Papua New Guinea : Sustainable Highlands Highway Investment Program, Tranche 2
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 that 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 430 kilometer (km) long 2-lane national Highlands Highway is the lifeline for the Highlands region connecting 1,800 km of regional and feeder roads and serving 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 -
Sector
- Transport
| Project Name | Sustainable Highlands Highway Investment Program, Tranche 2 | ||||||||||||
| Project Number | 48444-005 | ||||||||||||
| Country / Economy | Papua New Guinea |
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| Project Status | Active | ||||||||||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| 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 OP6: Strengthening governance and institutional capacity |
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| Sector / Subsector | Transport / Road transport (non-urban) - Transport policies and institutional development |
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| Gender | Effective gender mainstreaming | ||||||||||||
| 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 that 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 430 kilometer (km) long 2-lane national Highlands Highway is the lifeline for the Highlands region connecting 1,800 km of regional and feeder roads and serving 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 | Opportunity for equality and prosperity in rural areas increased (Papua New Guinea Development Strategic Plan, 2010-2030) Well-integrated, safe, affordable, and financially and environmentally sustainable transport systems attained that will efficiently serve the economy and people of PNG (National Transport Strategy: Volume 3-Detailed Strategy, 2013) A safe, reliable, and sustainable national road network developed and maintained (National Road Network Strategy, 2018-2037) |
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| Project Outcome | |
|---|---|
| Description of Outcome | Efficiency and safe movement of people, goods, and services between the Highlands Region and markets increased |
| Progress Toward Outcome | 1. Contracts were awarded for 3 civil works packages. BCW1 and BCW2 were both signed on 30 June 2022. BCW3 was signed on 22 December 2022. Contractors for the 3 civil works have commenced works on the designing of bridges. A. BCW1 will replace 14 bridges and rehabilitate 21 bridges, a total of 35 bridges. Physical progress is 0.04% and detail designs of the bridges by the contractor are still ongoing.B. BCW2 will replace 14 bridges and rehabilitate 5 bridges, a total of 19 bridges. Physical progress is 11.16% and details designs by the contractor are still ongoing.C. BCW3 will replace 17 bridges. Physical Progress is 4.18%. Details designs by the contractor are still ongoing.2. Contract awarded for Consulting Services for Construction Supervision CS1 and CS2. CS1 Contract was signed on 5 July 2022 and CS2 contract signed on 26 July 2022.3. BAMS Consulting Services contract signed on 29 June 2022. and commenced work. Trainings of DOWH staff are ongoing with the procurement of equipment and software. |
| Implementation Progress | |
| Description of Project Outputs | 71 bridges along the national Highlands Highway between Lae Nadzab Airport and Kagamuga Airport in Mount Hagen upgraded to meet current national design standards and mitigate climate change risks capacity of the Department of Works and Implementation (DOW) to design, construct, and manage all bridges in the national highway network increased. |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Included in civil works contracts.To be assessed during implementation.Civil works contract packages awarded. To be conducted once construction commences and assessed during implementation.1. Contracts were awarded for 3 civil works packages. BCW1 and BCW2 were both signed on 30 June 2022. BCW3 was signed on 22 December 2022.Contractors for the 3 civil works have commenced works.2. Contract awarded for consulting service package (CS1) and signed on 5 July 2022. Consulting Services package (CS2) and BAMS consulting services signed on 26th July and 28th June 2022 respectively.To be assessed later once bridge civil works are completed.1. Contracts were awarded for 3 civil works packages. BCW1 and BCW2 were both signed on 30 June 2022. BCW3 was signed on 22 December 2022.Contractors for the 3 civil works have commenced works.2. Items (i) and (ii) to be assessed during implementation.3. Contract awarded for consulting service package (CS1) and signed on 5 July 2022. Consulting Services package (CS2) and BAMS consulting services signed on 26th July and 28th June 2022 respectively.BAMS Consulting Services contract awarded on 29 June 2022.Bridge asset management system operations to be assessed during implementation.BAMS Consulting Services contract awarded on 29 June 2022.This will be assessed once BAMS consultants commence work. |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | The DOW has updated the environmental assessment and review framework prepared for the program. It has conducted an initial environmental examination (IEE), which confirms that tranche 2 activities have no adverse environmental impact, and any potential temporary impacts during construction can be mitigated. The IEE reports and environmental monitoring plans will be updated, if necessary, after the detailed designs are completed by the contractor, and ADB will review them to check their compliance with ADB's Safeguard Policy Statement. An updated framework and the IEE reports have been disclosed in ADB website. |
