43197-013: Port Moresby Power Grid Development Project | Asian Development Bank

Papua New Guinea: Port Moresby Power Grid Development Project

Sovereign (Public) 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.

Project Details

Project Officer
Villareal, Maria Theresa J. Pacific Department Request for information
Country
  • Papua New Guinea
Modality
  • Loan
Sector
  • Energy
 
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
concessional ordinary capital resources lending / Asian Development Fund US$ 15.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed Port Moresby Grid Development Project will upgrade and extend the transmission and distribution grid in the national capital, Port Moresby, thereby improving the reliability and quality of power supply to the main urban center in Papua New Guinea (PNG), improving the energy efficiency of power delivery, and enabling delivery of essential power to rapidly expanding areas of Port Moresby. A project preparation technical assistance (PPTA) will be undertaken for the due diligence of the proposed project.
Project Rationale and Linkage to Country/Regional Strategy In Papua New Guinea (PNG), power grids are restricted to urban areas, and supply is often unreliable and represents a high percentage of household expenditure. In Port Moresby, power outages are becoming increasingly frequent due to insufficient generation and undersized and poorly maintained transmission and distribution systems. Because of the unreliability of the power supply, there is considerable self-generation and back-up generation capacity in the urban areas, which is maintained and operated at high cost and low efficiencies. Lack of access to affordable, reliable power is limiting economic growth in urban areas and constraining growth in smaller urban centers. Load forecasts for the Port Moresby power grid have increased significantly in recent years and demand is expected to rise significantly in coming years, fuelled by high economic growth associated with the proposed LNG Plant as well as continued growth in the mining sector and associated industry. Large additional generation is planned to support the expanding demand and the existing Port Moresby grid requires (i) upgrading to support the additional load, and (ii) extension to supply new industrial and residential areas. System upgrades are required to lower system losses and to improve grid efficiencies. This will result in downward pressure on tariffs due to operational efficiencies. The components of the project include upgrading and construction of substations, construction of transmission lines, and construction of distribution networks.
Impact PPL customers (residential and business) undertake more economic activities
Project Outcome
Description of Outcome Better power supply for Port Moresby
Progress Toward Outcome 11kV Distribution system upgrade - Contract for this package is expected to be award by end of Q1 2018. Bidding documents been finalized.
Implementation Progress
Description of Project Outputs

1. PPL upgrades and rehabilitates hydropower capacity

2. PPL upgrades distribution system on Port Moresby grid

3. PPL upgrades substation capacity

4. Project management and capacity building

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

1. Rouna 1 and Sirinumu HPP bidding was completed . The bids were under evaluation. Clarification is sought from bidders and ADB procurement specialist. Contract is expected to be awarded in Q4 2017.

Yet to be implemented .

2. 11kV Distribution system upgrade ,PPL has internally carried out and completed assessments on systems loses in the Port Moresby Power Grid Distribution System.

Yet to be implemented.

3.Kilakila substation & 66Kv Transmission lines has been awarded on 8 May 2017.

Contractors have mobilized and are now on site.

1,600 households to be connected ( which is more practical).Procurement equipment is to be procured by PPL Internally.

4. PMU Capacity Support Consultants contract was awarded to Fichtner GMB. Civil works and Goods procurement in progress.

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

Geographical Location Hiri, Kila Kila Number 1, Laloki River, Port Moresby, Sirinumu Dam
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Project will be carried out on existing sites, therefore, environmental impacts are minimal.
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 ADB Officer Villareal, Maria Theresa J.
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
Timetable
Concept Clearance 28 Feb 2011
Fact Finding 03 Sep 2012 to 14 Sep 2012
MRM 28 Sep 2012
Approval 26 Apr 2013
Last Review Mission -
Last PDS Update 27 Sep 2017

Loan 2998-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Apr 2013 01 May 2013 16 Dec 2013 31 Jul 2017 31 Jul 2019 -
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 13.34 0.00 26%
Counterpart 16.30 Cumulative Disbursements
Cofinancing 0.00 26 Apr 2013 3.45 0.00 7%

Loan 2999-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Apr 2013 01 May 2013 16 Dec 2013 31 Jul 2017 31 Jul 2019 -
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%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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
Port Moresby Power Grid Development Project: Environmental and Social Monitoring Report (January-June 2017) Environmental and Social Monitoring Reports Jul 2017
Port Moresby Power Grid Development Project: Kila Kila Subproject Resettlement Monitoring Report (July-December 2016) Social Monitoring Reports Mar 2017
Port Moresby Power Grid Development Project: Environmental Monitoring Report (July-December 2016) Environmental Monitoring Reports Jan 2017
Port Moresby Power Grid Development Project: Kila Kila Substation and 66 kV Transmission Line Resettlement Completion Report Social Monitoring Reports Sep 2016
Port Moresby Power Grid Development Project: Kila Kila Substation Social Monitoring Report (July 2015-June 2016) Social Monitoring Reports Jul 2016
Port Moresby Power Grid Development Project: Sirinumu Toe-of-Dam Hydropower Plant Replacement Initial Environmental Examination Dec 2012
Port Moresby Power Grid Development Project: Upgrade of 11kV System to Open Loop Mesh Initial Environmental Examination Dec 2012
Port Moresby Power Grid Development Project Social Compliance Audit Report Oct 2012
Port Moresby Power Grid Development Project Resettlement Plans Sep 2012
Port Moresby Power Grid Development Project: Equipment for Loss Reduction Program Initial Environmental Examination Sep 2012
Port Moresby Power Grid Development Project: Rouna 1 Hydropower Station Rehabilitation and Upgrade Initial Environmental Examination Sep 2012
Port Moresby Power Grid Development Project: Kilakila Substation and 66 kV Transmission Line Initial Environmental Examination Sep 2012
Port Moresby Power Grid Development Project: Substation Capacitors Initial Environmental Examination Sep 2012

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.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Subproject 1: Kilakila Substation & 66 Kv Transmission Lines. Pestech Sdn Bhd Contract. Loan 2998 09 Jun 2017 Pestech Sdn Bhd, No.26, Jalan 40150 Shan Alam Selangor Darul Ehsan, Malaysia Independent Public Business Corporation(IPBC) Others 9597459 9597459

Procurement Plan