| Project Detail |
The project will support the strengthening and expansion of the transmission and distribution system within the main power grids of PNG Power Limited (PPL) by (i) expanding and upgrading transmission lines and substations in Gazelle, Ramu, and Port Moresby; (ii) building new low- and medium-voltage power distribution lines in Gazelle, Ramu, and Port Moresby, and mini grids in West New Britain; and (iii) strengthening the capacity of PPL, including in grid modelling and planning, procurement and implementation, utility operation, and financial management. The project will contribute to PNGs objective of connecting 70% of its population to electricity by 2030 and will help advance sector reforms by strengthening the financial management capacity and governance structure of PPL.
Project Name Power Sector Development Project
Project Number 47356-002
Country / Economy Papua New Guinea
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant: Power Sector Development Project
Government of Australia US$ 12.80 million
Loan 4189-PNG: Power Sector Development Program
Ordinary capital resources US$ 188.60 million
Loan 4190-PNG: Power Sector Development Project
Concessional ordinary capital resources lending US$ 20.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector
Energy / Energy sector development and institutional reform
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will support the strengthening and expansion of the transmission and distribution system within the main power grids of PNG Power Limited (PPL) by (i) expanding and upgrading transmission lines and substations in Gazelle, Ramu, and Port Moresby; (ii) building new low- and medium-voltage power distribution lines in Gazelle, Ramu, and Port Moresby, and mini grids in West New Britain; and (iii) strengthening the capacity of PPL, including in grid modelling and planning, procurement and implementation, utility operation, and financial management. The project will contribute to PNGs objective of connecting 70% of its population to electricity by 2030 and will help advance sector reforms by strengthening the financial management capacity and governance structure of PPL.
Project Rationale and Linkage to Country/Regional Strategy PNG has one of the lowest rates of electricity access in the region, with only 13% of households having access. This stifles economic growth and exacerbates poverty and inequality in both urban and rural areas. The total installed generation capacity in PNG is 600 megawatts (MW). PPL is a state-owned enterprise (SOE) that manages generation, transmission, and distribution of about 320 MW, including three main grids (Gazelle, Port Moresby, and Ramu) that supply the main urban centers and 19 geographically isolated independent power grids that service provincial centers. The mining industry generates the remaining 280 MW for its own use. Most provincial centers are entirely supplied by diesel generation, resulting in high generation costs and low-quality power supply. A lack of access to electricity also hampers womens economic empowerment.
Impact Socio-economic conditions improved
Project Outcome
Description of Outcome Access to clean and reliable power supply in the project areas improved.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Transmission network upgraded and expanded
Distribution network expanded
Capacity strengthened
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide |
