Papua New Guinea: Lae Port Development Project

Sovereign Project | 40037-013

Summary

The objective of the Project is to expand the cargo handling capacity of Lae port, improve the livelihood of those directly or indirectly affected, and reduce the incidence of HIV/AIDS in Lae.

Latest Project Documents

Consulting Notices

See also: CMS

No notices are currently available for this project.

Procurement Notices

See also: Operational Procurement

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Procurement Documents

Title Document Date
Proposed Loans Nov 2007

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Project Name Lae Port Development Project
Project Number 40037-013
Country Papua New Guinea
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2398-PNG: Lae Port Development Project
Ordinary capital resources US$ 60.00 million
Loan 2399-PNG: Lae Port Development Project
Asian Development Fund US$ 40.00 million
Loan 8237-PNG: Lae Port Development Project
OPEC Fund for International Development US$ 6.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Transport - Water transport (non-urban)
Gender Equity and Mainstreaming Gender equity
Description The objective of the Project is to expand the cargo handling capacity of Lae port, improve the livelihood of those directly or indirectly affected, and reduce the incidence of HIV/AIDS in Lae.
Project Rationale and Linkage to Country/Regional Strategy

Ports have been important in the logistic chain for international trade. They are particularly critical for an island economy like Papua New Guinea (PNG), which depends greatly on exports. Lae port is PNG's largest, busiest, and single most important port. It is a gateway linking the world market with a large hinterland--half of the territory--where about half of the population lives.

Since 1995, Lae port has witnessed an average annual increase in cargo of 131,000 tons, with containerized cargo growing at more than 5% per year and general cargo at 2.5%. In 2005, the volume of cargo through Lae port reached 2.4 million revenue tons, stretching Lae port to the limit of its capacity. Frequent congestion at the port imposes high costs on its users and hampers both international and domestic trade. The situation is expected to worsen, as the country's economic prospects remain strong and the hinterland of Lae port is experiencing a boom in development.

Instead of simply improving the port, the Project will build new facilities, for three reasons: (i) the terminal area at the existing port is not large enough for efficient operations; (ii) the existing berths are built on a steep foreshore with increasing threat of geotechnical instability, heightening the financial risks of any port improvement project; and (iii) opportunities to extend the existing berths are limited, whereas the Project allows additional berths to be built at relatively low marginal cost.

ADB's country strategy and program for PNG (2006-2010) supports the Government's development goals, strategies, and priorities stated in the Medium-Term Development Strategy (MTDS) for 2005-2010 and focuses ADB's interventions on 4 strategic areas: (i) public financial management, (ii) private sector development, (iii) transport, and (iv) health and HIV/AIDS.

Impact The Project is expected to catalyze industrial and commercial development and promote trade for PNG.
Project Outcome
Description of Outcome Bottleneck constraining trade is relieved
Progress Toward Outcome To be assessed after Project completion.
Implementation Progress
Description of Project Outputs

1. New port facilities are operational.

2. Livelihood of directly and indirectly affected people is improved.

3. To minimize the risk of new HIV infections and it includes a program of support for effective and sustainable response to the AIDS epidemic in Lae.

Status of Implementation Progress (Outputs, Activities, and Issues)

1. NEW PORT FACILITIES ARE OPERATIONAL

(I) CONSTRUCTION SUPERVISION CONSULTANCY:

The recruitment and evaluation of the contract for construction supervision by international consultants is completed. The government's National Executive Council approved the awarding of contract to the first ranked firm on 7 July 2011. The contract was signed on 29 Dec 2011 and consultants mobilised in late March 2012. As at end Dec. 12, they have mobilised 60% of their staff.

(II) CIVIL WORKS-PORT FACILITIES: The major civil works involving dredging and the construction of the wharf and the terminal facilities was grouped into one contract package to attract international bidders. Bids were issued on 19 Jan 2011 and closed 21 April 2011. The EA awarded the contract (K734 million) on 26 March 2012 to China Habour Engineering Company Ltd. The contractor China Habour Engineering Company Limited have mobilised to site and the ground breaking ceremony was held on 18 June 2012. Currently five dredging vessels are on site carrying out dredging works after ADB's clearance on the Contractor's Construction Environmental Management Plan. The current progress on the the civil works is, clearing/grubbing is at 77% complete, dredging is at 55% complete, while reclammation works is 20% completed.

