Development and sustainability of infrastructure is a key pillar of the Papua New Guinea Government's Medium-Term Development Strategy. Roads are an important link connecting the country's natural resources to its people, markets and ports, and thus play a critical role in economic development and in reducing poverty. PNG's 8,700 kilometers (km) of national roads constitute the primary network linking the provincial capitals and main population and economic centers. Provincial and district roads (totaling about 10,000 km) provide the secondary and tertiary links. Two major constraints impede improvement and sustainability of the road network. The first is lack of maintenance. About half of the roads in PNG and 70% of the roads in the Highlands region remain in poor condition due to the absence of regular maintenance.
|Project Name||Improving Road User Charges and Private Sector Participation in Road Development|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Transport - Road transport (non-urban) - Transport policies and institutional development
|Gender Equity and Mainstreaming|
|Description||Development and sustainability of infrastructure is a key pillar of the Papua New Guinea Government's Medium-Term Development Strategy. Roads are an important link connecting the country's natural resources to its people, markets and ports, and thus play a critical role in economic development and in reducing poverty. PNG's 8,700 kilometers (km) of national roads constitute the primary network linking the provincial capitals and main population and economic centers. Provincial and district roads (totaling about 10,000 km) provide the secondary and tertiary links. Two major constraints impede improvement and sustainability of the road network. The first is lack of maintenance. About half of the roads in PNG and 70% of the roads in the Highlands region remain in poor condition due to the absence of regular maintenance. Without routine maintenance, improved roads quickly fall into disrepair, leading to poor road conditions, longer journey times, higher vehicle operating costs and isolation of rural communities. Consequently, significant national income from export of agricultural products and other businesses is lost and social conditions worsen, exacerbating the problems of social unrest and lack of security. Under the National Road Authority Act of 2003, a national road authority (NRA) was established to manage and maintain the national road network, using revenues from road user charges. The Government is committed to expand maintenance financing through road user charges as provided for under the NRA Act. The second impediment to the improvement and sustainability of the road network is the lack of skilled national and international contractors to undertake road improvement and maintenance works. This TA has been designed to address both these constraints.|
|Project Rationale and Linkage to Country/Regional Strategy||The impact of the TA will be sustainable financing for road maintenance that will facilitate improved access to ports, markets and livelihood opportunities. This will improve road conditions, reduce travel time and transport costs, and will contribute to overall economic development. The outcome of the TA will be the establishment of a functioning system for collection of road user charges to finance road maintenance needs. Another outcome will be increased competition and increasing predictability in road infrastructure contracts.|
|Impact||Sustainable financing of road maintenance|
|Description of Outcome||
(i) Functioning system of road user charges (RUCs) established for road maintenance financing
(ii) Competitive procurement of road development and maintenance contracts
|Progress Toward Outcome||The recommendations for increase in road user charges will support establishment of a well functioning road maintenance system.|
|Description of Project Outputs||
1. Expansion of the existing RUCs to improve resources for the road fund
2. Increase in the number of contractors interested in bidding on road improvement and maintenance contracts
|Status of Implementation Progress (Outputs, Activities, and Issues)||Potential sources for road maintenance financing have been identified, recommendation prepared to enhance road user charges, draft legislation and detailed implementation plan have been prepared for increasing road user charges.|
|Geographical Location||Papua New Guinea|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||Consulting Services yet to be determined.|
|Responsible ADB Officer||Khan, Sarosh I.|
|Responsible ADB Department||Pacific Department|
|Responsible ADB Division||Transport, Energy and Natural Resources Division, PARD|
National Road Authority (NRA)
Mogoro Motu Building, P.O. Box 1530
Port Moresby, Papua New Guinea
|Concept Clearance||15 Apr 2009|
|Fact Finding||21 Apr 2009 to 30 Apr 2009|
|Approval||08 Dec 2009|
|Last Review Mission||-|
|PDS Creation Date||16 Apr 2009|
|Last PDS Update||30 Sep 2013|
|Approval||Signing Date||Effectivity Date||Closing|
|08 Dec 2009||13 Jan 2010||13 Jan 2010||31 Dec 2011||30 Nov 2013||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|800,000.00||0.00||200,000.00||0.00||0.00||0.00||1,000,000.00||08 Dec 2009||675,031.55|
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|Title||Document Type||Document Date|
|Improving Road User Charges and Private Sector Participation in Road Development: Technical Assistance Completion Report||TA Completion Reports||Jun 2014|
|Improving Road User Charges and Private Sector Participation in Road Development||Technical Assistance Reports||Dec 2009|
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