ADB announces K1bil project to help improve access to electricity

THE Asian Development Bank (ADB) recently announced a US$305 million (K1.05 billion) project which will support the strengthening and expansion of electricity in Papua New Guinea.
The Power Sector Development Project was supported by loans and grants from ADB and the governments of Australia and PNG and would target five subprojects within the main power grids of the country’s power utility, PNG Power Ltd (PPL).
ADB provided two loans amounting to US$208.6 million (K722.35 million), the Government of Australia contributed a US$59.5 million (K206.04 million) loan and a US$12.8 million (K44.32 million) grant, and the Government of PNG with PPL would yield US$24.1 million (K83.45 million).
“PNG has one of the lowest rates of electricity access in the Pacific, with only 13 per cent of households having access,” said director of ADB Pacific department’s energy division Mukhtor Khamudkhanov.
“The project will contribute to the government’s objective of connecting 70 per cent of its population to electricity by 2030 and will help advance reforms in the power sector.”
The project would expand and upgrade transmission lines and substations in Gazelle (East New Britian), Ramu (Madang), and Port Moresby; build new low and medium-voltage power distribution lines in Gazelle, Ramu, and Port Moresby, and mini grids in West New Britain; and strengthen the capacity of PPL through the introduction of procurement and implementation, utility operation, and financial management reforms.
He said the limited electricity access in PNG stifled economic growth and exacerbated poverty and inequality in both urban and rural areas.