Papua New Guinea: MFF: Town Electrification Investment Program

Sovereign Project | 41504-013

The Asian Development Bank is working with Papua New Guinea to expand the electricity grid in rural areas. The program is partnering with PNG Power Limited to enable more people to benefit from having access to electricity.

Project Name MFF: Town Electrification Investment Program
Project Number 41504-013
Country / Economy Papua New Guinea
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
MFF Facility Concept 0051-PNG: Town Electrification Investment Program
Ordinary capital resources US$ 93.80 million
Asian Development Fund US$ 26.20 million
MFF Facility Concept: MFF: Town Electrification Investment Program
New Zealand Grant US$ 5.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Sector / Subsector

Energy / Renewable energy generation

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed investment program will improve power supply in provincial urban centers through replacement of high-cost diesel power generation with sustainable renewable energy power generation. The investment program will include (i) construction of about six run-of-river hydropower plants to supply provincial centers, (ii) construction of transmission systems to connect provincial centers, and (iii) capacity building within the power utility and communities. Project preparatory technical assistance (TA) was used in project preparation.
Project Rationale and Linkage to Country/Regional Strategy In Papua New Guinea (PNG), grid-connected power is largely restricted to the main urban areas. Less than 10% of the population has access to electricity. In provincial urban centers not connected to the main power grids, a relatively low percentage of urban residents are connected, and distributed power is rarely available outside the provincial urban centers. The supply of power to business and industry in the provincial urban centers is unreliable, with regular power outages and demand that at times exceeds generation capacity. As a result, many large businesses in the provinces self-generate using diesel generators, at high cost. Lack of access to affordable, reliable power is limiting economic growth in provincial centers.
Impact The economic condition of the population in the targeted provincial centers has improved.
Project Outcome
Description of Outcome Improved utilization of reliable, clean power to six provincial urban centers
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Six renewable energy power plants put into operation by PPL

Transmission lines constructed and operated by PPL

Capacity building undertaken for implementing agency and project beneficiaries

The PMU renders efficient project management services

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
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 The project will use QCBS for 1 contract.
Procurement The project will undertake international competitive bidding for 6 contracts, national competitive bidding for 1 contract and shopping for 2 contracts.
Responsible ADB Officer Villareal, Maria Theresa J.
Responsible ADB Department Pacific Department
Responsible ADB Division Papua New Guinea Resident Mission
Concept Clearance 27 May 2010
Fact Finding 07 Jun 2010 to 18 Jun 2010
MRM 11 Aug 2010
Approval 25 Nov 2010
Last Review Mission -
PDS Creation Date 10 May 2010
Last PDS Update 24 Feb 2011

MFF Facility Concept 0051-PNG

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 150.00 Cumulative Contract Awards
ADB 120.00 - 0.00 0.00 %
Counterpart 30.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

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
Framework Financing Agreement for Town Electrification Investment Program between the Independent State of Papua New Guinea and Asian Development Bank Framework Financing Agreement Nov 2010
Town Electrification Investment Program Gender Action Plans Nov 2010
Town Electrification Investment Program Reports and Recommendations of the President Nov 2010
Town Electrification Investment Program Summary Poverty Reduction and Social Strategies Nov 2010
Town Electrification Investment Program Facility Administration Manual Oct 2010

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
Town Electrification Investment Program: Environmental Assessment and Review Framework (as of Board approval) Environmental Assessment and Review Framework Nov 2010
Town Electrification Project: Environmental Assessment and Review Framework Environmental Assessment and Review Framework Aug 2010
Town Electrification Project: Indigenous Peoples Plan: Divune Hydropower Plant Indigenous Peoples Plans/Indigenous Peoples Development Plans Aug 2010
Town Electrification Project: Indigenous Peoples Planning Framework Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Aug 2010
Town Electrification Project: Resettlement Framework Resettlement Frameworks Aug 2010
Town Electrification Project: Resettlement Plan: Divune Hydropower Plant Resettlement Plans Jun 2010

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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.


No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.