Papua New Guinea: Community Water Transport Project

Sovereign Project | 34121-013 Status: Closed

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Project Name Community Water Transport Project
Project Number 34121-013
Country Papua New Guinea
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2079-PNG: Community Water Transport Project
Asian Development Fund US$ 19.01 million
Loan 8211-PNG: Community Water Transport Project
OPEC Fund for International Development US$ 4.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Transport - Water transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

Description of Outcome
Progress Toward Outcome Delays were experienced in the initiation of the Project. PIU was mobilized in early February 2008. All activities are now occurring at the planned rate of physical completion. The physical completion as of this date is approximately 81%.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

1. Under the project, the Department of Transport (DoT) has established a mechanism for a route franchise scheme. Four shipping franchise routes (Sepik River, Huon-Oro, New Britain and New Ireland) were operating in April 2011. However in May 2011, two routes Sepik River and Huon-Oro were suspended due to major damage to the vessel and due to operator not providing a back-up vessel within a reasonable time frame.

2. The DoT has established a Community Water Transport Trust Fund (CWTTF) to generate income for shipping subsidies and for financing construction, rehabilitation and maintenance of small water transport infrastructure. Community Development prgram underway to maximize synergies.

3. Rebidding of a contract package for 4 jetties and 2 pontoons in East Sepik Province is complete.The Government's National Executive Council (NEC) approved contract award in early September 2012 and contract was signed on 7 November, 2012. PNG Government is expected to fund the balance jetty program, possibly with additional donor funding.

4. The Government has approved the establishment of a Rural Transport Infrastructure Development Division (RTIDD) in June 2012. DoT is currently recruiting staff to these positions. The RTIDD will improve the governance of transport infrastructure and services to remote regions in PNG.

5. "Sea Safe" manual re-published in 2008. The parliament of PNG passed the Small Craft Act in June 2011. Nationwide radio communication coverage and search and rescue guidelines to be effective by 2012. The marine radio communication system installation is 99% completed.

6. 280 persons in target communities per franchise route provided with capacity development training to make use of increased water transport services provided by the project by end 2011.

Geographical Location Papua New Guinea

Safeguard Categories

Environment B
Involuntary Resettlement
Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Business Opportunities

Consulting Services

International and domestic consulting services will be required for (i) project administration, (ii) community development, (iii) small craft safety, and (iv) civil engineering and supervision. Consultant services will be engaged in accordance with the ADB's Guidelines on the Use of Consultants and other procedures acceptable to ADB for the selection of domestic consultants.

a. Project Administration.

The proposed Project will be administered by a PMU that will (i) program, administer, and coordinate daily project activities, manage contracts including those for consultants and contractors, convene the steering committee, liaise with other Governmental and outside agencies, (ii) develop and manage the community water transport shipping franchise routes; and support establishment and operation of CWTF and issue payment instructions for the water transport franchise subsidy from the investment income of the CWTF. Project administration and the Project Manager will be supported by international consulting expertise in the fields of project management, administration, procurement, and contract management, shipping and franchising, civil engineering of marine structures, maritime safety, search and rescue operations, financial market operations, and training. The Project administration is estimated to require about a total of 312 local and 113 international consultant person-months. Quality-based tender process is justified for the selection of these services due to the complexity of the terms of reference and amalgamation of skills requirements within the team.

b. Community Development.

The community development will require international and local consulting expertise in the fields of (i) community development and entrepreneurial training, (ii) community health and distance education, (iii) rural income generation, and (iv) community awareness and communication strategies. These consultants will launch innovative community schemes for in the marginalized and vulnerable communities affected by the proposed Project and pilot outreach activities in micro-business, health, and capacity building for these communities to benefit from economic advancement opportunities opening to these communities with the improved water transport services and manage the proposed JFPR-project. Community development is estimated to require about a total of 108 local and 40 international consultant person-months.

c. Small Craft Safety.

The small craft safety component will require international and local consulting expertise in the fields of public administration of small craft, small craft safety equipment and policing, radio networks, public information dissemination, and development of school curriculum on sea safety. Sea safety is estimated to require about a total of 100 local and 50 international consultant person-months.

d. Civil Engineering.

The pre-construction activities for the small water transport infrastructure restoration require international consulting expertise in the fields of marine civil engineering, civil works, and contract management. These consultants will support the preparation of detailed specifications for the civil works contracts, contract documents, base-line benefit monitoring indicators, tender processes, and supervise the works. Civil engineering is estimated to require about a total of 40 local and 20 international consultant person-months.

Procurement The proceeds of the loan will finance (i) a fund that will be invested in the international capital markets; (ii) staff retrenchment; (iii) minimum subsidy tenders for community transport services; (iv) restoration of small water transport infrastructure; (v) communication equipment; and (vi) local competitive bidding (LCB) for office facilities of MSA. These will be awarded through international and local competitive bidding in accordance with ADB's Guidelines for Procurement.

Responsible Staff

Responsible ADB Officer Muhammad Ingratubun
Responsible ADB Department Pacific Department
Responsible ADB Division Papua New Guinea Resident Mission
Executing Agencies
Department of Transport
Mr. Robert Kaul
PMU, Department of Transport, PO Box 1489, Port Moresby


Concept Clearance 08 Mar 2001
Fact Finding 12 Mar 2002 to 25 Mar 2002
MRM 16 May 2002
Approval -
Last Review Mission -
PDS Creation Date 01 Dec 2006
Last PDS Update 21 Mar 2013

Loan 2079-PNG

Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Mar 2004 31 May 2004 23 Nov 2004 30 Jun 2012 30 Jun 2013 20 Jan 2014
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 24.14 Cumulative Contract Awards
ADB 19.01 25 Mar 2004 19.10 0.00 100%
Counterpart 5.14 Cumulative Disbursements
Cofinancing 0.00 25 Mar 2004 19.10 0.00 100%

Loan 8211-PNG

Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Dec 2003 02 Sep 2004 01 Dec 2004 30 Apr 2009 30 Jun 2013 30 Jun 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4.00 Cumulative Contract Awards
ADB 0.00 03 Dec 2003 0.00 3.71 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 4.00 03 Dec 2003 0.00 3.71 100%
Title Document Type Document Date
Community Water Transport Project: Project Completion Report Project/Program Completion Reports Aug 2014
Community Water Transport Project Project Procurement-Related Reviews Feb 2010
Community Water Transport Project: Summary Initial Poverty and Social Assessment Initial Poverty and Social Analysis Aug 2004
Community Water Transport Project Reports and Recommendations of the President Feb 2004
Community Water Transport Project Technical Assistance Reports Jan 2001

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Papua New Guinea: Community Water Transport Project Validations of Project Completion Reports Jul 2015

Related Publications

None currently available.

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