Concept Paper

Project Number: 43197-013 February 2011

Papua New Guinea: Port Moresby Power Grid Development Project

I. THE PROJECT A. Rationale

1. The proposed Port Moresby Grid Development Project (Project) will upgrade and extend the transmission and distribution grid in the national capital, Port Moresby, thereby improving the reliability and quality of power supply to the main urban center in Papua New Guinea (PNG), improving the energy efficiency of power delivery, and enabling delivery of essential power to rapidly expanding areas of Port Moresby. A project preparation technical assistance (TA) will be undertaken for the due diligence of the proposed project (Appendix 5). 2. In PNG, power grids are restricted to urban areas, and supply is often unreliable and represents a high percentage of household expenditure.1 In Port Moresby, power outages are becoming increasingly frequent due to insufficient generation and undersized and poorly maintained transmission and distribution systems. Because of the unreliability of the power supply, there is considerable self-generation and back-up generation capacity in the urban areas, which is maintained and operated at high cost and low efficiencies. Lack of access to affordable, reliable power is limiting economic growth in urban areas and constraining growth in smaller urban centers. Load forecasts for the Port Moresby power grid have increased significantly in recent years and demand is expected to rise significantly in coming years,2 fuelled by high economic growth associated with the proposed Liquefied Natural Gas Plant as well as continued growth in the mining sector and associated industry. Large additional generation is planned3 to support the expanding demand and the existing Port Moresby grid requires (i) upgrading to support the additional load, and (ii) extension to supply new industrial and residential areas. System upgrades are required to lower system losses4

and to improve grid efficiencies. This will result in rationalization of tariffs due to operational efficiencies.

3. PNG Power Limited (PPL) manages generation (total capacity of 300 MW), transmission, distribution and retail, consisting of two main grids (Port Moresby and Ramu Grid) and 26 other smaller urban centers through 19 independent power systems. The Port Moresby grid is isolated from the remainder of the country and has a peak load of about 99MW. Power tariffs are independently regulated by the Consumer and Competition Commission (ICCC) and allow full cost recovery for PPL. The Government's ownership in PPL is maintained through the Independent Public Business Corporation (IPBC). Sector policy formulation is managed by the Ministry of Petroleum and Energy and, specifically, the Energy Division of the Department of Petroleum and Energy (DPE). The electrification access rate in PNG is low, at around 10%, but access in Port Moresby is higher at about 80-90%. 4. The proposed project is in line with the (i) PNG country strategy and program 2011–2015 of the Asian Development Bank (ADB),5

which prioritizes energy as a key area of support, and (ii) PNG Development Strategic Plan 2010–20306

1 Electricity tariffs are 53.19toea/kWh (USc20.1/kWh) for residential customers on prepayment meters and

73.49toea/kWh (USc27.7/kWh) for general customers on prepayment meters.

priority of extending transmission grids and improving power supply. The government has recently prepared the draft electricity industry

2 Peak demand is anticipated to increase 30% in the next 5 years (annual average 6%) and 46% in the next 10 years (annual average of 4.6%).

3 New generation capacity for Port Moresby will consist of diesel generation in the short term which can be converted to gas, as well as additional hydropower generation (Naoro-Brown 60MW) in the medium term.

4 The Port Moresby grid currently has an estimated 16.9% system losses. 5 ADB. 2010. Country Strategy and Program: Papua New Guinea, 2011–2015. Manila. 6 Government of PNG, Department of National Planning and Monitoring. 2010. Papua New Guinea Development

Strategic Plan 2010–2030. Port Moresby. (March).

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policy (EIP), which recognizes the (i) low level of electricity access, (ii) unreliability of electricity supply and subsequent economic impacts, (iii) high costs for private sector in terms of cost of power as well as unreliability of service, and (iv) difficulties faced by PPL in raising capital for infrastructure investments. While the EIP proposes facilitating competition for power generation, it does not envisage introducing competition in the transmission and distribution sectors. The proposed development of the PNG power sector, including Port Moresby is detailed in the PPL 10-year power development plan (PDP). While the PDP provides high level identification of key transmission and distribution infrastructure and identifies the urgency of investment requirements, it does not include a detailed Grid Masterplan with technical and financial justification for prioritizing of investments. B. Impact, Outcome, and Outputs

5. The impact of the Project will be increased economic activity amongst PPL’s commercial and industrial customers. The outcome of the Project will be improved utilization of reliable power supply for Port Moresby. The outputs of the Project will be (i) transmission lines constructed and operated by PPL, (ii) distribution grids constructed and operated by PPL, (iii) substations constructed and operated by PPL and (iv) capacity building activities.7

C. Investment and Financing Plans

6. The tentative project cost is estimated at $100 million. ADB will finance $80 million (80%) and the Government will finance $20 million (20%) through equity contributions from the project sponsors. A loan up to $80 million from ADB’s ordinary capital resources will be provided under ADB’s London interbank official rate (LIBOR)-based lending facility. The loan will have a 24-year term including a grace period of 8 years, and interest rate determined in accordance with ADB’s LIBOR-based lending facility, an applicable commitment charge, and such other terms and conditions set forth in the loan and project agreements. The ADB loan will be used for civil works, equipment and supplies, consulting services, interest during construction and commitment charges during implementation of the loan. The implementing agency will finance contingencies and land acquisition and resettlement costs. The borrower will be the Government of Papua New Guinea, which will make the proceeds of the ADB loan available to PPL through a subsidiary loan. The borrower will assume the risks for foreign exchange variations.

Table 1: Tentative Financing Plan Source Amount

($ million) Share of Total (%)

Asian Development Bank 80.00 80 Government 20.00 20

Total 100.00 100

Sources: Government of PNG and ADB estimates D. Indicative Implementation Arrangements

7. The IPBC will be the executing agency (EA) and PPL will be the implementing agency for the project. A Project Steering Committee (PSC) will be established to review project progress, coordinate inter-ministerial activities and guide PMU activities. A Program 7 Based on current estimates, it is envisaged that the Project may include support for about 6 substations, about

150km 66kV transmission line and about 200km of distribution line, all located in the urban area of Port Moresby.

3

Management Unit will be established within PPL and will be supported by implementation consultants. All equipment and civil works procurement will be conducted in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). Consultants will be recruited in line with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time), through consulting firm and individual selection method. Consulting firms will be selected through quality and cost based selection method (quality-cost ratio of 90:10) using simplified technical proposal. The procurement method will be international competitive bidding, national competitive bidding or shopping procedures. Advance contracting and retroactive financing up to 20% of the loan amount will be considered.

