The construction of the 400-kilowatt hydropower plant is part of the ADB-supported Vanuatu Energy Access Project (VEAP). Vanuatu’s Prime Minister Charlot Salwai and Minister for Climate Change Adaptation, Energy, Environment, Meteorology and Geohazards and Disaster Management Ralph Regenvanu led the ribbon-cutting and plaque unveiling ceremony. ADB Senior Country Officer Nancy Wells was present in the event.
The project constructs transmission and distribution lines that will help further connect more households to the grid and bring renewable energy from the hydropower plant to households in Malekula. About 22 kilometers of transmission lines in Malekula have been commissioned to help bring grid-quality electricity supply to previously underserved areas. VEAP aims to increase the island’s grid access from 8% to 14%.
The project began in 2017 with a $15.1 million funding from ADB’s ordinary capital resources, the Asian Development Fund (ADF), the Strategic Climate Fund, and the Government of Vanuatu. In 2021, ADB provided a $6 million grant through the ADF, which provides grants to ADB’s poorest and most vulnerable developing member countries. The government contributed another $1.2 million to upgrade the power distribution networks from a single wire to a three-phase system.