Govt secures Ramu project loan

 JAPAN and Papua New Guinea have signed a loan agreement for the Ramu power transmission system rehabilitation and reinforcement project.

The exchange notes on the project worth K215 million through the overseas development assistance (ODA) loan was signed by the PNG ambassador to Japan Gabriel Dusava and the Japanese ambassador to PNG Hiroharu Iwasaki.

It was witnessed by PNG Prime Minister Peter O’Neill and his Japanese counterpart Shinzo Abe in Japan.

O’Neill acknowledged the significant economic cooperation between PNG and Japan and its contribution to development of key priority sectors in PNG, including education, health, and law and transport infrastructure.

Both leaders also expressed their satisfaction citing as an example of Japan International Cooperation Agency’s (JICA) many areas of cooperative intervention, the recently concluded agreements between the two countries for grant assistance for road improvement and maintenance projects and the media educational equipment project.

In expressing his appreciation for the ODA loan, O’Neill added that PNG recognised JICA’s new role in facilitating all Japanese ODA including concessional loans and assured Abe of his government’s support to work with JICA to develop important national projects.

The ODA loan from JICA is intended to assist the PNG government improve the overall capacity of the current power transmission system.

The concession loan is governed by a loan agreement of which the terms are favourable to both countries. 

The loan disbursement period will be over a period of nine years and extension where necessary by mutual consent at 0.01% annual rate of interest on repayment.

Both prime ministers agreed to continue to sustain this positive momentum at the political level of such arrangement by providing the necessary support and commitment to maximise benefit to both countries.