II. DUE DILIGENCE REQUIRED

8. Various aspects of due diligence will be conducted through the project preparation TA: (i) Technical. Due diligence on technology selection will be conducted through (i)

support for a development of a Grid Masterplan which will prioritize grid investments and optimize grid design, (ii) support for a feasibility study which will identify optimum substation design, and (iii) support for design of transmission and distribution systems. Assessments will also be undertaken of the implementing agencies technical capacity of the implementing agency.

(ii) Economic and financial. Economic and financial analysis will be undertaken of the project in accordance with ADB’s financial management and analysis8 and economic analysis9

(iii) Procurement. Procurement capacity assessment of PPL will be undertaken by the TA consultants. Indicative procurement packages will be prepared.

guidelines to confirm the economic and financial viability of the project. Also, the financial management and internal controls assessment and design of funds flow and disbursement arrangements will be conducted.

(iv) Poverty and Social. Social and poverty analysis will be conducted for the preparation of summary poverty reduction and social strategies with focus on conducting analysis on gender, affordability, and potential job creation.

(v) Safeguards. All safeguards will be addressed in accordance with the Asian Development Bank Safeguard Policy Statement, June 2009. An environmental assessment will be carried out to ensure that potential adverse environmental impacts are mitigated; the impact from involuntary land acquisition and/or restrictions on land use will be assessed and resettlement plans prepared, as required; and any impact on indigenous peoples will be assessed and necessary measures will be included in the project design.

9. Previous projects undertaken in PNG indicate that major risks to timely implementation could be anticipated from land ownership disputes. Due diligence will focus on ensuring that land ownership issues are fully assessed and managed. Other risks could be anticipated from lack of available civil works contractors due to the construction boom currently underway in PNG.

8 The analysis will be guided by ADB’s (i) Financial Management and Analysis of Projects (2005), (ii) Financial Due

Diligence Methodology Note (2009), (iii) Financial Management Assessment Questionnaire, and (iv) Technical Note of the Preparation and Presentation of Cost Estimates for Projects Financed by ADB (2008).

9 ADB. Guidelines for the Economic Analysis of Projects (1997).

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III. PROCESSING PLAN

A. Risk Categorization

10. OM D11/OP indicates a categorization as 'low risk' if the project has all of the following features: "(i) a loan amount not exceeding $200 million for projects, (ii) a sound record of ADB's previous experience in the sector in the concerned country, (iii) reasonable executing agency capacity in terms of externally financed project administration; and (iv) safeguard classification other than A". The Project is considered low risk due to the following:

(i) The loan amount is less than $200 million. (ii) ADB has had a sound engagement record in the energy sector in PNG. ADB is

currently implementing TAs10 in the power sector in PNG and has recently completed preparation of the national Power Sector Development Plan11

(iii) The EA (IPBC) has good experience in the management of externally financed loans and is currently the EA for Loan 2398/2399 Lae Port Development Project (approved 2007). The IA for the Project (PPL) has good project implementation experience demonstrated by the ongoing management of approximately 300MW of generation capacity (largest installed generation capacity in the Pacific), and the following recently completed or ongoing major projects, (i) Hidden Valley transmission interconnection project, (ii) Toe of Yonki Dam hydropower development (16 MW capacity), (iii) Rouna hydropower upgrades, and (iv) Port Moresby substation replacement. PPL has a major projects unit with dedicated engineers focused on delivery of a pipeline of capital infrastructure projects. PPL are the implementing agency for the Loan 2713/2714-PNG Town Electrification Investment Program, which was classified as low risk.

(TCR rated successful). In 2010 ADB approved Loan 2713/2714-PNG Town Electrification Investment Program ($150 million Multitranche Financing Facility), which was categorized as low risk. The PNG Government has indicated satisfaction with the ongoing support in the power sector.

(iv) Safeguard classifications are lower than A. B. Resource Requirements

11. A total of 9 person-months of staff resources will be required for team members as follows: Anthony Maxwell, team leader, 4 person months; Robert Kesterton, financial analysis, 1 person month; Allison Woodruff, economic analysis, 1 person month, Jay Roop, environmental analysis, 0.5 person months; Nogendra Sapkota, social safeguard analysis, 0.5 person month; Sunhwa Lee, gender analysis, 0.5 person months; TBD, legal issues, 0.5 person months; Ganiga Ganiga, project officer, 0.5 person months; and Andrew Jeffries, peer review, 0.5 person months. A project preparatory technical assistance is required and details are provided in Appendix 5.

10 2009. Regional Technical Assistance for Promoting Access to Renewable Energy in the Pacific. Manila; 2009.

Regional Technical Assistance for Promoting Energy Efficiency in the Pacific. Manila; 2007. Technical Assistance for Papua New Guinea for Power Sector Development Plan. Manila.

11 2008. PPTA-7113-PNG: Preparing the Power Sector Development Project.

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C. Processing Schedule

12. The proposed processing schedule is described in Table 2.

Table 2: Proposed Processing Schedule

IV. KEY ISSUES

13. The major issue identified at the concept paper stage is the lack of a technically detailed masterplan on which to prioritize investments in transmission and distribution on the Port Moresby grid. This is being addressed through provision of support for development of the Port Moresby Grid Masterplan under the project preparation TA.

Milestones Expected Completion Date PPTA Reconnaissance December 2010 Loan Fact Finding March 2012 Interdepartmental review and sector-focused review April 2012

Staff Review Meeting April 2012 Loan Negotiations May 2012 Board Consideration June 2012 Loan Signing August 2012 Loan Effectiveness October 2012 PPTA = project preparation technical assistance. Source: Asian Development Bank estimates.

6 Appendix 1

BASIC PROJECT INFORMATION Aspects Arrangements Modality Project Loan

Financing ADB: $80 million (from ordinary capital resources)

Equity: $20 million

COBP/RCOBP ADB. 2010. Country Operations Business Plan 2010-2012: Papua New Guinea. Manila

Classification Sector (subsectors): Energy (electricity transmission and distribution) Themes (subthemes): Economic Growth (promoting economic efficiency and enabling business environment)

Targeting classification: General Intervention Gender mainstreaming category: Category III (some gender benefits) Location impact: urban (high) Safeguards: B for environment and C for involuntary resettlement and indigenous peoples

Risk categorization Low risk

Partnership(s) Not applicable

Use of a PBA Not applicable

Parallel PIU Not applicable

Department and division Pacific Department/Transport, Energy and Natural Resources Division (PATE)

Mission leader and members Mission Leader: Anthony Maxwell Mission Members: Robert Kesterton Allison Woodruff Jay Roop Nogendra Sapkota Sunhwa Lee Ganiga Ganiga Andrew Jeffries

ADB = Asian Development Bank, COBP = country operations business plan, PBA = programmatic based approach, PIU = project implementation unit, RCOBP = regional cooperation operations business plan.

