Sustainable Energy Sector Development Program (formerly Clean Energy Development Project) (ADB-56023-001)

Countries
  • Papua New Guinea
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 1, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Papua New Guinea - Ministry of State Enterprises
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 110.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Mar 3, 2024

Disclosed by Bank Jan 2, 2024

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the Sustainable Energy Sector Development Program will support the Government of Papua New Guinea (PNG) in enhancing the adequacy and financial sustainability of low-carbon electricity supply for the country. It combines a programmatic approach of policy-based lending with a project investment component under two subprograms, one in 2024 ($100 million) and another in 2026 ($200 million). The policy component will support PNG's government in creating an enabling policy framework to restore the sustainability of the sector, turning around the national utility PNG Power Limited (PPL)'s performance, and increasing private sector participation to deliver clean, affordable, and reliable power. The reforms will be focused on: (i) transitioning to a low-carbon electricity supply, (ii) restoring the sector's financial sustainability, (iii) strengthening the PPL's operational capabilities, and (iv) enabling more efficient private sector participation in the sector. The project component will focus on urgent network repairs and revenue generating measures.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The first subprogram of the SDP is estimated to cost $110 million (Table 1). ADB will provide a regular loan of $100 million, of which $50 million will be in the form of budget support as the policy-based component. The remaining
$50 million will be used to finance goods, equipment, and consulting services for PPL’s urgent grid repairs and upgrades. The government will finance duties and taxes of $5 million as part of its counterpart funding (noncash contribution). PNG Power Ltd. (PPL) will also provide $5 million in the form of in-kind contribution as its workforce implements infrastructure replacements.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - PNG Power Limited Investor -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contacts available at the time of disclosure.

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

How it works

How it works