Firm: Project on track

 KUMUL Consolidated Holdings (KCH) says Phase 2 of the Lae Tidal Basin project is on track.

It has denied that the construction schedule is being delayed by the discovery of defects in Phase 1 of the project, which was completed in 2014.

KCH said in a full-page advertorial in The National today (See Page 17) that a shortlist of bidders had been nominated for the Phase 2 contract, and would soon be assessed by an evaluation committee.

The advertorial is in response to revelation of major structural defects in Phase 1 of the landmark project, which was completed by China Harbour Engineering Company at a cost of K809 million.

The National reported last Friday that Phase 2 of the project had been delayed following the discovery of the defects by Australian engineering firm AECOM.

KCH said the port facility was handed over to PNG Ports in April 2015. Prime Minister Peter O’Neill declared the wharf opened in December 2014.

“PNG Ports, in its capacity as the port operator, has carried out an in-depth review of the newly-constructed wharf to verify the structural integrity of the port facility prior to start of operation,” KCH said. 

“This forms part of the due diligence process every operator has to undergo to guarantee a safe operational environment.

“It is therefore incorrect that structural faults have been the origin of the delayed start of port operations. After the handover, PNG Ports started the international tender process to identify suitable bidders for the construction of Lae Tidal Phase 2.

“A shortlist of bidders has now been nominated and the contract bids will be assessed by a capable and professional evaluation committee. The contract will be awarded in accordance with official procurement guidelines for international tenders. 

“The construction schedule of Lae Tidal Phase 2 is actually on track and far from being delayed.”