Loan negotiations for the Lae Port development project concluded successfully last Friday.
Public Enterprises minister Arthur Somare said the total project was estimated to cost US$154 million.
He said ADB (Asian Development Bank) board will consider the project on Dec 18.
Mr Somare said at a press conference held yesterday if the board approved the project, ADB will provide a blended loan of US$100 million.
He said US$60 million would be from its ordinary capital resources, with a hard loan from the London interbank offered rate (LIBOR), based interest rate and US$40 million from the Asian Development Fund, on a confessional loan with interest rate from 1% to 1.5 %.
Mr Somare said ADB will also provide two grants of US$2.25 million to address livelihood and HIV/AIDS issues.
At US$154 million, the Lae Tidal Basin project will be one of this government’s single biggest infrastructure development projects with the PNG Government contributing US$46.75 million.
The project will be implemented for a four year period from 2008 to 2011.
A team was in Manila, last week to negotiate with ADB officials. The team comprised of senior officials from the Department of Treasury, National Planning, the State Solicitors Office, PNG Ports Corporation and the IPBC.
Lae Port plays an essential role in the social and economic development of PNG.
It handles about half of the total of the 22 ports and more than 60% of the total international and coastal trades registered in the 16 major ports operated by PNG Port Corp Ltd.
It generates 50% of PPCL’s total revenue and serves as the gateway linking the world market through the city of Lae.