Papua New Guinea : Town Electrification Investment Program - Tranche 1

Sovereign Project | 41504-023

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.

Flickr photos from the 41504-023: Town Electrification Investment Program in Papua New Guinea album.

Project Details

  • Project Officer
    Villareal, Maria Theresa J.
    Pacific Department
    Request for information
  • Country/Economy
    Papua New Guinea
  • Sector
    • Energy
Project Name
Town Electrification Investment Program - Tranche 1
Project Number
41504-023
Country / Economy
  • Papua New Guinea
Project Status
Closed
Project Type / Modality of Assistance
  • Grant
  • Loan
Source of Funding / Amount
Loan 2713-PNG: Town Electrification Investment Program, Tranche 1
Source Amount
Ordinary capital resources US$ 37.90 million
Loan 2714-PNG: Town Electrification Investment Program, Tranche 1
Source Amount
Asian Development Fund US$ 16.40 million
Grant 0469-PNG: Town Electrification Investment Program, Tranche 1 (additional financing)
Source Amount
Government of New Zealand US$ 4.80 million
Strategic Agendas
  • Environmentally sustainable growth
  • Inclusive economic growth
Drivers of Change
  • Gender Equity and Mainstreaming
Sector / Subsector
  • Energy / Electricity transmission and distribution - Energy sector development and institutional reform - Renewable energy generation - small hydro

Gender
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

1. Kimbe - Bialla Transmission line completed and commissioned in December 2017.

2. Divune Hydropower plant contract was signed in August 2016 and implementation is ongoing.

3. Supply of equipment for Ramazon and Divune transmission line was completed in August 2015.

4. Ru Creek hydropower rehabilitation contract was signed on 22 June 2018 and implementation is ongoing.

5. Lake Hargy hydropower rehabilitation contract was signed on 28 May 2018 and implementation is ongoing.

Implementation Progress

Description of Project Outputs

Three 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)

1) Six renewable energy power plants put into operation by PPL:

i) Divune Hydropower plant contract was signed in August 2016 and implementation is ongoing.

ii) Ru Creek hydropower rehabilitation contract was signed on 22 June 2018 and implementation is ongoing.

iii) Lake Hargy hydropower rehabilitation contract was signed on 28 May 2018 and implementation is ongoing.

2) Transmission lines constructed and operated by PPL:

i) Kimbe-Bialla Transmission line completed and commissioned in December 2017. 1469 poles erected (100%) and 142.8km stringing completed (100%). Bialla substation completed and transformers energized with Mai substation also completed.

ii) Supply of equipment for Ramazon and Divune transmission line was completed in August 2015. Installation and construction of transmission line is ongoing and is under the Government's funding.

3) Capacity building undertaken for implement agency and project beneficiaries:

i) Two procurement trainings were conducted for PPL staff in 2016 and 2017. Capacity Development Training was conducted in October 2016 and ADB Safeguards training also conducted for PPL staff in 2016.

ii) Power safety awareness was conducted in March 2017 for communities who will be connected to the Divune and Ramazon Hydro power transmission line. A financial literacy training was also conducted for these communities which included budgeting and savings.

4. The PMU renders efficient project management services:

The PMU is fully established and is operational.

Geographical Location
Bialla, Bialla, Buka, Kimbe, Kimbe, Kokoda, Kokoda District, Luwuni Creek, North Bougainville District, Popondetta, Popondetta District, Ramazon River, Waju

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
Broad stakeholder consultation was undertaken during project design, including Government officials (national, provincial, and local), landowners, development partners and NGOs.
During Project Implementation
Stakeholder consultation will continue during project implementation.

Business Opportunities

Consulting Services
The Design and Supervision Consultants contract was signed in November 2012 and was completed in November 2014, however the contract is currently being reviewed for an extension.
Procurement
The project will undertake international competitive bidding for 6 contracts, national competitive bidding for 1 contract and shopping for 2 contracts.

Contact

Responsible ADB Officer
Villareal, Maria Theresa J.
Responsible ADB Department
Pacific Department
Responsible ADB Division
Papua New Guinea Resident Mission (PNRM)
Executing Agencies
Energy Division of the Department of Petroleum and Energy

Timetable

Concept Clearance
27 May 2010
Fact Finding
07 Jun 2010 to 18 Jun 2010
MRM
06 Mar 2009
Approval
06 Dec 2010
Last Review Mission
-
Last PDS Update
28 Sep 2018

