THE Highlands Highway and provincial road networks in the Highlands region will undergo a major rehabilitation at the cost of US$800 million (K2.4 billion) next year.
The funds are to be drawn from the Asian Development Bank (US$400 million), the PNG Government (US$240 million) and other partners (US$160 million).
This multimillion kina project was announced by the Minister for Transport, Works and Civil Aviation Don Polye yesterday.
The Highlands Highway, the economic lifeline of the region, is facing collapse at different sections, especially in Simbu and Eastern Highlands provinces.
Landslips resulting from heavy rain blocked the highway at Daulo Pass last week, preventing traffic for days and causing losses to businesses.
Minister Polye told reporters the project is expected to draw economic development in the region.
“Why should I build a road if there is no economic return?” he said.
He said the transport sector builds linkages to deliver wealth and empower the people to become economically viable.
Mr Polye said local contractors who have the financial and management capacity would be given priority for the road works, while foreign companies would be engaged as back-up on technical services.
He said legislations, which was already in the process, will be enacted to ensure strict and diligence selection criteria are set for contracting the work and that local companies can bid for projects worth up to K10 million.
As land compensation is considered an impediment, Mr Polye said legislations would also be enacted to counter the issue.
The multimillion kina project, arranged under Multi-tranche Financing Facility (MFF), aims to rehabilitate and bring to maintable condition about 1,450km of roads in the region.
The project focuses on priority national and provincial highways, and other roads of local importance; initially starting with Enga and Southern Highland provinces and others to be added later.
Mr Polye said feasibility studies with scope of work will be done this year with actual works to commence next year.
The project is expected to be completed by 2020.