Papua New Guinea & Asian Development Bank: A Partnership in Addressing Connectivi

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1 David Hill Country Director Asian Developmen Papua New Guinea & Asian Development Bank: A Partnership in Addressing Connectivi The current and future pipeline of projects supporting an enabling environment for economic development

2 Development Partnership Finding the space for adding value

3 DB Country Partnership Strategy ) Strategy objective: Assist PNG in planning and implementing a successful conversion of its resource wealth into inclusive and environmentally sustainable economic growth Sector Focus: Transport, Energy, Public Sector Management, Health. Drivers of Change: Environmental sustainability, private sector development, effective gender mainstreaming, knowledge management, partnerships.

4 DB Country Operations Business Plan ) WASH 3% Finance 2% y 30% Pipeline Loans $1,048 million Transport 50% Non-lending Co-financing $3.9 million $225 million Public Sector Management & Health 15%

5 DB Country Partnership Strategy ) DB Country Operations Business Plan ) ttps:// ttps://

6 hallenges to inclusive development GDP growth linked to resource dependency. Physical isolation and lack of connectivity. Limited transport and energy infrastructure. Other barriers to private sector development and broad-based job creation: Law & Order Weak property rights. Limited access to credit. Weak implementation capacity.

7 eographical Remoteness in PNG 6 5 Extremely Remote Remoteness score Highly Accessible Accessible Average remoteness = 1 Moderately Accessible Remote Very Remote 0 Number of Local Level Government areas per group

8 onnectivity Physical access to markets. Physical access to health and education facilities. Access to government services. Access to information. Implications for capacity development, economic growth (rate of) and local, regional, national and international integration.

9 DB s response to the challenges of, remoteness, onnectivity and inclusive growth y major sector, Major sector current and future investment, forward investment forward investment forward investment Current Current Current forward investment forward investment Current Current - Road Civil Aviation Energy Health

10 oad Transport - Ongoing MFF Highlands Region Road Improvement Investment Program million rpose: Improved Access and duced Transport Costs proved access to health and ucation facilities, lifting the ng standards of the people of G by enhancing mobility reased opportunity for equality d prosperity, especially in mote rural areas in the ghlands cation: 9 Highland Core Road twork Priority Links, providing cess to the main economic rridor the Highlands Highway

11 d Transport Ongoing and Future inable Highlands Highway Investment Program illion The Highlands region of Papua New Guinea (PN consists of seven landlocked provinces where approximately 40% of the country's population resides, most of whom are involved in rural smallholder agricultural production. Impact: Attainment of well-integrated, safe, affordab and financially and environmentally sustaina transport systems Improved access to health and education, an living standards of the people of PNG by enhancing mobility Increased opportunity for equality and prosperity in rural areas) Outcome: Increased efficiency and safe movement of people, goods, and services between the Highlands Region and markets

12 tion Transport Ongoing Aviation Development Investment Program million program is a Multitranche Financing Facility designed to ented in three tranches. pact of the program is to achieve economic growth and y reduction in project areas by providing safer, more t, and more accessible all-weather air transport services project areas. Tranche 3 (2017): 9 airports $248 million Tranche 1 (2009): 5 airports and institutional support $95 million Tranche 2 (2014): 8 airports $130 million

13 tion Transport Future viation Development Investment Program million program is currently being ed, which may include ant cofinancing and private participation, and will target ructure upgrade of 7 airports. $95m ition to the infrastructure es, the program will further then and sustain the operations, PNGASL, and CASA, and rt these agencies to improve iance with the ICAO and CASA fety and security standards. $130m 13

14 rgy Sector Ongoing s Electrification Investment Program (TEIP) (2020) million ($150 million) mented in two tranches ocus on: er generation through able energy sources nsmission expansion stribution and house onnections chnical assistance and ity development to PPL

15 rgy Sector Future er Sector Development Investment Program (PSDIP) / /2030 million impact of the program will proved socio-economic itions through increased ation of clean reliable tricity. outcome will be an oved access to clean and ble power supply in the ect areas with a focus on ted small grids. This will be achieved through following outputs: (i) Increased Private Sector Investments by establishing a renewable energy financing company (REFC) in promoting renewable energy solutions in off and on grid areas, facilitati transaction services, (ii) Expansion of transmission networks to connect large load existing grids, interconnect provincial centers and high dens rural populations, (iii) Expansion of distribution network to construct distributio lines and connect households in peri-urban and rural communities, (iv) Increased renewable energy for provincial grids includes conversion of diesel generation to renewable energy to redu cost of generation in provincial centers, and increase capacit supply the increased load from expanded transmission and distribution networks

16 s Engagement in PNG s Health Sector Rural Primary Health Services Delivery Project $97m Health Services Sector Development Program $100m 2020 $195m 2018 TA Preparing the Health Services Sector Development Program 2017 $100m 2019 $25m HIV/AIDS Prevention and Control in Rural Development Enclaves Project TA - Health Sector Improvement Program Results to date: Ø Rehabilitation of 97 health clinics for HIV testing Ø PPP in health established with Oil Search Health Founda Ø 10 community health posts constructed and operational (with another 22 to be constructed) Ø 300 staff trained in emergency obstetrics care Ø Digital health information system developed and piloted

17 lth Sector Moving Forward th Services Sector Development Program million The program impact is affordable, accessible, equitable, and high-quality health services for all citizens, aligned with the vision of the NHP. The outcome is a more sustainable and efficient healthcare system achieved. Output 1: National public expenditur management system enhanced. polic actions aim to develop and implemen sustainable medium term fiscal strate and safeguard adequate financing lev for health services. Output 2: Public expenditure reform the health sector implemented. Impr the flow of public resources to service delivery units and their management Output 3: Service delivery in health strengthened. The program will supp improvements in the institutional framework, human resources for hea the referral system and health partnerships.

18 DB s VALUE-ADDED Strategy: Consolidated and integrated portfolio Approach: Programmatic and sector coordination for connectivity Financing Modality: Long-term, multi-year financing, predictable and flexible. Innovation: Sub-national level partnerships to improve implementation and outcomes Using the portfolio to leverage private investments

19 850 kilometers of roads 550 kilometers of roads (O&M) B results 22 bridges 21 airports (domestic) 1 border infrastructure 1 other facilities Electrification and upgrade to renewable energy

20 Thank You