ADB Approves $5 Million Grant to Develop Clean Energy Projects in FSM – EQ Mag
MANILA, PHILPPINES : The Asian Development Bank (ADB) has approved a $5 million grant to help fund the preparation of ADB-supported clean energy projects in the Federated States of Micronesia (FSM).
The grant will fund assessments, planning, and capacity building to promote energy efficiency and implement clean energy projects including solar and hydro. 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 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 ADB Principal Energy Specialist for the Pacific Len George.
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 decentralized structure imposes constraints on standardized 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.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
Source: adb
