Kapris warns PNG of losing US$95mil loan

PAPUA New Guinea risks losing out on a US$95 million loan from the Exim Bank of China if it breaches an agreement to develop the Pacific marine industrial zone in Madang.
Maprik MP Gabriel Kapris, who was behind the revival of the PMIZ project when he was minister for commerce and industry, said he had travelled to China on behalf of then finance minister Peter O’Neill to sign the loan agreement.
He said the PMIZ was the most important impact project for the Mamose region in the same way the LNG project was to the highlands.
In his series of questions to Commerce and Industry Minister Charles Abel in parliament, Kapris said the minister could have been wrongly advised by his secretary to award a design contract to a South Korean company.
He said under the terms and conditions of the loan agreement, the contract came in a package where a Chinese developer would do the design, supply, construction and commissioning of the project.
“(This) … goes against the loan agreement and China may withdraw the loan and the project will be stalled,” Kapris said.
Abel said it was not an easy task to deal with all stakeholders in the project, including landowners.
He said the consultant from South Korea was engaged by the National Fisheries Authority to do an independent design and assessment of the two wharves to be built at the project site.
“NFA wanted an independent company to do an independent assessment and (it) will be given to the developer, Shenyang of China.”
Abel said the engagement of the South Korean company did not affect the project.