Papua New Guinea : Sustainable Highlands Highway Investment Program
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
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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 |
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| Project Status | Active | ||||||||||
| 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 |
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| Sector / Subsector | Transport / Road transport (non-urban) - Transport policies and institutional development - Urban roads and traffic management |
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| 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) |
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| Project Outcome | |
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| 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. 2. 3 civil works contracts awarded in Q4 2018. |
| 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) | PMO construction contract was awarded in Q4 2018. To be conducted once PMO is fully established. Not yet due. 3 civil works contracts awarded in Q4 2018. Not yet due. 3 civil works contracts awarded in Q4 2018. Contracts include construction of bus stops and bus shelters as part of the improvement works. 3 civil works contracts awarded in Q4 2018. Contracts include construction of roadside markets as part of the improvement works. 3 civil works contracts awarded in Q4 2018. This will be part of the Contractors obligations. Not yet due. Not yet due. Not yet due. Not yet due. Not yet due. Not yet due. |
| Geographical Location | Nation-wide |
| Summary of Environmental and Social Aspects | |
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| 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 | |
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| Consulting Services | TBD pending approval |
| Procurement | TBD pending approval |
| Responsible ADB Officer | Ono, Masayoshi |
| Responsible ADB Department | Pacific Department |
| Responsible ADB Division | Papua New Guinea Resident Mission (PNRM) |
| Timetable | |
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| 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 | 12 Jun 2019 |
MFF Facility Concept 0099-PNG
| Financing Plan | Loan Utilization | ||||
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| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 840.00 | Cumulative Contract Awards | |||
| ADB | 680.00 | - | 0.00 | 0.00 | % |
| Counterpart | 148.50 | Cumulative Disbursements | |||
| Cofinancing | 11.50 | - | 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.
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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.
| Title | Document Type | Document Date |
|---|---|---|
| Sustainable Highlands Highway Investment Program: Land Acquisition and Resettlement Framework (Updated) | Resettlement Frameworks | May 2020 |
| Sustainable Highlands Highway Investment Program: Indigenous Peoples Planning Framework | Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks | Mar 2017 |
| Sustainable Highlands Highway Investment Program - Tranche 1: Social Safeguards Due Diligence Report | Safeguards Due Diligence Reports | Mar 2017 |
| Sustainable Highlands Highway Investment Program: Land Acquisition and Resettlement Framework | Resettlement Frameworks | Mar 2017 |
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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Papua New Guinea (PNG) Sustainable Highlands Highway Investment Program cofinanced by ADB and Australia promotes gender equality.
Connecting Papua New Guinea through Reliable Transport Networks
Papua New Guinea needs reliable national transport networks to unlock its economic potential.ADB Approves New Facility to Upgrade, Maintain PNG Highlands Highway
ADB Board of Directors have approved a multitranche financing facility not exceeding $866.5 million to Papua New Guinea (PNG) to fund the rehabilitation, upgrade, and maintenance of the country's Highlands Highway.
Tenders
Contracts Awarded
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Sustainable Highlands Highway Investment Program: Procurement Plan | Procurement Plans | May 2017 |