Papua New Guinea: Power Sector Development Project
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
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Project Officer
Lee, Woo Yul
Pacific Department
Request for information -
Approval Date
15 June 2022 -
Country/Economy
Papua New Guinea -
Sector
- Energy
Related Projects
| Project Name | Power Sector Development Project | ||||||||||||||||
| Project Number | 47356-002 | ||||||||||||||||
| Country / Economy | Papua New Guinea |
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| Project Status | Approved | ||||||||||||||||
| Project Type / Modality of Assistance | Grant 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 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 |
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| 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 |
| 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 | 23 Sep 2022 | 31 Mar 2023 | 31 Dec 2027 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 208.60 | Cumulative Contract Awards | |||
| ADB | 188.60 | 07 Oct 2022 | 0.00 | 0.00 | 0% |
| Counterpart | 20.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 07 Oct 2022 | 0.00 | 0.00 | 0% |
Loan 4190-PNG
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 15 Jun 2022 | 23 Sep 2022 | 31 Mar 2023 | 31 Dec 2027 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 20.00 | Cumulative Contract Awards | |||
| ADB | 20.00 | 07 Oct 2022 | 0.00 | 0.00 | 0% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 07 Oct 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.
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.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
| Title | Document Type | Document Date |
|---|---|---|
| Loan Agreement (Ordinary Operations) for Loan 4189-PNG: Power Sector Development Project | Loan Agreement (Ordinary Resources) | Sep 2022 |
| Loan Agreement (Ordinary Operations [Concessional]) for Loan 4190-PNG: Power Sector Development Project | Loan Agreement (Ordinary Resources) | Sep 2022 |
| Project Agreement for Loan 4190-PNG: Power Sector Development Project | Project/Program Agreements | Sep 2022 |
| Power Sector Development Project: Report and Recommendation of the President | Reports and Recommendations of the President | May 2022 |
| Power Sector Development Project: Project Administration Manual | Project/Program Administration Manual | May 2022 |
| Power Sector Development Project: Gender Action Plan | Gender Action Plans | May 2022 |
| Power Sector Development Project: Procurement Plan | Procurement Plans | Mar 2022 |
| 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.
| Title | Document Type | Document Date |
|---|---|---|
| Power Sector Development Project: Ramu Lae and Ramu Madang Transmission Line Subprojects Resettlement Plan | Resettlement Plans | Mar 2021 |
| Power Sector Development Project: East New Britain Transmission Line Subprojects Resettlement Plan | Resettlement Plans | Mar 2021 |
| Power Sector Development Project: Distribution Lines Subproject Resettlement Plan | Resettlement Plans | Mar 2021 |
| Power Sector Development Project: Port Moresby Transmission Line Subproject Resettlement Plan | Resettlement Plans | Mar 2021 |
| Power Sector Development Project: Initial Environmental Examination | Initial Environmental Examination | Mar 2021 |
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.
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ADB, Australia, PNG Partner to Boost Access to Clean, Reliable, and Affordable Power
ADB has announced a $305 million project which will support the strengthening and expansion of electricity in Papua New Guinea.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| 4189/4190-PNG: Power Sector Development Project [Package N° 2] | Invitation for Bids | Active | 18 Nov 2022 | 23 Mar 2023 |
| 4189/4190-PNG: Power Sector Development Project [Package N° 1] | Invitation for Bids | Closed | 21 Jun 2022 | 28 Nov 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
| Title | Document Type | Document Date |
|---|---|---|
| Power Sector Development Project: Procurement Plan | Procurement Plans | Mar 2022 |