Mid-Term Review of the PNG Transport Sector Support Program Phase 3 (TSSP3)

Overview The Department of Foreign Affairs and Trade is seeking a review team to undertake the Mid-Term Review (MTR) of the PNG Transport Sector Support Program Phase 3 (TSSP3). The review will provide an independent, evidence-based assessment of TSSP3 performance and direction. About TSSP3 is a 10-year Australian Government investment of up to AUD700 million supporting the Government of Papua New Guinea (GoPNG) to achieve a more effective, efficient and inclusive transport system. It commenced in November 2023 and is implemented by DT Global, with the current contract running to 30 September 2028. TSSP3's results framework is structured around three End-of-Program Outcomes (EOPOs) and ten Intermediate Outcomes (IOs). The EOPOs focus on: (i) strengthening the capability of transport sector agencies to plan, budget and manage the transport system more effectively, efficiently and inclusively; (ii) improving transport sector safety, policy and regulatory environments, and sector coordination; and (iii) expanding sustainable and affordable transport assets while strengthening the capability of government and industry partners to deliver and maintain infrastructure. The IOs provide a pathway for achieving these outcomes through organisational strengthening, evidence-based planning and budgeting, stakeholder engagement, sector coordination, policy and regulatory reform, project delivery capability, maintenance systems and quality infrastructure investment. The third phase of TSSP represents a shift from earlier phases, moving from a donor-delivery model to a partnership model that empowers agencies to determine the scope of support and take a greater role and accountability in delivery. Delivery is based on partnership approaches, including Joint Organisational Assessments and Partnership Support Plans (PSPs), which provide adaptive, multi-year frameworks for agency and locally-led prioritisation and reform. This phase was also intended to have a greater focus across aviation and maritime, alongside stronger emphasis on institutional strengthening, sector governance and system reform, and introduces incentivisation and strategic asset management to the program. Following its establishment phase, TSSP3 has developed core systems, partnerships and delivery mechanisms. Implementation is occurring in a complex operating environment characterised by leadership changes, fiscal pressures, varying institutional capacity and procurement challenges within GoPNG systems, which have affected delivery timelines, particularly for infrastructure investments. In response, TSSP3 has worked with partner agencies to strengthen planning, coordination and implementation arrangements, including a targeted Trust Account Procurement approach to address identified bottlenecks while maintaining alignment with GoPNG systems and processes. TSSP3 operates across multiple sub-sectors and approximately ten partner agencies with differing mandates, capacities and operating environments, and is required to deliver both immediate infrastructure outcomes and longer-term system reform. PSPs are now in place across key partner agencies, providing a coordinated framework for multi-year planning, prioritisation and reform. The program has also supported strengthening of sector coordination mechanisms, including through the Transport Sector Coordination, Monitoring and Implementation Committee (TSCMIC), and an independent review to inform improvements to sector governance, coordination and oversight. Purpose The purpose of the MTR is to provide an independent, evidence-based assessment of TSSP3 performance and direction. The review will: Assess implementation performance from November 2023 to date and determine whether TSSP3 is appropriately configured to achieve its intended outcomes, including an overall assessment of the effective delivery of the PSP model to achieve system-level reform in a complex context Assess, based on the summative assessment of progress towards outcomes, the alignment of investment in infrastructure investment and institutional strengthening with design intent Assess operational elements and potential constraints arising from procurement systems, capacity and financing Objectives The review is primarily intended to provide DFAT, GoPNG partner agencies and TSSP3 management with evidence to: Assess progress towards TSSP3's End-of-Program Outcomes and Intermediate Outcomes Determine whether the program's current design, delivery model and resourcing remain appropriate to achieve intended outcomes Assess the effectiveness of the Partnership Support Plan (PSP) model in supporting institutional strengthening, sector reform and sustainable transport sector outcomes Identify operational and systemic constraints affecting implementation, including those relating to procurement, institutional