Papua New Guinea : Pilot Border Trade and Investment Development Project
The Project will remove the infrastructure bottleneck along the northern transport corridor connecting West Sepik Province (WSP) of Papua New Guinea and Papua Province of Indonesia, and improve the investment environment in WSP to enable WSP to capture trade opportunities for development. It will finance (i) the border facilitites at Wutung, (ii) consulting services for project implementation and construction supervision, (iii) capacity development, and (iv) a social development program including HIV/AIDS prevention.
Project Details
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Project Officer
Villareal, Maria Theresa J.
Pacific Department
Request for information -
Country/Economy
Papua New Guinea -
Modality
-
Sector
- Industry and trade
Related Projects
Project Name | Pilot Border Trade and Investment Development Project | ||||||||
Project Number | 42135-013 | ||||||||
Country / Economy | Papua New Guinea |
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Project Status | Closed | ||||||||
Project Type / Modality of Assistance | Loan Technical Assistance |
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Source of Funding / Amount |
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Strategic Agendas | Inclusive economic growth Regional integration |
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Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development |
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Sector / Subsector | Industry and trade / Trade and services |
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Gender | Some gender elements | ||||||||
Description | The Project will remove the infrastructure bottleneck along the northern transport corridor connecting West Sepik Province (WSP) of Papua New Guinea and Papua Province of Indonesia, and improve the investment environment in WSP to enable WSP to capture trade opportunities for development. It will finance (i) the border facilitites at Wutung, (ii) consulting services for project implementation and construction supervision, (iii) capacity development, and (iv) a social development program including HIV/AIDS prevention. | ||||||||
Project Rationale and Linkage to Country/Regional Strategy | WSP is one of the poorest provinces in PNG in terms of both economic and social development. However, it has potential to develop itself and drive the development of PNG's northern coastal region if it can capture the opportunities offered by Asia, particularly the neighboring Papua Province of Indonesia, which provides 25%-40% cheaper products and services and is in demand of PNG products. | ||||||||
Impact | West Sepik Province (WSP) developed into a dynamic growth centre. |
Project Outcome | |
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Description of Outcome | The outcome of the Project will be the improved business environment in WSP. |
Progress Toward Outcome | New Border administration office complex and staff housing infrastructure completed in Oct 2015. To promote the idea of a "One-Stop-Shop" for trade, investment and border processing, senior officals from selected border management agencies undertook a study tour in November 2015 to land border crossings of four Great Mekong Sub-region countries namely; Cambodia, Vietnam, Lao PR and Thailand. The team met and discussed with similar border agencies of the four countries. The EA continues to support capacity development and institutional building of its staff and the WSP Administration staff through skills enhancement training and hands-on training by its consultants engaged under the Project. PNRM advised the EA (March 2018) and the Government (June 2018) of Project Loan closing date of 30 June 2018. |
Implementation Progress | |
Description of Project Outputs | The Project will produce the following outputs: (i) border facilities including customs, immigration, and quarantine facilities; resident housing, and markets; (ii) Investment policy legislation for WSP approved and made effective;(iii) Telecommunication strategy for WSP developed and approved by the Government; (iv) Border Development Authority (BDA) office in Vanimo becoming a one-stop service office for promoting trade investment, and tourism for WSP;(v) Human capital base in the areas of trade and investment promotion, business entrepreneurship and administration, information technology, and Indonesian language proficiency broadened and; (vi) Human development in terms of health and education improved in five border villages |
Status of Implementation Progress (Outputs, Activities, and Issues) | (i) New Border Administration office complexes and 37 staff houses completed by October 2015. (ii) The Investment Policy Advisor submitted the final Mid-Term Report to DCI and BDA in December 2012. (iii) A telecommunication advisor submitted his final Study for Telecommunication Strategy for WSP to BDA and DCI in June 2011. Report recommendations presented to the relevant government agencies including the Project Steering Committee. (iv) BDA established the provincial management office at Vanimo, WSP Provincial Administration with a Field Project Manager. PMO implementing the capacity development and Social Development Program (SDP). (v) Under the Capacity Development Component, BDA has trained 192 locals from the five impacted villages on various entrepreneurial skills development training with (57 female). ADB approved BDA's 2017 training plan. Procurement of Institution to deliver Human Resource Management Course and Information Technology and Business Studies courses is completed. Contracts to be signed and courses will began early Q2. Procurement for Consultants/Institutions for the other training courses is in progress. (vi) BDA, with the support of financial consultant, has developed Modified Conditional Cash Transfers (MCCT) guidelines to implement the Social Development Program. ADB approved these guidelines in July 2011. Implementation of the following five interventions under the SDP is in Progress. BDA revised the implementation process for several interventions to make them more community responsive. (1) Power Connection for Wutung Village Household: Original scope of intervention was to supply and install MSKs. However, BDA found that all existing lines needed upgrading before private lines could be connected to the MSKs. To date, all 145 households have been connected to electricity (2) Sanitation: The project will construct shared septic tanks and toilets to improve the environment and people's health. BDA purchased and transported the construction materials to Wutung. 8 blocks comprising 4 toilets and a shower are constructed. BDA is working with the LOs to complete construction of the remaining blocks. Through the LOs request, BDA is improving the water supply network which will supply water to the nearby villages and also the new border complex and housing areas. (3) Provision of School Fee Subsidy to at-risk children: Under this intervention, BDA provides financial assistance to at-risk children to encourage them to attend school up to grade 8. BDA has made payments to 488 at-risk children since March 2012. (4) Financial assistance to pregnant women for regular check-ups: Under this the project will assist pregnant mothers to go for medical check-ups. BDA has made payments to 22 pregnant mothers since March 2012. Due to the traveling distance and associated problems, the community has agreed with BDA to renovate existing aid post in the village to provide clinical facilities for the pregnant mothers and also the whole community. The design and scoping of the Aipost was completed in consultation with the health authorities. BDA to commence construction after confirming contract arrangements and land issues with LOs. |
