Papua New Guinea: Power Sector Development Project

Sovereign (Public) Project | 47356-002

The project will support the strengthening and expansion of the transmission and distribution system within the main power grids of PNG Power Limited (PPL) by: (i) expanding and upgrading transmission lines and substations in Gazelle, Ramu, and Port Moresby (POM); (ii) building new low and medium-voltage power distribution lines in Gazelle, Ramu and POM, and mini-grids in West New Britain; and (iii) strengthen the capacity of PPL, including in grid modeling and planning, procurement and implementation, utility operation, and financial management. PSDP will contribute to PNG's objective to connect 70% of its population to electricity by 2030 and will help advance sector reforms by strengthening the financial management capacity and governance structure of PPL.

Project Details

Project Name Power Sector Development Project
Project Number 47356-002
Country Papua New Guinea
Project Status Proposed
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Loan: Power Sector Development Program
Ordinary capital resources US$ 188.60 million
Loan: Power Sector Development Project
concessional ordinary capital resources lending / Asian Development Fund US$ 20.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Energy sector development and institutional reform

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will support the strengthening and expansion of the transmission and distribution system within the main power grids of PNG Power Limited (PPL) by: (i) expanding and upgrading transmission lines and substations in Gazelle, Ramu, and Port Moresby (POM); (ii) building new low and medium-voltage power distribution lines in Gazelle, Ramu and POM, and mini-grids in West New Britain; and (iii) strengthen the capacity of PPL, including in grid modeling and planning, procurement and implementation, utility operation, and financial management. PSDP will contribute to PNG's objective to connect 70% of its population to electricity by 2030 and will help advance sector reforms by strengthening the financial management capacity and governance structure of PPL.
Project Rationale and Linkage to Country/Regional Strategy PNG has one of the lowest electricity access rates in the region, with only 13% of households having access to electricity. This constrains economic growth and contributes to poverty and inequality in both urban and rural areas. PNG has a total of 600 megawatts (MW) installed generation capacity. PPL, the state-owned enterprise (SOE), manages generation, transmission, and distribution of about 320 MW, including three main grids (Gazelle, POM, and Ramu), which only supply the main urban centers, and 19 geographically isolated independent power grids servicing provincial centers. The mining industry generates the remaining 280 MW as captive power for their own consumption. The majority of provincial centers are supplied entirely through diesel generation, resulting in high generation costs and a low-quality power supply. Lack of access to electricity also affects women's economic empowerment and has particular impacts on women.
Impact Socio-economic conditions improved
Outcome Consumption of clean and reliable power supply in the project areas improved.
Outputs

Transmission network upgraded and expanded

Distribution network expanded

Capacity building strengthened

Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Lee, Woo Yul
Responsible ADB Department Pacific Department
Responsible ADB Division PAEN
Executing Agencies
Department of Treasury
6/F The Treasury Building, Lamana Road
P.O Box 542, Waigani Drive, NCD
Papua New Guinea
Energy Division of the Department of Petroleum and Energy
P.O. Box 494
Waigani, NCD
Papua New Guinea
Timetable
Concept Clearance 22 Nov 2017
Fact Finding 01 Dec 2020 to 11 Dec 2020
MRM 28 Jul 2021
Approval -
Last Review Mission -
Last PDS Update 29 Sep 2017

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.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
Construction Supervision Consultant (CSC) Firm - Consulting Closed 15 Jun 2021 14 Jul 2021
Financial Specialist Individual - Consulting Closed 14 Feb 2019 20 Feb 2019

Contracts Awarded

No contracts awarded for this project were found


Procurement Plan

None currently available.