REPUBLIC OF VANUATU 

NATIONAL GREEN ENERGY FUND 

ACT NO. 10 OF 2018 

Arrangement of Sections 

PART 1PRELIMINARY MATTERS

1   Interpretation ................................................................................................ 3

2   Objectives of the Fund ................................................................................. 4

PART 2ESTABLISHMENT OF THE NATIONAL GREEN 

ENERGY FUND AND THE NATIONAL GREEN 

ENERGY FUND BOARD

PART 3THE NATIONAL GREEN ENERGY FUND 

MANAGER AND OTHER STAFF

PART 4 FINANCIAL PROVISIONS

19Source of Funds ......................................................................................... 15

20Bank Account ............................................................................................ 15

21Financial year, accounts and auditing ........................................................ 15

22Procurement procedures ............................................................................ 16

PART 5MISCELLANEOUS PROVISIONS

REPUBLIC OF VANUATU 

Assent:                       06/07/2018 

Commencement:         23/07/2018 

NATIONAL GREEN ENERGY FUND 

ACT NO. 10 OF 2018 

An Act to provide for the establishment of the National Green Energy Fund and for its related matters. 

Be it enacted by the President and Parliament as follows- 

PART 1        PRELIMINARY MATTERS 

1             Interpretation 

In this Act, unless a contrary intention appears: 

Auditor-General means the person appointed as the Auditor- General under Article 25(4) of the Constitution; 

banking business has the same meaning as in section 2 of the Financial Institutions Act [CAP 254]; 

Board means the National Green Energy Fund Board established under section 5; 

Director General means the Director General of the Ministry of Climate Change, Meteorology, Geo-Hazards, Environment and Energy; 

energy equipment and service provider means a business entity incorporated under the laws of Vanuatu and carrying on the business of manufacturing, importation, sale, installation or operation of sustainable energy product or equipment for purposes of providing energy services within the domestic markets; 

financial intermediary means: 

(a)          a financial institution; or 

(b)          a body corporate that does not operate a banking business but provides retail financial services including loans to its members, such as a pension fund, micro-finance institution or savings and loans cooperative; 

PART 1       PRELIMINARY MATTERS 

financial institution has the same meaning as defined under the Financial Institutions Act [CAP 254]; 

financial products means:

(a)           a loan; or 

(b)          a guarantee; or 

(c)          an equity; or 

(d)          a combination of any of the products under paragraphs (a), (b) and (c); 

Fund means the National Green Energy Fund established under section 2; 

Fund Manager means a person appointed as the National Green Energy Fund Manager under section 15; 

intermediaries means a financial intermediary and non-financial intermediary; 

Minister means the Minister responsible for Climate Change Adaptation, 

Meteorology, Geo-Hazards, Environment, Energy and Disaster Management; 

National Advisory Board means the National Advisory Board on Climate 

Change and Disaster Risk Reduction established under section 7 of the 

Meteorology, Geological Hazards and Climate Change Act No. 25 of 2016; 

National Energy Road Map (NERM) means the Updated Vanuatu National Energy Road Map 2016-2030, dated June 2016 or any of its subsequent amendments; 

non-financial intermediary means an energy equipment and service provider; 

staff means a person appointed by the Fund Manager under section 18 and includes any consultant or agent appointed by the Board under this Act. 

2             Objectives of the Fund 

The objectives of the Fund are: 

(a)       to support projects and activities aimed to achieve the objectives of the National Energy Road Map in providing accessible, affordable, secure and reliable and sustainable energy and Green growth; and 

PART 1       PRELIMINARY MATTERS 

(b)       to provide financial support and technical assistance to extend electricity access to a person using renewable energy sources and facilitate more efficient end-use of energy. 

PART 2        ESTABLISHMENT OF THE NATIONAL GREEN 

ENERGY FUND AND THE NATIONAL GREEN ENERGY FUND BOARD 

3             Establishment of the Fund 

(1)          The National Green Energy Fund is established. 

(2)          The Fund is: 

(a)          a body corporate with perpetual succession; and 

(b)          to have a common seal; and 

(c)          capable of suing and being sued. 

4             Functions of the Fund 

(1)          The Fund has the responsibility of accumulating its finances from different sources and disburses them as required under this Act for purposes of achieving its objectives under section 2. 

(2)          Without limiting subsection (1), the finances of the Fund may be distributed to a person as follows: 

(a)          through financial products offered by the Fund including but not limited to loans, guarantees or equity; or 

(b)          in the form of grants and subsidies to fund specific projects including technical assistance or subsidize a specific person. 

5             Establishment of the National Green Energy Fund Board  

(1)          The National Green Energy Fund Board is established. 

