Papua New Guinea: Highlands Region Road Improvement Investment Program - Project 2

Sovereign Project | 40173-043

Summary

The proposed Project 2 of the Program will contribute to establishing a sustainable road system in the Highlands region that will enable maximum use of its natural, mineral, and human resources. It will support the Government's objectives of (i) export-driven economic growth; (ii) rural development, and poverty reduction; (iii) good governance; and (iv) promotion of sustainable agriculture, forestry, fisheries and tourism. Project 2 has three components which include (i) transport infrastructure development, (ii) program support and capacity development, and (iii) program administration.

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Project Name Highlands Region Road Improvement Investment Program - Project 2
Project Number 40173-043
Country Papua New Guinea
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3076-PNG: Highlands Region Road Improvement Investment Program - Project 2
Asian Development Fund US$ 40.00 million
Loan 3077-PNG: Highlands Region Road Improvement Investment Program - Project 2
Ordinary capital resources US$ 69.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming Some gender elements
Description

The proposed Project 2 of the Program will contribute to establishing a sustainable road system in the Highlands region that will enable maximum use of its natural, mineral, and human resources. It will support the Government's objectives of (i) export-driven economic growth; (ii) rural development, and poverty reduction; (iii) good governance; and (iv) promotion of sustainable agriculture, forestry, fisheries and tourism. Project 2 has three components which include (i) transport infrastructure development, (ii) program support and capacity development, and (iii) program administration. The following outputs will achieve Project 2 components: (i) improvements to 118 km of priority national roads of the HCRN, with design considerations for all road users including pedestrians and public motor vehicles; (ii) maintenance arrangements for 500 km; (iii) improved capacity of the National Road Authority (NRA) to plan and manage long-term road maintenance contracts; (iv) more efficient Department of Works (DOW) capable of delivering road improvements with attention to safeguards capacity, and an established asset management system of the HCRN; and (v) improved road safety capacity of the National Road Safety Council (NRSC).

The DOW is the executing agency (EA) and the implementing agency (IA) for the road improvement works. The NRA is the IA for road maintenance. The Highlands Road Management Group (HRMG) is the DOW project implementation unit for the ongoing ADB loans. Based on lessons learned from Project 1 implementation, the unit will be strengthened under Project 2 specifically on safeguards and on-going monitoring and evaluation. HRMG will engage all consulting services and road improvement contracts under the Program. The NRA established a project implementation unit (PIU) consisting of key NRA staff and supported by Program consultants. A program steering committee (PSC) oversees implementation, monitors progress, approves roads for subsequent projects, and provides guidance to the executing and implementing agencies.

DOW has completed technical designs of civil works. Initial environmental examinations (IEEs) and resettlement plans (RPs) for all sub-projects have been prepared and cleared by DOW and ADB. The resettlement framework and the environmental frameworks have been updated for Project 2 based on lessons learned from Project 1. DOW has completed technical designs of civil works, as part of advance action.

Project Rationale and Linkage to Country/Regional Strategy

The periodic financing request (PFR)-2 request is for a loan amount of $109 million to finance Project 2 components which include (i) Transport infrastructure development, (ii) Investment program support and capacity development, and (iii) Program administration. The following outputs will achieve Project 2 components: (i) improvements to 118 km of priority national roads5 of the HCRN, with design considerations for all road users including pedestrians and public motor vehicles; (ii) maintenance arrangements for 500 km, including the 118 km mentioned above, of the HCRN; (iii) improved capacity of the National Road Authority (NRA) to plan and manage long-term road maintenance contracts; (iv) more efficient Department of Works (DOW) capable of delivering road improvements with attention to safeguards capacity, and an established asset management system of the HCRN; and (v) improved road safety capacity of the National Road Safety Council (NRSC).

Project-2 has been designed to meet targets set out for the overall program based on lessons learned from the implementation of Project 1, to achieve the sustainable transport goals of making transport more accessible and safe for all users of rural communities, by improving connecting rural roads and provision for public transport services, as outlined in governments recently approved NTS as well as ADBs Sustainable Transport Initiative (STI). The project will adopt STI approach to ensure road rehabilitation investments are sustainable through strengthened support on road maintenance financing.

Impact The proposed Project 2 of the Program will contribute to establishing a sustainable road system in the Highlands Region that will enable maximum use of its natural, mineral, and human resources
Project Outcome
Description of Outcome Improved accessibility and reduced transport cost in the areas served by Project 2 roads.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Improved core road network in Highlands region to national standards for all road users including

pedestrians

2. Sustainable maintenance arrangements for Highlands core road network

3. Improved capacity of NRA to plan and manage long-term road maintenance contracts

4. More efficient DOW capable of delivering road improvements

5. Improved road safety capacity of NRSC

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
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
Responsible ADB Officer Sarosh I. Khan
Responsible ADB Department Pacific Department
Responsible ADB Division Transport, Energy and Natural Resources Division, PARD
Executing Agencies
Department of WorksANNIGGINS@ONLINE.NET.PGP.O. Box 1108
Boroko, NCD
Papua New Guinea
Timetable
Concept Clearance -
Fact Finding -
MRM 09 Sep 2013
Approval 04 Dec 2013
Last Review Mission -
Last PDS Update 02 Oct 2013

Loan 3076-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Dec 2013 25 Feb 2014 16 Apr 2014 30 Jun 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 103.60 Cumulative Contract Awards
ADB 40.00 04 Dec 2013 0.00 0.00 0%
Counterpart 63.60 Cumulative Disbursements
Cofinancing 0.00 04 Dec 2013 0.00 0.00 0%

Loan 3077-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Dec 2013 25 Feb 2014 16 Apr 2014 30 Jun 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 69.00 Cumulative Contract Awards
ADB 69.00 04 Dec 2013 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 04 Dec 2013 0.11 0.00 0%

Evaluation Documents

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