The Tina River Hydropower Development Project sponsored by K-water and Hyundai Engineering Corporation has reached US$240 million financial close in the Solomon Islands.
Six financing organizations have financed the project through a combination of loans and grants; with a final cost for building the hydropower dam and station estimated at US$184 million. The total project cost is expected to reach US$240 million over the next 5 years.
The World Bank Group has been supporting the government of the Solomon Islands on the project for more than 10 years. IFC, a sister organization of the World Bank and member of the World Bank Group, helped put in place the public-private partnership with project preparation, the investor selection process, negotiation of project agreements and the final financing agreement package.
With equipment already arriving on the docks and construction on the immediate horizon, the Solomon Island Government has entrusted the project build to K Water, the Korean government’s water resources company who are experts in constructing and managing hydropower projects. Their first task is to commence the construction of the access road, worth US$26 million, in late January 2020.
The project is set to be completed and operational by 2024.