(2)          The Board consists of the following members: 

(a)          the Director General; and 

(b)          the Director of the Department of Energy; and 

(c)          the Director of the Department of Finance and Treasury; and 

(d)          the Director of the Department of Provincial Affairs; and 

(e)          the Director of the Department of Strategic Planning, Policy and 

Aid Coordination; and 

(f)           a senior representative of the Department of Women’s Affairs 

(who must be a woman) nominated by the Director of the Department of Women’s affairs; and 

(g)          1 representative of the Civil Society Organizations nominated by the National Advisory Board. 

(3)          The Minister is to appoint in writing, persons referred to under paragraphs (2)(f) and (g). 

(4)          Persons appointed under paragraphs 2(f) and (g) are to hold office for a period of 3 years and may be reappointed. 

(5)          The Board may invite any person including a donor to attend a meeting of the Board and to advise the Board on any matter before the Board. 

(6)          If a member of the Board under paragraphs (2)(f) and (g) is absent for more than 3 consecutive meetings without a valid reason approved by the Board, the member of the Board is taken to have vacated his or her office. 

(7)          The Minister must appoint another person to replace a member of the Board vacating his or her office under subsection (6). 

6             Functions of the Board 

(1)          The Board is responsible for the efficient and proper management and control of the monies of the Fund. 

(2)          Without limiting subsection (1), the Board has the following functions: 

(a)          to approve the following documents of the Fund which are to be prepared by the Fund Manager: (i)     strategy plan; and 

(ii)         annual budget; and 

(iii)        annual implementation plan; and 

(iv)        annual report on the operations of the Fund; and 

(v)          any donor report; and 

(vi)        organizational structure of the Fund; and 

(b)          to approve the Operations Manual of the Fund which must be consistent with this Act and which will specify the following matters: 

                       (i)        the eligibility criteria of: 

(A)        a financial intermediary entering into an            agreement with the Fund for purposes of          offering financial products to a person; and 

(B)         sustainable energy equipments and technologies            provided by a service provider; and 

(iii)        the project selection and prioritization criteria; and 

(iv)        the Funds interest rate structure in respect to loans, types of financial products, criteria for their selection and their terms and conditions; and 

(v)          the technical assistance for capacity building of the staff of the Fund and potential recipients such as intermediaries and community groups, on project preparations; and 

(c)          to advise on any matter for purposes of meeting the objectives of the Fund; and 

(d)          to carry out any other act that is necessary or required to be carried out for the purposes of this Act. 

7             Powers of the Board 

(1)          The Board has the power to do all things that are necessary or convenient to be done for or in connection with the performance of its functions. 

(2)          Without limiting subsection (1), the Board may enter into an agreement with all or any of the following persons: 

(a)          a donor that is providing funding to the Fund;  

(b)          a financial intermediary on financial products offered by the Fund; 

(c)          an energy equipment or service provider on sustainable technologies and equipments offered by the provider; 

(d)          technical advisors delivering technical assistance or services to any person on matters relating to the Fund; 

(e)          development partners on cost-sharing and co-financing related matters; 

(f)           any other person for purposes of carrying out the functions of the Board. 

8             Chairperson and Deputy Chairperson 

(1)          The Director General is the Chairperson of the Board. 

(2)          The Director of the Department of Energy is the Deputy Chairperson of the Board. 

9             Meetings of the Board  

(1)          The Board is to meet at least once a month on the request of the Chairperson and at such other times as is necessary for the proper performance of the functions of the Board.  

(2)          The Chairperson of the Board is to preside at all meetings of the Board and in his or her absence, the Deputy Chairperson is to preside at these meetings. 

(3)          The quorum of the Board is 4 members of the Board present at the meeting. 

(4)          A member present at a meeting of the Board has one vote and questions arising at a meeting are to be decided by a majority of votes. 

(5)          If the voting at the meeting is equal, the Chairperson or the Deputy Chairperson (if he or she presiding at the meeting) has a casting vote. 

(6)          To avoid doubt, the person invited by the Board under subsection 5(5) has no right to vote in any meeting of the Board. 

(7)          Subsect to this Act, the Board may determine and regulate its own procedures. 

10          Authorization to attend meeting 

A member of the Board may authorize a senior officer from his or her Ministry, Department, agency or organization to attend a meeting on his or her behalf. 

11          Sitting Allowance 

(1)          The members of the Board including the Chairperson and the Deputy Chairperson are entitled to a sitting allowance of not more than VT5,000 for each day in which the Board sits for a meeting. 

(2)          The Minister is to prescribe by Order the amount of the sitting allowance. 

12          Disclosure of interest 

(1)          A member of the Board who has any direct or indirect personal or financial interest on any matter before the Board must declare his or her interest in the matter. 

