Loans used for roads rehab

 MORE than 40% of road rehabilitation work is funded from loans, according to Works secretary David Wereh.

However, he told the transport and infrastructure meeting of the Consultative Implementations and Monitoring Council in  Port Moresby last Wednesday that this had its problems.

“Due to lack of sufficient appropriation for maintenance, significant lengths of the newly-constructed sections of road undergo significant deterioration, reducing the service life of the pavement,” Wereh said.

“Loan-funded road maintenance projects are tied to key development outcomes.

“This cutback on the design life results in diminishing the benefits and outcomes which the loan financing has been secured for.

“Such a bad management of the loan-funded road rehabilitation projects now is equal to transferring the cost to future generation, knowing well today that they will not enjoy the benefits of the loan.

“Department of Works is now seriously improving the management and design standards of the loan project to improve investment levels that can yield high returns,” Wereh said.