K1.5 billion for port upgrades

By DANIEL EALEDONA
PAPUA New Guinea has partnered with the Australian government to fund port upgrades with a grant of US$435 million (about K1.5 billion) in the country, the head of a state agency says.
PNG Ports acting chief operations officer, Felix Bauri speaking at the Australia-PNG Business Forum and Trade Expo in Port Moresby yesterday said Lae was one the main access ports in the country, however, PNG’s shipping ports needed to be upgraded to meet export and import needs in the country.
The Australian government reviewed changes for its funding to PNGPCL, which has paved to way for the proposed ports grant been approved.
The blended financial package, is an 80 per cent concessional loan of US$365 million (about K1.29 billion) and a 20 per cent grant of US$70 million (about K247.3 million).
“This funding will be invested in the rehabilitation of a number of ports throughout our network, the upgrades to this facilities are aimed at ensuring safe and secure port facilities that will ensure continued and increased domestic and international trade,” he said.
For strategic port developments, Bauri said the inland port concept was one that they were considering.
“This concept is a strategic opportunity to increase business.”
He made reference on PNG Ports’ urgency to upgrade ports with trade expected to increase with focus on establishing up to six special economic zones (SEZs) by year’s end.
Hebou Construction Limited managing director George Consantinou presented a case study on the Motukea International Terminal Reconstruction project, in Central, highlighting the partnership with PNG Ports as one that had seen the expansion of the international port that now saw increased imports and potential exports for the country.