Papua New Guinea : Sustainable Highlands Highway Investment Program

Sovereign Project | 48444-002

The Highlands region of Papua New Guinea (PNG) consists of seven landlocked provinces where approximately 40% of the country's population resides, most of whom are involved in rural smallholder agricultural production. Aside from abundant and underemployed labor resources, the region is endowed with agricultural and mineral resources which serve as an engine of growth for the national economy. Characterized by relative high levels of the national agricultural production of fresh produce and cash crops, mainly coffee, tea, and cocoa, the region contributes a third of gross domestic product; while the region's mineral and petroleum resources account for nearly 80% of national exports. The 1,200 km long 2-lane national Highlands Highway is the lifeline for the Highlands region connecting 1,800 km of regional and feeder roads and servicing the region's people particularly those in the rural hinterland.

Project Details

  • Project Officer
    Ono, Masayoshi
    Pacific Department
    Request for information
  • Country/Economy
    Papua New Guinea
  • Modality
  • Sector
    • Transport
Project Name
Sustainable Highlands Highway Investment Program
Project Number
48444-002
Country / Economy
  • Papua New Guinea
Project Status
Active
Project Type / Modality of Assistance
  • Grant
Source of Funding / Amount
MFF Facility Concept 0099-PNG: Sustainable Highlands Highway Investment Program (formerly Multipartner Financing Facility for the Highlands Highway)
Source Amount
Government of Australia US$ 11.50 million
MFF Facility Concept 0099-PNG: Sustainable Highlands Highway Investment Program (formerly Multipartner Financing Facility for the Highlands Highway)
Source Amount
Ordinary capital resources US$ 610.00 million
Asian Development Fund US$ 70.00 million
Strategic Agendas
  • Environmentally sustainable growth
  • Inclusive economic growth
Drivers of Change
  • Gender Equity and Mainstreaming
  • Governance and capacity development
  • Knowledge solutions
  • Partnerships
Sector / Subsector
  • Transport / Road transport (non-urban) - Transport policies and institutional development - Urban roads and traffic management

Gender
Some gender elements
Description
The Highlands region of Papua New Guinea (PNG) consists of seven landlocked provinces where approximately 40% of the country's population resides, most of whom are involved in rural smallholder agricultural production. Aside from abundant and underemployed labor resources, the region is endowed with agricultural and mineral resources which serve as an engine of growth for the national economy. Characterized by relative high levels of the national agricultural production of fresh produce and cash crops, mainly coffee, tea, and cocoa, the region contributes a third of gross domestic product; while the region's mineral and petroleum resources account for nearly 80% of national exports. The 1,200 km long 2-lane national Highlands Highway is the lifeline for the Highlands region connecting 1,800 km of regional and feeder roads and servicing the region's people particularly those in the rural hinterland. The highway traverses the Highlands region connecting it to the coastal provinces and the country's main port in Lae.
Project Rationale and Linkage to Country/Regional Strategy
Access to basic services and the movement of goods and people is heavily reliant on the Highlands Highway. The mountainous terrain, poor highway conditions owing to a lack of systematic and consistent maintenance, coupled with washouts and landslides common during the rainy season make the highway unreliable and impassable at times. With climate change the frequency of extreme rain events are projected to increase. At present, more than 70% of the highway is in fair or poor condition, while for 90% of the road length, the safety rating for vehicle occupants and pedestrians is two star and below. In its current state, the road conditions pose serious road safety hazards to users and pedestrians, with levels of fatalities and injuries far in excess of comparable countries in Asia and the Pacific. High-potential agricultural products from the region bear high trade costs, limiting access to domestic and international markets. Poor road conditions and lack of adequate transport accessibility and services infrastructure such as bus stations and rest stops, and absence of logistic facilities for agricultural products restrict the development of value chains needed for perishable and high value products. Given the preponderance of rural population involved in agricultural livelihood activities, the present condition of the Highlands Highway is a major constraint hindering the region's future social and economic development and opportunities for sustainable and inclusive growth.
Impact

Increased opportunity for equality and prosperity in rural areas (Development Strategic Plan, 2010-2030)

Attainment of well-integrated, safe, affordable, and financially and environmentally sustainable transport systems that efficiently serve the economy and people of PNG (National Transport Strategy, 2014-2030)

Improved access to health and education, and living standards of the people of PNG (National Strategy for Responsible Sustainable Development for Papua New Guinea)

Project Outcome

Description of Outcome

Increased efficiency and safe movement of people, goods, and services between the Highlands Region and markets

Progress Toward Outcome

1. PMO Construction contract awarded in Q4 2018. PMO construction contract was awarded in Q4 2018. The construction of the PMO building was completed in May 2020. PMO and some DOW staff currently using the building.

2. Under Tranche 1 3 civil works contracts awarded in Q4 2018. Civil Works substantially completed with overall physical progress at 99.14%.

