Two ADB Loans For Port Moresby Power Supply Signed In Delhi

Two ADB Loans For Port Moresby Power Supply Signed In Delhi

NEW DELHI, INDIA (1 May 2013) – The Asian Development Bank (ADB) and Government of Papua New Guinea (PNG) have today signed two loans that will help boost electricity access rates in Port Moresby to 74% and extend the city’s power grid to an estimated 3,000 low-income households. The loans were signed at ADB’s 46th Annual Meeting in New Delhi, India.

“This project will connect currently unserved households to reliable, good quality electricity for the first time,” said Xianbin Yao, Director General of ADB’s Pacific Department, who spoke after the loan signing. “Improved power supply in the target areas will enhance quality of life and encourage low-income families to engage in small-scale income generation activities.”

The $66.7 million loans will also help maximize and improve the use of hydropower by upgrading and rehabilitating two hydropower plants currently generating electricity for Port Moresby. This should reduce fossil fuel consumption while increasing access to, and the reliability of, the Port Moresby power grid.

Ultimately, the project will assist Port Moresby power grid operator PNG Power Limited (PPL) in expanding renewable energy generation, and significantly improve the quality of electricity.

The project will be implemented over four years, with the Government of PNG contributing $16.3 million. The loans comprise $15 million from the Asian Development Fund (ADF) and $51.7 million from ADB’s ordinary capital resources.

Since joining ADB in 1971, PNG has received 75 loans worth $1.5 billion, as well as one ADF grant worth $15 million, and 148 Technical Assistance (TA) projects worth $62.8 million.

At present, 19 sovereign loans ($661.7 million), two private sector projects ($58 million), one ADF grant ($15 million), and 11 TA projects ($9.6 million) are active. In addition, PNG’s active portfolio includes $78.7 million in cofinancing from other development partners.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2012, ADB assistance totaled $21.6 billion, including cofinancing of $8.3 billion.

ENDS

© Scoop Media