During project preparation, Sri Lanka’s power sector was struggling to meet the demand for a reliable and affordable supply of electricity and improvements to the electricity transmission and distribution networks were much needed.
The World Risk Report 2012 ranked Tonga, a country of 176 islands and four island groups, second only to Vanuatu in terms of vulnerability to natural disasters. Natural disasters such as tropical cyclones and storm surges have been inflicting significant losses on Tonga’s economy while also depleting its cash reserves.
Yap state, with a population of 11,400 during project preparation, is one of the four states of the Federated States of Micronesia. In 2013, it was 100% dependent on imported diesel for power generation on the main island. Due to high diesel costs, power tariffs were high, and the Yap economy was vulnerable to fuel price shocks.
Reliable power supply is essential to enhancing the quality of life and good performance of the power sector and reliable electricity services are vital to promoting private sector investments to diversify the economy and achieve sustainable economic growth.
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