The Highlands region of Papua New Guinea (PNG) consists of seven landlocked provinces where approximately 40% of the 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 agricultural production of fresh produce and cash crops, mainly coffee, tea, and cocoa, the region contributes a third of the national 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 Name | Sustainable Highlands Highway Investment Program – Tranche 1 | ||||||||||||
| Project Number | 48444-004 | ||||||||||||
| Country | 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 Equity and Mainstreaming | Effective gender mainstreaming | ||||||||||||
| Description | The Highlands region of Papua New Guinea (PNG) consists of seven landlocked provinces where approximately 40% of the 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 agricultural production of fresh produce and cash crops, mainly coffee, tea, and cocoa, the region contributes a third of the national 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 | |
|---|---|
| Description of Outcome | Increased efficiency and safe movement of people, goods, and services between the Highlands Region and markets |
| Progress Toward Outcome | A. Procurement for POM Office ongoing. B. Procurement for Consulting Supervision and Civil Works packages are ongoing. C. Following consultants were recruited: Financial Management Specialist was recruited in December 2017. International Team Leader, Contract Management Specialist, Safeguards Specialist and Environment Specialist were recruited in July 2018. 2 Project Managers recruited in July 2018. Recruitment of International Head Secretariat is ongoing. |
| Implementation Progress | |
| Description of Project Outputs | 40% of the 430 km of the two-lane national Highlands Highway from Lae Nadzab airport to Kagamuga airport in Mt. Hagen will be rehabilitated, upgraded, and 430 km effectively maintained Road safety on the national Highlands Highway increased Institutional capacity of the DOW to deliver the investment program and sustain its benefits strengthened |
| Status of Implementation Progress (Outputs, Activities, and Issues) | 1) 40% of the 430 km of the two-lane national Highlands Highway from Lae Nadzab airport to Kagamuga airport in Mt. Hagen will be rehabilitated, upgraded, and 430 km effectively maintained: i) Procurement for POM Office ongoing. ii) Procurement for Consulting Supervision is in progress. BER evaluation stage. Contract expected to be awarded Q4 2018. iii) Procurement for Civil Works packages in progress. BER evaluation stage. Contract expected to be awarded Q4 2018. 2) Road safety on the national Highlands Highway increased: To be assessed after completion of road improvements. 3) Institutional capacity of the DOW to deliver the investment program and sustain its benefits strengthened: Individual consultants were recruited to assist and strengthen DOW capacity to deliver the investment program; Financial Management Specialist was recruited in December 2017. International Team Leader, Contract Management Specialist, Safeguards Specialist and Environment Specialist were recruited in July 2018. 2 Project Managers recruited in July 2018. Recruitment of International Head Secretariat is ongoing. |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | C |
| 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 | |
| Responsible ADB Officer | Luu, Khuong |
| Responsible ADB Department | Pacific Department |
| Responsible ADB Division | Papua New Guinea Resident Mission |
| Executing Agencies |
Department of Works [email protected] P.O. Box 1108 Boroko, NCD Papua New Guinea |
| Timetable | |