Appendix 2

7

PROBLEM TREE

CBD = central business district, PPL = PNG Power Ltd. Source: Asian Development Bank.

Unreliable power supply in Port Moresby

(core problem)

Insufficient power generation capacity

Lack of power transmission and distribution infrastructure in some areas

Low quality existing transmission and distribution grids

Rapidly expanding new urban areas

Increased demand density in CBD

Insufficient maintenance

PPL limited capacity

PPL limited access to financing

Poor grid planning

Poor asset management

Private sector investment discouraged

Poor provision of essential services

Losses for commercial and industrial sector

Reduced employment opportunities

Reduced revenue for power utility

Impact on health services

Reduced quality of education services

PPL limited access to financing

Poor water supply

High costs of self generation

Lower incomes

8 Appendix 3

PRELIMINARY DESIGN AND MONITORING FRAMEWORK

Design Summary Performance Targets

and Indicators Data Sources and

Reporting Mechanisms Assumptions

and Risks Impact Commercial and industrial PNG Power Ltd. (PPL) customers increase economic activities

Increased profit for commercial and industrial customers by 10% by 2018

Chamber of Commerce Annual Report

Assumptions Projected growth of Port Moresby continues Risks PPL continue reform

Outcome PPL provides improved power supply for Port Moresby

Reduced self-power generation by customers (business and industrial) by 20% in Port Moresby by the end of 2018 (measured in MWh) Reduced frequency and duration of outages13

by X% in Port Moresby by the end of 2018 against 2012 baseline

PPL Annual Report

Assumptions • Improved power supply will

encourage private sector and improve economic conditions.

• Planned power generation investments moves ahead

Risks • Land ownership and

environmental issues delay feasibility studies

• Other external factors will act to prevent the private sector from expanding and benefiting from the improved power supply.

Outputs 1. PPL expands and rehabilitates transmission grid 2. PPL expands and rehabilitates distribution grid 3. PPL expands and rehabilitates substations 4. PPL has capacity to undertake planning

Targets relative to 2012 baseline Construction of 150km of transmission line by 2018 Construction of 200km of distribution line by 2018 Connection of X new customers by 2018 Construction of 6 substations by 2018 Annual review of system upgrades

PPL Annual Report PPL Annual Report PPL Annual Report Quarterly Board Report

Risks • PPL reassign key technical

staff

13 Measured by System Average Interruption Frequency Index (SAIFI) and System Average Interruption Duration

Index (SAIDI)

Appendix 3 9

Appendix 2

9

Design Summary Performance Targets

and Indicators Data Sources and

Reporting Mechanisms Assumptions

and Risks 5. Efficient project management services

Prepared Port Moresby Grid Masterplan by 2012

Masterplan submitted by PPTA Consultants

Activities with Milestones Inputs PPL expands transmission grid 1.1 Preparation of design and bid documents by month 4 of each

subproject 1.2 Tendering and award of equipment packages by month 8 of each

subproject 1.3 Contractor commence construction of transmission line by month 12 of

each subproject 1.4 Contractor complete construction of transmission line by month 18 of

each subproject PPL expands distribution grid 2.1 Preparation of design and bid documents by month 4 of each

subproject 2.2 Tendering and award of equipment packages by month 8 of each

subproject 2.3 Contractor commence construction of transmission line by month 12 of

each subproject 2.4 Contractor complete construction of transmission line by month 18 of

each subproject PPL expands number of substations 3.1 Prepare design and bid documents by month 6 of each subproject 3.2 Tender and award of civil works contracts by month 10 of each

subproject 3.3 Commence construction activities by month 14 of each subproject 3.4 Equipment delivered to site by month 16 of each subproject 3.5 Completion of civil works construction by month 20 of each subproject PPL has capacity to undertake planning 4.1 Mobilize Masterplan Consultants by March 2011 4.2 Conduct training of PPL staff by July 2011 4.3 Hold Consultation Workshop by May 2011 4.4 Submit Final Report by July 2011 Efficient project management services 5.1 PMU established within PPL by month 2 5.2 Short-listing of consultants by month 2 5.3 Award consulting contract by month 6 5.4 Fielding of consultants by month 10

ADB: $80 million Government: $20 million

ADB = Asian Development Bank, MWh = megawatt-hour, PMU = Project Management Unit, PPL = PNG Power Ltd. Source: Asian Development Bank.

10 Appendix 4

PROJECT PREPARATORY TECHNICAL ASSISTANCE A. Justification

1 A project preparation technical assistance (TA) is required to (i) assess grid development alternatives to ensure selected investments are least cost, (ii) prepare feasibility studies for selected investments, (iii) conduct due diligence on the proposed project, (iv) undertake capacity building on system planning and maintenance, and (v) familiarize the implementing agency with ADB’s procurement procedures, disbursement procedures, and safeguard requirements. B. Major Outputs and Activities

2 The major outputs and activities are summarized in Table A4.1.

Table A4.1: Summary of Major Outputs and Activities

Major Activities Expected

Completion Date Major Outputs Expected

Completion Date Prepare Port Moresby Power System Masterplan

June 2011 Technical justification established that selected project are optimal infrastructure investments

June 2011

Conduct Stakeholder Workshop

May 2011 Consensus is reached between stakeholders regarding proposed scope of works

May 2011

Conduct due diligence on technical, economic, financial, environment, governance, sector policy, social dimensions, procurement, and safeguards.

February 2012 Due diligence completed to provide basis for project justification

February 2012

Source: Asian Development Bank. C. Cost Estimate and Proposed Financing Arrangement

3 The TA is estimated to cost $1,400,000 equivalent, of which $1,200,000 equivalent will be financed on a grant basis by ADB's Technical Assistance Special Fund (TASF-IV). The Government will provide the remaining $200,000 equivalent, which will cover in-kind counterpart costs and services including counterpart staff, office space, furniture, administrative support costs, and local city transport and logistic costs. The detailed cost estimate is presented in Table A4.2.

