Papua New Guinea: Highlands Region Road Improvement Investment Program - Project 1

Sovereign Project | 40173-023 Status: Active

Summary

ADB is helping Papua New Guinea build and manage a sustainable road system in the five provinces of the remote Highlands region. The investment program will focus on the region’s core road network of around 1,400 kilometers of major national and provincial roads. The first project under the program includes roads in Enga and Southern Highlands provinces.

Latest Project Documents

Consulting Notices See also: CMS

No notices are currently available for this project.

Procurement Notices See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents

None currently available.


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Project Name Highlands Region Road Improvement Investment Program - Project 1
Project Number 40173-023
Country Papua New Guinea
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2496-PNG: Highlands Region Road Improvement Investment Program - Project 1
Asian Development Fund US$ 71.20 million
Loan 2497-PNG: Highlands Region Road Improvement Investment Program - Project 1
Asian Development Fund US$ 28.80 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Transport - Road transport (non-urban)

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

Project Outcome

Description of Outcome
Progress Toward Outcome

ADB approved second loan extension of 12 months to new loan closing date of 30 June 2016.

Both civil work contracts completed in October 2015.

New Project Director commenced on 09 Feb 2015. Former PD promoted to higher position within DOW.

DOW engaged the socioeconomic impact study consultant (FinnOC) in May and consultant mobilized and commenced asignment. Currently, the consultant is undertaking surveys along communities within the two road sections.

DOW completed contract negotiations and signed contract with successful firm (FinnOC).

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

1. Two civil works contract with total road length of 115kms (Laiagam-Porgera and Mendi-Kandep) were signed on 09 February 2012. Both contracts were physically completed in October 2015.

2. Yet to start.

3. To be assessed after road improvements.

For Project 2, 3 civil works contracts with total road length of 118kms were awarded in 2015.

4. Ongoing. Approx. 4.6% of HCRN awarded and commenced implementation starting in Y2012. These roads were completed on October 2015.

5. NTDP (2011-2020) Approved and launched in July 2013.

Geographical Location Papua New Guinea

Summary of Environmental and Social Aspects

Environmental Aspects Climate change may lead to higher rainfall, so roadside drainage will need to be carefully designed. Low traffic volumes mean that vehicle emissions will be minimal. All five roads under Project 1 include improvements within the existing road corridor. No road sections are located in or pass through any protected areas or ecologically sensitve environment. The environmental impacts of road during construction and operation have been assessed, and can be mitigated to acceptable levels
Involuntary Resettlement A resettlement framework has been reviewed by the PNG Government to establish the policies and procedures for payment of compensation or lost or damaged assets. The land acquisition impacts, where they occur, will be minor. There will be no displacement of housing and the affected people will experience only small losses of crops, trees, fences or other secondary structures. Short resettlement plans have been prepared for Project 1 roads and these will be updated based on detailed engneering designs during loan implementation.
Indigenous Peoples The resettlement framework and plans will address specific actions favorable to indigenous peoples, if necessary, in dealing with the customary land acquisition.
Stakeholder Communication, Participation, and Consultation
During Project Design An extensive program of consultation has taken place. At the inception stage, a stakeholder analysis was carried out to identify the primary and secondary stakeholders; their interests in the proposed project, their perceptions of current problems related to road accessibility, mobility and transport services; and, the resources they could bring to the achievement of the goals and objectives of the project. Meetings have been held at the national level with DOW, Ministry of Transport (MOT), NRA, Department of National Planning and Monitoring (DNPM), Department of Land and Physical Planning (DLPP), Department of Community Development (DCD), National Aids Council (NAC) and National Council of Women (NCW); relevant development partners and international organizations such as Australian Aid for International Development (AusAID), UNDP, UNICEF, WHO, Population Services International (PSI), CAREAustralia); and consultants engaged in ADB, AusAID and other donor-funded projects relevant to the Program. Provincial and district authorities in Enga and Southern Highlands provinces have been actively consulted including provincial and district administrators; national and provincial works departments; provincial community development, health and education advisors; provincial AIDS Councils; and, provincial and district women's networks. Other regional stakeholders that have been met with include civil work contractors, trucking companies and representatives of major development enclaves in the Highlands region, e.g., Porgera JV and Oil Search. These provincial, district and regional stakeholders participated in consultation workshops held in the provinces along with other local stakeholders including representatives of the community sector (local NGOs, health institutions, radio stations, etc.) and the private sector (local business houses, bus/truck drivers, etc.). Along each road section, the views of the local population have been sought through surveys of households, market sellers, trade store owners, road users and vehicle operators, as well a program of community consultations and focus groups with village women.
During Project Implementation The government through the Dept of Works is coordinating and working closely with other key depts and lined agencies for a smooth implementation of the Project subprojects. The provincial authoirites (provincial governments and administrations) in the Project affected provinces, together with important provincial stakeholders are part of the project steering committee (PSC). The PSC meets every quarter to address and resolve issues related to the Project. The HRMG comprising staff of the DoW and consultants supervise and communicate directly with the contractor and roadside communities to maintain subprojects implementation progress.

