Papua New Guinea Awards $17.1 Million Energy Reliability Contract Under World Bank Power Sector Program

Papua New Guinea has awarded a major energy sector contract under the World Bank-financed Energy Utility Performance and Reliability Improvement Project (EUPRIP). The contract, valued at USD 17.1 million, has been awarded to United Nations Office for Project Services (UNOPS) to support critical improvements in the country’s electricity infrastructure and utility performance.

The agreement was signed on 29 April 2026 under Project ID P167820, highlighting Papua New Guinea’s continued efforts to strengthen power sector reliability, improve electricity access, and modernize utility operations.

Contract Details and Scope

The awarded tender (Reference: PG-PPL-540878-GO-DIR, TOT Ref No. 26013353) carries a total contract value of USD 17,095,698 and was procured through a Direct Selection (DIR) method in accordance with World Bank procurement regulations.

The contract forms part of the Energy Utility Performance and Reliability Improvement Project, a strategic initiative designed to enhance the operational efficiency and reliability of Papua New Guinea’s electricity sector.

While the award notice does not disclose the detailed technical scope, activities under the EUPRIP framework typically include:

• Rehabilitation and upgrading of electricity distribution infrastructure

• Strengthening of transmission and network reliability

• Replacement of aging power system components

• Utility operational improvement measures

• Installation of modern electrical equipment and systems

• Technical assistance and project implementation support

• Capacity building for utility personnel

• Measures to reduce power outages and system losses

The project is expected to improve electricity service quality for households, businesses, and public institutions across targeted areas.

Entities Involved

The project is financed by the World Bank in partnership with Papua New Guinea’s energy authorities and utility stakeholders.

The awarded contractor, UNOPS, is a United Nations agency specializing in infrastructure delivery, procurement, project management, and sustainable development implementation. The organization has extensive experience managing complex infrastructure and utility projects in developing countries and fragile operating environments.

Its appointment reflects its ability to deliver large-scale technical and operational improvements while adhering to international procurement and project management standards.

Strategic Importance for Papua New Guinea

Reliable electricity remains a critical challenge for Papua New Guinea’s economic and social development. Improving utility performance is essential for supporting industrial growth, expanding access to services, and improving living standards.

The project aims to:

• Increase reliability of electricity supply

• Reduce technical and operational losses

• Improve utility performance and efficiency

• Strengthen infrastructure resilience

• Support economic development and private sector growth

• Enhance service delivery for consumers

The initiative aligns with national objectives to modernize the power sector and expand access to dependable electricity services.

Economic and Social Impact

The USD 17.1 million investment is expected to generate significant benefits, including:

• More reliable electricity for communities and businesses

• Reduced frequency and duration of power interruptions

• Improved operational performance of utility infrastructure

• Enhanced conditions for investment and economic activity

• Support for healthcare, education, and public services through improved power supply

Reliable energy infrastructure is a key driver of productivity and long-term economic growth in emerging economies.

Technical and Procurement Insights

The Direct Selection procurement approach indicates the use of specialized implementation expertise. Infrastructure improvement projects of this nature require advanced capabilities in electrical engineering, procurement management, construction supervision, and utility operations.

UNOPS’ experience in managing donor-funded infrastructure programs positions it to support efficient implementation and compliance with World Bank standards.

Conclusion

The award of the USD 17.1 million Energy Utility Performance and Reliability Improvement Project contract to UNOPS marks a significant step in Papua New Guinea’s efforts to strengthen its electricity sector. As implementation advances, the project is expected to improve network reliability, enhance utility performance, and support broader economic and social development objectives.

This awarded tender underscores the importance of strategic infrastructure investments and international partnerships in building a more resilient and efficient energy sector for Papua New Guinea.

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