K500m loan for highways

 THE Government will secure a K500 million concessional loan from the Asian Development Bank to maintain “strategic parts” of the Highlands Highway next year, Prime Minister Peter O’Neill says.

O’Neill told Parliament following the Opposition’s reply to the 2015 National Budget that the Government would target sections of the Highlands Highway, such as Chimbu, Daulo and Kassam, which are prone to landslides and erosion.

The 2015 budget of K16.2 billion and the 2014 Supplementary Budget of K879.3 million were tabled by Treasurer Patrick Pruaitch last Tuesday. 

The funding is in addition to K2.73 billion allocated for infrastructure development in next year’s budget.

O’Neill was responding to Kandep MP and Shadow Treasurer Don Polye who accused the Government of neglecting important economic corridor roads and focusing large development funds on roads in Port Moresby.

“We have not changed. Our priorities remain the same,” O’Neill said.

“We have allocated K2.7 billion to infrastructure.”

O’Neill described the decision as a “deliberate intervention” by the Government to rehabilitate the national highway, which connected Lae and Madang to the seven highlands provinces.

He said the loan would be repaid with a much lower interest over a period of time.

He said the Sepik Highway would be funded by the Japanese Government following a commitment made by its Prime Minister who visited the country in July.

“We appreciate criticisms,” O’Neill said.

“As a government we are not right all the time. 

“We do make mistakes.”