Papua New Guinea: Town Electrification Investment Program - Tranche 1

Sovereign (Public) Project | 41504-023 Status: Active

ADB is helping Papua New Guinea build renewable energy facilities to meet critical electricity supply gaps in six provincial urban centers. The first tranche of the investment program will support run-of-river hydro plants in Northern Province and the Autonomous Region of Bougainville, and a 66-kilovolt transmission line in West New Britain.

 
Project Name Town Electrification Investment Program - Tranche 1
Project Number 41504-023
Country Papua New Guinea
Project Status Active
Project Type / Modality of Assistance Loan

Source of Funding / Amount
Grant 0469-PNG: Town Electrification Investment Program, Tranche 1
Government of New Zealand US$ 4.80 million
Loan 2713-PNG: Town Electrification Investment Program, Tranche 1
Ordinary capital resources US$ 37.90 million
Loan 2714-PNG: Town Electrification Investment Program, Tranche 1
concessional ordinary capital resources lending / Asian Development Fund US$ 16.40 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector

Energy - Electricity transmission and distribution - Energy sector development and institutional reform - Renewable energy generation - small hydro

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

1. Divune Hydro Power Plant contract awarded. Site clearance completed and awaiting detail design.

2. Bialla-Kimbe Transmission Line contract awarded. Physical progress is at 70%.

3. Divune and Ramazon Transmission Line contract awarded. Physical progress for Divune site is at 20% and Ramazon site is at 25%.

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 implement 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:

a) Divune Hydro Power Plant (DHPP) EPC contract was signed in August 2016. Site clearance is completed and all equipment are on site. Awaiting final detail design from Contractor.

b) Ramazon Hydro Power plant has been transferred to Tranche 2.

2: Transmission lines constructed and operated by PPL:

a) Bialla-Kimbe Transmission Line - 973/1452 poles have been erected and 497/1452 poles strung. Project is expected to be completed in August 2017

b) Divune and Ramazon Transmission Line - For Divune PPL constructed 15 kilometers out of total 76 kilometers of High voltage (HV) and low voltage (LV) lines. For Ramazon 10 kilometers out of 67 kilometers HV/LV lines constructed.

3: Capacity building undertaken for implementing agency and project beneficiaries:

a) A Procurement session on ADB's procurement guidelines was conducted for PPL and the Design Supervision Consultant on 29 May 2013.

b) PMU staff have undertaken Capacity Development Trainings.

c) Gender training was conducted for PMU staff in 2015.

4: The PMU renders efficient project management services:

a) PPL has established the Project Management Unit.

b) A Gender Officer has been engaged to implement and report on the project Gender Action Plan (GAP).

Geographical Location
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
Executing Agencies
Energy Division of the Department of Petroleum and Energy
P.O. Box 494
Waigani, NCD
Papua New Guinea
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 27 Mar 2017

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 30 Jun 2018 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.20 Cumulative Contract Awards
ADB 0.00 09 Dec 2015 0.00 3.78 79%
Counterpart 0.40 Cumulative Disbursements
Cofinancing 4.80 09 Dec 2015 0.00 3.54 74%

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 01 Jun 2018 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 52.20 Cumulative Contract Awards
ADB 37.90 06 Dec 2010 34.97 0.00 92%
Counterpart 14.30 Cumulative Disbursements
Cofinancing 0.00 06 Dec 2010 24.00 0.00 63%

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 01 Jun 2018 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 16.40 Cumulative Contract Awards
ADB 16.40 06 Dec 2010 0.00 12.70 85%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 06 Dec 2010 0.00 8.64 58%

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.

Title Document Type Document Date
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 Resettlement Frameworks Aug 2010
Town Electrification Project: Initial Environmental Examination: Kimbe to Lake Hargy Interconnection Initial Environmental Examination Aug 2010
Town Electrification Project Environmental Assessment and Review Framework Aug 2010
Town Electrification Project: Kimbe to Lake Hargy Interconnection (Draft) Initial Environmental Examination Aug 2010
Town Electrification Project Indigenous Peoples Plans/Indigenous Peoples Development Plans Aug 2010
Town Electrification Project: Initial Environmental Examination: Divune Hydropower Plant (Draft) Initial Environmental Examination Aug 2010
Town Electrification Project: Divune Hydropower Plant (Draft) Initial Environmental Examination Aug 2010
Town Electrification Project Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Aug 2010
Town Electrification Project: Initial Environmental Examination: Ramazon Hydropower Plant (Draft) Initial Environmental Examination Aug 2010
Town Electrification Project: Ramazon Hydropower Plant (Draft) Initial Environmental Examination 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


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