Papua New Guinea: Preparing the Town Electrification Project (formerly Power Sector Development Project)

Sovereign Project | 41504-012

Summary

This TA aims to increase availability of reliable and sustainable power supply at reasonable cost by designing a power sector development project that is agreed between the Government of Papua New Guinea (PNG) and ADB. TA outputs include the (i) updated least-cost power sector development plan, (ii) preliminary design and costing of prioritized core subprojects, (iii) financial and economic analysis of the power sector development plan and its core subprojects, (iv) environmental and social safeguards due diligence of the core subprojects, (v) climate-proofing analysis, (vi) recommendations for power sector governance framework, and (vii) public consultations and an awareness campaign.

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Project Name Preparing the Town Electrification Project (formerly Power Sector Development Project)
Project Number 41504-012
Country Papua New Guinea
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7113-PNG: Preparing the Town Electrification Project (formerly Power Sector Development Project)
Japan Special Fund US$ 1.20 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Energy - Conventional energy generation
Gender Equity and Mainstreaming Effective gender mainstreaming
Description This TA aims to increase availability of reliable and sustainable power supply at reasonable cost by designing a power sector development project that is agreed between the Government of Papua New Guinea (PNG) and ADB. TA outputs include the (i) updated least-cost power sector development plan, (ii) preliminary design and costing of prioritized core subprojects, (iii) financial and economic analysis of the power sector development plan and its core subprojects, (iv) environmental and social safeguards due diligence of the core subprojects, (v) climate-proofing analysis, (vi) recommendations for power sector governance framework, and (vii) public consultations and an awareness campaign.
Project Rationale and Linkage to Country/Regional Strategy

In PNG, more than 90% of the population has no electricity. In urban centers, the power supply is often unreliable. The country's medium term development strategy 2005-2010 recognizes energy and power as critical ingredients for development and poverty reduction. It aims to assist the disadvantaged to "lift themselves out of poverty by improving basic services such as water and electricity."

Lending assistance to the country's power sector was included in ADB's country strategy and program 2006-2010 for PNG and confirmed during the 2007 and 2008 country programming missions. ADB approved the PPTA concept paper in February 2008. The ADB Fact-Finding Mission visited PNG in April 2008. An understanding was reached with the Government on the PPTA's purpose, key activities, consultants' terms of reference, cost estimates and financing, and implementation arrangements.

Impact The impact of this technical assistance (TA) will be increased availability of reliable and sustainable power supply at reasonable cost.
Project Outcome
Description of Outcome The outcome of this TA will be a power sector development project design agreed between the borrower and the Asian Development Bank (ADB).
Progress Toward Outcome
Implementation Progress
Description of Project Outputs The TA outputs will include; (i) least-cost power sector development plan, (ii) identification and draft engineering design of core subprojects, (iii) financial and economic due diligence of the power sector development plan and its core subprojects, (iv) project compliance with requirements and procedures of environmental, social, and resettlement safeguards, (v) climate-proofing analysis, (iv) recommendations for power sector governance framework, and (vii) gender-sensitive public consultations and awareness campaign. Including institutional arrangements and capacity development.
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Port Moresby, 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 ADB will engage about 26 person-months of international and 26 person-months of national consulting services. A consulting firm will be recruited through the quality- and cost- based selection method based on the submission of full technical proposals and in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). The quality-cost weighting ratio will be 80:20. Procurement of equipment and software will be carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time) and will be handed over to the EA upon completion of the PPTA.
Responsible ADB Officer Anthony Maxwell
Responsible ADB Department Pacific Department
Responsible ADB Division Transport, Energy and Natural Resources Division, PARD
Executing Agencies
Energy Div of the Dept of Petroleum and EnergyMr. Joseph LelangWaigani, NCD, Papua New Guinea
Timetable
Concept Clearance 08 Feb 2008
Fact Finding 31 Mar 2008 to 10 Apr 2008
MRM -
Approval 08 Aug 2008
Last Review Mission -
PDS Creation Date 03 Sep 2008
Last PDS Update 31 Aug 2011

TA 7113-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Aug 2008 24 Sep 2008 24 Sep 2008 30 Jun 2010 31 Mar 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,200,000.00 0.00 300,000.00 0.00 0.00 0.00 1,500,000.00 08 Aug 2008 978,003.99

Safeguard Documents

See also: Safeguards

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Evaluation Documents

See also: Independent Evaluation

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