Business Opportunities

Consulting Services

Consulting services will be required for Investment Program implementation support and capacity development. Key tasks include (i) design of road improvement works; (ii) preparation of bid documents, procurement support, and supervision of road improvement and long-term maintenance contracts; (iii) Investment Program performance management; (iv) preparation of subsequent projects; (v) capacity development; and (vi) socio economic monitoring. The capacity development component will involve the strengthening of HRMG, establishment of PIU in NRA, financial/road maintenance contracting/road user charges for NRA, and road safety for NRSC.

Project 1 will require a total of 1,266 person-months (362 international and 904 national) of services from consulting firms. Additional consulting services, if necessary, will be procured under subsequent projects. The consulting services will be financed from the ADB loans. DOW will select and engage the consultants in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time) using the quality- and cost-based selection method.

Procurement All ADB-financed procurement for goods and services will be carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). International competitive bidding procedures will be followed for all contracts over $3 million for civil works and $0.5 million for goods. National competitive bidding will be used for contracts under these thresholds. Shopping can be used for goods with contract values lower than $100,000, as appropriate. Contracts have been packaged to attract international contractors as well as promote the national contractors.

Responsible Staff

Responsible ADB Officer David Hill
Responsible ADB Department Pacific Department
Responsible ADB Division Papua New Guinea Resident Mission
Executing Agencies
Department of Works
Joel Luma
PO Box 1108, Boroko, NCD, Papua New Guinea

Timetable

Concept Clearance -
Fact Finding -
MRM -
Approval -
Last Review Mission -
PDS Creation Date 27 Jan 2010
Last PDS Update 31 Mar 2016

Loan 2496-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Dec 2008 19 Feb 2009 18 May 2009 30 Jun 2013 30 Jun 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 71.20 Cumulative Contract Awards
ADB 71.20 22 Dec 2008 70.48 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 22 Dec 2008 68.63 0.00 97%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 2497-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Dec 2008 19 Feb 2009 18 May 2009 30 Jun 2013 30 Jun 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 28.80 Cumulative Contract Awards
ADB 28.80 22 Dec 2008 28.14 0.00 97%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 22 Dec 2008 28.93 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

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.

Title Document Type Document Date
Highlands Region Road Improvement Investment Program, Project 1 - Laiagam-Porgera Road: Resettlement Monitoring Report (January-December 2015) Social Monitoring Reports Mar 2016
Highlands Region Road Improvement Investment Program, Project 1 - Mendi-Kandep Road: Resettlement Monitoring Report (January-December 2015) Social Monitoring Reports Mar 2016
Highlands Region Road Improvement Investment Program - Project 1: Resettlement Monitoring Report for the Rehabilitation of the Mendi-Kandep Road Social Monitoring Reports Jan 2015
Highlands Region Road Improvement Investment Program, Project 1 - Laiagam-Porgera Road: Resettlement Monitoring Report (November 2014) Social Monitoring Reports Nov 2014
Highlands Region Road Improvement Investment Program, Project 1 - Mendi-Kandep Road: Resettlement Monitoring Report (November 2014) Social Monitoring Reports Nov 2014
Highlands Region Road Improvement Investment Program - Project 1: Resettlement Monitoring Report for the Rehabilitation of the Laiagam to Porgera Road Social Monitoring Reports Nov 2014
Highlands Region Road Improvement Investment Program - Project 1: Laiagam-Porgera Road Section Resettlement Plans Nov 2013
Highlands Region Road Improvement Investment Program - Project 1: Involuntary Resettlement Monitoring Report Social Monitoring Reports May 2013
Highlands Region Road Improvement Investment Program - Project 1: Resettlement Action Plan for Mendi - Kandep Road Section Resettlement Planning Documents Mar 2013
Highlands Region Road Improvement Investment Program - Project 1, Mendi-Kandep Road: Environmental Monitoring Report (February 2013) Environmental Monitoring Reports Feb 2013
Highlands Region Road Improvement Investment Program - Project 1, Laiagam-Porgera Road: Environmental Monitoring Report (February 2013) Environmental Monitoring Reports Feb 2013

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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