Papua New Guinea: Port Moresby Power Grid Development Project.
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Social Monitoring Report
Semi-annual Report
July 2021
Papua New Guinea: Port Moresby Power
Grid Development Project.
Prepared by PNG Power Limited for the Asian Development Bank.
This social monitoring report is a document of the Borrower. The views expressed herein do not
necessarily represent those of ADB Board of Directors, Management, or staff, and may be
preliminary in nature.
In preparing any country program or strategy, financing any project, or by making any designation
of or reference to a particular territory or geographic area in this document, the Asian
Development Bank does not intend to make any judgments as to the legal or other status of any
territory or area.Loan Number: L2998/2999
Project Number: 43197-013
Report: Semi-annual
Social Monitoring Report
(Reporting Period: July – December 2020)
PAPUA NEW GUINEA: PORT MORESBY
POWER GRID DEVELOPMENT PROJECT
Prepared by PNG Power Limited for Asian Development Bank
Submission date: 02 July 2021Table of Contents Contents page no. Table of Contents.................................................................................................................... 3 ABBREVIATIONS ................................................................................................................... 4 1.0 INTRODUCTION............................................................................................................... 5 2.0 BACKGOUND OVERVIEW ............................................................................................... 5 3.0 MONITORING PURPOSE ................................................................................................ 6 4.0 MONITORING ACTIVITIES .............................................................................................. 6 5.0 POM GRID SUB-PROJECT STATUS ............................................................................... 7 6.0 SP1 Activities, Issues, & Updates ..................................................................................... 8 6.1 Site Visits/Inspections ....................................................................................................... 8 6.2 Land Issues....................................................................................................................... 8 7.0 SP4B Activities, Issues, & Updates ................................................................................... 8 7.1 Consultations .................................................................................................................... 8 7.2 Connectivity Update .......................................................................................................... 9 Table 2: SP4B Energy Access Connectivity Update-December 2020 ..................................... 9 8.0 SP 5/6 Activities, Issues & Updates .................................................................................. 9 8.1 Stakeholder Consultation and Awareness ......................................................................... 9 8.2 Rouna and Sirinumu Land Issues Identified. ................................................................... 10 Table 3: SP 5/6 Rouna & Sirinumu HPP Refurbishment Status ............................................ 10 9.0 GRIEVANCE REDRESS ................................................................................................. 10 10.0 CONCLUSION .............................................................................................................. 11 11.0 RECOMMENDED ACTION PLAN ................................................................................. 11 12.0 APPENDIX .................................................................................................................... 12 The following documents can be provided by PPL ................................................................ 12 12.1 Copy of Kilakila Substation Land Title ....................................................................... 12 12.2 Copy of Letter from Morata Hari regarding Trespassing on Dogura Land .................. 12
ABBREVIATIONS ADB Asian Development Bank AP Affected People CBD Central Business District CEMP Construction Environmental Management Plan CEPA Conservation and Environment Protection Authority DEC Dongfang Electric International Corporation DLPP Department of Lands and Physical Planning DRS Deed of Release and Sale EMP Environmental Management Plan GoPNG Government of PNG GRM Grievance Redress Mechanism HSE Health, Safety & Environment HVL High Voltage Line ILG Incorporated Land Group IPBC Independent Public Business Corporation KCH Kumul Consolidated Holdings kV Kilovolt LAA Land Access Agreement LAF Land Agreement Form LG Lease Grant LVL Low Voltage Line MOA Memorandum of Agreement MP Member of Parliament NCD National Capital District PGK Papua New Guinea Kina (Currency) PMU Project Management Unit PNG Papua New Guinea PPGDP Port Moresby Power Grid Development Project PPL PNG Power Limited ROW Right of Way SP Sub-project TL Transmission Line TLI Transfer of Land Instruments TT Transmission Tower VILG VAGA Incorporated Land Group
1.0 INTRODUCTION
The Asian Development Bank (ADB) is supporting Papua New Guinea (PNG) to develop and
expand its energy sector in the Port Moresby Power Grid Development Project (PPGDP)
through a sovereign loan fund. The designated implementation agency is PNG Power Ltd (PPL), a
fully integrated power authority responsible for the generation, transmission, distribution and
retailing of electricity throughout PNG. The project will upgrade and extend the transmission
and distribution grid, improve substation capacity, as well as upgrade and rehabilitate two
existing hydropower plants. It is aimed at reducing fossil fuel consumption, while increasing the
access to energy and improving network reliability in the grid.