Implementation Progress

Description of Project Outputs

The 430 kilometer of two-lane rural Highlands Highway from Lae Nadzab airport to Kagamuga airport in Mt Hagen, is rehabilitated, upgraded, and effectively maintained

Road safety on the national Highlands Highway increased

Transport logistics and services in the Highlands Region improved

Institutional capacity of the DOW to deliver the investment program and sustain its benefits strengthened

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

The Construction Supervision Consultant (CS2) has completed the Detailed Engineering Design (DED) for the Goroka bypass and submitted to the PMU.

Three (3) civil works contracts awarded in Q4 2018 (CW1, CW2 and RIC). The three Contractor's mobilized to site and civil works is ongoing. Physical progress for CW1 is 99.28%, CW2 is 98.40% and RIC is 98.89%. All civil works are substantially completed.

Three (3) civil works contracts awarded in Q4 2018 (CW1, CW2 and RIC). The three Contractor's mobilized to site and civil works is ongoing. Physical progress for CW1 is 99.28%, CW2 is 98.40% and RIC is 98.89%. All civil works are substantially completed.

The Bridge works have commenced under Tranche 2. All Bridge contracts have been awarded in December 2022 and commenced designs and construction.

Civil Works contracts under Tranche 1 include construction of bus stops and bus shelters as part of the improvement works. 3 bus bays have been constructed already and 6 more are under construction along the sections of the Highlands Highway.

Six (6) markets will be constructed along the Highlands Highway. Sites have been identified and cleared for construction. Three (3) markets are under construction while the other 3 markets will commence once site clearing is completed.

About 36,115 out of the 169,925 (21.2%) women along the project corridor are engaged by the three civil works contractors. This exceeds the target 20% for this indicator.

Women are employed as sign bearers, camp and administration workers and are engaged through community-based contracts on general road maintenance works.

Three (3) civil works contracts awarded in Q4 2018 (CW1, CW2 and RIC). The three Contractor's mobilized to site and civil works is ongoing. Physical progress for CW1 is 99.28%, CW2 is 98.40% and RIC is 98.89%. All civil works are substantially completed.

Daulo Pass is under the CW1 section which is 99.28% completed.

A Road Safety Specialist was recruited in Q4 2019.

Critical Road safety concerned areas along the highway have been identified and designs were adopted to ensure safety to road users.

Other road safety features are being designed as well.

A total of 12km of footpath will be constructed (4km for each of the 3 sites). So far about 6km have been constructed under CW1 and CW2. The other 6km balance of foot path is under construction.

A Road Safety Specialist was recruited in Q4 2019. Community-based road safety pilot sites (Minj and Henganofi) have been surveyed by the Road Safety Specialist and PMO Social Team and the plans are being prepared.

Road Safety awareness plan and pamphlet preparation works are completed.

Not yet due.

Not yet due.

Training ongoing for selected fields, engineering and safeguards.

PMO construction contract was awarded in Q4 2018. The construction of the PMO building was completed in May 2020 and is now occupied.

Geographical Location
Nation-wide

Summary of Environmental and Social Aspects

Environmental Aspects
Category B. The project will involve rehabilitation, upgrade and maintenance of the existing road. The sites are not in protected areas and have no particular or special value for biodiversity conservation. Impacts will be site specific and can be readily mitigated.
Involuntary Resettlement
Category C. The project does involve land acquisition or resettlement since all works are in the existing government owned right of way. A due diligence report has been prepared for the project and a land acquisition and resettlement framework has been prepared for the investment program.
Indigenous Peoples
Category C. An IPP will not be required, however, IPPF was prepared in event of need for an IPP in future tranches. The project will ensure that local communities actively participate and receive culturally appropriate benefits.

Stakeholder Communication, Participation, and Consultation

During Project Design
Stakeholders including government, civil societies, and development partners were consulted during the project design phase.
During Project Implementation
During implementation, government, civil societies, and development partners will continue to be consulted and will directly participate in implementation.

Business Opportunities

Consulting Services
TBD pending approval
Procurement
TBD pending approval

Contact

Responsible ADB Officer
Ono, Masayoshi
Responsible ADB Department
Pacific Department
Responsible ADB Division
Papua New Guinea Resident Mission (PNRM)

Timetable

Concept Clearance
13 May 2016
Fact Finding
05 Dec 2016 to 16 Dec 2016
MRM
21 Mar 2017
Approval
22 Jun 2017
Last Review Mission
-
Last PDS Update
31 Jan 2024

Funding

MFF Facility Concept 0099-PNG

Financing Plan
  Total (Amount in US$ million)
Project Cost 840.00
ADB 680.00
Counterpart 148.50
Cofinancing 11.50
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards - 0.00 0.00 %
Cumulative Disbursements - 0.00 0.00 %

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.


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

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Sustainable Highlands Highway Investment Program: Procurement Plan Procurement Plans May 2017