Appendix 4 11

Table A4.2 Draft Cost Estimates and Financing Plan

($'000)

Item Total Cost

A. ADB Financinga 1. Consultants a. Remuneration and per diem i. International consultants (28 person-months) 826.0 ii. National consultants (18 person-months) 90.0 b. International and local travel 62.0 c. Reports and communications 10.0 2. Equipment (computer, printer, software, etc)b 12.0 3. Workshops, training, seminars, and conferences 50.0 4. Surveys 55.0 5. Miscellaneous administration and support costs 5.0 6. Representative for contract negotiations 10.0 7. Contingencies 80.0 Subtotal (A) 1,200.0 B. Government Financing 1. Office accommodation and transport 50.0 2. Remuneration and per diem of counterpart staff 100.0 3. Contingencies 50.0 Subtotal (B) 200.0 Total 1,400.0

a Financed by the Asian Development Bank's Technical Assistance Special Fund (TASF-IV) b Equipment

Type Quantity Cost System Modeling Software 1 $6,000 Utility GIS Data Collector 1 $6,000

Source(s): ADB Estimates. D. Consulting Services

4 The TA will be implemented in two parts in order to strengthen the technical rationale for the project and streamline processing. Part A will include preparation of the Port Moresby Power System Masterplan and will require a total of 8 person-months. Part B will include project preparation due diligence and will require 20 person-months international consultants and 18 person months national consultants to be hired through a consulting firm. Consultants will be engaged by ADB in accordance with the Guidelines on the Use of Consultants (2010, as amended from time to time). Part A consultants will be engaged as individual consultants14 and Part B consultants will be engaged through quality and cost based selection method (quality-cost ratio of 90:10)15

14 Consultant recruitment as individuals is considered necessary as there is little technical dependency between the

consultants, and the technical skill sets are difficult to locate.

using simplified technical proposal. The equipment under the TA will be procured by the IA, following ADB’s Procurement Guidelines (2010, as amended from time to time). The proceeds of the TA will be disbursed in line with ADB’s Technical Assistance

15 The quality-cost ratio of 90:10 is justified due to the technical complexity of substation design and power grid design.

12 Appendix 4

Disbursement Handbook (2010, as amended from time to time). The equipment procured under the TA will be turned over to the executing agency upon TA completion.

Table A4.3: Summary of Consulting Services Requirement

International National Name of Positions Person-

months Name of Positions Person-

months Part A: Preparation of Port Moresby Power System Master Plan Network Planner 3.5 System Modeling Specialist 3.0 Financial Specialist 1.5 Subtotal (A) 8 Part B: Project Preparation Technical Assistance Transmission Specialist/Team Leader 6 Transmission Specialist 6 Financial Specialist 2 Social Impact/Resettlement Specialist 2 Power Economist 2 Environment Specialist 2 Social Impact/Resettlement Specialist 2 Environment Specialist 2 Other Technical Specialists 6 Subtotal (B) 20 10 Source: Asian Development Bank 5 The outline terms of references for the project preparatory TA consultants are described in paras. 6 to 14.

Part A: Preparation of the Port Moresby Power System Masterplan

6 International Network Planner (3.5 person months). The Network Planner will have a minimum of 15 years demonstrated experience in design and analysis of transmission and distribution grids. The network planner will be experienced in the preparation of grid planning documents. The consultant will spend at least 80% of the time in-country. The Consultants’ work will consist of the following:

(i) Act as Team Leader for the preparation of the Port Moresby Grid Masterplan (Masterplan).

(ii) Review available background reports regarding the existing Port Moresby grid and PNG Power Ltd (PPL) development plans. Assess generation capacity expansion plans.

(iii) Provide an independent assessment of the demand forecasts for Port Moresby. (iv) Work closely with PPL system planning engineers to broadly assess the existing

Port Moresby grid, including but not limited to: (i) existing infrastructure, (ii) system management, and (iii) system planning, including the PPL 10 Year Power Development Plan16

(v) Hold a 1-day Stakeholder Consultation Workshop with relevant stakeholders to assess system issues and discuss the proposed potentiall expansion options. Confirm proposed grid development objectives (indicative objectives presented in the Port Moresby Grid Preliminary Assessment Report).

. Review demand projections and proposed generation expansion plans.

16 PNG Power Ltd, National and Provincial Ten Year Power Development Plan, 2009-2018, November 2009.

Appendix 4 13

(vi) Work closely with GIS engineer to produce a network (generation, transmission, distribution) GIS plan. The plan will not include distribution feeder level data. Include existing and proposed infrastructure for presentation purposes.

(vii) Identify alternative grid development scenarios to achieve PPL’s development objectives, listed in the Port Moresby Power System Preliminary Assessment Report, and as confirmed through the Stakeholder Consultation Workshop. Scenarios will include analysis of alternative infrastructure configurations and optimum implementation phasing options.

(viii) Assess PPL’s operation and maintenance systems planning capacity. In close co-ordination with PPL, design revised operation and maintenance systems and incorporate into the Masterplan.

(ix) Design training activities for PPL to manage the system model. Implement training.

(x) Verify POM grid system losses, including separation of technical and commercial losses.

(xi) Work closely with the System Modeling Specialist to assess viability of alternative scenarios.

(xii) Work closely with the Port Moresby urban planners to understand proposed areas of development.

(xiii) Confirm PPL cost estimates for infrastructure developments. Establish cost estimates where currently not provided. This shall be completed through (a) assessing PPL’s ongoing supply contracts, and (b) contact equipment suppliers.

(xiv) Work closely with the Financial Specialist to provide costing data for financial analysis.

(xv) Based on selected priority scenarios, prepare 15 year investment forecasts. (xvi) Prepare the Draft Masterplan in accordance with the proposed Table of

Contents. (xvii) Prepare separate issues paper for management consideration outlining

institutional and human resource barriers to system planning (xviii) Hold System Planning Workshop to present findings and receive comments. (xix) Incorporate comments from PPL, ADB and other stakeholders to the Draft

Masterplan into the final Masterplan. (xx) Liaise with the consultants undertaking the Ramu Grid Masterplan to ensure

consistency of approach. 7 International System Modeling Specialist (3 person months). The System Modeling Specialist will have a minimum of 10 years demonstrated experience in modeling and analysis of power systems covering generation, transmission and distribution. The System Modeling Specialist will be experienced in the use of ETAP and PSSE power system modeling and analysis software17

. The consultant will spend 100% of the time in-country. The Specialist will be supported by two PPL engineers to assist with establishment of databases and undertake system analysis. The Consultants’ work will consist of the following:

(i) Review current databases and available software. (ii) Determine data requirements. Manage sourcing of required system data from

Port Moresby grid, supported by PPL staff. (iii) Work closely with PPL GIS engineer to obtain available system data.

