City allocates over K14 million from tax to maintain roads

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By GLORIA BAUAI
LAE city has allocated more than K14 million from its 20 per cent goods and service tax (GST) component from the Morobe government to maintain its roads, says MP John Rosso.
Rosso said work on the East Taraka suburb roads was into the second stage costing K5 million.
Work from the Kamkumung round-about to the University of Technology (Unitech) had been awarded to Dekenai Construction for K1.2 million.
Rosso said two other sections – Eriku streets and the miles area – would require K4 million each.
The contracts have been awarded and work should start soon.
Rosso and Morobe Governor Ginson Saonu entered into an agreement last year, with the Internal Revenue Commission, that Lae gets 20 per cent of Morobe’s monthly GST remittance.
Rosso said the GST funds would be channelled to a bank loan to seal all roads through the city. He said it would cost about K200 million to rehabilitate all roads in Lae.
“A lot of people think it’s cheap to build roads but it’s not,” he said.
“The budget of the city cannot sustain that.”
Rosso said funding was also provided for other roads through the district services improvement programme, including in the Busurum and Hanta settlements.
Funds from the national budget support programme saw the completion of the road between Unitech and Igam Barracks and the portion from Malahang to Bumbu.
Rosso said the road would be paved concrete down to Chinatown, with a better drainage system to cope with flooding in Lae.