| Involuntary Resettlement | The alignment of some replacement bridges will be changed to improve traffic safety and bridge sustainability. This will trigger involuntary acquisition of land for permanent and temporary use. There will be some impacts on assets and improvements (crops, trees, and bamboo grooves). The DOW has prepared resettlement plans, which have been disclosed to the affected people and disclosed on the ADB website. Further updates to the plans, will be made after the detailed designs are completed and disclosed after ADB approval. |
| Indigenous Peoples | No person who can be defined as indigenous is in the project areas. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | The affected people, key stakeholder communities have been consulted during the project preparatory stage and the preparation of the resettlement plan. Such meaningful consultations shall continue throughout the project development cycle, including while updating the plan. All community members and clan leaders and their members, including women, have expressed their full support for the project implementation also during consultations undertaken as part of the project preparations and stakeholder consultation and participation plan. |
| During Project Implementation | The project will comply with both ADB safeguard requirements and PNG laws and regulations applicable to land acquisition and resettlement. To ensure that acquisition of customary land and resettlement activities are carried out properly, DOW will follow the measures included in the overall Investment Program's land acquisition and resettlement framework (LARF), the tranche 1 due diligence, and the tranche 2 resettlement plans (2) including: entitlement and compensation policies, assessment of impacts and preparation/update of due diligence reports, consultation, disclosure and grievance redress, capacity building and support, and monitoring and reporting. |
| Business Opportunities | |
|---|---|
| Consulting Services | Consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time) |
| Procurement | All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time). For the civil work contracts, the formula for abnormally low bid is included in ITB 11.3 (d) and a new ITB 38A in Section 2 of the bidding document, which explain details of the formula for abnormally low bid. International competitive bidding procedure will be used for civil works contracts estimated to cost $5,000,000 or more, and for goods contracts estimated at $2,000,000 or more. National competitive bidding procedure will be used for civil works contracts estimated to cost up to or equal to $5,000,000 and for goods up to or equal to $2,000,000. Shopping will be used for contracts works and goods contracts worth less than $300,000. |
| Responsible ADB Officer | Ono, Masayoshi |
| Responsible ADB Department | Pacific Department |
| Responsible ADB Division | Papua New Guinea Resident Mission (PNRM) |
| Executing Agencies |
Department of Works and Highways |
| Timetable | |
|---|---|
| Concept Clearance | - |
| Fact Finding | - |
| MRM | 25 Nov 2020 |
| Approval | 06 Aug 2021 |
| Last Review Mission | - |
| Last PDS Update | 01 Dec 2023 |
Loan 4094-PNG
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 06 Aug 2021 | 14 Oct 2021 | 15 Dec 2021 | 30 Jun 2026 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 305.00 | Cumulative Contract Awards | |||
| ADB | 285.00 | 16 Nov 2023 | 215.37 | 0.00 | 76% |
| Counterpart | 20.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 16 Nov 2023 | 39.71 | 0.00 | 14% |
Loan 4095-PNG
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 06 Aug 2021 | 14 Oct 2021 | 15 Dec 2021 | 30 Jun 2026 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 40.00 | Cumulative Contract Awards | |||
| ADB | 40.00 | 16 Nov 2023 | 28.79 | 0.00 | 72% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 16 Nov 2023 | 5.08 | 0.00 | 13% |
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 [Concessional]) for Loan 4095-PNG: Sustainable Highlands Highway Investment Program, Tranche 2 | Loan Agreement (Ordinary Resources) | Oct 2021 |
| Loan Agreement (Ordinary Operations) for Loan 4094-PNG: Sustainable Highlands Highway Investment Program, Tranche 2 | Loan Agreement (Ordinary Resources) | Oct 2021 |
| Sustainable Highlands Highway Investment Program, Tranche 2: Periodic Financing Request Report | Periodic Financing Request Reports | Aug 2021 |
| Sustainable Highlands Highway Investment Program, Tranche 2: Gender Action Plan | Gender Action Plans | Aug 2021 |
| Sustainable Highlands Highway Investment Program, Tranche 2: Tranche-at-a-Glance Report | Tranche Reports | Jul 2021 |
| Sustainable Highlands Highway Investment Program, Tranche 2: Procurement Plan | Procurement Plans | May 2021 |
| Sustainable Highlands Highway Investment Program, Tranche 2: Project Administration Manual | Project/Program Administration Manual | Dec 2020 |
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.