capacity and financing Inform decisions on program adaptation, resource allocation, governance arrangements and implementation approaches for the remainder of TSSP3 In addition, the review is intended to provide TSCMIC, development partners and future program designers with information to: Strengthen sector oversight and coordination Enhance coordination and complementarity of investments in the transport sector Design future Australian Government support to Papua New Guinea's transport sector, including any structural adjustments required to maximise impact and value for money Scope The scope includes: Adopting a mixed-methods approach combining document review, stakeholder consultation and field observation, applied in an inclusive, accessible, ethical and risk-sensitive manner, and refined during an inception phase by the review team Reviewing program documentation, reporting and performance data Undertaking primary data collection through surveys and other quantitative methods Conducting key informant interviews Conducting focus group discussions Undertaking site visits Undertaking comparative analysis of delivery mechanisms and investment approaches Triangulating qualitative and quantitative evidence Potential field locations may include Port Moresby, Bougainville and selected transport infrastructure project sites, subject to final scoping and budget availability. Primary KRQ 1: Progress Towards Outcomes To what extent is TSSP3 progressing towards its intended outcomes and contributing to transport sector reform? What progress has been made towards the EOPOs and IOs? Is there evidence of contribution to improved institutional capability and sector coordination? Is the program adequately contributing to delivering sustainable system-level change? Is the current level of ambition realistic and achievable? Is TSSP3 continuing to align with GoPNG and Australian government priorities? Are there factors outside of TSSP3's control that have affected progress? Primary KRQ 2: Effectiveness of the Delivery Model Is TSSP3's delivery model effective in supporting sustainable transport sector outcomes? Is the PSP model effectively supporting prioritisation, planning and reform? Is there an appropriate balance between infrastructure investment and institutional strengthening? Is the managing contractor model supporting adaptive and responsive delivery? Are delivery approaches appropriate across roads, aviation and maritime sectors? Primary KRQ 3: Operational Effectiveness and Value for Money To what extent is the strategic context and implementation arrangements enabling or constraining program performance and value for money? Are procurement of services and products to deliver on the Program Activity Costs (PAC) and contract management arrangements effective? How are GoPNG systems, financing constraints and institutional capacity affecting performance? Is Trust Account Procurement (formerly known as donor-led procurement) an effective and appropriate response to implementation bottlenecks? Is the balance between maintenance, asset renewal and new infrastructure investment supporting achievement of the IOs and EOPOs? Are resources being used efficiently to maximise development outcomes? Primary KRQ 4: Program Adaptation and Future Direction Is TSSP3 appropriately configured to achieve its intended outcomes over the remainder of the program? Are governance arrangements and resource allocations fit for purpose? Is resource allocation aligned with strategic priorities as identified by DFAT? Is the program sufficiently aware of strategic priorities? Are structural changes required to improve effectiveness, impact and sustainability? Should adjustments be made to implementation sequencing, expenditure profiles, delivery arrangements or program timeframe? Primary KRQ 5: Cross-Cutting Priorities How effectively are cross-cutting priorities integrated into program delivery? How effectively are GEDSI principles integrated into planning and implementation? To what extent is Climate Change and Disaster Reduction (CCDR) incorporated into asset planning, design and maintenance and institutional strengthening? How effectively are safeguards development principles being implemented? How effectively are locally led development principles being implemented? Does the program's results framework adequately reflect CCDR and other cross-cutting priorities? Contractor Requirements Full Conditions for Participation, and Minimum Content and Format Requirements, are set out in the attached ATM documents and should be referenced by respondents Contract Terms and Conditions Timeframe for delivery: 5 months (October 2026 to February 2027), with an option to extend for up to 6 months (March 2027 to August 2027) Instructions to Tenderers The address for lodgement is www.tenders.gov.au. Enquiries Contact: Tender Secretariat Email: Port-Moresby.DevProgramQuality@dfat.gov.au