Govt borrows to develop Kokopo

National, Normal

THE National Government is borrowing money to fund several projects in Kokopo, East New Britain province.
The Government is borrowing locally, from Nasfund, through the issue of treasury bills, under a scheme described as the sovereign community infrastructure treasury bill (SCITB) series.
It is understood a number of Government projects is to be funded under this scheme.
Kokopo will get K125 million to fund its water and road infrastructure projects.
This was announced jointly in a statement by Treasurer Patrick Pruaitch, National Planning Minister Paul Tiensten and Communications Minister Patrick Tammur.
An appointed agent has been instructed by the Treasurer to issue the treasury bills on behalf of the Government.
Mr Pruaitch said this funding met the debt and fiscal strategy of the Government.
The statement did not detail the water and infrastructure projects to be funded in Kokopo.
Joint chief executive officer of Nasfund Rod Mitchell said this investment would deliver a return to members of the fund in two ways.
He said, financially, it would provide a good return to support member retirements and, socially, it would provide good infrastructure for the Kokopo community.
Mr Mitchell described this investment as a low risk, reasonable returns with a PNG focus.
In the statement, the ministers said the scheme was “within the full parameters of the law”  within PNG.
“I am delighted by the work done and the structure of this community treasury bill. It is the first direct infrastructure treasury bill to be issued and fully invested by one institution, Nasfund,” Mr Pruaitch said.
He assured the people of Kokopo that the funding and expenditure would be transparent and the coordinator would release and utilise the funds in accordance with the agreement and terms of the SCITB.