Most of funds to upgrade ports will be used on Lae Tidal Basin: Duma

MOST of the K1.48 billion (AU$580 million) given by Australia for the refurbishment and upgrading of ports in Papua New Guinea will be used on the Lae Tidal Basin (K295 million), says State Enterprises Minister William Duma.
The Kavieng Port will get K66.4 million, Kimbe K73.8 million, Oro Bay K73.8 million, Vanimo K71.3 million, Wewak K49.2 million, and Lorengau K46.7 million.
The rest will be spent on buying pilot boats for the ports and the upgrading of other port infrastructure.
Prime Minister James Marape signed a memorandum of understanding with his Australian counterpart Scott Morrison virtually.
The funding, to be executed through the PNG Ports Corporation, is the biggest single investment by Australia in any sector and project in the history of the Australia Infrastructure Financing Facility for the Pacific (AIFFP) – Australia’s assistance programme for the region.
The funding is being given as a combination of a grant (K240 million) and the rest as loan to be repaid over 35 years.
A grace period of six years is allowed as an “availability period” during which time, PNG must draw down on the funding. Marape thanked Morrison and Australia for their continuing support to PNG, not just in the maritime infrastructure sector – but in nearly all sectors including education, health, telecommunications, aviation, electrification and road development.