THE
       WORLD
       BANK                     Solomon Islands
                                                                                                                                 93399
                                Sustainable Energy
                                Project


    Improving the cost, energy efficiency, reliability and sustainability of                                  Transform SIEA into a
                                                                                                              sustainable, efficient and
                electricity services across Solomon Islands.                                                  customer focused company.

Background                                                                                                    Improve asset maintenance to
The price of electricity in Solomon Islands remains one of the highest in the Pacific region at around 50     increase reliability.
US cents/kWh. The Solomon Islands Electricity Authority (SIEA) faces numerous challenges in
providing reliable, sustained electricity at a reasonable cost, including rising oil prices, accumulated      Improve energy efficiency,
                                                                                                              reduce diesel consumption and
arrears, and unevenly maintained generation and network infrastructure leading to frequent power
                                                                                                              reduce the cost of energy.
cuts across towns served by the SIEA. Access to reasonably priced, reliable energy is a vital element of
growth and, as such, this must be addressed. The diesel-fired generators that supply nearly all of the
country’s electricity are a major contributor of fossil fuel imports, accounting for around 30 percent of
Solomon Islands’ total imports—affecting the nation’s balance of payments situation.




                                                                                                              Location: Honiara, but with the
                                                                                                              impacts of the project to benefit
                                                                                                              all of SIEA’s customers.
About the Project
The objective of the Solomon Islands Sustainable Energy Program (SISEP) is to improve the
operational efficiency, system reliability and financial sustainability of the SIEA. This is to be achieved   Approval Date: 8 July 2008
through improved financial and operational management, improved energy efficiency and reduction
of electrical losses, improved generator and distribution network reliability, and increased revenue          Closing Date: 30 December 2012
collection. To assist the SIEA achieve these goals, SISEP is financing the strengthening of SIEA’s
                                                                                                              Total Project Cost: US$4.5
management, a commercialisation program to improve financial operations and collections, and a                million
range of steps that will keep the lights on by improving generator and network reliability. SIEA is in
charge of implementing the project, which is a key part in SIEA’s strategy to become a sustainable            Donors: Solomon Islands
business, providing reliable, efficient and affordable power to its customers.                                Government—US$0.5 million
                                                                                                              International Development
                                                                                                              Agency (IDA)—US$4 million
Measures are being carried out to improve SIEA’s financial situation. The Solomon Islands
Government financed a large scale debt restructuring in 2008, to clear debts owed to the SIEA by              Implementing Agency: Solomon
other state owned enterprises (SOEs) and gain commitment from SOEs to pay any future power bills              Islands Electricity Authority
in a timely manner. The SIEA’s commercialisation component aims to improve revenue collections.               (SIEA)
The program will also offer technical assistance and capacity building for SIEA’s Finance Department.
This capacity building effort will include the introduction of new billing systems, preparation for a
new finance accounting manual, and new staff training exercises. These actions will facilitate                      Contact: World Bank
improved operational practices and debt collection abilities.                                                          Team Leader

                                                                                                              Tendai Gregan
SISEP is focused on improving the reliability and power generation capability of SIEA. As such, the
                                                                                                              Energy Specialist
program has committed to support comprehensive rehabilitation, maintenance, and loss reduction                tgregan@worldbank.org
programs for SIEA’s generators. It will also offer technical assistance and training to engineering
services. Furthermore, SISEP is financing the switch to pre-paid electricity meters for most homes in
Honiara and other metering system upgrades to ensure billing accuracy and timely collections.
                                                                                                                  www.worldbank.org/pi