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The Asian Development Bank and the Vanuatu government are extending their work on renewable energy projects for the islands of Malekula and Espiritu Santo.
The Vanuatu Energy Access Project will help build a 400-kilowatt hydropower plant and extend the two islands' electricity grids to deliver sustainable, affordable power.
The latest funding of 7.2 million dollars will be used to upgrade power distribution networks from a single wire to a three-phase system.
This will prevent the need for future upgrades when demand increases and will deliver safer power due to an improved fault detection mechanism.
The project began in 2017 with 15 million dollars of funding from the development bank, the Strategic Climate Fund, and the Vanuatu Government.