Papua New Guinea : Town Electrification Investment Program - Tranche 1
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 Details
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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 |
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| Project Status | Closed | ||||||||||||
| Project Type / Modality of Assistance | Grant Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming |
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| Sector / Subsector | Energy / Electricity transmission and distribution - Energy sector development and institutional reform - Renewable energy generation - small hydro |
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| 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. |
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| 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. |
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| Project Outcome | |
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| 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. |
| 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 |
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 | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 19.10 | Cumulative Contract Awards | |||
| ADB | 0.00 | 17 Jun 2022 | 0.00 | 4.53 | 95% |
| Counterpart | 14.30 | Cumulative Disbursements | |||
| Cofinancing | 4.80 | 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 | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 37.90 | Cumulative Contract Awards | |||
| ADB | 37.90 | 17 Jun 2022 | 37.75 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 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 | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 16.40 | Cumulative Contract Awards | |||
| ADB | 16.40 | 17 Jun 2022 | 14.42 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 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.
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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.
Evaluation Documents See also: Independent Evaluation
| Title | Document Type | Document Date |
|---|---|---|
| Papua New Guinea: Town Electrification Investment Program – Tranche 1 | Validations of Project Completion Reports | Dec 2022 |
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.
New Zealand Expands Funding for Cleaner, More Reliable Power in PNG
The Government of New Zealand has provided additional financing of $4.8 million to expand the electricity grid in rural areas of Papua New Guinea.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Town Electrification Investment Program - Tranche 1 | Individual - Consulting | Closed | ||
| Loan No. 2713/2714(SF)-PNG: Towns Electrification Investment Program Tranche 1 (TEIP T1) [RCHRP-ICBV1-01/2017] | Invitation for Bids | Closed | ||
| Grant No. 0469-PNG: Town Electrification Investment Program - Tranche 1 (Additional Financing) (Lake Hargy Hydro Power Rehabilitation) | Invitation for Bids | Closed |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | 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 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 |
| 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 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Town Electrification Investment Program | Procurement Plans | Jul 2013 |