greenhouse gas emissions. Directors also noted the
expected contribution to addressing Solomon Islands’ reliance on imported fuel for electricity generation,
its high tariff and the low electrification rate. Directors acknowledged that while the cost of the project is
high, they recognized the high cost environment common to small island countries, and the expected
outcome of tariff reduction and increased electrification.

         As an example of the Infrastructure Cascade and in line with the Small States Roadmap, Directors
welcomed the World Bank Group collaboration to facilitate private sector participation and leverage co-
financing from development partners. Given the complex implementation and financing arrangements,
Directors encouraged the Bank to continue taking the lead to coordinate the project activities. They urged
the Bank to strengthen institutional capacity and mitigate social and environmental risks. They recognized
the risks and uncertainty regarding the large set of implementing entities, partners, and co-financing, and
called for strong collaboration among stakeholders and exploration of mitigating plans for alternative
financing. Finally, they encouraged strong support in monitoring implementation and evaluating the
results of the project.




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*This summary is not an approved record.