Papua New Guinea: Port Moresby Power Grid Development Project

Sovereign Project | 43197-013 Status: Active


ADB is helping Papua New Guinea boost access to reliable electricity in its largest urban center, Port Moresby. The project will upgrade and extend the transmission and distribution grid, improve substation capacity, and upgrade and rehabilitate two hydropower plants. It will also assist power grid operator PNG Power limited in expanding renewable energy generation and improve services.

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

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Project Name Port Moresby Power Grid Development Project
Project Number 43197-013
Country Papua New Guinea
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2998-PNG: Port Moresby Power Grid Development Project
Ordinary capital resources US$ 51.70 million
Loan 2999-PNG: Port Moresby Power Grid Development Project
Asian Development Fund US$ 15.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector

Energy - Electricity transmission and distribution

Gender Equity and Mainstreaming Effective gender mainstreaming
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

Description of Outcome
Progress Toward Outcome Detailed design for works has commenced.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

1. IA is drafting bidding documents for Rouna 1 and Sirinumu Hydropower projects in anticipation of the results framework tests. Bidding to commence in Q2 2016.

2. Yet to be implemented. Procurement stage.

3. Rebidding for Kilakila sub-station closed on 29 Feb 2016. Bid evaluation report is expected in early Q2 2016. Contract award should be made soon after.

4. Procurement training for PMU staff conducted in August 2013. PMU engineers attended hydropower training in Nov 2015 in NZ. 3 PMU staff attended safeguard training in Germany in Feb 2016.

Gender awareness training conducted by ADB Gender Consultant for PPL PMU staff in October 2014.

Consultancy contract awarded to Fichtner GMB. Civil works and Goods procurement in progress.

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

Business Opportunities

Consulting Services Consulting firms will be engaged using the quality- and cost-based selection method with a quality cost ratio of 90:10 (considered justified due to the technical complexity of the power grid upgrades). Consultants may also be recruited through individual consultant selection (considered justified given the difficulties in finding consulting companies with the broad technical spread required, and a limited pool of consultants with required technical and country expertise). All consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). The PMU will be responsible for contracting all consulting services, equipment, and civil works.
Procurement A procurement capacity assessment was completed for PPL. It indicated that PPL has significant experience in procuring goods and services and has sufficient procurement experience and human resources to manage procurement for the project, including the preparation of bidding documents, evaluation of technical proposals, and monitoring of contract performance. The assessment found some areas that require realignment to comply with ADB systems: (i) lack of specific technical specification or bill of quantities and price schedules, (ii) bid-opening procedures, (iii) procurement method contract value thresholds, and (iv) lack of a complaints procedure. Based on this risk evaluation, the PMU will include an international procurement specialist who will train PPL staff in preparing tender documents and managing the preparation of ADB tender documents. ADB's Anticorruption Policy (1998, as amended to date) was explained to and discussed with the government, IPBC, and PPL. The specific policy requirements and supplementary measures are described in the project administration manual. PPL's asset management procedures were assessed and considered sufficient to operate and maintain the assets under the project

Responsible Staff

Responsible ADB Officer Syed Hussain Haider
Responsible ADB Department Pacific Department
Responsible ADB Division Papua New Guinea Resident Mission
Executing Agencies
Independent Public Business Corporation(IPBC)
Level 4 Pacific Place
Cnr. Musgrave Street and Champion Pde.
PO Box 320, Port Moresby, NCD


Concept Clearance 28 Feb 2011
Fact Finding 03 Sep 2012 to 14 Sep 2012
MRM 28 Sep 2012
Approval -
Last Review Mission -
Last PDS Update 31 Mar 2016

Loan 2998-PNG

Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Apr 2013 01 May 2013 16 Dec 2013 31 Jul 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 68.00 Cumulative Contract Awards
ADB 51.70 26 Apr 2013 3.62 0.00 7%
Counterpart 16.30 Cumulative Disbursements
Cofinancing 0.00 26 Apr 2013 1.78 0.00 3%

Loan 2999-PNG

Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Apr 2013 01 May 2013 16 Dec 2013 31 Jul 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 15.00 Cumulative Contract Awards
ADB 15.00 26 Apr 2013 0.05 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Apr 2013 0.00 0.00 0%

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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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