Chinese millions may go to waste
PAPUA New Guinea risks losing millions of kina in project funding from China as timing for the drawdown of funds for some projects lapses at the end of next year.
The concerns were raised with Commerce and Industry Minister Gabriel Kapris during the minister’s official visit to China from March 13-19.
Mr Kapris said the concerns were raised by the Chinese vice-minister for commerce during a briefing on the on-going Chinese development assistance projects .
He said the vice-minister pleaded to the PNG Government to play its part in ensuring that some of the projects get started and are completed on time.
Some of the projects were part of the China and Pacific Economic Development Cooperation Agreement signed in Fiji in 2006.
Fifty-nine projects were identified to be funded by China including the Kandep rice project, Hagen comprehensive technical programme, Usino-Bundi road, a regional sports stadium in Wewak, an international convention centre, concessional loans for hydro electricity project and human capacity building project in which 68 government officers will be trained in various institutional facilities in China.
Mr Kapris said under the agreement signed with China, the date of the drawdown of funds for some of these projects would lapse next year with the funding going back to China.
He said the delays were caused by late processing of work visa for Chinese workers, lack of counterpart funding, lack of land identification, and lack of technical feedback (project design) for some of the projects.
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