2.0 BACKGOUND OVERVIEW
The Port Moresby Power Grid Development Project is funded by ADB loan 2998/2999-PNG1.
The Project Agreement was signed between ADB, the Independent Public Business
Corporation (IPBC)2, and PPL on the 28th of May 2013. The ADB loan and counterpart funding
provided by the Government of PNG (GoPNG) is managed by PPL through its Project
Management Unit (PMU) and supported by the ADB PNG Resident Mission (PNRM). The PMU
is supported by technical assistance from an international consultancy firm namely Fichtner
GmbH Limited Consultant. The Project is aimed to achieve significant improvements in power
generation, supply, efficiency, and reliability.
The Project is subdivided into six subprojects that entail significant investments into power,
transmission, distribution, and generation. It proposes the construction of new facilities and the
rehabilitation of existing facilities serving the Port Moresby Grid. The ADB safeguards
categorization for this project is Category B for the environmental and social component as per
the Safeguards Policy Statement 2009 (SPS, 2009). The Involuntary Resettlement (IR) for this
project is Category B because of the potential resettlement impacts in Kilakila Substations and
Transmission Line (TL) where land acquisition is required. The TL will have a minor impact on
small area of land to be cleared for mounting of poles and the lines will run overhead with no
impact to flora and fauna. The project components are;
I. Subproject 1 (SP1) Kilakila Substation and 66kV Transmission Line.
II. Subproject 2 (SP2) Substation Capacitor Addition.
III. Subproject 3 (SP3) Upgrade of 11kV System to Open Loop Mesh.
IV. Subproject 4 (SP4A) Loss Reduction Program; (SP4B) Energy Access.
V. Subproject 5 (SP5) Rouna 1 Hydropower Plant Rehabilitation & Upgrade.
1
ADB Loan L2998/2999: Port Moresby Power Grid Development Project
2
IPBC is now known as Kumul Consolidated Holdings (KCH).VI. Subproject 6 (SP6) Sirinumu Hydropower Plant Upgrade. Subprojects (i) to (iv) will take place in and around the Port Moresby area in the National Capital District (NCD). Subprojects (v) and (vi) are respectively located about 20km and 35km north east of Port Moresby along the Laloki River valley. Figure 1: POM Power GRID Development Site Plan 3.0 MONITORING PURPOSE Safeguards Monitoring is to ensures that the PPGDP subprojects are compliant to meet ADB’s SPS (2009) requirements and GoPNG regulations on social and environmental sustainability and protection. The monitoring is done monthly, and the reports are submitted semi-annually to ADB as a requirement for disclosure purposes. This monitoring of project development activities was carried and conducted during the months from July to December 2020. 4.0 MONITORING ACTIVITIES The social monitoring activities are carried out by the PMU Safeguard officer to monitor the implementation of the approved Resettlement Plan. This includes updating the stakeholder consultation and awareness activities, grievance redress mechanism (GRM), compensation as well as, social benefits encountered by the project during the reporting period.
The Kila-Kila Sub-project during construction had all monitoring activities carried out on a
weekly basis. Follow ups were done with the stakeholders (if necessary) in relation to issues
affecting the project. The social safeguards issues arising from the sub projects are dealt with
through the PMU-PPL.
