The Asian Development Bank is working with Papua New Guinea on a program to deliver reliable and affordable power supplies to provincial centers. The second tranche will rehabilitate two existing hydropower plants and build another run-of-river plant, allowing provincial centers to cut diesel use and power costs. Only about 12% of the population had access to grid-connected power as of end-2015.
| Project Name | Town Electrification Investment Program - Tranche 2 | ||||||||
| Project Number | 41504-025 | ||||||||
| Country | Papua New Guinea |
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| Project Status | Active | ||||||||
| Project Type / Modality of Assistance | 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 Governance and capacity development Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector | Energy / Electricity transmission and distribution |
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| Gender Equity and Mainstreaming | Some gender elements | ||||||||
| Description | The components proposed for financing under the requested PFR are: Component 1: Rehabilitation of two hydropower plants: (i) Yonki Toe of Dam (YTOD) hydropower plant, and (ii) Warangoi hydropower plant, which are currently operating below their full capacities. After rehabilitation, these plants will be capable of operating at their rated capacity of 28.0 MW-18 MW YTOD, and the 10 MW Warangoi plant. Moreover, the proposed rehabilitation will extend the economic life of these plants by another 20 to 25 years and ensure that they are brought to current standards. Component 2: Construction of Ramazon run-of-river small hydropower plant with a preliminary capacity of 3 MW. The project will include construction of a (i) concrete weir, (ii) 5 km pipeline, (iii) penstock, (iv) powerhouse, and (v) new access road from the existing road to the powerhouse and internal roads within the project area. |
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| Project Rationale and Linkage to Country/Regional Strategy | In PNG, grid-connected power is still largely restricted to the main urban areas. By the end of 2015, approximately 12% of the overall population had access to electricity. The majority of provincial centers are supplied entirely through diesel generation, resulting in high generation costs but still with a low quality of power supply. Lack of access to affordable and reliable power is limiting economic growth in provincial centers. PNG has significant underutilized indigenous renewable energy sources, particularly hydropower and solar, for which the generation costs of energy are considerably lower than that of diesel. The TEIP is assisting PNG to meet the MFF outcome of improved utilization of reliable and clean power in provincial urban centers by supporting the development of least-cost renewable energy sources to (i) improve the reliability and quality of power supply in order to stimulate economic growth; and (ii) replace diesel generation, thereby reducing power-generation costs and creating incentives to improve access rates. The TEIP also supports the extension of the distribution grid to increase access to electricity in the provinces. Under tranche 2, the government seeks ADB financing for (i) refurbishment of two existing hydropower plants; and (ii) construction of the Ramazon hydropower plant, consisting of a 3 megawatt (MW) run-of-river hydropower plant. |
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| 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 two provincial urban centers |
| Progress Toward Outcome | 2018 July: YTOD and Waronggoi contracts concluded and ready for signing. 2018 September: The implementation progress of the Project is slow. Since effectiveness of the Project, a construction supervision consultant contract, with a value of about $1.89 million has been signed. Moreover, two out of three small hydro power turnkey contracts under the Project, with a total value of $32.95 million are ready for signing. However, no disbursement has been made and the two award-ready contracts have not been able to be signed, because the SLA has not been signed, which is the condition for disbursement of loan proceeds. |
| Implementation Progress | |
| Description of Project Outputs | PPL rehabilitates two aging hydropower plants to bring them back to their rated capacity of 28.0 MW Capacity building undertaken for implementing agency and project beneficiaries The PMU renders efficient project management services |
| Status of Implementation Progress (Outputs, Activities, and Issues) | YTOD and Waronggoi contracts concluded and ready for signing. To be assessed later. To be assessed later. For the Romazaon contract, the JV issue has been resolved, but has delayed the signing. Too early to determine. Too early to determine. Too early to determine. Too early to determine. |
| Geographical Location | |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| 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, inlcluding Government officials (national, provincial, and local), landowners, development partners and NGOs. |
| During Project Implementation | Stakeholder consultation will continue during project implementation. |
| 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 | - |
| Fact Finding | - |
| MRM | 28 Sep 2016 |
| Approval | 04 Jul 2017 |
| Last Review Mission | - |
| Last PDS Update | 26 Sep 2018 |
Loan 3544-PNG
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 04 Jul 2017 | 19 Jul 2017 | 12 Oct 2017 | 30 Jun 2020 | 24 Nov 2020 | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 55.90 | Cumulative Contract Awards | |||
| ADB | 55.90 | 04 Jul 2017 | 36.40 | 0.00 | 89% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 04 Jul 2017 | 27.65 | 0.00 | 68% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
Loan 3545-PNG
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 04 Jul 2017 | 19 Jul 2017 | 12 Oct 2017 | 30 Jun 2020 | 24 Nov 2020 | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 20.70 | Cumulative Contract Awards | |||
| ADB | 5.00 | 04 Jul 2017 | 2.41 | 0.00 | 46% |
| Counterpart | 15.70 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 04 Jul 2017 | 1.66 | 0.00 | 32% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
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.
