Empowering PNG Power to improve procurement practices

Dec 10, 2024 | 2024, Blog, News

In a move to enhance infrastructure development in Papua New Guinea, the Australian Infrastructure Financing Facility for the Pacific (AIFFP), in collaboration with the Asian Development Bank (ADB) and the World Bank, conducted an intensive training workshop for PNG Power Ltd (PPL) from November 4 to 6, 2024, in Port Moresby. This initiative aimed to elevate PPL’s procurement and project execution capabilities, aligning them with global standards.

The three-day workshop provided PPL participants with practical insights into procurement fundamentals, the latest International Commercial Terms (Incoterms), and the International Federation of Consulting Engineers’ (FIDIC) Red and Yellow Books—globally recognized benchmarks for contract and project management. Led by FIDIC expert Didier Guynet, the sessions emphasized the importance of robust procurement practices and clear contractual roles in the successful delivery of complex projects.

Project Engineer Vele Kali from PPL highlighted the trainings value in deepening understanding of critical concepts like Incoterms, which are essential for effective project management. He noted that further training in areas such as contract management and cost estimation would bolster project outcomes for PPL.

This collaborative effort marks a significant step in aligning PPL’s project delivery processes with international best practices, thereby laying a strong foundation for future infrastructure projects that will benefit communities across Papua New Guinea. With enhanced skills and processes, PPL staff are now better equipped to undertake projects that ensure reliable power delivery throughout the nation.

This initiative reflects a broader commitment by international development partners to support Papua New Guinea’s infrastructure growth, recognising that effective procurement and project management are pivotal to the success of such endeavours. By investing in capacity building, AIFFP, ADB, and the World Bank are contributing to the sustainable development of Papua New Guinea’s energy sector, which is crucial for the country’s economic advancement.

The training aligns with ongoing efforts to improve Papua New Guinea’s energy infrastructure, as evidenced by AIFFP’s recent commitment of a USD 150 million grant and concessional loan package to Papua New Guinea for the enhancement and repair of critical energy assets. These combined efforts are poised to significantly advance Papua New Guinea’s goal of providing reliable and sustainable electricity to its population, thereby fostering economic growth and improving living standards.

Main Picture: PNG Power Ltd. is building procurement expertise with support from AIFFP, World Bank, and ADB. Photo Courtesy: AIFFP.