|---|---|
| Concept Clearance | - |
| Fact Finding | - |
| MRM | 21 Mar 2017 |
| Approval | 10 Jul 2017 |
| Last Review Mission | - |
| Last PDS Update | 21 Sep 2018 |
Grant 0538-PNG
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 10 Jul 2017 | 19 Jul 2017 | 08 Sep 2017 | 30 Jun 2022 | - | - |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 11.50 | Cumulative Contract Awards | |||
| ADB | 0.00 | 10 Jul 2017 | 0.00 | 3.96 | 34% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 11.50 | 10 Jul 2017 | 0.00 | 0.10 | 1% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | - | Satisfactory | - | - |
Loan 3547-PNG
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 10 Jul 2017 | 19 Jul 2017 | 08 Sep 2017 | 30 Jun 2022 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 316.00 | Cumulative Contract Awards | |||
| ADB | 272.00 | 10 Jul 2017 | 2.05 | 0.00 | 1% |
| Counterpart | 44.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 10 Jul 2017 | 0.36 | 0.00 | 0% |
Loan 3548-PNG
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 10 Jul 2017 | 19 Jul 2017 | 08 Sep 2017 | 30 Jun 2022 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 30.00 | Cumulative Contract Awards | |||
| ADB | 30.00 | 10 Jul 2017 | 0.00 | 0.00 | 0% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 10 Jul 2017 | 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 Public Communications Policy (PCP) 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 |
|---|---|---|
| Sustainable Highlands Highway Investment Program - Tranche 1: Procurement Plan | Procurement Plans | Dec 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 |
|---|---|---|
| Sustainable Highlands Highway Investment Program - Tranche 1: Social Safeguards Due Diligence Report | Safeguards Due Diligence Reports | Mar 2017 |
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Public Communications Policy (PCP) 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 |
|---|---|---|---|---|
| Project Engineer | Individual - Consulting | Active | 30 Oct 2018 | 14 Dec 2018 |
| Team Leader | Individual - Consulting | Closed | 04 Jul 2018 | 10 Jul 2018 |
| Head Secretariat (Civil Works Expert) | Individual - Consulting | Closed | 04 Jul 2018 | 10 Jul 2018 |
| Loan No. 3547/3548-PNG: Sustainable Highlands Highway Investment Program – Tranche 1 [CSTB No. 3792] | Invitation for Bids | Closed | 07 Jun 2018 | 11 Jul 2018 |
| Program Director | Individual - Consulting | Closed | 04 Jun 2018 | 17 Jun 2018 |
| Contract Management Specialist | Individual - Consulting | Closed | 27 Feb 2018 | 12 Mar 2018 |
| Social Safeguards Specialist (Land Acquisition and Resettlement) | Individual - Consulting | Closed | 27 Feb 2018 | 12 Mar 2018 |
| Environment Safeguards Specialist | Individual - Consulting | Closed | 27 Feb 2018 | 12 Mar 2018 |
| Environment Safeguards Expert #1 | Individual - Consulting | Closed | 23 Feb 2018 | 28 Feb 2018 |
| Environment Safeguards Expert #2 | Individual - Consulting | Closed | 23 Feb 2018 | 28 Feb 2018 |
| Project Manager #1 | Individual - Consulting | Closed | 23 Feb 2018 | 28 Feb 2018 |
| Project Manager #2 | Individual - Consulting | Closed | 23 Feb 2018 | 28 Feb 2018 |
| Social Safeguards Expert (land Acquisition and Resettlement) #2 | Individual - Consulting | Closed | 23 Feb 2018 | 28 Feb 2018 |
| Social Safeguards Expert (land Acquisition and Resettlement) #1 | Individual - Consulting | Closed | 23 Feb 2018 | 28 Feb 2018 |
| Project Manager #3 | Individual - Consulting | Closed | 23 Feb 2018 | 28 Feb 2018 |
| L3547/3548; G0538: Sustainable Highlands Highway Investment Program (SHHIP) – Tranche 1 [SHHIP CSTB No. 3774; 3775; 3776] | Invitation for Bids | Closed | 12 Dec 2017 | 14 Mar 2018 |
