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 Name
Power Sector Development Project
Project Number
47356-002
Country / Economy
  • Papua New Guinea
Project Status
Active
Project Type / Modality of Assistance
  • Grant
  • Loan
Source of Funding / Amount
Grant: Power Sector Development Project
Source Amount
Government of Australia US$ 12.80 million
Loan 4189-PNG: Power Sector Development Project
Source Amount
Ordinary capital resources US$ 188.60 million
Loan 4190-PNG: Power Sector Development Project
Source Amount
Concessional ordinary capital resources lending US$ 20.00 million
Loan: Power Sector Development Project
Source Amount
Government of Australia US$ 59.50 million
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP4: Making cities more livable
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector
  • Energy / Energy sector development and institutional reform

Gender
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
Ongoing recruitment of construction supervision consultant (CSC). Awaiting the submission of FBER for Package N 1: Design, Supply, Installation and Commissioning of Transmission Line and Substation Works for Ramu, Port Moresby and Gazelle Grids and TBER for Package N 2: Design, Supply, Installation and Commissioning of Medium and Low Voltage Distribution Line and Household Connection Works for Ramu - Madang, Port Moresby, and West New Britain Distribution Grids.

Implementation Progress

Description of Project Outputs

Transmission network upgraded and expanded

Distribution network expanded

Capacity strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)

Awaiting the submission of FBER for Package N 1: Design, Supply, Installation and Commissioning of Transmission Line and Substation Works for Ramu, Port Moresby and Gazelle Grids.

Awaiting the submission of FBER for Package N 1: Design, Supply, Installation and Commissioning of Transmission Line and Substation Works for Ramu, Port Moresby and Gazelle Grids.

Awaiting the submission of FBER for Package N 1: Design, Supply, Installation and Commissioning of Transmission Line and Substation Works for Ramu, Port Moresby and Gazelle Grids.

Awaiting the submission of FBER for Package N 1: Design, Supply, Installation and Commissioning of Transmission Line and Substation Works for Ramu, Port Moresby and Gazelle Grids.

Awaiting TBER submission for Package N 2 : Design, Supply, Installation and Commissioning of Medium and Low Voltage Distribution Line and Household Connection Works for Ramu - Madang, Port Moresby and West New Britain Distribution Grids

Awaiting TBER submission for Package N 2 : Design, Supply, Installation and Commissioning of Medium and Low Voltage Distribution Line and Household Connection Works for Ramu - Madang, Port Moresby and West New Britain Distribution Grids

Awaiting TBER submission for Package N 2 : Design, Supply, Installation and Commissioning of Medium and Low Voltage Distribution Line and Household Connection Works for Ramu - Madang, Port Moresby and West New Britain Distribution Grids

CSC contract negotiation is ongoing

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).

Contact

Responsible ADB Officer
Baum, Peter C.
Responsible ADB Department
Sectors Group
Responsible ADB Division
Energy Sector Office (SG-ENE)
Executing Agencies
Department of Treasury

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
31 Oct 2023

Funding

Loan 4189-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Jun 2022 23 Sep 2022 24 Mar 2023 31 Dec 2027 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 208.60
ADB 188.60
Counterpart 20.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 0.00 0.00 0%
Cumulative Disbursements 06 Jun 2024 0.41 0.00 0%

Loan 4190-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Jun 2022 23 Sep 2022 24 Mar 2023 31 Dec 2027 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 20.00
ADB 20.00
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 0.00 0.00 0%
Cumulative Disbursements 06 Jun 2024 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.

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.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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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.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
4189/4190-PNG: Power Sector Development Project [Package N° 2] Invitation for Bids Closed
4189/4190-PNG: Power Sector Development Project [Package N° 1] Invitation for Bids Closed
Construction Supervision Consultant (CSC) Firm - Consulting Closed
Financial Specialist Individual - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Power Sector Development Project: Procurement Plan Procurement Plans Mar 2022