that the Project would be about 30 percent less expensive if it were to use those rates. The second constraint is related to the site in which the Project is being developed including limited availability and high seasonal variation of hydrological resources, unavailability of favorable topography with natural head, complex geological conditions and active seismic activities. The final costs of Component 1, subject to finalization and signature of the PPA, are provided below in Table A1-4. Implementation schedule. The PPA, IA, GGA and SHA are expected to be signed by the end of October 2017. Immediately after the signing of these agreements, the PC will procure the EPC contractor. The indicative construction schedule presented by K-water, the main sponsor, is 39 months from mobilization of the EPC contractor. Based on the detailed technical and price proposal from the EPC contractor, the Project is expected to be commissioned at mid-2022. Table A1-4: Component 1 Cost Estimate (US$ million) Cost Category Cost A. EPC Cost1 1. Design and Documentation 5.16 2. General and Site Establishment 8.11 3. Diversion 5.67 4. RCC Dam 49.64 5. Intake Civil Works 10.59 6. Headrace Tunnel and Surge Shaft 35.16 7. Penstock 4.78 8. Powerhouse 6.20 9. Switchyard 0.96 10. Electro-mechanical Equipment 13.73 11. Taxes 3.82 Sub-Total (A) 143.82 B. Non-EPC Cost 1. Development Cost 20.72 2. Commitment fees 0.74 3. Contingency 16.40 4. Interest during Construction 3.98 Sub-Total (B) 41.84 Total (A+B) 185.66 1 EPC Cost based on submission in August 2016. EPC Cost is subject to price adjustments based on actual inflation rates since April 1, 2017. Source: Bank estimates. Dam safety. The PO will retain the DSAP until 1 year after commissioning of the HPF. The following plans have been prepared by the developer and reviewed by the Bank’s dam expert and the DSAP to ensure dam safety: Construction Supervision and Quality Assurance Plan Instrumentation Plan Operation & Maintenance Plan Emergency Preparedness Plan (EPP)
progress Few contractors/suppliers have experience in Solomon Islands (Component 3) Importance of Pre-bid Meetings/Site Visits Shared between PO, SIEA and the suppliers (market) Procurement Plan. A combined Procurement Plan has been prepared and agreed with the Bank. Procurement plan will be published through the Systematic Tracking of Exchanges in Procurement (STEP). Implementing agencies will update the procurement plan in agreement with the Bank annually or as required to reflect project implementation needs and improvements in institutional capacity and procurement risk. A summary of the procurement plan is as follows: Table A2-4: Procurement Plan (Accepted by the Bank on May 10, 2017) 1 2 3 4 5 6 7 No. Description of Contract Cost US$ ’000 Selection/ Method Review by Bank Expected Date Comments 1 BOOT Contracts for HPF and Access Roads 210,660 PPP Prior October 2017 2 Transmission Line (Tina River HPP – Lungga PS) 22.820 RFB Prior July 2020 3 Project Manager of PO (International) 262 INDV Prior August 2017 Cost estimated until 4 Administrator of PO (National) 75 INDV Post August 2017 as above 5 Safeguards and Stakeholder Manager of PO (International) 164 INDV Post August 2017 as above 6 Project Accountant 45 INDV Post August 2017 as above 7 Receptionist /Admin 10 INDV Post August 2017 as above 8 Environmental 36 INDV Post August as above )
Monitoring Officer 2017 9 Livelihood Restoration Officer (Only Yr 1 for road) 24 INDV Post August 2017 as above 10 Community Liaison Officer (male) 30 INDV Post August 2017 as above 11 Community Liaison Officer (female) 30 INDV Post August 2017 as above 12 Communications Officer 30 INDV Post August 2017 as above 13 DSAP Member - Geotechnical (International) 76 INDV Post August 2017 as above 14 DSAP Member - Dam (International) 76 INDV Post August 2017 as above 15 DSAP Member - (International) 76 INDV Post August 2017 as above 16 DSAP Member - Seismology (International) 76 INDV Post August 2017 as above 17 DSAP Member - (International) 8 INDV Post August 2017 as above 18 Teak Valuation 7 INDV Post August 2017 19 Independent Environmental and Social Monitoring Agent 60 NPO Post August 2017 Cost estimated until 20 Protected Area Agent 25 NPO Post August 2017 as above 21 Household Survey 50 CQS Post August 2017 as above 22 External Audit 15 CQS Post December 2018 Annually from 2018 CQS= Consultant’s Qualification Based Selection; INDV = Individual Consultant Selection; NPO = Organizations; PPP = Public Private Partnerships; RFB = Request for Bids;
