Papua New Guinea: Power Sector Development Project

Sovereign 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; (ii) building new low- and medium-voltage power distribution lines in Gazelle, Ramu, and Port Moresby, and mini grids in West New Britain; and (iii) strengthening the capacity of PPL, including in grid modelling and planning, procurement and implementation, utility operation, and financial management. The project will contribute to PNG's objective of connecting 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 Officer
    Lee, Woo Yul
    Pacific Department
    Request for information
  • Approval Date
    15 June 2022
  • Country/Economy
    Papua New Guinea
  • Sector
    • Energy
Project Name Power Sector Development Project
Project Number 47356-002
Country / Economy Papua New Guinea
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant: Power Sector Development Project
Government of Australia US$ 12.80 million
Loan 4189-PNG: Power Sector Development Project
Ordinary capital resources US$ 188.60 million
Loan 4190-PNG: Power Sector Development Project
Concessional ordinary capital resources lending 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; (ii) building new low- and medium-voltage power distribution lines in Gazelle, Ramu, and Port Moresby, and mini grids in West New Britain; and (iii) strengthening the capacity of PPL, including in grid modelling and planning, procurement and implementation, utility operation, and financial management. The project will contribute to PNG's objective of connecting 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 rates of electricity access in the region, with only 13% of households having access. This stifles economic growth and exacerbates poverty and inequality in both urban and rural areas. The total installed generation capacity in PNG is 600 megawatts (MW). PPL is a state-owned enterprise (SOE) that manages generation, transmission, and distribution of about 320 MW, including three main grids (Gazelle, Port Moresby, and Ramu) that supply the main urban centers and 19 geographically isolated independent power grids that service provincial centers. The mining industry generates the remaining 280 MW for its own use. Most provincial centers are entirely supplied by diesel generation, resulting in high generation costs and low-quality power supply. A lack of access to electricity also hampers women's economic empowerment.
Impact Socio-economic conditions improved
Project Outcome
Description of Outcome Access to clean and reliable power supply in the project areas improved.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Transmission network upgraded and expanded

Distribution network expanded

Capacity strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
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
Business Opportunities
Consulting Services All consultants will be recruited according to ADB's Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Procurement All procurement of goods and works will be undertaken in accordance with ADB's Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
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
Timetable
Concept Clearance 22 Nov 2017
Fact Finding 01 Dec 2020 to 11 Dec 2020
MRM 28 Jul 2021
Approval 15 Jun 2022
Last Review Mission -
Last PDS Update 15 Jun 2022

Loan 4189-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Jun 2022 31 Aug 2022 01 Dec 2022 31 Dec 2027 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 192.70 Cumulative Contract Awards
ADB 188.60 04 Jul 2022 0.00 0.00 0%
Counterpart 4.10 Cumulative Disbursements
Cofinancing 0.00 04 Jul 2022 0.00 0.00 0%

Loan 4190-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Jun 2022 31 Aug 2022 01 Dec 2022 31 Dec 2027 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 40.00 Cumulative Contract Awards
ADB 20.00 04 Jul 2022 0.00 0.00 0%
Counterpart 20.00 Cumulative Disbursements
Cofinancing 0.00 04 Jul 2022 0.00 0.00 0%

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

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.

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Tenders

Tender Title Type Status Posting Date Deadline
4189/4190-PNG: Power Sector Development Project [Package N° 1] Invitation for Bids Active 21 Jun 2022 22 Aug 2022
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