As at 31 January 2013, overall completion rate of 25% was achieved and work is still progressing. The actual progress on the civil work activities is approximately two months ahead of schedule.

2. LIVELIHOOD OF DIRECTLY AND INDIRECTLY AFFECTED PEOPLE IS IMPROVED

There is good progress in the Social Infrastructure and Services component, where the Morobe Provincial Administration is currently undertaking procurement for improving the remaining four schools and four health facilities. Five out of eleven schools have been completed while two schools and four out of eight health facilities are under construction. The affected people's children are now attending these improved schools and the other children are also enjoying the benefits with the affected children.

Bris Kanda a local NGO has been contracted and is currently implementing this activity since March 2012. The project implementation activities were delayed due to change in key personnel from the Bris Kanda Inc and the national elections.

3. TO MINIMIZE THE RISK OF NEW HIV INFECTIONS AND IT INCLUDES A PROGRAM OF SUPPORT FOR EFFECTIVE AND SUSTAINABLE RESPONSE TO THE AIDS EPIDEMIC IN LAE.

The Lae Chamber of Comerce Inc. (LCCI) a community based organisation was engaged to carry out activities under this component. The LCCI has a consulting team who undertakes various programs including, peer educators' training and HIV&AIDS awareness and awareness on gender-based violence. The program is well received by the participants.

Geographical Location Lae City, Morobe Province, Papua New Guinea
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
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 national consultants will (i) support the PMU in port engineering and contract management, financial management, resettlement, and socioeconomic monitoring; (ii) supervise construction and monitor the environment; and (iii) undertake resettlement and livelihood and social improvement activities. The consultants will be hired according to ADB's Guidelines on the Use of Consultants. They will be selected through QCBS, individual consultant selection, consultants' qualifications selection, or other methods as appropriate. A total of 729 person-months of consulting services, including 291 person-months international and 438 person-months national are budgeted for these purposes.
Procurement The procurement of civil works will follow ADB's Procurement Guidelines (2007, as amended from time to time). The major civil works, involving dredging, berth, and terminal construction, will be grouped into one contract package to be awarded through one-stage, one-envelope international competitive bidding with prequalification. For the resettlement and livelihood improvement activities, which will involve contracts of various sizes for works, national competitive bidding and shopping will be used as appropriate.
Responsible ADB Officer Muhammad Amir Ingratubun
Responsible ADB Department Pacific Department
Responsible ADB Division Papua New Guinea Resident Mission
Executing Agencies
Independent Public Business Corporation(IPBC)Mr. Thomas AbeLevel 4 Pacific Place corner Musgrave St. and Champion Parade, Port Moresby, PNG
Timetable
Concept Clearance 22 Sep 2005
Fact Finding 12 Mar 2007 to 03 Apr 2007
MRM 17 Aug 2007
Approval 18 Dec 2007
Last Review Mission -
PDS Creation Date 17 Oct 2008
Last PDS Update 21 Mar 2013

Grant 0102-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Dec 2007 18 Dec 2007 18 Dec 2007 30 Jun 2012 31 Dec 2014 25 Feb 2015
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.00 Cumulative Contract Awards
ADB 0.00 18 Dec 2007 0.00 0.65 86%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 18 Dec 2007 0.00 0.65 86%

Loan 2398-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Dec 2007 12 Jun 2008 30 Oct 2008 30 Jun 2012 31 Mar 2015 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 105.75 Cumulative Contract Awards
ADB 60.00 18 Dec 2007 57.11 0.00 95%
Counterpart 45.75 Cumulative Disbursements
Cofinancing 0.00 18 Dec 2007 50.60 0.00 84%

Loan 2399-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Dec 2007 12 Jun 2008 30 Oct 2008 30 Jun 2012 31 Mar 2015 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 40.00 Cumulative Contract Awards
ADB 40.00 18 Dec 2007 38.42 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 18 Dec 2007 38.42 0.00 100%

Loan 8237-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Dec 2007 04 Nov 2008 07 Jan 2009 30 Jun 2012 30 Jun 2014 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 6.00 Cumulative Contract Awards
ADB 0.00 04 Dec 2007 0.00 6.03 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 6.00 04 Dec 2007 0.00 6.00 100%

Evaluation Documents

See also: Independent Evaluation

No documents found.


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