Loans worries

OVER recent years, the Government of Papua New Guinea has obtained a significant amount of offshore loans to fund major infrastructure projects, especially in Port Moresby.
Using offshore loans to fund major infrastructure developments in PNG can have its down side.
The Government can terribly fail its people if the (loan) monies are not properly and duly spent within the bounds of established financial procurement guidelines and legislations.
To date, the Government has obtained multiple offshore loans from a number of international lenders or financial institutions.
Our country could be in a very awkward situation financially.
Most people in PNG have very rudimentary knowledge as to the extent of our country’s debt situation.
PNG could be callously driven to the verge of a serious debt crisis.
According to an article in The National on Nov 7, a staggering K3 billion Asian Development Bank loan has been secured for a major rehabilitation of the Highlands Highway.
Prior to the actual commencement of the resealing and upgrading work, one must anticipate a number of possible scenarios.
Road construction companies or contractors must prove beyond reasonable doubt that they can deliver the project on schedule.
The quality of the work done on the Highlands Highway must be of a very high standard.
Every good businessman knows that the end justifies the means.
It is also not impossible to anticipate the contrary.
A very haphazard work might be delivered on the Highlands Highway while the Government ultimately passes the debt burden onto its citizens who, despite poor facilities and haphazard road infrastructure, must contend with a huge debt burden in the years beyond Apec.
K3 billion is a staggering amount of money, hence, the Government must deliver tangible projects and quality infrastructures that can be seen, felt and used by the people.
We the taxpayers know that loans, irrespective of the leniency or diplomacy shown by the lender, are meant to be repaid over a period of time.
The people of PNG are certainly going to contend with a huge debt burden in the years to come.

Nilyumbun Gamba Gogl