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Papua New Guinea: Power Sector Development Project (EIA Report)


The Government of Papua New Guinea (PNG) (the government) has requested the Asian Development Bank (ADB) to provide support through technical assistance (TA 9428- PNG) to prepare a standalone project to finance investments through Power Sector Development Project (PSDP) in PNG. This standalone project is also co-financed the Government of Australia represented by the Department of Foreign Affairs and Trade (AUS-DFAT) through funding under the Australian Infrastructure Financing Facility for the Pacific (AIFFP). The project will be implemented over a period of 4 years with a total value of approximately USD305 million. The project will support the improvement of socioeconomic conditions in PNG consistent with the government’s Vision 2050, by improving access to electricity in provincial and urban centres through the expansion of transmission and distribution network and improving system efficiencies. The Project. The primary aim of the PSDP is to provide for the rehabilitation, reinforcement, and extension of approximately 235 (kilometer) km transmission lines, the construction and upgrade of 11 substations and switchyards, 2,274 km of distribution lines including a new mini grid in West New Britain (WNB) with 56,000 household (HH) connections, including 5,600 households headed by women headed by women or disadvantaged households, using PPL's pro-poor tariff subsidies and/or connection schemes. The secondary objective is to develop the necessary executing agency, implementing agency and private sector capacity to deliver the project. The scope of work under the PSDP comprises three categories of subprojects: (i) construction and upgrade of 132 kilovolts (kV) and construction of 66 kV transmission lines; (ii) construction or upgrade of substations and switchyards; and (iii) construction of distribution lines (22kV, LV) and household connections. All three categories of subprojects are proposed for the three geographically separated grid systems across PNG, these being: The Gazelle system (East New Britain); the Ramu system (including Lae City, Madang); and the Port Moresby system (Gomore and Motukea) as well as WNB. PNG’s country safeguard system includes the Environment Act 2000 which requires that projects and activities are screened against a list of activities contained in Schedule 2 ‘Prescribed Activities’ of the Environment (Prescribed Activities) Regulation 2002 (EPAR) according to the anticipated potential environmental impact. Level 2 and 3 activities require environmental assessment. All activities, irrespective of level, are required to prepare a Notification of Preparatory Works which is submitted to Conservation and Environmental Protection Authority (CEPA). Under the requirements of the Environment Act 2000, all of the subprojects considered under this project are designated under Schedule 2 ‘Prescribed Activities’ of the EPAR 2002 according to the anticipated potential environmental impact, and as such are required to prepare a Notification vi of Preparatory Works which is submitted to CEPA for review and advise as to the level of investigations required. Level 2 and 3 activities are permitted activities that may pose significant or major impact on the environment, with level 3 activities required to undergo full environment impact assessment. For the purpose of the Project, the Subcategory 12.6 - Prescribed Activities lists “Construction of Electricity Transmission Lines or Pipelines Greater than 10 km in Length” are designated as a Level 2 activity. This prescribed activity refers to construction of new transmission lines and may also include upgrading works of existing transmission lines greater than 10km. Government environmental clearance and development consent (and other permits) must be obtained before any works commence. Accordingly, a formal Notification will be prepared for all the subprojects under consideration in this Initial Environmental Examination (IEE), and it is expected that CEPA will advise PPL that the development has been assessed as a Level 2B activity. This will require PPL to submit an environmental permit (EP) application (which is in a similar format to this IEE) for each subproject. Following approval CEPA will issue a Level 2B EP for the subprojects, respectively.