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The revised loan amount for the rescoped Pacific Maritime Industrial Zone in Madang will be US$156 million (K484 million).
PNG Secretary for the Department of Commerce and Industry Andrew Liliura confirmed this when giving an update on the impact project that continues to linger on for three years since being launched by Prime Minister Peter O’Neill.
“We have already worked on it and we are going for a new loan of US$156 million. That will be for the rescoping of the work and the operation of the first phase of the PMIZ project.”
In terms of the funding arrangements, Secretary Liliura admitted that there has been misconceptions about the project’s financing arrangements, which have been revised specifically to incorporate changes needed to expand the previous wharf design.
He said the initial US$95 million loan for phase one only saw 10 per cent of the amount, US$9.5 million (about K30 million), drawn down for the Chinese contractor as per conditions of loans from China for ground works before the rest of the loan was cancelled.
“That is for them, but actually it is not for the project, it is for the Chinese contractors like any other Chinese loan for their own contractors.”
Liliura said the loan had to be cancelled and a new loan to be applied for as per Exim Bank of China loan conditions.
“For the rescoping of the project, the actual loan has been cancelled and we are now working on a new loan with a new re-scoping, and that is US$156 million,” Liliura.
He said the department hopes for government processes to quickly facilitate the negotiation and drawdown.
“Treasury is a lead agency in this in terms of negotiating the loan outside on behalf of the government, and as soon as that is done we are going to go and renegotiate the US$156 million to cover the rescoping, and it will be implementing the first phase of PMIZ.
“The first phase consists of a berthing wharf. The berthing wharf from the previous project design was not approved or to say we were not comfortable with it so we wanted a bigger one so that will warrant rescoping and all other basic infrastructure like power and water and all those things inside the project area,” Liliura said.
He said as soon as the process and loan requirements are complete, the Chinese contractor on the ground will go ahead with the first phase.
Construction implementation has been set before the end of the year
SOURE: POST COURIER/PACNEWS
Pacific Islands News Association
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