WATER PNG FRAMEWORK LOAN

Promoter – Financial Intermediary

INDEPENDENT STATE OF PAPUA NEW GUINEA

Location

• Papua New Guinea

Description

The project consists of the expansion of water supply services (WSS) to urban areas in Papua New Guinea, specifically to four provincial towns and the reduction of non-revenue water in the capital, Port Moresby.

Objectives

Water PNG received support with this project to meet the national targets by 2030 for urban areas, namely provide 95% of the population with access to a safe, convenient and sustainable water supply. The non-revenue-water project component in Port Moresby will further reduce water loss and therefore improve the utility's revenues to sustain and support expansion into new district towns. The project will also contribute to achieving Sustainable Development Goals (6, 11 and 13).

Sector(s)

• Water, sewerage - Water supply; sewerage, waste management and remediation activities

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

USD 25 million (EUR 23 million)

Total cost (Approximate amount)

USD 39 million (EUR 36 million)

Environmental aspects

The Promoter will be required to implement and operate the investments in conformity with national laws, as well as the EIB's environmental and social standards. The project intends to bring environmental benefits by contributing to the protection of both surface water and groundwater bodies through improving the efficiency of the water supply infrastructure. Most of the schemes to be financed under the investment loan are expected to have limited adverse environmental and social impacts. Where a formal EIA is required, a copy of the Environmental & Social Impact Study or the Non-Technical Summary (NTS) or equivalent document will be provided to the Bank, and published on its website. The Promoter will also be required to verify that none of the schemes submitted for financing by the Bank have a significant negative impact on any site of nature conservation importance. The Promoter's capacity to ensure that the schemes are in compliance with the EIB's environmental and social standards will be also verified at appraisal. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate mitigation, climate adaptation, sustainable use and protection of water and marine resources.

Procurement

The Bank will require the Promoter to ensure that any procurement under the project will be done in accordance with the Bank's Guide to Procurement.

Status

Approved - 6/11/2024