The Asian Development Bank has agreed to a US57.3 million loan to Papua New Guinea's state power utility, PNG Power Ltd, to fund new renewable energy projects, including run-of-river hydro plants and transmission systems, ADB reported.
The ADB loan is part of a broader Town Electrification Investment Program approved by ADB in late 2010 that will improve the power supply in provincial urban centers by replacing expensive diesel power generation with sustainable renewable energy power generation. It will also establish key transmission links along major population corridors that will boost connectivity outside the main provincial centers, and help address a significant investment hurdle for provincial governments responsible for rural electrification. The total cost of the Town Electrification Investment Program is estimated to be $150 million.
The projects to be implemented under the first tranche of funding include run-of-the-river hydropower plants in Northern Province and the Autonomous Region of Bougainville, as well as a 66kV transmission line in West New Britain.
In other news, India and the Asian Development Bank have signed a loan agreement for $208 million, which is the third tranche of an ADB loan for the Himachal Pradesh Clean Energy Development Investment Program.
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