The assistance package includes a $6m loan and a $6m grant.
A project agreement has also been signed by Solomon Islands Electricity Authority.
ADB Vice-President Lakshmi Venkatachalam said the Fiu River Hydropower Plant will almost completely displace diesel generation in Auki.
"In achieving this, the project will deliver more reliable and cleaner power to Auki and at the same time boost the local economy," Venkatachalam added.
The project will assist in installing hydropower generation for the Solomon Islands Electricity Authority in order to replace diesel generation in the third-largest load center in Solomon Islands while extending the distribution grid to peri-urban households.
Implemented by the Solomon Islands Electricity Authority, the Solomon Islands Provincial renewable energy project will construct the Fiu River Hydropower Plant near Auki, Malaita, and extend the existing power grid to new households.
Through Solomon Islands Electricity Authority, the Solomon Islands Government is contributing $3m equivalent.