Funding

Grant 0469-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Dec 2015 22 Jan 2016 15 Apr 2016 30 Jun 2017 31 Dec 2019 03 Feb 2021
Financing Plan
  Total (Amount in US$ million)
Project Cost 19.10
ADB 0.00
Counterpart 14.30
Cofinancing 4.80
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 17 Jun 2022 0.00 4.53 95%
Cumulative Disbursements 17 Jun 2022 0.00 4.53 95%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 2713-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Dec 2010 25 Feb 2011 26 Jul 2012 30 Jun 2014 24 Nov 2020 24 May 2021
Financing Plan
  Total (Amount in US$ million)
Project Cost 37.90
ADB 37.90
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 17 Jun 2022 37.75 0.00 100%
Cumulative Disbursements 17 Jun 2022 37.75 0.00 100%

Loan 2714-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Dec 2010 25 Feb 2011 26 Jul 2012 30 Jun 2014 24 Nov 2020 24 May 2021
Financing Plan
  Total (Amount in US$ million)
Project Cost 16.40
ADB 16.40
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 17 Jun 2022 14.42 0.00 100%
Cumulative Disbursements 17 Jun 2022 14.42 0.00 100%

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
Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2): Facility Completion Report MFF Facility Completion Report Nov 2023
Town Electrification Investment Program – Tranche 1: Program Completion Report Project/Program Completion Reports Feb 2022
Town Electrification Investment Program - Tranche 1 (Additional Financing) and Improved Energy Access for Rural Communities: Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements Dec 2020
Town Electrification Investment Program - Tranche 1: Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements Dec 2020
Amendment to the Loan Agreement for Loan 2714-PNG: Town Electrification Investment Program - Tranche 1 Loan Agreement (Special Operations) Nov 2019
Town Electrification Investment Program - Tranche 1 (Addtional Financing): Audited Project Financial Statements (For the year ended December 2017) Audited Project Financial Statements Aug 2018
Amendment to the Loan Agreement for Loan 2714-PNG: Town Electrification Investment Program - Tranche 1 Loan Agreement (Special Operations) Nov 2016
Grant Agreement (Externally Financed) for Grant 0469-PNG: Town Electrification Investment Program - Tranche 1 (Additional Financing) Grant Agreement Jan 2016
Town Electrification Investment Program Procurement Plans Jul 2013
Loan Agreement for Town Electrification Investment Program - Tranche 1 between the Independent State of Papua New Guinea and Asian Development Bank dated 25 February 2011 Loan Agreement (Ordinary Resources) Feb 2011
Loan Agreement (Special Operations) for Town Electrification Investment Program - Tranche 1 between the Independent State of Papua New Guinea and Asian Development Bank dated 25 February 2011 Loan Agreement (Special Operations) Feb 2011
Project Agreement for Town Electrification Investment Program - Tranche 1 between Asian Development Bank and PNG Power Limited dated 25 February 2011 Project/Program Agreements Feb 2011
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 - Tranche 1: Social Monitoring Report (January-June 2021) Social Monitoring Reports Jul 2021
Town Electrification Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2020) Environmental Monitoring Reports Apr 2021
Town Electrification Investment Program - Tranche 1: Social Monitoring Report (July-December 2020) Social Monitoring Reports Feb 2021
Town Electrification Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2020) Environmental Monitoring Reports Jun 2020
Town Electrification Investment Program - Tranche 1: Social Monitoring Report (January-June 2020) Social Monitoring Reports Jun 2020
Town Electrification Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Mar 2020
Town Electrification Investment Program - Tranche 1: Social Monitoring Report (July-December 2019) Social Monitoring Reports Feb 2020
Town Electrification Investment Program - Tranche 1: Social Monitoring Report (January-June 2019) Social Monitoring Reports Aug 2019
Town Electrification Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2019) Environmental Monitoring Reports Jul 2019
Town Electrification Investment Program - Tranche 1: Social Monitoring Report (July-December 2018) Social Monitoring Reports Apr 2019
Town Electrification Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Mar 2019
Town Electrification Investment Program - Tranche 1: Social Monitoring Report (January-June 2018) Social Monitoring Reports Jul 2018
Town Electrification Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2018) Environmental Monitoring Reports Jul 2018
Town Electrification Investment Program - Tranche 1: Social Monitoring Report (July-December 2017) Social Monitoring Reports Mar 2018
Town Electrification Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2017) Environmental and Social Monitoring Reports Jan 2018
TEIP - Tranche 1: Divune and Ramazon Hydropower and Kimbe-Bialla Transmission Projects Social Monitoring Report (January-June 2017) Social Monitoring Reports Jul 2017
Town Electrification Investment Program - Tranche 1: Environmental Monitoring Report (January-June 2017) Environmental Monitoring Reports Jul 2017
Town Electrification Investment Program - Tranche 1: Ru Creek Hydropower Rehabilitation Environmental Compliance Audit Report Environment Compliance Audit Reports May 2017
TEIP - Tranche 1: Divune and Ramazon Hydropower and Kimbe-Bialla Transmission Projects Social Monitoring Report (July-December 2016) Social Monitoring Reports Mar 2017
Town Electrification Investment Program - Tranche 1: Environmental Monitoring Report (July-December 2016) Environmental Monitoring Reports Jan 2017
Town Electrification Investment Program - Tranche 1: Divune Hydropower Resettlement Plan Resettlement Plans Aug 2016
TEIP – Tranche 1 (Additional Financing): Ramazon Hydropower and Kimbe-Bialla Transmission Subprojects Social Monitoring Report (July 2015-June 2016) Social Monitoring Reports Jul 2016
Town Electrification Investment Program - Tranche 1: Ramazon Hydro Power And Transmission Lines - Resettlement Action Plan Resettlement Plans Dec 2015
Town Electrification Investment Project - Tranche 1 (Additional Financing): Lake Hargy Hydropower Plant and Distribution Connections Initial Environmental Examination Initial Environmental Examination Apr 2015
Town Electrification Investment Project - Tranche 2: Lake Hargy Hydropower Plant Upgrade and Distribution Connections Subproject Draft Initial Environmental Examination Initial Environmental Examination Apr 2015
Town Electrification Investment Program - Tranche 1: Resettlement Action Plan for Ramazon Hydro Power and Transmission Line Subproject Resettlement Plans Feb 2015
Town Electrification Investment Program - Tranche 1: Bialla-Kimbe Transmission Line Interconnection Project Resettlement Action Plan Resettlement Plans Mar 2014
Town Electrification Project: Divune Hydropower Plant Draft Initial Environmental Examination Initial Environmental Examination Aug 2010
Town Electrification Project: Divune Hydropower Plant Draft Initial Environmental Examination Initial Environmental Examination Aug 2010
Town Electrification Project: Environmental Assessment and Review Framework Environmental Assessment and Review Framework Aug 2010
Town Electrification Project: Indigenous Peoples Planning Framework Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Aug 2010
Town Electrification Project: Ramazon Hydropower Plant Draft Initial Environmental Examination Initial Environmental Examination Aug 2010
Town Electrification Project: Ramazon Hydropower Plant Draft Initial Environmental Examination Initial Environmental Examination Aug 2010
Town Electrification Project: Kimbe to Lake Hargy Interconnection Draft Initial Environmental Examination Initial Environmental Examination Aug 2010
Town Electrification Project: Resettlement Framework Resettlement Frameworks Aug 2010
Town Electrification Project: Kimbe to Lake Hargy Interconnection Initial Environmental Examination Initial Environmental Examination Aug 2010
Town Electrification Project: Indigenous Peoples Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Aug 2010
Town Electrification Project: Divune Hydropower Plant Resettlement Plan Resettlement Plans Jun 2010

Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

Title Document Type Document Date
Papua New Guinea: Kimbe-Biala Transmission Line - Pacific Project Brief Papers and Briefs Sep 2017

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

Tender Title Type Status Posting Date Deadline
Town Electrification Investment Program - Tranche 1 Individual - Consulting Closed
Loan No. 2713/2714(SF)-PNG: Towns Electrification Investment Program Tranche 1 (TEIP T1) [RCHRP-ICBV1-01/2017] Invitation for Bids Closed
Grant No. 0469-PNG: Town Electrification Investment Program - Tranche 1 (Additional Financing) (Lake Hargy Hydro Power Rehabilitation) Invitation for Bids Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
SUPPLY OF EQUIPMENT AND ITS RELATED SERVICES FOR RU CREEK HYDROPOWER REHABILITATION PROJECT IN KIMBE, W.N.B PROVINCE Loan 2713 13 Jul 2018 VORTEX GROUP LTD | 1/1071 HINEMOA STREET, ROTORUA 3010 NEW ZEALAND NEW ZEALAND Energy Division of the Dept of Petroleum & Energy 1,511,363.00 838,794.00
SUPPLY OF EQUIPMENT AND ITS RELATED SERVICES FOR RU CREEK HYDROPOWER REHABILITATION PROJECT IN KIMBE, W.N.B PROVINCE. Loan 2714 13 Jul 2018 VORTEX GROUP LTD | 1/1071 HINEMOA STREET, ROTORUA 3010 NEW ZEALAND NEW ZEALAND Energy Division of the Dept of Petroleum & Energy 1,511,363.00 659,052.00

Procurement Plan

Title Document Type Document Date
Town Electrification Investment Program Procurement Plans Jul 2013