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Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| International Bridge Engineer | 4094 | 02 Jun 2023 | MD. Atikur Rahman | Anchor H.N Garden, 409 East Senpara Porbota, Flat A-6 and B-1 Kafrul, Mirpur-13, Dhaka-1216, Bangladesh | Department of Works and Highways | 275,300.00 | 247,770.00 |
| International Contract Management Specialist | Loan 4094 | 08 May 2023 | Dipak Das | Flat No. 408, GKS Pride Block 3 Yapral Balaji Nagar Road, Secunderabad, Hyderabad 500087 India | Department of Works and Highways | 279,300.00 | 251,370.00 |
| Surveyor (National) | Loan 4094 | 02 May 2023 | Paul Mana Kharimokumane | 11 Miles Northwest of Goroka Town, Kabiufa Eastern Highlands Province, Papua New Guinea | Department of Works and Highways | 207,530.90 | 185,988.32 |
| National Bridge Engineer | Loan 4094 | 10 May 2023 | Siune Andreas Gigmai | Bush-wara (9mile), Sogeri Road, PO Box 860 Waigani, NCD, Papua New Guinea | Department of Works and Highways | 255,359.99 | 227,969.26 |
| Detailed Design, Construction and Rehabilitation of Bridges between Mangiro and Kagamuga (BCW3) | Loan 4094 | 09 Jan 2023 | China Civil Engineering Construction Corporation (CCECC), China Railway 12th Bureau Group Co., Ltd. (CR12), and China Railway Fifth Survey and Design Institute Group Co., Ltd. (CRFSD) Joint Venture | Section 409, Allotment 14, Block C, Hohola, National Capital District, Papua New Guinea | Department of Works and Highways | 101,803,680.90 | 73,462,841.14 |
| Detailed Design, Construction and Rehabilitation of Bridges between Mangiro and Kagamuga (BCW3) | Loan 4095 | 09 Jan 2023 | China Civil Engineering Construction Corporation (CCECC), China Railway 12th Bureau Group Co., Ltd. (CR12), and China Railway Fifth Survey and Design Institute Group Co., Ltd. (CRFSD) Joint Venture | Section 409, Allotment 14, Block C, Hohola, National Capital District, Papua New Guinea | Department of Works and Highways | 101,803,680.90 | 10,063,402.90 |
| Program Director SHHIP Tranche 2 | Loan 4094 | 28 Dec 2022 | Ponege Tenny Poya | Department of Works and Highways Headquarters | Department of Works and Highways | 279,313.98 | 251,382.58 |
| Consultancy Services for Development of Bridge Asset Management System (BAMS) | Loan 4094 | 11 Aug 2022 | Joint Venture between Finnish Overseas Consultants (FINNOC) Ltd and Sirway Ltd | Metsarinne, 7 B, 04220, Kerava, Finland | Department of Works and Highways | 2,812,500.00 | 2,531,250.00 |
| Construction Supervision Consultant for BCW2 and BCW3 works contract and preparatory studies and Detailed Design of (i) Daulo Pass; (ii) Weigh Stations and (iii) Trade and Logistics Platforms in Jiwaka Province | Loan 4094 | 24 Aug 2022 | Joint Venture between Bonifica S.p.A. and Renardet S.A. | Via della Camilluccia, 6700135 ROMA (Italia) | Department of Works and Highways | 15,480,376.57 | 13,930,595.66 |