17 PPL currently have ETAP v7.1 software, however robust databases have yet to be established and staff have

limited software operational experience. PSSE v5.0 has also been purchased but is not functional.

14 Appendix 4

(iv) Work closely with PPL to determine which modeling software will be used for system analysis (ETAP or PSSE).

(v) Review licensing of software and advise on upgrades if required. (vi) Enter system data into selected software for modeling and analysis purposes. (vii) Work closely with the Network Planner to obtain details of alternative scenarios. (viii) Undertake modeling of alternative system scenarios. (ix) Prepare report comparing alternative scenarios, as directed by the Network

Planner. The report will include details of the analysis of alternative scenarios and recommendations on optimum scenarios.

(x) Provide training to PPL staff on software database establishment, operation and system maintenance.

(xi) Present results of analysis at the System Planning Workshop. (xii) Prepare relevant report sections of the Port Moresby Power Grid Masterplan, in

accordance with the Draft Table of Contents and the as directed by the Team Leader.

(xiii) Incorporate comments from PPL, ADB and other stakeholders to the Draft Masterplan into the final Masterplan.

8 International Financial Specialist (1.5 person-months). The Financial Specialist will have at least 10 years experience in project financial analysis, preferably for the power sector. The consultant will spend 80% of the time in-country. The Consultants’ work will consist of the following:

(i) Work closely with Network Planner to obtain cost estimates for alternative scenarios.

(ii) Establish financial models for alternative infrastructure configuration scenarios and implementation phasing options.

(iii) Conduct financial analysis of alternative scenarios as required by the Network Planner and the ADB team leader.

(iv) Financial analysis will include the development of relevant assumptions and the calculation of Weighted Average Cost of Capital (WACC) and Financial Internal Rate of Return (FIRR) for the alternative scenarios in accordance with ADB guidelines.

(v) Prepare relevant report sections of the Port Moresby Power Grid Masterplan, in accordance with the Draft Table of Contents and the as directed by the Team Leader.

(vi) Incorporate comments from PPL, ADB and other stakeholders to the Draft Masterplan into the final Masterplan.

Part B: Preparation of the Port Moresby Grid Development Project

9 Transmission Engineers (international 6 person-months, national 6 person months). The international transmission engineer will act as team lead. The team leader will be responsible for managing and coordinating the overall project preparation technical assistance (PPTA) implementation as well as all reporting activities, and liaison with stakeholders. The transmission engineers will have at least 15 years experience in infrastructure development of transmission and distribution projects. The International transmission engineer will have experience on ADB projects. The consultant will spend 100% of the time in-country. The Consultants’ work will consist of the following:

Appendix 4 15

(i) Collect and review relevant existing background data, including the Port Moresby Grid Masterplan. Confirm that the proposed projects are the least-cost expansion options.

(ii) Liaise closely with main stakeholders including but not limited to Independent public Business Corporation (IPBC), DPE, PNG Power, PNG Sustainable Energy Limited (PNGSEL), private sector, and Provincial Governments.

(iii) Prepare a consultation and participation plan, summarizing proposed stakeholder consultation activities. Coordinate and undertake consultation activities according to the consultation and participation plan.

(iv) Prepare the detailed work program and implementation schedule for the PPTA, and coordinate the work of the consultants on the team.

(v) Prepare Feasibility Studies for the project. (vi) Work closely with PNG Power to obtain all relevant national approvals for the

proposed development. (vii) Coordinate team members to prepare reporting deliverables, including inception

report, midterm report, draft final report and final report. (viii) The Draft Final Report will include the project proposal following the format of the

ADB Report and Recommendation to the President (RRP) with appendices (including supplementary).

(ix) Assess and recommend options for improving energy efficiency of the Port Moresby transmission and distribution grid.

(x) Assess current maintenance programs and procedures. Assist in developing improved maintenance procedures and conduct maintenance training.

(xi) Prepare the detailed design and monitoring framework (DMF), including stakeholder analysis, problem and objectives tree (involving key stakeholders), and alternatives analysis. Analyze lessons from previous and similar projects. Conduct stakeholder workshops to prepare the DMF.

(xii) Design the electrical components of the projects, including but not limited to station switching arrangements, system voltage, transmission line conductor size, voltage regulation and reactive power compensation, transformers, auto-reclosing, auxillary supply, and control and protection.

(xiii) Prepare a procurement plan in accordance with ADB Procurement Guidelines (April 2010, as amended from time to time).

(xiv) Conduct training on ADB procurement and disbursement procedures. (xv) Assess number of new customers to be connected as a result of the Project. (xvi) Assess the project cost estimates, including unit costs and estimates of

quantities for project components, identification of local and foreign cost components, and physical and price contingencies.

(xvii) Assess the impact of the projects on the electrification rates in Port Moresby. (xviii) Prepare the project implementation schedule, a Gantt chart showing the

schedule, and a procurement schedule. Assess the plan’s technical risks and carry out sensitivity analysis to check project viability under these risks. Prepare terms of reference, expertise requirements, and person-month and cost estimates for implementation consulting services.

(xix) Prepare system diagrams and plans (using AutoCAD or similar package), showing existing and proposed transmission and distribution alignments (including overlays on aerial/satellite photography). The plans should clearly show expansion proposals.

(xx) For project monitoring purposes, develop a set of performance indicators (in coordination with other relevant technical experts) that can be verified and

16 Appendix 4

monitored (including operating, financial, environmental, socioeconomic, and poverty reduction parameters).

(xxi) In addition, the national transmission engineer will assist the project team in (a) arranging travel logistics, (b) arranging meetings and workshops, (c) liaise closely with stakeholders, including government officials, (d) obtaining relevant country background data for initial assessments, (e) obtaining follow up technical data as required, and (f) undertake other project related activities as requested by the team leader.

