Govt plans to expand K320m India agreement

THE government is planning to expand an agreement on a promised US$100 million (K321.5 million) from the Exim Bank of India, says a senior government official.
“That was one of the important aspect of the trip and that was to go and speak with the Exim Bank of India,” said Department of National Planning and Monitoring Secretary Hakaua Harry at a briefing on the outcome of a trip to India which was led by Minister Richard Maru.
“Two years ago there was an agreement signed on a line of credit with the Exim Bank for projects in the country and we have not progressed that yet.”
The three projects include the Madang-Baiyer Road, the Kimbe-Hoskins Highway and the Mt Hagen courthouse, she said. “Also based on their requirements and process we have invited them to come to PNG to discuss not only with National Planning but Treasury Finance and other sector agencies as well,” she said.
“The Exim Bank will be here early January for a workshop or meeting with the concerned departments.
“They will also be sending a team to look at the feasibility of the projects. The discussions went fairly well.
“The good thing about this is that we have discussed with them about the potential of expanding to other loan packages that they can be able to give to us.
“They have a very good rate of 1 per cent and below in terms repayment, which is very good for the country as well.”