Air Niugini Aircraft Fleet Renewal and Safety Project (ADB-58062-001)

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
Sep 26, 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
Raggiana A Limited / Raggiana B Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Transport
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)
$ 45.00 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 Aug 19, 2024

Disclosed by Bank Aug 8, 2024

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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 project will fund Pre-Delivery Payments (PDPs) as part of the procurement of six Airbus A220-100 aircraft and two Boeing 787-8 aircraft from Airbus SE and the Boeing Company by Air Niugini Limited (ANL).

 

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

ADB categorizes this project as category C for environment in accordance with the ADB Safeguard Policy Statement (2009) as the project activities involve short-term pre-delivery financing for aircraft procurement, which will be repaid upon aircraft delivery. The use of ADB proceeds will not involve infrastructure development nor working capital use for operations and maintenance. This project will therefore have limited to no environmental impacts.

The project will not involve land acquisition and will not result in involuntary resettlement. The operations and maintenance for the fleet will be managed by the aircraft supplier for the initial period. Construction of additional hangar facilities within Port Moresby's aerodrome to support the fleet expansion will be part of the next phase of ANL's investment program, not funded by the project.

ADB categorizes this project as category C for indigenous peoples as the project is not foreseen to have direct positive or negative impacts on indigenous peoples or tribal populations.

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

Loan (Ordinary capital resources): USD 18.98 million

Loan (Ordinary capital resources): USD 26.02 million

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Sponsor: Air Niugini Limited is the flag carrier of Papua New Guinea, based in Air Niugini House on the site of Port Moresby International Airport, Port Moresby. It operates a domestic network from Port Moresby to 12 major airports while its subsidiary company, Link PNG, operates routes to minor airports. 

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Air Niugini Limited Contractor -
- - - - Raggiana A Limited Client -
- - - - Raggiana B Limited Client -

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.

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How it works