| Construction Supervision for CW2 | Firm - Consulting | Closed | 10 Nov 2017 | 11 Dec 2017 |
| Construction Supervision for CW1 | Firm - Consulting | Closed | 10 Nov 2017 | 11 Dec 2017 |
| Financial Management Expert | Individual - Consulting | Closed | 21 Aug 2017 | 03 Sep 2017 |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Contractor Address | Executing Agency | Contract Description | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|---|---|
| INTERNATIONAL ENVIRONMENTAL SAFEGUARD SPECIALIST | Loan 3547 | 02 Aug 2018 | MR CARSTEN M.HUTTCHE | 18 BOON LAY WAY#10-114 TRADEHUB 2,SINGAPORE,609966 SINGAPORE | Department of Works | Consulting Services | 629,470.00 | 226,609.00 |
| INTERNATIONAL ENVIRONMENTAL SAFEGUARD SPECIALIST | Grant 0538 | 02 Aug 2018 | MR CARSTEN M.HUTTCHE | 18 BOON LAY WAY #10-114 TRADEHUB 2 SINGAPORE 609966 SINGAPORE | Department of Works | Consulting Services | 402,861.00 | — |
| INTERNATIONAL TEAM LEADER (CIVIL WORK SPECIALIST) | Loan 3547 | 01 Aug 2018 | MR RICHARD KITSON | 52B TINIO ST,ADDINGTON HILLS MANDALUYONG CITY, METRO MANILA PHILIPPINES | Department of Works | Consulting Services | 1,058,400.00 | 381,024.00 |
| INTERNATIONAL TEAM LEADER (CIVIL WORKS SPECIALIST) | Grant 0538 | 30 Jul 2018 | MR RICHARD KITSON | 52B TINIO ST ADDINGTON HILLS MANDALUYONG CITY METRO MANILA PHILIPPINES | Department of Works | 677,376.00 | — | |
| CONTRACT MANAGEMENT SPECIALIST | Grant 0538 | 16 Jul 2018 | PURNENDU PATHAK | 2068 SECTOR B/2 VASANT KUNJ NEW DELHI-110070 INDIA | Department of Works | 520,051.00 | — | |
| SOCIAL SAFEGUARDS SPECIALIST FOR SHHIP | Grant 0538 | 16 Jul 2018 | GOVIND PRASAD BHATT | SARASWOTI MARG GYANESHWOR KATHMANDU-33 NEPAL | Department of Works | 402,861.00 | — | |
| CONTRACT MANAGEMENT SPECIALIST FOR SHHIP | Loan 3547 | 16 Jul 2018 | PURNENDU PATHAK | 2068, SECTOR B/2, VASANT KUNJ NEW DELHI-110070, INDIA INDIA | Department of Works | CONSULTANCY | 812,580.00 | 292,529.00 |
| SOCIAL SAFEGUARDS SPECIALIST FOR SHHIP | Loan 3547 | 16 Jul 2018 | GOVIND PRASAD BHATT | SARASWOTI MARG, GYANESHWOR, KATHMANDU-33 NEPAL NEPAL | Department of Works | CONSULTANCY | 629,470.00 | 226,609.00 |
| PROJECT MANAGER FOR CIVIL WORKS 3 FOR SHHIP ASSIGNMENT LOCATION - KUNDIAWA, SIMBU PROVINCE | Loan 3547 | 10 Jul 2018 | MR. MICHAEL EDMOND | P.O BOX 54, GOROKA EASTER HIGHLANDS PROVINCE PAPUA NEW GUINEA | Department of Works | CONSULTANCY | 537,825.00 | 192,343.00 |
| PROJECT MANAGER FOR CIVIL WORKS 1 FOR SHHIP ASSIGNMENT LOCATION-LAE, MOROBE PROVINCE | Loan 3547 | 10 Jul 2018 | MR. LALIO ERASI | P.O BOX 25, WATERFRONT, KONEDOBU BOROKO, NCD PAPUA NEW GUINEA | Department of Works | CONSULTANCY | 537,825.00 | 192,343.00 |
| PROJECT MANAGER FOR CIVIL WORKS 3 FOR SHHIP ASSIGNMENT LOCATION-KUNDIAWA SIMBU PROVINCE | Grant 0538 | 01 Jul 2018 | MR. MICHAEL EDMOND | P.O BOX 54 GOROKA EASTERN HIGHLANDS PROVINCE PAPUA NEW GUINEA | Department of Works | 341,943.00 | — | |
| PROJECT MANAGER FOR CIVIL WORKS 1 FOR SHHIP ASSIGNMENT LOCATION-LAE MOROBE PROVINCE | Grant 0538 | 01 Jul 2018 | MR. LALIO ERASI | P.O BOX 25 WATERFRONT KONEDOBU BOROKO NCD PAPUA NEW GUINEA | Department of Works | 341,943.00 | — | |
| MR. JAYAPAL JAYARAJ - FINANCIAL MANAGEMENT SPECIALIST - PMO CONSULTANT | Loan 3547 | 23 May 2018 | JAYAPAL JAYARAJ | 4 WILFRED CREST, GLEN WAVERLIE VICTORIA AUSTRALIA | Department of Works | Consulting Services | 629,990.00 | 226,796.00 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Sustainable Highlands Highway Investment Program - Tranche 1: Procurement Plan | Procurement Plans | Dec 2017 |