Diplomat clarifies loan’s status

National

INDIA High Commissioner Vijai Kumar says the line of credit (soft loan) from the Exim Bank of India to the PNG Government is US$100 million (K340.8 million).
Kumar was responding to an article by The National on Oct 18, which reported that the Government had secured K100 million from the Indian government but was yet to access the funds.
Kumar said the US$100 million line of credit would be split in the two infrastructure projects in PNG. That is US$60 million (K204.49 million) for the Baiyer-Madang road, and US$40 million (K163.33) million for the Hoskins-Kimbe road.
“The process for utilising the line of credit by the Government of PNG from the Exim Bank of India is now in an advanced stage and the projects should be launched soon,” Kumar said.
He said on Sept 24, India’s Prime Minister Narendra Modi announced allocation of a US$12 million (K40 million) grant to the nations of the India-Pacific Islands Developing States (IPSIDS) which included PNG.
That means this countries, including PNG, were allocated a grant of US$1 million (K3.4 million) each for implementation of high impact developmental project in an area of their choice. Other IPSIDS nations are Fiji, Kiribati, Marshall Islands, Federated States of Micronesia, Nauru, Palau, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu.
Modi also announced a concessional line of credit of US$150 million (K511.2 million) which could be availed by the PSIDS for undertaking solar, renewable energy and climate related projects based on each country’s requirements.
Modi made the announcement during the IPSIDS leaders meeting on Sept 24 in New York, USA on the sidelines of the 74th United Nations General Assembly.
He said India was equally committed to tackling the impact of climate change and support efforts of the IPSIDS to achieve their developmental goals, through necessary developmental and technical assistance.

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