Papua New Guinea : Facilitating Public-Private Partnerships

Sovereign Project | 43199-012

The proposed TA will provide capacity development to the government's overall effort to support increased private sector investment in infrastructure and related services through public-private partnerships (PPP). It will help support the government in establishing and operating a PPP center and a project development facility (PDF) to prepare properly structured PPP arrangements. It will also support the government in implementing a community service obligations (CSO) framework, allowing the private sector to compete for CSO contracts.

Project Details

  • Project Officer
    Everett, Hayden B.
    Pacific Department
    Request for information
  • Country/Economy
    Papua New Guinea
  • Modality
  • Sector
    • Public sector management
Project Name Facilitating Public-Private Partnerships
Project Number 43199-012
Country / Economy Papua New Guinea
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7782-PNG: Facilitating Public Private Partnerships
Japan Fund for Prosperous and Resilient Asia and the Pacific US$ 800,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Public sector management / Economic affairs management

Gender No gender elements
Description The proposed TA will provide capacity development to the government's overall effort to support increased private sector investment in infrastructure and related services through public-private partnerships (PPP). It will help support the government in establishing and operating a PPP center and a project development facility (PDF) to prepare properly structured PPP arrangements. It will also support the government in implementing a community service obligations (CSO) framework, allowing the private sector to compete for CSO contracts.
Project Rationale and Linkage to Country/Regional Strategy Increased private investment in the provision of infrastructure services, through direct means as well as PPPs, is an integral part of the Government's PNG Development Strategic Plan 2010-2030 and Medium Term Development Strategy 2011-2016. It is also a central feature of the approach to supporting private sector development in ADB's PNG Country Partnership Strategy (CPS) 2011 -2015.
Impact

Increased private sector investment in infrastructure services

Project Outcome
Description of Outcome

Improved capacity of the government to prepare and transact PPPs

Progress Toward Outcome The TA has four interrelated components: (i) support for the PPP center in preparing a first set of pilot PPP transactions and establishing momentum and credibility in the PPP program; (ii) support for the development of financing mechanisms for PPP project preparation, through a PDF; (iii) support for the development of mechanisms to secure long-term funding for the implementation of PPPs; and (iv) support for a CSO framework for PNG, allowing the private sector to compete for CSO contracts, and freeing up SOEs to adopt commercial practices, making them more viable partners for the private sector in future PPP transactions.
Implementation Progress
Description of Project Outputs

The PPP center is operational and executing its mandate.

Project development facility (PDF) operational.

Mechanism for longterm financing of PPP projects is agreed by the government.

New community service obligation (CSO) framework established and piloted in selected state-owned enterprises (SOEs).

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

The PPP pre-feasibility assessments of the Jackson's and Nadzab Airports were presented to the new National Airport Corporation management team in November 2013, which requested a follow-on presentation to their Steering Committee. This Committee will make the financing decisions for the development of both airports.

It is also expected that TA support will be required to further develop PPP options for the new Lae Port. A PPP options report was delivered by ADB in March 2014, and pending endorsement by the Government, it is expected that a more detailed PPP feasibility assessment will be commissioned.

The PPP Act was endorsed by the Parliament in September 2014. To implement the Act, further work is now required in four core areas: (i) establishment of the PPP Centre and the installation of a PPP process, (ii) PPP advocacy and identifying PPP opportunities within the infrastructure investment pipeline, (iii) supporting sponsoring agencies in developing PPP project opportunities and (iv) developing financing mechanisms for PPP project preparation.

The TA's physical completion date is 31 Dec 2015. Consultants' final claims are being processed, and the TCR is being prepared for approval in Q2 2016.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The TA has been designed in close consultation with the Department of Treasury and key stakeholders, including the Department of National Planning and Monitoring, the Ministry of Public Enterprises, and development partners.
During Project Implementation The TA is being implemented by ADB in coordination with the Department of Treasury, which is the implementing agency. The Department of Treasury will play an important role in establishing the PPP center and PDF and will serve as a co-chair of the CSO working group. In line with government processes, the executing agency for the TA will be the Department of National Planning and Monitoring.
Business Opportunities
Consulting Services It is estimated that the TA as a whole will require a total of 19.5 person-months of international consultant time and 10 person-months of national consultant time.
Procurement NA
Responsible ADB Officer Everett, Hayden B.
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Liaison and Coordination Office in Sydney, Australia (PLCO)
Timetable
Concept Clearance 05 May 2010
Fact Finding 20 May 2010 to 21 May 2010
MRM -
Approval 23 Feb 2011
Last Review Mission -
PDS Creation Date 22 Apr 2010
Last PDS Update 31 Mar 2016

TA 7782-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 Feb 2011 04 Apr 2011 04 Apr 2011 30 Apr 2013 31 Dec 2015 05 Apr 2016
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 800,000.00 800,000.00 0.00 0.00 0.00 1,600,000.00 17 Jun 2022 431,968.41

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 Access to Information Policy (AIP) 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.

Title Document Type Document Date
Facilitating Public-Private Partnerships: Technical Assistance Completion Report TA Completion Reports May 2016
Facilitating Public-Private Partnerships Technical Assistance Reports Feb 2011

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.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) 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

No contracts awarded for this project were found

Procurement Plan

None currently available.