The Asian Development Bank (ADB) will extend $120m in loans to Papua New Guinea (PNG) for renewable energies facilities that will help the country meet critical electricity supply gaps in provincial urban centres. ADB approved a multitranche financing facility for the Town Electrification Investment Program, which will contribute to the state utility, PNG Power Ltd's 10-year power development plan through to 2018. It will fund, in two stages, renewable energies facilities, including run-of-river hydropower plants and transmission systems in about six provincial centres. The first tranche of the investment program will support run-of-river hydro plants in Northern Province, and the Autonomous Region of Bougainville, as well as a 66 kV transmission line in West New Britain. The transmission facility will provide access to about 1 MW of spare generation capacity from the Lake Hargy Hydropower Plant, as well as up to 3 MW of biomass-generated electricity from palm oil plantations. The full program is due for completion in December 2016, with first tranche activities finished by December 2013.
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