41504-023: Town Electrification Investment Program - Tranche 1 | Asian Development Bank

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 Gender Equity and Mainstreaming
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 Hydropower plant (DHPP) EPC contract was signed on 18 August 2016. The contractor mobilized to site in October 2016 and currently overall progress stands at 5%.

2. Kimbe-Bialla Transmission Line (KBTL) EPC contract was awarded in February 2015. Overall construction progress stands at 85%. Commissioning of the transmission line is planned for 29 September 2017.

3. Construction of Transmission Line in Buka and Popondetta is in progress.

4. Power Safety awareness was conducted in April 2017.

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)

Six renewable energy power plants into operation by PPL:

1. Divune Hydropower plant (DHPP) EPC contract was signed on 18 August 2016. The contractor mobilized to site in October 2016 and currently overall progress stands at 5%. Contractor is undertaking preliminary designs and drawings with excavation and clearance of the power house site and penstock route.

2. Ramazon Hydropower plant has been transferred to TEIP Tranche 2. Procurement is ongoing.

3. Procurement for Ru Creek Hydropower Rehabilitation is ongoing. Contract is expected to be awarded in Q4 2017.

Transmission Lines constructed and operated by PPL:

1. Procurement for Divune and Ramazon transmission line equipment is completed. The supply contract was awarded in April 2014 and all equipment have been delivered to site.

2. Kimbe-Bialla Transmission Line (KBTL) EPC contract was awarded in February 2015. The contractor mobilized in April 2015 and started construction in July 2016. Overall construction progress stands at 85% with 90% monopoles erected and 80% stringing completed. Commissioning of the transmission line is planned for 29 September 2017.

3. The construction of the Transmission Line in Buka and Popondetta by the Implementing Agency (IA) is in progress.

Capacity building undertaken for implementing Agency and project beneficiaries:

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

2. The PMU attended a ADB's Safeguard training in October 2016.

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

The PMU renders efficient project management services:

1. The IA has established the Project Management Unit (PMU) and recruitment of national PMU staff is complete to strengthen the PMU capacity. A Project Implementation Specialist (PIS) was also recruited to strengthen the implementation capacity of the PMU.

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
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 Sep 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 34.96 0.00 92%
Counterpart 14.30 Cumulative Disbursements
Cofinancing 0.00 06 Dec 2010 24.49 0.00 65%

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 12.69 86%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 06 Dec 2010 0.00 8.83 60%

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 Public Communications Policy (PCP) 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.

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 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 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: Divune Hydropower Plant Resettlement Plan Resettlement Plans Jun 2010

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications


The Public Communications Policy (PCP) 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.

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