Routing inspections are done on a monthly basis along the Transmission Towers for SP1, to
confirm that no new developments are occurring along this line
Consultations with the Rouna and Sirinimu Landowners for SP5/6. The Rouna and Sirinimu
rehabilitation project were schedule to be carried out within the first (1st) and second (2nd)
Quarter of 2020 but could not eventuate due to the current global COVID 19 pandemic issues
and restrictions of movements within the area.
Despite of that, site inspections and monitoring were done on the following areas,
1) Nearby and Surrounding Communities / settlements
2) Transmission Tower Routes
3) Substation Site at Kilakila
4) Access Routes to Transmission Tower sites
5.0 POM GRID SUB-PROJECT STATUS
See table below for overall project updates:
Table 1: PPGDP Subproject Status Update
PPGDP Subproject Date Status Complete %
Kilakila Substation & Civil Works 99 %
1 66kV Transmission 29/04/21 Electrical 100 %
Line OHL 70 %
Substation Capacitor
2 Has moved to the Loss Reduction Team within PPL.
Addition
Upgrade of 11kV Contract signed with PESTECH YOUNGFU
03/02/20 joint venture (PYJ) on 30 Dec 2019
3 System to Open Loop
Mesh 05/10/20 Kick-off Meeting
A) Loss Reduction
Has moved to the Loss Reduction Team within PPL
Program;
4 Undergoing connection 100%
B) Energy Access 29/04/21 Pending energising 11%
Energized 89%
DEC submitted rev 02 of their CEMPs for
Rouna 1& 26/10/20
review
5&6 Sirinumu Hydropower
Plant Upgrade 31/12/20 Mobilisation in the process of completion6.0 SP1 Activities, Issues, & Updates
The main activities covered, and land issues dealt with are in the construction of the Kilakila
Substation & Transmission Line during the reporting period are as follows:
6.1 Site Visits/Inspections
Site visits at the substation site have ceased due to the completion of TL project. Inspections
along the TL route continue on a need basis and follow-ups site inspections.
6.2 Land Issues
The land title certificate for the Kilakila Substation was received from Lands Titles Commission
of DLPP on 21 September 2020, after a lengthy process of customary land acquisition. This land
is now legally owned by PPL.
The long-awaited decision from the district courts for disputed tower locations T3 & T4 was
handed down on 29 December 2020. The granting of the Orders by his Honor Justice Canning’s
in favor of the PPL application to Set-Aside the Interim Injunction/Restraining Order restraining
PPL entering the specific sites where T3 & T4 towers are located. The Judge also refused an
attempt of a Stay Application by the Plaintiff (complainant) after considering PPL’s submission
as well as the Plaintiff. The Order made by his Honor Justice Canning’s are as follows:
The Stay Application by the Plaintiff is Refused Application to Set-Aside the Interim Injunction by
the Defendant (PPL) is Granted. (The Defendant is free to enter site to continue progress effective
4January-2021 after 12-Noon). The substantive matter has been heard at 1:30 pm on 4Feb-2021.
A grievance letter was delivered on 3 September 2020 by one of the landowner groups,
trespassing on customary land where T2 and T1 is going to be located. This land is at the Six
Mile-Taurama (junction) roundabout and it has already been compensated by PPL. The letter
was received by the PMU and given to PPL Legal team to respond. PPL responded that this is
an in-house issue between members of the Uhadi and Iarogaha Incorporated Land Group (ILG).
PPL is not a party to this dispute, so it should not stop the PPL from continuing with the tower
erections.
7.0 SP4B Activities, Issues, & Updates
7.1 Consultations
Regular consultations could not be carried out during the second quarter due to COVID 19restrictions, however any issues of major concerns and needed the stakeholder concerns were
brought to their attention.
7.2 Connectivity Update
Due to COVID 19 restrictions the progress of the installations to most of the rural households
has been slow during the reporting period. However, all the low voltage line connections and
meter installations are 100% complete, while 39% is still to be energized. Summarized in table
below.
