PNG RABAUL PORT FACILITY

Promoter – Financial Intermediary

PNG PORTS CORP LTD

Location

• Papua New Guinea

Description

The project consists of the rehabilitation of the Port of Rabaul (New Britain Island) in Papua New Guinea. More specifically, the project includes the construction of new quays, the reinforcement and rehabilitation of other existing quays, related dredging works, as well as of land storage facilities and utilities. The project will increase the port facilities' capacity and efficiency and enhance its resilience.

Objectives

The project will increase the capacity, efficiency and safety of the port facilities. The port facilities provided by this project support international and inter-island transport services for both cargo and passengers. The international fishing fleet operating in the area also seeks Rabaul Port for supplies although it does not usually unload fisheries related cargo. The project will create economic benefits by reducing logistic costs for the region's importers and by improving the accessibility for visitors. Economic benefits are also expected from improved safety and from a reduction of externalities from the maritime operations. The economic costs and benefits and resulting economic return will be assessed in detail during appraisal.

Sector(s)

• Transport - Transportation and storage

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 24 million

Total cost (Approximate amount)

EUR 83 million

Environmental aspects

According to Papua New Guinea Law, the project requires an environmental impact assessment (EIA) and procedure reviewed by the State level Competent Authority. The lenders will require the project to be aligned with the applicable national environmental legislation as well as with the relevant EU environmental and social principles, standards, and practices. This will be further checked during appraisal, including the project's Environmental and Social Impact Assessment. The lenders will require the promoter to have an Environmental and Social Framework in place for the project, in alignment with AFD and EIB's Environmental and Social Standards and in compliance with the requirements and standards agreed between EIB and AFD for projects outside the EU under the Mutual Reliance Initiative. The project will contribute to Climate Action and Environmental Sustainability (CA&ES) objectives, in particular to climate mitigation and adaptation.

Procurement

The promoter will be required to implement the project in accordance with the AFD procurement rules and procedures, and in compliance with the requirements and standards agreed between EIB and AFD for projects outside the EU under the Mutual Reliance Initiative, as foreseen in the Bank's Guide to Procurement. In particular, calls for international tenders will be published in the Official Journal of the EU (OJEU) in accordance with the Bank's Guide to Procurement, when and as required.

Status

Under appraisal - 7/03/2025