Strong achievements in transport, health, energy: ADB

The Asian Development Bank’s (ADB) portfolio of projects in Papua New Guinea (PNG) in 2019 has delivered strong results, which have helped enhance people’s lives and improve the country’s growth prospects.

In an event on December 11th, officials from the government, private sector, media and other development partners were told that ADB’s portfolio of 18 active projects in PNG, worth about $1.71 billion, has been making good progress and achieving results, particularly in the transport, energy and health sectors.

“Working together with the Government of Papua New Guinea, the achievements we have seen in 2019, particularly in the transport, health and energy sectors are a testament to our long-term partnership,” said ADB Country Director for PNG, David Hill. “However, much more needs to be done in 2020 and we look forward to helping the government achieve their development targets.”

ADB remains committed in assisting the government and PNG Power with its development plans in the energy sector to increase energy access to 70 percent of the population by 2030.

The proposed $295 million Power Sector Development Project is a new project being processed, which aims to expand the transmission and distribution networks in the country’s three main grids – Port Moresby, Ramu (Madang) and Gazelle (Rabaul). The ADB-supported Town Electrification Investment Program, meanwhile, continues to help improve the power supply in targeted provinces by replacing high-cost diesel power with clean and renewable energy generation.

In the health sector, ADB’s Rural Primary Health Services Delivery Project, aimed to upgrade rural health facilities in PNG, has established 27 community health posts in eight participating provinces. In 2019, newly built and renovated facilities in Bulolo District Hospital and Mutzing Health Centre in Markham District has helped deliver 802 live births, facilitate 1,145 medical admissions and service 114,800 general outpatient cases in 2019.

A digital health information system across eight provinces and the National Capital District was also rolled out, enabling real-time public health data collection and information for decision making. ADB also provided $100 million to support reforms in the country’s health sector.

ADB also made inroads in infrastructure development, with all initial contracts awarded in December 2018 registering good initial progress, particularly on the 430-kilometer (km) Sustainable Highlands Highway Investment Program. Since 2008, the Highlands Regional Roads Infrastructure Investment Program is improving selected national and provincial main roads to increase access and connect some of the country’s most remote rural communities and farmers to services and market opportunities.

The Highlands Core Road Network Project, meanwhile, is continuing to improve roads and bridges and build capacity within the Department of Works to improve project management, while the Bridge Replacement for Improved Rural Access Sector Project helped complete seven bridges in West New Britain. This has reduced travel time and transport costs, while opening up better business and employment opportunities.

The second tranche of the Civil Aviation Development Investment Program has helped complete upgrades at Goroka and Girua airports, while work continues at Tari Airport. Although 2019 was intended to be the final year of the 10-year program, it has now been extended to 2021 to complete ongoing works in Hagen, Momote, Vanimo, Madang, Mendi and Wapenamanda airports.

The Private Sector Development Initiative (PSDI), cofinanced by ADB and the governments of Australia and New Zealand, is working with ADB’s 14 Pacific developing member countries to improve an enabling environment for business, and to support inclusive, private sector-led economic growth in the subregion.

In 2019, PSDI supported a broad range of reforms in PNG, thanks to additional financing from the government of Australia, which included working with MiBank to develop an innovative agri-finance project in East New Britain using moveable assets as loan security.

PSDI also worked with Women's Micro Bank, or Mama Bank, and produced a financing product that will help women working in agriculture access finance by using their supply contracts with NKW Fresh as collateral for loans.

In partnership with PNG’s Business Coalition for Women, the ADB PSDI team also delivered the Senior Women’s Business Leadership Program, a targeted workshop aiming to help more women move into senior leadership positions. PSDI also continued to provide extensive support to PNG's Investment Promotion Authority and the Independent Competition and Consumer Commission. PSDI is expected to play a significant role in supporting reforms to state-owned enterprises in 2020.

ADB’s Private Sector Operations Department, meanwhile, completed its first financial inclusion deal in the Pacific with a $10 million equity investment in the Kina Bank.

ADB is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion.

Established in 1966, it is owned by 68 members – 49 from the region.

(Country Director of ADB’s PNG Resident Mission, David Hill, speaking at the event)

Author: 
Press release