10 International Financial Specialist (2 person-months). The Financial Specialist will have at least 10 years experience in project financial analysis, preferably for the power sector. The consultant will spend 80% of the time in-country. The Consultants’ work will consist of the following:

(i) Prepare cost estimates and financing plans for the project. Carry out in-depth financial analysis of the project, including calculation of the FIRR and WACC under the proposed financing structure and in accordance with ADB guidelines. Identify key project risks and conduct relevant sensitivity analysis based on these risks. Outline practical strategies and approaches to mitigate the risks.

(ii) Prepare current and forecast cash-flow statements for the Port Moresby grid. Calculate the levelised cost of generation and return on investment and compare to PNG Power's national tariff and target return on investment.

(iii) Conduct a detailed review of the audited and unaudited financial statements of the IA for the past 5 years to assess (a) historical financial performance, (b) retail tariffs, (c) capital structure, and (d) sufficient generation of internal funds to support sustainability of ongoing operations (i.e., the ability to service existing debts and to finance a reasonable proportion of capital expenditures).

(iv) Assess electricity tariff structure, including how the transmission and distribution operation and maintenance costs are calculated. Propose options, if any, to improve funding of transmission and distribution operation and maintenance.

(v) Prepare projected financial statements (balance sheet, income statement, and statement of cash flows) for the IA for 10 years. Undertake a sensitivity analysis.

(vi) Complete relevant sections of the RRP, including key financial indicators and covenants and preparation of the appendices including Financial Analysis and Financial Performance and Projections.

(vii) Carry out the financial management and internal controls assessment of PPL in accordance with ADB guidelines and summarize the findings for inclusion in the RRP. Design the funds flow and disbursement arrangement for the ensuing project.

11 International Power Economist (2 person-months). The Power Economist should hold a post-graduate degree in economics or equivalent will have at least 10 years experience in project economic analysis, preferably for the power sector. In depth knowledge and experience in the application economic analysis methodologies outlined ADB Handbook on Economic Analysis of Projects is required. The consultant will spend 80% of the time in-country. The Consultants’ work will consist of the following:

(i) Carry out an economic analysis for the project specifically including (a) power demand analysis, (b) least-cost analysis, and (c) economic viability analysis using the methodology outlined in the ADB Guidelines of the Economic Analysis of Projects.

Appendix 4 17

(ii) Incorporate into the economic analysis an economic quantification of environmental impact due to the project following ADB’s Economic Valuation of Environmental Impacts: A Workbook (1996), and Environmental Assessment Guidelines (2003). Discuss the assumptions and economic parameters used in the economic analysis, including the assumed consumers’ willingness to pay and resource cost savings in relation to alternative options.

(iii) Calculate an economic internal rate of return for the subprojects. Identify and analyze likely economic uncertainties that could affect the project's viability, and undertake risk and sensitivity analysis with respect to the economic internal rate of return in accordance with ADB’s Handbook for Integrating Risk Analysis in the Economic Analysis of Projects.

(iv) Prepare the following appendices to the RRP: (i) project economic analysis, including demand forecast, least-cost analysis, economic internal rate of return, and risk analysis, (ii) environmental economic benefits analysis, and (iii) sector analysis.

12 Social Impact/Resettlement Specialists (international 2 person-months, national 2 person months). The Specialists will have at least 10 years experience in project financial analysis, preferably for the power sector. The consultant will spend 80% of the time in-country. The Consultants’ work will consist of the following:

(i) Collect available reports and published statistics that are relevant to the project. Identify the project stakeholders and examine their existing rights and possible risks from the project.

(ii) Working closely with the IA, organize and conduct surveys in the project area, and consult with the Government and non-government organizations to supplement secondary data. Prepare poverty and social profiles of the project area.

(iii) Work closely with the IA to develop a culturally appropriate stakeholder and community consultation plan that is inclusive of diverse social groups as well as equal representation of women and men in communities. Include the stakeholder consultation plan in the Inception Report.

(iv) Conduct stakeholder and community consultation activities including focus group consultations to examine socioeconomic characteristics of the project area and expected social and economic benefits of the project.

(v) Assess the pro-poor impacts of the project, taking into account linkage effects. Together with other team members, assess equitability of electricity distribution of the proposed project. Assess the capacity to pay of the poor. Identify ways to make the project pro-poor, design a time-bound plan for monitoring, and outline the plan and resources required to implement the monitoring plan. Estimate the number of poor people who will benefit from the project. Calculate the poverty impact ratio in accordance with ADB guidelines.

(vi) Assess the gender impact of the project, including current uses of electricity and expected benefits by gender in the project area. Assess gender related issues in the project area, and identify ways to make the project beneficial for women and men. Recommend measures to address gender issues and incorporate them into project design.

(vii) Prepare Poverty and Social Assessments (PSA) according to ADB guidelines based on the survey and consultations, including incidence and nature of poverty, demographic and economic profiles of households, current uses and shortcomings of electricity by gender and other demographic characteristics, and

18 Appendix 4

expected social and economic benefits of the proposed project. Based on the PSA, prepare Summary Poverty Reduction and Social Strategy (SPRSS) to be included in the project document.

(viii) Assess vulnerabilities and risks associated with HIV/AIDS and other possible health impacts.

(ix) Prepare socioeconomic monitoring and management plans to be implemented, including specific indicators to be monitored. The social and gender analysis, recommendations on project design to incorporate social and gender dimensions, analysis of indigenous peoples, and socioeconomic monitoring plans should be specified as separate outputs.

(x) Analyze indigenous peoples impacts according to ADB’s Safegaurd Policy Satement (SPS), and prepare an indigenous peoples plan, if required.

(xi) Investigate whether the project will require land acquisition, restrictions in land use or on access to designated parks or protected areas; and if required, prepare a resettlement plan (RP) in accordance with the PNG's laws and regulations related to land acquisition and resettlement, and ADB's SPS.

(xii) Review the adequacy of PNG’s legal framework on land acquisition and resettlement. If needed, recommend measures to fill the gaps between the PNG laws and ADB’s safeguard requirements on involuntary resettlement.

(xiii) Undertake a census of affected/displaced people (DPs), inventory of losses, and socio-economic survey of DPs to collect necessary information to prepare a RP. Coordinate with relevant government agencies, including the Department of Lands and Physical Planning, for necessary information on affected land and land-based assets, and for coordination with the government's formal land acquisition procedures in accordance with the Land Act.

