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The Asian Development Bank (ADB) has approved a US$31 million loan to expand and improve the road network in Papua New Guinea (PNG).
The Transport Sector Preparatory Project will finance a feasibility study and detailed engineering designs, including bidding documents and procurement support, for three transport projects along the northern region road corridor and continue improvements to the Highlands core network in central PNG.
“This project readiness financing is ADB’s new and innovative way to fast-track projects, while improving engineering designs and procurement,” said ADB Country Director for PNG David Hill. “This facility is the foundation for implementing the government’s new Connect PNG strategy and will support the construction of key economically strategic roads for the next 10 to 15 years.”
The northern region road corridor starts at the Indonesian–PNG border and runs almost 1,500 kilometers, connecting the ports of Vanimo, Wewak, Madang, and Lae with the Highlands highway and southern region corridor.
Improvements to the corridor and the construction of missing links will make an important contribution to the economic growth of the region, which is home to about 40% of PNG’s population.
The US$31 million concessional loan is sourced from ADB’s Ordinary Capital Resources and is being supported with US$3.1 million from the Government of PNG.
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