Formalities hold up US$100 loan from India

NATIONAL Planning and Monitoring Minister Richard Maru has met with the Indian Export-Import (Exim) Bank to discuss the status of the US$100 million (K337 million) loan to Papua New Guinea.
The department, in a statement, said the discussions confirmed that delays were on the PNG side.
The bank said it was at a standstill until the Government of PNG, through the National Planning and Monitoring Ministry and the Treasury Department, cleared relevant formalities to complete the loan agreement. This includes the prequalification process that needs to be expedited to carry out a detailed project report, which is a key determinant of approval to further utilisation of the line of credit (Loc).
Critical investments under the Loc, covering the Baiyer-Madang Road and the Hoskins-Kimbe Road, are vital infrastructure for PNG. The bank indicated that these requirements were communicated to Treasury in Jan and again in Feb.
It said it was still awaiting the PNG Government’s response for next steps to be taken.
Maru expressed satisfaction that up 30 per cent of the loan required local content from PNG, hence, was seen as an attractive feature of the loan. He said further delays in operationalising this loan were not acceptable.
Maru said technical Government agencies like Department of Works needed to urgently work with Department of Treasury to provide the relevant Exim loan requirements accordingly.