(xiv) The contents of the RP should follow the outline of the SPS, and include assessment of the impacts, eligibility criteria for entitlement, compensation rates for assets lost, specific measures for the poor and vulnerable, time frame for implementation of RP, consultation and grievance redress mechanism, budget, implementation mechanism, and a monitoring and evaluation plan.

(xv) Assist the executing agency (EA) in undertaking consultations with DPs and other stakeholders and for disclosure of relevant information including the draft safeguard documents in accordance with the PNG laws and ADB’s policies. In coordination with the environment specialist, assist the EA in developing a grievance redress mechanism. .Develop mechanisms to implement and monitor the RP. Assess institutional capacity of the EA and identify capacity building measures to be incorporated in the project design. Develop terms of reference for resettlement specialist and other relevant consultants who will be engaged for implementation and monitoring of the resettlement activities.

(xvi) Conduct necessary workshops and meetings, and provide guidance to the EA on project-related resettlement issues and ADB's policy and procedural requirements on resettlement safeguards.

13 Environment Specialists (international 2 person-months, national 2 person months). The Environment Specialists will have at least 10 years experience in environmental assessment of infrastructure projects, preferably in the power sector. The Consultants’ work will consist of the following:

(i) Prepare the environmental assessment for the project ensuring it conforms to all relevant PNG regulatory requirements and ADB’s Safeguard Policy Statement

Appendix 4 19

(2009). It is envisaged that the project will be classified as Category B for environment..

(ii) Conduct site visits along the transmission corridors and the substation sites to assess environmental conditions.

(iii) Consult with stakeholders, including environmental non-government organizations. Incorporate comments into project design.

(iv) Assist the design engineers in incorporating appropriate mitigation measures into the project design.

(v) Identify appropriate monitoring parameters suitable for incorporation into the project performance monitoring system.

(vi) Consult with government on their environmental compliance requirements for this project.

(vii) Identify the roles and responsibilities of each stakeholder in implementing the environmental management plan. Assess capacity of the capacity of each stakeholder. If capacity building is required for any particular stakeholder (e.g. implementing agency, construction contractor) then prepare a TOR for support to implement their environmental responsibilities.

(viii) Develop a grievance redress mechanism, in cooperation with social safeguard specialists.

(ix) Prepare a draft initial environmental examination to ADB, EA and IA. The basic contents of the IEE should be guided by ADB’s SPS and include: The environmental assessment will include, but not be limited to (a) Policy, legal, and administrative framework, description of the project, description of the environment, anticipated environmental impacts and mitigation measures, information disclosure, consultation, and participation; grievance redress mechanism; environmental management plan; conclusion and recommendation. The report’s appendices may include supporting environmental data, summary minutes of public consultations, and draft terms of reference for environmental support (e.g. technical assistance, capacity development) during project implementation.

(x) Prepare a matrix of comments received from the draft IEE. Revise based on comments matrix, indicating paragraph numbers where revisions have been made.

(xi) Estimate efficiency improvements and CO2 emission reductions. (xii) Contribute to other project documents (e.g. project agreement, assurances,

environmental summaries) as required. 14 Other Technical Specialists (6 person-months). The infrastructure components of the project will be selected based on the findings of the Port Moresby Grid Masterplan, which will be prepared as Part A of the technical assistance. The terms of reference for the additional technical experts will be determined after the least cost options are selected. Reporting 15 Part A consultants will submit the following reports:

(i) Inception Report will be submitted within 4 weeks after mobilization to site18

18 Mobilization should occur within 2 weeks of contract signing.

. The report will include a detailed work program plus any major inconsistencies in

20 Appendix 4

the terms of reference, staffing issues or deficiencies in the Governments assistance.

(ii) Draft Final Report will be submitted 8 weeks after mobilization. (iii) Final Report will be submitted 10 weeks after receipt and incorporation of

comments from ADB and the Government. A maximum of 5 page executive summary should be included in the final report.

16 Part B consultants will submit the following reports:

(i) Inception Report will be submitted within 4 weeks after mobilization to site19

(ii) Interim Report will be submitted within 4 months after mobilization to site and will include preliminary results of analysis, updated work program, any issues and concerns, and a outline of the final report.

. The report will include a detailed work program plus any major inconsistencies in the terms of reference, staffing issues or deficiencies in the Governments assistance.

(iii) Draft Final Report will be submitted 5 months after mobilization. A workshop will be held, attended by relevant stakeholders, 6 weeks prior to report finalization.

(iv) Final Report will be submitted 10 weeks after receipt and incorporation of comments from ADB and the Government. A maximum of 5 page executive summary should be included in the final report.

E. Implementation Arrangements

17 The Independent Public Business Corporation (IPBC) will be the Executing Agency (EA) and PPL will be the implementing agency (IA) for the project. A Program Management Unit (PMU) will be established within PPL and will be supported by implementation consultants. The EA and the IA will provide support to the consultants, including (i) arranging meetings with relevant Government stakeholders, (ii) providing access to all relevant data, (iii) a suitably furnished office with utilities and telecommunications access, and (iv) city transport for consultants. The TA will be implemented over a 15 month period and is expected to commence in February 2011 and be completed in May 2012. The proposed TA processing and implementation schedule is listed in Table 5.3.

19 Mobilization should occur within 2 weeks of contract signing.

Appendix 4 21

Table A4.4: Proposed Technical Assistance Processing and Implementation Schedule

Major Milestones Expected Completion Date

Concept Paper Approval February 2011 Signing of TA letter of Agreement February 2011 Part A ICS Consultant Recruitment February - March 2011 Part A Draft Final Report July 2011 Part B QCBS Consultant Recruitment July – September 2011 Part B Inception Mission November 2011 Mid Term Report January 2012 Draft Final Report/Final Workshop March 2012 Physical Completion May 2012 Financial Closure August 2012 Source: Asian Development Bank

Appendix 5 22

INITIAL POVERTY AND SOCIAL ANALYSIS

Country: Papua New Guinea Project Title: Port Moresby Power Grid Development Project

Lending/Financing Modality:

Project Loan Department/ Division:

