ADB is providing $5 million from its Asian Development Fund (ADF) for the grant, while the government of the FSM is contributing $500,000 in-kind support. ADF provides grants to ADB’s poorest and most vulnerable developing member countries.
The Asian Development Bank (ADB) has approved a $5 million grant to finance the preparation of ADB-supported clean energy projects in the Federated States of Micronesia (FSM). This move by ADB will fund assessments, planning, and capacity building to implement clean energy projects, including solar and hydro, and promote energy efficiency.
“The project readiness financing (PRF) will create an enabling environment for the introduction of innovative technology solutions and business models for clean energy projects. This will help resolve medium-term challenges, including reliable access to affordable electricity while accelerating the FSM’s clean energy transition,” said Len George, ADB principal energy specialist for the Pacific.
Each state in the FSM is served by a state-owned utility that generates, distributes, and supplies electricity. Some utilities also offer services including water, sewerage, and telecommunications. The decentralised structure imposes constraints on standardised design, procurement, and staff training that impact cost and service delivery.
The PRF will expedite the preparation of clean energy projects with cross-sectoral benefits, including access to drinking water through support for feasibility studies, engineering designs, and advance procurement; small-scale pilot-testing of relevant commercially deployable clean energy technologies; assistance with coordination for national clean energy investments and strengthening the capacity of utilities and key agencies in the energy sector.
The projects advanced under ADB’s PRF will contribute to the FSM’s Strategic Development Plan, 2004–2023 and will align with the FSM’s priorities of 100% electricity access and a shift toward clean energy sources.
Fibre2Fashion News Desk (DP)