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Papua New Guinea: Sustainable Highlands Highway Investment Program, Tranche 2

Sovereign (Public) Project | 48444-005 Status: Approved

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 Name Sustainable Highlands Highway Investment Program, Tranche 2
Project Number 48444-005
Country Papua New Guinea
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4094-PNG: Sustainable Highlands Highway Investment Program, Tranche 2
Ordinary capital resources US$ 285.00 million
Loan 4095-PNG: Sustainable Highlands Highway Investment Program, Tranche 2
concessional ordinary capital resources lending / Asian Development Fund US$ 40.00 million
Loan: Sustainable Highlands Highway Investment Program, Tranche 2
OPEC Fund for International Development US$ 50.00 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

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 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)

Project Outcome
Description of Outcome Efficiency and safe movement of people, goods, and services between the Highlands Region and markets increased
Progress Toward Outcome
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)
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
Responsible ADB Officer Khpalwan, Bashirullah
Responsible ADB Department Pacific Department
Responsible ADB Division Papua New Guinea Resident Mission
Executing Agencies
Department of Works and Implementation
Mr. Roy Mumu
[email protected]
P.O. Box 1108
Boroko, NCD
Papua New Guinea
Timetable
Concept Clearance -
Fact Finding -
MRM 25 Nov 2020
Approval 06 Aug 2021
Last Review Mission -
Last PDS Update 06 Aug 2021

Loan 4094-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Aug 2021 - - 30 Jun 2026 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 355.00 Cumulative Contract Awards
ADB 285.00 07 Sep 2021 0.00 0.00 0%
Counterpart 20.00 Cumulative Disbursements
Cofinancing 50.00 07 Sep 2021 0.00 0.00 0%

Loan 4095-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Aug 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 07 Sep 2021 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 07 Sep 2021 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.

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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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
Project No. 48444-005: Sustainable Highlands Highway Investment Program (SHHIP) – Tranche 2 (BCW1) Invitation for Bids Closed 28 Dec 2020 15 Jan 2021
Project No. 48444-005: Sustainable Highlands Highway Investment Program (SHHIP) – Tranche 2 (BCW2) Invitation for Bids Closed 28 Dec 2020 15 Jan 2021
Project No. 48444-005: Sustainable Highlands Highway Investment Program (SHHIP) – Tranche 2 (BCW3) Invitation for Bids Closed 28 Dec 2020 15 Jan 2021
Consultancy Services for Development of Bridge Asset Management Systems Firm - Consulting Closed 28 Aug 2020 26 Oct 2020
Construction Supervision Consultant for BCW2 and BCW3 works, and preparatory studies and Detailed Design of (i) Climbing Lanes; (ii) Weigh Stations and (iii) Trade & Logistics Platforms Firm - Consulting Closed 28 Aug 2020 18 Oct 2020
Construction Supervision Consultant for BCW1 works, preparatory studies and Detailed Design of (i) Climbing Lanes; (ii) Weigh Station and (iii) Trade & Logistics Platform Firm - Consulting Closed 28 Aug 2020 18 Oct 2020
Project No. 48444-005: Sustainable Highlands Highway Investment Program (SHHIP) – Tranche 2 (BCW1) Invitation for Bids Closed 26 Aug 2020 15 Jan 2021
Project No. 48444-005: Sustainable Highlands Highway Investment Program (SHHIP) – Tranche 2 (BCW2) Invitation for Bids Closed 26 Aug 2020 15 Jan 2021
Project No. 48444-005: Sustainable Highlands Highway Investment Program (SHHIP) – Tranche 2 (BCW3) Invitation for Bids Closed 26 Aug 2020 15 Jan 2021

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.