Table 2: SP4B Energy Access Connectivity Update-December 2020
Completed Completed
Total Energized
Contractor Villages MSK Service Line
Customers Installations
Installations Stringing
Pari 211 211 100% 211 100% 64 31%
AN2E Kerekadi 20 20 100% 20 100% 20 100%
Contractor Ltd Dinalata 20 20 100% 20 100% 20 100%
Gereka 98 98 100% 98 100% 98 100%
Papua Power Papa village 63 166 100% 166 100% 63 100%
Ltd Boera village 109 109 100% 69 63% 0 0%
Photons Kilakila
96 96 100% 96 100% 124 100%
Engineering & village
Construction Gereka
40 40 100% 0 0% 0 0%
Ltd village
Project Team
34 34 100% 34 100% 34 100%
Installed
Total 691 691 100% 691 100% 424 61%
8.0 SP 5/6 Activities, Issues & Updates
8.1 Stakeholder Consultation and Awareness
The proposed program for community awareness was put on hold by the management hence
as well as with Covid restrictions. This awareness is purposely aimed at the affected
communities within the Rouna and Sirinimu villages. There were other issues that arose due
to internal disputes between landowner factions. This has also delayed the schedule of
awareness programs.8.2 Rouna and Sirinumu Land Issues Identified.
Legacy issues will always be an ongoing matter between the Management of PPL, Eda Ranu,
Government of PNG, and the traditional landowners of Rouna and Sirinumu Dam in Sogeri,
Central Province. The issue is to do with outstanding Royalty Payments owed by the State to the
traditional landowners of Rouna and Sirinimu hydro power stations. Only when the landowners
are satisfied with the assistance provided to them then this issue can be put to rest. In the
meantime, the project has engaged six males from the landowner groups to work on the sub-
project hence ease the tensions and work has progressed.
Table 3: SP 5/6 Rouna & Sirinumu HPP Refurbishment Status
Activity Date Status
Contract Contract awarded to Dongfang Electric
19 April 2019
Awarding International Corporation (DEC)
Project In-house disputes between different
Awareness & 3rd Quarter landowner factions, coupled with Covid
Consultation (ILG 2021 restrictions delayed this from eventuating.
Meeting) Will plan for third quarter 2021.
Mobilization 7 July 2020 Final 20% was received
9.0 GRIEVANCE REDRESS
The Grievance Redress Mechanism (GRM) is the same for both the environmental social
safeguards and PMU is the focal for coordination with legal team and or responding to affected
people following GRM. The GRM process can be seen in figure 2. All grievance and issues
arising from the sub-projects are made known to the PMU or the Contractor. Landowners
including the ILG executives are consulted when there is a matter regarding the land then
followed by recording of grievance and redressed through GRM.
The grievances received during this reporting period have been outlined above and are all
following the GRM process for redressing those grievances.Figure 2: GRM Process Flow Chart
10.0 CONCLUSION
In this monitoring period there were delays in carrying out of Social Safeguard programs.
Especially the awareness activity presentations that were supposed to take place at sub-
projects (SP) five (5) and six (6). These difficulties were due to COVID19 restrictions on
communal gatherings and internal landowner differences. SP1 the land issues for T3 and T4
were sorted by the courts at the end of December 2020. The land disputes for T1 and T2 were
regarded as internal infighting between clan members of Uhadi-Iarogaha ILG therefore the
risk of stop work is minimal or less likely.
11.0 RECOMMENDED ACTION PLAN
Table 4: Action Plan
Action to be When (Completion
No Items (issue) By Whom
undertaken date)
SP1 T1 and T2 PPL Legal PPL Legal
1.0 Seeking Restraining
land Issue Service team OrderSP 5/6 Project P. Omaro
2.0 Organising Pending
Awareness
/L. Naris
SP 5/6 Financial
3.0 Organising P. Omaro Pending
Literacy Training
12.0 APPENDIX
The following documents can be provided by PPL
12.1 Copy of Kilakila Substation Land Title
12.2 Copy of Letter from Morata Hari regarding Trespassing on Dogura LandYou can also read
