The government has requested ADB to finance the investment program to support the government's target of 70% of household's electrification by 2030. The proposed investment program is in line with ADB's Country Partnership Strategy (2016-2020) which prioritize energy as key area of support in renewable energy generation, improving transmission and distribution efficiencies and its expansion to peri-urban areas. The proposed investment program will respond to government's national development and sector strategies by promoting sustainable development in peri urban and rural areas and by increasing the grid penetration from 12% to approximately 19% by 2028 and replacing diesel generation with renewable energy sources in provincial centers. The investment program will also enhance operational efficiency of PPL and address institutional capacities, policy framework and facilitate private sector mobilization in off-grid areas.
| Project Name | Power Sector Development Project | ||||||
| Project Number | 47356-002 | ||||||
| Country | Papua New Guinea |
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| Project Status | Proposed | ||||||
| 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 / Energy sector development and institutional reform |
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| Gender Equity and Mainstreaming | Effective gender mainstreaming | ||||||
| Description | The government has requested ADB to finance the investment program to support the government's target of 70% of household's electrification by 2030. The proposed investment program is in line with ADB's Country Partnership Strategy (2016-2020) which prioritize energy as key area of support in renewable energy generation, improving transmission and distribution efficiencies and its expansion to peri-urban areas. The proposed investment program will respond to government's national development and sector strategies by promoting sustainable development in peri urban and rural areas and by increasing the grid penetration from 12% to approximately 19% by 2028 and replacing diesel generation with renewable energy sources in provincial centers. The investment program will also enhance operational efficiency of PPL and address institutional capacities, policy framework and facilitate private sector mobilization in off-grid areas. The impact of the program will be improved socio economic conditions and aligned with PNG Vision 2050. The outcome will be a consumption to clean and reliable power supply in the investment program areas improved. This will be achieved through following outputs: (i) transmission network strengthened and expanded in three main grid areas, (ii) distribution network expanded, (iii) renewable energy for provincial grids increased, (iv) capacity of monitoring system enhanced, (v) private sector investments in rural electrification mobilized, and (vi) Institutional support and capacity of EA/IAs, program beneficiaries and stakeholders enhanced. |
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| Project Rationale and Linkage to Country/Regional Strategy | About 12% of PNG's population has access to electricity, but grid penetration in provincial capitals is less than 4% with negligible access to electricity in rural areas. PNG' per capita consumption ratio of electricity is also one of the lowest in the world. Geographical spread coupled with rugged terrain and very thin population density, makes it more challenging to develop rural electrification infrastructure in the country. PNG has a total 600 megawatt (MW) of installed capacity generated by hydropower (40%), diesel (38%), gas fired (14%), and geothermal (8%). Out of the total generating capacity, 320 MW is managed by PNG Power Limited (PPL), the only government utility company responsible for the electricity generation, transmission and distribution. The remaining 280 MW is generated by the mining industry as captive power stations for their own consumption. There is no national grid in PNG, and therefore, the country is powered by three main grids (Port Moresby, Ramu and Gazelle) operated by PPL which only serves the main urban centers. In addition to these three main grids, provincial capitals are powered by inefficient loss making diesel based isolated grids (19 in total) which leaves no incentive for PPL to expand the grid further into rural areas. | ||||||
| Impact | Improved socio economic conditions and poverty reduction through increased utilization of clean and reliable electricity | ||||||
| Outcome | Consumption of clean and reliable power supply in the program areas improved. | ||||||
| Outputs | Transmission network strengthened and expanded Distribution network expanded Institutional support and capacity of PPL Monitoring Systems, EA/IAs, project beneficiaries and other stakeholders enhanced. |
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| Geographical Location | Nation-wide | ||||||
| Summary of Environmental and Social Aspects | |
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| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Responsible ADB Officer | Woo Lee |
| 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 | 18 Jun 2018 to 29 Jun 2018 |
| MRM | 26 Jul 2018 |
| 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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| Title | Document Type | Document Date |
|---|---|---|
| Power Sector Development Investment Program: Concept Paper | Concept Papers | Nov 2017 |
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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Evaluation Documents See also: Independent Evaluation
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Related Publications
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Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| 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.