Geographical Location | West Sepik Province, Wutung |
Safeguard Categories | |
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Environment | B |
Involuntary Resettlement | C |
Indigenous Peoples | B |
Summary of Environmental and Social Aspects | |
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Environmental Aspects | No major issue identified. |
Involuntary Resettlement | The project will not cause loss of housing, strips of land, crops, trees or other fixed assets. Consultation with stakeholders ongoing. |
Indigenous Peoples | No major issue identified. |
Stakeholder Communication, Participation, and Consultation | |
During Project Design | Extensive consultations with the relevant government agencies, provincial administration and project beneficiaries and potential affected parties have been carried out during project designs under project preparatory technical assistance. |
During Project Implementation | Development of the investment legislation and telecommunication strategy for WSP will require further consultations with PNG national and provincial government, Papua provincial government of Indonesia, business communities on both sides, and donor agencies. Capacity building will also require stakeholder consultation and participation to (i) select training programs, (ii) select training institutes, and (iii) define candidate selection criteria. |
Business Opportunities | |
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Consulting Services | International and national consulting services will be required for (i) support to BDA and the PMO in the area of contract management, investment and tourism promotion, capacity development, and socioeconomic monitoring; (ii) construction supervision and environment monitoring; and (iii) HIV/AIDS prevention. The Project will fund a total of 350 person-months of consulting services (128 international; 222 national). |
Procurement | Civil works will be divided into two packages and will follow international competitive bidding (ICB) single-stage, one-envelope procedures, as the cost estimates for both contracts exceed $3 million-the ICB threshold for PNG. Equipment is grouped into eight packages. ICB will be followed for contracts estimated above $500,000. Contracts below $100,000 will following shopping procedures. National competitive bidding will be used for contracts between $100,000 and $500,000. |
Responsible ADB Officer | Villareal, Maria Theresa J. |
Responsible ADB Department | Pacific Department |
Responsible ADB Division | Papua New Guinea Resident Mission (PNRM) |
Executing Agencies |
Border Development Authority |
Timetable | |
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Concept Clearance | 23 Jul 2009 |
Fact Finding | 13 May 2009 to 29 May 2009 |
MRM | 17 Aug 2009 |
Approval | 27 Nov 2009 |
Last Review Mission | - |
Last PDS Update | 28 Sep 2018 |
Loan 2591-PNG
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
27 Nov 2009 | 28 Jan 2010 | 26 Mar 2010 | 30 Jun 2018 | - | 19 Jun 2020 |
Financing Plan | Loan Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 25.00 | Cumulative Contract Awards | |||
ADB | 25.00 | 17 Jun 2022 | 21.70 | 0.00 | 100% |
Counterpart | 0.00 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 17 Jun 2022 | 21.70 | 0.00 | 100% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | - | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
TA 7393-PNG
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
27 Nov 2009 | 04 Jan 2010 | 04 Jan 2010 | 31 Dec 2014 | 31 Dec 2015 | 18 May 2016 |
Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
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ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
Gov | Beneficiaries | Project Sponsor | Others | |||||
900,000.00 | 0.00 | 160,000.00 | 0.00 | 0.00 | 0.00 | 1,060,000.00 | 17 Jun 2022 | 862,623.62 |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | - | 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.
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.
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Title | Document Type | Document Date |
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Pilot Border Trade and Investment Development Project: Project Completion Report | Project/Program Completion Reports | Nov 2020 |
Trade and Investment Institutional Strengthening: Technical Assistance Completion Report | TA Completion Reports | Jul 2016 |
Loan Agreement for Pilot Border Trade and Investment Development Project between Independent State of Papua New Guinea and ADB - signed 28 January 2010 | Loan Agreement (Special Operations) | Jan 2010 |
Pilot Border Trade and Investment Development Project | Procurement Plans | Nov 2009 |
Pilot Border Trade and Investment Development Project | Reports and Recommendations of the President | Nov 2009 |
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 |
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Pilot Border Trade and Investment Development Project: Environmental Monitoring Report (July-December 2016) | Environmental Monitoring Reports | Jan 2017 |
Pilot Border Trade and Investment Development Project: Environmental Monitoring Report (January-June 2016) | Environmental Monitoring Reports | Jul 2016 |
Pilot Border Trade and Investment Development Project: Environmental Monitoring Report (February - March 2015) | Environmental Monitoring Reports | Apr 2015 |
Pilot Border Trade and Investment Development Project: Environmental Monitoring Report (March 2013) | Environmental Monitoring Reports | Mar 2013 |
Pilot Border Trade and Investment Development Project: Environmental Monitoring Report (January 2013) | Environmental Monitoring Reports | Jan 2013 |
Evaluation Documents See also: Independent Evaluation
Title | Document Type | Document Date |
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Papua New Guinea: Pilot Border Trade and Investment Development Project | Validations of Project Completion Reports | Aug 2021 |
Related Publications
None currently available.
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
Contracts Awarded
Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
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Wutung Rural Electrification Project Labour, Tools and Equipment Supply Contract | Loan 2591 | 27 Feb 2017 | Certway Power Ltd. | P.O Box 5010, Boroko Ncd Papua New Guinea | Border Development Authority | 102,375.01 | 102,635.00 |
Procurement Plan
Title | Document Type | Document Date |
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Pilot Border Trade and Investment Development Project | Procurement Plans | Nov 2009 |