Table A2-5: Roles and Responsibilities of Implementing Entities and Applicable Policies Entity Financing Key Responsibilities Safeguards Policies Procurement Policies Key Documents to be Prepared Policies Packages PC 1. HPF 2. Access Road Component 1 Debt: ADB grant and loan, EDCF loan, GCF loan, IDA grant and credit, IRENA/ADFD loan Equity: KW, HEC, ICSI (IDA credit) Component 2 APIP TF grant, GCF grant Comprising HEC and ICSI. Develop, construct and operate HPF and access road, and sell net available capacity to offtaker under PPA. World Bank OP/BP 4.03 (all PS applicable except PS 5) (World Bank OP/BP 4.37 as reference) ADB SPS Construction and Quality Assurance Plan Instrumentation Plan O&M Plan Emergency Preparedness Plan Stakeholder Engagement/ Communications Plan Health and Safety Plan Workers Code of Conduct Influx Management Plan Grievance Mechanism Biodiversity Management Plan Cultural Heritage Management Plan Construction ESMP Spill Prevention and Emergency Response Plan Reservoir Preparation Plan Operations ESMP World Bank Procurement Regulations for IPF Borrowers Sponsors consortium) through open process overseen by IFC. Negotiation ongoing. Selection process found to be substantially consistent with the Core Procurement Principles of the Bank’s New Procurement Framework. PC permitted to use its own procedures for procurement from eligible sources, including: EPC contractor O&M contractor Owner’s Engineer Various advisors Goods required for PC management Main sponsor, O&M contractor HEC Sponsor, EPC contractor ICSI Shareholder on behalf of SIG
SIEA 1. HPF 3. T-Line IDA credit, SIEA Component 1 : Offtaker under PPA Component 3: Design, construct and operate World Bank OP/BP 4.01, 4.04, 4.10, 4.11, 4.12, 4.36 Component 3 ESMP Resettlement Action Plan World Bank Procurement Regulations for IPF Borrowers Component 3 Transmission line construction PO on behalf of SIG 4. TA APIP TF grant, IDA grant, SIG Coordination across implement LALRP for Components 1 and 2; monitor implementation of Project’s ESMP, GAP; retain DSAP, E&S monitoring agent; facilitate discussion on protected area World Bank OP/BP 4.01, 4.12 (World Bank OP/BP 4.37 as reference) Monitor OP/BP 4.03 for Component 1 Cumulative Impact Management Strategy Decommissioning Plan* Retrenchment Plan* World Bank Procurement Regulations for IPF Borrowers Component 4 Various consulting services Goods BSM JSDF** Implementing community benefit share pilot under JSDF World Bank OP/BP 4.01, 4.04, 4.10, 4.11, 4.12 As per JSDF project (to be approved separately) World Bank Procurement Regulations for IPF Borrowers As per JSDF project (to be approved separately) * To be prepared by plant-owner one year before decommissioning. ** In the event JSDF funding does not materialize, SIG has agreed to seek alternative resources to implement the benefit-sharing mechanism during the construction period. ADB Asian Development Bank; APIP TF = Australia-Pacific Islands Partnership Trust Fund; BSM = benefit sharing mechanism; EDCF = Economic Development Cooperation Fund of Korea; EPC = engineering-procurement-construction; ESIA = environmental and social impact assessment; ESMP = environmental and social management plan; E&S = environmental and social; GAP = gender action plan; HEC = Hyundai Engineering Co., Ltd; HPF = hydropower facility; ICSI = Investment Corporation of Solomon Islands; IDA = International Development Association; IRENA/ADFD = International Renewable Energy Agency/Abu Dhabi Fund for Development; JSDF = Japan Social Development Fund; GCF = Green Climate Fund; K-water = Korea Water Resources Corporation; LALRP = land acquisition and
Team I Mr. Anthony Maxwell Asian Development Bank Principal Energy Specialist Mr. Kwang Hun Yu Korea Export-Import Bank/Economic Development and Cooperation Fund Director, Multilateral Development Banks Ms. Alexandra Hutchinson Department of Foreign Affairs and Trade, Australia First Secretary, Development Cooperation, Economic Infrastructure Mr. Juan Carlos Mendoza Green Climate Fund Director, Adaptation and Public Programs