Nov 30 2010
The Asian Development Bank (ADB) announced that it will extend $120 million in loans for setting up renewable energy plants in Papua New Guinea. The renewable energy plants will help the country to meet the gaps in electricity supply in the urban regions.
ADB’s board of directors has agreed to set up a multitranche financing plant for the Town Electrification Investment Program. The program will contribute to the 10-year development plan of PNG Power until 2018. The funding will be provided in two stages.
The investment program’s first tranche will support hydro plants in the Autonomous Region and the Northern Province of Bougainville. The program will also support a 66 kV transmission line that is present in West New Britain.
The transmission plant will offer access to 1 MW of spare production capability from the Lake Hargy hydropower facility. Access will also be provided to a maximum of 3 MW biomass-generated electricity. Funding for the first tranche will incorporate a loan of $40.9 million, which is obtained from regular capital resources. A loan of $16.4 million equivalent to the Asian Development Fund will also be included.
The multitranche program is expected to be completed by December 2016. The first tranche activities will be completed by December 2013.
Source: http://www.adb.org/