Papua New Guinea: Facilitating Public-Private Partnerships

Sovereign Project | 43199-012

Summary

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.

Latest Project Documents

Title Document Date
Facilitating Public-Private Partnerships Feb 2011

Consulting Notices

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Procurement Notices

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Procurement Documents

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Project Name Facilitating Public-Private Partnerships
Project Number 43199-012
Country Papua New Guinea
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7782-PNG: Facilitating Public Private Partnerships
Japan Fund for Poverty Reduction 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 Equity and Mainstreaming 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.

Three individual consultants were recently engaged for implementation -- PPP Institutional Expert, PPP Expert, and SOE/CSO Expert.

Geographical Location Papua New Guinea
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 Hayden Everett
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Liaison and Coordination Office in Sydney, Australia
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 17 Mar 2015

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 -
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 23 Feb 2011 242,137.75
Title Document Type Document Date
Facilitating Public-Private Partnerships Technical Assistance Reports Feb 2011

Safeguard Documents

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Evaluation Documents

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