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ADB Provides More Funds for Town Electrification Investment Program in PNG
MANILA, PHILIPPINES (4 July 2017) — The Asian Development Bank (ADB) today approved the second phase of financial support amounting to $76 million to address lack of access to affordable, clean, and reliable power in provincial centers in Papua New Guinea (PNG).
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| PMU Consultant | Individual - Consulting | Closed | 18 Dec 2019 | 24 Dec 2019 |
| L3544/3545 (COL) – PNG: Town Electrification Investment Program – Tranche 2 [WHRP-ICBV1-02/17-TEIP2-W02] | Invitation for Bids | Closed | 25 Aug 2017 | 16 Feb 2018 |
| 41504-PNG: Town Electrification Investment Program – Tranche 2 [YTOD-ICBV1-01/17-TEIP2-W01] | Invitation for Bids | Closed | 14 Jul 2017 | 13 Oct 2017 |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Contractor Address | Executing Agency | Contract Description | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|---|---|
| TEIP PMU STAFF SALARIES AND RELATED EXPENSES | Loan 3545 | 18 Jan 2021 | PNG POWER LTD | P.O BOX 1105, BOROKO, NCD PAPUA NEW GUINEA | Energy Division of the Dept of Petroleum & Energy | CONSULTANCY | 513,673.41 | 513,673.41 |
| ENGINEERING, PROCUREMENT AND CONSTRUCTION OF WARANGOI HYDRO REFURBISHMENT PROJECT | Loan 3544 | 27 Nov 2018 | JV AG INVESTMENT LTD. & DONGFANG ELECTRIC INT | PO BOX 11, GORDONS, NCD PAPUA NEW GUINEA | Energy Division of the Dept of Petroleum & Energy | TURNKEY | 19,976,251.00 | 18,955,505.00 |
| ENGINEERING, PROCUREMENT AND CONSTRUCTION OF YONKI TOE OF DAM DAM (YTOD) SURGE TANK AND OTHER REMEDIAL WORKS | Loan 3544 | 27 Nov 2018 | JV AG INVESTMENT LTD. & DONGFANG ELECTRIC INT | PO BOX 11, GORDONS, NCD PAPUA NEW GUINEA | Energy Division of the Dept of Petroleum & Energy | TURNKEY | 10,715,578.00 | 10,338,009.00 |
| PROJECT SUPERVISION CONSULTANT | Loan 3545 | 08 Jan 2018 | MULTICONSULT ASA | NEDRE SKOYEN VEI 2, 0276 OSLO NORWAY | Energy Division of the Dept of Petroleum & Energy | CONSULTANCY | 1,894,974.00 | 1,983,582.00 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Town Electrification Investment Program - Tranche 2: Procurement Plan | Procurement Plans | Jun 2019 |