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 |
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| Project Status | Approved | ||||||||||||
| Project Type / Modality of Assistance | 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 |
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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 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 | |
| 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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| Title | Document Type | Document Date |
|---|---|---|
| Sustainable Highlands Highway Investment Program, Tranche 2: Periodic Financing Request Report | Periodic Financing Request Reports | Aug 2021 |
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 2: Erap River Bridge–Kabalipi River Bridge Initial Environmental Examination | Initial Environmental Examination | Feb 2020 |
| Sustainable Highlands Highway Investment Program, Tranche 2: Jogi River Bridge–Waghi River Bridge Initial Environmental Examination | Initial Environmental Examination | Feb 2020 |
| Sustainable Highlands Highway Investment Program, Tranche 2: Nadzab-Goroka Section Resettlement Plan | Resettlement Plans | Jan 2020 |
| Sustainable Highlands Highway Investment Program, Tranche 2: Goroka-Kagamuga Section Resettlement Plan | Resettlement Plans | Jan 2020 |
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
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Tenders
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Procurement Plan
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