| Consultancy Services for Development of Bridge Asset Management System (BAMS) | Loan 4095 | 11 Aug 2022 | Joint Venture between Finnish Overseas Consultants (FinnOC) Ltd and Sirway Ltd | Metsarinne, 7 B, 04220, Kerava, Finland | Department of Works and Highways | 2,812,500.00 | 281,250.00 |
| Construction Supervision Consultant for BCW2 and BCW3 works contract and preparatory studies and Detailed Design of (i) Daulo Pass; (ii) Weigh Stations and (iii) Trade and Logistics Platforms in Jiwaka Province | Loan 4095 | 24 Aug 2022 | Joint Venture between Bonifica S.p.A. and Renardet S.A. | Via della Camilluccia, 6700135 ROMA (Italia) | Department of Works and Highways | 15,480,376.57 | 1,547,843.96 |
| Consultancy Services for Construction Supervision (CS1) for BCW1 works contract and Preparatory Studies and Detail Designs | Loan 4094 | 26 Jul 2022 | JV between Korea Consultants International Co. Ltd; Dongsung Engineering Co. Ltd; and Ilshin E&C Co., Ltd in Association with T.J Lopia & Associates Ltd. | 7F, Daerung Technotown 15, 401 Simin-daero, Dongan-gu, Anyang-si, Gyeonggi-do, Korea | Department of Works and Highways | 11,206,575.02 | 10,085,917.52 |
| Consultancy Services for Construction Supervision of BCW1 works contract and Preparatory Studies and Detailed Design | Loan 4095 | 26 Jul 2022 | JV between Korea Consultants International Co. Ltd; Dongsung Engineering Co. Ltd; and Ilshin E&C Co., Ltd in Association with T.J Lopia & Associates Ltd. | 7F, Daerung Technotown 15, 401 Simin-daero, Dongan-gu, Anyang-si, Gyeonggi-do, Korea | Department of Works and Highways | 11,206,575.02 | 1,120,657.50 |
| Detailed Design, Construction and Rehabilitation of Bridges from Lae Nadzab to Henganofi (BCW1) | Loan 4094 | 26 Jul 2022 | Metallurgical Corporation of China Ltd | MCC Tower, No.28, Shuguangxili, Chaoyang District, Beijing, People's Republic of China | Department of Works and Highways | 89,572,366.14 | 65,387,827.28 |
| Detailed Design, Construction and Rehabilitation of Bridges from Henganofi to Mangiro (BCW2) | Loan 4095 | 26 Jul 2022 | China Wuyi Co., Ltd. | P.O Box 203, Waterfront (123) Konedobu, NCD, PNG | Department of Works and Highways | 69,113,782.90 | 6,911,378.29 |
| Detailed Design, Rehabilitation and Construction of Bridges Between Lae Nadzab and Henganofi (BCW1) | Loan 4095 | 26 Jul 2022 | Metallurgical Corporation of China Ltd | MCC Tower, No.28, Shuguangxili, Chaoyang District, Beijing, People's Republic of China | Department of Works and Highways | 89,572,366.14 | 8,957,236.62 |
| Detailed Design, Construction and Rehabilitation of Bridges from Henganofi to Mangiro (BCW2) | Loan 4094 | 26 Jul 2022 | China Wu Yi Co. Limited | P.O Box 203, Waterfront (123) Konedobu, NCD, PNG | Department of Works and Highways | 69,113,782.90 | 50,453,061.51 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Sustainable Highlands Highway Investment Program, Tranche 2: Procurement Plan | Procurement Plans | May 2021 |