(2)          A disclosure under subsection (1) is to be recorded in the minutes of the meeting of the Board and the member of the Board must not: 

(a)          be present during any deliberation at a Board meeting with respect to that matter; or 

(b)          take part in any deliberations or vote at a meeting of the Board with respect to that matter. 

(3)          A member of the Board who contravenes this section, commits an offence punishable on conviction by a fine not exceeding VT1,000,000 or imprisonment for a term not exceeding 12 months, or both. 

13          Secretary of the Board 

(1)          The Fund Manager is the Secretary of the Board. 

(2)          The Secretary of the Board has the following functions: 

(a)          to convene meetings of the Board at the request of the Chairperson; and 

(b)          to prepare and circulate agendas and issue papers for meetings of the Board; and 

(c)          to take minutes of meetings and circulate them at least 3 weeks after each meeting; and 

(d)          to keep records of all minutes of the meetings; and 

(e)          to coordinate and facilitate the implementation of the decisions of the Board; and 

(f)           to coordinate the presentation of monitoring reports on the implementation of decisions of previous meetings of the Board; and 

(g)          to ensure that meetings are held according to the approved schedule of the meetings; and 

(h)          to mobilise appropriate resources for the efficient implementation of all decisions of the Board; and 

(i)           to prepare annual work programmes of the Board; and 

(j)           such other functions that are conferred on the Secretary by this Act or any other Act. 

(3)          To avoid doubt, the Secretary has no voting rights at a meeting of the Board. 

14          Other Committees 

(1)          The Board may establish other committees to assist the Board in carrying out its functions under this Act. 

(2)          The Board is to determine the functions and procedures of the other committees. 

(3)          The establishment of other committees under subsections (1) are to be published in the Gazette. 

PART 3       THE NATIONAL GREEN ENERGY FUND MANAGER AND OTHER STAFF 

15          Appointment of Fund Manager 

(1)          The Board is to appoint a National Green Energy Fund Manager on such  terms and conditions as may be determined by the Board. 

(2)          The appointment of the Fund Manager must be made through a competitive selection process and must be based on merit. 

(3)          The Fund Manager is to hold office for a period of 3 years and may be reappointed. 

16          Functions of the Fund Manager 

(1)          The Fund Manager is responsible to the Board for all operations of the Fund including the effective implementation of the Board’s decisions on matters relating to the Fund. 

(2)          Without limiting subsection (1), the Fund Manager has the following functions: 

(a)          to assist to identify other sources of funding for the Fund; and 

(b)          to identify investment project opportunities and partner intermediaries; and 

(c)          to identify a financial product with an intermediary; and 

(d)          to negotiate terms and conditions of investment agreements; and 

(e)          to monitor investment performance and whenever necessary conduct on site visits for project inspections to a person and gather relevant information; and 

(f)           to negotiate terms and conditions of technical assistance and grant agreements; and 

(g)          to develop monitoring and evaluation logical frameworks and data collection systems for reporting key performance indicators; and 

(h)          to coordinate and manage external consultants; and 

(i)           to manage marketing activities and public relations; and 

(j)           to deposit any money collected on behalf of the Fund to a bank account designated by the Ministry of Finance and Economic Management under section 20; and 

(k)          to produce 6 monthly or annual reports on National Green Energy 

Fund developments; and 

(l)           such other functions as may be specified by this Act. 

17          Disqualification for appointment 

A person is disqualified from being appointed as the Fund Manager if the person: 

(a)          is or becomes a member of Parliament; or 

(b)          is or becomes a member of a Provincial Government Council or a 

Municipal Council; or 

(c)          is bankrupt or has made an arrangement in the nature of composition or assignment with his or her creditors; or 

(d)          is a public servant appointed under the Public Service Act [CAP 246]; or 

(e)          has been convicted of an offence and sentenced to a term of imprisonment of 12 months or more, whether or not it is a suspended sentence. 

18          Appointment of other Staff 

(1)          The Fund Manager may, with the prior approval of the Board, employ any staff of the Fund as he or she considers necessary for the proper and efficient performance of the functions of the Fund. 

(2)          The Fund Manager may, with the approval of the Board, delegate any functions or powers of the Fund Manager to a staff of the Fund. 

(3)          The Board is to determine the terms and conditions of the employment of the staff of the Fund. 

(4)          The appointment of a staff must be in accordance with the staff manual and must follow a fair and transparent selection process and must be based on merit.

(5)          The Fund Manager is to prepare the staff manual of the Fund. The staff manual must be presented to the Board by the Fund Manager, for approval.

(6)          The Fund Manager may, according to the disciplinary procedures set out in the staff manual,  suspend or dismiss a staff of the Fund.