PARD/PATE

I. POVERTY ISSUES

A. Links to the National Poverty Reduction Strategy and Country Partnership Strategy

The PNG government's Vision 2050 is a national development framework outlining where PNG wants to be in 40 years time. It focuses on seven pillars: (i) human capital development, gender, youth and people empowerment, (ii) wealth creation, (iii) institutional development and service delivery, (iv) security and international relations, (v) environmental sustainability and climate change, (vi) spiritual, cultural and community development, and (vii) strategic planning, integration and control. The government has also recently approved the PNG Development Strategic Plan (DSP) 2010-2030. The DSP provides the overarching policy oversight and guidance for all development agendas and sector strategies. To ensure inclusive economic growth, the DSP targets a number of economic corridors where poverty is high, but which have the potential to grow considerably. This will be through a combination of strategically planned quality investments in economic and social infrastructure and appropriate investment incentives for the private sector. The country strategy and program (CPS) of the Asian Development Bank (ADB) for PNG (2011−2015) aims to help the Government to meet its development goals. The CPS aims to help PNG initiate a successful transition through the conversion of its resource wealth into inclusive economic growth. ADB's main area of specialization will be in infrastructure. The main drivers of change to be pursued are private sector development, good governance, and knowledge solutions. In line with the government's Vision 2050 and DSP as well as ADB's strategy, the proposed Port Moresby Grid Development Project (Project) will support inclusive economic growth and poverty reduction by improving power supply in Port Moresby. The improved power supply will greatly enhance (i) uninterrupted power supply to commercial and domestic power consumers; (ii) employment opportunities for unskilled labor in the project sites; (iii) induced economic growth in the project-affected regions; and (iv) reduce cost of self-power generation for businesses, agro-processing plants, and service industry operators.

B. Targeting Classification

General Intervention Individual or Household (TI-H) Geographic (TI-G) Non-Income MDGs (TI-M1, M2,

etc.) Explain the basis for the targeting classification: The Project is classified as GI as it reduces poverty in an indirect manner and includes interventions that generally improve the environment for pro-poor growth and social development. C. Poverty Analysis

1. If the project is classified as TI-H, or if it is policy-based, what type of poverty impact analysis is needed? Not Applicable 2. What resources are allocated in the PPTA/due diligence? A Project Preparation Technical Assistance of $1.2 million is available to conduct the due diligence for the proposed project. A total of 2 person months has been allocated for an international social specialist and 2 person months for a national social specialist to conduct the poverty and social analysis. 3. If GI, is there any opportunity for pro-poor design (e.g., social inclusion subcomponents, cross subsidy, pro-poor governance, and pro-poor growth)? The Project will include a social inclusion component to ensure that power distribution includes poorer areas of Port Moresby.

Appendix 5 23

II. SOCIAL DEVELOPMENT ISSUES A. Initial Social Analysis

Based on existing information: 1. Who are the potential primary beneficiaries of the project? How do the poor and the socially excluded benefit

from the project? The primary beneficiaries are the urban residents and businesses in Port Moresby. Poor and vulnerable residents will receive subsidized life-line electricity tariffs under the national electricity tariff structure. Some poorer suburbs will benefit from receiving more reliable power. It is understood that there is almost full access to power in Port Moresby. This will be confirmed during the PPTA to ensure there are no poor or socially excluded groups who have not received access to electricity.

2. What are the potential needs of beneficiaries in relation to the proposed project? The beneficiaries currently

need to receive more reliable power supply. 3. What are the potential constraints in accessing the proposed benefits and services, and how will the project

address them? Low-income households may not be able to afford the standard power tariffs and may have difficulty managing household debt. The Project will ensure low-income households receive the life-line tariff and receive pre-payment meters to enable them to manage household expenditure more effectively.

B. Consultation and Participation

1. Indicate the potential initial stakeholders. Potential stakeholders are national and provincial Government officials from Port Moresby, PNG Power Ltd, Department of Petroleum and Energy, and community groups.

2. What type of consultation and participation (C&P) is required during the PPTA or project processing (e.g., workshops, community mobilization, involvement of nongovernment organizations and community-based organizations, etc.)? Consultation through workshops will be undertaken during the implementation of the project preparation TA and project processing.

3. What level of participation is envisaged for project design?

Information sharing Consultation Collaborative decision making Empowerment

4. Will a C&P plan be prepared during the project design for project implementation? Yes No Consultation and participation plan is not required since a series of consultation workshops are planned during the implementation of the project preparation TA and project processing stage.

C. Gender and Development Proposed Gender Mainstreaming Category: Some Gender Benefits

1. What are the key gender issues in the sector/subsector that are likely to be relevant to this project/program? (i) The proposed project will improve the supply of electricity to residential areas, thereby improving personal safety on the streets. (ii) Improved power supplies to health clinics will improve provision of health services to women. 2. Does the proposed project/program have the potential to promote gender equality and/or women’s

empowerment by improving women’s access to and use of opportunities, services, resources, assets, and participation in decision making?

Yes No Please explain. The Project will improve (i) street safety due to increased reliability of street lighting, (ii) improved power supplies to health clinics, and (iii) increased opportunities for household income generation due to improved power supplies.

3. Could the proposed project have an adverse impact on women and/or girls or to widen gender inequality? Yes No Improving the quality of supply of electricity does not have any adverse impacts on women

to widen gender inequality. III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS

Issue Nature of Social

Issue Significant/Limited/ No Impact/Not Known

Plan or Other Action Required

24 Appendix 5

Involuntary Resettlement

Reportedly, all required land is currently located on existing easements. To be confirmed during PPTA, particularly related to squatters.

Limited

Resettlement Plan Resettlement Framework Environmental and Social Management System Arrangement

None Uncertain

Indigenous Peoples

No adverse or significant impact on indigenous people’s is anticipated

No impact

Indigenous Peoples Plan Indigenous Peoples Planning Framework

Environmental and Social Management System Arrangement

None Uncertain

Labor

Employment Opportunities

Labor Retrenchment Core Labor Standards

Project is expected to generate employment opportunities in subproject sites.

Limited

Plan Other Action: appropriate loan covenants will be proposed.

No Action Uncertain

Affordability

Household expenditure management may be an issue.

Limited

Action No Action Uncertain

Other Risks and/or Vulnerabilities

HIV/AIDS Human Trafficking Others (conflict, political instability, etc.), please specify

No potential risks are anticipated

No impact

Plan Other Action No Action Uncertain

IV. PPTA/DUE DILIGENCE RESOURCE REQUIREMENT 1. Does the TOR for the PPTA (or other due diligence) include poverty, social and gender analysis and the relevant

specialist/s? Yes No

2. Are resources (consultants, survey budget, and workshop) allocated for conducting poverty, social and/or gender analysis, and C&P during the PPTA/due diligence? Yes No