MIGA issues guarantee on Tina River hydro project

MIGA has issued a $14.094 million guarantee covering the equity and future earnings of the 15MW Tina River Hydro project in the Solomon Islands. The multilateral will provide 90% cover on the investments of joint sponsors K-water and Hyundai Engineering. The guarantees provide protection against currency inconvertibility and transfer restriction, expropriation, breach of contract, and war and civil disturbance.

The total project cost is $240.8 million, and has primarily been funded by concessional loans and grants from DFIs. The scheme is expected to be operational in five years and has a 30-year PPA with the state-owned power utility Solomon Islands Electricity authority. The project will be the first utility-scale hydro to be developed in the Solomon Islands.